Notice2026-19092
Science and Technology Reinvention Laboratory (STRL) Personnel Demonstration Project (PDP); Defense Health Agency (DHA) Research and Development (R&D) Activity, Fort Detrick, Frederick, Maryland
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 17, 2026
Issuing agencies
Defense Department
Abstract
This serves as notice of the adoption of a STRL PDP plan and additional flexibilities by the DHA R&D, a DoD (referred to herein as "DoW") STRL. The DHA R&D is an STRL composed of medical research organizations that were formerly components of the U.S. Army Medical Research and Development Command (USAMRDC), a successor to the U.S. Army Medical Research and Materiel Command (USAMRMC). The DHA R&D will adopt the PDP plan of the USAMRDC at the Federal Register issue of March 3, 1998, with some modifications. In addition, the DHA R&D proposes to adopt certain personnel flexibilities available to all DoW STRLs.
Full Text
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[Federal Register Volume 91, Number 179 (Thursday, September 17, 2026)]
[Notices]
[Pages 58853-58890]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-19092]
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DEPARTMENT OF DEFENSE
Office of the Secretary
Science and Technology Reinvention Laboratory (STRL) Personnel
Demonstration Project (PDP); Defense Health Agency (DHA) Research and
Development (R&D) Activity, Fort Detrick, Frederick, Maryland
AGENCY: Under Secretary of Defense for Research and Engineering,
Department of Defense (DoD).
[[Page 58854]]
ACTION: Notice of approval of demonstration project final plan.
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SUMMARY: This serves as notice of the adoption of a STRL PDP plan and
additional flexibilities by the DHA R&D, a DoD (referred to herein as
``DoW'') STRL. The DHA R&D is an STRL composed of medical research
organizations that were formerly components of the U.S. Army Medical
Research and Development Command (USAMRDC), a successor to the U.S.
Army Medical Research and Materiel Command (USAMRMC). The DHA R&D will
adopt the PDP plan of the USAMRDC at the Federal Register issue of
March 3, 1998, with some modifications. In addition, the DHA R&D
proposes to adopt certain personnel flexibilities available to all DoW
STRLs.
DATES: This demonstration project may be implemented at the DHA R&D no
earlier than September 17, 2026.
FOR FURTHER INFORMATION CONTACT:
<bullet> DHA R&D: Linda Krout, <a href="/cdn-cgi/l/email-protection#593530373d38773377322b362c2d773a302f19313c38352d3177343035"><span class="__cf_email__" data-cfemail="1f7376717b7e317531746d706a6b317c76695f777a7e736b7731727673">[email protected]</span></a>,
Civilian Personnel Chief, 505 Scott Street, Fort Detrick, Frederick, MD
21702-5000, phone 301-619-7276.
<bullet> Office of the Under Secretary of War for Research and
Engineering: Dr. Richard T. LaVoie, <a href="/cdn-cgi/l/email-protection#9fedf6fcf7feedfbb1ebb1f3fee9f0f6faadb1fcf6e9dff2fef6f3b1f2f6f3"><span class="__cf_email__" data-cfemail="f5879c969d948791db81db9994839a9c90c7db969c83b598949c99db989c99">[email protected]</span></a>,
Deputy Assistant Secretary of War, Science and Technology Foundations,
4800 Mark Center Drive, Suite 17E08, Alexandria, VA 22350-3600, phone
703-545-9457.
SUPPLEMENTARY INFORMATION: Pursuant to section 4121 of Title 10, United
States Code (U.S.C.), the Secretary of Defense is authorized to conduct
PDPs at laboratories designated as DoW STRLs. Through the USW(R&E), the
Secretary exercises the authorities of the Director, Office of
Personnel Management (OPM), under 5 U.S.C. 4703 to conduct PDPs at DoW
laboratories designated as STRLs. The DoW STRLs must have an approved
PDP plan published in a Federal Register Notice (FRN) and fulfill any
collective bargaining obligations before implementing the demonstration
project or adopting the flexibilities available to other DoW STRL
demonstration projects. In implementing this plan, the DHA R&D will
establish internal operating procedures as appropriate.
1. Background
A PDP was implemented at the USAMRMC in accordance with the plan at
63 FR 10440 (March 3, 1998). In 2019, the USAMRMC was redesignated as
the USAMRDC and the PDP notice at 63 FR 10440 was updated through a
minor modification on August 30, 2019, to reflect this change. On May
5, 2024, following the transfer of USAMRDC components to the DHA R&D,
the Deputy Assistant Secretary of War for Science and Technology
Foundations designated the DHA R&D as a DoW STRL. The DHA R&D has
implemented the USAMRDC PDP authorities for the DHA R&D components that
were formerly subordinate components of the USAMRDC. This notice
implements the PDP for all DHA R&D components by adopting the USAMRDC
PDP plan and includes updates, modifications, and adoptions of other
flexibilities available to all DoW STRLs.
The purpose of the demonstration project is to demonstrate that the
effectiveness of DoW organizations can be enhanced by allowing greater
managerial control over personnel functions and, at the same time,
expand the opportunities available to employees through a more
responsive and flexible personnel system.
2. Summary of Comments
There were 17 comments received from commenters regarding the DHA
PDP, 89 FR 89621, dated November 13, 2024. The following is a summary
of comments received and a response to each.
Comment: For the Supervisory Bonus (SB), must they have completed a
supervisory probationary period to be eligible? Can a supervisor get a
SB, pro-rated, other than the beginning of the appraisal period to be
used as a recruitment incentive?
Response: No changes to the notice were made based on this
question. Eligibility for the SB will be described in the internal
operating procedure. An employee may receive a pro-rated SB as a
recruitment incentive for filling a supervisory position. To maintain
the SB upon initial receipt, and thereafter, an employee must
successfully complete the one-year probationary period and required
supervisory training.
Comment: There are Special Salary Rates (SSR) that far exceed the
with locality amount for certain geographic locations/Occupational
Classification Code series. How will this apply to converting into demo
if the SSR is higher than the top of the band?
Response: No changes to the notice were made based on this
question. The R&D demonstration project does not recognize SSR.
However, supplemental pay may be granted to address the difference in
salary between the demonstration project salary and the SSR.
Comment: For contingent employees appointment Authority, is it
still relevant to get commander approval for the 6th year when a 10-
year term authority is available?
Response: No changes to the notice were made based on this
question. This will be addressed in the internal operating procedure
and includes implementing instructions for the Flexible Length and
Renewable Term Technical Appointments.
Comment: Reduction in Force (RIF) rules in Federal Register Volume
63, No. 41, dated March 3, 1998, are superseded by 87 FR 58334, dated
September 26, 2022.
Response: No changes to the notice were made based on this
question. The RIF rules in 63 FR 10440, dated March 3, 1998, were
superseded by those published in 87 FR 58334 dated Sept 26, 2022. The
RIF rules as they apply to the DHA R&D demonstration project will be
addressed in the internal operating procedure.
Comment: Is DoD still limited to 40 pay band V positions?
Response: No changes to the notice were made based on this
question. The original limit of 40 pay band V positions was set by the
OPM. Title 10 U.S.C. 4091 and 79 FR 43724, dated July 28, 2014,
authorized the establishment of a new category of positions entitled
Senior Scientific Technical Managers (SSTM). For the DHA R&D, this
category is identified as the DB-05 pay band. The total number of
authorized DB-05 positions cannot exceed two percent of the number of
scientists and engineers employed at such laboratory as of the close of
the last fiscal year before the fiscal year in which any appointments
subject to that numerical limitation are made. If the two percent does
not equate to a whole number, the R&D will round down to the next lower
number.
Comment: Under the performance section, does the employee still
receive retention years of credit for RIF?
Response: No changes to the notice were made based on this
question. The rules for RIF will be outlined in the Internal Operating
Procedures, which will mirror the MRDC RIF IOP #7 and allow the
provision of RIF as described in 87 FR 58334.
Comment: For Expanded Development Opportunity, based on new RIF
rules, retention years credit for RIF no longer applies, is this
correct?
Response: No changes to the notice were made based on this
question. Yes, this is correct.
Comment: Given the age of the MRDC FRN, is the Fair Labor Standards
Act (FLSA) designations still accurate as identified on Figure 1-
Occupational Families and Pay Bands?
[[Page 58855]]
Response: No changes to the notice were made based on this
question. The FLSA designations listed in the FRN are a guide and
should not be used as the official designation. The duties of each
position description are reviewed to make the final FLSA determination.
Comment: Will the DB05 authority still be exercised at the DA
level? Are high grade controls still in place
Response: No changes to the notice were made based on this
question. The SSTM, DB-05, authority are authorized in 10 U.S.C. 4091
and 79 FR 43722. The number of DB-05 positions authorized is based on
two percent of the number of scientists and engineers employed at the
laboratory at the close of the last fiscal year.
Comment: Voluntary Separation Incentive Payment (VSIP)--authority
has not been delegated to sub activity Commanders/Directors; can it be?
Response: No changes to the notice were made based on this
question. The VSIP authority will be delegated accordingly by the
agency. No changes to the Notice were made based on this question.
Comment: What does first line management mean? Does it mean the
first line supervisor?
Response: No changes to the notice were made based on this
question. Yes, first line management means the first line supervisor.
Comment: Recommend rewriting Supervisory Probation period because
as written it's confusing on how long the probationary period are.
Response: The supervisory probationary period has been re-written
to clarify the one-year requirement for a supervisory probationary
period.
Comment: A score range of 85 to 100 or an ``A'' rating is quite
broad when considering academic-type rating. Can the cumulative scores
for each rating be adjusted and the Alpha character changed to a
numerical level? Example: Instead of A superior = 85-100, make it a
level 5 outstanding = 90-100?
Response: No changes to the notice were made based on this
question. After the implementation of the DHA R&D STRL, the
recommendation to adjust the rating scores will be further explored and
if necessary, a minor modification to this FRN will be accomplished.
Comment: What is DA Form 374? Is it still applicable under DHA?
Does Army still use it?
Response: No changes to the notice were made based on this
question. This form is obsolete and no longer used.
Comment: Recommend references to the Civilian Personnel Advisory
Center (CPAC)/Civilian Personnel Operations Center (CPOC) be updated to
reflect Civilian Human Resources Service Center (CHRSC) now that the
titling has changed.
Response: References to CPAC/CPOC were updated to the new name of
CHRSC, Civilian Human Resources Service Center.
Table of Contents
I. Executive Summary
II. Introduction
A. Purpose
B. Participating Organization
C. Participating Employees
D. Labor Participation
E. Project Design
F. Personnel Management Board
III. Personnel System Changes
A. Broad Banding
B. Classification
C. Pay-for-Performance Management System
D. Hiring and Appointment Authorities
E. Expanded Developmental Opportunities Program
F. Revised Reduction-In-Force (RIF) Procedures
IV. Training
V. Conversion
VI. Project Administration
VII. Project Evaluation
VIII. Required Waivers to Law and Regulation
Appendix A: Occupational Series by Occupational Family
Appendix B: Project Evaluation and Oversight
Appendix C: Performance Elements
Appendix D: Benchmark Performance Standards
I. Executive Summary
This serves as adoption of the USAMRDC STRL PDP plan, including the
following modifications approved pursuant to DoD Instruction 3201.05:
minor modification to administrative occupational family, DJ-03 and DJ-
04 band structure of occupational series 1102 only (February 3, 2011);
minor modification to pay for performance payment timeframe (January 5,
2018); minor modification to participating occupational series
(November 28, 2022). Upon implementation, the DHA R&D will also utilize
the flexibilities published in the following FRNs and any future
omnibus flexibilities that are available to all DoW STRLs:
<bullet> 89 FR 44648 (May 21, 2024)
<bullet> 88 FR 10874 (February 22, 2023)
<bullet> 87 FR 72462 (November 25, 2022)
<bullet> 87 FR 58334 (September 26, 2022)
<bullet> 87 FR 40200 (July 6, 2022)
<bullet> 85 FR 78829 (December 7, 2020)
<bullet> 85 FR 5639 (January 31, 2020)
<bullet> 82 FR 43339 (September 15, 2017)
<bullet> 82 FR 29280 (June 28, 2017)
<bullet> 79 FR 43722 (July 28, 2014)
<bullet> 78 FR 29335 (May 20, 2013)
II. Introduction
A. Purpose
The purpose of the project is to demonstrate that the effectiveness
of DoW laboratories can be enhanced by allowing greater managerial
control over personnel functions and, at the same time, expanding the
opportunities available to employees through a more responsive and
flexible personnel system.
B. Participating Organization
This demonstration project will cover approximately 1,224 DHA R&D
positions. Approximately 59 percent of covered positions are at the
following DHA R&D organizations located at Fort Detrick, Maryland: DHA
R&D, Telemedicine and Advanced Technology Research and Medical Research
Institute of Infectious Disease. The remaining positions are at the
following sites: Medical Research Institute of Chemical Defense,
Aberdeen Proving Ground, Maryland; Walter Reed Institute of Army
Research, Forest Glen Annex, Silver Spring, Maryland; Institute of
Surgical Research and the Burn Center Directorate, Joint Base San
Antonio, Texas. These positions transferred to the DHA R&D from the
U.S. Army Medical Research and USAMRDC. The DHA R&D has successfully
implemented the USAMRDC PDP authorities for the DHA R&D components that
were formerly subordinate organizations of USAMRDC. Based on experience
gained and following careful consideration, the DHA R&D has determined
to conduct a PDP for all DHA R&D components by adopting the USAMRDC PDP
plan and other flexibilities available to all DoW STRLs.
C. Participating Employees
The demonstration project includes appropriated funded civilian
employees in the competitive and excepted service (to include non-
citizens hired in the absence of qualified citizens) paid under the
General Schedule (GS) pay system and Interns assigned to the STRL. The
project plan does not cover Senior Executive Service employees,
Scientific and Professional employees, and Federal Wage System
employees Personnel added to the DHA R&D in like positions, either
through appointment, promotion, reassignment, change to lower grade or
where their functions and positions have been transferred into the DHA
R&D, will be converted to the demonstration project.
[[Page 58856]]
D. Labor Participation
The DHA R&D will fulfill its obligations to consult and/or
negotiate with the designated union as appropriate and applicable in
accordance with 5 U.S.C. 4703(f) and 7117.
E. Project Design
In October 1994, the USAMRMC began development of the specifics of
this personnel demonstration proposal. A PDP Office was established,
and administrative support added in April 1995. Briefings of the
proposal were initially conducted for the workforce at every
participating subordinate activity with subsequent briefings provided
upon request by Commanders/Directors.
Status of the project was provided to subordinate activity
Commanders/Directors for dissemination to all employees. An electronic
mail address was established in the Fall of 1994 and made available to
all employees and managers for the purpose of expressing opinions and/
or obtaining specific information about the project. Review of the
proposal and input by the U.S. Army Medical Command (MEDCOM), USAMRMC
workforce, as well as critical and extensive reviews by Headquarters
Department of the Army, the Office of the Secretary of War, and OPM
since April 1995, led to the publication of the proposal in the March
12, 1997, Federal Register. Subsequently, Public Hearings were held,
and comments from interested parties and the workforce were reviewed
and considered, culminating in the publication of the final USAMRMC
demonstration project plan.
In October 2018, USAMRMC was realigned from MEDCOM to the U.S. Army
Materiel Command. On June 12, 2019, the USAMRMC was renamed to the
USAMRDC. During the summer of 2019, USAMRDC began reporting to the Army
Futures Command (AFC). On December 22, 2019, USAMRDC personnel were
realigned to the AFC. On May 5, 2024, USAMRDC personnel were
transferred from AFC to the DHA R&D with the exception of three
subordinate activities, U.S. Army Research Institute of Environmental
Medicine and U.S. Army Aeromedical Research Laboratory, and U.S. Army
Medical Materiel Development Activity Program Manager Soldier Medical
Devices, which remained with AFC.
F. Personnel Management Board
The DHA R&D intends to establish an appropriate balance between the
personnel management authority/accountability delegated to subordinate
activity Commanders/Directors and R&D management/oversight
responsibilities by establishing a Personnel Management Board (PMB).
The Chairperson and members will be appointed by the Director R&D. The
PMB will serve to provide oversight, policy, guidelines, corrective
action, and evaluation as subordinate activity Commanders/Directors
execute the following:
1. Formulate and execute the civilian pay budget;
2. Determine the composition of the pay-for-performance pay pools
in accordance with the guidelines of this proposal and internal
procedures;
3. Administer funds allocation to pay pool managers;
4. Determine hiring and promotion salaries as well as exceptions to
pay-for- performance salary increases;
5. Provide guidance to pay pool managers;
6. Manage the awards pools;
7. Select participants for the Expanded Developmental Opportunities
Program, long term training, and any special developmental assignments;
8. Adhere to guidelines concerning the promotion of employees into
salary ranges designated ``high grades'';
9. Ensure in-house budget neutrality to include tracking of average
salaries, FTEs, etc.;
10. Contact the PMB designee for problem resolution, recommending
changes in policy/procedure, etc.; and
11. Ensure that all employees are treated in a fair and equitable
manner in accordance with all policies, regulations, and guidelines
covering this demonstration project.
III. Personnel System Changes
A. Broadbanding
Occupational Families
Occupations at the DHA R&D will be grouped into occupational
families. Occupations will be grouped according to similarities in type
of work and customary requirements for formal training or credentials.
The common patterns of advancement within the occupations as practiced
at DoW Laboratories and in the private sector will also be considered.
The current occupations and grades have been examined, and their
characteristics and distribution have served as guidelines in the
development of the four occupational families described below.
Positions included in each occupational family are listed in Appendix
A.
1. Engineers and Scientists (E&S). This occupational family
includes all technical professional positions, such as positions in the
biological, physical and social sciences, medical, veterinary,
mathematical, and engineering fields. Ordinarily, specific course work
or educational degrees are required for these occupations.
2. E&S Technicians. This occupational family contains specialized
functions in fields that provide direct technical support to the
scientific/engineering effort. Positions in these occupations may or
may not require completion of formal college course work. However,
training and skills in the various specialties are generally required.
3. Administrative. This occupational family contains specialized
functions in such fields as management analysis, accounting, budgeting,
contracting, purchasing, legal, business and industry, library, quality
assurance, and supply. Special skills in administrative fields or
special degrees are required.
4. General Support. This occupational family is composed of
positions requiring special skills and knowledge, such as typing,
shorthand, or office automation skills, and job-related experience.
Clerical work usually involves the processing and maintenance of
records. Assistant work requires knowledge of methods and procedures
within a specific administrative area. Support functions include
positions such as secretary, mail clerk, medical clerk, accounting
technician and supply technician.
Pay Bands
Each occupational family will be composed of discrete pay bands
(levels) corresponding to recognized advancement within the
occupations. These pay bands will replace grades. They will not be the
same for all occupational families. Each occupational family will be
divided into three to five pay bands, each pay band covering the same
pay range now covered by one or more grades. A salary overlap, like the
current overlap between GS grades, will be maintained.
Ordinarily, an individual will be hired at the lowest salary in a
pay band. Exceptional qualifications, specific organizational
requirements, or other compelling reasons may lead to a higher entrance
level within a band. The DHA R&D broadbanding plan is expanded to
create a Pay Band V of the Engineers and Scientists Occupational
Family. This pay band is designed for Senior Scientific Technical
Managers (79 FR 43722). Current OPM guidelines of Senior Executive
Service (SES) and Scientific and Professional (ST) positions do not
fully meet the needs of DHA R&D. The SES designation is appropriate for
executive level managerial positions whose
[[Page 58857]]
classification exceeds the GS-15 grade level. The primary knowledge and
abilities of SES positions relate to supervisory and managerial
responsibilities. Positions classified as ST are reserved for bench
research scientists and engineers; these positions require a very high
level of technical expertise, and they have little or no supervisory
responsibility.
The DHA R&D currently has many positions, typically division/
directorate chiefs, which have characteristics of both SES and ST
classifications. Most division/directorate chiefs in DHA R&D are
responsible for supervising other GS-15 positions, including branch
chiefs, non- supervisory researcher scientists and engineers, and
possibly ST positions. Most division/directorate chief positions are
classified at the GS-15 level, although their technical expertise
warrants classification beyond GS-15. Because of their management
responsibilities, these individuals are excluded from the ST system.
Because of management considerations, they cannot be placed in the SES.
Management considers the primary requirement for division/directorate
chiefs to be knowledge of, and expertise in, the specific scientific
and technology areas related to the mission of their divisions/
directorates. Historically, incumbents of these positions have been
recognized within the community as scientific and engineering leaders,
who possess primarily scientific/engineering credentials and are
considered experts in their field. However, they must also possess
strong managerial and supervisory abilities. Therefore, although some
of these employees have scientific credentials that might compare
favorably with ST criteria, classification of these positions as STs is
not an option, because the managerial and supervisory responsibilities
inherent in the positions cannot be ignored.
The purpose of Pay Band V (which will reinforce the equal pay for
equal work principle) is to solve a critical classification problem. It
will also contribute to an SES ``corporate culture'' by excluding from
the SES positions for which technical expertise is paramount. Pay Band
V proposes to overcome the difficulties identified above by creating a
new category of positions, the Senior Scientific Technical Manager,
which has both scientific/technical expertise and full managerial and
supervisory authority. Current GS-15 division/directorate chiefs will
convert into the demonstration project at Pay Band IV. After
conversion, they will be reviewed against established criteria to
determine if they should be reclassified to Pay Band V. Other positions
possibly meeting criteria for classification to Pay Band V will be
reviewed on a case-by-case basis. The salary range is a minimum of 115
percent of the minimum rate of basic pay for GS-15 with a maximum rate
of basic pay established at the rate of basic pay (excluding locality
pay) for SES level 4 (EX-4). Vacant positions in Pay Band V will be
competitively filled to ensure that selectees are preeminent
researchers and technical leaders in the specialty fields who also
possess substantial managerial and supervisory abilities. Panels will
be created to assist in filling Pay Band V positions. Panel members
will be selected from a pool of current DHA R&D senior military and SES
members, ST employees, and later those in Pay Band V, and the unit
Commander to ensure impartiality, breadth of technical expertise, and a
rigorous and demanding review. The panel will apply criteria developed
largely from the current OPM Research Grade Evaluation Guide for
positions exceeding the GS-15 level.
The pay bands for the occupational families and how they relate to
the current GS grades are shown in Figure 1. Application of the FLSA
within each pay band is also shown in Figure 1. It should be noted that
for recruitment and retention reasons for the occupational series 1102
and 1105, the DJ-03 pay band range will be GS-11 through GS-13, and DJ-
04 is GS-14. This pay-band concept has the following advantages:
1. It reduces the number of classification decisions required
during an employee's career.
2. It simplifies the classification decision-making process and
paperwork. A pay band covers a larger scope of work than a grade and
thus will be defined in shorter and simpler language.
3. It supports delegation of classification authority to line
managers.
4. It provides a broader range of performance-related pay for each
level. In many cases, employees whose pay would have been frozen at the
top step of a grade will now have more potential for upward movement in
the broader pay band.
5. It prevents the progression of low performers through a pay band
by mere longevity, since job performance serves as the basis for
determining pay.
BILLING CODE6001-FR-P
[[Page 58858]]
[GRAPHIC] [TIFF OMITTED] TN17SE26.014
BILLING CODE6001-FR-C
FLSA
The FLSA exemption and non-exemption determinations will be made
consistent with criteria found in 5 CFR part 551. Supervisors with
classification authority will make the determinations on a case-by-case
basis with reference to documentation in the operating procedures
manual and the advice and assistance of the CHRSC. The generic position
description benchmark will not be the sole basis for the determination.
The basis for exemption/non-exemption will be documented and annotated
on each description. Exemption criteria will be narrowly construed and
applied only to those employees who clearly meet the spirit of the
exemption. The basis for determinations will be reviewed as a part of
the performance review process and when salary adjustments are
warranted. Changes will be documented and provided to the CHRSC, as
appropriate.
Simplified Assignment Process
Today's environment of rightsizing and workforce transition
mandates that the DHA R&D have maximum flexibility to assign duties and
responsibilities to individuals. Broad banding can be used to address
this need. As a result of the assignment to a particular level
descriptor, the organization will have maximum flexibility to assign an
employee with no change in basic pay, within broad descriptions
consistent with the needs of the organization, and the individual's
qualifications and rank or level. Subsequent assignments to projects,
tasks, or functions anywhere within the organization requiring the same
level and area of expertise, and qualifications would not constitute an
assignment outside the scope or
[[Page 58859]]
coverage of the current level descriptor, or benchmark position
description.
Such assignments within the coverage of the generic descriptors are
accomplished without the need to process a personnel action. For
instance, a technical expert can be assigned to any project, task, or
function requiring similar technical expertise. Likewise, a manager
could be assigned to manage any similar function or organization
consistent with that individual's qualifications. This flexibility
allows a broader latitude in assignments and further streamlines the
administrative process and system.
Promotions
A promotion is the movement of an employee to a higher pay band
within the same occupational family, or to a pay band in a different
occupational family, which results in an increase in the employee's
salary. Progression within a pay band is based upon performance pay
increases; as such, these actions are not considered promotions and are
not subject to the provisions of this section.
Promotions will be processed under competitive procedures in accordance
with merit principles and requirements. The following actions are
excepted from competitive procedures:
(a) Re-promotion to a position which is in the same pay band and
occupational family as the employee previously held on a permanent
basis within the competitive service.
(b) Promotion, reassignment, demotion, transfer, or reinstatement
to a position having promotion potential no greater than the potential
of a position an employee currently holds or previously held on a
permanent basis in the competitive service.
(c) A position change permitted by reduction-in-force procedures.
(d) Promotion without current competition when the employee was
appointed through competitive procedures to a position with a
documented career ladder.
(e) A temporary promotion, or detail to a position in a higher pay
band, of 180 days or less.
(f) Impact of person on the job, accretion of duties, or Factor IV
process (application of the Research Grade Evaluation Guide, Equipment
Development Grade Evaluation Guide or similar guides) promotions.
(g) A promotion resulting from the correction of an initial
classification error or the issuance of a new classification standard.
Link Between Promotion and Performance
To be promoted competitively or noncompetitively from one band to
the next, an employee must meet the minimum qualifications for the job
and have a current performance rating of ``B'' or better (see
Performance Evaluation) or equivalent under a different performance
management system.
B. Classification
Introduction
The objectives of the classification system are to simplify the
classification process, make the process more serviceable and
understandable, and place more decision-making authority and
accountability with line managers. All positions listed in Appendix A
will be in the classification structure. Provisions will be made for
including other occupations as employment requirements change in
response to changing missions and technical programs.
Occupational Series
The present GS classification system has over 400 occupations (also
called series), which are divided into 22 groups. The occupational
series will be maintained. New series, established by OPM, may be added
as needed to reflect new occupations in the workforce. Appendix A lists
the occupational series currently represented at the DHA R&D by
occupational family.
Classification Standards
The DHA R&D will use a classification system that is used by the
USAMRDC STRL personnel demonstration project. The present
classification standards will be used to create local benchmark
position descriptions for each pay band, reflecting duties and
responsibilities comparable to those described in present
classification standards for the span of grades represented by each pay
band. There will be at least one benchmark position description for
each pay band. A supervisory benchmark position description will be
added to those pay bands that include supervisory employees. Present
titles and series will continue to be used to recognize the types of
work being performed and educational backgrounds and requirements of
incumbents. Locally developed specialty codes and OPM functional codes
will be used to facilitate titling, making qualification
determinations, and assigning competitive levels to determine retention
status.
Position Descriptions and Classification Process
The R&D Director will have delegated classification authority and
will redelegate this authority to subordinate activity Commanders/
Directors for redelegation to activity managers as appropriate. New
position descriptions will be developed to assist managers in
exercising delegated position classification authority. Managers will
identify the occupational family, job series, the functional code, the
specialty code, pay band level, and the appropriate acquisition codes.
Specialty codes will be developed by Subject Matter Experts to identify
the special nature of work performed. Functional codes are those
currently found in the OPM Introduction to the Classification Standards
which defines certain kinds of activities, e.g., Research, Development,
Test and Evaluation, etc., and covers E&S.
Classification Appeals
An employee may appeal the occupational series or pay band level of
his or her position at any time. An employee must formally raise the
areas of concern to supervisors in the immediate chain of command,
either verbally or in writing. If an employee is not satisfied with the
supervisory response, he or she may then appeal to the DoW appellate
level. If an employee is not satisfied with the DoW response, he or she
may then appeal to the OPM, only after DoW has rendered a decision
under the provisions of this demonstration project. Appellate decisions
from OPM are final and binding on all administrative, certifying,
payroll, disbursing, and accounting officials of the Government. Time
periods for case processing under Title 5 apply. An employee requesting
a classification decision that would exceed the equivalent of a GS-15
level may not submit the appeal to OPM.
An employee may not appeal the assignment of the occupational
series to an occupational family; the accuracy of the occupational
family; the title of a position; the accuracy of the position
description; the demonstration project classification criteria, or the
pay-setting criteria; the propriety of a salary schedule; or matters
grievable under an administrative or negotiated grievance procedure or
an alternative dispute resolution procedure. The evaluation of
classification appeals under this demonstration project are based upon
the demonstration project classification criteria. Case files will be
forwarded for adjudication through the CHRSC providing personnel
services and will
[[Page 58860]]
include copies of appropriate demonstration project criteria.
C. Pay-for-Performance Management System
Performance Evaluation
Introduction
The performance appraisal system will link compensation to
performance through annual performance evaluations and performance
ratings. The performance appraisal system will allow optional use of
peer evaluation input and/or input from subordinates whenever
appropriate. The system will have the flexibility to be modified, if
necessary, as more experience is gained under the project. Details of
the system may be found in the implementation instructions.
Performance Objectives
Performance objectives are statements of job responsibilities based
on the work unit's mission, goals, and supplemental benchmark position
descriptions. Employees and supervisors will jointly develop
performance objectives which will reflect the types of duties and
responsibilities expected at the respective pay level. Absent agreement
between employees and supervisors, final authority to establish
performance objectives and element weights rests with management. The
performance objectives, representing joint efforts of employees and
their rating chains, should be in place within 30 days from the
beginning of each rating period.
Performance Elements
Performance elements and rating forms have been designed to
implement a scoring and rating system. The performance evaluation
system will be based on critical performance elements defined in
Appendix C. All elements in the performance evaluation system are
critical. Non-critical elements will not be used. Each performance
element is assigned a weight between a specified range. The total
weight of all elements in a performance plan is 100 points. The
supervisor assigns each element some portion of the 100 points in
accordance with its importance for mission attainment. These weights
will be developed along with employee performance objectives.
Mid-Year Review
A mid-year review between a supervisor and employee will be held to
determine whether objectives are being met and whether performance
objectives should be modified to reflect changes in planning, workload,
and resource allocation. Additional reviews may be held throughout the
rating cycle; to include possible changes in assigned weights, if
necessary.
Performance Appraisal
A performance appraisal is scheduled for the final weeks of the
annual performance cycle. A special performance appraisal may be
conducted at any time prior to the final weeks of the performance cycle
if the employee has been on approved standards for a minimum of 60
days. Other instances that would warrant a special performance
appraisal will be identified in the Internal Operating Procedures. The
performance appraisal process brings supervisors and employees together
for formal discussions on performance and results in (1) written
appraisals, (2) performance ratings, (3) performance pay increases and/
or bonuses, (4) cash awards, and (5) other individual performance-
related actions, as appropriate. A performance appraisal will consist
of two meetings held between employee and supervisor: the performance
review meeting and the evaluation feedback meeting.
Performance Review Meeting Between Employee and Supervisor
The review meeting is to discuss job performance and
accomplishments. Supervisors do not assign scores, ratings, pay
increases, or awards at this meeting. The supervisor notifies the
employee of the review meeting in time to allow the employee to prepare
a list of accomplishments. Employees will be given an opportunity at
the meeting to give a personal performance assessment and describe
accomplishments. The supervisor and employee discuss job performance
and accomplishments in relation to the performance elements,
objectives, and planned activities established in the performance plan.
Evaluation Feedback Meeting Between Employee and Supervisor
In this second meeting between employee and supervisor, the
supervisor informs the employee of management's appraisal of the
employee's performance, the employee's performance score and rating,
and any recommended related pay increase, bonus, award, or other
personnel action. During this second meeting, the supervisor and
employee will discuss and document performance objectives for the next
rating period.
Performance Scores
Selection of the weighted points to assign to an employee's
performance is assisted by use of benchmark performance standards
(Appendix D). Each benchmark performance standard describes the level
of performance associated with a particular point on a rating scale.
Supervisors may add supplemental standards to the performance plans of
the employees they supervise to further elaborate the benchmark
performance standards. The overall score is the sum of the individual
element scores. Employees will receive an academic-type rating of
``A,'' ``B,'' ``C,'' or ``F'' depending upon the percentage of goal
attainment and overall cumulative score. The academic-type ratings will
be used to determine pay or bonus values. These summary ratings are
representative of Pattern E in Summary Level Chart in 5 CFR
430.208(d)(1). This rating will become the rating of record, and
(1) Employees rated ``B'' or higher will be eligible to receive
performance-based pay increases and/or bonuses; and
(2) Employees rated ``F'' will not receive the general increase or
be eligible to receive performance-based pay increases and/or bonuses.
A rating of ``A'' will be assigned for cumulative scores of 85 to 100
points, ``B'' for cumulative scores of 70 through 84, and ``C'' for
cumulative scores of 50 through 69. An overall rating of ``F''
indicates failure to perform at the 50 percent level for any one of the
assigned weighted elements. (In such a case, even though the cumulative
score may exceed 49, the employee will nonetheless receive an overall
rating of ``F.'' NOTE: An ``F'' constitutes an unacceptable rating).
[[Page 58861]]
[GRAPHIC] [TIFF OMITTED] TN17SE26.015
Performance Based Actions
The DHA R&D will implement a two-step process to deal with poor
performers. This process may lead to involuntary separation if the
employee receives a score of less than 50 percent of the points for any
weighted element. The process will begin with the acknowledgement that
an employee's performance is unacceptable (any element that would be
rated at less than the 50 percent level of its assigned benchmark
rate). The two steps are as follows: (1) Performance Improvement Plan
(PIP), and (2) either change in assignment (optional), reduction in pay
or grade (optional) or separation. When the employee is determined to
be performing below the 50 percent level for any element, the
supervisor and the employee will develop a structured PIP that will be
monitored for a reasonable period of time. If the employee fails to
improve during the PIP, the employee will be given notice of proposed
appropriate action. The activity may consider a change in assignment or
reduction in pay or grade as opposed to removal if the mission,
organizational structure and available resources warrant such action.
Separated employees have due process recourse.
Note: Performance based adverse actions may be taken under 5
U.S.C. chapter 43 (Performance Appraisal) or chapter 75 (Adverse
Actions).
If a PIP ends prior to the end of the annual performance cycle and
the employee's performance improves to the 50 percent or above level in
all assigned elements, the employee is appraised again at the end of
the annual performance cycle.
If, in conjunction with the completion of the PIP, the employee
attains an annual rating of ``C'' or higher, they will receive the
annual general increase. In addition, employees attaining an annual
rating of ``B'' or higher will be eligible for an increase to base-pay
and/or bonus.
If a PIP ends after the end of the annual performance cycle and the
employee's performance has improved to the 50 percent or above level in
all assigned elements, employment continues, but no retroactive annual
general increase, performance base pay increase or performance bonus is
granted for that performance cycle. No new appraisal will be created to
replace the failing rating, and the Defense Civilian Personnel Data
System (DCPDS) will not be updated to change the rating from ``F'' to
``C'' or higher. Upon improvement, the employee will be placed on a
performance plan for the next rating cycle, which will begin on July 1
through the end of the rating cycle (June 30).
Employee Relations
Employees covered by the project will be evaluated under a
performance evaluation system that affords administrative grievance
rights. The DHA R&D will maintain the substantive and procedural appeal
rights currently afforded when taking action for misconduct and poor
performance.
Awards
The DHA R&D currently has an extensive awards program consisting of
both internal and external awards. While not linked to the pay-for-
performance system, awards will continue to be given for special acts
and other categories as they occur. Awards may include, but are not
limited to, special acts, patents, suggestions, on-the-spot, and time-
off, and may be modified or expanded as appropriate. Major Command and
DoW awards and other honorary noncash awards will be retained. In an
effort to foster and encourage teamwork among its employees, a
Commander/Director may allocate a sum of money to a team for
outstanding completion of a special task or significant achievement,
and the team may decide the individual distribution of the total
dollars among themselves.
Pay Administration Introduction
The objective is to establish a pay system that will improve the
ability of the DHA R&D to attract and retain quality employees. The
system will be a pay-for-performance system and, will result in a
distribution of performance pay resources based upon individual
performance.
[[Page 58862]]
Pay-for-Performance
The DHA R&D will use a simplified performance appraisal system that
will permit both the supervisor and the employee to focus on quality of
the work. This system will permit the manager/supervisor to base
compensation on performance or value added to the goal of the
organization rather than on longevity and risk aversion. This system
will also allow managers to withhold pay increases from nonperformers,
thereby giving the nonperformers the incentive to improve performance
or leave government service. Pay-for-performance has two components:
Performance pay increases (i.e. base pay increases) and/or bonuses. All
covered employees will be given the full amount of locality pay
adjustments (as applicable) when they occur, regardless of performance.
The funding for performance pay increases and/or bonuses is composed of
money previously available for within-grade increases, quality step
increases, and promotions from one grade to another when the grades are
now in the same pay band.
Performance Pay Pool
The funding in the performance pay pool will be used for base pay
increases and/or performance bonus pay. The payouts made to employees
from the performance pay pool may be a mix of base pay increases,
subject to the pay ceiling in the pay bands, and bonus payments. The
Headquarters (HQ), DHA R&D Comptroller, in conjunction with each
subordinate activity Commander/Director, will calculate the total
performance pay pool and allocate pay pools to subordinate activities.
Each subordinate activity Commander/Director will allocate pay pools to
organizational units or teams as appropriate.
Performance Pay Increases and/or Performance Bonuses
A pay pool manager is accountable for staying within pay pool
limits. The pay pool manager assigns pay increases and/or bonuses to
individuals on the basis of an academic-type rating, the value of the
performance pay pool resources available, and the individual's current
basic rate of pay within a given pay band. A pay pool manager may
request approval from the Commander/Director or his/her designee to
grant a higher performance pay increase/performance bonus than is
generated by the compensation formula to recognize an employee's
extraordinary achievement (also known as payout above) or to provide
accelerated compensation for local interns.
A performance payout will be initially calculated for each
individual based upon a pay pool assignment that will be composed of
monies outlined previously. For illustration purposes, approximately
2.4 percent of the value of the combined basic rates of pay of the
assigned employees will be used. A share will be calculated so that a
pay pool manager will not exceed the resources that are available in
the pay pool. The performance payout for an individual will be
determined as follows:
------------------------------------------------------------------------
------------------------------------------------------------------------
Pool Value * SALi * Ni
Individual Performance Payout =........... SUM (SALj * Nj);
j=1 to n
------------------------------------------------------------------------
Where:
Pool Value = 0.024 * SUM (SAL<INF>k</INF>); K = 1 to n
n = number of employees in pay pool
N = Number of Shares (0-2) earned by an employee based on their
performance rating
SAL = An individual's basic rate of pay
SUM = The summation of the entities in parenthesis over the range
indicated
i = individual
To illustrate the formula, the basic rates of pay of the 10
employees in a pay pool, who each earn $50,000 per year, total to
$500,000. The employees earned a total of 15 shares based on their
ratings (5 individuals earned an ``A'' rating, and 5 individuals earned
a ``B'' rating). The pay pool value is then 2.4 percent of the sum of
$500,000, or $12,000. The individual performance payout being
determined is for an individual who earns $50,000 per year and receives
an ``A'' on the appraisal, thus earning 2 shares. Using the formula,
the individual performance payout is calculated by multiplying the pay
pool value, $12,000, by the individual basic rate of pay, $50,000, by
the number of shares earned, 2. This product is divided by the sum of
the products of the individual basic rates of pay times the number of
shares earned, or 750,000. The resulting individual performance payout
is $1,600 for the year.
An annual performance base pay increase could be all, none, or part
of the compensation formula depending on the current basic rate of pay
of the employee. Annual performance base pay increases will be limited
to the difference between the particular band pay cap and the
employee's current basic rate of pay, or total dollar value of shares,
whichever is less, with the balance converted to a performance bonus.
This means that employees whose basic rates of pay have reached the
upper limits of a particular pay band will receive most performance
compensation as a performance bonus. Cash bonuses will not become a
part of the employee's basic rate of pay. Employees receiving retained
rates are subject to special rules governing basic pay adjustments. An
employee receiving a retained rate whose performance rating is ``F'' at
the time of a general pay increase will receive no increase in the
retained rate. All other employees receiving a retained rate will
receive a general pay increase equal to 50 percent of the amount of the
increase in the maximum rate of basic pay payable for the pay band of
the employee's position.
Payout Above
A pay pool manager may request approval from the Commander/Director
or his/her designee to grant a higher performance pay increase/
performance bonus than is generated by the compensation formula to
recognize an employee's extraordinary achievement (also known as payout
above) or to provide accelerated compensation for local interns. The
payout above will be calculated outside the mass pay process. If a
payout above is awarded the payout may be paid as a base pay increase,
subject to the pay ceiling in the pay bands, and/or a bonus.
Supervisory Bonus
Supervisory bonuses of up to 10 percent of the basic rate of pay
may be paid at the discretion of Commanders/Directors to supervisors
with employees in the same pay band. In exceptional cases (approved by
HQ, DHA R&D), supervisors who do not have employees in the same pay
band may be compensated up to five percent of basic rate of pay.
Employees who qualify for the bonus include supervisors in all
occupational families with formal supervisory authority meeting that
required for coverage under the OPM GS Supervisory Guide. The
supervisory bonus is to recognize supervisory responsibilities required
of supervisors most often receiving the same pay as non-supervisory
subordinates. There are two situations in which a supervisory bonus may
be warranted:
1. Supervisors may be granted up to 10 percent of the basic rate of
pay if they supervise employees within the same pay band, or
2. Up to five percent of the basic rate of pay for those
supervising employees in lower or other pay bands.
Note: Pay band V employees in the E&S occupational family are
excluded. Bonuses, which must be negotiated annually, will not
[[Page 58863]]
be treated as basic pay and are not a part of the performance pay
pool.
Because the bonus is paid at the beginning of the appraisal period,
if the individual leaves a supervisory position or is removed from
supervisory responsibilities (unless affected through RIF action), the
prorated portion of the bonus for the non-supervisory portion of the
performance year will be recovered as a debt due the Government. Before
any supervisory bonus is paid, the supervisor (employee) will sign an
agreement to make any required repayment.
Pay and Compensation Ceilings
An employee's total monetary compensation paid in a calendar year
may not exceed the basic rate of pay paid in Level I of the Executive
Schedule consistent with 5 U.S.C. 5307 and 5 CFR part 530, subpart B.
In addition, each pay band will have its own pay ceiling, just as
grades do in the GS system. Pay rates for the various pay bands will be
directly keyed to the GS rates, except the maximum rate for pay band V
of the engineer and scientist occupational family which cannot exceed
EX4. Basic pay will be limited to the maximum rates payable for each
pay band, except for retained rates as previously described.
Pay Setting for Promotion
The minimum basic pay increase upon promotion to a higher pay band
will be six percent or the minimum rate of the new pay band. The
maximum amount of pay increase upon promotion will not exceed $10,000
or the minimum rate of the new pay band. When a temporary promotion is
terminated, the employee's pay entitlements will be redetermined based
on the employee's position of record, with appropriate adjustments to
reflect pay events during the temporary promotion, subject to the
specific policies and rules established by DHA R&D. In no case may
those adjustments increase the pay for the position of record beyond
the applicable pay range maximum rate.
Placement in a Lower Pay Band
Employees who receive 50 percent or less of an assigned benchmark
score in any element or who are on a performance improvement plan at
the time pay determinations are made, do not receive performance
payouts or the general increase. This action may result in a base
salary that is identified in a lower pay band. This occurs because the
minimum rates of basic pay in a pay band increase as the result of the
general increase (5 U.S.C. 5303). This situation, (a reduction in band
level with no reduction in pay) will not be considered an adverse
action, nor will band retention provisions apply.
D. Hiring and Appointment Authorities
Hiring Authority
A candidate's basic eligibility will be determined using OPM's
Qualification Standards Handbook of GS Positions. Candidates must meet
the minimum standards for entry into the pay band. For example, if the
pay band includes positions in grades GS-5 and GS-7, the candidates
must meet the qualifications for positions at GS-5 level. Specific
experience/education required will be determined based on whether a
position to be filled is at the lower or higher end of the band.
Selective placement factors may be established when determined to be
critical to successful job performance. These factors must be
communicated to all candidates for specific vacancies and must be met
for basic eligibility. As a general rule, appointments will be made at
the entry level of the pay band and pay will be set at the lowest level
in a pay band.
Appointments made above the minimum level will be based upon
superior qualifications of the candidate. A candidate appointed toward
the higher end of a pay band should have qualifications approaching the
lowest GS grade incorporated into the next higher pay band. For
example, a person appointed at the higher end of Pay Band II in the E&S
Occupational Family would have education, experience, or a combination
of the two, approaching the qualifications of the GS-13 level, which is
the lowest GS grade incorporated into Pay Band III.
Appointment Authority
Under the demonstration project, there will continue to be career,
and career conditional appointments. These appointments will use
existing authorities and entitlements. Non-permanent positions
(exceeding one year) needed to meet fluctuating or uncertain workload
requirements will be filled using a Contingent Employee appointment
authority.
Employees hired for more than one year, under the contingent
employee appointment authority are given term appointments in the
competitive service for no longer than five years. The DHA R&D
Commander is authorized to extend a contingent appointment one
additional year. These employees are entitled to the same rights and
benefits as term employees and will serve a one year probationary
period. The Pay-for-Performance Management System outlined in this Plan
applies to contingent employees. Appointment will be made under the
same appointment authorities and process as regular term appointments,
but recruitment bulletins must indicate that there is a potential for
conversion to permanent employment.
Employees hired under the contingent employee authority may be
eligible for conversion to career-conditional appointments. To be
converted, the employee must (1) have been selected for the term
position under competitive procedures, with the announcement
specifically stating that the individual(s) selected for the term
position(s) may be eligible for conversion to career-conditional
appointment at a later date; (2) served two years of substantially
continuous service in the term position; (3) be selected under merit
promotion procedures for the permanent position; and (4) have a current
rating of ``B'' or better.
Employees serving under regular term appointments at the time of
conversion to the demonstration project will be converted to one of the
following term appointments at management discretion, with no change to
the existing Not To Exceed date;
1. New contingent employee appointments provided they were hired
for their current positions under competitive procedure. These
employees will be eligible for conversion to career-conditional
appointment if they have a current rating of ``B'' or better (or the
equivalent of ``B'' in their current evaluation system) and are
selected under merit promotion procedures for their permanent position
after having completed two years of continuous service. Time served in
term positions prior to conversion to the contingent employee
appointment is creditable, provided the service was continuous.
2. The Flexible Length and Renewable Term Technical Appointment as
published in 82 FR 43339 and the internal operating procedures.
Extended Probationary Period
The current one-year probationary period will be extended to ``up
to three years'' for all newly hired employees in all pay bands. The
purpose of extending the probationary period is to allow supervisors an
adequate period of time to fully evaluate an employee's ability to
complete a research cycle and/or to fully evaluate an employee's
contribution and conduct. The length of the probationary period for the
E&S Occupational Family will be three years. The probationary period
for all other occupational families will be two years.
[[Page 58864]]
Aside from extending the time period, all other features of the
current probationary period are retained including the potential to
remove an employee without providing the full substantive and
procedural rights afforded a non-probationary employee. Any employee
subject to serving a probationary period that was appointed prior to
the implementation date will not be affected. The ``up to three years''
probation will apply to new hires or those who do not have reemployment
rights or reinstatement privileges.
Probationary employees will be terminated when the employee fails
to demonstrate proper conduct, technical competency, and/or adequate
contribution for continued employment. When the DHA R&D decides to
terminate an employee serving a probationary period because his/her
work performance or conduct during this period fails to demonstrate
his/her fitness or qualifications for continued employment, it shall
terminate his/her services by written notification of the reasons for
separation and the effective date of the action. The information in the
notice as to why the employee is being terminated shall, as a minimum,
consist of the manager's conclusions as to the inadequacies of his/her
performance or conduct.
Supervisory Probationary Periods
Supervisory probationary periods will be made consistent with 5 CFR
315.901. Employees that have successfully completed the initial
probationary period will be required to complete an additional one-year
supervisory probationary period for the initial appointment to a
supervisory position. An employee may simultaneously complete the one-
year supervisory probationary period at the same time they complete the
initial two- or three-year probationary period. If an employee is
promoted into the supervisory position, during this time the decision
is made to return the employee to a non-supervisory position for
reasons solely related to supervisory performance, the employee will be
returned to a comparable position of no lower pay band and basic pay
than the position from which he/she was promoted.
Voluntary Emeritus Program
Under the demonstration project, Commanders/Directors will have the
authority to offer retired, or separated employees voluntary
assignments in their activities. This authority will include
individuals who have retired or separated from Federal service.
Voluntary Emeritus Program (VEP) assignments are not considered
``employment'' by the Federal Government (except for the purposes of
injury compensation). Thus, such assignments do not affect an
employee's entitlement to buy-outs or severance payments based on an
earlier separation from Federal service. The VEP will ensure continued
quality research while reducing the overall salary line by allowing
individuals to accept retirement incentive with the opportunity to
retain a presence within their community. The program will be of most
benefit during manpower reductions as individuals could accept
retirement and return to provide valuable on-the-job training or
mentoring to less experienced individuals.
To be accepted into the emeritus program, a volunteer must be
approved by the subordinate activity Commander/Director. Everyone who
applies is not entitled to a voluntary assignment. The laboratory
Commander/Director must clearly document the decision-making process
for each applicant (whether accepted or rejected) and retain the
documentation throughout the assignment.
Documentation of rejections will be maintained for two years. To
ensure success and encourage participation, the individual's Federal
retirement pay (whether military or civilian) will not be affected
while serving in a voluntary capacity. Retired or separated Federal
individuals may accept an emeritus position without a break or
mandatory waiting period.
Volunteers will not be permitted to monitor contracts on behalf of
the government or to participate on any contracts where a conflict of
interest exists. The same rules that currently apply to source
selection members will apply to volunteers. An agreement will be
established between the volunteer, the subordinate activity Commander/
Director, and the servicing CHRSC. The agreement will be reviewed by
the DHA legal office for ethics determinations under the Joint Ethics
Regulations. The agreement must be finalized before the assumption of
duties and shall include:
(a) a statement that the voluntary assignment does not constitute
an appointment in the civil service and is without compensation, and
any and all claims against the Government because of the voluntary
assignment are waived by the volunteer;
(b) a statement that the volunteer will be considered a Federal
employee for the purpose of injury compensation;
(c) volunteer's work schedule;
(d) length of agreement (defined by length of project or time
defined by weeks, months, or years);
(e) support provided by the subordinate activity (travel,
administrative, office space, supplies);
(f) a one-page or less Statement of Duties and Experience;
(g) a provision that states no additional time will be added to a
volunteer's service credit for such purposes as retirement, severance
pay, and leave as a result of being a member of the VEP;
(h) a provision allowing either party to void the agreement with 10
working days written notice; and
(i) the level of security access required (any security clearance
required by the position will be managed by the subordinate activity
while the volunteer is a member of the VEP).
Voluntary Expert Program
Under the demonstration project, Commanders/Directors will have the
authority to offer voluntary assignments to U.S. citizens who are
retired, separated or on sabbatical from private or public sector
organizations. The VEP will provide opportunities for these individuals
to bring commercial sector or public sector knowledge and experience
into the STRLs. The VEP will not be used to replace any government
personnel or interfere with their career opportunities. The VEP may not
be used to replace of substitute for work performed by government
personnel occupying positions required to perform the STRL's mission.
The VEP assignments are not considered ``employment'' by the Federal
government (except as described in 85 FR 5639). The DHA R&D will
implement the VEP in accordance with 85 FR 5639.
E. Expanded Developmental Opportunities Program
The DHA R&D Expanded Developmental Opportunities Program will cover
all demonstration project employees. An expanded developmental
opportunity complements existing developmental opportunities such as
(1) long-term training, (2) one-year work experiences in an industrial
setting via the Relations With Industry Program, (3) one-year work
experiences in laboratories of allied nations via the Science and
Engineer Exchange Program, (4) rotational job assignments within the
DHA R&D, (5) developmental assignments in higher headquarters within
the DHA and DoW, (6) self-directed study via correspondence courses and
local colleges and
[[Page 58865]]
universities, (7) details within DHA R&D and to other Federal Agencies,
and (8) Intergovernmental Personnel Act Agreements.
Each developmental opportunity period should benefit the DHA R&D,
as well as increase the employee's individual effectiveness. Various
learning or uncompensated developmental work experiences may be
considered, such as advanced academic teaching or research,
sabbaticals, or on-the-job work experience with public or non-profit
organizations.
An expanded developmental opportunity period will not result in
loss of (or reduction in) basic pay, leave to which the employee is
otherwise entitled, or credit for time or service. Input for
performance rating purposes will be obtained from the gaining
organization to ensure a rating of record is on file and, if warranted,
a performance award and/or bonus and retention years credit for RIF
purposes is documented. The opportunity to participate in the Expanded
Developmental Opportunities Program will be announced as opportunities
arise. Instructions for application and the selection criteria will be
included in the announcement. Final selection/approval for
participation in the program will be made by activity Commanders/
Directors. The position of employees on an expanded developmental
opportunity may be backfilled by temporary promotion, or temporary/
contingent employees. However, that position or its equivalent must be
made available to the employee returning from the expanded
developmental opportunity.
An employee accepting an Expanded Developmental Opportunity must
sign a continuing service agreement. If the employee voluntarily leaves
the DHA R&D before the service obligation is completed, the employee is
liable for repayment. However, the DHA R&D Director has the authority
to waive this agreement.
F. Revised Reduction-in-Force (RIF) Procedures
The DHA R&D will follow the RIF rules as published in 87 FR 58334
dated September 26, 2022. The RIF rules as they apply to DHA R&D will
be addressed in the internal operating procedures.
When an employee in the DHA R&D demonstration project is faced with
separation or downgrading due to lack of work, shortage of funds,
reorganization, insufficient personnel ceiling, the exercise of
reemployment or restoration rights, or furlough for more than 30
calendar days or more than 22 discontinuous days, RIF procedures will
be used. The RIF notice period will follow OPM guidelines. Except where
waived or modified in the waiver section of this plan, grade and pay
retention will follow current law and regulations (e.g. occupational
family pay bands will substitute for grade.)
Use of Voluntary Incentives
The 82 FR 43339, September 15, 2017, authorizes the DHA R&D
Director to offer Voluntary Early Retirement (VERA) and VSIP
authorities, as appropriate, to: Approve the use of VERA/VSIP
incentives; determine which employees should be offered such
incentives; and determine the amount of VSIP.
IV. Training
Introduction
The key to the success or failure of the proposed demonstration
project will be the training provided for all involved. This training
will not only provide the necessary knowledge and skills to carry out
the proposed changes but will also lead to commitment to the program on
the part of participants.
Training at the beginning of implementation and throughout the
demonstration will be provided to supervisors, employees, and the
administrative staff responsible for assisting managers in effecting
the changeover and operation of the new system. The elements to be
covered in the orientation portion of this training will include at a
minimum: (1) A description of the personnel system, (2) how employees
are converted into and out of the system, (3) the pay adjustment and/or
bonus process, (4) familiarization with the new position descriptions
and performance objectives, (5) the performance evaluation management
system, (6) the reconsideration process, and (7) the demonstration
project administrative and formal evaluation process.
Supervisors
The focus of this project on management-centered personnel
administration, with increased supervisory and managerial personnel
management authority and accountability, demands thorough training of
supervisors and managers in the knowledge and skills that will prepare
them for their new responsibilities. Training will include detailed
information on the policies and procedures of the demonstration
project, training in using the classification system, position
description preparation, and performance evaluation. Additional
training may focus on non-project procedural techniques such as
interpersonal and communication skills.
Administrative Staff
The administrative staff, including human resources specialists,
subordinate activity administrative officers, and human resources
points of contact will play a key role in advising, training, and
coaching supervisors and employees in implementing the demonstration
project. This staff will need training in the procedural and technical
aspects of the project.
Employees
The DHA R&D Demonstration Project Office will make and coordinate
all arrangements necessary to train employees covered under the
demonstration project. In the months leading up to the implementation
date, meetings will be held for employees to fully inform them of all
project decisions, procedures, and processes.
V. Conversion
Conversion to the Demonstration Project
Initial entry into the demonstration project will be accomplished
through a full employee protection approach that ensures each employee
an initial place in the appropriate pay band and pay preservation as
allowed by regulation.
(a) Under the GS pay structure, employees progress through their
assigned grade in step increments. The DHA R&D demo replaces the GS
grade structure with pay bands. Employees being assigned to the DHA R&D
demo from the GS structure, whether voluntary or involuntary, will be
awarded that portion of the next higher step based upon the portion of
the waiting period they have completed prior to the date of conversion
to the DHA R&D demo; this is called a within grade increase (WGI) buy-
in and will be added to the employee's base pay (without locality), as
long as the WGI buy-in does not cause the total base pay to exceed the
top of the pay band for which assigned. Employees at step 10, or
receiving retained rates, on the date of implementation will not be
eligible for a prorated lump sum buyout of the WGI since they are
already at or above the top of the step scale.
(b) Employees who are covered by special salary rates, prior to the
demonstration project, will no longer be considered a special rate
employee under the demonstration project. These employees will,
therefore, be eligible for full locality pay. The adjusted salaries of
[[Page 58866]]
these employees will not change. Rather, the employees will receive a
new basic pay rate computed by dividing their adjusted basic pay
(higher of special rate or locality rate) by the locality pay factor
for their area. A full locality adjustment will then be added to the
new basic pay rate. Adverse action and pay retention provisions will
not apply to the conversion process as there will typically be no
change in total salary. In situations where the special salary rate
exceeds the adjusted salary rate (that includes locality pay) may be
considered for a staffing supplement.
(c) Employees serving under regular term appointments at the time
of the implementation of the demonstration project will be converted to
the contingent employee appointments so long as the original term
appointment was made under competitive procedures. An automatic
conversion from current GS grade and pay into a new broadband system
will be accomplished. Each employee's initial total salary under the
demonstration project will be set as outlined in paragraph (b) above.
If conversion into the demonstration project is accomplished by a
geographic move, the employee's GS pay entitlements in the new
geographic area must be determined before performing the pay
conversion.
(d) Employees who are on temporary promotions at the time of
conversion will be converted to a pay band commensurate with the grade
of the position to which temporarily promoted. At the conclusion of the
temporary promotion, the employee will revert to the pay band which
corresponds to the grade of record. When a temporary promotion is
terminated, the employee's pay entitlements will be determined based on
the employee's position of record, with appropriate adjustments to
reflect pay events during the temporary promotion, subject to the
specific policies and rules established by the DHA R&D. In no case may
those adjustments increase the pay for the position of record beyond
the applicable pay range maximum rate. The only exception will be if
the original competitive promotion announcement stipulated that the
promotion could be made permanent; in these cases, actions to make the
temporary promotion permanent will be considered, and if implemented,
will be subject to all existing priority placement programs.
(e) Employees who voluntarily accept a lower pay band where the
maximum rate is lower than the employee's current salary, pay will be
set at the maximum rate of the lower pay band.
Conversion or Movement From a Project Position to a GS Position
If a DHA R&D demonstration project employee is moving to a GS
position, or if the project ends and each project employee must be
converted back to the GS system, the following procedures will be used
to convert the employee's project pay band to a GS-equivalent grade and
the employee's project rates of pay to GS-equivalent rates of pay. The
converted GS grade and GS rates of pay must be determined before
movement or conversion out of the demonstration project and any
accompanying geographic movement, promotion, or other simultaneous
action. For conversions upon termination of the project and for lateral
reassignments, the converted GS grade and rate will become the
employee's actual GS grade and rate after leaving the demonstration
project (before any other action). For transfers, promotions, and other
actions, the converted GS grade and rate will be used in applying any
GS pay administration rules applicable in connection with the
employee's movement out of the project (e.g., promotion rules, highest
previous rate rules, pay retention rules), as if the GS converted grade
and rate were actually in effect immediately before the employee left
the demonstration project. The converted GS grade may be used to
determine placement in non-GS positions.
Grade-Setting Provisions
An employee in a pay band corresponding to a single GS grade is
converted to that grade. An employee in a pay band corresponding to two
or more grades is converted to one of those grades according to the
following rules:
(a) The employee's adjusted rate of basic pay under the
demonstration project (including any locality payment) is compared with
step 4 rates in the highest applicable GS rate range. (For this
purpose, a ``GS rate range'' includes a rate range in (1) the GS base
schedule, (2) the locality rate schedule for the locality pay area in
which the position is located, or (3) the appropriate special rate
schedule for the employee's occupational series, as applicable.) If the
series is a two-grade interval series, only odd-numbered grades are
considered below GS-11.
(b) If the employee's adjusted project rate equals or exceeds the
applicable step 4 rate of the highest GS grade in the band, the
employee is converted to that grade.
(c) If the employee's adjusted project rate is lower than the
applicable step 4 rate of the highest grade, the adjusted rate is
compared with the step 4 rate of the second highest grade in the
employee's pay band. If the employee's adjusted rate equals or exceeds
step 4 rate of the second highest grade, the employee is converted to
that grade.
(d) This process is repeated for each successively lower grade in
the band until a grade is found in which the employee's adjusted
project rate equals or exceeds the applicable step 4 rate of the grade.
The employee is then converted at that grade. If the employee's
adjusted rate is below the step 4 rate of the lowest grade in the band,
the employee is converted to the lowest grade.
(e) Exception: If the employee's adjusted project rate exceeds the
maximum rate of the grade assigned under the above-described ``step 4''
rule but fits in the rate range for the next higher applicable grade
(i.e., between step 1 and step 4), then the employee shall be converted
to that next higher applicable grade.
(f) Exception: An employee will not be converted to a lower GS
grade than the GS grade currently encompassed within employee's current
pay band.
Pay-Setting Provisions
An employee's pay within the converted GS grade is set by
converting the employee's demonstration project rate of pay to GS rate
of pay in accordance with the following rules:
(a) The pay conversion is done before any geographic movement or
other pay-related action that coincides with the employee's movement or
conversion out of the demonstration project.
(b) An employee's adjusted rate of basic pay under the project
(including any locality payment) is converted to a GS adjusted rate on
the highest applicable GS rate range for the converted GS grade. (For
this purpose, a ``GS rate range'' includes a rate range in (1) the GS
base schedule, (2) an applicable locality rate schedule, or (3) an
applicable special rate schedule.)
(c) If the highest applicable GS rate range is a locality pay rate
range, the employee's adjusted project rate is converted to a GS
locality rate of pay. If this rate falls between two steps in the
locality-adjusted schedule, the rate must be set at the higher step.
The converted GS unadjusted rate of basic pay would be the GS base rate
corresponding to the converted GS locality rate (i.e., same step
position). (If this employee is also covered by a special rate schedule
as a GS employee, the converted special rate will be determined based
on the GS step position. This underlying special rate will be basic pay
for certain purposes
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for which the employee's higher locality rate is not basic pay.)
(d) If the highest applicable GS grade is GS-15, and the employee's
adjusted pay falls within the locality pay cap range, i.e., the maximum
allowed for the GS-15, the step will be determined by looking at the
base pay (without locality). If the employee's base pay falls between
two steps, the rate will be set at the higher step.
(e) If the highest applicable GS rate range is a special rate
range, the employee's adjusted project rate is converted to a special
rate. If this rate falls between two steps in the special rate
schedule, the rate must be set at the higher step. The converted GS
unadjusted rate of basic pay will be the GS rate corresponding to the
converted special rate (i.e., same step position).
E&S Pay Band V Employees
An employee in Pay Band V of the E&S Occupational Family will
convert out of the demonstration project at the GS-15 level. The DHA
R&D, in consultation with the CHRSC, will develop a procedure to ensure
that employees entering Pay Band V understand that if they leave the
demonstration project and their adjusted pay exceeds the GS-15, step 10
rate, there is no entitlement to retained pay; their GS-equivalent rate
will be deemed to be the rate for GS-15, step 10. For those Pay Band V
employees paid below the adjusted GS-15, step 10 rate, the converted
rates will be set in accordance with Pay-Setting Provisions above.
Employees With Band or Pay Retention
If an employee is retaining a band level under the demonstration
project, apply the procedures in the Grade-Setting and Pay-Setting
Provisions above, using the grades encompassed in the employee's
retained band to determine the employee's GS-equivalent retained grade
and pay rate. The time in a retained band under the demonstration
project counts toward the two-year limit on grade retention in 5 U.S.C.
5362.
If an employee is receiving a retained rate under the demonstration
project, the employee's GS-equivalent grade is the highest grade
encompassed in his or her band level. The standard provisions of pay
retention under 5 U.S.C. 5362 shall apply to DHA R&D employees, except
as waived or modified in Section IX of the FRN.
Within-Grade Increase--Equivalent Increase Determinations
Service under the demonstration project is creditable for within-
grade increase purposes upon conversion back to the GS pay system.
Performance pay increases (including a zero increase) under the
demonstration project are equivalent increases for the purpose of
determining the commencement of a within-grade increase waiting period
under 5 CFR 531.405(b).
VI. Project Administration
All personnel laws, regulations, and guidelines not waived by this
plan will remain in effect. Basic employee rights will be safeguarded,
and merit principles will be maintained. Supporting personnel
specialists in CHRSC will continue to process personnel-related actions
and provide consultative and other appropriate services.
Automation
The DHA R&D will continue to use the DCPDS for the processing of
personnel-related data. Payroll servicing will continue from the
respective payroll offices. Local automated systems will be developed
to support computation of performance-related pay increases and awards,
and other personnel processes and systems associated with this project.
Revision
Modifications may be made from time to time as experience is
gained, results are analyzed, and conclusions are reached on how the
system is working. The DHA R&D will make minor modifications, such as
changes in the occupational series in an occupational family without
further notice.
VII. Project Evaluation
Introduction
The main purpose of the evaluation is to determine whether the
waivers granted result in a more effective personnel system and
improvements in both intermediate and ultimate outcomes (i.e.,
organizational effectiveness, mission accomplishment, and customer
satisfaction). In conducting the evaluation DHA R&D will ensure the
Under Secretary of War for Research and Engineering (USW(R&E))
evaluation requirements are met in addition to applying knowledge
gained from other DoW laboratories and their evaluations to ensure a
timely, useful evaluation of the demonstration project.
This STRL adopts innovative practices tested in other STRLs,
tailored policies and procedures to meet the specific needs of DHA R&D,
and allows continued exploration and adaptation of innovative practices
to meet future needs. The STRL flexibilities may be modified, new
interventions adopted, unintended consequences corrected, and guidance
clarified as experience is gained, results analyzed, and conclusions
are reached on how the system is working in a changing workforce
environment.
Evaluation Model
An evaluation model for the DHA R&D Demo will utilize elements
critical to an assessment of the effectiveness of the flexibilities.
Evaluation will include pre-implementation of DHA R&D data to assess
actual effect size of transitioning out of the USAMRDC and comparing
across the likely annual and five-year milestones as a baseline. The
focus of the evaluation will be on pre-implementation of DHA R&D data
to assess actual effect size of transitioning out of the USAMRDC,
intermediate outcomes, i.e., the results of specific personnel system
changes which are expected to improve human resources management; and,
ultimate outcomes, i.e., improved organizational effectiveness, mission
accomplishment, and DHA R&D customer satisfaction.
Interim evaluations, as requested by the PMB, DHA R&D Director,
DHA, or DoW authority, are conducted to review and assess the
effectiveness of STRL features. Qualitative and quantitative data from
various sources will be used in the evaluation, to include summary data
from performance rating periods and workforce surveys. Annually,
reviews and analyses of the performance management system and the
performance payout process are conducted for consistency, fairness, and
equity and findings and recommendations are presented to the PMB, DHA
R&D Director, and/or other authority, as appropriate. The DHA R&D
reviews and considers the evaluations provided, may revise operating
policies and procedures, and make recommendations to the PMB.
Temporary Authorities Evaluation
Procedures for evaluating temporary authorities are incorporated
into the normal STRL evaluation process as appropriate. The DHA R&D
Demo Program Manager will provide information on the use of such
authorities including, but not limited to, hires, retention rates,
compensation, awards, workforce composition, etc. when requested by the
DHA, the Defense Civilian Personnel Advisory Service, USW(R&E), or
other appropriate requesting authority.
Method of Data Collection
Data from a variety of different sources will be used in the
evaluation.
[[Page 58868]]
Sources may include employees, leadership, stakeholder, decision-maker,
customer, mission partners, etc. Information from existing personnel
management information systems supplemented with perceptual survey data
from employees, leadership, and mission-related organizations will be
used to assess variables related to effectiveness. Multiple methods
provide more than one perspective on how the DHA R&D Demo is working.
Information gathered through one method will be used to validate
information gathered through another. Confidence in the findings will
increase as results are substantiated by the review and validation of
results through different collection methods (see Appendix B). The
following types of qualitative and/or quantitative data may be
collected as part of the evaluation:
1. Workforce data.
2. Personnel office data.
3. Employee attitudes and feedback using surveys, structured
interviews, and focus groups.
4. Leadership attitudes and feedback using surveys, structured
interviews, and focus groups.
5. Local activity histories.
6. Core measures of laboratory effectiveness.
VIII. Required Waivers to Law and Regulation
Title 10 U.S.C. 4121 provides authorities to the STRL to experiment
with several personnel management innovations. In addition to the
authorities granted by the law, the following are the waivers of law
and regulation that will be necessary for implementation of the
demonstration project. The below Title 5, U.S.C., and Title 5, Code of
Federal Regulations (CFR) are waived to the extent necessary to allow
the provisions described in this FRN. In due course, additional laws
and regulations may be identified for waiver request.
1. Waivers to Title 5, U.S.C.
Chapter 31, Section 3111: Acceptance of volunteer service--To the
extent that the acceptance of retired or separated civilian and
military are included as volunteers under current statute in addition
to student volunteers.
Chapter 31, Section 3132: The Senior Executive Service, Definitions
and Exclusions.
Chapter 33, Section 3324: Appointments to Positions Classified
Above GS-15.
Chapter 33, Section 3341: Details; within Executive or military
departments--Increasing 120-Day Increments for Details to 180 days.
Chapter 35, Section 3502: Order of Retention--Waived to the extent
necessary to allow the provisions of RIF as described in 87 FR 58334.
Chapter 43, Sections 4302 and 4303: To the extent necessary to (1)
substitute ``pay band'' for ``grade'' and (2) provide that moving to a
lower pay band as a result of not receiving the full amount of a
general pay increase because of poor performance is not an action
covered by the provisions of section 4303.
Chapter 51, Sections 5101-5111: Purpose, definitions, basis,
classification of positions, review, authority--Applies to the extent
that white collar employees will be covered by broad banding. Pay
category determination criteria for Federal wage system positions
remain unchanged.
Chapter 53, Sections 5301, 5302 (8) and (9), 5303 and 5304: Pay
Comparability System--Sections 5301, 5302, and 5304 are waived only to
the extent necessary to allow (1) demonstration project employees to be
treated as GS employees, (2) basic rates of pay under the demonstration
project to be treated as scheduled rates of pay, and (3) employees in
Pay Band V of the E&S Occupational Family to be treated as ST employees
for the purposes of these provisions.
Chapter 53, Section 5305: Special Salary rates.
Chapter 53, Sections 5331-5336: General Schedule Pay Rates.
Chapter 53, Sections 5361-5366: Grade and pay retention--This
waiver applies only to the extent necessary to:
(1) replace ``grade'' with ``pay band;''
(2) allow demonstration project employees to be treated as GS
employees;
(3) provide that pay band retention provisions do not apply to
movements to a lower pay band as a result of not receiving the general
increase due to an annual performance rating of ``F;''
(4) provide that pay retention provisions do not apply to
conversions from GS special rates to demonstration project pay, as long
as total pay is not reduced;
(5) provide that an employee receiving a retained rate whose
performance rating is ``F'' at the time of a general pay increase will
receive no increase in the retained rate;
(6) ensure that, for employees in Pay Band V of the E&S
Occupational Family, pay band retention is not applicable and pay
retention provisions are modified so that no rate established under
these provisions may exceed the rate of basic pay for GS-15, step 10
(i.e., there is no entitlement to a retained rate).
Chapter 53, Section 5371: Health Care Positions--This waiver
applies only to the extent necessary to allow demonstration project
employees to be treated as if they hold positions subject to chapter 51
of title 5.
Chapter 55, Section 5545(d): Hazardous Duty Differential--This
waiver applies only to the extent necessary to allow demonstration
project employees to be treated as GS employees. This waiver does not
apply to employees in Pay Band V of the E&S Occupational Family.
Chapter 57, Sections 5753, 5754, and 5755: Recruitment and
relocation bonuses, retention incentives, and supervisory differentials
waved to the extent necessary to allow provisions as described in this
FRN.
Chapter 59, Section 5941: Allowances based on living costs and
conditions of environment; employees stationed outside continental U.S.
or Alaska. This waiver applies only to the extent necessary to provide
that Cost of Living Adjustments paid to employees under the
demonstration project are paid in accordance with regulations
prescribed by the President (as delegated to OPM).
Chapter 59, Section 5948(1): Physicians Comparability Allowances--
This waiver applies only to the extent necessary to allow (1)
physicians under the demonstration project to be treated as employees
paid under the GS and (2) physicians in Pay Band V of the E&S
Occupational Family who are performing research and technology
assignments to be treated as ST positions.
Chapter 75, Adverse Actions, sections 7501(1), 7511(a)(1)(A)(ii),
and 7511(a)(1)(C)(ii): Waived to the extent necessary to apply
probationary and trial period requirements described in STRL FRNs.
Chapter 75, Section 7512(3): Adverse actions--This provision is
waived only to the extent necessary to (1) replace ``grade'' with ``pay
band'' and (2) provide that a reduction in band level is not an adverse
action if it results from the employee's rate of basic pay being
exceeded by the minimum rate of basic pay for his or her pay band.
Chapter 75, Section 7512(4): Adverse actions--This provision is
waived only to the extent that adverse action provisions do not apply
to conversions from GS special rates to demonstration project pay, as
long as total pay is not reduced.
Title 5, CFR
Part 300.601-605: Time-In-Grade Restrictions--Restrictions
eliminated under the demonstration.
[[Page 58869]]
Part 308.101-103: Volunteer Service--To the extent that retired/
separated civilians and military can perform voluntary services in
addition to student volunteers.
Part 11 Probationary and Trial Periods, part 11: Waived to the
extent necessary to apply probationary and trial period requirements
described in this FRN.
Part 316.301: Term Employment--Adding years to exceed four and
establishment of Contingent appointments and allow provisions of the
flexible length and renewable term-technical appointments.
Part 316.303: Tenure of term employees--Demonstration allows for
conversion to career/career-conditional appointments.
Part 316.303(a): Waived to the extent necessary to allow flexible
length and renewable term technical appointments to count toward
competitive status.
Part 316.304(a): Waived to allow a two-year probationary period
under the flexible length and renewable term-technical appointments.
Part 316.305: Eligibility for within- grade increases--
Demonstration employees no longer receive WGIs.
Part 334, Section 334.102: Temporary Assignment of Employees
Outside the Agency. Waived to the extent necessary to allow the
provisions described in this FRN.
Part 335.103: Covering the length of details and temporary
promotions.
Part 351, Subparts B, D, E, F, and G: Waived to the extent
necessary to allow the provisions of RIF as described in 87 FR 58334.
Part 430: Subpart B, Performance Appraisal for General Schedule,
Prevailing Rate, and Certain Other Employees--Employees under the
demonstration project will not be subject to the requirements of this
subpart.
Part 430.208: Rating performance is waived to the extent necessary
to allow STRLs to assign an assumed rating as described in 87 FRN
58334.
Part 432: Performance-Based Reduction In Grade and Removal
Actions--Modified to the extent that an employee may be removed,
reduced in band level with a reduction in pay, and reduced in pay
without a reduction in band level based on unacceptable performance.
For employees who are reduced in band level without a reduction in pay
as a result of non-receipt of a general increase, Sections 432.105 and
432.106 (a) and (c) do not apply.
Part 432, Sections 104 and 105: Addressing unacceptable performance
and proposing and taking action based on unacceptable performance--In
so far as references to ``critical elements'' are deleted (all elements
are critical), and adding that the employee may be ``reduced in band
level, or pay, or removed'' if performance does not improve to
acceptable levels after a reasonable opportunity.
Part 511: Classification Under the General Schedule--To the extent
that grades are changed to broadbands, and that white collar positions
are covered by broad banding.
Part 530, subpart C: Special Salary Rate Schedules for Recruitment
and Retention. Waived to the extent necessary to allow the provisions
described in this FRN.
Part 531, subparts B, D, and E: Pay Under the GS--Determining rate
of basic pay, within-grade increases, and quality step increases.
Waived to the extent necessary to allow the provisions described in
this FRN.
Part 531, subpart F: Locality Based Comparability Payments--This
waiver applies only to the extent necessary to allow:
(1) Demonstration project employees to be treated as GS employees,
(2) basic rates of pay under the demonstration project to be
treated as scheduled annual rates of pay, and
(3) employees in Pay Band V of the E&S Occupational Family to be
treated as ST employees for the purposes of these provisions.
Part 536: Grade and pay retention--This waiver applies only to the
extent necessary to:
(1) Replace ``grade'' with ``pay band;''
(2) allow demonstration project employees to be treated as GS
employees;
(3) provide that pay band retention provisions do not apply to
movements to a lower pay band as a result of not receiving the general
increase due to an annual performance rating of ``F;''
(4) provide that pay retention provisions do not apply to
conversions from GS special rates to demonstration project pay, as long
as total pay is not reduced;
(5) provide that an employee receiving a retained rate whose
performance rating is ``F'' at the time of a general pay increase will
receive no increase in the retained rate;
(6) ensure that, for employees in Pay Band V of the E&S
Occupational Family, pay band retention is not applicable and pay
retention provisions are modified so that no rate established under
these provisions may exceed the rate of basic pay for GS-15, step 10
(i.e., there is no entitlement to a retained rate).
Part 550.703: Severance Pay--This waiver applies only to the extent
necessary to modify the definition of ``reasonable offer'' by replacing
``two grade or pay levels'' with ``one band level'' and ``grade or pay
level'' with ``band level.''
Part 550.902: Hazardous Duty Differential--This waiver applies only
to the extent necessary to allow demonstration project employees to be
treated as GS employees. This waiver does not apply to employees in Pay
Band V of the E&S Occupational Family.
Part 575, Subparts A-D: Recruitment incentives, relocation
incentives, retention incentives, and supervisory differentials. Waived
to the extent necessary to allow provisions as described in this FRN.
Part 591, subpart B: Cost-of-Living Allowances and Post
Differential-Non-foreign Areas--This waiver applies to the extent
necessary to allow (1) Demonstration project employees to be treated as
employees under the GS and (2) employees in Pay Band V of the E&S
Occupational Family to be treated as ST employees for the purposes of
these provisions.
Part 752.401(a)(3): Adverse Actions--This waiver applies only to
the extent necessary to (1) replace ``grade'' with ``pay band'' and (2)
provide that a reduction in pay band level is not an adverse action if
it results from the employee's rate of basic pay being exceeded by the
minimum rate of basic pay for his or her pay band.
Part 752.401(a)(4): Adverse Actions--This waiver applies only to
the extent that adverse action provisions do not apply to conversions
from GS special rates to demonstration project pay, as long as total
pay is not reduced.
Appendix A: Occupational Series by Occupational Family
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Appendix B: Project Evaluation and Oversight-Intervention Impact Model-
DoW Lab Demonsration Program
BILLING CODE 6001-FR-P
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Appendix C: Performance Elements
BILLING CODE 601-FR-C
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Dated: September 15, 2026.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2026-19092 Filed 9-16-26; 8:45 am]
BILLING CODE 6001-FR-P
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</html>Indexed from Federal Register on September 17, 2026.
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