[`Material Transmitted:`]{.underline}

    HHS Instruction 451-1, Incentive Awards

[`Material Superseded:`]{.underline}

    HHS Instruction 451-1 (all)

    HHS Circular 451-6 (all)

[`Background:`]{.underline}

    This Instruction has been revised consistent with recent changes in the organization of HHS,  and in support of HHS administrative initiatives  calling  for more  streamlined  rules  and greater delegation of authority.

    Under this issuance, the rules were streamlined and the delegation of authority was increased.

    Any reference to "OPDIV" in this Instruction now includes AHCPR, ATSDR,  CDC ,  FDA,  HRSA ,  IHS, NIH, SAMHSA,  the Office of the Secretary, the Program Support Center, HCFA, ACF, and AOA.

    This issuance is effective immediately.  Implementation of this issuance must be carried out in accordance with applicable laws, regulations, and bargaining agreements.

[`Filing Instructions:`]{.underline}

    Remove superseded material and file new material.  Post receipt of this transmittal to the HHS Check List of Transmittals and file this transmittal in sequential order after the check list.

     John J. Callahan

     Assistant Secretary for

     Management and Budget

    INSTRUCTION 451-1

    Distribution:  MS (PEW): HRFC-001

[HHS PERSONNEL INSTRUCTION 451-1]{.underline}

[INCENTIVE AWARDS]{.underline}

451-1-00 Purpose

10 Coverage

20 References

30 Policy

40 Superior Accomplishment Awards

50 Presidential Awards

60 Time Off Awards

70 Departmental Awards

80 Non-HHS Awards

90 Length-of-Service Recognition

100 Retirement Recognition

110 Awards Ceremonies

120 Maintenance of Records

Exhibit 451-1-A, Delegation of Authority for Incentive

Awards Programs

451-1-00 PURPOSE\
\
This Instruction states Department policies and requirements for
administering Incentive Awards Programs.

451-1-10 COVERAGE

A.  All Department employees are covered by this Instruction.

B.  Former employees and legal heirs or estates of deceased employees
    are eligible for awards for contributions made during Government
    employment with this Department.

C.  Non-Federal individuals or employees of other Federal agencies are
    eligible for HHS awards. (Non-Federal individuals are not eligible
    for monetary awards.)\
    \
    NOTE: This Instruction does not cover performance awards based on
    ratings of record.

451-1-20 REFERENCES

A.  5 U.S. Code 552a (law - records maintained on individuals)

B.  5 U.S. Code 4501 through 4507 (law - incentive awards)

C.  Executive Order 10096, as amended by Executive Order 10695
    (providing for a uniform patent policy for the government with
    respect to inventions made by government employees and for the
    administration of such policy)

D.  5 CFR, Part 451 (regulations - incentive awards)

E.  45 CFR, Part 6 (regulations - inventions and patents)

F.  45 CFR, Part 7 (regulations - employee inventions)

G.  General Administration Manual Chapter 6-10 (employee inventions)

H.  HHS Personnel Instruction 293-1 (personnel records disposal)

I.  HHS Personnel Instruction 430-4 (employee performance management
    system: performance appraisal)

J.  HHS Personnel Instruction 430-5 (employee performance management
    system \--performance awards)

K.  HHS Personnel Instruction 430-6 (performance management for members
    of the senior executive service)

L.  HHS Personnel Instruction 430-7 (performance appraisal system)

M.  HHS Personnel Instruction 920-1 (executive resources management )

N.  54 Comp. Gen. 1054

O.  55 Comp. Gen. 800

P.  65 Comp. Gen. 738

451-1-30 POLICY

It is the policy of this Department to establish and maintain effective
Incentive Awards Programs and to encourage the use of incentive awards
as a management tool to recognize and reward HHS employees, non-Federal
personnel, or employees of other Federal agencies.

451-1-40 SUPERIOR ACCOMPLISHMENT AWARDS

A.  Superior Accomplishment Awards are designed to improve Government
    efficiency, economy, and effectiveness by motivating employees to
    increase productivity and creativity by rewarding their efforts
    which benefit the Government.

B.  The decision to grant a Superior Accomplishment Award, including the
    amount of such an award, shall be reviewed and approved by an
    official of the Department who is at a higher level than the
    official who made the initial decision, unless there is no official
    at a higher level in the Department.

C.  Following are the three categories of Superior Accomplishment
    Awards:

    1.  [Special Acts or Services]{.underline} - The determining factor
        in distinguishing what constitutes a special act or service is
        the nature of the contribution itself\-- a special effort in
        performing that aspect of the job that would not otherwise be
        appropriately recognized through a performance award. OPDIVs and
        STAFFDIVs may develop procedures for granting some special act
        or service awards as On-the-Spot Awards to provide immediate
        recognition. These procedures must be in

        a.  A special act or service may be an act of heroism, a special
            project or assignment that involved overcoming unusual
            difficulties, the performance of assigned duties with
            special effect or innovation that resulted in a significant
            economic or other highly desirable benefit, or a creative
            effort that made an important contribution to science or
            research.

        b.  A Special Act or Service Award, which can be either an
            individual or a group award, may also be used to recognize
            employees whose disclosure of fraud, waste, or abuse
            resulted in tangible or intangible benefits to the
            Government.

        c.  If an employee\'s contribution has possible wider
            application within the Department or the Government, the
            awards coordinator should promptly forward information about
            the contribution to the appropriate OPDIV/STAFFDIV awards
            coordinator for evaluation and possible further awards or to
            the Department\'s Incentive Awards Coordinator for
            forwarding to the appropriate Federal agency.

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    1.  [Suggestions]{.underline} - A suggestion, used in this context,
        is a constructive idea, submitted in writing by one or more
        individuals, that directly contributes to the economy or the
        efficiency or increases the effectiveness of Government
        operations. Recognition for employee suggestions serves as a
        means for motivating employees to increase productivity and
        creativity by rewarding those whose adopted ideas benefit the
        Government. A suggestion consists of three parts:

        a.  Identification of an existing problem or need

        b.  A suggested method for solving the problem or need

        c.  Estimated benefits or savings, if known\
            \
            (1) A Suggestion Award is granted for a suggestion that is
            adopted by management, and the award will consist of a
            certificate and/or cash.\
            \
            (2) Adopted suggestions that result in first-year tangible
            benefits of \$250,000 or more should be recommended for a
            Presidential Letter of Commendation.

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    1.  Inventions - An invention is a new and useful device,
        contrivance, or process that is (or may be) patentable under the
        patent laws of the United States. An employee (or group of
        employees) may submit an invention report, and inventions that
        have value may be considered for cash awards.

        a.  An Invention Award is monetary recognition granted to a
            Federal employee for an invention which is of interest to
            the United States Government or the public and for which
            patent coverage is sought or granted.

        b.  An initial Invention Award of \$100 is granted to each
            employee when an invention disclosure has been favorably
            searched and a patent application has been filed.

        c.  An additional award of \$300 is granted to each employee
            when a patent has been issued for the invention.

        d.  A further award of up to \$35,000 may be granted on an
            invention owned by the United States Government when:\
            \
            (1) The invention benefits the public as evidenced by the
            number of patent licenses granted, reports on
            commercialization from patent licenses, and other
            information pertaining to the commercial use of the
            invention; or\
            \
            (2)The invention is used by, and provides benefits to, the
            Government.

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A.  When the recommended amount for either a Special Act or Service
    Award or a Suggestion Award exceeds \$10,000 for an individual or a
    group, it must be forwarded to the Executive Secretary, Departmental
    Awards Board, Assistant Secretary for Management and Budget (ASMB),
    through the appropriate awards\\suggestions coordinator. The award
    recommendation must be approved by:

    1.  The appropriate servicing personnel office official

    2.  The appropriate OPDIV/STAFFDIV fiscal officer, certifying that
        funds are available\'

    3.  The appropriate OPDIV/STAFFDIV management levels, including the
        OPDIV/STAFFDIV Head

    4.  The Executive Secretary, Departmental Awards Board

    5.  The Chairman of the Departmental Awards Board

    6.  The Secretary

451-1-50 PRESIDENTIAL AWARDS

A.  [The President's Award for Distinguished Federal Civilian
    Service]{.underline} - This award is the highest honor that the
    Federal Government can grant to a career employee in recognition of
    unusual benefits to the Nation. Generally, five such awards may be
    granted each year and are presented by the President. The award
    consists of a certificate, a gold medal, and a rosette.

    1.  The President's Award for Distinguished Federal Civilian Service
        is granted for outstanding achievements having a major impact on
        improving Government operations or serving the public interest.
        The importance of the achievements must be so outstanding that
        the employee is deserving of greater public recognition than
        that which can be granted by the Secretary.

    2.  The Office of Personnel Management (OPM) reviews all nominations
        for the President\'s Award for Distinguished Federal Civilian
        Service and advises the President, who selects the award
        recipients.

    3.  To be eligible for the President\'s Award for Distinguished
        Federal Civilian Service, a nominee must have received
        recognition from the Department or an OPDIV/STAFFDIV.

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A.  [The Presidential Management Improvement Award]{.underline} - This
    award is presented each year by the President to a limited number of
    individuals or small working teams whose suggestions or special
    achievement contributions during the fiscal year resulted in
    verifiable tangible savings to the Government of \$250,000 or more.

    1.  In addition to Department or OPDIV/STAFFDIV recognition,
        candidates for the Presidential Management Improvement Award
        must also have received a Presidential Letter of Commendation at
        the time of nomination. This award consists of a plaque and a
        certificate.

    2.  OPM and the Office of Management and Budget advise the President
        on final selection. This award is approved and presented by the
        President. Finalists who are not selected for Presidential
        Management Improvement Awards receive Presidential Management
        Improvement Certificates, which are approved by the President
        and presented at appropriate ceremonies within the Department.

    3.  To be eligible for the Presidential Management Improvement
        Award, a nominee must have received recognition from the
        Department or an OPDIV/STAFFDIV.

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A.  [The Presidential Letter of Commendation]{.underline} - This
    commendation is granted for a contribution (suggestion, invention,
    or special act or service) that is beyond job requirements and
    resulted in first-year measurable benefits of \$250,000 or more.
    This commendation consists of a personal letter from the President.

    1.  The nomination for the Presidential Letter of Commendation is
        submitted to the Executive Secretary of the Departmental Awards
        Board, through the appropriate channels, to the Secretary for
        signature. The nomination and the letter are then forwarded to
        the White House.

    2.  To be eligible for a Presidential Letter of Commendation, a
        nominee must have received recognition from the Department or an
        OPDIV/STAFFDIV.

451-1-60 TIME OFF AWARDS

A Time Off Award is an incentive award granted an employee that allows
an excused absence without charge to leave or loss of pay. These awards
are intended to increase Federal employees\' productivity and creativity
by rewarding their contributions to the quality, efficiency, or economy
of Government operations.

A.  Except as indicated in paragraph B below, each determination to
    grant a Time Off Award, including the amount of such an award, shall
    be reviewed and approved by an official who is at a higher level
    than the official who made the initial decision (unless the official
    who made the initial decision is the Secretary) .

B.  To encourage the use of a Time Off Award for timely recognition of
    an employee\'s contribution, an OPDIV/STAFFDIV may authorize
    supervisors to grant such awards without further review or approval
    for periods not to exceed 1 work day.

451-1-70 DEPARTMENTAL AWARDS

A.  Departmental awards are established by the Department and granted by
    the Secretary. They are designed to recognize exceptional or
    meritorious achievement. These awards are as follows:

.

1.  [Secretary\'s Recognition Award]{.underline} - This award was
    designed for the Secretary\'s exclusive and personal use to provide
    recognition for any reason he/she determines to be appropriate. It
    is a plaque, and it may be granted to any individual HHS employee or
    to a group or team of HHS employees. At the Secretary's discretion,
    in extraordinary cases, an honorarium not to exceed \$3,500 may be
    granted.

2.  [Secretary\'s Special Citation]{.underline} - This award represents
    either a major contribution or a single achievement to HHS goals. It
    is a plaque, and it may be granted to any HHS employee.

3.  [Secretary's Certificate of Appreciation]{.underline} - This award
    represents unusual and exemplary dedication, loyalty and
    effectiveness, and a consequent special contribution to the
    Department. It is a certificate which may be granted to either an
    employee of this Department or an individual in the private sector.

4.  [Secretary\'s Letter of Appreciation]{.underline} - This letter
    represents a special significant contribution to the Department\'s
    mission for which one of the other awards is inappropriate. It is a
    commendation signed by the Secretary, and it may be granted to
    either an employee of this Department or an individual in the
    private sector.

5.  [HHS Distinguished Public Service Award]{.underline} - This award
    represents a truly significant contribution with a deep and lasting
    impact on our society or the world. It is a plaque, and it may be
    granted to any individual of national or international reputation.

6.  [HHS Medallion Seal Award]{.underline} - This award was designed for
    the Secretary\'s use to provide instant recognition for special
    services or contributions, such as those which may be encountered
    while traveling, or other special occasions. It is a bronze
    medallion, and it may be granted to any employee of this Department.

7.  [Secretary\'s Award for Distinguished Service]{.underline} - This is
    an honor award granted by the Department and is conferred by the
    Secretary for service that significantly advanced the Department\'s
    mission and goals. It represents a display(s) of leadership, skill,
    ability, and customer service performed in such a manner that the
    team and/or the employee performed significantly above those with
    similar duties, and that the results of these efforts were
    distinctly beneficial to the Department. This award is an
    appropriately inscribed plaque.

8.  [Superior Service Award]{.underline} - This is the highest
    Departmental award that the OPDIVs/STAFFDIVs and the ASMB are
    authorized to grant. It recognizes employees whose service and
    achievements deserve special recognition from the Department. This
    award consists of a silver medal, a lapel pin, and a certificate.
    Either an individual or a group of employees may be granted a single
    certificate citing the accomplishments. While OPDIV/STAFFDIV Heads
    and the ASMB have been delegated authority to grant the Superior
    Service Award, the authority to change or modify the form of
    recognition of the award is retained by the Secretary.

9.  [Regional Director's Citation]{.underline} - This citation is a
    certificate granted by a Regional Director to recognize
    contributions to an HHS regional program. It may be granted to an
    individual in HHS, an HHS group of employees, or individuals and
    groups outside of HHS.

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A.  All nominations for Departmental awards must be forwarded through
    the appropriate awards coordinator and OPDIV/STAFFDIV and Office of
    the Secretary line management channels to be considered by the
    Executive Secretary of the Departmental Awards Board.

B.  Recommendations for the establishment of new Departmental awards
    should be forwarded to the Executive Secretary, Departmental Awards
    Board, for review by the Departmental Awards Board and final
    decision by the Secretary prior to implementation.

C.  When an OPDIV or STAFFDIV wishes to nominate an employee or
    individual in the private sector for a Secretarial award that may be
    granted at any time, a decision memorandum to the Secretary
    outlining the reasons for the award must be forwarded to the
    Executive Secretary of the Departmental Awards Board.

D.  If a request for a cash stipend which accompanies an honor award is
    made, a full justification must be attached to the nomination form.
    The justification must list all recent awards given to the
    individual or group, including the date and type of awards granted,
    the amounts received, and the specific achievements the awards
    recognized. The minimum cash stipend which may be requested is
    \$100, and the maximum amount is \$5,000.

451-1-80 NON-HHS AWARDS

Various organizations outside the Department sponsor awards for which
HHS employees may be nominated. The eligibility and criteria
requirements for each type of award are described in OPM\'S annual Honor
Awards Planning Guide.

451-1-90 LENGTH-OF-SERVICE RECOGNITION

Length-of-Service Recognition recognizes HHS employees with certificates
and emblems. Based on their desires, OPDIVs/STAFFDIVs have the
discretion to grant Length-of-Service Recognition to employees who
complete any number of years up to 49 years of Federal service.
Recognition for 50 years or more will be granted by the Secretary.

451-1-100 RETIREMENT RECOGNITION

Retirement certificates are granted to express appreciation to retiring
employees for the contributions they have made to the Department and to
the Government. In addition to a certificate, a letter of appreciation
may also be given to a retiring employee. All employees are eligible to
receive retirement certificates.

451-1-110 AWARDS CEREMONIES

A.  [Departmental Annual Awards Ceremony]{.underline}\
    \
    Departmental awards are presented annually by the Secretary at the
    Awards Ceremony held in Washington, D.C., on a date close to May 4,
    the Department's anniversary date.

B.  [Operating Division, Office of the Secretary (OS), and Regional
    Annual Awards Ceremonies]{.underline}\
    \
    OPDIV, OS, and regional awards are presented annually by the Heads
    of OPDIVs, the ASMB for the OS, and Regional Directors on dates
    determined by these individuals.

C.  [Special Awards Ceremonies]{.underline}\
    \
    In addition to the awards presented at Annual Awards Ceremonies,
    awards may be presented at special ceremonies held throughout the
    year.

451-1-120 MAINTENANCE OF RECORDS

A.  The employee\'s Official Personnel Folder must contain a permanent
    record of all monetary and honorary awards granted by the Department
    to the employee.

B.  Records related to the administration of the Incentive Awards
    Program will be retained for the period specified in HHS Personnel
    Instruction 293-1.

C.  An award nomination is privileged information. It is to be made
    available only to those involved in the decision-making process and
    certain other officials on a need-to-know basis. Award nominations
    and suggestions are covered by the Privacy Act, and
    nominees/suggesters have the rights of access provided by that Act.
    With the exception of the performance appraisal, documentation
    supporting a successful nomination usually has to be released, if
    requested.

HHS Instruction 451-1 - Exhibit A

DELEGATION OF AUTHORITY FOR INCENTIVE AWARDS PROGRAMS

A.  [Authority Delegated]{.underline}

    1.  I hereby delegate to the Heads of Operating Divisions (OPDIVs)
        and Staff Divisions (STAFFDIVs) the authority to:

        a.  Establish and maintain effective Incentive Awards Programs,
            including Superior Accomplishment Awards (special acts or
            services, suggestions, and inventions) , Time Off Awards,
            Length-of-Service Recognition, and Retirement Recognition.

        b.  Grant cash awards based on special acts or services,
            inventions, and adopted employee suggestions in amounts not
            to exceed \$10,000 for individuals and groups.(Heads of
            STAFFDIVs have this authority up to \$5,000.)

        c.  Grant the Superior Service Award.

        d.  Establish and grant honor awards, in accordance with HHS
            Instruction 451-1, that are in addition to those prescribed
            Departmentwide.

        e.  Recommend individuals or groups -to the Secretary for cash
            awards for special acts or services, inventions, and adopted
            employee suggestions in amounts over \$10,000 for
            individuals and groups.

        f.  Recommend individuals and groups to the Secretary for
            Presidential, Departmental, and non-HHS awards.

        g.  Grant Length-of-Service Recognition for less than 50 years
            of service.

        h.  Sign retirement certificates.

        i.  Grant Time Off Awards.

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    1.  With the exception of paragraphs 1a, c, e, and f above, the
        authorities delegated in paragraph 1 may be redelegate, with
        further redelegations authorized. STAFFDIVs may not redelegate
        the authority in l.b for amounts above \$1,500.

    2.  Regional Directors are hereby delegated the authority to grant
        the Regional Director\'s Citation to employees in or under a
        regional office or to individuals or organizations outside the
        Department. This authority may not be redelegate.

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A.  [Authority Retained]{.underline}\
    \
    The following authorities are retained by the Secretary:

    1.  Grant cash awards based on special acts or services, inventions,
        and adopted employee suggestions in amounts from \$10,001 to
        \$25,000 with prior approval of the OPM.

    2.  Recommend, in conjunction with the Director of OPM, the approval
        of an additional cash award of up to \$10,000 by the President.

    3.  Grant the following Departmental awards:

        a.  Secretary\'s Recognition Award

        b.  Secretary's Special Citation

        c.  Secretary\'s Certificate of Appreciation

        d.  Secretary\'s Letter of Appreciation

        e.  HHS Distinguished Public Service Award

        f.  HHS Medallion Seal Award

        g.  Secretary\'s Award for Distinguished Service

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    1.  Approve nominations for all Presidential and non-HHS awards
        officially submitted by the Department.

    2.  Grant Length-of-Service Recognition for 50 years or more.

    3.  Grant cash honorariums with honor awards.

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A.  [Prior Delegations]{.underline}\
    \
    This delegation supersedes all prior delegations. To the extent that
    previous redelegations of authority covering the above subjects are
    consistent with the provisions of this delegation, they may remain
    in effect until new redelegations are made under the authority of
    this delegation.

B.  [Effective Date]{.underline}\
    \
    This delegation is effective on the date of this transmittal.