Skip to main content
Notice2026-19805

Science and Technology Reinvention Laboratory Personnel Demonstration Project Program

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 28, 2026

Issuing agencies

Defense Department

Abstract

Science and Technology Reinvention Laboratories (STRLs) may implement Senior Business Technical Manager (SBTM) positions, which are defined as senior business and technical positions comparable to positions classified above the General Schedule (GS)-15 level. SBTMs are senior business and operations leaders within the STRL, serving as primary advisors to the STRL's Commanding Officers and/or members of the Senior Executive Service (SES). SBTMs oversee and operationalize the STRL's business operations, administration, and technology functions. SBTM positions may only be established at authorized STRLs with personnel demonstration projects.

Full Text

<html>
<head>
<title>Federal Register, Volume 91 Issue 186 (Monday, September 28, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 186 (Monday, September 28, 2026)]
[Notices]
[Pages 61212-61217]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-19805]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

Office of the Secretary


Science and Technology Reinvention Laboratory Personnel 
Demonstration Project Program

AGENCY: Under Secretary of Defense for Research and Engineering 
(USD(R&E)), Department of Defense (DoD).

ACTION: Notice of demonstration project.

-----------------------------------------------------------------------

SUMMARY: Science and Technology Reinvention Laboratories (STRLs) may 
implement Senior Business Technical Manager (SBTM) positions, which are 
defined as senior business and technical positions comparable to 
positions classified above the General Schedule (GS)-15 level. SBTMs 
are senior business and operations leaders within the STRL, serving as 
primary advisors to the STRL's Commanding Officers and/or members of 
the Senior Executive Service (SES). SBTMs oversee and operationalize 
the STRL's business operations, administration, and technology 
functions. SBTM positions may only be established at authorized STRLs 
with personnel demonstration projects.

DATES: Implementation of this Federal Register notice (FRN) will begin 
no earlier than September 28, 2026.

FOR FURTHER INFORMATION CONTACT: 
    Department of Defense:
    <bullet> Office of the Under Secretary of Defense for Research and 
Engineering, Science and Technology Foundations: Dr. Richard T. LaVoie, 
703-545-9457, <a href="/cdn-cgi/l/email-protection#42302b212a2330266c366c2e23342d2b27706c212b34022f232b2e6c2f2b2e"><span class="__cf_email__" data-cfemail="9deff4fef5fceff9b3e9b3f1fcebf2f4f8afb3fef4ebddf0fcf4f1b3f0f4f1">[email&#160;protected]</span></a>.
    Defense Health Agency:
    <bullet> Defense Health Agency Research and Development: Ms. Lyn 
Krout, 301-619-7276, <a href="/cdn-cgi/l/email-protection#137f7a7d77723d793d78617c66673d707a65537b76727f677b3d7e7a7f"><span class="__cf_email__" data-cfemail="6f0306010b0e410541041d001a1b410c06192f070a0e031b0741020603">[email&#160;protected]</span></a>.
    Department of the Air Force:
    <bullet> Air Force Research Laboratory: Ms. Rosalyn Jones-Byrd, 
937-656-9747, <a href="/cdn-cgi/l/email-protection#2d7f425e4c41544303674243485e006f545f496d585e034c4b03404441"><span class="__cf_email__" data-cfemail="c99ba6baa8a5b0a7e783a6a7acbae48bb0bbad89bcbae7a8afe7a4a0a5">[email&#160;protected]</span></a>.
    <bullet> Joint Warfare Analysis Center: Ms. Amy Balmaz, 540-653-
8598, <a href="/cdn-cgi/l/email-protection#ca8ba7b3e49ee488aba6a7abb0e4a9a3bc8aa7aba3a6e4a7a3a6"><span class="__cf_email__" data-cfemail="56173b2f78027814373a3b372c78353f20163b373f3a783b3f3a">[email&#160;protected]</span></a>.
    Department of the Army:
    <bullet> Transformation and Training Command: Ms. Marlowe Richmond, 
571-588-1219, <a href="/cdn-cgi/l/email-protection#014c60736d6e76642f536862696c6e6f652f6268774160736c782f6c686d"><span class="__cf_email__" data-cfemail="703d11021c1f07155e221913181d1f1e145e1319063011021d095e1d191c">[email&#160;protected]</span></a>.
    <bullet> Army Research Institute for the Behavioral and Social 
Sciences: Dr. Scott Shadrick, 254-288-3800, 
<a href="/cdn-cgi/l/email-protection#e5b6868a91918c80cba7cbb68d8481978c868ecb868c93a58497889ccb888c89"><span class="__cf_email__" data-cfemail="e2b1818d96968b87cca0ccb18a8386908b8189cc818b94a283908f9bcc8f8b8e">[email&#160;protected]</span></a>.
    <bullet> Combat Capabilities Development Command Armaments Center: 
Ms. Pota Kripotos, 973-724-9165, <a href="/cdn-cgi/l/email-protection#3c6c53485d12774e554c5348534f125f554a7c5d4e514512515550"><span class="__cf_email__" data-cfemail="84d4ebf0e5aacff6edf4ebf0ebf7aae7edf2c4e5f6e9fdaae9ede8">[email&#160;protected]</span></a>.
    <bullet> Combat Capabilities Development Command Army Research 
Laboratory: Mr. Christopher Tahaney, 410-845-7834, 
<a href="/cdn-cgi/l/email-protection#f2b19a809b81869d829a9780dca1dca6939a939c978bdc919b84b293809f8bdc9f9b9e"><span class="__cf_email__" data-cfemail="c380abb1aab0b7acb3aba6b1ed90ed97a2aba2ada6baeda0aab583a2b1aebaedaeaaaf">[email&#160;protected]</span></a>.
    <bullet> Combat Capabilities Development Command Aviation and 
Missile Center: Mr. Justin Page, 256-755-1698, 
<a href="/cdn-cgi/l/email-protection#264c5355524f48084208564741431208454f506647544b5f084b4f4a"><span class="__cf_email__" data-cfemail="eb819e989f8285c58fc59b8a8c8edfc588829dab8a998692c5868287">[email&#160;protected]</span></a>.
    <bullet> Combat Capabilities Development Command Chemical 
Biological Center: Ms. Patricia Knuckey, 410-417-2343, 
<a href="/cdn-cgi/l/email-protection#d585b4a1a7bcb6bcb4fb99fb9ebba0b6beb0acfbb6bca395b4a7b8acfbb8bcb9"><span class="__cf_email__" data-cfemail="8bdbeafff9e2e8e2eaa5c7a5c0e5fee8e0eef2a5e8e2fdcbeaf9e6f2a5e6e2e7">[email&#160;protected]</span></a>.
    <bullet> Combat Capabilities Development Command--Command, Control, 
Communications, Computers, Cyber, Intelligence, Surveillance, and 
Reconnaissance Center: Mr. Gregory Peck, 520-674-6820, 
<a href="/cdn-cgi/l/email-protection#93f4e1f6f4fce1eabdf2bde3f6f0f8a2a5bdf0fae5d3f2e1feeabdfefaff"><span class="__cf_email__" data-cfemail="5d3a2f383a322f24733c732d383e366c6b733e342b1d3c2f302473303431">[email&#160;protected]</span></a>.
    <bullet> Combat Capabilities Development Command Ground Vehicle 
Systems Center: Ms. Erin Stein, 586-459-8362, 
<a href="/cdn-cgi/l/email-protection#2560574c4b0b480b5651404c4b0b464c53654457485c0b484c49"><span class="__cf_email__" data-cfemail="abeed9c2c585c685d8dfcec2c585c8c2ddebcad9c6d285c6c2c7">[email&#160;protected]</span></a>.
    <bullet> Combat Capabilities Development Command Soldier Center: 
Ms. Sarah Palmer, 508-206-3421, <a href="/cdn-cgi/l/email-protection#0152607360692f432f51606d6c64732f6268774160736c782f6c686d"><span class="__cf_email__" data-cfemail="02516370636a2c402c52636e6f67702c616b744263706f7b2c6f6b6e">[email&#160;protected]</span></a>.
    <bullet> Communications-Electronics Command Software Engineering 
Center: Ms. Teresa Manganaro, 443-861-8149, 
<a href="/cdn-cgi/l/email-protection#b6e2d3c4d3c5d798f798fbd7d8d1d7d8d7c4d998d5dfc0f6d7c4dbcf98dbdfda"><span class="__cf_email__" data-cfemail="99cdfcebfceaf8b7d8b7d4f8f7fef8f7f8ebf6b7faf0efd9f8ebf4e0b7f4f0f5">[email&#160;protected]</span></a>.
    <bullet> Engineer Research and Development Center: Dr. Lucy Priddy, 
601-634-2282, <a href="/cdn-cgi/l/email-protection#6c20190f15423c423c1e050808152c191f0d0f09420d1e011542010500"><span class="__cf_email__" data-cfemail="7d31081e04532d532d0f141919043d080e1c1e18531c0f100453101411">[email&#160;protected]</span></a>.
    <bullet> Medical Research and Development Command: Ms. Linda Krout, 
301-619-7276, <a href="/cdn-cgi/l/email-protection" class="__cf_email__" data-cfemail="eaa683848e8bc4a0c4a198859f9ec489839caa828f8b869e82c4878386">[email&#160;protected]</a>.
    <bullet> Technical Center, Space and Missile Defense Command: Dr. 
Chad Marshall, 256-955-5697, <a href="/cdn-cgi/l/email-protection#14577c75703a5e3a597566677c7578783a777d62547566796d3a797d78"><span class="__cf_email__" data-cfemail="5e1d363f3a701470133f2c2d363f3232703d37281e3f2c332770333732">[email&#160;protected]</span></a>.
    Department of the Navy:
    <bullet> Naval Air Warfare Center, Weapons Division and Aircraft 
Division: Mr. Dustin Kirby, 760-608-9248, 
<a href="/cdn-cgi/l/email-protection#03477670776a6d2d682d686a71617a2d606a754376702d6d62757a2d6e6a6f"><span class="__cf_email__" data-cfemail="32764741465b5c1c591c595b40504b1c515b447247411c5c53444b1c5f5b5e">[email&#160;protected]</span></a>.
    <bullet> Naval Facilities Engineering Command Engineering and 
Expeditionary Warfare Center: Ms. Kelly Mitchell, 564-226-0476, 
<a href="/cdn-cgi/l/email-protection#7b301e17170255375536120f18131e17174a4d5518120d3b0e0855151a0d0255161217"><span class="__cf_email__" data-cfemail="bcf7d9d0d0c592f092f1d5c8dfd4d9d0d08d8a92dfd5cafcc9cf92d2ddcac592d1d5d0">[email&#160;protected]</span></a>.
    <bullet> Naval Information Warfare Centers:
    [cir] Naval Information Warfare Center Atlantic: Ms. Alissa Lopez, 
843-218-3871, <a href="/cdn-cgi/l/email-protection#cf8ea3a6bcbcaee1a2e1a3a0bfaab5fbe1aca6b98fbabce1a1aeb9b6e1a2a6a3"><span class="__cf_email__" data-cfemail="c988a5a0babaa8e7a4e7a5a6b9acb3fde7aaa0bf89bcbae7a7a8bfb0e7a4a0a5">[email&#160;protected]</span></a>.
    [cir] Naval Information Warfare Center Pacific: Ms. Sharmeka 
Speights, 619-553-6282, <a href="/cdn-cgi/l/email-protection#cd9ea5acbfa0a8a6ace3a0e3bebda8a4aaa5b9bee3aea4bb8db8bee3a3acbbb4e3a0a4a1"><span class="__cf_email__" data-cfemail="adfec5ccdfc0c8c6cc83c083deddc8c4cac5d9de83cec4dbedd8de83c3ccdbd483c0c4c1">[email&#160;protected]</span></a>.
    <bullet> Naval Medical Research Center: Dr. Jill Phan, 301-319-
7645, <a href="/cdn-cgi/l/email-protection#400a292c2c6e036e1028212e6e232936002d21292c6e2d292c"><span class="__cf_email__" data-cfemail="115b787d7d3f523f4179707f3f727867517c70787d3f7c787d">[email&#160;protected]</span></a>.
    <bullet> Naval Research Laboratory: Ms. Annemarie Slattery, 771-
216-7577, <a href="/cdn-cgi/l/email-protection#3d5c535358505c4f54581350134e515c4949584f44135e544b7d484e13535c4b4413505451"><span class="__cf_email__" data-cfemail="89e8e7e7ece4e8fbe0eca7e4a7fae5e8fdfdecfbf0a7eae0ffc9fcfaa7e7e8fff0a7e4e0e5">[email&#160;protected]</span></a>.
    <bullet> Naval Sea Systems Command Warfare Centers: Ms. Emily 
Grauwiler, 301-312-1185, <a href="/cdn-cgi/l/email-protection#fe9b93979287d08cd0998c9f8b8997929b8cd09d9788be8b8dd0909f8887d0939792"><span class="__cf_email__" data-cfemail="e2878f8b8e9bcc90cc85908397958b8e8790cc818b94a29791cc8c83949bcc8f8b8e">[email&#160;protected]</span></a>.
    <bullet> Office of Naval Research: Mr. Damien Raphael, 703-696-
0383, <a href="/cdn-cgi/l/email-protection#5a2f2836333429743e74283b2a323b3f367439332c1a2f2974343b2c2374373336"><span class="__cf_email__" data-cfemail="6a1f1806030419440e44180b1a020b0f064409031c2a1f1944040b1c1344070306">[email&#160;protected]</span></a>.
    Marine Corps:
    <bullet> Marine Corps Tactical Systems Support Activity: Ms. Lissa 
Henriksen, 760-587-6893, <a href="/cdn-cgi/l/email-protection#4824213b3b296624292427262c2d083d3b252b66252124"><span class="__cf_email__" data-cfemail="204c495353410e4c414c4f4e44456055534d430e4d494c">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION:

1. Background

    Through the USD(R&E), the Secretary of Defense exercises the 
authorities granted to the Office of Personnel Management (OPM) under 
title 5 of United States Code (U.S.C.) section 4703 to conduct 
personnel demonstration projects at DoD laboratories designated as 
STRLs. All STRLs authorized pursuant to 10 U.S.C. 4121(a) and (b) may 
use the provisions described in this FRN. STRLs implementing these 
flexibilities must have an approved personnel demonstration project 
plan published in an FRN. Each STRL will establish internal operating 
procedures (IOPs) as appropriate.
    The 24 current STRLs are:

<bullet> Defense Health Agency Research and Development

[[Page 61213]]

<bullet> Air Force Research Laboratory
<bullet> Joint Warfare Analysis Center
<bullet> Transformation and Training Command
<bullet> Army Research Institute for the Behavioral and Social Sciences
<bullet> Combat Capabilities Development Command Armaments Center
<bullet> Combat Capabilities Development Command Army Research 
Laboratory
<bullet> Combat Capabilities Development Command Aviation and Missile 
Center
<bullet> Combat Capabilities Development Command Chemical Biological 
Center
<bullet> Combat Capabilities Development Command--Command, Control, 
Communications, Computers, Cyber, Intelligence, Surveillance, and 
Reconnaissance Center
<bullet> Combat Capabilities Development Command Ground Vehicle Systems 
Center
<bullet> Combat Capabilities Development Command Soldier Center
<bullet> Communications--Electronics Command Software Engineering 
Center
<bullet> Engineer Research and Development Center
<bullet> Medical Research and Development Command
<bullet> Technical Center, U.S. Army Space and Missile Defense Command
<bullet> Marine Corps Tactical Systems Support Activity
<bullet> Naval Air Systems Command Warfare Centers
<bullet> Naval Facilities Engineering Command Engineering and 
Expeditionary Warfare Center
<bullet> Naval Information Warfare Centers, Atlantic and Pacific
<bullet> Naval Medical Research Center
<bullet> Naval Research Laboratory
<bullet> Naval Sea Systems Command Warfare Centers
<bullet> Office of Naval Research

2. Summary of Comments

    On January 9, 2026, the DoD published a notice (91 FR 985-990) 
concerning a new flexibility, SBTM, for a 30-day public comment period. 
The public comment period ended on February 9, 2026. Three comments 
were received and are addressed as follows.
    Comment: One commenter expressed concern over the requirement that 
SBTMs typically report to an SES or an SES equivalent-level position 
and stated that it could pose a conflict with Navy regulations that 
direct a comptroller to report to the head of the activity, who may or 
may not be an SES or equivalent.
    Response: No changes were made to the notice based on this comment. 
The FRN language was intentionally crafted to reflect the significant 
variety in reporting structures across STRLs and their Components. In 
recognition of these differences in organizational frameworks and 
externally imposed grade-level restrictions, the FRN specifies that 
SBTMs ``typically'' report to an SES or SES equivalent-level position. 
This provides flexibility rather than imposing a rigid requirement for 
SES-level reporting.
    Comment: One commenter expressed several concerns about the 
creation of SBTM positions:
    1. Exceeds DoD's statutory authority under 10 U.S.C. 4121.
    2. Is inconsistent with the requirement that STRL projects be 
``generally similar'' to the China Lake demonstration project.
    3. Circumvents established statutory frameworks for senior federal 
positions.
    4. Lacks the reasoned analysis required under the Administrative 
Procedure Act.
    5. Lacks adequate safeguards.
    6. Poses substantial risks to the integrity and mission of STRLs.
    Response: No changes were made to the notice based on these 
comments. While 10 U.S.C. 4121 designates STRLs, 5 U.S.C. 4703 is the 
authorizing statute for demonstration projects. The notice waives all 
necessary statutory requirements in title 5 U.S.C. and title 5 Code of 
Federal Regulations (CFR) sections to implement the SBTM authority. The 
phrase ``generally similar'' in 10 U.S.C. 4121, as it relates to the 
China Lake model, is language Congress intentionally left flexible. It 
does not mean ``identical,'' nor does it require STRLs to replicate 
China Lake feature-for-feature. The SBTM authority does not establish a 
new category of executive positions. These positions are not classified 
as SES or equivalent and will be classified appropriately under the 
STRLs' delegated classification authority. Regarding safeguards and 
risks to the integrity of the STRL missions, Congress directed 
oversight of the STRL demonstration projects to the Secretary of 
Defense, through the USD(R&E), who follows the evaluation and review 
requirements in 5 U.S.C. 4703.
    Comment: One commenter stated the notice should specify that SBTMs 
will be classified into the appropriate career track/path for business 
and technical/professional positions.
    Response: Two sentences were changed to clarify the appropriate 
career track/path for SBTMs. The second to last sentence of the last 
paragraph in Section 3.I.A. and Section 3.II.A.2.(b) are modified to 
clarify that SBTMs will be classified under the appropriate career 
track/path for business and technical/professional positions.

3. Overview

I. Introduction

A. Purpose
    This FRN grants a new authority to establish SBTM positions, above 
the GS-15 level, for STRL senior business administration, operations, 
and technology functions that support and enable the laboratories' 
research and development missions. A strong business and operations 
support framework and staff are essential to ensuring the STRLs are 
prepared and able to advance military technology and capability in 
accordance with the National Defense Strategy. The SBTM category 
encompasses positions that would exceed the GS-15 classification 
criteria of the GS and contain characteristics of SES and Senior Level 
(SL).
    The SL classification designation would not be appropriate because 
SBTM positions may direct the work of an organizational unit; be held 
accountable for the success of one or more specific programs; monitor 
the progress toward organizational goals and objectives and 
periodically evaluate and make appropriate adjustments to such goals; 
supervise the work of employees other than administrative assistants; 
or otherwise exercise important policy-development and implementation, 
or other executive level functions. SES classification designation 
would also not be appropriate because SBTMs do not exercise the full 
scope of managerial authority and impact required of SES positions. The 
SBTMs establish a separate pay band level in the business and 
technical/professional career track. This notice implements the SBTM 
authority.
B. Required Waivers to Law and Regulation
    Waivers and adaptations of certain title 5 U.S.C. and title 5 CFR 
provisions are required only to the extent that these statutory and 
regulatory provisions limit or are inconsistent with the actions 
authorized under this demonstration project.
    Appendix A lists waivers needed to enact authorities described in 
this FRN. Nothing in this plan is intended to preclude the 
demonstration project from adopting or incorporating any law or 
regulation enacted, adopted, or amended after the effective date of 
this FRN.
C. Expected Benefits
    The SBTM authority is expected to:

[[Page 61214]]

    (1) Allow proper classification of positions that are engaged in 
operationalizing laboratory management functions, recognizing the 
exceptionally high level of expertise required to oversee enterprise-
wide business and technical operations, such as financial management, 
information technology and information assurance, contract management, 
facilities and infrastructure management, and human capital management.
    (2) Attract, retain, and appropriately compensate highly qualified 
business and technology professionals with significant experience and 
expertise managing the supporting business elements of highly complex 
and technology-focused organizations.
    (3) Provide the opportunity for career development and expand the 
pool of experienced, prominent business and technical candidates 
meeting the levels of proficiency and leadership essential for enabling 
the operation of world-class DoD laboratories.

II. Personnel System Changes

    All current STRL demonstration project plans are hereby amended to 
add the following:
A. Description and Implementation of SBTM Positions
1. Authorized Positions
    The number of authorized SBTM positions in each STRL shall not 
exceed one percent of the number of civilian and military positions 
employed at such laboratory, inclusive of positions both within and 
outside the STRL's personnel demonstration project, which are filled as 
of the close of the preceding fiscal year. If one percent of authorized 
positions does not equate to a whole number, the STRL shall round down 
to the next lower number; however, each STRL shall be authorized at 
least one SBTM position regardless of the number of positions employed 
at such laboratory. Though the authorized number of SBTM positions may 
increase or decrease as the overall civilian and military workforce 
increases or decreases, no SBTM employees will have their 
classification as a SBTM changed or their pay reduced, because the size 
of the STRL's civilian and military workforce has decreased. In such 
circumstances, an STRL may temporarily exceed its new SBTM authorized 
number until attrition occurs.
2. Position Classification
(a) Position Requirements
    At a minimum, all SBTM positions require senior manager up to 
executive level knowledge, skills, and abilities in competencies 
related to STRL business and operations of highly complex technical 
organizations or business units. SBTMs have a crucial role in driving 
strategic direction, supporting research and development in defense 
planning, ensuring operational excellence, and fostering a culture of 
integrity and innovation to achieve sustainable success. Incumbents 
will typically possess extensive knowledge and experience in one or 
more business or technical requirements below or another area 
determined by the STRL director:
    <bullet> Implementing and managing major policies and programs and 
advising senior officials on programs such as human capital, 
contracting, financial management, operations, facility management, or 
environmental policy and their impact on research programs.
    <bullet> Managing defense acquisition policy and familiarity with 
policies concerning contracting for services.
    <bullet> Managing information technology, including policy 
formulation and technical expertise across all aspects of information 
management at the STRL, with a special focus on creating visionary 
plans for future mission and business information systems.
    <bullet> Managing defense cyber competencies that support science 
and technology initiatives to contribute to the development of cyber 
resilient transformation and readiness technologies.
    Examples of other requirements may include strategic and 
operational leadership, configuration management, quality assurance, 
stakeholder engagement, laboratory governance, leadership development, 
strategic partnership, regulatory compliance, crisis management, and 
innovation and adaptation.
    SBTMs typically report to an SES or an SES equivalent-level 
position. Since all SBTM positions will typically be administrative 
supervisors, they may be eligible for a supervisory pay differential at 
the discretion of the STRL director.
(b) Pay Bands/Career Track
    This FRN authorizes STRLs to modify the existing career track for 
business and technical/professional positions to accommodate the SBTM 
category and broadband level. Specific details will be included in STRL 
IOPs.
3. Designated Classification Officials for SBTM Positions
    STRL directors are designated as the classification officials for 
SBTM positions. Each STRL's IOP will provide specific details on each 
STRL's classification process, control, and management of these 
positions.
4. Staffing and Recruitment
    (a) Positions may be filled on a temporary, flexible term, or 
permanent basis utilizing appropriate internal or external competitive 
recruitment procedures, direct hire authority, or through accretion-of-
duties promotions. Positions may also be filled temporarily using 
noncompetitive procedures (e.g., detail and temporary promotions).
    (b) In addition to permanent appointments, the following 
appointment types may be used:
(1) Flexible-Length and Renewable Term Appointments
    This appointment authority may be used to fill SBTM positions for a 
period of more than one year but not more than five years. The flexible 
term appointment may be made for a period up to five years, and the 
STRL director may extend the appointment in up to five-year increments. 
Prior to extending a term appointment, management will determine if the 
work or services continue to be temporary in nature, or if they should 
be made permanent. Candidates selected from outside the Federal 
government may be hired using the flexible term appointment authority 
and may be eligible for extension or conversion to career or career-
conditional appointment if services are deemed permanent. To be 
converted, the employee must: (1) have been notified in writing at the 
time of the initial appointment of the possibility for conversion to a 
permanent SBTM position at a later date; (2) have served a minimum of 
one year of continuous service; and (3) have at least a fully 
successful or equivalent SBTM performance rating applicable to the STRL 
demonstration project. Additionally, to be eligible for conversion, 
when positions being filled using the flexible term appointment 
authority are announced, whether via competitive or merit promotion 
procedures, the vacancy announcement must contain a statement notifying 
applicants that the position may be eligible for extension or 
conversion to a permanent appointment. The probationary or trial period 
specified in each STRL's FRN in Appendix B will apply to individuals 
appointed under the Flexible Term Appointment. Personnel appointed 
under the Flexible-Length and Renewable Term authority described in 
this section shall be provided with benefits comparable to those 
provided to status or permanent employees at the STRL concerned,

[[Page 61215]]

including professional development opportunities, eligibility for all 
awards programs, and designation as ``status applicants'' for the 
purposes of eligibility for positions in the Federal service.
(2) Flexible Temporary Promotions
    STRLs may use flexible temporary promotions to SBTM positions for 
not more than five years, with the ability to extend in five-year 
increments for candidates who are current Federal employees. Prior to 
extending a temporary promotion, management will determine if the work 
or services continue to be temporary in nature or should be made 
permanent. If not extended or made permanent, the employee will return 
to a position for which the employee is qualified that is the same 
grade as previously held before the assignment. Upon termination of 
temporary promotion, pay will be set in accordance with the STRLs' IOP. 
Candidates may be eligible for conversion to a permanent SBTM position 
if the position requirements are deemed permanent by the STRL director. 
To be converted, the employee must: (1) have been notified in writing 
at the time of the initial action of the possibility for conversion to 
a permanent SBTM position at a later date; (2) have served a minimum of 
one year of continuous service in the temporary assignment; and (3) 
have at least a fully successful or equivalent SBTM performance rating 
applicable to the STRL demonstration project.
    (c) STRL directors have the discretion to select the recruitment 
and staffing method most appropriate based on the specialized position 
requirements and available candidate pool. Each STRL will further 
describe recruitment and staffing methodologies in its respective IOP.
    STRLs must establish recruitment and staffing methodologies that 
include:
    (1) an internal process that incorporates an impartial, rigorous, 
and demanding assessment of candidates to evaluate the breadth of their 
expertise;
    (2) an external recruitment process which incorporates an 
impartial, rigorous, and demanding assessment of candidates to evaluate 
the breadth of their expertise; or
    (3) the creation of panels to assist in filling positions or other 
comparable recruitment or staffing mechanisms.
5. Basic Pay Range
    The minimum basic pay for SBTM positions is 115 percent of the 
minimum rate of basic pay for GS-15. Maximum SBTM basic pay with 
locality pay is limited to Executive Level III (EX-III), and maximum 
salary without locality pay may not exceed EX-IV.
6. Performance Management
    Each STRL will determine the appropriate performance or 
contribution management system, non-SES/SL/ST or SES/SL/ST program, to 
be used to evaluate an SBTM employee's performance or contribution. The 
selected method will be documented in each STRL's IOP.
7. Pay Retention
    Pay retention may be provided to SBTM members under criteria 
established by each STRL if they are impacted by a reduction in force, 
work realignment, or other planned management action that would 
necessitate moving the incumbent to a position in a lower pay band 
within the STRL. Pay retention may also be provided under criteria 
established by each STRL when an SES/ST/SL employee is placed in a SBTM 
position as a result of a reduction in force or other management 
action. Grade retention is not authorized for SBTM positions.
8. SBTM Supervisory Pay Differential
    A supervisory pay differential may be used by STRL directors to 
provide an incentive to appropriately compensate SBTM personnel. This 
pay differential is a pay incentive that may range up to 5 percent of 
basic pay (excludes locality pay) for SBTM personnel. It is paid on a 
pay period basis and must be reviewed annually. This pay differential 
is not included as part of basic pay for any purpose. Criteria to be 
considered in determining the amount of the pay differential are:
    (a) needs of the organization;
    (b) budgetary constraints;
    (c) years and quality of related experience;
    (d) relevant training;
    (e) performance appraisals;
    (f) experience as a supervisor or manager;
    (g) organizational level of the position; and
    (h) impact on the organization.
    The pay differential may be terminated or reduced at the discretion 
of the STRL director based on legitimate business reasons; however, the 
pay differential must be terminated if the employee is removed from a 
position for which a pay differential is approved, regardless of cause. 
Each STRL will document in its IOP the method used for determining 
payment, reduction, or discontinuation of the pay differential. All 
personnel actions involving a supervisory pay differential will require 
a statement signed by the employee acknowledging that the pay 
differential may be terminated or reduced at the discretion of the STRL 
director. The termination or reduction of the pay differential is not 
an adverse action and is not subject to appeal. The total pay 
(including locality pay) may not exceed the midpoint between the 
maximum rate of basic pay of EX-III and the maximum rate of basic pay 
of EX-II, (for example, for 2024 $213,000; the calculation is rounded 
up to the next thousand). SBTM employees are subject to the aggregate 
limitation on pay pursuant to 5 U.S.C. 5307 and 5 CFR subpart 530.203.
9. SBTM Program Oversight
    The program shall be managed and administered by the STRL director 
in compliance with the provisions of this FRN and any IOPs developed by 
each STRL.
10. Evaluation
    Procedures for evaluating this authority will be incorporated into 
the STRL personnel demonstration project evaluation process conducted 
by the STRLs in conjunction with the USD(R&E) Science and Technology 
Workforce Office.

Appendix A: Required Waivers to Laws and Regulations

[[Page 61216]]



------------------------------------------------------------------------
                                              Title 5, Code of Federal
        Title 5, United States Code                  Regulations
------------------------------------------------------------------------
5 U.S.C. 3104--Employment of Specially      5 CFR part 316--Waived to
 Qualified Scientific and Professional       the extent necessary to
 Personnel. Waive to allow scientific or     allow flexible term
 professional positions for this             appointments as described
 authority.                                  in this FRN.
5 U.S.C. 3324--Appointments to Positions    5 CFR part 330, section
 Classified Above GS-15; Waived in           330.707(h): Exceptions to
 entirety.                                   Interagency Career
5 U.S.C. 3304 & 3304a--Waived to the         Transition Assistance Plan
 extent necessary to allow flexible term     (ICTAP) selection
 appointments as described in this FRN.      priority.--Waived to the
5 U.S.C. 5301--Policy; 5 U.S.C. 5302(8)      extent necessary to allow
 and (9)--Definitions; 5 U.S.C. 5303--       conversion to permanent
 Annual Adjustments to Pay Schedules; 5      positions without clearing
 U.S.C. 5304--Locality-based Comparability   ICTAP.
 Payments; and 5 U.S.C. 5306--Pay Fixed by  5 CFR 335.102(f) Agency
 Administrative Action. Waived to the        authority to promote,
 extent necessary to allow SBTM employees    demote, or reassign--Waived
 to be treated as GS employees and basic     to the extent necessary to
 rates of pay under the demonstration        allow temporary promotions
 project to be treated as scheduled rates    as described in this FRN.
 of basic pay and to permit SBTM pay not    5 CFR 359.705--Waived to
 to exceed EX-IV and locality adjusted       allow demonstration project
 SBTM rates not to exceed EX--III.           rules governing pay
5 U.S.C. 5363--Waived to the extent          retention to apply to a
 necessary to allow SBTMs to receive pay     former SES placed on an
 retention as described in this FRN.         SBTM position.
5 U.S.C. 5755--Waived to the extent         5 CFR part 531, subpart F
 necessary to allow SBTMs to receive         Locality-based
 supervisory pay differentials as            Comparability Payments.--
 described in this FRN.                      Waived to the extent
                                             necessary to allow SBTM
                                             employees to be treated as
                                             GS employees and basic
                                             rates of pay under the SBTM
                                             to be treated as scheduled
                                             annual rates of pay.
                                            5 CFR 536.306(a)--Waived to
                                             the extent necessary to
                                             allow SBTMs to receive pay
                                             retention as described in
                                             this FRN.
                                            5 CFR part 575, subpart D--
                                             Waived to the extent
                                             necessary to allow SBTMs to
                                             receive supervisory pay
                                             differentials as described
                                             in this FRN.
------------------------------------------------------------------------

Appendix B. Authorized STRLs and Federal Register Notices

------------------------------------------------------------------------
                    STRL                       Federal Register notice
------------------------------------------------------------------------
Air Force Research Laboratory..............  61 FR 60400 amended by 75
                                              FR 53076.
Joint Warfare Analysis Center..............  85 FR 29414.
Transformation and Training Command........  89 FR 13548.
Army Research Institute for Behavioral and   85 FR 76038.
 Social Sciences.
Combat Capabilities Development Command      76 FR 3744.
 Armaments Center.
Combat Capabilities Development Command      63 FR 10680.
 Army Research Laboratory.
Combat Capabilities Development Command      62 FR 34906 and 62 FR 34876
 Aviation and Missile Center.                 amended by 65 FR 53142
                                              (Aviation Research,
                                              Development, and
                                              Engineering Center and
                                              Aviation and Missile
                                              Research, Development and
                                              Engineering Center merged
                                              together).
Combat Capabilities Development Command      74 FR 68936.
 Chemical Biological Center.

[[Page 61217]]

 
Combat Capabilities Development Command--    66 FR 54872.
 Command, Control, Communications, Cyber,
 Intelligence, Surveillance, and
 Reconnaissance Center.
Combat Capabilities Development Command      76 FR 12508.
 Ground Vehicle Systems Center.
Communications-Electronics Command Software  Not published.
 Engineering Center.
Combat Capabilities Development Command      74 FR 68448.
 Soldier Center.
Defense Health Agency Research &             91 FR 58853.
 Development.
Engineer Research and Development Center...  63 FR 14580 amended by 65
                                              FR 32135.
Medical Research and Development Command...  63 FR 10440.
Technical Center, US Army Space and Missile  85 FR 3339.
 Defense Command.
Naval Air Systems Command Warfare Centers..  76 FR 8530.
Naval Facilities Engineering Command         86 FR 14084.
 Engineering and Expeditionary Warfare
 Center.
Naval Information Warfare Centers, Atlantic  76 FR 1924.
 and Pacific.
Naval Medical Research Center..............  Not published.
Naval Research Laboratory..................  64 FR 33970.
Naval Sea Systems Command Warfare Centers..  62 FR 64050.
Office of Naval Research...................  75 FR 77380.
Marine Corps Tactical Systems Support        Not published.
 Activity.
------------------------------------------------------------------------


    Dated: September 24, 2026.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2026-19805 Filed 9-25-26; 8:45 am]
BILLING CODE 6001-FR-P


</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>
Indexed from Federal Register on September 28, 2026.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.