[Federal Register Volume 62, Number 203 (Tuesday, October 21, 1997)]
[Notices]
[Pages 54604-54614]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-27796]


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DEPARTMENT OF COMMERCE

National Institute of Standards and Technology
[Docket No. 970811195-7195-01]


Alternative Personnel Management System (APMS) at the National 
Institute of Standards and Technology

AGENCY: National Institute of Standards and Technology, Department of 
Commerce.

ACTION: Notice of consolidation and republication of a demonstration 
project plan as a permanent system pursuant to Public Law 104-113.

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SUMMARY: This notice (1) consolidates the original plan and the two 
subsequent amendments into a single document for better understanding 
and ease of use; (2) documents the procedures by which the equivalent 
of locality-based comparability payments are applied at the National 
Institute of Standards and Technology (NIST); (3) specifies how to 
determine the General Schedule (GS) grade and rates of pay for 
employees who leave the NIST alternative personnel management system; 
(4) allows NIST to remove from the pay-for-performance system any 
positions not filled by career or career-conditional appointment; and 
(5) corrects, simplifies, and clarifies the project plan.

EFFECTIVE DATE: October 21, 1997.

FOR FURTHER INFORMATION CONTACT:
Allen Cassady at NIST on (301) 975-3031; Gail Redd at OPM on (202) 606-
1521.

SUPPLEMENTARY INFORMATION:

1. Background

    In accordance with Public Law 99-574, the NIST authorization act 
for 1987, OPM approved a demonstration project plan, ``Alternative 
Personnel Management System at the National Institute of Standards and 
Technology,'' and published the plan in the Federal Register on October 
2, 1987 (52 FR 37082). The project plan has been modified two times to 
clarify certain NIST authorities (54 FR 21331 of May 17, 1989, and 54 
FR 33790 of August 16, 1989), and to revise the performance appraisal 
and pay administration systems to better link pay with performance (55 
FR 19688 of May 10, 1990, and 55 FR 39220 of September 25, 1990).
    In a letter to NIST dated December 30, 1993, OPM offered two 
options to NIST for implementing locality pay beginning in January 
1994. Option 1 would have required implementation of locality pay in a 
manner as close as possible to the implementation for GS employees. 
Locality pay would have been separate from basic pay and would have 
counted as basic pay for the same limited purposes for which it is 
basic pay for GS employees (5 CFR 531.606(b)). Option 2 would allow 
NIST to incorporate the equivalent of locality pay into its own basic 
pay package.
    NIST chose Option 2. Adjustments in pay band ranges and in eligible 
employees' basic pay rates are made at the time of GS general and/or 
locality pay increases. Pay rates under the NIST Alternative Personnel 
Management System (NIST APMS) will be basic pay

[[Page 54605]]

for all purposes except those specifically stated in this notice.
    This notice formally changes the project plan to clarify how 
locality pay is applied at NIST. It also documents or clarifies any 
administrative change made by OPM under its authority on other pay-
related matters.

2. Public Law 99-574, National Bureau of Standards Authorization 
Act For Fiscal Year 1987

    Because many elements of the NIST APMS were originally required by 
Section 10 of Pub. L. 99-574, the complete text of Section 10 is 
presented here.

Demonstration Project Relating to Personnel Management

    Sec. 10(a)(1) The Office of Personnel Management and the National 
Bureau of Standards shall jointly design a demonstration project which 
shall be conducted by the Director of the National Bureau of Standards.
    (2) The demonstration project shall, except as otherwise provided 
in this section, be conducted in accordance with section 4703 of title 
5, United States Code, and shall be counted as a single project for 
purposes of subsection (d)(2) of such section.
    (3) Subject to subsections (f) and (g) of section 4703 of title 5, 
United States Code, the demonstration project shall cover any position 
within the National Bureau of Standards which would otherwise be 
subject to--
    (A) subchapter III of chapter 53 of title 5, United States Code, 
relating to the General Schedule;
    (B) subchapter VIII of chapter 53 of title 5, United States Code, 
relating to the Senior Executive Service; or
    (C) chapter 54 of title 5, United States Code, relating to the 
Performance Management and Recognition System.
    (b) Under the demonstration project, the Director of the National 
Bureau of Standards shall provide that--
    (1) the rate of basic pay for a position may not be less than the 
minimum rate of basic pay, nor more than the maximum rate of basic pay, 
payable for the pay band (as referred to in paragraph (3)) within which 
such position has been placed;
    (2) the minimum and maximum rates of basic pay for each pay band 
shall be adjusted at the times, and by the amounts, provided for under 
subsection (c);
    (3) positions shall be classified under a system using pay bands 
which shall be established by combining or otherwise modifying the 
classes, grades, or other units which would otherwise be used in 
classifying the positions involved;
    (4) employees shall be evaluated under a performance appraisal 
system which--
    (A) uses peer comparison and ranking wherever appropriate; and
    (B) affords appeal rights comparable to those afforded under 
chapter 43 of title 5, United States Code;
    (5) the rate of basic pay of each participating employee will be 
reviewed annually, and shall be adjusted on the basis of the appraised 
performance of the employee; and
    (B) subject to subsection (c)(4)(A)(i), the adjustment under 
subparagraph (A) in any year in the case of any employee whose 
performance is rated at the fully successful level or higher shall be 
at least the percentage adjustment taking effect under subsection 
(c)(3) in such year;
    (6) appropriate supervisory and managerial pay differentials (which 
shall be considered a part of basic pay) shall be provided;
    (7) performance-recognition bonuses, and recruitment and retention 
allowances, shall be awarded in appropriate circumstances, (but shall 
not be considered a part of basic pay);
    (8) there shall be an employee development program which includes 
provisions under which employees may, in appropriate circumstances, be 
granted sabbaticals, the terms and conditions of which shall be 
consistent with those applicable for members of the Senior Executive 
Service under section 3396(c) of title 5, United States Code (excluding 
paragraph (2)(B) thereof);
    (9) payment of travel expenses shall be provided for personnel to 
their first post of duty in the same manner as is authorized for 
members of the Senior Executive Service under section 5723 of title 5, 
United States Code, at the discretion of the Director; and
    (10) the methods of establishing qualification requirements for, 
recruitment for, and appointment to positions shall, at the discretion 
of the Director, include methods involving direct examination and 
hiring.
    (c)(1) For the purpose of this subsection, the term 
``compensation'' means the total value of the various forms of 
compensation provided, including--
    (A) basic pay;
    (B) bonuses;
    (C) allowances;
    (D) retirement benefits;
    (E) health insurance benefits;
    (F) life insurance benefits; and
    (G) leave benefits.
    (2) The Director of the National Bureau of Standards shall, by 
contract or otherwise, provide for the preparation of reports which, 
based on appropriate surveys--
    (A) shall include findings as to--
    (i) the extent to which, as of the commencement of the 
demonstration project, the overall average level of compensation 
provided with respect to positions under the demonstration project is 
deficient in comparison to the overall average level of compensation 
generally provided with respect to positions involving the same types 
and levels of work in the private sector; and
    (ii) with respect to each year thereafter, any net increase 
occurring during such year in the extent of the deficiency in the 
overall average level of compensation provided with respect to 
positions under the demonstration project, as compared to the overall 
average level of compensation generally provided with respect to 
positions involving the same types and levels of work in the private 
sector; and
    (B) shall recommend a single percentage by which basic pay for all 
positions under the demonstration project must be increased so that, 
when considered in conjunction with the other forms of compensation 
generally provided, any net increase determined under subparagraph 
(A)(ii) will be eliminated.
    (3) Whenever the Director of the National Bureau of Standards 
receives a recommendation under paragraph (2)(B), the Director--
    (A) shall increase the minimum and maximum rates of basic pay for 
each such pay band by the lesser of--
    (i) the percentage recommended; or
    (ii) the overall average percentage of the adjustment in the rates 
of pay under the General Schedule under section 5305 of title 5, United 
States Code, for the period involved; and
    (B) if and to the extent that funds are available for that purpose, 
may further increase those minimum and maximum rates--
    (i) to make up for any part of the difference between the 
respective percentages under subparagraph (A), if the percentage under 
subparagraph (A)(ii) is the lesser; and
    (ii) after making up for the entirety of any difference determined 
under clause (i) (including from any previous year), to eliminate any 
part of any remaining deficiency as originally determined under 
paragraph (2)(A)(i).
    (4)(A) Notwithstanding any other provision of this section--
    (i) the maximum rate of basic pay payable under any pay band may 
not exceed the rate of basic pay payable for level IV of the Executive 
Schedule; and
    (ii) the amount of basic pay, bonuses, and allowances paid during 
any fiscal

[[Page 54606]]

year to any employee participating in the demonstration project may 
not, in the aggregate, exceed the annual rate of basic pay payable for 
level I of the Executive Schedule.
    (B)(i) Any amount which is not paid to an employee during a fiscal 
year because of the limitation under subparagraph (A)(ii) shall be paid 
in a lump sum at the beginning of the following fiscal year.
    (ii) Any amount paid under this subparagraph during a fiscal year 
shall be taken into account for purposes of applying the limitation 
under subparagraph (A)(ii) with respect to such fiscal year.
    (5) Notwithstanding any other provision of this section, the 
demonstration project shall be conducted in such a way so that, with 
respect to the 12-month period beginning on October 1, 1986, the total 
cost to the Government relating to providing compensation to 
participating employees shall not exceed the total cost which would 
have resulted if this section has not been enacted.
    (6)(A) If the minimum rate of basic pay for a pay band, after an 
increase under paragraph (3)(A), exceeds the rate of basic pay payable 
to an employee whose position would otherwise be within such pay band, 
the employees's position may, notwithstanding subsection (b)(1), be 
placed in the next lower pay band.
    (B) Placement of a position in a lower pay band under subparagraph 
(A) shall not be considered a reduction in grade or pay for purposes of 
subchapter II of chapter 75 of title 5, United States Code, or a 
comparable provision under the project.
    (d)(1) The rate of basic pay for an employee serving in a position 
at the time it is converted to a position covered by the demonstration 
project may not be reduced by reason of the establishment of such 
project.
    (2)(A) Each employee referred to in paragraph (1) shall be paid--
    (i) in the case of an employee serving in a position under the 
General Schedule on the date the position becomes covered by the 
demonstration project, a lump-sum pro rata share of the equivalent of 
any within-grade increase which would have been due the employee under 
section 5335 of title 5, United States Code, computed as provided in 
subparagraph (B), and
    (ii) in the case of an employee serving in a position subject to 
chapter 54 of title 5, United States Code, on such date, a lump sum pro 
rata share of the equivalent of the employee's merit increase which 
would have been due under such chapter, computed as provided in 
subparagraph (B), taking into account the performance requirements 
applicable to such increase.
    (B) For purposes of subparagraph (A), the pro rata share of an 
equivalent increase referred to in such subparagraph shall be computed 
through the day before the date referred to in such subparagraph.
    (e)(1)(A) In carrying out section 4703(h) of title 5, United States 
Code, with respect to the demonstration project, the Office of 
Personnel Management shall provide that such project will be evaluated 
on an annual basis by a contractor. Such contractor shall be especially 
qualified to perform the evaluation based on its expertise in matters 
relating to personnel management and compensation.
    (B) The contractor shall report its findings to the Office in 
writing. After considering the report, the Office shall transmit a copy 
of the report, together with any comments of the Office and any 
comments submitted by the National Bureau of Standards, to--
    (i) the Committee on Post Office and Civil Service, and the 
Committee on Science and Technology, of the House of Representatives; 
and
    (ii) the Committee on Governmental Affairs, and the Committee on 
Commerce, Science, and Transportation, of the Senate.
    (2) The Comptroller General shall, not later than 4 years after the 
date on which the demonstration project commences, submit to each of 
the committees referred to in paragraph (1)(B) a final report 
concerning such project. Such report shall include any recommendations 
for legislation or other action which the Comptroller General considers 
appropriate.
    (f) The authority to enter into any contract under this section may 
be exercised only to such extent or in such amounts as are provided in 
advance in appropriated Acts.
    (g) The demonstration project shall commence not later than January 
1, 1988.
    After the initial five years of the project, OPM twice extended the 
project administratively. The first extension extended the project from 
December 30, 1992 through September 30, 1995. The second extension 
would have extended the project until September 30, 1998. However, the 
NIST personnel management demonstration project was extended 
indefinitely by Section 10 of the National Technology Transfer and 
Advancement Act of 1995 (Public Law 104-113, March 7, 1996):
Section 10. PERSONNEL
    The personnel management demonstration project established under 
section 10 of the National Bureau of Standards Authorization Act for 
Fiscal Year 1987 (15 U.S.C. 275 note) is extended indefinitely.

National Institute of Standards and Technology.
Robert E. Hebner,
Acting Director.

System Plan

    The NIST alternative personnel management system plan reads as 
follows.

An Alternative Personnel Management System To Improve the Ability of 
the National Institute of Standards and Technology to Attract Highly 
Qualified Candidates, Motivate Employees, and Retain Successful 
Performers

Introduction

Executive Summary

    The NIST APMS was designed by the National Institute of Standards 
and Technology, in cooperation with the U.S. Department of Commerce 
(DoC) and the Office of Personnel Management (OPM). The NIST APMS was 
built on the concepts of: (1) Market sensitivity; (2) performance; (3) 
administrative simplicity; (4) management flexibility and 
accountability; and (5) Broad applicability.
    The NIST APMS system was designed to (1) improve hiring and allow 
NIST to compete more effectively for high-quality researchers, through 
direct hiring, selective use of higher entry salaries, and selective 
use of recruiting allowances; (2) motivate and retain staff, through 
higher pay potential, pay-for-performance, more responsive personnel 
systems, and selective use of retention allowances; (3) strengthen the 
manager's role in personnel management, through delegation of personnel 
authorities; and (4) increase the efficiency of personnel systems, 
through installation of a simpler and more flexible classification 
system based on pay banding, through reduction of guidelines, steps, 
and paperwork in classification, hiring, and other personnel systems, 
and through automation.

Participating Organizations

    All sites of the National Institute of Standards and Technology 
participate in the NIST APMS. The two main sites are located at 
Gaithersburg, Maryland, which is also the headquarters of NIST, and at 
Boulder, Colorado. The two main sites are similar in employment 
profiles,

[[Page 54607]]

with the following exceptions: (1) about 85 percent of employees 
covered by the NIST APMS are located at the Gaithersburg site; and (2) 
all Operating Unit (OU) Directors are located in Gaithersburg. A small 
number of covered employees may from time to time work at sites other 
than Gaithersburg or Boulder.

Types and Numbers of Participating Employees

    The NIST APMS covers approximately 3150 NIST employees.

Labor Participation

    A few General Schedule employees at the Gaithersburg site are 
represented by the International Association of Firefighters (IAFF) and 
the International Association of Machinists and Aerospace Workers, AFL-
CIO; and at the Boulder site by the American Federation of Government 
Employees (AFGE). NIST consults and negotiates with these unions, as 
appropriate, in accordance with 5 U.S.C. 4703(f).

Senior Executive Service (SES) and ST-3104 Positions

    The personnel systems for SES positions (see 5 U.S.C. 3131-3136 and 
5 U.S.C. 5381-5385) did not change for the NIST APMS. SES 
classification, staffing, compensation, performance appraisal, awards, 
and reduction in force are based on standard SES methods. The personnel 
systems for ST-3104 positions (see 5 U.S.C. 3104 and 5376) changed only 
to the extent that ST-3104 positions are in the same performance 
appraisal, awards, and reduction in force systems as General Schedule 
positions. Classification, staffing, and compensation, however, did not 
change. Neither SES nor ST-3104 employees were subject to the pro rata 
share payouts upon conversion to the NIST APMS system. Pay adjustments 
for their positions under the NIST APMS are carried out in accordance 
with existing Federal rules pertaining to SES and ST-3104 pay 
adjustments.

General Schedule (GS) Positions

    The GS category no longer exists as an identified category under 
the NIST APMS. It is incorporated in the new career-path/pay-band 
system. The step increases of the General Schedule are replaced by the 
annual performance pay increases. Except as otherwise provided in the 
NIST APMS plan, laws and regulations pertaining to GS employees (e.g., 
overtime pay provisions) continue in force for all NIST APMS employees 
in the same way as they do for GS employees.

Position Classification

Introduction

    The objectives of the NIST classification system are to simplify 
the classification process, make the process more serviceable and 
understandable, and delegate decision-making authority and 
accountability to line managers.

Coverage

    All former General Schedule positions at NIST are included in the 
NIST APMS.

Career Paths

    A career path aggregates comparable occupations that have parallel 
career patterns and are suitable for similar treatment in staffing, 
classification, pay, and other personnel functions.
    There are four career paths at NIST:
    (a) Scientific and Engineering (ZP): research, policy, staff, and 
managerial positions in science, engineering, computing, and 
mathematics. Examples of occupational series in this career path are 
401--Biologist, 801--General Engineer, 830--Mechanical Engineer, 855--
Electronics Engineer, 1301--General Physical Scientist, 1310--
Physicist, 1320--Chemist, 1520--Mathematician, and 1530--Statistician.
    (b) Scientific and Engineering Technician (ZT): science and 
engineering support positions. Examples of occupational services in 
this career path are 332--Computer Operator, 802--Engineering 
Technician, 856--Electronics Technician, 1311--Physical Science 
Technician, and 1521--Mathemathics Technician.
    (c) Administrative (ZA): specialist positions in such fields as 
finance, procurement, human resources management, public information, 
technical information, accounting, and management analysis. Examples of 
occupational series in this career path are 080--Security Officer, 
201--Personnel Management Specialist, 340--Program Manager, 341--
Administrative Officer, 510--Accountant, 560--Budget Analyst, 1082--
Writer-Editor, and 1410--Librarian.
    (d) Support (ZS): clerical, assistant, secretarial, police, 
firefighter, and other support positions not fitting the definition of 
any of the other career paths. Examples of occupational series in this 
career path are 081--Firefighter, 203--Personnel Clerk/Assistant, 305--
Mail and File clerk, 318--Secretary, 525--Accounting Technician, 1105--
Purchasing Agent, 1106--Procurement Clerk/Assistant, 1141--Library 
Technician, and 2102--Transportation Clerk/Assistant.

Pay Bands

    Each career path is divided into five pay bands, which replace GS 
grades. The maximum rate of a pay band is step 10 of the highest GS 
grade in the band, including locality rates. When a special rate for 
one or more of the occupations in the band is higher than the 
applicable locality rate, NIST has the option of using the maximum 
applicable special rate to set the maximum rate of the band.
    For each regular pay band, there is a corresponding supervisory pay 
band for employees who receive supervisory pay differentials. The 
supervisory pay band has the same minimum rate as the non-supervisory 
band, but has a maximum rate 6 percent higher than the maximum rate of 
the non-supervisory band. Positions in the supervisory pay bands 
include positions with formal supervisory authority over at least three 
positions and other positions approved by the Personnel Management 
Board (PMB) on a case-by-case basis.
    The chart below shows the four NIST APMS career paths, the pay 
bands in each career path, and the relationship between pay bands and 
General Schedule grades.

                                         NIST Career Paths and Pay Bands                                        
----------------------------------------------------------------------------------------------------------------
              GS Grades                 1    2    3    4    5    6    7    8    9    10   11   12   13   14   15
----------------------------------------------------------------------------------------------------------------
             CAREER PATHS                                                                                       
(14) BANDS                                                                                                      
Scientific and Engineering...........                                                                           
(5)I                                                                                                            
(3)II                                                                                                           
(1)III                                                                                                          
(1)IV                                    V                                                                      
Scientific and Engineering...........                                                                           
(3)I                                                                                                            
(3)II                                                                                                           
(1)III                                                                                                          
(1)IV                                    V                                                                      
Administrative (ZA)..................                                                                           
(5)I                                                                                                            
(3)II                                                                                                           
(1)III                                                                                                          
(1)IV                                    V                                                                      
Support (ZS).........................                                                                           
(1)I                                                                                                            
(1)II                                                                                                           
(1)III                                                                                                          
(1)IV                                                                                                           
(1)V                                                                                                            
----------------------------------------------------------------------------------------------------------------


[[Page 54608]]

Occupational Series

    The General Schedule occupational series are retained. New 
occupational series may be added or deleted in response to programmatic 
needs. New or revised series may also be established.

NIST Classification Standards

    Each NIST classification standard describes each pay band in two 
factors: (1) general duties and responsibilities, and (2) knowledges, 
skills, and abilities. These two factors complement each other at each 
pay band in a career path and may not be separated in classifying a 
position. OPM classification standards are not used.

Position Descriptions

    Line managers follow an automated menu-driven process to classify 
positions and produce position descriptions.

Delegation of Classification Authority

    The NIST Personnel Management Board (PMB) oversees the delegation 
of classification authority to line managers. NIST will establish a 
plan to review the accuracy of classification decisions made by line 
managers and make periodic reports to the NIST Director. The 
Government-wide system of approval of SES and ST-3104 positions will be 
maintained.

Staffing

Introduction

    NIST uses a variety of staffing options to fill positions. Under 
all options, the recruiting and examining efforts are based at NIST. 
OPM registers are not used. These options include Direct Examination 
and Hiring, Agency-Based Staffing, Merit Assignment, and various 
noncompetitive placements. The NIST Office of Human Resources 
Management (OHRM) oversees all examining and hiring activity. Line 
managers participate actively in the process.

Direct Examination and Hiring

    NIST uses two direct examination and hiring authorities: Direct 
Hire Critical Shortage Occupations and Direct Hire Critical-Shortage 
Highly-Qualified Candidates. These vacancies are normally filled 
through direct recruiting by selecting officials, supplemented by a 
required search of the NIST Applicant Supply File.
Direct Hire: Critical Shortage Occupations
    NIST uses direct-hire procedures for categories of occupations 
which require skills that are in short supply. All occupations for 
which there is a special rate under the General Schedule pay system 
constitute a shortage category; all occupations at Band III and above 
in the ZP Career Path constitute a shortage category; and Nuclear 
Reactor Operator positions at Pay Band III and above in the ZT Career 
Path constitute a shortage category. Any position in these three 
shortage categories may be filled through direct-hire procedures.
Direct Hire: Critical Shortage Highly Qualified Candidates
    NIST uses direct-hire procedures for additional positions for which 
there is a shortage of highly qualified candidates. Candidates for 
positions at Band I or II of the ZP Career Path who have a bachelor's 
degree with at least a 2.9 GPA (on a 4.0 scale) or a master's degree 
constitute a shortage category; candidates for positions at Band I of 
the ZT Career Path who have at least a 2.9 GPA in a course of study of 
at least 2 years in an accredited college, junior college, or technical 
institute constitute a shortage category; and candidates for positions 
at Band II of the ZT Career Path who have at least a 2.9 GPA in 4 years 
of college study constitute a shortage category.

Agency-Based Staffing

    NIST uses agency-based staffing procedures to fill vacancies not 
covered by direct-hire or the NIST Merit Assignment Plan (MAP). 
Vacancies filled by agency-based procedures are advertised at a minimum 
through the automated nationwide OPM posting system.

Merit Assignment Plan (MAP)

    NIST uses its MAP to fill positions restricted to current or former 
Federal employees with competitive status. This plan is amended to 
include any NIST APMS flexibilities.

NIST Applicant Supply File

    NIST advertises the availability of job opportunities in direct-
hire occupations by continuous posting of the NIST Applicant Supply 
Bulletin on the OPM electronic job opportunity listing. NIST accepts 
applications for this file on an open-continuous bases for all direct-
hire authorities. NIST selecting officials may recruit directly for 
applicants, but any applicants they find must compete with applicants 
who apply through the Applicant Supply Bulletin and other applicants 
whose applications are stored in the Applicant Supply File.

Referral Procedures for Direct Examination and Hiring and Agency-Based 
Staffing Authorities

    NIST uses either direct referral or rating and ranking to refer 
applicants for vacancies under direct-hire and agency-based staffing 
authorities.
1. Direct Referral
    A qualified candidate may be referred directly without rating and 
ranking:
    a. when there are no more than three qualified candidates and no 
preference eligibles; or
    b. if the candidate is a preference eligible with a compensable 
service-connected disability of 10 percent or more (these preference 
eligibles are given absolute preference except when the position is at 
Band III or above in the Scientific and Engineering Career Path). 
Selecting officials may choose any of these preference eligibles when 
more than one are referred.
2. Rating and Ranking
    Rating and ranking (including veteran preference and ``rule-of-
three'' procedures) are used when the list of qualified candidates 
contains:
    a. more than three candidates; or
    b. two or more candidates including at least one preference 
eligible (except when direct referral of a 10-point veteran is made 
under 1b above).

Priority Placement

    NIST follows all Department of Commerce and OPM priority placement 
programs.

Paid Advertising

    NIST may use paid advertising as one of the first steps in 
recruitment without having to first try unpaid methods.

Private Sector Temporaries

    NIST uses private sector temporary help services as appropriate.

Probationary Period

    Probation under the NIST APMS follows current law and regulations, 
except when an employee in the ZP Career Path is required to serve a 
probationary period. The ZP probationary period is three years, except 
that a supervisor may end the probationary period of a subordinate ZP 
employee anytime after one year.

Qualification Standards

    The qualifications required for placement within a pay band and 
within a career path are based on the OPM Qualification Standards for 
General Schedule Positions, except that testing requirements are not 
used and the Superior Academic Criterion is

[[Page 54609]]

defined as a 2.9 GPA (on a 4.0 scale). The minimum qualifications for 
the occupation and for the GS grade corresponding to the lowest grade 
in the pay band apply. NIST may develop its own qualification standards 
based on current practices in the scientific, engineering, and computer 
science fields and to reflect modern curricula in recognized degree 
programs.

Recruitment and Retention Allowances

    NIST may grant recruiting and retention allowances in appropriate 
circumstances, not to exceed $10,000 or 25 percent of basic pay, 
whichever is greater. Decisions on allowances are based on market 
factors such as salary comparability and salary offer issues; 
relocation and dislocation issues; programmatic urgency; emerging 
technologies; turnover rates; special qualifications; and shortage 
categories or scarcity positions unique to NIST. All scientific, 
engineering, and other hard-to-fill positions are eligible. Recruitment 
and Retention Allowances are not considered part of basic pay.

Travel Expenses

    Travel and transportation expenses, advancement of funds, per diem 
expenses incident to travel, and/or relocation expenses may be provided 
to new hires in the same manner as is authorized in sections 5723, 
5724, 5724a, 5724b, and 5724c of title 5, U.S. Code. Recipients must 
sign service agreements indicating commitment to at least 12 months 
continued service.

Promotion

    A promotion is a change of an employee to (1) a higher pay band in 
the same career path, or (2) a pay band in another career path in 
combination with an increase in pay. To be eligible for promotion, an 
employee must have a current performance rating of Eligible. The time-
in-pay-band requirement for promotion eligibility is 52 weeks, with two 
exceptions: (1) an employee may be promoted from Band I and Band II in 
the Support Career Path without time restriction; and (2) an employee 
may be promoted from Band II to Band III in the Support Career Path 
without time restriction if the employee was not promoted from a Band I 
to a Band II position during the previous 52 weeks. (For pay provisions 
related to promotion, see ``Pay Administration.'')

Reduction In Force

Introduction

    NIST follows reduction-in-force procedures contained in law and 
regulation, with the following differences.

Link Between Performance and Retention

    An employee with an overall performance score in the top 10 percent 
of scores within a peer group (see ``Performance Evaluation and 
Rewards'' below) is credited with 10 additional years of service for 
retention purposes. The total credit is based on the employee's three 
most recent annual performance ratings of record received during the 4-
year period prior to an established cutoff date, for a potential total 
credit of 30 years. No reduction-in-force credit converts to this 
system from any other performance appraisal system.

Competitive Areas

    Each of the four career paths in each NIST local commuting areas is 
a separate competitive area--separate from the other career paths and 
separate from the competitive areas of other NIST employees.

Link Between Pay Bands and Grades

    OPM reduction in force regulations on assignments rights (5 CFR 
351.701) are applied to the NIST APMS by substituting ``one band'' for 
``three grades'' and ``two bands'' for ``five grades.'' OPM severance 
pay regulations (5 CFR 550.703) are applied to the NIST APMS by 
substituting ``one band'' for ``two grades'' and for ``two grade or pay 
levels.''

Pay Administration

Introduction

    The NIST APMS pay administration system provides NIST with the 
ability to attract and retain quality employees through pay setting 
flexibilities and pay for performance.

Pay for Performance

    Pay for performance has three components: (a) the NIST annual 
adjustment to basic pay; (b) annual performance pay increases; and (c) 
bonuses. The first component, the annual adjustment to basic pay, is 
set according to the subsections below referring to general and 
locality increases. The second component, performance pay increases, is 
set according to the procedures under ``Performance Evaluation and 
Rewards.'' The third component, bonuses, is composed of former cash 
awards.

Placement in a Lower Pay Band

    An employee whose performance rating is unsatisfactory does not 
receive the NIST annual adjustment to basic pay. Because the minimum 
pay rate for each pay band is increased each year by the amount of the 
NIST annual adjustment to basic pay, it is possible that the new 
minimum rate of a pay band will exceed the basic pay of an employee in 
that pay band who does not receive the NIST annual adjustment to basic 
pay due to unsatisfactory performance. When this happens, the employee 
is placed in the next lower pay band. This placement shall not be 
considered an adverse action under 5 U.S.C. 7512, nor shall grade 
(i.e., pay band) retention under 5 U.S.C. 5362 be applicable.

Supervisory Pay Differentials

    The original legislation authorizing the NIST demonstration project 
provided that ``appropriate supervisory and managerial pay 
differentials (which shall be considered a part of basic pay) shall be 
provided.'' The differential does not apply to SES and ST-3104 
positions.
    Supervisors who formally supervise three or more subordinates and 
others approved on a case-by-case basis by the PMB receive supervisory 
differentials. The amounts of the differentials are up to 6 percent of 
base salary (see ``Pay Bands'' above for a description of the 
supervisory pay bands and their maximum rates).
    Upon conversion of NIST supervisors to the NIST APMS, all eligible 
positions are placed in the supervisory pay bands. The incumbents of 
these positions are converted at their basic pay (including special 
rates or locality pay) at the time of conversion, except for ZP 
supervisors, who begin receiving the added differential upon 
conversion.
    There are two types of supervisory differentials. The first type 
applies to new supervisors in the Scientific and Engineering (ZP) 
Career Path only. The amount of this type of differential is fixed at 3 
percent for supervisors below division chief and 6 percent for division 
chiefs and equivalent. The second type applies to all bands in all 
career paths where there are supervisors. Supervisors in these bands 
may be eligible for higher band ceilings (up to 3 or 6 percent higher 
than the normal pay band ceiling) which they may reach through pay for 
performance.
    The granting of a differential is not considered a promotion or a 
competitive action. The differential is canceled when an employee's 
supervisory responsibilities are discontinued. The cancellation of a 
supervisory differential does not constitute an adverse action and 
there is no right of appeal under 5 U.S.C. Chapter 75.

Pay and Compensation Ceilings

    The maximum rate for a pay band (excluding special pay bands

[[Page 54610]]

established to allow for the supervisory pay differential) is equal to 
the maximum rate--GS rate, locality rate, or special rate, as 
applicable--payable to GS employees for the grades corresponding to the 
pay band. An employee's basic pay may not exceed the maximum rate of 
the employee's pay band (including a supervisory pay band), except for 
employees receiving retained rates of pay.
    An employee's rate of basic pay payable under any pay band may not 
exceed the rate of basic pay payable for Level IV of the Executive 
Schedule. An employee's aggregate monetary compensation for a calendar 
year may not exceed the basic rate of pay for Level I of the Executive 
Schedule, as required by 5 U.S.C. 5307 and OPM regulations in subpart B 
of 5 CFR 530.

Locality Pay Options

    On December 30, 1993, OPM approved the extension of locality pay to 
the NIST demonstration project. Two options were made available.
    Option 1 would have required implementation of locality pay in a 
manner as consistent as possible with implementation for GS employees. 
Locality pay would have been separate from basic pay and would have 
counted as basic pay for the same limited purposes for which it is 
basic pay for GS employees (5 CFR 531.606(b)). All employees would have 
been eligible for locality pay adjustments regardless of performance 
rating. Employees in pay bands affected by special rates would have 
received full locality adjustments if their pay were no higher than the 
GS step 10 rate of the highest GS grade within the band, but if their 
pay were higher than that step 10 rate, they would have received an 
adjustment that would have increased their pay to no higher than the GS 
locality rate for step 10 (i.e., GS step 10 rate plus applicable 
locality payment).
    Option 2 allows implementation of locality pay as basic pay, as an 
increase to the bonus pool, or a combination of the two. If applied as 
basic pay, the locality adjustment would be basic pay for all purposes 
except as otherwise provided in this plan. The locality adjustment 
would be applied to the minimum and maximum rates of each pay band. For 
pay bands affected by special rates, the maximum rate would be the 
higher of the special rate and the locality rate. A locality adjustment 
may be applied to an eligible employee's basic pay only to the extent 
that it does not cause the employee's basic pay to exceed the maximum 
rate of the pay band.
    NIST selected option 2 and has implemented locality pay as basic 
pay. However, NIST may change its selection after sufficient internal 
notice toemployees.

Effect of General and Locality Pay Increases on Pay Bands

    The minimum and maximum rates of each pay band will be increased at 
the time of a general pay increase under 5 U.S.C. 5303 and/or a 
locality pay increase under 5 U.S.C. 5304 or 5304a so that they equal 
the new locality-adjusted minimum and maximum rates of the grades 
corresponding to the pay band. The maximum rates of bands set according 
to special rates, however, may exceed this amount to the extent 
necessary to equal the 10th step of the appropriate special rate scale 
if that rate is higher.

Effect of General and Locality Pay Increases on Individual Pay

    Only employees with a current performance rating of ``eligible'' 
may receive an increase in their basic pay at the time of pay band 
adjustments. This increase in basic pay will reflect any applicable 
general and/or locality pay increase for General Schedule employees. 
The increase in basic pay for eligible employees whose basic pay is at 
the ceiling of their pay band will equal the increase in the ceiling.
    The basic pay increase for eligible employees whose basic pay is 
below the ceiling of their band will be calculated by applying two 
factors to the employee's rate of pay. One factor is the general 
increase factor representing the increase in General Schedule rates 
under 5 U.S.C. 5303 (e.g., 1.02 if the general increase is 2 percent). 
The second factor is the locality pay increase factor, which is derived 
by dividing the newly applicable locality pay percentage factor by the 
formerly applicable locality pay percentage factor. (For example, if 
the locality payment percentage for an area increased from 4.23 percent 
to 5.48 percent, the locality pay increase factor would be 1.0548 
divided by 1.0423, or approximately 1.012.) Thus, the new rate of basic 
pay would be calculated using the following formula:
[GRAPHIC] [TIFF OMITTED] TN21OC97.009

    However, a basic pay increase will be applied only to the extent 
that it does not cause an employee's basic pay to exceed the ceiling of 
the applicable pay band.

Basic Pay

    Employees covered by the NIST APMS do not have separate basic pay 
rates and locality pay rates, as do General Schedule employees. They 
have a basic pay rate only, which reflects any general increases and/or 
locality adjustments calculated by the above formula. NIST APMS basic 
pay rates are basic pay for all purposes, except as specifically 
provided in the NIST APMS plan.

Pay Setting Upon Promotion

    The new basic pay rate upon promotion may be set at any level in 
the new pay band (if the move is to a different career path, any pay 
band in the new career path would be considered a ``new pay band''), 
except that the minimum pay increase upon promotion is 6 percent.

Pay Setting for New Hires

    The setting of initial salaries within pay bands for new appointees 
will be flexible, particularly for hard-to-fill positions in the 
scientific and engineering career path.

Private Sector Compensation Reports

    The Institute will arrange for the preparation of reports that 
include findings on compensation for private sector positions. NIST 
will consider these findings when making NIST pay decisions.

Conversion of NIST Employees From the General Schedule to the NIST APMS 
System

    For NIST employees being converted from the GS pay system to the 
NIST APMS, GS grades will translate directly to the NIST APMS's career-
path and pay-band structure. NIST employees will be converted at their 
current highest rate under the GS pay system (i.e., highest of locality 
rate or special rate or similar rate) at the time of conversion, except 
for supervisors in the Scientific and Engineering Career Path who 
qualify for a supervisory/

[[Page 54611]]

managerial pay differential upon conversion. No one's salary will be 
reduced as a result of the conversion. When conversion of a NIST 
employee into the NIST APMS is accompanied by a geographic move, the 
employee's GS pay entitlements (including any locality rate or special 
rate) in the new area will be determined before converting the 
employee's pay to the NIST APMS pay system.
    At the time of conversion, each converted NIST employee will be 
given a lump-sum cash payment for the time credited to the employee 
toward what would have been the employee's next within-grade increase. 
The payment for a General Schedule employee will be computed by (1) 
calculating the ratio of (a) the number of days the employee will have 
spent in the employee's current rate through the day prior to the day 
of conversion, to (b) the total number of days in the employee's 
current waiting period for a regular within-grade increase (364, 728, 
or 1092 days), and (2) multiplying that ratio by the dollar value of 
the employee's next within-grade increase, as in effect at the time of 
conversion.

Movements of GS Employees From Other Organizations to the NIST APMS 
System

    GS employees can move into the NIST APMS from other organizations 
through transfer, reassignment, promotion, or new appointment. When the 
movement is by lateral transfer or lateral reassignment, the employee's 
GS grade will translate directly to the NIST APMS's career-path/pay-
band structure and the employee's rate of basic pay under the NIST APMS 
will equal his or her current highest rate under the GS pay system 
(i.e., highest of locality rate or special rate or similar rate), 
except for the addition of a supervisory differential if the position 
is a supervisory position in the Scientific and Engineering Career 
Path. When a lateral transfer or lateral reassignment is accompanied by 
a geographic move, the employee's GS pay entitlements (including any 
locality rate or special rate) in the new area will be determined 
before converting the employee's pay to the NIST APMS pay system. When 
the movement is by new appointment, promotion, reassignment with pay 
adjustment (through merit assignment plan competition), or transfer to 
``higher grade'' (i.e., to a band higher than the band that corresponds 
to the employee's current GS grade) the new pay rate is set according 
to NIST APMS pay setting flexibilities for new hires and promotions.

Pay Setting Upon Movement of a NIST Employee to a Different Pay Area

    NIST employees who move (voluntarily or involuntarily) from one 
geographic area to another within NIST will have their pay adjusted to 
account for any change in the pay band maximum rates between the two 
areas. This adjustment ensures that the employee's relative position in 
the pay band (measured as a percentage of the pay band maximum rate) 
will be maintained upon movement. The pay rate in the new area will be 
derived using the following formula:
[GRAPHIC] [TIFF OMITTED] TN21OC97.010

    The new pay rate is calculated before any other simultaneous pay 
action (e.g., general pay adjustment or promotion effective on the same 
date).
    Any reduction in pay solely attributable to a movement from one pay 
area to a lower-paying area shall not be considered a reduction in 
basic pay under the adverse action provisions of 5 U.S.C. 7512(4) or 
under the pay retention provisions of 5 U.S.C. 5363. Nor shall such 
action be considered a reduction in basic pay under the pay retention 
provisions of 5 U.S.C. 5363. (The employee retains the right to grieve 
or file a complaint regarding a geographic reassignment if there is an 
allegation of a violation of nondiscrimination statutes or a prohibited 
personnel practice.)

Grade and Pay Retention

    Grade and pay retention follow current law and regulations, except 
as allowed by specific waiver (e.g., substitute ``career path and 
band'' for ``grade''). Specific waivers are listed in the section 
below, titled, ``Authorities and Waiver of Laws and Regulations 
Required''.

Severance Pay

    OPM severance pay regulations (5 CFR 550.703) are applied to the 
NIST APMS by substituting ``one band'' for ``two grades'' and for ``two 
grade or pay levels.''

Performance Evaluation and Rewards

Introduction

    The performance evaluation system provides the basis for decisions 
on performance ratings, performance pay increases, bonuses, and other 
performance related actions. The performance year beings October 1 and 
ends September 30. However, an employee's performance overall or on a 
single element may be evaluated at any time that adequate information 
for an evaluation exists.

Coverage

    All employees covered by the NIST APMS are covered by the APMS 
performance evaluation and rewards system, except the NIST may remove 
from the system any position not filled by career or career conditional 
appointment. ST-3104 employees have their performance evaluated under 
the structure of the performance evaluation system and may receive 
bonuses, but do not receive performance pay increases. Members of the 
Senior Executive Service remain under the DoC-NIST SES performance 
appraisal, pay, and bonus system.

Performance Plans

    Performance plans are developed each year by supervisors with input 
from employees. Critical performance elements are established for each 
position (all elements are critical). The supervisor weights each 
element so that the total weight of all elements is 100 points. 
Benchmark performance standards define the range of performance. A 
supervisor may add supplemental standards to a performance plan to 
further elaborate the benchmark performance standards.

Mid-Year Review

    A required mid-year review addresses mid-year accomplishments, 
performance successes and deficiencies, and any need for performance 
plan modifications. Additional reviews may be held as needed.

Performance Appraisal

    Performance appraisals bring supervisors and employees together to 
discuss performance and accomplishments during the performance year. 
The appraisals lead to decisions by supervisors and pay pool managers 
on performance scores, performance ratings, performance pay increases, 
and bonuses. Performance appraisal is scheduled for the final

[[Page 54612]]

weeks of the performance year, though at any time of the year a 
supervisor may place an employee on a performance improvement plan, 
assign an unsatisfactory rating if performance is still unsatisfactory, 
and take appropriate action.

Performance Ratings

    The NIST ARMS performance ratings are Eligible (for performance pay 
increase, bonus, and annual adjustment to basic pay) and 
Unsatisfactory. Eligible covers the same performance range as the 
former ratings of Marginal, Minimally Successful, Fully Successful. 
Commendable, and Outstanding. Unsatisfactory covers the same 
performance as the former ratings of Unsatisfactory and Unacceptable. 
An employee whose performance is unsatisfactory is placed on a 
performance improvement plan and give an opportunity to improve before 
a final rating is assigned.

Performance Scores

    Each element is evaluated individually against the benchmark 
performance standards and any supplemental standards. If a single 
element in an employee's plan is rated Unsatisfactory, the overall 
rating is Unsatisfactory and there is no performance score. If all 
elements meet at least the minimally acceptable benchmark, the overall 
rating is Eligible. Rating Officials score the performance of employees 
rated Eligible on a 100-point scale, which corresponds to the 100-point 
element weight scale. An individual element score may be as high as the 
weight of that element. The total performance score is the sum of the 
element scores. A perfect score on each element would produce a total 
score of 100 points.

Performance Ranking

    Employees are ranked, by performance score, within a peer group. A 
peer group may involve no more than one career path, but may be 
otherwise organized by any combination of organization, occupation, pay 
band, or appointment type. Rating Officials rank their own employees, 
then Pay Pool Managers interleave the rankings of subordinate Rating 
Officials to produce peer group rankings at the pay pool level. A Pay 
Pool Manager is a line manager who manages his or her organization's 
pay increase and bonus fund and has final decision authority over the 
performance scores, performance pay increase, and bonuses of 
subordinate employees.

Performance Pay Decisions

    The Performance Pay Table divides each pay band into three segments 
of intervals. Each interval is linked to a range of potential 
percentage pay increases beginning at zero and progressing to a maximum 
percentage pay increase. The maximum performance pay increase an 
employee may receive, therefore, depends on the interval into which the 
employee's salary falls. The Pay Pool Manager maker a performance pay 
decision for each employee in a peer group, based on the Pay Pool 
Manager's ranking and the pay increase ranges in the Performance Pay 
Table. Within a peer group, an employee may not receive a higher 
proportion-of-range than a higher-ranking employee or a lower 
proportion-or-range than a lower-ranking employee.

Performance Bonuses

    Bonuses are the only cash awards directly linked to the NIST APMS 
performance appraisal system, and are awarded at the ended of the 
performance year in conjunction with decisions on performance pay 
increases. A pay Poll Manager may award a bonus to any employee with an 
Eligible rating.

Actions Based on Unsatisfactory Performance

    When an employee's final rating or performance on a single element 
is Unsatisfactory (after an opportunity to improve performance), NIST 
may take action to reassign or remove the employee, or place the 
employee in a lower band, in accordance with performance action 
provisions in law and regulation.

Employee Development

    The objective of NIST's Employee Development Program is to develop 
the competence of employees for maximum achievement of Institute goals 
and objectives. The NIST APMS legislation mandates the continuation of 
an employee development program including, in appropriate 
circumstances, a sabbatical program. The NIST APMS sabbatical program 
is consistent with the terms and conditions of the SES sabbatical 
program. It covers all career appointees under the NIST APMS have a 
least seven years of Federal service and a current performance rating 
of Eligible.

Evaluation

    Periodic evaluations focus on human resource management issues. 
Evaluation criteria are derived from NIST APMS objectives, such as the 
objective to compete more effectively for high-quality staff. 
Evaluations are based on personnel records, collected data, and the 
results of employee surveys.

Costs

    Although the NIST APMS legislation does not require budget 
neutrality, NIST has set for itself an objective to control total 
compensation costs associated with the NIST APMS. NIST maintains total 
compensation during the NIST APMS at the level it would have reached 
under the current Government-wide system. The procedure permits changes 
in NIST expenditures which result from legislatively mandated program 
changes and changes in Federal pay and benefits. NIST may offset 
selected salary increases with savings by reducing turnover, 
eliminating unnecessary overhead, and cutting other personnel costs. 
NIST measures its adherence to cost control by preparing budget 
estimates based on prescribed Federal Budget processes and monitoring 
actual spending under the NIST APMS against this budget estimate.

Conversion or Movement From a NIST APMS Position to a General 
Schedule Position

    If a NIST APMS employee is moving to a General Schedule (GS) 
position, the following procedures will be used to convert the 
employee's APMS pay band to an equivalent GS grade and the employee's 
APMS rate of pay to equivalent GS rates of pay. The converted GS grade 
and rates of pay must be determined before movement out of the APMS and 
any accompanying geographic movement, promotion, or other simultaneous 
action. For lateral reassignments and lateral transfers, the converted 
GS grade and rates of pay will become the employee's actual GS grade 
and rates of pay, unless immediately affected by a simultaneous 
geographic movement or another pay action. For non-lateral transfers, 
promotions, and other actions, the converted GS grade and rates of pay 
will be deemed to be the employee's grade and rates of pay at the time 
of movement out of the APMS and will be used in applying applicable pay 
setting rules (e.g., promotion rules).
    1. 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 NIST APMS basic rate of pay is compared with step 
4 rates in the highest applicable GS rate range (including a rate range 
in the GS base schedule, a rate range in the applicable locality rate 
schedule, or a rate range in

[[Page 54613]]

a special rate schedule for the employee's occupation). If the series 
is a two-grade interval series, only odd-numbered grades are considered 
below GS-11.
    b. If the employee's pay 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 pay rate is lower than the applicable step 4 
rate of the highest grade, the pay rate is compared with the step 4 
rate of the second highest grade in the employee's pay band. If the 
employee's pay rate equals or exceeds step 4 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 rate of basic 
pay equals or exceeds the applicable step 4 of the grade. The employee 
is then converted at that grade. If the employee's rate of pay is below 
the step 4 rate of the lowest grade in the band, the employee is 
converted to the lowest grade.
    e. Exceptions: (1) If the employee's pay 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 in the 
band (i.e., between step 1 and step 4), then the employee shall be 
converted to that next higher applicable grade; (2) An employee will 
not be converted to a lower grade than the grade held by the employee 
immediately preceding a conversion, lateral reassignment, or lateral 
transfer into the NIST APMS, unless since that time the employee has 
undergone a reduction in band; (3) In Band I of the ZP and ZA Career 
Paths, students without a bachelor's degree or comparable experience 
are converted no higher than GS-4.
    2. Pay-Setting Provisions: An employee's pay within the converted 
GS grade is set by converting the NIST APMS rate to GS rates 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 
out of the NIST APMS.
    b. An employee's NIST APMS rate is converted to a rate in the 
highest applicable rate range for the converted GS grade (including a 
rate range in the GS base schedule, a rate range in the applicable 
locality rate schedule, or a rate range in a special rate schedule for 
the employee's occupation).
    c. If the highest applicable rate range is a locality pay rate 
range, the NIST APMS 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 rate of basic 
pay is 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 for which the employee's 
higher locality rate is not basic pay.)
    d. If the highest applicable rate range is a special rate range, 
the NIST APMS 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 rate of basic pay will be the GS rate 
corresponding to the converted special rate (i.e., same step position).
    e. Exception: If an employee's NIST APMS of rate exceeds the 
maximum rate of the highest applicable rate range upon conversion to 
the General Schedule the affected employee's NIST APMS rate will be 
converted to a retained rate under 5 U.S.C. 5363. If an employee is 
entitled to a special rate under the General Schedule, the NIST APMS is 
converted directly to a retained rate. If an employee is only entitled 
to locality pay under the General Schedule, this retained rate is 
derived by dividing the NIST APMS rate by the applicable locality pay 
factor (i.e., 1 plus the locality payment percentage). Thus, the 
locality-adjusted retained rate will equal the NIST APMS rate the 
employee had been receiving before conversion. Since the employee's 
total rate of pay is not reduced upon conversion, this change to 
converted rates under the General Schedule will not be considered a 
reduction in basic pay under 5 U.S.C. 5363 or 7512.

NIST APMS Revisions

    Modifications must be made from time to time as experience is 
gained, results are analyzed, and conclusions are reached on how the 
system is working. Minor procedural modifications of this published 
NIST APMS plan within already existing waivers may be made by the NIST 
Director with appropriate notice (e.g., employee, OPM and/or Federal 
Register notice). No new waivers from law or regulation may be added.

NIST APMS Management and Oversight

    In accordance with the original NIST project legislation, the 
project is ``conducted by the Director of the National Bureau of 
Standards'' (now NIST). The Director has delegated management and 
oversight of the NIST APMS to the Personnel Management Board (PMB), 
whose members and staff are appointed by the Director. The PMB is the 
NIST body to manage, evaluate, and make policy and procedural changes 
to NIST APMS systems when needed. When necessary, the PMB interprets 
and clarifies NIST APMS policy. The PMB establishes the management and 
administrative structures for running and evaluating the NIST APMS and 
oversees the delegations of authorities to managers, supervisors, and 
management bodies, including the withdrawal of authority when 
warranted. The PMB has the authority to make exceptions to normal NIST 
APMS procedures on a case-by-case basis when it believes an exception 
is warranted. The PMB also has the authority to establish itself as the 
approving body for any type of NIST APMS personnel action for which 
NIST has authority.

Authorities and Waiver of Laws and Regulations Required

    Public Law 99-574 gave the National Institute of Standards and 
Technology (NIST) the authority to experiment with several specific 
personnel system innovations which are otherwise prohibited by law and 
regulations. In addition to the authorities granted by the original 
NIST project legislation, the following waivers of law and regulation 
are included:

Title 5, U.S. Code

    Section 5304, Locality-based comparability payments.
    Section 5333, Minimum rate for new appointments.
    Section 5753-5754 except that relocation bonuses under section 5753 
continue to apply.
    Subchapter VI of Chapter 53 Grade and Pay Retention, (To the extent 
necessary to allow the following modifications: (1) Pay retention does 
not apply to reductions in pay caused solely by geographic movement; 
and (2) pay retention does not apply to conversions to the General 
Schedule as long as the employee's total rate of pay is not reduced.)
    Section 7512(4), Adverse actions, (To the extent necessary to allow 
the following modifications: (1) Exclude reductions in pay that are 
solely due to recomputation upon geographic movement; and (2) exclude 
conversions to the General Schedule that do not result in a reduction 
in the employee's total rate of pay.)

[[Page 54614]]

Title 5, Code of Federal Regulations

    Sections 315.801 Probationary period; when required, (waived only 
for positions in the Scientific and Engineering Career path)
    Section 315.802 Length of probationary period, (waived only for 
positions in the Scientific and Engineering Career path)
    Section 351.401 Determining Retention Standing.
    Section 351.402 Competitive area in RIF.
    Section 351.403 Competitive level in RIF.
    Section 351.504 (a) and (d) Credit for Performance.
    Section 351.701 Assignment involving displacement.
    Section 531.203 Minimum rate for new appointments.
    Part 575, Subpart A Recruitment Bonuses.
    Part 575, Subpart C Retention Allowances.
[FR Doc. 97-27796 Filed 10-20-97; 8:45 am]
BILLING CODE 3510-13-M