13548 Federal Register / Vol. 89, No. 36 / Thursday, February 22, 2024 / Notices 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

[Docket ID: DoD–2022–OS–0117] 

Personnel Demonstration Project at 

the Army Futures Command Science 

and Technology Reinvention 

Laboratory (STRL) 

AGENCY: Under Secretary of Defense for 

Research and Engineering (USD(R&E)), 

Department of Defense (DoD). 

ACTION: Personnel demonstration project 

notice. 

SUMMARY: This Federal Register Notice 

(FRN) serves as notice of the adoption 

of STRL personnel demonstration 

project flexibilities by an STRL 

comprised of certain organizations 

within the U.S. Army Futures Command 

(AFC), known collectively as the AFC 

STRL. The organizations comprising the 

AFC STRL are the U.S. Army Futures 

Command Headquarters and 

Headquarters Components (AFC HHC); 

the Futures and Concepts Center (FCC); 

Cross Functional Teams (CFTs); The 

Research and Analysis Center (TRAC); 

the Combat Capabilities Development 

Command (CCDC) Headquarters (also 

known as DEVCOM Headquarters); and 

the DEVCOM Analysis Center (DAC). 

The AFC STRL will adopt with some 

modifications, personnel demonstration 

project flexibilities implemented by the 

Combat Capabilities Development 

Command (CCDC) Army Research 

Laboratory (ARL); CCDC Command, 

Control, Communications, Computers, 

Cyber, Intelligence, Surveillance, and 

Reconnaissance Center (C5ISR); the 

Army Research Institute for the 

Behavioral and Social Sciences (ARI); 

the CCDC Armament Center (AC); the 

Technical Center (TC), U.S. Army Space 

and Missile Defense Command 

(USASMDC); and the Joint Warfare 

Analysis Center (JWAC). Most 

flexibilities and administrative 

procedures are adopted without 

changes. However, modifications were 

made when necessary to address 

specific management and workforce 

needs. In addition, changes were made 

based on current law, best practices, and 

administrative guidance. 

DATES: Implementation of this 

demonstration project will begin in no 

earlier than February 22, 2024. 

FOR FURTHER INFORMATION CONTACT: 

• AFC STRL: Marlowe Richmond, 

(571) 588–1219, 

marlowe.richmond.civ@army.mil. 

• Office of Under Secretary of 

Defense (Research and Engineering), 

Defense Research Enterprise Office: Dr. 

James B. Petro, (571) 286–6265, 

James.B.Petro.civ@mail.mil. 

SUPPLEMENTARY INFORMATION: As 

authorized by section 4121 of title 10, 

United States Code (U.S.C.), the 

Secretary of Defense may carry out 

personnel demonstration projects at 

DoD laboratories designated as DoD 

STRLs. On May 13, 2021, certain 

elements of AFC were designated as a 

single STRL, known as the AFC STRL. 

The AFC STRL will administer a single 

personnel demonstration project, 

hereinafter referred to as the 

‘‘Modernization Personnel 

Demonstration Project’’ or ‘‘Mod 

Demo,’’ for these AFC organizations: the 

AFC Headquarters and Headquarters 

Components, the Futures and Concepts 

Center, Cross-Functional Teams (CFTs), 

the Research and Analysis Center, and 

the U.S. Army Combat Capabilities 

Development Command (DEVCOM) 

Headquarters offices. In addition, the 

DEVCOM Data and Analysis Center 

(DAC), which is partially aligned with 

the Army Research Laboratory STRL, 

will be realigned, in its entirety, as part 

of the AFC STRL. The remaining 

organizations within AFC will continue 

to operate as independent STRLs under 

their own personnel demonstration 

project authorities. 

Through the USD(R&E), the Secretary 

exercises the authorities of the Director, 

Office of Personnel Management (OPM), 

under 5 U.S.C. 4703 to conduct 

personnel demonstration projects at 

DoD laboratories designated as STRLs. 

All STRLs authorized pursuant to 10 

U.S.C. 4121 may use the provisions 

described in this FRN, when 

implementing these flexibilities as part 

of an approved personnel demonstration 

project plan published in an FRN and 

after fulfilling any collective bargaining 

obligations. Each STRL will establish 

internal operating procedures (IOPs) as 

appropriate. 

1. Background 

Many studies have been conducted 

since 1966 on the workforce quality of 

the laboratories and associated 

personnel. Most of the studies 

recommended improvements in civilian 

personnel policy, organization, and 

management. Pursuant to the authority 

provided in 10 U.S.C. 4121, several DoD 

STRL personnel demonstration projects 

have been implemented. The 

demonstration projects are ‘‘generally 

similar in nature’’ to the Department of 

Navy’s China Lake Personnel 

Demonstration Project. The terminology, 

‘‘generally similar in nature,’’ does not 

imply an emulation of various features, 

but, rather, it implies a similar 

opportunity and authority to develop 

personnel flexibilities that significantly 

increase the decision authority of 

laboratory commanders and/or 

directors. 

With the assistance of other DoD 

STRLs, including the independent 

STRLs within AFC, and experts from 

across DoD, the AFC STRL operational 

planning team conducted a thorough 

review of STRL personnel practices, 

laws, regulations, and guidance to 

identify potential flexibilities that 

would allow the AFC STRL to create a 

contemporary, flexible personnel 

management system to attract, motivate, 

train, and retain a top-performing 

science, technology, and modernization 

workforce. In addition to existing 

flexibilities available to all DoD STRL, 

new flexibilities and modifications are 

being proposed for MoD Demo 

following study and analysis by the AFC 

STRL operational planning team. 

Although the organizations 

comprising the AFC STRL are 

components of the umbrella AFC 

organization that is responsible for 

modernizing the Army, the varied 

composition of the AFC STRL 

modernization workforce, including 

headquarters personnel, analysts, 

integrators, technology and concept 

creators, and traditional Science & 

Technology (S&T) innovators, requires 

significant personnel management 

flexibility. As a result, the proposed 

AFC STRL Mod Demo plan incorporates 

multiple IOPs, decentralized lines of 

authority, and new flexibilities adapted 

from other STRL demonstration 

projects. 

The AFC STRL Mod Demo plan 

includes: 

(1) Changes to appointment 

authorities, hiring rules, and 

qualification standards; 

(2) Changes to pay setting rules and 

regulations; 

(3) Pay banding and simplified job 

classification; 

(4) Science, Technology, Engineering, 

and Mathematics (STEM) Student 

Employment Program (SSEP) and 

Accelerated Intern Compensation; 

(5) Sabbaticals; 

(6) Substitution for the Defense 

Performance Management and 

Appraisal Program (DPMAP); 

(7) Academic degree, certificate, and 

critical skills training; 

(8) Senior Scientific Technical 

Manager (SSTM) positions; 

(9) Changes to workforce shaping 

rules, such as Reduction-in-Force (RIF), 

Voluntary Early Retirement Authority 

(VERA), and Voluntary Separation 

Incentive Program (VSIP); 


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(10) Voluntary Emeritus and Expert 

Program; 

(11) Improved incentives; and 

(12) Extended Probationary Periods. 

Many aspects of a demonstration 

project are experimental. Modifications 

may be made from time to time as 

experience is gained, results analyzed, 

and conclusions reached on how the 

system is working, in accordance with 

the provisions of Department of Defense 

Instruction (DoDI) 3201.05, 

‘‘Management of Science and 

Technology Reinvention Laboratory 

Personnel Demonstration Projects’’ 

(available at https://www.esd.whs.mil/ 

Portals/54/Documents/DD/issuances/ 

dodi/320105p.PDF?ver=e_

ePssSOULpXxcH2PcRhwA%3d%3d). 

2. Overview 

The AFC STRL will adopt flexibilities 

implemented by the following STRL 

Personnel Demonstration Project plans: 

CCDC AC, 76 FR 3744, January 20, 2011; 

ARI, 85 FR 76038, November 27, 2020; 

CCDC ARL, 63 FR 10680, March 4, 

1998; CCDC C5ISR, 66 FR 54872, 

October 30, 2001; JWAC, 85 FR 29414, 

May 15, 2020; and USASMDC–TC, 85 

FR 3339, January 21, 2020. 

Adoption of STRL personnel 

demonstration project flexibilities will 

enable the AFC STRL to achieve the best 

workforce for its modernization 

mission, adjust the workforce for 

change, improve workforce quality, and 

allow the AFC STRL to acquire and 

retain an enthusiastic, innovative, and 

highly educated and trained workforce 

for Army modernization. The purpose of 

the project is to demonstrate that the 

effectiveness of DoD organizations can 

be enhanced by allowing greater 

managerial control over personnel 

functions and, at the same time, expand 

the opportunities available to employees 

through a more responsive and flexible 

personnel system. Additionally, because 

AFC STRL component organizations are 

geographically dispersed to highly 

competitive recruitment areas, 

implementation of the AFC STRL Mod 

Demo is essential to competitively hire 

and retain a highly qualified workforce. 

3. Access to Flexibilities of Other STRLs 

Flexibilities published in this FRN 

will be available for use by DoD 

laboratories designated as STRLs 

pursuant to 10 U.S.C. 4121, including 

any newly designated STRLs, if they 

wish to adopt them in accordance with 

DoDI 3201.05, and after the fulfillment 

of any collective bargaining obligations. 

4. Summary of Comments 

Sixty-four (64) commenters provided 

comments and questions regarding the 

AFC STRL Personnel Demonstration 

Project, Federal Register, 87 FR 62801, 

dated October 17, 2022. The following 

is a summary of these written questions 

by topical area and a response to each. 

A. Background 

Comment: Some commenters asked 

for a copy of the AFC STRL Mod Demo 

plan and asked if the plan would be 

disseminated to the workforce for 

comment, specifically related to the 

workforce shaping rules. 

Response: Changes to section II.F. of 

the Notice were made to clarify that, 

before implementation of the AFC STRL 

Mod Demo, the IOPs will be distributed 

to the workforce for information only. 

Details of the workforce reshaping rules 

will be included in the IOPs. 

Comment: Several commenters 

suggested that the rationale for Mod 

Demo, to enhance managerial 

flexibilities to ‘‘attract, motivate, train, 

and retain a top-performing science, 

technology, and modernization 

workforce,’’ is boilerplate and not 

applicable to the AFC STRL. 

Response: No changes to the Notice 

were made based on these comments. 

The introductory material explains why 

a one-size-fits-all government-wide 

system is no longer relevant for AFC 

and describes several new flexibilities 

designed to streamline and improve 

overall personnel management in AFC 

and facilitate efforts to compete with the 

private sector. AFC conducted a 

thorough review of the personnel 

practices adopted by STRLs and 

available flexibilities to identify those 

that would address AFC management 

and workforce needs. The resulting Mod 

Demo includes personnel flexibilities 

that optimize the ability to hire, retain, 

train, and engage a high-performing 

workforce while retaining many of the 

existing practices that make working for 

the Federal Government desirable. The 

proposed flexibilities, or innovative 

personnel practices, can be found in 

section III. 

B. Purpose 

Comment: A commenter 

recommended changing ‘‘projects’’ to 

‘‘project’’ in the first sentence. 

Response: This change has been 

made. 

C. Problems With the Present System 

Comment: Several commenters 

questioned DoD’s conclusion that the 

current ‘‘GS system’s approach to career 

flexibility, progression, and changing 

work assignments is rigid, slow and 

designed for industrial-era employees 

who entered Civil Service and remained 

until retirement.’’ The commenters 

stated that the current DPMAP system 

works well and that any problems were 

due to leaders failing to properly lead 

their employees. Furthermore, 

commenters asked what was meant by 

innovative personnel practices and what 

the proposed flexibilities were. 

Response: No changes to the Notice 

were made based on these comments. 

For STRLs such as AFC, which is tasked 

with ensuring the Army and its Soldiers 

remain at the forefront of technological 

innovation and warfighting ability, the 

General Schedule (GS) personnel system 

and DPMAP do not provide quick or 

easy ways of responding to changing 

work requirements. Unlike the GS 

system, which has 15 grades with 10 

levels each and involves individual 

position descriptions which must be 

classified by complex Title 5 

classification standards, the AFC STRL 

Mod Demo will implement a pay 

banding system and a pay for 

performance system designed to provide 

an effective, efficient, and flexible 

method for assessing, compensating, 

and managing a transformation-focused 

workforce. Employees will continue to 

have an opportunity to receive a base 

pay increase based on their level of 

performance during the appraisal year. 

Importantly, changes to the 

classification and pay system will 

enable management to create new types 

of jobs that respond to the fast-changing 

world of modernization work in which 

AFC STRL is engaged. The speed with 

which new science, technology, and 

engineering concepts emerge demands 

the ability to quickly re-shape work 

assignments, re-skill and up-skill 

employees, and maximize the potential 

of the existing workforce. Unlike the 

rigid rules of the GS system which limit 

internal reassignments, promotions, and 

training, the AFC STRL Mod Demo 

provides flexibility to train and assign 

personnel as needed to respond to the 

rapid changes in the modernization 

mission. In addition, AFC STRL Mod 

Demo enables and enhances innovative 

ways to attract, recruit, and retain 

current and future employees through 

better pay and hiring flexibilities. In 

addition, AFC STRL Mod Demo will 

provide supervisor and leadership 

training to develop capabilities and 

skills to better engage employees. 

D. Changes Required/Expected Benefits 

Comment: Commenters questioned 

whether STRL personnel demonstration 

projects increase employee satisfaction 

and asked for surveys or other data to 

support this conclusion. Some 

commenters indicated that current and 

former alternate personnel systems 

adopted by DoD, such as the National 


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Security Personnel System (NSPS) and 

the Acquisition Demonstration, were 

not preferable to the General Schedule 

(GS) system. One commenter asked 

whether AFC and the Army studied 

other agencies that are succeeding and 

if any best practices were used to 

improve organizational effectiveness 

and employee satisfaction. 

Response: No changes to the Notice 

were made based on these comments. 

Although surveys were not conducted 

with the AFC workforce to determine if 

the employees wanted a pay banded 

system or to determine if these changes 

would produce increased workforce 

satisfaction or engagement, a recent 

survey of the STRL demonstration 

project workforce showed 86% of 

respondents were either neutral, 

satisfied or very satisfied with their jobs 

and 89% were satisfied with 

management. (Science and Technology 

Reinvention Laboratory (STRL) 

Demonstration Project Summary of 

Evaluation Results for Fiscal Year 

Ending in 2019, Office of the Under 

Secretary of Defense—Research & 

Engineering (USD(R&E)) Office of Labs 

and Personnel (L&PO), October 2021). 

Early OPM evaluation reports indicate 

that acceptance of demonstration 

projects increases as time goes on, with 

some STRLs seeing acceptance 

increasing 40–50% in approximately 

eight years. Trust and confidence in 

supervisors also increased under several 

demonstration projects, as well as job 

satisfaction. (A Status Report on 

Personnel Demonstration Projects in the 

Federal Government, U.S. Office of 

Personnel Management, December 

2006). Due to the mission of Army 

Futures Command, it is imperative to 

transform recruitment, hiring, and 

retention programs. The NSPS was a 

centrally operated personnel system that 

did not permit the flexibilities, direct 

hiring authorities, and focus on a highly 

technical workforce that are the 

signature elements of the STRL 

demonstration projects. NSPS was 

particularly criticized for its inflexibility 

and inability to change with lessons 

learned, whereas STRL demonstration 

projects provide flexibility and local 

authority to apply lessons learned to 

improve functionality. STRL 

demonstration projects are adaptable 

and responsive to workforce feedback. 

AFC STRL Mod Demo pay pools will be 

locally managed to facilitate equity 

within similar workforce elements. 

Importantly, AFC STRL Mod Demo will 

be evaluated within five years of 

implementation in accordance with 5 

U.S.C. chapter 47. Data will be collected 

internally and externally based on 

standards and guidelines developed by 

the USD(R&E). Furthermore, AFC STRL 

Mod Demo will collect climate survey 

data throughout the life of the project. 

Results of evaluation data will be 

provided to the USD(R&E) and the AFC 

STRL Mod Demo workforce, as 

appropriate. Each year the AFC STRL 

Personnel Management Board (PMB) 

will review the STRL policies to 

determine if changes are needed. 

Unions or a neutral third party will be 

informed based on bargaining unit 

obligations. AFC is looking to become a 

workplace of choice and to adopt best 

practices by agencies such as the 

National Aeronautics and Space 

Agency, which is consistently 

recognized as one of the best places to 

work in the Federal government by the 

Partnership for Public Service. 

Comment: Commenters expressed 

concern that the goals of the program do 

not have a baseline and that it is unclear 

how AFC STRL Mod Demo will 

demonstrate that a human resource 

system tailored to the mission and 

needs of the modernization workforce 

will facilitate more effective, efficient, 

and adaptable organizational systems. 

Commenters suggested that the stated 

STRL goal of increased permeability 

between the civil service and private 

industry will cause employees to lose 

privileges and rights in comparison to 

other Federal employees. 

Response: No changes to the Notice 

were made based on these comments. 

AFC STRL Mod Demo will be evaluated 

based on standards and guidelines 

developed by the USD(R&E) and AFC 

STRL Mod Demo, including any 

applicable baseline data requirements. 

As stated in this Notice, ‘‘All personnel 

laws, regulations, and guidelines not 

waived by this plan will remain in 

effect. Basic employee rights will be 

safeguarded, and Merit System 

Principles will be maintained.’’ 

Increasing permeability between the 

civil service and private industry is 

expected to have positive effects on 

employees rather than causing them to 

lose privileges. STRL flexibilities 

provide opportunities that attract and 

retain critical talent. The AFC STRL 

Mod Demo is designed to reflect 

different organizational mission 

requirements along with career 

progression for Science & Engineering 

(S&E) and Business and Technical (B&T) 

career paths and has been successfully 

implemented in other STRL 

demonstration projects. 

E. Participating Organizations 

Comment: Some commenters 

identified that the names of the 

Software Factory (SWF) and Network 

(NW CFT) should be changed to their 

current designations. Additionally, 

commenters recommended to delete ‘‘a’’ 

from the first sentence of the second 

paragraph. 

Response: These changes have been 

made. The correct names and acronyms 

are Army Software Factory (ASWF) and 

Network Command Control 

Communications Integration (NC3I). 

F. Personnel Management Board (PMB) 

Comment: A commenter asked if the 

demographics of the PMB would be 

known to the workforce. The 

commenter was concerned about 

diversity on the PMB and recommended 

the inclusion of GS–13 and GS–14 

representatives from the career fields 

represented within AFC STRL Mod 

Demo. 

Response: No changes to the Notice 

were made based on these comments. 

PMB members will be appointed in 

accordance with this FRN and IOPs will 

include measures for ensuring a variety 

of perspectives are represented. The 

names of PMB members will be 

provided to the workforce. 

Comment: Commenters recommended 

administrative changes to clarify 

position titles and references. 

Response: The changes have been 

made. 

G. Organizational Structure and Design 

Comment: Commenters expressed 

various concerns about whether funding 

was available to implement AFC Mod 

Demo. More specifically, commenters 

inquired whether: (1) Employees will 

receive bonuses in fiscal year (FY) 23; 

(2) funds from the current FY23 bonus 

pool will be used to convert the 

workforce; (3) the STRL was included in 

the Program Objective Memorandum 

(POM); (4) unforecasted requirements 

take priority; (5) inflation impacted the 

budget; (6) civilian pay and benefits 

increases are impacted; (7) Army 

operating budgets and the number of 

civilian positions may be cut; (8) has 

funding to pay for step increase buy-ins, 

software costs, awards, hiring 

incentives; (9) the funding source has 

been identified for DA centrally funded 

interns; and (10) AFC STRL Mod Demo 

is revenue neutral. Lastly, commenters 

asked how AFC STRL Mod Demo makes 

sense based on the type of funding 

available to pay civilian employees. 

Response: No changes to the Notice 

were made based on these comments. 

Implementation of AFC Mod Demo will 

not change the types of funding 

available for civilian pay, including 

locality pay, or the average rates used by 

the Army Budget Office to allocate this 

funding based on the number of civilian 


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positions. Annual performance awards 

and other monetary incentives for 

civilian employees will continue to be 

separately planned and executed as part 

of AFC’s command budgeting process. 

H. Pay Banding 

Comment: Some commenters 

expressed concerns with the AFC STRL 

Mod Demo organizations use of control 

points. They inquired whether they will 

be published to the workforce prior to 

implementation. They also inquired 

whether they were needed, with one 

commenter suggesting that they will 

reduce the flexibility of the AFC STRL 

Mod Demo and cause it to resemble the 

General Schedule system. 

Response: Section III.B.3 was changed 

to address these comments. Although 

the AFC Mod Demo will use a pay 

banding structure, not all positions have 

duties and responsibilities that warrant 

unconstrained salary progression 

through the entire range of the pay 

band. Control points within a pay band 

are a tool for managing organization 

workforce structure and pay to reward 

performance while ensuring employees 

are appropriately compensated. The 

following language has been added to 

section III.B.3: ‘‘Control points may be 

used as a compensation strategy when 

management determines the duties and 

responsibilities of a position do not 

warrant unconstrained salary 

progression through the entire range of 

the pay band.’’ 

Comment: A commenter stated that 

the 2210 occupational series under S&E 

was unclear and recommended 

clarifying language. 

Response: The following language has 

been added to section III.B.1: ‘‘This 

career path includes certain Information 

Technology (IT) (occupational series 

2210) positions. It includes such 

positions that contribute to highly 

technical and/or scientific programs that 

reside in the research, development, or 

engineering domains, using offensive, 

and defensive cyber competencies, and 

directly support science and technology 

initiatives contributing to the 

development of cyber resilient Army 

transformation and readiness 

technologies. All other IT specialist 

positions will be included in the B&T 

career path.’’ 

I. Classification 

Comment: A commenter asked if the 

organizations that fall under the AFC 

STRL Mod Demo will have 

classification authority or if the 

authority will be at the AFC HQ level. 

Response: No changes to the Notice 

were made based on these comments. 

AFC STRL Mod Demo organizations 

will have classification authority. 

Comment: Commenters asked if, upon 

conversion or later in time, an 

employee’s career path or occupational 

series may be changed even if the 

employee’s qualification is appropriate 

to the employee’s current job 

description and qualification 

requirement. 

Response: No changes to the Notice 

were made based on these comments. 

Career Path (or pay plan) refers to 

Science & Engineering (DB), Business & 

Technical (DE), and Support (DK) 

instead of General Schedule (GS). As 

indicated in section IV.A, upon 

conversion, employees will be placed in 

a career path (i.e., DB, DE, DK) based 

upon their occupational series, with no 

change to occupational series. 

Following conversion, employees who 

are qualified for vacant positions in 

another occupational series or career 

path may compete for the vacancy. 

J. Pay-for-Performance Management 

System (PFP) 

Comment: A commenter asked if the 

rating period would change under AFC 

STRL Mod Demo. 

Response: No changes to the Notice 

were made based on these comments. 

The rating period will be determined by 

each AFC STRL Mod Demo 

organization, and it will be published in 

the IOPs. 

Comment: Some commenters 

expressed concerns that the AFC STRL 

Mod Demo is using a minimum of four 

elements for performance instead of 

three elements like other demonstration 

projects and asked if benchmark 

standards will be developed and 

published. Commenters also requested 

AFC provide detailed hands-on training 

concerning PFP and specifically on the 

performance elements. 

Response: No changes to the Notice 

were made based on these comments. 

The performance element provisions in 

this Notice were developed following 

examination of existing STRL Lab Demo 

Performance Management Systems. 

Eight performance elements, with a 

required four minimum elements, will 

enable organizations within the AFC 

STRL Mod Demo to select the 

appropriate performance criteria to meet 

their own individual, organizational 

needs, and mission requirements. 

Performance elements may evolve over 

time to ensure individual and 

organizational success. The PMB will 

review the performance elements 

annually and make any necessary 

changes prior to the start of a new rating 

period. Additionally, the performance 

management system’s use of benchmark 

performance criteria establishes a 

common set of standards for evaluating 

performance and assigning ratings. The 

benchmark performance criteria will be 

published annually and whenever 

changes are made. Finally, the use of a 

pay pool panel and reconciliation 

process provides additional checks and 

balances to the evaluation process. 

Detailed training on all STRL programs 

and flexibilities will be provided to the 

workforce prior to conversion. 

Supervisors will also receive training on 

the performance management system 

and rating processes to support an 

accurate evaluation of performance. 

Comment: One commenter 

recommended that the sentence, ‘‘AFC 

STRL organizations will provide written 

notice to the workforce at the start of the 

rating cycle concerning the basis of the 

share assignment,’’ be moved from 

III.D.8 Option A to the first paragraph in 

section III.D.8 and before Figure 3, 

because it applies to both Option A and 

B. 

Response: This change has been 

made. 

Comment: Commenters asked how 

factors will be used to determine if the 

employee will get a lower amount of 

money than what was received the 

previous year. 

Response: No changes to the Notice 

were made based on these comments. 

Specific guidance addressing pay pool 

requirements and factors used to 

determine shares will be published 

annually and included in organization’s 

respective IOPs. 

Comment: A commenter 

recommended adding additional 

leadership wording to the Supervisor/ 

Equal Employment Opportunity (EEO) 

performance element. 

Response: Section III.D.2.8 was 

revised to add ‘‘; and (7) Influences, 

motivates, and challenges others 

through adaptive leadership; takes 

charge of assigned effort(s); overcomes 

challenges to success; resolves personal 

and professional conflicts; and looks for 

opportunities to assist others to achieve 

success.’’ 

Comment: A commenter 

recommended that the Awards section 

include added wording indicating 

employees cannot be compensated for 

the same contribution twice (e.g., 

performance and incentive). 

Response: No changes to the Notice 

were made based on these comments. 

This level of detail is more appropriate 

for AFC STRL Mod Demo organization 

IOPs. 

Comment: Commenters asked why 

AFC STRL Mod Demo is concerned 

about information exchange with 


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industry and why that effects 

Government employee ratings. 

Response: No changes to the Notice 

were made based on these comments. 

The AFC Mod Demo organizations 

comprise an STRL, which is a research 

and development (R&D) laboratory as 

defined in DoDI 3201.05. It is staffed 

with a scientific and engineering 

workforce principally involved in 

performing exploratory development or 

research work and conducts a 

substantial portion of R&D activities inhouse using government personnel. It 

provides Army transformation solutions 

(integrated concepts, organizational 

designs, and technologies) in order to 

allow the Joint Force, employing Army 

capabilities, to achieve overmatch in the 

future operation environment. The 

STRL mission requires information 

exchange through collaboration with 

industry and academic partners to 

support the delivery of modernization 

solutions so the Army can make sure 

Soldiers have what they need, before 

they need it, to protect tomorrow. As a 

transformation and modernization 

organization, research and collaboration 

with industry and academic partners 

directly impacts an employee’s ability to 

meet performance objectives and goals. 

This influences an employee’s 

performance rating and the ability of the 

command to meet mission 

requirements. 

Comment: Commenters stated that 

implementation of Mod Demo should be 

delayed pending completion of a 

Congressionally required study and 

further consideration by the Department 

and Congress. 

Response: No changes to the Notice 

were made based on these comments. 

The Defense Business Board talent 

management study was completed and 

its recommendations provided to the 

Department for consideration. 

Comment: Commenters asked about 

eligibility for raises based on tenure 

instead of performance, expressed 

concerns that the inability to receive 

step increases based on longevity would 

place employees at a disadvantage when 

compared to other employees in similar 

job series within the Federal 

Government and affect retirement 

calculations based on highest income 

earned, and suggested current GS 

employees be grandfathered for pay 

increases based on tenure. Commenters 

also questioned how employees would 

benefit without additional funds to 

incentivize performance and requested 

measurable baselines for the goals of the 

project and mechanisms for assessing 

contribution to ensure funds are divided 

equitably. 

Response: No changes to the Notice 

were made based on these comments. 

AFC Mod Demo implements a PFP 

system that provides an effective, 

efficient, and flexible method for 

assessing, compensating, and managing 

the workforce. Employees will continue 

to receive the general pay increase in 

most circumstances. Moreover, 

employees have the opportunity to 

receive a base pay increase, a bonus, or 

a combination based on their level of 

performance during the appraisal year. 

Funds that were previously used for GS 

step increases, quality step increases, 

and promotions will be used to fund the 

performance increases. The goals of the 

AFC STRL Mod Demo are based on 

years of demonstration project 

experiences in other organizations as 

reported in, ‘‘A Status Report on 

Personnel Demonstration Projects in the 

Federal Government’’, U.S. Office of 

Personnel Management, December 2006, 

and ‘‘Alternative Personnel Systems in 

Practice and a Guide to the Future,’’ 

U.S. Office of Personnel Management, 

October 2005. The evaluation model, as 

described in this Notice, will identify 

elements critical to an evaluation of the 

effectiveness of the AFC STRL Mod 

Demo flexibilities. 

Comment: Some commenters asked 

about the size of pay pools given that 

some organizations may have only 20 

employees while others have hundreds. 

They expressed concern about the range 

of grades and salaries in the pay pools. 

Additionally, a commenter questioned 

having different pay pools for 

supervisors and non-supervisors. Lastly, 

commenters asked if all of AFC STRL 

Mod Demo organizations will be sharing 

pay pools and funding. 

Response: No changes have been 

made to the Notice in response to these 

comments. Pay pools will be established 

in accordance with the IOP of each AFC 

STRL Mod Demo organization and the 

size may vary depending on the 

organization. AFC STRL Mod Demo 

organizations will thoroughly evaluate 

options and may use modeling, mock 

payout exercises, and other means of 

analysis to achieve optimal pay pool 

composition. 

Comment: Some commenters asked 

about pay pool targets/caps that will 

limit how organizations can increase 

employee pay and asked if it will be 

similar to current awards. Additionally, 

commenters asked how conversion will 

work with Information Technology 2210 

bonuses and if an employee is at the top 

of a pay band and currently receiving a 

2210 bonus if it will place the employee 

in the next pay band. 

Response: No changes to the Notice 

were made based on these comments. 

As stated in section III.D.7, annual pay 

pool limits for base pay increases and 

bonuses, also referred to as payout 

factors, will be established by the AFC 

STRL Mod Demo organizations. The 

funds used for base pay increases are 

those that would have been available 

from GS within-grade increases, quality 

step increases, and promotions. This 

amount will be defined based on 

historical data and set at no less than 

two percent of total adjusted base pay 

and no more than the maximum set by 

the AFC STRL Mod Demo organization. 

Award amount will be defined based on 

historical data and set at no less than 

one percent of total adjusted base pay 

and no more than the maximum set by 

the AFC STRL Mod Demo Commanding 

General (CG). AFC STRL organizations 

may continue to make full use of 

recruitment, retention, and relocation 

payments as currently provided for by 

OPM. This includes OPM hiring and 

pay flexibilities such as monetary 

incentives for targeted occupational 

specialties. Conversion guidance for all 

series will be in accordance with section 

IV of this FRN. 

Comment: Commenters expressed 

concerns about supervisor 

responsibilities to notify employees of 

unsatisfactory performance and 

opportunities for such employees to 

improve performance. 

Response: No changes to the Notice 

were made based on these comments. 

Employees and supervisors are expected 

to actively participate in discussions 

regarding expectations and potential 

obstacles to meeting employee 

performance goals. As stated in section 

III.D.5, ‘‘Whenever a supervisor 

recognizes an employee’s performance 

on one or more performance elements is 

unacceptable, the supervisor should 

immediately inform the employee. 

Efforts will be made to identify the 

possible reasons for the unacceptable 

performance.’’ Further, if an employee 

continues to perform at an unacceptable 

level or has received a Level 1 Rating of 

Record, the employee will be placed on 

a formal performance improvement plan 

(PIP). The supervisor will identify the 

actions that need to be corrected or 

improved, outline required time frames 

(no less than 30 days) to demonstrate 

such improvement and provide the 

employee with any available assistance 

as appropriate. Progress will be 

monitored during the PIP, and all 

counseling sessions will be 

documented. 

Comment: A commenter asked what 

the equivalency was between the 

current rating system in MyBiz (e.g., 1, 

3, 5) and the new system. 


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Response: No changes to the Notice 

were made based on these comments. 

As stated in section III.D.8, AFC STRL 

Mod Demo will follow pattern H, as 

described in 5 CFR 430.208(d), which 

provides for 5 summary levels. An 

employee who receives a level 3 rating 

is considered to have performed 

successfully during the rating period. 

Comment: A commenter asked 

whether an employee who gets a 

satisfactory level of evaluation may be 

placed in a lower pay band within the 

same career path or placed into a pay 

band in a different career path with a 

lower maximum base pay. 

Response: No changes to the Notice 

were made based on these comments. 

Employees with a satisfactory rating 

may be voluntarily placed in a lower 

pay band or another career path with 

lower pay if they volunteer or request 

the change. Employees may be 

involuntarily placed in a lower pay 

band or another career path with lower 

pay for cause (i.e., performance or 

conduct) or for reasons other than cause 

(e.g., erosion of duties, reclassification 

of duties to a lower pay band, placement 

actions resulting from RIF procedures). 

Involuntary actions will be executed 

using the applicable adverse action 

procedures in 5 U.S.C. chapter 43 or 

chapter 75. 

Comment: Commenters criticized the 

pay banding system, suggesting it is 

designed by lawyers and human 

resource-oriented persons who focus too 

much on ‘‘measurement’’ rather than 

‘‘motivation’’ and ‘‘leadership.’’ 

Additionally, commenters suggested 

that collaborative coaching styles of 

leadership are better at motivating 

people than formalized ‘‘measurement’’ 

systems which can serve as a 

demotivating factor. 

Response: No changes to the Notice 

were made based on these comments. 

The purpose of the project is to 

demonstrate that the effectiveness of 

DoD organizations can be enhanced by 

allowing greater managerial control over 

personnel functions and, at the same 

time, expand the opportunities available 

to employees through a more responsive 

and flexible personnel system. 

Additionally, the pay-for-performance 

system provides an effective, efficient, 

and flexible method for assessing, 

compensating, and managing the AFC 

STRL Mod Demo workforce. It is 

essential for the development of a high 

performing workforce and to provide 

management at the lowest practical 

level, the authority, control, and 

flexibility to achieve a quality and 

collaborative relationship with 

employees to ensure the organization’s 

mission requirements are met. Pay-forperformance allows for more employee 

involvement in the assessment process, 

strives to increase communication 

between supervisor and employee, 

promotes a clear accountability of 

performance, facilitates employee career 

progression, and provides an 

understandable and rational basis for 

salary changes by linking pay and 

performance. 

Comment: Commenters were 

concerned with the awards percentage 

in this document being below the 

percentage that has been mandated by 

OPM in the past two years and asked if 

OPM will accept a lower percentage for 

AFC STRL Mod Demo. Additionally, 

commenters asked whether the lower 

percentage is an effort to divert money 

to cover the base pay amounts. 

Furthermore, commenters asked about 

the source of funding for Extraordinary 

Achievement Rewards and whether they 

were part of the POM used to plan 

future funding. Lastly, commenters 

asked how budget management will 

work in AFC STRL Mod Demo. 

Response: No changes to the Notice 

were made based on these comments. 

AFC STRL Mod Demo allows the STRL 

Director to establish limits on awards 

administered by the pay pool as part of 

the civilian pay budget. Extraordinary 

Achievement and other approved 

incentives will be administered 

separately as part of the command’s 

overall annual budget. 

K. Hiring and Appointment Authorities 

Comment: Commenters questioned 

how an extended probationary period 

retains quality personnel and suggested 

it goes against progressive management 

practices for leading, motivating, 

recruiting, and retaining a quality 

workforce. 

Response: No changes to the Notice 

were made based on these comments. 

Authority to adopt an extended 

probationary period is a flexibility that 

enables supervisors to have adequate 

time to fully evaluate an employee’s 

ability to complete cycles of work and 

to fully assess an employee’s 

contribution and conduct. 

L. Internal Placement 

Comment: Commenters recommended 

both competitive and non-competitive 

details; the option to extend temporary 

promotions be limited to one additional 

year; and the word ‘‘affected’’ be 

changed to ‘‘effected’’ in the fifth 

sentence. 

Response: The third sentence in 

section III.G.5, Details and Expanded 

Temporary Promotions, was revised to 

address these comments. 

Comment: Commenters asked how a 

promotion opportunity will be 

identified and what conditions and 

criteria are applicable when an 

employee is transferred to a lower pay 

band. 

Response: No changes to the Notice 

were made based on these comments. 

Policies related to promotions and 

transfers to lower pay bands are 

documented in Section III.G.1 of this 

Notice. Additional processes and 

procedures will be documented in the 

IOP. 

M. Pay Setting 

Comment: A commenter stated that 

proposed Section III.H.7.a., under 

Supervisory and Team Leader Pay 

Adjustments, is confusing. 

Response: Section III.H.7. was revised 

to remove proposed paragraph a. and 

relabel paragraphs b. and c. to a. and b. 

Comment: Commenters stated that the 

last sentence in Section III.H.7.b., 

Supervisory and Team Leader Pay 

Adjustments, that describes how pay 

will be set for supervisory/team leader 

positions upon conversion into the 

project should be removed because 

employees will get a within grade 

increase (WGI) buy-in, as long as the 

employee is not at a step 10, or 

receiving a retained rate, on the day of 

implementation. Additionally, 

commenters asked what the word 

‘‘adjustment’’ meant when referring to 

WGI equity. 

Response: Section III.H.7.b, 

Supervisory and Team Leader Pay 

Adjustment, has been revised to remove, 

‘‘After conversion into the 

demonstration project, a career 

employee selected for a supervisory/ 

team leader position may be considered 

for a pay adjustment into the same or 

substantially similar position, 

supervisors/team leaders will be 

converted at their existing base rate of 

pay and will not be eligible for a base 

pay adjustment.’’ The word, 

‘‘adjustment,’’ refers to increases in base 

pay upon conversion into Mod Demo, as 

described in Section IV.A. 

Comment: Commenters asked about 

supplemental pay rates and whether an 

AFC STRL Mod Demo organization can 

decrease an employee’s compensation. 

Response: No changes to the Notice 

were made based on these comments. 

The supplemental pay flexibility 

permits AFC STRL Mod Demo to 

independently establish supplemental 

rates based on multiple factors, 

including rates offered by non-federal 

organizations and remoteness of the 

area, to help attract, recruit, and retain 

a high caliber workforce. AFC STRL 

Mod Demo organizations have an 


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ongoing responsibility to evaluate the 

need for continuing payment of the 

supplemental pay and shall terminate or 

reduce the amount if conditions 

warrant. Conditions to be considered 

are: changes in labor-market factors; the 

need for the services or skills of the 

employee has reduced to a level that 

makes it unnecessary to continue 

payment at the current level; or 

budgetary considerations make it 

difficult to continue payment at the 

current level. Additional guidance will 

be documented in the AFC STRL Mod 

Demo organization IOPs. 

N. Voluntary Early Retirement (VERA) 

and Voluntary Separation Incentive Pay 

(VSIP) 

Comment: A commenter expressed 

concerns with Voluntary Early 

Retirement Authority (VERA) and 

Voluntary Separation Incentive Pay 

(VSIP) and how the use of ‘‘and’’ in this 

section indicates the use of VERA and 

VSIP together and not separately. The 

commenter believes the section should 

make it clear that these authorities may 

be used independently. 

Response: Section III.J, Voluntary 

Early Retirement Authority and 

Voluntary Separation Incentives Pay, 

has been revised to read, ‘‘VERA and 

VSIP will be administered as described 

in this Notice. Both authorities are 

authorized and may be used together or 

separately. 

O. Conversion 

Comment: Commenters recommended 

changes to placement of some GS–14 

employees into band III upon 

conversion. Additionally, commenters 

asked if the same rules for GS–14 

employees apply to GS–13 or GS–12 

employees who fall within Pay Band III. 

Response: Section IV.A, Conversion 

into the Demonstration Project, has been 

revised to read, ‘‘The placement of GS– 

14 employees will be in Pay Band IV 

during initial conversion into AFC 

STRL Mod Demo. Additional guidance 

will be included in Mod Demo IOPs, 

and conversion operations will be 

overseen by the PMB.’’ This language 

clarifies that employees whose grade 

falls within two pay bands (i.e., GS–14) 

will be placed in the higher pay band 

during conversion. Such guidance is not 

applicable to GS–13 and GS–12 grades 

which fall within Pay Band III. 

Comment: A commenter asked if 

current employees hired under the 

Highly Qualified Expert authority will 

be converted to AFC STRL Mod Demo. 

Response: No changes to the Notice 

were made based on these comments. 

Employees appointed using Highly 

Qualified Expert (HQE) authority will 

not convert into the AFC STRL Mod 

Demo. 

Comment: A commenter expressed 

concern because Defense Civilian 

Intelligence Personnel System (DCIPS) 

employees are ineligible to convert to 

GS positions and asked whether AFC 

STRL Mod Demo employees will be 

eligible to apply for and convert to GS 

positions. 

Response: No changes to the Notice 

were made based on these comments. 

Unlike DCIPS positions which are in the 

excepted service, AFC STRL Mod Demo 

positions are in the competitive service 

and employees are eligible to convert to 

other competitive service positions. 

Comment: Commenters asked how 

conversion will work if an employee is 

already paid at the top of a pay scale 

(e.g., GS–11 step 10) and will that 

employee be converted into the next pay 

band. Additionally, commenters asked 

how salary will be determined if a GS– 

13 and GS–14 converting in if both 

employees received the same rating, 

perform the same duties, and have the 

same responsibilities. Lastly, 

commenters asked whether an employee 

who is performing satisfactorily may be 

placed in a lower pay band within the 

same career path or placed into a pay 

band in a different career path with a 

lower pay. 

Response: No changes to the Notice 

were made based on these comments. 

Employees will convert into the pay 

band that encompasses their current GS 

Grade. Positions in a higher pay band 

will have more complex duties and 

responsibilities and will have different 

performance objectives than similar 

positions in a lower pay band. 

Comment: A commenter requested 

wording be added to address employee 

conversion from a current demo (ARL 

STRL and Acquisition Demonstration) 

into the AFC STRL Mod Demo. 

Response: Section IV.A, Conversion 

into the Demonstration Project, was 

revised to address this comment by 

adding the following language, 

‘‘Organizational conversion to the AFC 

STRL Mod Demo occurs when a new 

organization or a group of employees 

convert into the demonstration project. 

Conversion from current GS grade or 

other pay banding system into AFC 

STRL Mod Demo will be accomplished 

during implementation of the 

demonstration project. Initial entry into 

the demonstration project will be 

accomplished through a full employeeprotection approach that ensures each 

employee an initial place in the 

appropriate career path and pay band 

without loss of pay or earning 

potential.’’ 

Comment: Commenters expressed 

myriad concerns about converting GS– 

14 positions to Pay Band III. 

Response: Section IV.A has been 

revised to require conversion of all 

employees who are currently in GS–14 

positions to pay band IV. All employees 

currently on GS–12 and GS–13 

positions will move into pay band III. 

Section III.H.12, Accelerated 

Compensation for Developmental 

Positions section, has been revised to 

state, ‘‘The AFC STRL Mod Demo 

organizations may authorize an increase 

to basic pay for employees participating 

in training programs, internships, or 

other development capacities. This may 

include employees in positions that 

cross bands within a career path 

(formally known as career ladder 

positions) or developmental positions 

within a band. ACDP will be used to 

recognize development of job-related 

competencies as evidenced by 

successful performance within AFC 

STRL Mod Demo. Additional guidance 

will be published in an IOPs.’’ AFC 

researched and utilized best practices 

from organizations across DoD, 

including the AFC Enterprise 

organizations currently operating STRL 

demonstration projects. The pay band 

structure supports progression across 

journey level positions. The AFC STRL 

Mod Demo is designed to reflect 

different organizational mission 

requirements along with career 

progression for S&E and B&T career 

paths and has been successfully 

implemented in other STRL 

demonstration projects. 

Section IV.A., Conversion into the 

Demonstration Project, has been revised 

to state, ‘‘The placement of GS–14 

employees will be in Pay Band IV 

during initial conversion into AFC 

STRL Mod Demo. After initial 

conversion, GS–14’s will be assigned 

based on classification requirements. 

Additional guidance will be included in 

AFC STRL Mod Demo IOPs, and 

conversion operations will be overseen 

by the PMB.’’ GS–14s in Pay Band IV 

will have competitive advantage based 

on the complexity of work and duties 

and responsibilities they are required to 

perform. There are multiple factors 

considered prior to moving a person 

from one position to another. An 

employee must compete for a higher 

banded position unless the employee 

meets the ‘‘Exceptions to Competitive 

Procedures for Assignment to a 

Position’’ listed in the FRN. 

Comment: Commenters expressed 

concerns with grade and pay retention 

entitlements being eliminated at the 

time of conversion into the 

demonstration project. 


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Response: Section IV.A, Conversion 

into the Demonstration Project, has been 

revised to state, ‘‘The project will 

eliminate retained grade under 5 U.S.C. 

5362 and 5 CFR part 536. At the time 

of conversion, an employee on grade 

retention will be converted to the career 

path and broadband level based on the 

assigned permanent position of record, 

not the retained grade, and placed on 

pay retention. Pay retention will follow 

current law and regulations at 5 U.S.C. 

5363 and 5 CFR part 536, except as 

modified in the Staffing Supplements 

section and waived in Section IX of this 

plan. Additionally, section III.H, Pay 

Setting, is revised to add section 

III.H.10., Grade and Pay Retention. 

P. Demonstration Project Costs 

Comment: A commenter asked if the 

cost numbers were adjusted for inflation 

in Figure 7 since the numbers appeared 

similar across fiscal years. The 

commenter further asked whether other 

costs associated with the demonstration 

project were adjusted for inflation. 

Response: No changes to the Notice 

were made based on these comments. 

Inflation was considered in calculating 

the development costs in Figure 7. 

Q. Appendix A: Occupational Series by 

Career Path 

Comment: Some commenters 

expressed concerns about inaccuracies 

or inconsistencies in occupational 

series, career paths, position titles, and 

use of asterisks. 

Response: All occupational series 

within AFC STRL Mod Demo 

organizations were reviewed and 

Appendix A has been revised to add 

missing occupational series and 

designate appropriate career paths. 

Additionally, asterisks were added for 

those occupational series that currently 

have employees assigned. The titles of 

positions were not changed. AFC STRL 

Mod Demo utilized the OPM 

classification standards for 

identification of the position title and 

occupational series. Based on the series 

determination(s), positions will be 

assigned to a specific career path, i.e., 

Science & Engineering (Pay Plan DB), 

Business & Technical (Pay Plan DE), or 

Support (Pay Plan DK). The AFC STRL 

Mod Demo utilized OPM career 

occupation coverage as a guideline to 

assign series to each career path. Lastly, 

all current series for AFC and CFT 

employees will be included under AFC 

STRL Mod Demo and will cover the 

mission capabilities and validation 

requirements. The professional 

occupational career paths for AFC STRL 

Mod Demo are the same as the OPM 

Professional Career Occupational 

Coverage. 

R. Other Comments 

Comment: A commenter asked if 

conversion to the STRL would affect 

leave. 

Response: No changes to the Notice 

were made based on these comments. 

Leave entitlements are not impacted by 

conversion into the AFC STRL Mod 

Demo. 

Comment: Commenters cited high 

costs of living in Austin locality and 

inquired whether AFC STRL Mod Demo 

can address this if the control points 

within the pay bands mimic the GS pay 

system. Additionally, commenters asked 

how AFC STRL Mod Demo will cover 

the shortfall if this wasn’t included in 

the POM for the conversion costs. 

Furthermore, commenters asked why 

AFC hasn’t considered moving AFC HQ 

to another location that would be more 

cost effective. 

Response: No changes to the Notice 

were made based on these comments. 

Locality pay for specific areas and the 

location of AFC HQ is beyond the scope 

of the AFC STRL Mod Demo Notice. 

Comment: A commenter asked why 

Reduction in Force (RIF) information is 

not included in the FRN and asked how 

Mod Demo will implement a RIF. 

Response: No changes to the Notice 

were made based on these comments. 

All DoD STRLs follow the RIF guidance 

at 87 FR 58334. Organization-specific 

RIF policies will be documented in AFC 

STRL Mod Demo organization IOPs. 

Comment: A commenter asked for 

data that shows the changes to 

employees’ career tracks and how that 

may negatively affect employees. 

Additionally, commenters stated the 

goals of the program have no baseline 

and asked what privileges or rights will 

be lost in comparison to other Federal 

employees. 

Response: No changes to the Notice 

were made based on these comments. 

AFC STRL Mod Demo will not change 

employee career tracks. The pay band 

system provides more opportunities for 

advancement. There are more hiring and 

pay flexibilities under AFC STRL Mod 

Demo than the current GS system. 

Comment: A commenter stated if 

civilians are covered by pay bands, then 

military members should be as well, to 

align civilian and military rank 

structure. 

Response: No changes to the Notice 

were made based on these comments. 

The Notice implements STRL 

authorities to expeditiously hire and 

retain highly qualified civilian 

employees. 

Comment: Commenters asked about 

bargaining unit negotiations, pay 

structure, and other decisions that are 

part of the bargaining process and 

specifically whether bargaining unit 

members would convert if the union 

does not agree to the project. 

Response: No changes to the Notice 

were made based on these comments. 

Bargaining unit employees will not 

convert into the AFC STRL Mod Demo 

until any applicable labor obligations 

have been met. 

Comment: Commenters asked if an 

employee with performance issues 

could lose their annual general pay 

increase (i.e., cost of living increase) and 

whether the locality pay adjustment 

could be denied. 

Response: No changes to the Notice 

were made based on these comments. 

As stated in section III.D.12., 

‘‘Employees, who are on a performance 

improvement plan and/or receive a 

Level 1 rating of record at the time pay 

determinations are made, may be denied 

performance payouts or the general pay 

increase.’’ When the employee has 

performed at an acceptable level for at 

least 90 days, the general pay increase 

(GPI) will not be retroactive but will be 

granted at the beginning of the next pay 

period after the supervisor authorizes its 

payment. Employees remain entitled to 

the locality pay adjustment no matter 

the rating received. AFC STRL Mod 

Demo is moving away from the GS pay 

system to ensure employees are 

rewarded based on performance. 

Comment: Commenters asked what 

was meant by ‘‘shall be as defined under 

applicable U.S. OPM operating rules 

and regulations.’’ Additionally, a 

commenter asked if current job 

descriptions from the GS system will be 

changed for any or all employees. 

Response: No changes to the Notice 

were made based on these comments. 

AFC STRL Mod Demo will exercise 

authorities that are not specifically 

addressed in the Notice pursuant to 

applicable OPM and DoD regulations. 

Employees converting to Mod Demo 

will be reassigned to new Mod Demo 

position descriptions. 

Comment: Some commenters 

expressed a need to evaluate AFC STRL 

Mod Demo in future years to ensure 

continued fairness and equity and to 

verify that the STRL is still beneficial to 

the AFC mission and organizations and 

questioned whether unions or a neutral 

third party would be involved in the 

evaluation. Commenters also expressed 

a need to value years of experience and 

offset supervisors’ biases and 

perceptions. Additionally, commenters 

suggested providing guaranteed 

increases and bonuses on top of the base 


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pay for those performing well to 

promote retention. 

Response: No changes to the Notice 

were made based on these comments. 

Selection of candidates and other 

personnel actions will continue to be 

based on merit system principles. AFC 

STRL Mod Demo has incorporated an 

EEO/diversity, equity, and inclusion 

element as one of the mandatory 

supervisor performance objectives. 

Additionally, AFC STRL Mod Demo 

will provide supervisor and leadership 

training to develop capabilities and 

skills to better engage employees. AFC 

STRL Mod Demo will evaluate the 

project within five years of 

implementation of the project in 

accordance with 5 U.S.C. chapter 47. 

Data will be collected internally and 

externally based on standards and 

guidelines developed by the USD(R&E). 

Furthermore, AFC STRL Mod Demo will 

collect climate survey data. Results of 

evaluation data will be provided to the 

USD(R&E) and the AFC STRL Mod 

Demo workforce, as appropriate. Each 

year the PMB will review the STRL 

policies to determine if changes are 

needed. Each organization will work 

with its respective union to ensure 

bargaining union requirements are met 

and union input is captured 

appropriately. 

Comment: Commenters questioned 

expanding the scope of the career fields 

covered by AFC STRL Mod Demo from 

scientific and technical career fields to 

include administrative and other 

professional areas. 

Response: No changes to the Notice 

were made based on these comments. 

STRLs are not just pursuing scientific 

and engineering talent, but all talent, 

ensuring there are always qualified 

administrative and other professional 

staff to support the STEM mission. 

Comment: A commenter suggested the 

use of direct hire authorities is 

inconsistent with merit system 

principles for promoting transparent, 

fair, and open competition and that 

direct hire is often a closed, virtually 

non-competitive program that promotes 

the hiring of friends and acquaintances 

and allows use of other than merit-based 

factors in selecting employees and 

candidates. 

Response: No changes to the Notice 

were made based on these comments. 

The Department has a long history of 

successfully using direct hire 

authorities, consistent with merit 

system principles, to meet its critical 

national security workforce needs. 

Innovative research is critical to 

preparing DoD to meet the challenges of 

the future. 

Table of Contents 

I. Executive Summary 

II. Introduction 

A. Purpose 

B. Problems With the Present System 

C. Changes Required/Expected Benefits 

D. Participating Organizations 

E. Participating Employees and Union 

Representation 

F. Project Design 

G. Personnel Management Board (PMB) 

H. Organizational Structure and Design 

I. Funding Levels 

III. Personnel System Changes 

A. Levels of Authority and Responsibility 

B. Pay Banding 

C. Classification 

D. Pay-for-Performance Management 

System 

E. Hiring and Appointment Authorities 

F. Volunteer Emeritus and Expert Program 

(VEP) 

G. Internal Placement 

H. Pay Setting 

I. Employee Development 

J. Voluntary Early Retirement (VERA) and 

Voluntary Separation Incentive Pay 

(VSIP) 

IV. Conversion 

A. Conversion Into the Demonstration 

Project 

B. Conversion or Movement From a Project 

Position to a General Schedule Position 

V. Implementation Training 

VI. Project Maintenance and Changes 

VII. Evaluation Plan 

A. Overview 

B. Evaluation Model 

C. Method of Data Collection 

VIII. Demonstration Project Costs 

IX. Required Waivers to Laws and 

Regulations 

A. Title 5, United States Code 

B. Title 5, Code of Federal Regulations 

Appendix A: Occupational Series in Each 

Pay Band 

Appendix B: List of Local Unions 

I. Executive Summary 

AFC leads a continuous 

transformation of Army modernization 

in order to provide future warfighters 

with the concepts, capabilities, and 

organizational structures they need to 

dominate a future battlefield. AFC is the 

newest Army Command, established in 

2018 when the Army consolidated many 

of its laboratories, concepts 

development centers, and innovation 

elements under one command structure. 

Although the organizations 

comprising the AFC STRL share the 

same overarching modernization 

mission, their specific alignments, 

structures, and workforces differ 

dramatically. The organizations include 

two large headquarters elements, two 

analysis centers, multiple cross 

functional teams, and two concepts and 

capabilities development organizations. 

They all share the urgent need for a 

high-quality, contemporary, flexible 

personnel management system to 

attract, motivate, train, and retain a topperforming science, technology, and 

modernization workforce. 

The goal of the AFC STRL Mod Demo 

is to make AFC STRL a premier 

employer with growth opportunities, 

competitive pay, and management 

flexibilities to take care of both 

employees and the mission. The AFC 

STRL Mod Demo features pay banding, 

performance-based compensation, 

flexible hiring, and a modern approach 

to career progression and assignments. 

II. Introduction 

A. Purpose 

The purpose of STRL personnel 

demonstration project is to demonstrate 

that the effectiveness of DoD STRLs can 

be enhanced by expanding 

opportunities available to employees 

and by allowing greater managerial 

control over personnel functions 

through a more responsive and flexible 

personnel system. A top-tier workforce 

is essential to the AFC STRL’s efforts 

towards achieving technological 

innovation and modernization for the 

Army. AFC STRL needs a 

contemporary, flexible personnel 

management system to attract, motivate, 

train, and retain a top-performing 

science, technology, and modernization 

workforce. The goal of this project is to 

ensure AFC STRL remains a premiere 

employer with growth opportunities, 

appropriate pay, and management 

flexibility to take care of both employees 

and the mission. 

While many aspects of a 

demonstration project were once 

considered experimental, many have 

been implemented in various DoD 

laboratories for several years, including 

other STRLs within AFC. Modifications 

to the initial project plans have been 

made based on the implementation 

experience of these laboratories, best 

practices, and formative evaluation 

efforts. Additional modifications may be 

needed from time to time, as additional 

experience is gained and based on 

evaluations of how the system is 

working to meet the goals and objectives 

of the personnel demonstration project. 

B. Problems With the Present System 

The current Civil Service GS system 

has 15 grades with 10 levels each and 

involves lengthy, narrative, individual 

position descriptions, which must be 

classified by complex 5 CFR 

classification standards. Base pay is set 

at one of those fifteen grades and the ten 

interim steps within each grade. The 

Classification Act of 1949 rigidly 

defines types of work by occupational 

series and grade, with very precise 


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qualifications for each job. This system 

does not quickly or easily respond to 

new ways of designing work and 

changes in the work itself. Changes to 

the classification and pay system would 

enable greater management control to 

create new types of jobs that respond to 

the fast-changing world of 

modernization work in which AFC 

STRL is engaged. 

In addition to classification issues, the 

GS system’s approach to career 

flexibility, progression, and changing 

work assignments is rigid, slow, and 

designed for industrial-era employees 

who entered Civil Service and remained 

until retirement. Modern employees 

expect careers that include frequent 

company changes, new challenges, and 

work-life balance fluctuations that do 

not require staying with a single 

employer. Allowing employees to move 

in and out of Civil Service while 

minimizing career impact would give 

AFC STRL access to an additional pool 

of scientists, engineers, and technical 

personnel, even when they have 

changing life circumstances. It would 

also increase information exchange 

between AFC STRL and industry. 

The speed with which new science, 

technology, and engineering concepts 

emerge demands the ability to quickly 

re-shape work assignments, re-train 

employees, and maximize the potential 

of the existing workforce. Internal 

reassignments and promotions under 

the GS system are also rigid, and 

limitations on training further hamper 

efforts to respond to the rapid changes 

in the modernization mission. 

C. Changes Required/Expected Benefits 

The primary benefit expected from 

this demonstration project is greater 

organizational effectiveness through 

increased employee satisfaction. The 

long-standing Department of the Navy 

‘‘China Lake’’ and subsequent 

demonstration projects have produced 

impressive statistics on increased job 

satisfaction and quality of employees 

versus that of the Federal workforce in 

general. Similar results have been 

demonstrated in more recent STRL 

demonstration projects and other 

alternative personnel systems 

implemented in the DoD and other 

agencies. 

This project will demonstrate that a 

human resource system tailored to the 

mission and needs of the modernization 

workforce will facilitate: 

(1) Increased quality in the workforce; 

(2) More effective, efficient, and 

adaptable organizational systems; 

(3) Improved timeliness of key 

personnel processes; 

(4) Increased retention of excellent 

performers; 

(5) Increased success in recruitment of 

personnel with critical skills; 

(6) Increased information exchange 

between AFC STRL and industry; 

(7) Increased permeability between 

Civil Service and industry; and 

(8) Increased workforce satisfaction 

and engagement. 

D. Participating Organizations 

AFC STRL currently has employees 

located in twenty-one states and several 

countries. Just over half are spread 

across Aberdeen Proving Ground 

(Maryland), Austin (Texas), and White 

Sands Missile Range (New Mexico), 

with most of the remaining employees 

in Kansas, Virginia, Oklahoma, Georgia, 

Missouri, Alabama, Michigan, and other 

parts of Texas. 

AFC STRL is comprised of multiple 

AFC organizations; the remaining AFC 

organizations are covered by 

independent STRL personnel 

demonstration projects. The AFC STRL 

is comprised of the organizations listed 

below (hereinafter referred to as ‘‘AFC 

STRL organizations,’’ and their 

components. 

(1) AFC Headquarters and 

Headquarters Components (AFC HHC), 

which includes AFC Headquarters (HQ), 

AFC Support Battalion (AFCSB), Army 

Software Factory (ASWF), Artificial 

Intelligence Integration Center (AI2C), 

Army Applications Lab (AAL), and 

Acquisition & Systems (A&S) 

Directorate. 

(2) AFC Cross Functional Teams (AFC 

CFTs), which includes Long Range 

Precision Fires (LRPF CFT); Next 

Generation Combat Vehicle (NGCV 

CFT); Future Vertical Lift (FVL CFT); 

Network Command Control 

Communications Integration (NC3I); 

Assured Positioning, Navigation and 

Timing/Space (APNT/S CFT); Air and 

Missile Defense (AMD CFT); Soldier 

Lethality (SL CFT); and Synthetic 

Training Environment (STE CFT). 

(3) The Research and Analysis Center 

(TRAC). 

(4) Futures and Concepts Center 

(FCC), which includes Joint 

Modernization Command (JMC) and the 

Capability Development Integration 

Directorates (CDIDs). 

(5) Combat Capabilities Development 

Command (CCDC) Headquarters (also 

known as DEVCOM Headquarters). 

(6) The DEVCOM Analysis Center 

(DAC). 

E. Participating Employees and Union 

Representation 

This demonstration project will cover 

civilian employees appointed under 

Title 5 U.S.C. in the occupations listed 

in Appendix A. Additional employees 

and other occupations may be added 

after implementation of the project. The 

project plan does not cover members of 

the Senior Executive Service (SES), 

Senior Level (SL) employees, Scientific 

and Professional (ST) employees, 

Federal Wage System employees, and 

employees presently covered by the 

Defense Civilian Intelligence Personnel 

System or Physicians and Dentists Pay 

Plan. 

Department of the Army (DA), Army 

Command centrally funded, local 

interns, and Pathways Program 

employees may be converted to the 

demonstration project if assigned to an 

AFC STRL organization. Additional 

guidance will be included in the Mod 

Demo IOPs. 

Sixteen local and/or national unions, 

from American Federation of 

Government Employees (AFGE), 

Laborer’s International Union of North 

America (LIUNA), National Federation 

of Federal Employees (NFFE), National 

Association of Government Employees 

(NAGE), and National Association of 

Independent Labor (NAIL), cover 

approximately 30% of employees in the 

AFC STRL. A full list of the local unions 

is provided at Appendix B. AFC STRL 

organizations will continue to fulfill 

their obligations to consult and/or 

negotiate with all labor organizations in 

accordance with 5 U.S.C. 4703(f) and 

7117 for bargaining unit participation. 

F. Project Design 

The AFC CG/AFC STRL Director 

leveraged the knowledge of experienced 

and tenured STRL leaders within the 

greater AFC organization to finalize the 

AFC STRL Mod Demo project plan. In 

consultation with members of the 

Laboratory Quality Enhancement 

Program Personnel Subpanel, other DoD 

laboratories, Army G1, Army Civilian 

Human Resources Agency, and a host of 

other knowledgeable agencies and 

personnel, the AFC STRL operational 

planning team conducted a 

comprehensive review of personnel 

flexibilities used in existing DoD 

laboratories and other government 

agencies. It also analyzed organizational 

needs and considered innovative 

personnel practices used outside of the 

federal government to develop proposed 

flexibilities for the AFC STRL Mod 

Demo. 

AFC STRL employed an executive 

Board of Directors comprised of leaders 

from across the AFC STRL to 

accommodate the differing needs of 

AFC STRL organizations, and a Council 

of Champions led by the AFC CG/AFC 

STRL Director to ensure all proposals 


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support AFC STRL’s strategic needs. 

Collaboration and oversight by Army 

and DoD ensured alignment with 

Departmental goals. 

The resulting project design for Mod 

Demo will be overseen by the AFC CG/ 

AFC STRL Director. It will be 

implemented through six organizationspecific Internal Operating Procedures 

(IOPs) and a single Mod Demo 

Personnel Management Board (PMB). 

Each of the AFC STRL organizations 

listed in Paragraph D will have its own 

IOP. Authority to draft, modify, 

implement, negotiate, and approve each 

IOP shall rest with these organizations. 

A review of these Mod Demo IOPs will 

be completed by the servicing legal 

office prior to approval. The IOP will be 

distributed to the workforce for 

information, prior to STRL 

implementation. 

Any responsibilities and authorities 

normally associated with STRL 

Directors that are not specifically 

defined in this Notice shall be as 

defined under applicable U.S. OPM 

operating rules and regulations. 

Additional information on delegated 

authorities and the project structure are 

included in Section III. 

G. Personnel Management Board (PMB) 

AFC STRL will create a Mod Demo 

PMB to oversee and monitor the fair and 

equitable implementation of the 

provisions of the demonstration project, 

including establishment of internal 

controls and accountability. The board 

will consist of the AFC Executive 

Deputy to the Commanding General 

(EDCG), as PMB Chair, and officials 

from the AFC STRL organizations listed 

in Paragraph D. PMB members will be 

appointed in accordance with this 

Federal Register Notice and IOPs will 

include measures for ensuring a variety 

of perspectives are represented. The 

names of PMB members will be 

provided to the workforce. The AFC 

EDCG may delegate membership, add, 

remove, or change the membership of 

the PMB, in accordance with the 

evolution of the AFC STRL Mod Demo. 

The PMB may also include experts in 

Human Resources, Resource 

Management, or other relevant areas, as 

appointed by the AFC EDCG. 

Based on guidance and consistent 

interaction with the AFC EDCG, the 

board will execute the following: 

(1) Oversee the implementation 

guidance and procedures in all aspects 

of the Mod Demo program in 

accordance with the direction given by 

the AFC CG/AFC STRL Director; 

(2) Issue top-level guidelines for AFC 

STRL organizations to establish and 

implement pay pools; 

(3) Review pay pool results for equity 

and conformance, on an annual basis; 

(4) Resolve administrative pay pool 

disputes that are not resolved through 

other means; 

(5) Establish guidelines for the use of 

retention counteroffers; 

(6) Review and approve the 

assignment of new occupational series 

to a pay band, if necessary; 

(7) Establish guidelines for exceptions 

to base pay increases, such as 

Extraordinary Achievement Rewards 

and Distinguished Contribution 

Allowances; 

(8) Establish guidelines for the 

Voluntary Emeritus/Expert Program; 

(9) Modify the Standard Performance 

Elements, as needed; 

(10) Establish guidelines for the use of 

subject matter expert qualifications for 

exceptional experience; 

(11) Approve any performance-based 

rules created and administered by AFC 

STRL organizations, prior to their 

implementation; 

(12) Assess the need for changes to 

demonstration project procedures and 

policies and provide leadership for 

efforts to modify this FRN; 

(13) Promote collaboration and best 

practices within Mod Demo; 

(14) Review Mod Demo IOPs for 

equity and conformance; 

(15) Track personnel cost changes and 

recommend adjustments, if required; 

(16) Conduct formative evaluations of 

the project, including those directed by 

DoD. 

In executing these duties and 

responsibilities, the board will keep in 

close contact and consultation with the 

AFC EDCG to ensure policies and 

procedures are executed consistently 

throughout Mod Demo and are aligned 

with AFC STRL strategic objectives. 

H. Organizational Structure and Design 

To optimize the effectiveness and 

efficiency of the AFC STRL during the 

adoption of the new personnel 

demonstration system, the AFC STRL 

may review and realign the organization 

structure to best meet mission needs 

and requirements. Realignment may 

include removing limitations in terms of 

supervisory ratios consistent with 10 

U.S.C. 4121, and the alignment and 

organization of the workforce required 

to accomplish the mission of the AFC 

STRL. 

In general, the AFC CG/AFC STRL 

Director will manage the STRL’s 

workforce strength, structure, positions, 

and compensation without regard to any 

limitation on appointments, positions, 

or funding in a manner consistent with 

the budget available in accordance with 

10 U.S.C. 4091. 

I. Funding Levels 

The Under Secretary of Defense 

(Personnel & Readiness) may adjust the 

minimum funding levels to consider 

factors such as the Department’s fiscal 

condition, guidance from the Office of 

Management and Budget, and equity in 

circumstances when funding is reduced 

or eliminated for GS pay raises or 

awards. 

III. Personnel System Changes 

A. Levels of Authority and 

Responsibility 

Due to the unique structural design of 

this demonstration project, certain 

responsibilities that are typically 

reserved for STRL lab directors are 

assigned to other AFC STRL officials. 

Such designations are referenced 

throughout this Notice using the 

definitions in this section. No 

responsibilities, authorities, or 

delegations in this Notice are intended 

to replace or override command 

authorities. 

Definitions. The following 

terminology is used throughout this 

Notice to refer to management and other 

officials in the AFC STRL. 

(1) AFC STRL Director. This term 

refers to the AFC CG. 

(2) AFC STRL organization approval 

authority. This term refers to the 

following positions in their respective 

organizations: AFC EDCG for AFC HQ; 

AFC Principal Deputy CG for CFT; FCC 

CG for FCC; Director, TRAC for TRAC; 

DEVCOM CG for DEVCOM HQ; and 

Director, DAC for DAC. 

(3) PMB Member. This term refers to 

a member of the PMB, as defined in 

Section II.G. of this Notice. 

(4) Pay Pool Manager. This term refers 

to the individual who approves the total 

performance ratings, reviews the ratings 

of employees within the pay pool for 

consistency and fairness, resolves any 

rating issues, and makes final decisions 

on ratings and payouts. 

(5) Pay Pool Panel/Reconciliation 

Board. This term refers to the group of 

supervisors/managers who reconcile 

ratings and payouts for the employees in 

each pay pool. 

B. Pay Banding 

The design of the AFC STRL Mod 

Demo pay band system takes advantage 

of the exhaustive studies performed by 

DA and DoD of pay band systems 

currently practiced in the Federal 

sector, including those practiced by the 

Navy’s ‘‘China Lake’’ experiment and 

the National Institute of Standards and 

Technology. The pay band system will 

replace the current GS structure. 

Currently, the fifteen grades of the GS 


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are used to classify positions and, 

therefore, to set pay. The GS covers 

most civilian white-collar Federal 

employees in professional, technical, 

administrative, and clerical positions. 

Changes in this rigid structure are 

required to allow flexibility in hiring, 

developing, retaining, and motivating 

the workforce. 

1. Career Paths and Pay Bands 

Occupations with similar 

characteristics will be grouped together 

into one of three career paths with pay 

bands designed to facilitate pay 

progression. Each career path will be 

composed of pay bands corresponding 

to recognized advancement and career 

progression expected within the 

occupations. Each career path will be 

divided into three to five pay bands 

with each pay band covering the same 

pay range now covered by one or more 

GS grades. The upper and lower pay 

rate for base pay of each pay band is 

defined by the minimum and maximum 

GS rate for the grade as indicated in 

Figure 1, except for Level V of the S&E 

career path. Comparison to the GS 

grades was used in setting the upper 

and lower base pay dollar limits of the 

pay bands. However, once employees 

are moved into the demonstration 

project, GS grades will no longer apply. 

The occupational series listed in 

Appendix A served as guidelines in the 

development of the following three 

career paths: 

Science and Engineering (S&E) (Pay 

Plan DB): This career path includes 

technical professional positions, such as 

engineers, physicists, chemists, 

mathematicians, operations research 

analysts, and computer scientists. This 

career path also includes certain 

Information Technology (IT) 

(occupational series 2210) positions. It 

includes such positions that contribute 

to highly technical and/or scientific 

programs that reside in the research, 

development, or engineering domains, 

using offensive, and defensive cyber 

competencies. These positions will 

directly support science and technology 

initiatives contributing to the 

development of cyber resilient Army 

transformation and readiness 

technologies. These positions include 

highly skilled and high demand 

cybersecurity positions such as certified 

vulnerability assessment blue team and/ 

or National Security Agency certified 

red team subject matter experts. All 

other IT specialists will be included in 

the B&T career path. Specific course 

work or educational degrees are 

required for these occupations (except 

cyber-IT). Five pay bands have been 

established for the S&E career path: 

a. Pay Band I is a student trainee track 

covering GS–1, step 1 through GS–4, 

step 10. 

b. Pay Band II is a developmental 

track covering GS–5, step 1 through GS– 

11, step 10. 

c. *Pay Band III includes GS–12, step 

1 through GS–14, step 10. 

d. *Pay Band IV includes GS–14, step 

1 through GS–15, step 10. 

e. Pay Band V covers Senior Scientific 

Technical Manager (SSTM) positions 

which are described in further detail in 

paragraph 2 of this section. 

* Pay Bands III and IV overlap at the 

end and start points. These two pay 

bands have been designed following a 

feature used by the Navy’s ‘‘China Lake’’ 

project. Prior to implementation, 

personnel decisions regarding the 

overlap will be defined in Mod Demo 

IOPs in accordance with the PMBapproved classification guidance. 

Business & Technical (B&T) (Pay Plan 

DE): This career path includes such 

positions as computer specialist, 

equipment specialist, quality assurance 

specialist, telecommunications 

specialist, engineering and electronics 

technicians, procurement coordinators, 

finance, accounting, administrative 

computing, and management analyst. 

Employees in these positions may or 

may not require specific course work or 

educational degrees. Four pay bands 

have been established for the B&T career 

path: 

a. Pay Band I is a student trainee track 

covering GS–1, step 1 through GS–4, 

step 10. 

b. Pay Band II includes GS–5, step 1 

through GS–11, step 10. 

c. *Pay Band III includes GS–12, step 

1 through GS–14, step 10. 

d. *Pay Band IV includes GS–14, step 

1 through GS–15, step 10. 

*Pay Bands III and IV overlap at the 

end and start points. These two levels 

have been designed following a feature 

used by the Navy’s ‘‘China Lake’’ 

project. Prior to implementation, 

personnel decisions regarding the 

overlap will be defined in the Mod 

Demo IOPs in accordance with the 

PMB-approved classification guidance. 

Support (Pay Plan DK): This career 

path consists of clerical and assistant 

positions for which specific course work 

or educational degrees are not required. 

Clerical work usually involves the 

processing and maintaining of records. 

Assistant work requires knowledge of 

methods and procedures within a 

specific administrative area. 

a. Pay Band I include entry-level 

positions covering GS–1, step 1 through 

GS–4, step 10. 

b. Pay Band II includes fullperformance positions covering GS–5, 

step 1 through GS–8, step 10. 

c. Pay Band III includes senior 

technicians/assistants/secretaries 

covering GS–9, step 1 through GS–10, 

step 10. 

2. Senior Scientific Technical Managers 

(SSTM) 

AFC STRL Mod Demo will include a 

category of SSTM positions, as directed 

by 10 U.S.C. 4091 and described in 79 

FR 43722. S&E Pay Band V will apply 


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Figure I 
13560 Federal Register / Vol. 89, No. 36 / Thursday, February 22, 2024 / Notices 

exclusively to positions designated as 

SSTMs. 

The SSTM program will be managed 

and administered by the AFC EDCG 

unless delegated in writing to an AFC 

STRL organization approval authority. 

These SSTM positions are managed 

separately from SES, ST, and SL 

positions. The primary functions of 

SSTM positions are (a) to engage in 

research and development in the 

physical, biological, medical, or 

engineering sciences, or another field 

closely related to the mission of such 

STRL; and (b) to carry out technical 

supervisory responsibilities. The 

number of such positions is limited in 

accordance with 10 U.S.C. 4091. This 

authority is expected to provide an 

opportunity for career development and 

expansion of a pool of experienced, 

prominent technical candidates meeting 

the levels of proficiency and leadership 

essential to create and maintain a DoD 

state-of-the-art scientific, engineering, 

and technological capability. 

Positions may be filled: (a) On a 

temporary, term, or permanent basis 

utilizing appropriate internal and/or 

external competitive recruitment 

procedures; (b) through accretion-ofduties promotions; or (c) using a direct 

hire authority. Positions may also be 

filled temporarily using noncompetitive procedures (e.g., detail and 

temporary promotions). The AFC CG 

has the discretion to select the 

recruitment and staffing method most 

appropriate based on the specialized 

position requirements and available 

candidate pool. However, the 

recruitment and staffing methodology 

must include: (a) An internal process 

which incorporates an impartial, 

rigorous, and demanding assessment of 

candidates to evaluate the breadth of 

their technical expertise; (b) an external 

recruitment process; (c) creation of 

panels to assist in filling positions; or 

(d) other comparable recruitment and/or 

staffing mechanisms. 

Panels will be created to assist in the 

review of candidates for SSTM 

positions. Panel members typically will 

be SES members, ST employees, and 

those employees designated as SSTMs. 

In addition, General Officers and 

recognized technical experts from 

outside AFC STRL may serve, as 

appropriate. The panel will apply 

criteria developed largely from the OPM 

Research Grade Evaluation Guide for 

positions exceeding the GS–15 level and 

other OPM guidance related to positions 

exceeding the GS–15 level. The purpose 

of the panel is to ensure impartiality 

and a rigorous and demanding review. 

3. Position Control Points 

Control points may be used as a 

compensation strategy when 

management determines the duties and 

responsibilities of a position do not 

warrant unconstrained salary 

progression through the entire range of 

the pay band. If used, control points 

will be documented on the classified 

position description. Increasing an 

employee’s salary beyond a control 

point, if established or used, will 

require review of both the position and 

performance of the employee. 

Advancement across a control point 

may not occur without approval of the 

AFC STRL organization approval 

authority, unless further delegated in 

the applicable IOP. Additional guidance 

will be included in the AFC STRL 

organization specific IOP. 

C. Classification 

1. Occupational Series 

The present GS classification system 

has over 400 occupational series, which 

are divided into 23 occupational 

groupings. AFC STRL currently has 

positions in 84 occupational series as 

indicated in Appendix A. Additional 

occupational series may be added to the 

AFC STRL Mod Demo, as needed. 

2. Classification Standards and Position 

Description 

AFC STRL will utilize OPM 

classification standards for the 

identification of proper series and 

occupational titles of positions within 

the demonstration project. The grading 

criteria in those standards will be used 

as a framework to develop new, 

simplified, and equitable standards for 

the purpose of pay band determinations. 

The objective is to include in the 

position description the essential 

criteria for each pay band within each 

career path by stating the characteristics 

of the work, the responsibilities of the 

position, and the competencies 

required. The classification standard for 

each career path and pay band will 

serve as an important component to 

update existing position descriptions, 

which will include position-specific 

information, and provide data element 

information pertinent to the job. The 

computer-assisted process will produce 

information necessary for position 

descriptions. The new descriptions will 

be easier to prepare, minimize the 

amount of writing time, and make the 

position description a more useful and 

accurate tool for other personnel 

management functions. 

Specialty work and/or competency 

codes with corresponding narrative 

descriptions will be used in position 

descriptions to further differentiate 

types of work and the competencies 

required for positions within a career 

path and pay band. Each code 

represents a specialization or type of 

work within the occupation. 

3. Fair Labor Standards Act (FLSA) 

FLSA exemption and non-exemption 

determinations will be consistent with 

criteria found in 5 CFR part 551. All 

employees are covered by the FLSA 

unless their position meets the criteria 

for exemption. The duties and 

responsibilities outlined in the 

classification standards for each pay 

band will be compared to the FLSA 

criteria. Generally, the FLSA status can 

be matched to career path and pay band 

as indicated in Figure 2. For example, 

positions classified in pay band I of the 

S&E career path are typically 

nonexempt, meaning they are covered 

by the overtime entitlements prescribed 

by the FLSA. An exception to this 

guideline includes supervisors/ 

managers at pay band I or II whose 

primary duties meet the definitions 

outlined in the OPM GS Supervisory 

Guide. Therefore, supervisors/managers 

in any of the career paths who meet the 

foregoing criteria generally are exempt 

from the FLSA. The AFC STRL 

classification authorities will make the 

determinations on a case-by-case basis 

by comparing assigned duties and 

responsibilities to the classification 

standards for each career path and the 

5 CFR part 551 FLSA criteria. 

Additionally, the advice and assistance 

of the servicing personnel office will be 

obtained in making determinations. The 

position descriptions will not be the 

sole basis for the determination. Basis 

for exemption will be documented and 

attached to each position description. 

Exemption criteria will be narrowly 

construed and applied only to those 

employees who clearly meet the spirit of 

the exemption. Changes will be 

documented and provided to the 

servicing personnel office. 


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Note: Although typical exemption status 

under the various pay bands is shown in the 

above table, actual FLSA exemption 

determinations are made on a case-by-case 

basis. 

4. Classification Authority 

The AFC STRL organizations will 

have classification authority and may 

delegate this authority in writing to 

appropriate levels. Any individual with 

delegated classification authority must 

complete required training. Position 

descriptions will be developed to assist 

in exercising delegated position 

classification authority. 

Classification authorities will identify 

the career path, job series, functional 

code, specialty work and/or competency 

code, pay band, and other critical 

information. Human Resources 

professionals will provide ongoing 

consultation and guidance to managers 

and supervisors throughout the 

classification process. These decisions 

will be documented in the position 

description. 

5. Classification Appeal 

Classification appeals under this 

demonstration project will be processed 

using the following procedures: An 

employee may appeal the determination 

of career path, occupational series, 

position title, and pay band of the 

position at any time. An employee must 

formally raise the area of concern to 

supervisors in the immediate chain of 

command, in writing. If the employee is 

not satisfied with the supervisory 

response, the employee may then appeal 

to the AFC STRL organization PMB 

representative. An appeal may then be 

made to the AFC EDCG. If the employee 

is not satisfied with the AFC EDCG’s 

response to the appeal, a final appeal 

may then be made to the DoD appellate 

level. The appeal process will be 

defined in each Mod Demo IOP. 

Classification appeals are not accepted 

on positions which exceed the 

equivalent of a GS–15 level. Time 

periods for cases processed under 5 CFR 

part 511 apply. 

The evaluation of classification 

appeals under this demonstration 

project are based upon the 

demonstration project classification 

criteria. Case files will be forwarded for 

action through the servicing personnel 

office and will include copies of 

appropriate demonstration project 

criteria. 

D. Pay-for-Performance Management 

System (PFP) 

1. Overview 

The purpose of the PFP system is to 

provide an effective, efficient, and 

flexible method for assessing, 

compensating, and managing the AFC 

STRL modernization workforce. It is 

essential for the development of a high 

performing workforce and to provide 

management at the lowest practical 

level, the authority, control, and 

flexibility needed to achieve a quality 

organization and meet mission 

requirements. PFP allows for more 

employee involvement in the 

assessment process, strives to increase 

communication between supervisor and 

employee, promotes a clear 

accountability of performance, 

facilitates employee career progression, 

and provides an understandable and 

rational basis for salary changes by 

linking pay and performance. 

The PFP system uses annual 

performance payouts that are based on 

the employee’s total performance score 

rather than within-grade increases, 

quality step increases, and performance 

awards. The normal rating period will 

be one year. The minimum rating period 

will be 90 days. PFP payouts can be in 

the form of increases to base pay and/ 

or bonuses that are not added to base 

salary but rather are given as a lump 

sum payment. Other awards, such as 

special acts and time-off awards, will be 

administered separately from the PFP 

payouts. 

The AFC STRL Mod Demo PFP 

system may be modified by the PMB, if 

necessary, as more experience is gained 

under the project. Each AFC STRL 

organization will publish the details of 

its PFP system rules and available 

funding limits in its IOP and/or annual 

PFP guidance. 

2. Performance Elements 

Performance elements define common 

performance characteristics that will be 

used to evaluate the employee’s success 

in accomplishing performance 

objectives. The use of common 

characteristics for scoring purposes 

helps to ensure comparable scores are 

assigned while accommodating diverse 

individual objectives. The PFP system 

will utilize those performance elements 

as described in this FRN. AFC STRL 

organizations can determine which 

elements are critical. A critical 

performance element is defined as an 

attribute of job performance that is of 

sufficient importance that performance 

below the minimally acceptable level 

requires remedial action and may be the 

basis for removing employees from their 

positions. Each of the performance 

elements will be assigned a two-digit 

weight between 0 and 1 rounding two 

significant digits, which reflects its 

importance in accomplishing an 

individual’s performance objectives. A 

minimum weight is set for each 

performance element. The sum of the 

weights for all the elements must equal 

1.0. Rules for setting weights will be 

defined in Mod Demo IOPs. 

A single set of performance elements 

will be used for evaluating the annual 

performance of all AFC STRL personnel 

covered by this Mod Demo plan. This 

set of performance elements may evolve 

over time, based on experience gained 

during each rating cycle. This evolution 

is essential to capture the critical 

characteristics the organization 

encourages in its workforce toward 

meeting individual and organizational 

objectives. This is particularly true in an 


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Figure 2 

Business and 

N - Non-Exempt from FLSA; 

E - Exempt from FLSA; and 

E 

N N E 

NIE- Exem tion status determined on a case-b -case basis. 

E 
13562 Federal Register / Vol. 89, No. 36 / Thursday, February 22, 2024 / Notices 

environment where technology and 

work processes are changing at an 

increasingly rapid pace. The PMB may 

adjust the elements annually. 

The initial set of performance 

elements and basic definitions for the 

AFC STRL Mod Demo are listed below. 

On an annual basis, AFC STRL 

organizations will select at least four 

elements based on mission 

requirements. Additionally, the 

Supervision/EEO element is mandatory, 

and may be updated as needed, for all 

employees whose assigned duties which 

meet the definition of Supervisor, 

outlined in the OPM GS Supervisory 

Guide. AFC STRL organizations will 

publish more specific element 

definitions and benchmark performance 

standards that describe performance 

associated with each score level in their 

IOPs. 

(1) Technical Competence—The 

extent to which an employee 

demonstrates the technical knowledge, 

skills, abilities, and initiative to produce 

the quality and quantity of work as 

defined in individual performance 

objectives and assigned tasks. 

(2) Mission Impact—The extent to 

which an employee demonstrates 

individual performance against strategic 

goals and initiatives as defined in 

individual performance objectives and 

assigned tasks. 

(3) Customer Satisfaction—The extent 

to which an employee delivers high 

levels of service to internal and external 

customers/stakeholders. Maintains 

quality customer/stakeholder 

relationship(s). 

(4) Management of Time and 

Resources—The extent to which an 

employee demonstrates ability to 

manage time and resources. 

(5) Teamwork—The extent to which 

an employee encourages and facilitates 

cooperation, collaboration, pride, trust, 

and group identity; fosters commitment 

and esprit-de-corps; works with others 

to achieve goals. 

(6) Communication—The extent to 

which an employee demonstrates ability 

to communicate orally and in writing to 

achieve mutual understanding or 

desired results. 

(7) Management/Leadership—The 

extent to which an employee influences, 

motivates, and challenges others; adapts 

leadership styles to a variety of 

situations. 

(8) Supervision/EEO—The extent to 

which a supervisor: (1) Ensures 

compliance with applicable laws, 

regulations and policies including Merit 

System Principles and Prohibited 

Personnel Practices; (2) Attracts and 

retains a high-caliber workforce and acts 

in a responsible and timely manner on 

all steps in the recruitment and hiring 

process; (3) Provides opportunities for 

orientation and tools for enabling 

employees to successfully perform 

during the probationary period and 

beyond; (4) Completes all performance 

management tasks in a timely manner 

including clearly communicating 

performance expectations throughout 

the appraisal period, holding employees 

accountable, making meaningful 

distinctions in performance and 

rewarding excellent performance, 

promoting employee development and 

training, and promptly addressing 

performance and conduct issues; (5) 

Ensures that EEO principles are adhered 

to throughout the organization and 

promptly addresses allegations of 

discrimination, harassment, and 

retaliation; (6) Upholds high standards 

of integrity and ethical behavior, 

including: ensuring appropriate internal 

controls to prevent fraud, waste or 

abuse; safeguarding assigned property/ 

resources; maintaining a safe work 

environment and promptly addressing 

allegations of noncompliance; and 

supporting the Whistleblower 

Protection Program by responding 

constructively to employees who make 

protected disclosure under 5 U.S.C. 

2302(b)(8), taking responsible and 

appropriate actions to resolve any such 

disclosure, and creating an environment 

in which employees feel comfortable 

making such disclosures; and (7) 

Influences, motivates, and challenges 

others through adaptive leadership; 

takes charge of assigned effort(s); 

overcomes challenges to success; 

resolves personal and professional 

conflicts; and looks for opportunities to 

assist others to achieve success. 

3. Performance Objectives 

Performance objectives define a target 

level of activity, expressed as a tangible, 

measurable objective, against which 

actual achievement can be compared. 

These objectives will specifically 

identify what is expected of the 

employee during the rating period and 

will typically consist of three to ten 

results-oriented statements. The 

employee and the supervisor will jointly 

develop the employee’s performance 

objectives at the beginning of the rating 

period. If there is a disagreement 

between the employee and supervisor 

concerning these performance 

objectives, the employee’s supervisor 

will render the final decision on the 

disagreement after fully considering the 

employee’s comments. Objectives are to 

be reflective of the employee’s duties/ 

responsibilities and pay band along 

with the mission/organizational goals 

and priorities. Objectives will be 

reviewed annually and revised upon 

changes in salary reflecting increased 

responsibilities commensurate with 

salary increases. Performance objectives 

are intended to define an individual’s 

specific responsibilities and expected 

accomplishments. In contrast, 

performance elements will identify 

common performance characteristics, 

against which the accomplishment of 

objectives will be measured. As a part 

of this demonstration project, training 

focused on overall organizational 

objectives, and the development of 

performance objectives will be held for 

both supervisors and employees. 

Performance objectives may be jointly 

modified, changed, or deleted as 

appropriate during the rating cycle. 

Generally, performance objectives 

should only be changed when 

circumstances outside the employee’s 

control prevent or hamper the 

accomplishment of the original 

objectives. It is also appropriate to 

change objectives when mission or 

workload shifts occur. 

4. Performance Feedback and Formal 

Ratings 

The most effective means of 

communication is person-to-person 

discussion between supervisors and 

employees of requirements, 

performance goals, and desired results. 

Employees and supervisors alike are 

expected to actively participate in these 

discussions for optimum clarity 

regarding expectations and identify 

potential obstacles to meeting goals. In 

addition, employees should explain (to 

the extent possible) what they need 

from their supervisor to support goal 

accomplishment. The timing of these 

discussions will vary based on the 

nature of work performed but will occur 

at least at the mid-point and end of the 

rating period. The supervisor and 

employee will discuss job performance 

and accomplishments in relation to the 

performance objectives and elements. At 

least one review, normally the midpoint review, will be documented as a 

formal progress review. More frequent 

task-specific discussions may be 

appropriate. In cases where work is 

accomplished by a team, team 

discussions regarding goals and 

expectations may be appropriate. 

The employee will provide a written 

list of accomplishments to the 

supervisor at both the mid-point and 

end of the rating period. An employee 

may elect to provide self-ratings on the 

performance elements and/or solicit 

input from team members, customers, 

peers, supervisors in other units, 

subordinates, and other sources which 

will permit the supervisor to fully 


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Federal Register / Vol. 89, No. 36 / Thursday, February 22, 2024 / Notices 13563 

evaluate accomplishments during the 

rating period. 

At the end of the rating period, 

following a review of the employee’s 

accomplishments, the supervisor will 

rate each of the performance elements 

by assigning a score between 0 and 50. 

Benchmark performance standards will 

be developed by the AFC STRL 

organization to describe the level of 

performance associated with a score. 

Supervisors will use the benchmark 

performance standards to determine 

appropriate ratings for each 

performance element. These scores will 

not be discussed with the employee or 

considered final until all scores are 

reconciled and approved by the 

designated Pay Pool Manager. The 

element scores will then be multiplied 

by the element-weighting factor to 

determine the weighted score expressed 

to two decimal points. The weighted 

scores for each element will then be 

totaled to determine each employee’s 

overall appraisal score and rounded to 

a whole number as follows: if the digit 

to the right of the decimal is between 

five and nine, it should be rounded to 

the next higher whole number; if the 

digit to the right of the decimal is 

between one and four, it should be 

dropped. 

A total score of 10 or below will result 

in a Level 1 rating of record. A score of 

10 or below in a single element will also 

result in a Level 1 rating of record with 

zero shares and no GPI, and requires the 

employee be placed on a Performance 

Improvement Plan (PIP). A new rating of 

record will be issued if the employee’s 

performance improves to an acceptable 

level at the conclusion of the PIP. 

5. Unacceptable Performance 

Informal feedback is an effective way 

to provide clarity to the employee and 

in-the-moment coaching. Additionally, 

informal discussions serve several 

purposes. For example, such 

discussions provide feedback for a 

specific job, set and reset goals, 

reinforce good habits, and discuss areas 

for improvement. Informal employee 

performance discussions will be a 

continuous process so that corrective 

action, including placing an employee 

on a PIP, may be taken at any time 

during the rating cycle. Whenever a 

supervisor recognizes an employee’s 

performance on one or more 

performance elements is unacceptable, 

the supervisor should immediately 

inform the employee. Efforts will be 

made to identify the possible reasons for 

the unacceptable performance. 

If the employee continues to perform 

at an unacceptable level or has received 

a Level 1 Rating of Record, written 

notification outlining the unacceptable 

performance will be provided to the 

employee. At this point an opportunity 

to improve will be structured in a PIP. 

The supervisor will identify the actions 

that need to be corrected or improved, 

outline required time frames (no less 

than 30 days) to demonstrate such 

improvement and provide the employee 

with any available assistance as 

appropriate. Progress will be monitored 

during the PIP, and all counseling 

sessions will be documented. 

If the employee’s performance is 

acceptable at the conclusion of the PIP, 

a new rating of record will be issued. If 

a PIP ends prior to the end of the annual 

performance cycle and the employee’s 

performance improves to an acceptable 

level, the employee is appraised again at 

the end of the annual performance 

cycle. 

If the employee fails to improve 

during the PIP, the employee will be 

given written notice of proposed action. 

This action can include removal from 

the Federal service, placement in a 

lower pay band with a corresponding 

reduction in pay (demotion), reduction 

in pay within the same pay band, or 

change in position or career path. For 

the most part, employees with a Level 

1 rating of record will not be permitted 

to remain at their current salary and 

may be reduced in pay band. 

Note: Nothing in this subsection will 

preclude action under 5 U.S.C. chapter 75, 

when appropriate. 

All relevant documentation 

concerning a reduction in pay or 

removal based on unacceptable 

performance will be preserved and 

made available for review by the 

affected employee or a designated 

representative. As a minimum, the 

record will consist of a copy of the 

notice of proposed personnel action, the 

employee’s written reply, if provided, or 

a written summary when the employee 

makes an oral reply. Additionally, the 

record will contain the written notice of 

decision and the reasons therefore along 

with any supporting material (including 

documentation regarding the 

opportunity afforded the employee to 

demonstrate improved performance). 

If the employee’s performance 

deteriorates to an unacceptable level, in 

any element, within two years from the 

beginning of a PIP, follow-on actions 

may be initiated with no additional 

opportunity to improve. If an 

employee’s performance is at an 

acceptable level for two years from the 

beginning of the PIP and performance 

once again declines to an unacceptable 

level, the employee will be given an 

additional opportunity to improve 

before management proposes follow-on 

actions. 

Additional details will be outlined in 

Mod Demo IOPs. 

6. Reconciliation Process 

At the end of the rating cycle and 

following the initial scoring of each 

employee by the supervisor, a panel of 

rating officials and supervisors, known 

as the pay pool panel, will meet in a 

structured review and reconciliation 

process managed by the Pay Pool 

Manager. In this step, each employee’s 

performance objectives, 

accomplishments, preliminary scores 

and/or shares, and pay are discussed. 

Through discussion and consensus 

building, consistent and equitable 

ratings and/or shares are reached. There 

will not be a prescribed distribution of 

total scores. IOPs will further define this 

process. 

7. Pay Pools 

Employees within the AFC STRL Mod 

Demo will be placed into pay pools. Pay 

pools are combinations of organizational 

elements (e.g., Directorates, Divisions, 

Branches, and Offices) that are defined 

for the purpose of determining 

performance payouts under the PFP 

system. The guidelines in the next 

paragraph are provided for determining 

pay pools. These guidelines will 

normally be followed. However, an AFC 

STRL Mod Demo pay pool manager may 

deviate from the guidelines if there is a 

compelling need to do so, and the 

rationale is documented in writing. 

The AFC STRL organizations will 

establish pay pools within their 

respective organizations. Typically, pay 

pools will have between 35 and 300 

employees. A pay pool should be large 

enough to encompass a reasonable 

distribution of ratings but not so large as 

to compromise rating consistency. 

Supervisory personnel will be placed in 

a pay pool separate from subordinate 

non-supervisory personnel. Neither the 

Pay Pool Manager nor supervisors 

within a pay pool will recommend or 

set their own individual pay. Decisions 

regarding the amount of the 

performance payout are based on the 

established formal payout calculations. 

Annual pay pool limits for base pay 

increases and bonuses, also referred to 

as payout factors, will be established by 

the AFC STRL organizations. Funds for 

performance payouts are divided into 

two components: base pay increases and 

bonuses. The funds used for base pay 

increases are those that would have 

been available from GS within-grade 

increases, quality step increases, and 

promotions. This amount will be 

defined based on historical data and set 


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13564 Federal Register / Vol. 89, No. 36 / Thursday, February 22, 2024 / Notices 

at no less than two percent of total 

adjusted base pay and no more than the 

maximum set by the AFC STRL 

organization. The funds available to be 

used for awards are funded separately 

within the constraints of the 

organization’s overall award budget. 

This amount will be defined based on 

historical data and set at no less than 

one percent of total adjusted base pay 

and no more than the maximum set by 

the AFC STRL organization. The sum of 

these two factors is referred to as the 

Pay Pool Payout Factor and is 

determined by the AFC STRL 

organization within the above 

constraints. The PMB will annually 

review the pay pool funding formulas 

used by AFC STRL organizations and 

recommend adjustments to ensure cost 

discipline over the life of the 

demonstration project. AFC STRL 

organizations may reallocate the amount 

of funds assigned to each pay pool as 

necessary to ensure equity and to meet 

unusual circumstances. 

8. Performance Payout Determination 

Employee’s Rating of Record levels 

will be determined by the Score Ranges 

as shown in Figure 3 below. The Rating 

of Record levels follow the Summary 

level rating patterns associated with 5 

CFR 430.208, Pattern H. Mod Demo 

IOPs may designate descriptive titles for 

Level 1 through Level 5 ratings of 

record. The score ranges will be used as 

a guide to determine the number of 

shares the employee is assigned in the 

pay pool process. An employee will 

receive a performance payout as a 

percentage of the employee’s salary at 

the end of the rating cycle, based on the 

number of shares assigned. AFC STRL 

organizations will use one of two 

methods for converting scores to shares. 

Score ranges and share option changes 

must be approved by the Mod Demo 

PMB. IOPs must state which method the 

AFC STRL organization will use, and 

Mod Demo employees will receive 

specific training covering this topic. 

AFC STRL organizations will provide 

written notice to the workforce at the 

start of the rating cycle concerning the 

basis of the share assignment. 

Shares values will be assigned 

between 0 and 4 using any increment of 

shares for a given Score Range as shown 

in Figure 4. The pay pool panel will 

determine the shares based on the 

employee’s score range. When selecting 

the share value, the pay pool panel may 

consider any of the following: the 

employee’s salary relative to other 

employees in the same range, the 

employee’s performance above and 

beyond expectations, the supervisor’s 

recommendation, and how close the 

employee is to the top of the pay band. 

Shares will be awarded as decimal 

numbers, rounded to the nearest tenth, 

based on the employee’s score. 

Fractional shares will be awarded for 

scores that fall in between these scores, 

in accordance with Figure 5. For 

example: a score of 38 will equate to 1.8 

shares, and a score of 44 will equate to 

2.4 shares. 


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Figure 3 

Level 5 41-50 

Level 4 31-40 

Level 3 21-30 

Level 2 11-20 

Level 1 10 or less 

Figure 4 

41-50 3 or 3.5 or 4 

31-40 2 or 2.5 or 3 

21-30 1 or 1.5 or 2 

11-20 0 

10 orless 0 and/or no GPI 
Federal Register / Vol. 89, No. 36 / Thursday, February 22, 2024 / Notices 13565 

Regardless of whether Option A or 

Option B is implemented, the value of 

a share cannot be exactly determined 

until the rating and reconciliation 

process is completed and all scores are 

finalized. The formula that computes 

the value of each share is based on (1) 

the payout factors, (2) the employee’s 

pay, and (3) the number of shares 

awarded to each employee in the pay 

pool. This formula, shown in Figure 6, 

assures that each employee within the 

pool receives a share amount equitable 

to all others in the same pool who are 

at the same rate of basic pay and receive 

the same score and shares. The exact 

Pay Pool Payout Factor will be 

determined by the AFC Mod STRL 

organization, in accordance with 

paragraph 7 above. 

Where: 

F = Pay Pool Payout Factor, determined by 

AFC STRL 

Pay Pool Managers are accountable for 

staying within pay pool funding limits. 

The Pay Pool Manager makes final 

decisions on pay increases and/or 

bonuses to individuals based on rater 

recommendation, the final score, the 

pay pool funds available, and the 

employee’s salary at the end of the 

rating cycle. 

In addition, the designated pay pool 

manager may nominate employees for 

Extraordinary Achievement 

Recognition. Such recognition grants a 

base pay increase and/or bonus to an 

employee that is higher than the one 

generated by the compensation formula 

for that employee. The funds available 

for an Extraordinary Achievement 

Recognition are separately funded 

within the constraints of the 

organization’s budget. 

9. Base Pay Increases and Bonuses 

An employee’s shares will be paid out 

as a base pay increase, a bonus, or a 

combination. To continue to provide 

performance incentives while also 

ensuring cost discipline, base pay 

increases may be limited or capped. 

Certain employees will not be able to 

receive base pay increases due to base 

pay caps. Base pay is capped when an 

employee reaches the maximum rate of 

pay in an assigned pay band or when a 

performance-based rule applies (see 

paragraph 10 below). Employees 

affected by base pay caps and those 

receiving retained pay will receive the 

entire performance payout in the form 

of a bonus. 

If the AFC STRL organization deems 

it appropriate, the Pay Pool Manager 

may re-allocate a portion (up to the 

maximum possible amount) of the 

unexpended base pay funds for capped 

employees to uncapped employees. Any 

dollar increase in an employee’s 

projected base pay increase will be 

offset, dollar for dollar, by an 

accompanying reduction in the 

employee’s projected bonus payment. 

Thus, the employee’s total performance 

payout is unchanged. 

PFP bonuses and salary increases 

must be effective within 120 days of the 

end of the appraisal cycle. 

10. Performance-Based Rules 

As a compensation management tool, 

AFC STRL organizations may establish 

performance-based rules to manage pay 

progression by career path, pay band, 

geographic location, or any other 

grouping. If established, such 

performance-based rules must be 

approved by the PMB and published to 

the workforce prior to implementation. 

In addition, the process for obtaining an 

exception to such rules must be 

documented in the IOP. Once 

established, performance-based rules 

may be used in the pay pool process to 

manage performance salary increases. 

Examples of performance-based rules 

include rules similar to a Mid-Point 

Rule. For example, to provide added 

performance incentives as an employee 

progresses through a pay band, a midpoint rule may be used to determine 

base pay increases. The mid-point rule 

dictates that employees must receive a 

score of 30 or higher for their base pay 

to cross the salary midpoint of their pay 

band. Also, once an employee’s base 

pay exceeds the salary midpoint of their 

pay band, the employee must receive a 

score of 30 or higher to receive any 


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Figure 5 

41-50 2.1-3.0 

31-40 1.1-2.0 

21-30 0.1- 1.0 

11-20 0 

10 orless 0 and/or no GPI 

Figure 6. Share Value Formula 

F * L Basic Pay 

Share Value= ___ i-=_i_to_n __ , L (Bczsic Pay~: Shares) 

i=lton 
13566 Federal Register / Vol. 89, No. 36 / Thursday, February 22, 2024 / Notices 

additional base pay increases. Any 

amount of an employee’s performance 

payout, not paid in the form of a base 

pay increase because of the mid-point 

rule, would be paid as a bonus. This 

rule effectively raises the standard of 

performance expected of an employee 

once the salary midpoint of a pay band 

is crossed. This rule would apply to all 

employees in every career path and pay 

band. 

11. Awards 

To provide additional flexibility in 

motivating and rewarding individuals 

and groups, some portion of the 

performance award budget may be 

reserved for special acts and other 

categories as they occur. Awards may 

include, but are not limited to special 

acts, patents, suggestions, on-the-spot, 

and time-off. The funds available to be 

used for awards are separately funded 

within the constraints of the 

organization’s overall award budget. 

While not directly linked to the PFP 

system, this additional flexibility is 

important to encourage outstanding 

accomplishments and innovation in 

accomplishing the diverse 

modernization missions of the AFC 

STRL organizations participating in 

Mod Demo. Additionally, to foster and 

encourage teamwork among its 

employees, organizations may give 

group awards. 

12. General Pay Increase (GPI) 

All employees will receive a GPI, 

except as described below. 

Employees, who are on a PIP and/or 

receive a Level 1 rating of record at the 

time pay determinations are made, may 

be denied performance payouts or the 

GPI. Such employees will not receive 

RIF service credit until such time as 

their performance improves to the 

satisfactory level and remains so for at 

least 90 days. When the employee has 

performed at an acceptable level for at 

least 90 days, the GPI will not be 

retroactive but will be granted at the 

beginning of the next pay period after 

the supervisor authorizes its payment. 

These actions may result in a base 

salary that is identified in a lower pay 

band. This occurs because the minimum 

rate of basic pay in a pay band increases 

as the result of the GPI (5 U.S.C. 5303). 

This situation (a reduction in pay band 

with no reduction in pay) will not be 

considered an adverse action, nor will 

pay band retention provisions apply. 

After 90 days of acceptable 

performance the employee is granted 

GPI and the employee will be returned 

to the employee’s previous pay band. 

13. Grievances and Disciplinary Actions 

An employee may grieve the 

performance rating/score or shares 

received under the PFP system. Nonbargaining unit employees, and 

bargaining unit employees covered by a 

negotiated grievance procedure that 

does not permit grievances over 

performance ratings, must file under 

administrative grievance procedures 

when choosing to pursue a grievance. 

Whereas, bargaining unit employees 

whose negotiated grievance procedures 

cover performance-rating grievances 

must file under those negotiated 

procedures when choosing to pursue a 

grievance. 

Except where specifically waived or 

modified in this plan, adverse action 

procedures under 5 CFR part 752, 

remain unchanged. 

E. Hiring and Appointment Authorities 

Competitive service positions will be 

filled through Merit Staffing, direct-hire 

authority, Delegated Examining, or other 

non-competitive hiring authorities. 

Direct-hire authority will be exercised 

in accordance with the requirements of 

the delegation of authority. 

1. Qualifications 

A candidate’s basic qualifications will 

be determined using OPM’s 

Qualification Standards Handbook for 

General Schedule Positions. Candidates 

must meet the minimum standards for 

entry into the pay band, unless waived 

by other flexibilities within the STRL. 

For example, if the pay band includes 

positions in grades GS–5 and GS–7, the 

candidate must meet the qualifications 

for positions at the GS–5 level. 

Specialized experience/education 

requirements will be determined based 

on whether a position to be filled is at 

the lower or higher end of the pay band. 

Selective placement factors can be 

established in accordance with the OPM 

Qualification Handbook, when judged 

to be critical to successful job 

performance. These factors will be 

communicated to all candidates for 

position vacancies and must be met for 

basic eligibility. 

2. Delegated Examining 

Under Delegated Examining when 

there are no more than 15 qualified 

applicants and no preference eligible, 

all eligible applicants are immediately 

referred to the selecting official without 

rating and ranking. Rating and ranking 

may occur when the number of 

qualified candidates exceeds 15 or there 

is a mix of preference and nonpreference applicants. Category rating 

may be used to provide for a more 

streamlined and responsive hiring 

system to increase the number of 

eligible candidates referred to selecting 

officials. This provides for the grouping 

of eligible candidates into quality 

categories and the elimination of 

consideration according to the ‘‘rule of 

three.’’ This includes the coordination 

of recruitment and public notices, the 

administration of the examining 

process, the administration of veterans’ 

preference, the certification of 

candidates, and selection and 

appointment consistent with merit 

principles. 

Statutes and regulations covering 

veterans’ preference will be observed in 

the selection process when rating and 

ranking are required. Veterans with 

preference will be referred ahead of 

non-veterans with the same score/ 

category. 

3. Direct Hire 

AFC STRL will use the direct hire 

authorities authorized by 10 U.S.C. 

4091, and published in 79 FR 43722 and 

82 FR 29280; and the direct hire 

authorities published in 85 FR 78829, as 

appropriate, to appoint the following: 

a. Candidates with advanced degrees 

to scientific and engineering positions; 

b. Candidates with bachelor’s degrees 

to scientific and engineering positions; 

c. Veteran candidates to scientific, 

technical, engineering, and mathematics 

positions (STEM), including 

technicians; 

d. Student candidates enrolled in a 

program of instruction leading to a 

bachelors or advanced degree in a STEM 

discipline; and 

e. Candidates for any position: (i) 

involving 51 percent or more of time in 

direct support of the STRL mission; (ii) 

identified by the STRL as hard to fill; 

(iii) having a history of high turnover; or 

(iv) requiring a unique, laboratoryrelated skillset. 

Direct hire appointments may be 

made on a permanent, term or 

temporary basis. Requirements for how 

positions qualify for this usage of direct 

hire authorities will be documented in 

IOPs. 

In addition, other direct hire 

authorities, documented in FRNs and 

available to all DoD STRL laboratories, 

may be utilized, once requested, and 

adopted, as appropriate. 

4. Legal Authority 

For actions taken under the auspices 

of the demonstration project, the first 

legal authority code (LAC)/legal 

authority Z2U will be used. The second 

LAC/legal authority may identify the 

authority utilized (e.g., Direct Hires). 

The nature of action codes and legal 


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authority codes prescribed by OPM, 

DoD, or DA will be used. 

5. Hiring Demonstrated Exceptional 

Talent for S&E Positions 

As provided by OPM General 

Schedule Qualification Standards, 

paragraph 4.g., in the ‘‘Application of 

Qualification Standards’’ section, 

‘‘Educational and Training Provisions or 

Requirements’’ subsection, AFC STRL 

may consider an S&E position 

candidate’s demonstrated exceptional 

experience or a combination of 

experience and education in lieu of 

OPM individual occupational 

qualification requirements. The AFC 

STRL may use one SME, instead of a 

panel of at least two, to conduct a 

comprehensive evaluation of an 

applicant’s entire background, with full 

consideration given to both education 

and experience, to determine a 

candidate’s qualifications. In addition, 

the unique nature of AFC STRL 

interdisciplinary positions allows for an 

AFC STRL manager with direct 

knowledge of the mission and position 

requirements, regardless of his or her 

occupational series or military 

occupation code, to serve as a SME to 

represent the needs of the organization. 

Demonstrated exceptional experience 

is defined as experience that reflects 

significant accomplishment directly 

applicable to the position to be filled. 

This is evidenced through a substantial 

record of experience, achievement, and/ 

or publications that demonstrate 

expertise in an appropriate professional/ 

scientific field. A written analysis by the 

SME will document the candidate’s 

experience, achievements, and 

publications used for qualification 

determination. 

Documentation justifying the 

employee’s qualifications will be placed 

in the employee’s electronic official 

personnel file (e-OPF) to ensure the 

employee is considered qualifying for 

the specific occupational series in the 

future. 

6. Official Transcripts 

The requirement to have official 

transcripts prior to entrance-on-duty 

(EOD) is waived. AFC STRL servicing 

personnel offices may use unofficial 

transcripts or a letter from a registrar or 

dean to make qualification 

determinations, thus eliminating several 

days or weeks from the current hiring 

timeline. Official transcripts must be 

received within 30 calendar days after 

EOD. 

Once unofficial transcripts or a letter 

from a registrar or dean is received, the 

servicing personnel office will review 

qualifications and begin the onboarding 

process. Applicants will be asked to 

request and submit official transcripts to 

the servicing personnel office, but an 

EOD may be established prior to receipt. 

Applicants will sign a statement of 

understanding (SOU) as part of their 

pre-employment paperwork. The SOU 

will include language stipulating that if 

official transcripts are not provided or 

fail to show proof that individuals meet 

the qualification requirements, 

individuals may be subject to adverse 

actions up to and including removal, as 

determined by specific circumstances 

by applicable regulations. The SOU will 

regulate the applicants who do not have 

the degrees required for the positions or 

who may have been dishonest during 

the hiring process, lowering risk for the 

Command. 

The SOU will be maintained in the 

employee’s e-OPF. Once official 

transcripts have been received by the 

servicing personnel office, they will be 

verified in the personnel system and 

uploaded into the employee’s e-OPF. 

7. Use of USAJobs Flyers 

AFC STRL will have authority to 

determine when to utilize USAJobs 

flyers to solicit for AFC STRL positions. 

Applications may be submitted directly 

to the servicing personnel office. 

Candidates may apply through the link 

or email address found in the flyer. 

Postings may be open to internal 

Government employees and external 

U.S. citizen candidates. All candidates 

will be asked to submit supporting 

documentation, including a resume and 

official or unofficial transcripts. Flyers 

will include the following (a) open/ 

close dates, (b) compensation, (c) 

appointment type and work schedule, 

(d) duty location, (e) duties, (f) position 

information, (g) conditions of 

employment, (h) qualification 

requirements, (i) education 

requirements, (j) how candidates will be 

evaluated, (k) benefits, (l) how to apply, 

(m) an equal employment opportunity 

statement, and (n) any additional 

information determined necessary by 

the lab. 

Positions may be filled through direct 

hire authorities on a temporary, term, or 

permanent basis or through 

reassignment utilizing the USAJobs 

flyer. 

8. Security Eligibility 

AFC STRL has the authority to 

appoint individuals to Critical-Sensitive 

(CS) and Special-Sensitive positions 

prior to a final favorable eligibility 

determination at the Top Secret/SCI 

level. Processes and pre-employment 

waiver requirements for CS positions 

will be applied in these situations. For 

the purposes of STRLs, an emergency or 

national interest that necessitates an 

appointment prior to the completion of 

the investigation and adjudication 

process includes a lab’s inability to meet 

mission requirements. Each applicant’s 

Standard Form 86, ‘‘Questionnaire for 

National Security Positions,’’ 

fingerprints, and prescreening 

questionnaire will be reviewed, and a 

favorable pre-screening eligibility 

determination will be made prior to any 

individual being given a final job offer 

and EOD. Also, each lab will provide 

the written documentation needed to 

support a waiver decision to the 

appointing authority, who will 

document the reason for the 

appointment, and ensure the 

justification is sufficient before a final 

offer of employment is made. 

Individuals will perform duties and 

occupy a location permitted by their 

current security eligibility (interim or 

final), but not higher than Top Secret. 

The applicant will be required to sign a 

statement of understanding that 

documents that the pre-appointment 

decision was made based on limited 

information and that continued 

employment depends upon the 

completion of a personnel security 

investigation (tier 3 or 5) and favorable 

adjudication of the full investigative 

results. 

9. Term Appointments 

F. Flexible Length and Renewable Term 

Technical Appointments (FLRTTA) 

1. AFC STRL organizations may use 

the FLRTTA workforce shaping tool to 

appoint qualified candidates who are 

not currently DoD civilian employees, 

or are currently DoD term employees, 

into any scientific, technical 

engineering, and mathematic positions, 

including technicians, for a period of 

more than one year but not more than 

six years. The appointment of any 

individual under this authority may be 

extended without limit in up to six-year 

increments at any time during any term 

of service under conditions set forth in 

Mod Demo IOPs. 

2. Use of the FLRTTA authority must 

be consistent with merit system 

principles. 

3. Current DoD employees who are 

not DoD term employees may not be 

appointed to positions under this 

authority. 

4. Initial appointments must be more 

than one year, but not to exceed six 

years in duration. 

5. Individuals appointed under this 

authority may be eligible for 

noncompetitive conversion to a 

permanent appointment if the job 


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opportunity announcement clearly 

stated the possibility of being made 

permanent. 

6. Positions may be filled utilizing 

noncompetitive hiring authorities. 

Positions appointed noncompetitively 

will not be eligible for conversion or 

extension. This is not a hiring authority 

and STRLs must compete or use a direct 

hire or other non-competitive hiring 

authority to appoint candidates under 

this appointment authority. 

7. Unless otherwise eligible for a 

noncompetitive hiring authority, 

positions filled under this authority 

must be competed. Job opportunity 

announcements must clearly identify 

the type of appointment and the 

expected duration of initial 

appointment (up to six years). A 

statement will be included in the 

announcement that the position may be 

extended, without limit, in up to sixyear increments, to enable extensions 

beyond the initial term of appointment. 

Furthermore, the position can be made 

permanent without further competition. 

8. Appointees will be afforded equal 

eligibility for employee programs and 

benefits comparable to those provided 

to similar employees on permanent 

appointments within the AFC STRL, 

including opportunities for professional 

development and eligibility for award 

programs. 

9. Appointees will be afforded the 

opportunity to apply for vacancies that 

are otherwise limited to ‘‘status’’ 

candidates. Appointees applying to 

other Federal service positions utilizing 

this authority must submit a copy of 

their Flexible Length and Renewable 

Term Technical appointment SF–50, 

Notification of Personnel Action, which 

will contain a remark identifying this 

provision, with their application/ 

resume for the vacancy to which they 

are applying. The SF–50 will serve as 

notification to the servicing Human 

Resources Office for the vacancy that 

the individual is eligible for 

consideration as a status candidate. 

10. Promotions. Individuals 

appointed under this hiring authority 

may be promoted while serving on a 

term appointment, provided they meet 

the qualifications and eligibility 

requirements for the higher level to 

which they will be promoted. 

11. Extension of appointments. The 

appointment of an individual appointed 

to a term appointment under this 

authority may be extended, without 

limit, in up to six-year increments. The 

original recruitment notice must have 

identified the opportunity for an 

extension beyond the initial term of 

appointment. Extensions will be 

documented via a personnel action 

using nature of action code 765/ 

Extension of Term Appt NTE and the 

same legal authority code used for the 

appointment that is being extended. 

12. Expiration. Term appointments 

expire upon the not-to-exceed date, 

unless extended. 

13. Probationary/Trial Period. The 

trial period specified in this FRN will 

apply to individuals appointed under 

the Flexible Length and Renewable 

Term Appointment. 

14. Tenure. For those appointed 

under the Flexible Length and 

Renewable Term Technical 

Appointment authority or converted 

from a term or modified term to a 

Flexible Length and Renewable Term 

Technical Appointment and later 

converted to a career or careerconditional appointment, the time spent 

on both appointments will count toward 

career tenure. 

15. Documenting Personnel Actions. 

Personnel actions for qualified 

candidates are documented citing the 

first legal authority code (LAC)/legal 

authority as Z2U, if appointed to a 

broad-banded position. A remark for the 

personnel action will be created to state 

the appointment is designated as a 

‘‘status’’ appointment for the purposes 

of eligibility for applying for positions 

in the federal service. 

G. Flexible Length and Renewable Term 

Appointments for Support Positions 

(FLRTA) 

1. AFC STRL organizations are 

authorized to use FLRTA to appoint 

qualified candidates, whose positions 

involve 51 percent or more of time spent 

in direct support of STRL activities, for 

a period of more than one year but not 

more than six years. The appointment of 

any individual under this authority may 

be extended without limit in up to sixyear increments at any time during any 

term of service under conditions set 

forth in Mod Demo IOPs. The FLRTTA 

provisions described above also apply to 

appointments made under this 

authority. 

2. Term appointments, for the 

purposes of this authority, are nonstatus appointments to a position in the 

competitive service for a specified 

period of more than one year; however, 

incumbents may compete as ‘‘status 

candidates’’ for the purpose of eligibility 

for positions in the Federal service. 

3. Qualified candidates are defined as 

individuals who meet the minimum 

qualification standards for the position 

as published in the OPM Qualification 

Standard or Mod Demo qualification 

standards specific to the position to be 

filled. 

1. Extended Probationary or Trial Period 

At the discretion of the AFC STRL 

organizations, the probationary period 

for DoD employees may be extended to 

three years for all newly hired 

permanent career-conditional 

employees, and trial periods for term 

appointments may also be extended to 

three years, as documented in Mod 

Demo IOPs. The purpose of extending 

the probationary period is to allow 

supervisors adequate time to fully 

evaluate an employee’s ability to 

complete cycles of work and to fully 

assess an employee’s contribution and 

conduct. Other than described herein, 

the probationary period will apply to 

employees as stated in 5 CFR part 315. 

Aside from extending the time period, 

all other features of the current 

probationary or trial period are retained, 

including the requirements for 

determining creditable service as 

described in 5 CFR 315.802(c), and the 

potential to remove an employee 

without providing the full substantive 

and procedural rights afforded a nonprobationary employee when the 

employee fails to demonstrate proper 

conduct, competency, and/or adequate 

contribution during the extended 

probationary period. When terminating 

probationary or trial employees, AFC 

STRL organizations will provide 

employees with written notification of 

the reasons for their separation and 

effective date of the action. 

Probationary employees may be 

terminated when they fail to 

demonstrate proper conduct, technical 

competency, and/or acceptable 

performance for continued employment, 

and for conditions arising before 

employment. 

2. Supervisory Probationary Periods 

Supervisory probationary periods will 

be consistent with 5 CFR part 315, 

subpart I. Existing Federal employees 

who are competitively selected or 

reassigned to a supervisory position will 

be required to complete a supervisory 

probationary period for initial 

appointment to a supervisory position. 

At the discretion of the AFC STRL 

organizations, the probationary period 

for supervisory employees may be up to 

two years. Additional requirements will 

be outlined in Mod Demo IOPs. 

3. Reemployment of Annuitants 

AFC STRL will use the authorities 

provided by 5 U.S.C. 9902(g) to appoint 

reemployed annuitants, as appropriate. 

In addition, AFC STRL organizations 

may approve the appointment of 

reemployed annuitants and determine 

the salary of an annuitant reemployed 


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under this authority, including whether 

the annuitant’s salary will be reduced 

by any portion of the annuity received, 

up to the amount of the full annuity, as 

a condition of reemployment. 

a. AFC STRL organizations will apply 

the authority to appoint annuitants in 

accordance with this FRN, DoDI 

1400.25–V300 and Army guidance, 

except as stated above. Use of the 

authority must be consistent with merit 

system principles. 

b. Documenting Personnel Actions. 

For actions taken under the auspices of 

the demonstration project, the first legal 

authority code (LAC)/legal authority 

Z2U. The second LAC/legal authority 

may identify the authority utilized (e.g., 

Direct Hires). The nature of action codes 

and legal authority codes prescribed by 

OPM, DoD, or DA will be used. 

c. AFC STRL organizations will 

publish implementing guidance and 

procedures on the use of this 

reemployed annuitant flexibility in Mod 

Demo IOPs. 

d. Annuitants retired under 5 U.S.C. 

8336(d)(1) or 8414(b)(1)(A) who are 

reemployed will retain the rights 

provided in accordance with 5 U.S.C. 

9902(g)(2)(A). 

4. Student Loan Repayment 

AFC STRL may provide student loan 

repayment options authorized in 85 FR 

78829 that are in line with current 

tuition costs and may be adjusted based 

on inflation without higher level 

approval. This authority provides the 

AFC STRL the ability to repay all, or 

part of, an outstanding qualifying 

student loan or loans previously taken 

out by a current AFC STRL Mod Demo 

employee or candidate to whom an offer 

of employment has been made. The 

amount of student loan repayment 

benefits provided by an AFC STRL 

organization is subject to both of the 

following limits: 

a. Up to $25,000 per employee per 

calendar year. 

b. Up to $125,000 per employee. 

The USD(R&E) may increase these 

amounts when deemed necessary to stay 

competitive with private industry and 

academia. Eligibilities, conditions, 

qualifying student loans, and required 

service agreements remain the same as 

found in 5 CFR part 537. Loan payments 

made by an AFC STRL organization 

under this part do not exempt an 

employee from his or her responsibility 

and/or liability for any loan(s) the 

individual has taken out. The employee 

is responsible for any income tax 

obligations resulting from the student 

loan repayment benefit. 

F. Volunteer Emeritus and Expert 

Program (VEP) 

AFC STRL will have the authority to 

offer voluntary assignments to former 

Federal employees who have retired or 

separated from the Federal service and 

U.S. citizens who are retired, separated, 

or on sabbatical from private or public 

sector organizations. Volunteer emeritus 

will ensure continued quality research 

while reducing the overall salary line by 

allowing higher paid individuals to 

accept retirement incentives with the 

opportunity to retain a presence in the 

scientific community. Volunteer experts 

will bring commercial sector or public 

sector knowledge and experience into 

AFC STRL. Volunteers will not be used 

to replace any government personnel or 

interfere with their career opportunities. 

Volunteers may not be used to replace 

or substitute for work performed by 

government personnel occupying 

positions required to perform the AFC 

STRL’s mission. Volunteer assignments 

are not considered ‘‘employment’’ by 

the Federal government (except as 

indicated below). 

To be accepted as a volunteer, an 

individual must be a U.S. citizen and 

must be recommended by an AFC STRL 

manager to the AFC STRL organization 

approval authority. No one is entitled to 

participate in the program, and an 

application to the program does not 

guarantee acceptance into the program 

or assignment at AFC STRL. AFC STRL 

organizations must clearly document 

the decision process and decision 

rationale for each volunteer applicant 

(regardless of whether the applicant is 

accepted or rejected from the program) 

and must retain this documentation 

throughout the assignment (for accepted 

applicants), or for two years (for rejected 

applicants). Volunteer participants will 

not be permitted to perform any 

inherently governmental function or to 

participate in any contracts or 

solicitations for which the participant 

has a conflict of interest. Volunteer 

participants are not permitted to 

participate in contract source selections, 

nor are they permitted to have access to 

contractor bid or proposal information 

or source selection information, or to 

data or information that is protected by 

the Trade Secrets Act (18 U.S.C. 1905) 

without a written agreement between 

the volunteer and the owner of the data 

or information. 

To ensure success and encourage 

participation, the volunteer Emeritus’ 

Federal retirement pay (whether 

military or civilian) will not be affected 

while serving in a volunteer capacity. 

Retired or separated Federal employees 

may accept an emeritus position 

without a break or mandatory waiting 

period. 

An agreement will be established 

between the volunteer and the AFC 

STRL organization. The agreement will 

be reviewed by the servicing legal office. 

The agreement must be finalized before 

the assumption of duties and will 

include: 

(1) A statement that the voluntary 

assignment does not constitute an 

appointment in the civil service and is 

without compensation, and any and all 

claims against the Government (because 

of the voluntary assignment) are waived 

by the volunteer; 

(2) A statement that the volunteer will 

be considered a Federal employee solely 

for the purpose of: 

• 18 U.S.C. 201, 203, 205, 207, 208, 

209, 603, 606, 607, 643, 654, 1905, and 

1913; 

• 31 U.S.C. 1343, 1344, and 1349(b); 

• 5 U.S.C. chapters 73 and 81; 

• The Ethics in Government Act of 

1978; 

• 41 U.S.C. chapter 21; 

• 28 U.S.C. chapter 171 (tort claims 

procedure), and any other Federal tort 

liability statute; 

• 5 U.S.C. 552a (records maintained 

on individuals) 

(3) The volunteer’s work schedule; 

(4) The length of the agreement 

(defined by length of project or time 

defined by weeks, months, or years); 

(5) The support to be provided by the 

AFC STRL organization (travel, 

administrative, office space, supplies); 

(6) The volunteer’s duties; 

(7) A provision allowing either party 

to void the agreement with at least two 

working days’ written notice; 

(8) A provision that states no 

additional time will be added to a 

volunteer’s service credit for such 

purposes as retirement, severance pay, 

and leave as a result of being a 

participant in the VEP; 

(9) The level of security access 

required (any security clearance 

required by the assignment will be 

managed by the AFC STRL organization 

while the participant is a member of the 

VEP); 

(10) A provision that any written 

products prepared for publication that 

are related to VEP participation will be 

submitted to the AFC STRL organization 

for review and must be approved prior 

to publication; 

(11) A statement that the volunteer 

accepts accountability for loss or 

damage to Government property 

occasioned by the volunteer’s 

negligence or willful action; 

(12) A statement that the activities of 

the volunteer on the premises will 

conform to the regulations and 

requirements of the organization; 


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(13) A statement that the volunteer 

will not improperly use or disclose any 

non-public information, including any 

pre-decisional or draft deliberative 

information related to DoD 

programming, budgeting, resourcing, 

acquisition, procurement, or other 

matter, for the benefit or advantage of 

the volunteer or any non-Federal 

entities. Volunteers will handle all nonpublic information in a manner that 

reduces the possibility of improper 

disclosure; 

(14) A statement that the volunteer 

agrees to disclose any inventions made 

in the course of work performed for AFC 

STRL. AFC STRL will have the option 

to obtain title to any such invention on 

behalf of the U.S. Government. Should 

the AFC CG elect not to take title, AFC 

will retain a non-exclusive, irrevocable, 

paid up, royalty-free license to practice 

or have practiced the invention 

worldwide on behalf of the U.S. 

Government; 

(15) A statement that the volunteer 

must complete either a Confidential or 

Public Financial Disclosure Report, 

whichever applies; a disqualification 

statement prohibiting the volunteer 

from working on matters related to his 

or her former employer; and ethics 

training in accordance with Office of 

Government Ethics regulations prior to 

implementation of the written 

agreement; and 

(16) A statement that the volunteer 

must receive post-government 

employment advice from a DoD ethics 

counselor at the conclusion of program 

participation. Volunteers are deemed 

Federal employees for purposes of postgovernment employment restrictions. 

A written Memorandum of Agreement 

(MOA) between the AFC STRL 

organization and the volunteer is 

required and must include all items 

above, regardless of format used. The 

use and wording of the MOA will be 

provided in the IOPs of the AFC STRL 

organizations. 

G. Internal Placement 

1. Promotion 

A promotion is the movement of an 

employee to a higher pay band in the 

same career path or to another career 

path, wherein the pay band in the new 

career path has a higher maximum base 

pay than the pay band from which the 

employee is moving. Positions with 

known promotion potential to a specific 

pay band within a career path will be 

identified when they are filled. 

Movement from one career path to 

another will depend upon individual 

competencies, qualifications, and the 

needs of the organization. Salary 

progression within a pay band is not 

considered a promotion and not subject 

to the provisions of this section. Except 

as specified below, promotions will be 

processed under competitive procedures 

in accordance with Merit System 

Principles and requirements of the local 

merit promotion plan. 

To be promoted competitively or noncompetitively from one pay band to the 

next, an employee must meet the 

minimum qualifications for the job and 

may not have a Level 1 rating of record. 

If an employee does not have a current 

performance rating, the employee will 

be treated the same as an employee with 

a Level 2 rating of record as long as 

there is no documented evidence of 

unacceptable performance. 

2. Reassignment 

A reassignment is the movement of an 

employee from one position to a 

different position within the same 

career path and pay band or to another 

career path and pay band wherein the 

pay band in the new career path has the 

same maximum base pay. The employee 

must meet the qualification 

requirements for the career path and pay 

band. 

3. Placement in a Lower Pay Band or 

Grade 

An employee may be placed in a 

lower pay band within the same career 

path or placement into a pay band in a 

different career path with a lower 

maximum base pay. This change may be 

voluntary based on a request from the 

employee or involuntary, for cause 

(performance or conduct) or for reasons 

other than cause (e.g., erosion of duties, 

reclassification of duties to a lower pay 

band, placement actions resulting from 

RIF procedures). Involuntary actions 

will be executed using the applicable 

adverse action procedures in 5 U.S.C. 

chapter 43 or chapter 75. 

4. Simplified Assignment Process 

Today’s environment of remote work 

and fluctuating budgets, workforce and 

workload require that the organization 

have maximum flexibility to assign 

duties and responsibilities to 

individuals. Pay banding can be used to 

address this need, as it enables the 

organization to have maximum 

flexibility to assign an employee with 

no change in base pay, within broad 

descriptions, consistent with the needs 

of the organization and the individual’s 

qualifications, and level. Subsequent 

assignments to projects, tasks, or 

functions anywhere within the 

organization requiring the same level, 

area of expertise, and qualifications 

would not constitute an assignment 

outside the scope or coverage of the 

current position description. For 

instance, a Research Psychologist could 

be assigned to any project, task, or 

function requiring similar expertise. 

Likewise, a manager/supervisor could 

be assigned to manage any similar 

function or organization consistent with 

that individual’s qualifications. This 

flexibility allows broader latitude in 

assignments and further streamlines the 

administrative process and system. 

Execution of such actions may require 

fulfilling labor obligations, where 

applicable. 

5. Details and Expanded Temporary 

Promotions 

Employees may be detailed to a 

position at the same or similar level 

(position in a pay band with the same 

maximum salary). Additionally, 

employees may be temporarily 

promoted to a position in a pay band 

with a higher maximum salary. Details 

and temporary promotions may be 

competitive or non-competitive under 

the AFC STRL Mod Demo and may last 

up to one year, with the option to 

extend an additional year. Employees 

selected non-competitively for details 

and temporary promotions may only 

serve in those assignments for a total of 

two years out of every thirty months. An 

employee may be detailed to a position 

without a change in pay or may be 

provided a base pay increase when the 

detail significantly increases the 

complexity of the duties, level of 

responsibility, or authority, or for other 

compelling reasons. Such an increase is 

subject to the specific guidelines 

established by AFC STRL organizations 

as published in their IOP’s. Details and 

temporary promotions may be 

determined by a competitive or a noncompetitive process. 

6. Exceptions to Competitive Procedures 

for Assignment to a Position 

The following actions are excepted 

from competitive procedures: 

a. Re-promotion to a position which is 

in the same pay band or GS equivalent 

and career path as the employee 

previously held on a permanent basis 

within the competitive service. 

b. Promotion, reassignment, change to 

lower pay band, transfer, or 

reinstatement to a position having 

promotion potential no greater than the 

potential of a position an employee 

currently holds or previously held on a 

permanent basis in the competitive 

service. 

c. A position change permitted by RIF 

procedures. 

d. Promotion without current 

competition when the employee was 


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appointed through competitive 

procedures to a position with a 

documented career ladder. 

e. A temporary promotion, or detail to 

a position in a higher pay band, of two 

years or less. 

f. A promotion due to the 

reclassification of positions based on 

accretion (addition) of duties. 

g. A promotion resulting from the 

correction of an initial classification 

error or the issuance of a new 

classification standard. 

h. Consideration of a candidate who 

did not receive proper consideration in 

a competitive promotion action. 

H. Pay Setting 

1. General 

Pay administration policies will be 

established by the AFC STRL 

organizations. These policies will be 

exempt from Army Regulations or local 

pay fixing policies. Employees whose 

performance is acceptable will receive 

the full annual GPI and the full locality 

pay. AFC STRL organizations shall have 

delegated authority to make full use of 

recruitment, retention, and relocation 

payments as currently provided for by 

OPM. 

2. Pay and Compensation Ceilings 

A demonstration project employee’s 

total monetary compensation paid in a 

calendar year may not exceed the base 

pay of Level I of the Executive Schedule 

consistent with 5 U.S.C. 5307 and 5 CFR 

part 530 subpart B, except employees 

placed in an SSTM position. In 

addition, each pay band will have its 

own pay ceiling, just as grades do in the 

GS system. Base pay rates for the 

various pay bands will be directly tied 

to the GS rates, except as noted for S&E 

Level V (SSTMs). Other than where a 

retained rate applies, base pay will be 

limited to the maximum base pay 

payable for each pay band. 

The minimum basic pay for SSTM 

positions is 115 percent of the minimum 

rate of basic pay for GS–15. Maximum 

SSTM basic pay with locality pay is 

limited to Executive Level III (EX–III), 

and maximum salary without locality 

pay may not exceed EX–IV. SSTMs are 

eligible for pay retention as described in 

79 FR 43727. 

3. Pay Setting for Appointment 

For initial appointments to Federal 

service, the individual’s pay may be set 

at the lowest base pay in the pay band 

or anywhere within the pay band 

consistent with the special 

qualifications of the individual, specific 

organizational requirements, the unique 

requirements of the position, or other 

compelling reasons. These special 

qualifications may be in the form of 

education, training, experience, or any 

combination thereof that is pertinent to 

the position in which the employee is 

being placed. Guidance on pay setting 

for new hires will be documented in 

IOPs. 

4. Pay Setting for Promotion 

The minimum base pay increase upon 

promotion will be six percent or the 

minimum base pay rate of the new pay 

band, whichever is greater. The 

maximum amount of a pay increase for 

a promotion may be up to the top of the 

pay band consistent with the special 

qualifications of the individual, specific 

organizational requirements, the unique 

requirements of the position, or other 

compelling reason. Additional criteria 

will be specified in the IOPs. For 

employees assigned to occupational 

categories and geographic areas covered 

by special rates, the minimum base pay 

is the minimum rate in the pay band or 

the corresponding special rate or 

locality rate, whichever is greater. For 

employees covered by a staffing 

supplement as described in Paragraph 

III.G.9 below, the demonstration staffing 

supplement adjusted pay is considered 

base pay for promotion calculations. 

When a temporary promotion is 

terminated, the employee’s pay 

entitlements will be re-determined 

based on the employee’s position of 

record, with appropriate adjustments to 

reflect pay events during the temporary 

promotion, subject to the specific 

policies and rules established in Mod 

Demo IOPs. In no case may those 

adjustments increase the base pay for 

the position of record beyond the 

applicable pay range maximum base pay 

rate. 

5. Pay Setting for Reassignment 

A reassignment may be made without 

a change in the employee’s base pay. 

However, up to ten percent base pay 

increase may be granted where a 

reassignment significantly increases the 

complexity, responsibility, authority, or 

for other compelling reasons subject to 

the specific guidelines established in 

Mod Demo IOPs. In no case may those 

adjustments increase the base pay for 

the position of record beyond the 

applicable pay range maximum base pay 

rate. 

6. Pay Setting for Change to Lower Pay 

Band 

Employees subject to an involuntarily 

change to lower pay band for cause 

(performance or conduct) or voluntary 

change to lower pay band (request or 

selection to new position) are not 

entitled to pay retention and may 

receive a decrease in base pay. 

Employees subject to an involuntary 

change to a lower pay band for reasons 

other than cause (e.g., erosion of duties, 

reclassification of duties to a lower pay 

band, or placement actions resulting 

from RIF procedures) may be entitled to 

pay retention in accordance with the 

provisions of 5 U.S.C. 5363, 5 CFR part 

536, and DoDI 1400.25 Vol 536, except 

as waived or modified in section IX of 

this plan. 

7. Supervisory and Team Leader Pay 

Adjustments 

Supervisory and team leader pay 

adjustments may be approved based on 

the rules established in Mod Demo 

IOPs, to compensate employees with 

supervisory or team leader 

responsibilities. Supervisory and team 

leader pay adjustments are a tool that 

may be implemented at the discretion of 

the AFC STRL organization and are not 

to be considered an employee 

entitlement due solely to his/her 

position as a supervisor or team leader. 

Only employees in supervisory or team 

leader positions as defined by the OPM 

GS Supervisory Guide or GS Leader 

Grade Evaluation Guide may be 

considered for the pay adjustment. Pay 

adjustments are increases to base pay, 

ranging up to 10 percent of that pay rate 

for supervisors and for team leaders, 

and are subject to the constraint that the 

adjustment may not cause the 

employee’s base pay to exceed the 

maximum of the pay band. Pay 

adjustments are funded separately from 

performance pay pools. 

A supervisory/team leader pay 

adjustment may be considered under 

the following conditions: 

a. A career employee selected for a 

supervisory/team leader position may 

be considered for a base pay adjustment. 

If a supervisor/team leader is already 

receiving a base pay adjustment and is 

subsequently selected for another 

supervisor/team leader position, then 

the base pay adjustment will be redetermined. 

b. The supervisory/team leader pay 

adjustment will be reviewed annually, 

or more often as needed, and may be 

increased or decreased by a portion or 

by the entire amount of the supervisory/ 

team leader pay adjustment based upon 

the employee’s performance appraisal 

score. If the entire portion of the 

supervisory/team leader pay adjustment 

is to be decreased, the initial dollar 

amount of the supervisory/team leader 

pay adjustment will be removed. A 

decrease to the supervisory/team leader 

pay adjustment as a result of the annual 

review or when an employee voluntarily 


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leaves a position is not an adverse 

action and is not subject to appeal. 

All personnel actions involving a 

supervisory/team leader pay adjustment 

will require a statement signed by the 

employee acknowledging that the pay 

adjustment may be terminated or 

reduced at the discretion of the 

organization or will cease when an 

employee leaves a supervisory position. 

The cancellation of the adjustment is 

not an adverse action and is not 

appealable. 

8. Supervisory/Team Leader Pay 

Differentials 

Supervisory and team leader pay 

differentials may be used to provide an 

incentive and reward supervisors and 

team leaders. Supervisory and team 

leader pay differentials are a tool that 

may be implemented at the discretion of 

the AFC STRL organization and are not 

entitlements due to employees based on 

their position. A pay differential is a 

cash incentive that may range up to 10 

percent of base pay for supervisors and 

for team leaders. It is paid on a pay 

period basis with a specified not-toexceed (NTE) of one year or less and is 

not included as part of the base pay. 

Criteria to be considered in determining 

the amount of the pay differential will 

be identified in the AFC organization 

IOP. Pay differentials are not funded 

from performance pay pools. 

For SSTM personnel, this incentive 

may range up to five percent of base pay 

(excluding locality pay). The SSTM 

supervisory pay differential is paid on a 

pay period basis with a specified not-toexceed date up to one year and may be 

renewed as appropriate. 

The supervisory pay differential may 

be considered, either during conversion 

into or after initiation of the AFC STRL 

Mod Demo. The differential must be 

terminated if the employee is removed 

from a supervisory position, regardless 

of cause, or no longer meets established 

eligibility criteria. 

All personnel actions involving a 

supervisory/team leader differential will 

require a statement signed by the 

employee acknowledging that the 

differential may be terminated or 

reduced at the discretion of the 

organization. The termination or 

reduction of the supervisory differential 

is not considered an adverse action 

under 5 U.S.C. chapter 75 and is not 

subject to appeal with the Merit Systems 

Protection Board. 

9. Staffing Supplements 

Employees assigned to occupational 

categories and geographic areas covered 

by special rates will be entitled to a 

staffing supplement if the maximum 

adjusted rate for the banded GS grades 

to which assigned is a special rate that 

exceeds the maximum GS locality rate 

for the banded grades. The staffing 

supplement is added to the base pay, 

much like locality rates are added to 

base pay. For employees being 

converted into the demonstration 

project, total pay immediately after 

conversion will be the same as 

immediately before, but a portion of the 

total pay will be in the form of a staffing 

supplement. Adverse action and pay 

retention provisions will not apply to 

the conversion process, as there will be 

no change in total salary. Specific 

provisions will be described in Mod 

Demo IOPs. 

10. Grade and Pay Retention 

Grade retention provisions under 5 

U.S.C. 5362 and 5 CFR part 536 will not 

be applicable to the AFC STRL Mod 

Demo. For purposes of actions within 

the AFC STRL Mod Demo that provide 

entitlement to pay retention, the 

provisions of 5 U.S.C. 5363 and 5 CFR 

part 536 apply, except as waived or 

modified in section IX of this FRN. 

Wherever the term ‘‘grade’’ is used in 

the law or regulation, the term ‘‘pay 

band’’ will be substituted. The AFC 

STRL Mod Demo organizations may 

grant pay retention to employees who 

meet general eligibility requirements, 

but do not have specific entitlement by 

law, provided they are not specifically 

excluded. 

11. Distinguished Contribution 

Allowance (DCA) the Distinguished 

Contribution 

Allowance may be used by AFC STRL 

organizations to provide an increased 

capability to recognize and incentivize 

employees who are: 

(a) Consistently extremely high-level 

performers, and 

(b) Paid at the top of their pay band 

level. 

Eligibility for DCA is open to 

employees in all career paths. A DCA, 

when added to an employee’s pay 

(including locality pay and any 

supervisory differential), may not 

exceed the rate of basic pay for 

Executive Level I. DCA is paid on either 

a bi-weekly basis or as a lump sum 

following completion of a designated 

performance period, or combination of 

these. DCA is not an entitlement and is 

used at the discretion of AFC STRL 

organization to reward and retain high 

performing employees. DCA is not base 

pay for any purpose, such as retirement, 

life insurance, severance pay, 

promotion, or any other payment or 

benefit calculated as a percentage of 

base pay. Employees may receive a DCA 

for up to five years but not more than 

10 cumulative years over an employee’s 

entire career. The DCA will be reviewed 

on an annual basis for continuation or 

termination. Further details will be 

published in Mod Demo IOPs. 

12. Accelerated Compensation for 

Developmental Positions (ACDP) 

The AFC STRL Mod Demo 

organizations may authorize an increase 

to basic pay for employees participating 

in training programs, internships, or 

other development capacities. This may 

include employees in positions that 

cross bands within a career path 

(formally known as career ladder 

positions) or developmental positions 

within a band. ACDP will be used to 

recognize development of job-related 

competencies as evidenced by 

successful performance within AFC 

STRL Mod Demo. Additional guidance 

will be published in an IOP. 

13. Supplemental Pay 

AFC STRL organizations may 

establish supplemental pay rates to be 

paid bi-weekly, as other pay, for those 

positions which warrant higher 

compensation than that provided by the 

established pay band salary ranges, 

STRL staffing supplements or 

differentials, or other recruitment or 

retention authorities. AFC STRL 

organizations may establish 

supplemental pay rates by occupational 

series, specialty, competency, pay band 

level, and/or geographical area. In 

establishing such rates, AFC STRL 

organizations may consider: Rates of 

pay offered by non-Federal or other 

alternative pay system employers that 

are considerably higher than rates 

payable by the AFC STRL organization; 

the remoteness of the area or location 

involved; the undesirability of the 

working conditions or nature of the 

work involved; evidence that the 

position is of such a specialized nature 

that very few candidates exist; numbers 

of employees who have voluntarily left 

positions; evidence to support a 

conclusion that recruitment or retention 

problems likely will develop (if such 

problems do not already exist) or will 

worsen; consideration of use of other 

pay flexibilities as well as the use of 

non-pay solutions; or any other 

circumstances the AFC STRL 

organization considers appropriate. 

Documentation of the determination 

will be maintained by the AFC STRL 

organization. 

This supplemental pay is in addition 

to any other pay, such as locality-based 

comparability payments authorized 

under 5 U.S.C. 5304 and may result in 

compensation above Level IV of the 


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Executive Schedule but may not exceed 

Level I of the Executive Schedule. 

The AFC STRL organizations have an 

ongoing responsibility to evaluate the 

need for continuing payment of the 

supplemental pay and shall terminate or 

reduce the amount if conditions 

warrant. Conditions to be considered 

are: changes in labor-market factors; the 

need for the services or skills of the 

employee has reduced to a level that 

makes it unnecessary to continue 

payment at the current level; or 

budgetary considerations make it 

difficult to continue payment at the 

current level. The reduction or 

termination of the payment is not 

considered an adverse action and may 

not be appealed or grieved. The 

applicant or employee will sign a 

statement of understanding outlining 

that the supplement may be reduced or 

terminated at any time based on 

conditions as determined by the AFC 

STRL organization. The documentation 

of the determination will be maintained 

by the AFC STRL organization. 

14. Retention Counteroffers 

The AFC STRL organizations may 

offer a retention counteroffer to retain 

high performing employees in scientific, 

technical, or administrative positions 

who present evidence of an alternative 

employment opportunity (Federal or 

non-Federal organizations) with higher 

compensation. Such employees may be 

provided increased base pay (up to the 

ceiling of the pay band) and/or a onetime cash payment that does not exceed 

50 percent of one year of base pay. This 

flexibility addresses the expected 

benefits described in paragraph II.C, 

particularly ‘‘increased retention of 

high-quality employees.’’ Retention 

allowances, either in the form of a base 

pay increase and/or a bonus, count 

toward the Executive Level I aggregate 

limitation on pay consistent with 5 

U.S.C. 5307, and 5 CFR part 530, 

subpart B. Further details will be 

published in Mod Demo IOPs. 

I. Employee Development 

1. Training for Degrees 

Degree training is an essential 

component of an organization that 

requires continuous acquisition of 

advanced and specialized knowledge. 

Degree training in the academic 

environment of laboratories is also a 

critical tool for recruiting and retaining 

employees with critical skills. 

Constraints under current law and 

regulation limit degree payment to 

shortage occupations. In addition, 

current government-wide regulations 

authorize payment for degrees based 

only on recruitment or retention needs. 

Degree payment is currently not 

permitted for non-shortage occupations 

involving critical skills. 

AFC STRL organizations may expand 

the authority to provide degree training 

for purposes of meeting critical skill 

requirements, to ensure continuous 

acquisition of advanced and specialized 

knowledge essential to the organization, 

or to recruit and retain personnel 

critical to the present and future 

requirements of the organization. It is 

expected that the degree payment 

authority will be used primarily for 

attainment of advanced degrees. AFC 

STRL organizations will document 

guidelines and rules for using this 

authority in Mod Demo IOPs. 

2. Sabbaticals 

AFC Mod STRL organizations may 

grant paid sabbaticals to career 

employees to permit them to engage in 

study or uncompensated work 

experience that will contribute to their 

development and effectiveness. Each 

sabbatical should benefit AFC as well as 

increase the employee’s individual 

effectiveness. Examples are as follows: 

advanced academic teaching, study, or 

research; self-directed (independent) or 

guided study; and on-the-job work 

experience with a public, private, or 

nonprofit organization. Each recipient of 

a sabbatical must sign a continued 

service agreement and agree to serve a 

period equal to at least three times the 

length of the sabbatical. AFC STRL 

organizations will document guidelines 

and rules for using this authority in 

their IOPs. 

J. Voluntary Early Retirement (VERA) 

and Voluntary Separation Incentive Pay 

(VSIP) 

AFC STRL will use the authorities 

provided by 5 U.S.C. 9902(f) to offer 

VERA and VSIP, as appropriate. The 

AFC CG may: 

(1) Approve the use of voluntary early 

retirement and separation pay 

incentives; 

(2) Determine which categories of 

employees should be offered such 

incentives; and 

(3) Determine the amount of voluntary 

separation incentive payments. 

AFC STRL organization IOPs will 

contain procedures to validate and 

document that payment of an incentive 

to an employee is fully warranted and 

will judiciously ensure that eligibility 

factors specified in DoDI 1400.25, 

Volume 1702, ‘‘DoD Civilian Personnel 

Management System: Voluntary 

Separation Programs,’’ other than those 

waived in this FRN, are applied. 

Before authorizing the use of VERA 

and VSIP incentives, the AFC CG must 

determine that the use of such 

incentives is necessary to shape the 

laboratory workforce to better fulfill 

mission requirements and achieve the 

optimum workforce balance. If the 

laboratory workforce is being 

downsized, incentives may be used to 

minimize the need for involuntary 

separations under RIF procedures. In 

this downsizing scenario, early 

retirement and/or separation incentive 

pay may be offered to surplus 

employees who would otherwise be 

separated through RIF or to non-surplus 

employees whose positions could then 

be used to avert the involuntary RIF 

separation of surplus employees. 

VERA and VSIP incentives may also 

be used to restructure the laboratory 

workforce without reducing the number 

of assigned personnel. In this 

restructuring scenario, incentives may 

be offered for the purpose of creating 

vacancies that will be reshaped to align 

with mission objectives. Restructuring 

incentives are helpful in situations such 

as correcting an imbalance of skills or 

for delayering an organization. 

VERA and VSIP will be administered 

as described in this Notice. Both 

authorities are authorized and may be 

used together or separately. 

(1) Par. 2.a.(6)(b) is waived to the 

extent that AFC STRL organizations 

may utilize the vacancy to correct a 

skills mismatch without restructuring 

the position. 

(2) Par. 2.a.(7) is waived to the extent 

that AFC STRL organizations may offer 

VSIP in an amount set by the AFC CG 

annually, without regard to the amount 

of severance pay employees would 

receive under 5 U.S.C. 5595(c) if the 

employees were entitled to severance 

pay. AFC STRL organizations will 

document their rationale for 

determining payment amounts. 

(3) Par. 2.b.(3)(d) is waived to the 

extent that a waiver is not required for 

employees occupying positions defined 

as ‘‘hard to fill.’’ 

(4) Par. 2.c. is waived to the extent 

that AFC STRL organization approval 

authorities may approve voluntary 

separation incentives for Senior 

Scientific Technical Managers (SSTMs). 

The SSTM position need not be 

abolished and may be restructured to 

meet mission requirements. 

(5) Par. 2.g.(1) is waived to the extent 

that the AFC STRL organizations may 

pay up to an amount approved by the 

AFC CG for VSIP from appropriations or 

accounts available for such purposes to 

avoid an involuntary separation or to 

affect a restructuring action. 


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AFC STRL organizations will 

establish implementing guidance and 

procedures in their IOPs. 

IV. Conversion 

A. Conversion Into the Demonstration 

Project 

Organizational conversion to the AFC 

STRL Mod Demo occurs when a new 

organization or a group of employees 

convert into the demonstration project. 

Conversion from current GS grade or 

other pay banding system into AFC 

STRL Mod Demo will be accomplished 

during implementation of the 

demonstration project. Initial entry into 

the demonstration project will be 

accomplished through a full employeeprotection approach that ensures each 

employee an initial place in the 

appropriate career path and pay band 

without loss of pay or earning potential. 

Employees are converted into a career 

path (i.e., DB, DE, DK) based upon their 

occupational series and in a pay band 

that includes their current grade/band. 

The GS–14 grade occurs in two pay 

bands of the S&E and B&T career paths, 

which are pay band III and pay band IV. 

The conversion of GS–14 employees 

will be in Pay Band IV during initial 

conversion into AFC STRL Mod Demo. 

After initial conversion, former GS–14 

employees will be assigned based on 

classification requirements. Additional 

guidance will be included in AFC STRL 

Mod Demo IOPs, and conversion 

operations will be overseen by the PMB. 

Under the GS pay structure, 

employees progress through their 

assigned grade in step increments. Since 

this system is being replaced under the 

demonstration project, employees will 

be awarded that portion of the next 

higher step they have completed up 

until the effective date of conversion. 

Rules governing Within Grade 

Increases (WGIs) will continue in effect 

until conversion. Adjustments to the 

employee’s base salary for WGI equity 

will be computed as of the effective date 

of conversion. WGI equity will be 

acknowledged by increasing base pay by 

a prorated share based upon the number 

of full weeks an employee has 

completed toward the next higher step. 

Payment will equal the value of the 

employee’s next WGI multiplied by the 

proportion of the waiting period 

completed (weeks completed in waiting 

period/weeks in the waiting period) at 

the time of conversion. Employees at 

step 10, or receiving retained rates, on 

the day of implementation will not be 

eligible for WGI equity adjustments 

since they are already at or above the 

top of the step scale. Employees serving 

on retained grade will receive WGI 

equity adjustments provided they are 

not at step 10 or receiving a retained 

rate. 

Employees serving under temporary 

and term appointments will be 

converted and may continue their 

temporary and term appointments up to 

their established, current NTE date. 

Extensions of temporary appointments 

after conversion may be extended based 

on original appointment and Temporary 

and Term guidance identified in this 

FRN. 

Employees on a PIP will remain in 

their current system until the 

conclusion of the PIP and a decision is 

rendered. 

Conversion rules will apply to 

employees who did not convert initially 

or who are in positions that are 

involuntarily reassigned to the AFC 

STRL Mod Demo. If conversion into the 

demonstration project is accompanied 

by a geographic move, the employee’s 

GS pay entitlements in the new 

geographic area must be determined 

before performing the pay conversion. 

The project will eliminate retained 

grade under 5 U.S.C. 5362 and 5 CFR 

part 536. At the time of conversion, an 

employee on grade retention will be 

converted to the career path and 

broadband level based on the assigned 

permanent position of record, not the 

retained grade, and if eligible will be 

placed on pay retention. Pay retention 

will be administered using the 

provisions at 5 U.S.C. 5363 and 5 CFR 

part 536, except as modified in the 

Staffing Supplements section and 

waived in Section IX of this plan. 

Initial probationary period. 

Employees who have completed an 

initial probationary period prior to 

conversion will not be required to serve 

a new or extended initial probationary 

period. Employees who are serving an 

initial probationary period upon 

conversion from GS will serve the time 

remaining on their initial probationary 

period. 

Supervisory probationary period. 

Employees who have completed a 

supervisory probationary period prior to 

conversion will not be required to serve 

a new or extended supervisory 

probationary period while in their 

current position. Employees who are 

serving a supervisory probationary 

period upon conversion will serve the 

time remaining on their supervisory 

probationary period. 

B. Conversion or Movement From a 

Project Position to a General Schedule 

Position 

If a demonstration project employee is 

moving to a GS position not under the 

demonstration project, or if the project 

ends and each project employee must be 

converted back to the GS system, the 

following procedures will be used to 

convert the employee’s project career 

path and pay band to a GS-equivalent 

grade and the employee’s project rate of 

pay to GS equivalent rate of pay. 

The converted GS grade and GS rate 

of pay must be determined before 

movement or conversion out of the 

demonstration project and any 

accompanying geographic movement, 

promotion, or other simultaneous 

action. For conversions upon 

termination of the project and for lateral 

reassignments, the converted GS grade 

and rate will become the employee’s 

actual GS grade and rate after leaving 

the demonstration project (before any 

other action). For employee movement 

from within DoD (transfers), 

promotions, and other actions, the 

converted GS grade and rate will be 

used in applying any GS pay 

administration rules applicable in 

connection with the employee’s 

movement out of the project (e.g., 

promotion rules, highest previous rate 

rules, pay retention rules), as if the GS 

converted grade and rate were in effect 

immediately before the employee left 

the demonstration project. 

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 adjusted rate of 

basic pay under the demonstration 

project (including any locality payment 

or staffing supplement) is compared 

with step four rates on the highest 

applicable GS rate range. (For this 

purpose, a ‘‘GS rate range’’ includes a 

rate in (1) the GS base schedule, (2) the 

locality rate schedule for the locality 

pay area in which the position is 

located, or (3) the appropriate special 

rate schedule for the employee’s 

occupational series, as applicable.) If the 

series is a two-grade interval series, oddnumbered grades are considered below 

GS–11. 

b. If the employee’s adjusted project 

rate equals or exceeds the applicable 

step four rate of the highest GS grade in 

the band, the employee is converted to 

that grade. 

c. If the employee’s adjusted project 

rate is lower than the applicable step 

four rate of the highest grade, the 

adjusted rate is compared with the step 

four rate of the second highest grade in 

the employee’s pay band. If the 

employee’s adjusted rate equals or 

exceeds step four rate of the second 


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highest grade, the employee is 

converted to that grade. 

d. This process is repeated for each 

successively lower grade in the pay 

band until a grade is found in which the 

employee’s adjusted project rate equals 

or exceeds the applicable step four rate 

of the grade. The employee is then 

converted at that grade. If the 

employee’s adjusted rate is below the 

step four rate of the lowest grade in the 

pay band, the employee is converted to 

the lowest grade. 

e. Exception: An employee will not be 

converted to a lower grade than the 

grade held by the employee 

immediately preceding a conversion, 

lateral reassignment, or transfer from 

within DoD into the project, unless 

since that time the employee has 

undergone a reduction in pay band or 

accepted a lower pay band position. 

If an employee is retaining a rate 

under the demonstration project, the 

employee’s GS-equivalent grade is the 

highest grade encompassed in his or her 

pay band. 

2. Equivalent Increase Determinations 

Service under the AFC STRL Mod 

Demo is creditable for WGI purposes 

upon conversion back to the GS pay 

system. Performance pay increases 

(including a zero increase) under the 

demonstration project are equivalent 

increases for the purpose of determining 

the commencement of a WGI waiting 

period under 5 CFR 531.405(b). 

3. Termination of Coverage Under the 

Demonstration Project Pay Plans 

In the event employees’ coverage 

under the AFC STRL Mod Demo pay 

plan is terminated, employees move 

with their position to another system 

applicable to AFC STRL employees. The 

grade of their demonstration project 

position in the new system will be 

based upon the position classification 

criteria of the gaining system. 

Employees may be eligible for pay 

retention under 5 CFR part 536 when 

converted to their positions classified 

under the new system, if applicable. 

All personnel laws, regulations, and 

guidelines not waived by this plan will 

remain in effect. Basic employee rights 

will be safeguarded, and Merit System 

Principles will be maintained. 

• S&E Level V Employees 

S&E Pay Band V Employees: An 

employee in Level V of the S&E 

occupational family will convert out of 

the demonstration project at the GS–15 

level. Procedures will be documented in 

IOPs to ensure that employees entering 

Level V understand that if they leave the 

demonstration project and their 

adjusted base pay under the 

demonstration project exceeds the 

highest applicable GS–15, step 10 rate, 

there is no entitlement to retained pay. 

However, consistent with 79 FR 43722, 

July 28, 2014, pay retention may be 

provided, under criteria established by 

Mod Demo IOPs, to SSTM members 

who are impacted by a reduction in 

force, work realignment, or other 

planned management action that would 

necessitate moving the incumbent to a 

position in a lower pay band level 

within the STRL. Pay retention may also 

be provided under such criteria when 

an SES or ST employee is placed in a 

SSTM position as a result of reduction 

in force or other management action. 

SSTM positions not entitled to pay 

retention above the GS–15, step 10 rate 

will be deemed to be the rate for GS– 

15, step 10. For those Level V 

employees paid below the adjusted GS– 

15, step 10 rate, the converted rates will 

be set in accordance with the grade 

setting provisions. 

V. Implementation Training 

Critical to the success of the 

demonstration project is the training 

developed to promote understanding of 

the broad concepts and finer details 

needed to implement and successfully 

execute Mod Demo. Training will be 

tailored to address employee concerns 

and to encourage comprehensive 

understanding of the demonstration 

project. Training will be required both 

prior to implementation and at various 

times during the life of the 

demonstration project. 

A training program will begin prior to 

implementation and will include 

modules tailored for employees, 

supervisors, and administrative staff. 

Typical modules are: 

(1) An overview of the demonstration 

project personnel system, 

(2) How employees are converted into 

and out of the system, 

(3) Career paths and pay banding, 

(4) The PFP system, 

(5) Defining performance objectives, 

(6) How to assign weights to 

performance elements, 

(7) Assessing performance and giving 

feedback, 

(8) New position descriptions, 

(9) Demonstration project 

administration and formal evaluation. 

Various types of training are being 

considered, including videos, videoteleconference tutorials, and train-thetrainer concepts. To the extent possible, 

materials developed by other STRLs 

will be utilized when appropriate to 

reduce implementation cost and to 

maintain consistency in application of 

similar procedures across laboratories. 

VI. Project Maintenance and Changes 

Many aspects of a Demonstration 

Project are experimental. Minor 

modifications to Mod Demo may be 

made from time to time as experience is 

gained, results are analyzed, and 

conclusions are reached on how the 

system is working. Flexibilities 

published in this FRN shall be available 

for use by all STRLs, if they wish to 

adopt them. 

VII. Evaluation Plan 

A. Overview 

Title 5 U.S.C. chapter 47 requires that 

an evaluation be performed to measure 

the effectiveness of the demonstration 

project and its impact on improving 

public management. A comprehensive 

evaluation plan for the entire STRL 

demonstration program, originally 

covering 24 DoD laboratories, was 

developed by a joint OPM/DoD 

Evaluation Committee in 1995. This 

plan was submitted to the then-Office of 

Defense Research & Engineering and 

was subsequently approved. The main 

purpose of the evaluation is to 

determine whether the waivers granted 

result in a more effective personnel 

system and improvements in ultimate 

outcomes (i.e., organizational 

effectiveness, mission accomplishment, 

and customer satisfaction). That plan, 

while useful, is dated and does not fully 

afford the laboratories the ability to 

evaluate all aspects of the 

demonstration project in a way that 

fully facilitates assessment and effective 

modification based on actionable data. 

Therefore, in conducting the evaluation, 

AFC will ensure USD(R&E) evaluation 

requirements are met in addition to 

applying knowledge gained from other 

DoD laboratories and their evaluations 

to ensure a timely, useful evaluation of 

the demonstration project. 

B. Evaluation Model 

An evaluation model for the AFC 

STRL Mod Demo will identify elements 

critical to an evaluation of the 

effectiveness of the flexibilities. 

However, the main focus of the 

evaluation will be on intermediate 

outcomes, i.e., the results of specific 

personnel system changes which are 

expected to improve human resources 

management. The ultimate outcomes are 

defined as improved organizational 

effectiveness, mission accomplishment, 

and AFC customer satisfaction. 

C. Method of Data Collection 

Data from a variety of different 

sources will be used in the evaluation. 

Information from existing management 

information systems supplemented with 


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perceptual survey data from employees 

will be used to assess variables related 

to effectiveness. Multiple methods 

provide more than one perspective on 

how the AFC STRL Mod Demo is 

working. Information gathered through 

one method will be used to validate 

information gathered through another. 

Confidence in the findings will increase 

as they are substantiated by the different 

collection methods. The following types 

of qualitative and/or quantitative data 

may be collected as part of the 

evaluation: (1) Workforce data; (2) 

personnel office data; (3) employee 

attitudes and feedback using surveys, 

structured interviews, and focus groups; 

(4) local activity histories; and/or, (5) 

core measures of laboratory 

effectiveness. 

VIII. Demonstration Project Costs 

A. Cost Discipline 

An objective of the demonstration 

project is to ensure in-house cost 

discipline. A baseline will be 

established at the start of the project and 

labor expenditures will be tracked 

yearly. Implementation costs (including 

project development, automation costs, 

step buy-in costs, and evaluation costs) 

are considered one-time costs and will 

not be included in the cost discipline. 

The Personnel Management Board will 

track personnel cost changes and 

recommend adjustments if required to 

achieve the objective of cost discipline. 

B. Developmental Costs 

Costs associated with the 

development of the personnel 

demonstration project include software 

automation, training, and project 

evaluation. All funding will be provided 

through the organization’s budget. The 

projected annual expenses are 

summarized in Figure 7. Project 

evaluation costs are not expected to 

continue beyond the first five years 

unless the results warrant further 

evaluation. Additional cost may be 

incurred as a part of the implementation 

and operation of the project. 

IX. Required Waivers to Laws and 

Regulations 

The following waivers and 

adaptations of certain 5 U.S.C. and 5 

CFR provisions are required only to the 

extent that these statutory provisions 

limit or are inconsistent with the actions 

contemplated under this demonstration 

project. Nothing in this plan is intended 

to preclude the demonstration project 

from adopting or incorporating any law 

or regulation enacted, adopted, or 

amended after the effective date of this 

demonstration project. 

A. Waivers to Title 5, United States 

Code 

Chapter 5, section 552a: Records. 

Waived to the extent required to clarify 

that volunteers under the Voluntary 

Emeritus and Expert Program are 

considered employees of the Federal 

government for purposes of this section. 

Chapter 31, section 3104: 

Employment of Specially Qualified 

Scientific and Professional Personnel. 

Waived to allow SSTM authority. 

Chapter 31, section 3132: The Senior 

Executive Service: Definitions and 

exclusions. Waived as necessary to 

allow for the Level V SSTM authority of 

the S&E pay band. 

Chapter 33, Subchapter I: 

Examination, Certification, and 

Appointment. Waived except for 

sections 3302, 3321, and 3328 to the 

extent necessary to allow direct hire 

authority for qualified candidates whose 

positions involve 51 percent or more of 

time spent in direct support of STRL 

activities, are identified by AFC STRL 

organizations as hard to fill, have a 

history of high turnover, or require 

unique, laboratory-related skillsets; and 

to the extent necessary to allow 

employees appointed on flexible-length 

and renewable-term appointments to 

apply for Federal positions as status 

candidates. 

Chapter 33, section 3308: Competitive 

Service; Examinations; Educational 

Requirements Prohibited; Exceptions. 

Waived to the extent necessary to allow 

the qualification determination as 

described in 85 FR 78829 and this FRN. 

Chapter 33, section 3317(a): 

Competitive Service; certification from 

registers. Waived insofar as ‘‘rule of 

three’’ is eliminated under the 

demonstration projects. 

Chapter 33, section 3318(a): 

Competitive Service, selection from 

certificate. Waived to the extent 

necessary to eliminate the requirement 

for selection using the ‘‘Rule of Three’’ 

and other limitations on recruitment 

list. 

Chapter 33, section 3321: Competitive 

Service; Probationary Period. This 

section is waived only to the extent 

necessary to replace ‘‘grade’’ with ‘‘pay 

band’’ and to allow for probationary 

periods of three years. 

Chapter 33, section 3324–3325: 

Appointments to Scientific and 

Professional Positions. Waived in its 

entirety to fully allow for positions 

above GS–15 and allow SSTMs. 

Chapter 33, section 3341: Waived in 

its entirety, to extend the time limits for 

details. 

Chapter 35, section 3522: Agency 

VSIP Plans; Approval. Waived to 

remove the requirement to submit a 

plan to OPM prior to obligating any 

resources for voluntary separation 

incentive payments. 

Chapter 35, section 3523(b)(3): 

Related to voluntary separation 

incentive payments. Waived to the 

extent necessary to utilize the 

authorities authorized in this FRN. 

Chapter 41, section 4107(a)(1), (2), 

(b)(1), and (3): Pay for Degrees. Waived 

to the extent required to allow AFC to 

pay for all courses related to a degree 

program approved by the AFC STRL 

organizations. 

Chapter 41, section 4108(a)–(c): 

Employee agreements; service after 

training. Waived to the extent necessary 

to require the employee to continue in 

the service of AFC for the period of the 

required service and to the extent 

necessary to permit the AFC STRL to 

waive in whole or in part a right of 

recovery. 


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Figure 7 - Projected Developmental Costs (In thousands of dollars) 

FY23 FY24 FY25 FY26 FY27 

Automation 25OK 171K 171K 171K 171K 

Project Evaluation OK OK lOK lOK lOK 

Total 25OK 171K 181K 181K 181K 
Federal Register / Vol. 89, No. 36 / Thursday, February 22, 2024 / Notices 13577 

Chapter 43, section 4301–4305: 

Related to performance appraisal. These 

sections are waived to the extent 

necessary to allow provisions of the 

performance management system as 

described in this FRN. 

Chapter 51, section 5101–5112: 

Classification. Waived as necessary to 

allow for the demonstration project pay 

banding system. 

Chapter 53, section 5301–5307: 

Related to Pay Comparability System, 

Special Pay Authority, and General 

Schedule Pay Rates. Waived to the 

extent necessary to allow demonstration 

project employees, including SSTM 

employees, to be treated as GS 

employees, and to allow base rates of 

pay under the demonstration project to 

be treated as scheduled rates of pay. 

SSTM pay will not exceed EX–IV and 

locality adjusted SSTM rates will not 

exceed E–III. Waived in its entirety to 

allow for staffing supplements. 

Chapter 53, section 5331–5336: 

General Schedule Pay Rates. Waived in 

its entirety to allow for the 

demonstration project’s pay banding 

system and pay provisions. 

Chapter 53, section 5361–5366: Grade 

and pay retention. Waived to the extent 

necessary to allow pay retention 

provisions described in this FRN and to 

allow SSTMs to receive pay retention as 

described in 79 FR 43722. 

Chapter 53, section 5379(a)(1)(A) and 

(b)(2): Student Loan Repayment. Waived 

to the extent necessary to define agency 

as STRL and to allow provisions of the 

student loan repayment authority as 

described in this FRN. 

Chapter 55, section 5545(d): 

Hazardous duty differential. Waived to 

the extent necessary to allow 

demonstration project employees to be 

treated as GS employees. This waiver 

does not apply to employees in Level V 

of the S&E pay band. 

Chapter 57, section 5753–5755: 

Recruitment and relocation, bonuses, 

retention allowances, and supervisory 

differentials. Waived to the extent 

necessary to allow: (a) employees and 

positions under the demonstration 

project to be treated as employees and 

positions under the GS, (b) employees 

in Level V of the S&E pay band to be 

treated as ST and/or GS employees as 

appropriate, (c) previsions of the 

retention counteroffer and incentives as 

described in this FRN, and (d) to allow 

SSTMs to receive supervisory pay 

differentials as described in 79 FR 

43722. 

Chapter 75, section 7501(1), 

7511(a)(1)(A)(ii), and 7511(a)(1)(C)(ii): 

Adverse actions—definitions. Waived to 

the extent necessary to allow for up to 

a three-year probationary period and to 

permit termination during the extended 

probationary period without using 

adverse action procedures for those 

employees serving a probationary 

period under an initial appointment 

except for those with veterans’ 

preference. Waived to the extent 

necessary to allow for two-year 

supervisory probationary periods and to 

permit re-assignment of supervisors 

during the probationary period without 

adverse action procedures for those 

employees serving in a supervisory 

probationary period. 

Chapter 75, section 7512(3): Adverse 

actions. Waived to the extent necessary 

to replace ‘‘grade’’ with ‘‘pay band.’’ 

Chapter 75, section 7512(4): Adverse 

actions. Waived to the extent necessary 

to provide that adverse action 

provisions do not apply to (1) 

reductions in pay due to the removal of 

a supervisory or team leader pay 

adjustment/differential upon voluntary 

movement to a non-supervisory or nonteam leader position or (2) decreases in 

the amount of a supervisory or team 

leader pay adjustment/differential 

during the annual review process. 

Chapter 99, section 9902(f): Related to 

Voluntary Separation Incentive 

Payments. Waived to the extent 

necessary to utilize the authorities in 

this FRN. 

B. Waivers to Title 5, Code of Federal 

Regulations 

Part 212, section 212.301: 

Competitive Status Defined. Waived to 

the extent necessary to allow 

individuals on flexible-length and 

renewable term appointments to be 

considered status candidates as defined 

in this FRN. 

Part 300–330: Employment (General). 

Other than Subpart G of 300. Waived to 

the extent necessary to allow provisions 

of the direct hire authorities as 

described in 79 FR 43722, 82 FR 29280, 

and 85 FR 78829; direct hire authority 

for qualified candidates whose positions 

involve 51 percent or more of time spent 

in direct support of STRL activities, are 

identified by the STRLs as hard to fill, 

have a history of high turnover, or 

require unique, laboratory-related 

skillsets. 

Part 300, section 300.601–300.605: 

Time-in-Grade Restrictions. Waived to 

eliminate time-in-grade restrictions in 

the demonstration project. 

Part 315, section 315.201(b): Waived 

to the extent necessary to allow Flexible 

Length and Renewable Term Technical 

Appointments to be considered nontemporary employment for the purposes 

of determining creditable service toward 

career tenure. 

Part 315, section 315.801(a), 

315.801(b)(1), (c), and (e), and 

315.802(a) and (b): Probationary period 

and length of probationary period. 

Waived to the extent necessary to (1) 

allow for up to a three-year probationary 

period and to permit termination during 

the extended probationary period 

without using adverse action procedures 

for those employees serving a 

probationary period under an initial 

appointment except for those with 

veterans’ preference and (2) to the 

extent necessary to allow for 

supervisory probationary periods to 

permit reassignment during the 

supervisory probationary period 

without using adverse action procedures 

for employees serving a probationary 

period. 

Part 315, section 315.803(b): Agency 

Action during probationary period 

(general). Waived to allow for 

termination during an extended 

probationary period without using 

adverse action procedures under 

subpart D of part 752, 5 U.S.C. 

Part 315, section 315.804: 

Termination of probationers for 

unsatisfactory performance or conduct. 

Waived to the extent necessary to 

reduce a supervisor who fails to 

successfully complete a supervisory 

probationary period to a lower grade/ 

pay band. 

Part 315, section 315.805: 

Termination of Probationers for 

Conditions Arising before Appointment. 

Waived to the extent necessary to 

permit termination during the extended 

probationary period without using 

adverse procedures. 

Part 315, section 315.901–315.909: 

Statutory requirement. Waived to the 

extent necessary to 

(1) Replace ‘‘grade’’ with ‘‘pay band;’’ 

(2) Establish a two-year supervisory 

probationary period; and 

(3) Allow the movement of a newly 

hired supervisor who fails to meet 

requirements to a lower grade/pay band. 

Part 316, section 316.301, 316.303, 

and 316.304: Term employment. 

Waived to the extent necessary to allow 

modified term appointments and 

FLRTTA as described in this FRN. 

Waived to the extent necessary to allow 

Flexible Length and Renewable Term 

Technical Appointments to count 

toward competitive status. Waived to 

allow a two-year trial period under the 

Flexible Length and Renewable Term 

Technical Appointment. 

Part 330, section 330.103–330.105: 

Requirement for Vacancy 

Announcements. Waived to the extent 

necessary to allow an STRL to 

determine information to be published 

in a USAJobs flyer. 


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Part 332 and 335: Related to 

competitive examination and agency 

promotion programs. Waived to the 

extent necessary to: 

(1) Allow employees appointed on a 

Flexible Length and Renewable Term 

Technical Appointment to apply for 

federal positions as status candidates; 

(2) Allow no rating and ranking when 

there are 15 or fewer qualified 

applicants and no preference eligible 

candidates; 

(3) Allow the hiring and appointment 

authorities as described in this FRN; 

(4) Eliminate the ‘‘rule of three’’ 

requirement or other procedures to limit 

recruitment lists; and 

(5) To extend the length of details and 

temporary promotions without requiring 

competitive procedures as described in 

85 FR 78829 and this FRN. 

Part 335, section 335.103: Agency 

Promotion Programs. Waived to the 

extent necessary to extend the length of 

details and temporary promotions 

without requiring competitive 

procedures or numerous short-term 

renewals. 

Part 337, section 337.101(a): Rating 

applicants. Waived to the extent 

necessary to allow referral without 

rating when there are 15 or fewer 

qualified candidates and no qualified 

preference eligible candidates. 

Part 338, section 338.301: 

Competitive Service Appointment. 

Waived to the extent necessary to allow 

demonstrated exceptional experience or 

a combination of experience and 

education in lieu of meeting OPM 

individual occupational qualification 

requirements for S&E positions as 

described in 85 FR 78829 and this FRN. 

Part 340, Subparts A–C: Other than 

full-time career employment. These 

subparts are waived to the extent 

necessary to allow a Voluntary Emeritus 

Corps and Voluntary Expert Program. 

Part 351, Subparts B, D, E, F, and G: 

Waived to the extent necessary to allow 

the provisions of RIF. 

Part 359, section 359.705: Related to 

SES Pay. Waived to allow 

demonstration project rules governing 

pay retention to apply to a former SES 

or ST placed on an SSTM position or 

Level IV position. 

Part 410, section 410.308(a–e): 

Training to obtain an academic degree. 

Waived to the extent necessary to allow 

provisions described in this FRN. 

Part 410, section 410.309: Agreements 

to Continue in Service. Waived to the 

extent necessary to allow the AFC STRL 

organizations to determine requirements 

related to continued service agreements, 

including employees under the Student 

Educational Employment Program who 

have received tuition assistance. 

Part 430, Subpart B: Performance 

appraisal for GS, prevailing rate, and 

certain other employees. Waived to the 

extent necessary to be consistent with 

the demonstration project’s pay-forperformance system. 

Part 432, section 432.102–432.106: 

Performance based reduction in grade 

and removal actions. Waived to the 

extent necessary to allow provisions 

described in the FRN. 

Part 511: Classification under the 

general schedule. Waived to the extent 

necessary to allow classification 

provisions outlined in this FR, 

including the list of issues that are 

neither appealable nor reviewable, the 

assignment of series under the project 

plan to appropriate career paths; and to 

allow appeals to be decided by the AFC 

EDCG. If the employee is not satisfied 

with the AFC EDCG’s response to the 

appeal, he/she may then appeal to the 

DoD appellate level. 

Part 530, Subpart C: Special Rate 

Schedules for Recruitment and 

Retention. Waived in its entirety to 

allow for staffing supplements, if 

applicable. 

Part 531, Subparts B, D, and E: 

Determining the Rate of Basic Pay. 

Waived to the extent necessary to allow 

for pay setting and pay-for-performance 

under the provisions of the 

demonstration project. Within-Grade 

Increases and Quality Step Increases. 

Waived in its entirety. 

Part 531, Subpart F: Locality-based 

comparability payments. Waived to the 

extent necessary to allow (1) 

demonstration project employees, 

except employees in Level V of the S&E 

pay band, to be treated as GS 

employees; and (2) base rates of pay 

under the demonstration project to be 

treated as scheduled annual rates of pay. 

Part 531, section 531.604: 

Determining an Employee’s Locality 

Rate. Waived to the extent required to 

allow for routine or permanent telework 

employees to receive the higher of 

locality rates based on either their 

official worksite as documented on the 

SF 50 or the official duty site for AFC 

where the employee is employed from. 

Part 536: Grade and pay retention. 

Waived to the extent necessary to 

(1) Replace ‘‘grade’’ with ‘‘pay band;’’ 

(2) Provide that pay retention 

provisions do not apply to conversions 

from GS special rates to demonstration 

project pay, as long as total pay is not 

reduced, and to reductions in pay due 

solely to the removal of a supervisory 

pay adjustment upon voluntarily 

leaving a supervisory position; 

(3) Allow demonstration project 

employees to be treated as GS 

employees; 

(4) Provide that pay retention 

provisions do not apply to movements 

to a lower pay band as a result of not 

receiving the general increase due to an 

annual performance rating of record of 

‘‘Level 1;’’ 

(5) Provide that an employee on pay 

retention whose rating of record is 

‘‘Level 1’’ is not entitled to 50 percent 

of the amount of the increase in the 

maximum rate of base pay payable for 

the pay band of the employee’s position; 

(6) Ensure that for employees of Pay 

Band V in the S&E career path, pay 

retention provisions are modified so 

that no rate established under these 

provisions may exceed the rate of base 

pay for GS–15, step 10 (i.e., there is no 

entitlement to retained rate); and 

(7) Provide that pay retention does not 

apply to reduction in base pay due 

solely to the reallocation of 

demonstration project pay rates in the 

implementation of a staffing 

supplement. This waiver applies to ST 

employees only if they move to a GSequivalent position within the 

demonstration project under conditions 

that trigger entitlement to pay retention. 

Part 536, section 536.306(a): 

Limitation on retained rates. Waived to 

the extent necessary to allow SSTMs to 

receive pay retention as described in 79 

FR 43727. 

Part 537: Repayment of Student 

Loans. Waived to the extent necessary to 

define agency as STRL and to allow 

provisions of the student loan 

repayment authority. 

Part 550, section 550.902: Definitions. 

Waived to the extent necessary to allow 

demonstration project employees to be 

treated as GS employees. This waiver 

does not apply to employees in Level V 

of the S&E pay band. 

Part 575, Subparts A–D: Recruitment 

incentives, relocation incentives, 

retention incentives, and supervisory 

differentials. Waived to the extent 

necessary to allow 

(1) Employees and positions under 

the demonstration project covered by 

pay banding to be treated as employees 

and positions under the GS system, 

(2) SSTMs to receive supervisory pay 

differentials as described in 73 FR 

43727, and 

(3) The Director to pay an offer up to 

50 percent of basic pay of either a base 

pay and/or a cash payment to retain 

quality employees; and to the extent 

necessary to allow SSTMs to receive 

supervisory pay differentials. Criteria 

for retention determination and 

preparing written service agreements 

will be as prescribed in 5 U.S.C. 5754 

and as waived herein. 

Part 591, Subpart B: Cost-of-Living 

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Foreign Areas. Waived to the extent 

necessary to allow demonstration 

project employees covered by broad 

banding to be treated as employees 

under the GS. 

Part 752, section 752.101, 752.201, 

752.301, and 752.401: Principal 

statutory requirements and coverage. 

Waived to the extent necessary to 

(1) Allow for up to a three-year 

probationary period; 

(2) Permit termination during the 

extended probationary period without 

using adverse action procedures for 

those employees serving a probationary 

period under an initial appointment 

except for those with veterans’ 

preference; 

(3) Allow for supervisory 

probationary periods and to permit 

reassignment during the supervisory 

probationary period without use of 

adverse action procedures for those 

employees serving a probationary 

period under a supervisory probationary 

period; 

(4) Replace ‘‘grade’’ with ‘‘pay band;’’ 

and 

(5) Provide that a reduction in pay 

band is not an adverse action if it results 

from the employee’s rate of base pay 

being exceeded by the minimum rate of 

base pay for that pay band. Waived to 

the extent necessary to provide that 

adverse action provisions do not apply 

to (1) conversions from GS special rates 

to demonstration project pay, as long as 

total pay is not reduced, and (2) 

reductions in pay due to the removal of 

a supervisory or team leader pay 

adjustment/differential upon voluntary 

movement to a non-supervisory or nonteam leader position or decreases in the 

amount of a supervisory or team leader 

pay adjustment based on the annual 

review. 

Part 1400, section 1400.202(a)(2): 

Waivers and Exceptions to Preappointment Investigative 

Requirements. 

(1) To the extent necessary, waive the 

pre-employment investigative 

requirements thereby enabling STRLs to 

make a final job offer and establish an 

EOD prior to a favorable eligibility 

determination at the Top Secret/SCI 

level. 

(2) For positions designated as Top 

Secret/Special-Sensitive and CriticalSensitive, apply the same waiver 

requirements for pre-appointment 

investigations IAW 5 CFR 

1400.202(a)(2)(ii) for Critical-Sensitive 

positions with the following changes: 

(a) An emergency or a national 

interest necessitating a pre-employment 

investigation waiver would include an 

STRL’s inability to meet mission 

requirements. 

(b) An agency or agency head would 

be defined as an STRL to allow for the 

provisions regarding security eligibility 

as described in 85 FR 78829. 

BILLING CODE 6001–FR–P 


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Appendix A. Occupational Series by Career Path 

[The series in S&E are from OPM's definition of Scientists and Engineers in the Introduction 

to Classification Standards, https://www.opm.gov/policy-data-oversight/classificationqualifi cations/ classifying-general-schedul e-positi ons/posi tionclassifi cati onintro. pdf. The series 

in Support are one-grade interval series. The B&T are the rest.] 

Series marked with an * are those in which AFC STRL currently has employees. Additional 

occupational series may be added as needed to support mission requirements. 

0170 History* 0638 Recreation/Creative Arts 0896 Industrial Engineer* Therapist 

0180 Psychology* 0639 Educational Therapist 1220 Patent Administrator 

0401 General Biological 0644 Medical Technologist 1221 Patent Adviser Scientist* 

0403 Microbiologist 0660 Pharmacist 1223 Patent Classifier 

0405 Pharmacologist 0662 Optometrist 1224 Patent Examiner 

0408 Ecologist 0665 Speech Pathologist and 1226 Design Patent Examiner Audiologist 

0410 Zoologist 0668 Podiatrist 1301 General Physical 

Scientist* 

0413 Physiologist* 0680 Dental Officer 1306 Health Physicist* 

0414 Entomologist 0690 Industrial Hygienist* 1310 Physicist* 

0415 Toxicologist 0696 Consumer Safety 1313 Geophysicist Officer 

0430 Botanist 0701 Veterinarian 1315 Hydrologist 

0434 Plant Pathologist 0801 General Engineer* 1320 Chemist* 

0435 Plant Physiologist 0803 Safety Engineer* 1321 Metallurgist 

043 7 Horticulturalist 0804 Fire Protection Engineer 1330 Astronomer 

0440 Geneticist 0806 Materials Engineer* 1340 Meteorologist 

0454 Rangeland Manager 0807 Landscape Architect 1350 Geologist 
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0457 Soil Conservationist 0808 Architect 1360 Oceanographer 

0460 Forester 0810 Civil Engineer 1370 Cartographer 

0470 Soil Scientist 0819 Environmental 1372 Geodesist Engineer* 

04 71 Agronomist 0830 Mechanical Engineer* 1373 Land Surveyor 

0480 Fish and Wildlife 0840 Nuclear Engineer 13 80 Fore st Products 

Administrator Technologist 

0482 Fish Biologist 0850 Electrical Engineer* 1382 Food Technologist 

0485 Wildlife Refuge 0854 Computer Engineer* 1384 Textile Technologist Manager 

0486 Wildlife Biologist 0855 Electronics Engineer* 1386 Photographic 

Technologist 

0487 Animal Scientist 0858 Biomedical Engineer* 1501 General Mathematician* 

0601 General Health Scientist 0861 Aerospace Engineer* 1510 Actuary 

0602 Medical Officer 0871 Naval Architect 1515 Operations Research 

Analyst* 

0610Nurse* 0880 Mining Engineer 1520 Mathematician* 

0630 Dietitian and 0881 Petroleum Engineer 1529 Mathematical 

Nutritionist Statistician* 

0631 Occupational Therapist 0890 Agricultural Engineer 1530 Statistician* 

0633 Physical Therapist 0892 Ceramic Engineer 1550 Computer Scientist* 

0635 Kinesiotherapist 0893 Chemical Engineer* 1560 Data Scientist* 

0637 Manual Arts Therapist 0894 Welding Engineer 2210 Information Technology 

- See Section 111.B.1. * 
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0018 Safety and Occupational 0671 Health System 1176 Building Manager* Health Specialist* Specialist* 

0060 Chaplain 0685 Public Health Specialist 1210 Copyright Specialist 

0080 Security Administrator* 0802 Engineering Technical* 1222 Patent Attorney* 

0142 Workforce Development 0856 Electronics Technical* 1311 Physical Science 

Technician* 

0201 Human Resources 0901 General Legal* 1410 Librarian* Specialist* 

0260 Equal Employment 0905 General Attorney* 1412 Technical Information 

Specialist* Services Specialist* 

0301 Miscellaneous Admin 0950 Paralegal Specialist* 1521 Mathematics Technician and Program* 

0306 Government Information 1001 General Arts and 1640 Facility Manager* Specialist* Information* 

0340 Program Manager* 1035 Public Affairs* 1670 Equipment Services 

Specialist* 

0341 Administrative Officer* 1040 Language Specialist 1701 General Education and 

Training Specialist* 

0343 Management and 1060 Photographer* 1712 Training Instructor Program Analyst* 

0346 Logistics Manager* 1071 Audiovisual Production 1801 General Inspector and 

Specialist Investigator* 

0391 Telecommunications* 1082 Writer/Editor 1910 Quality Assurance 

Specialist 

0501 Financial Specialist* 1083 Technical Writer* 2001 Supply Specialist* 

0505 Financial Manager* 1084 Visual Information 2003 Supply Program 

Specialist Manager* 

0510 Accountant* 1101 General Business and 2101 Transportation 

Industry* Specialist* 

0511 Auditor* 1102 Contracting Specialist* 2130 Traffic Management 

Specialist 

0560 Budget Analyst* 1103 Industrial Property 2150 Transportation 

Manager Operations Specialist 

0603 Physician's Assistant 1104 Property Disposal 2152 Air Traffic Controller* Specialist 

0669 Medical Record 1170 Realty Specialist* 2210 Information Technology 

Administrator Specialist* 
Federal Register / Vol. 89, No. 36 / Thursday, February 22, 2024 / Notices 13583 


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0019 Safety Technician 

0085 Security Guard 

0086 Security Clerk* 

0181 Psychology Aid and 

Technician* 

0186 Social Services Aid and 

Assistant 

0203 Human Resources 

Assistant 

0309 Correspondence Clerk 

0318 Secretary* 

0319 Closed Microphone 

Reporter* 

0322 Clerk Typist 

0326 Office Automation 

Clerk* 

0335 Computer Clerk and 

Assistant* 

0303 Miscellaneous Clerk and 0342 Support Services 

Assistant* Administrator* 

0304 Information Receptionist 0344 Management Clerk* 

0305 Mail and File Clerk* 03 56 Data Transcriber 

0361 Equal Opportunity 

Assistant 

0404 Biological Science 

Technician 

0986 Legal Assistant* 

1105 Purchasing Agent 

2005 Supply Technician* 
13584 Federal Register / Vol. 89, No. 36 / Thursday, February 22, 2024 / Notices 


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Appendix B. List of Local Unions. 

AFGE _ COMBAT READ CTR, AVIATION 

FCC AR1914 W ARFIGHTING CTR, ET AL FORT FORT RUCKER 

RUCKER, AL AFGE 1815 

AFGE _ US ARMY MVR CTR OF EXC, 

FCC AR2578 IMCOM, MICC, NETC, SEC COOP, FORT BENNING 

BENNING, GA AFGE 54 

AFGE US ARMY SIG CTR DEEAMC CL 

FCC AR2592 LAB, USACC, DENTAC, FORT GORDON, FORT GORDON 

GAAFGE2017 

AFGE _ CAC FT LEA VENWORH, DGSC, 

FORT 

FCC AR2844 MEDCOM, FIREFIGHTERS, AARTS, KS 

LEAVENWORTH 

AFGE 738 

AFGE _ CAC FT LEA VENWORH, DGSC, 

FORT 

TRAC AR2844 MEDCOM, FIREFIGHTERS, AARTS, KS 

LEAVENWORTH 

AFGE 738 
Federal Register / Vol. 89, No. 36 / Thursday, February 22, 2024 / Notices 13585 


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ABERDEEN 

DEVCOM 

AR2927 NFFE NFFE/178 PROVING 

HQ 

GROUND 

AFGE ARMY MANEUVER SPT CTR FT 

FORT LEONARD 

FCC AR3016 LEONARD WOOD MED AND DENT 

WOOD 

NONPROF AFGE LOCAL 908 

AFGE ARMY MANUEVER SPT CTR FT FORT LEONARD 

FCC AR3017 

LEONARDWOOD AFGE LOCAL 908 WOOD 

WHITE SANDS, 

DAC AR3080 NFFE_NFFE/2049 - (AR3080) 

NM 

FCC AR3138 NFFE_NFFE/273 - (AR3138) FORT SILL 

LIUNA _ MED CMD, NEC, IMCOM FT SAM FORT SAM 

FCC AR3249 

HOUSTON LIUNA LOCAL 28 HOUSTON 

NAGE HQ TRADOC; USACIMT; USMICC 

FCC AR3351 FDO; USAFC FCC AT FT EUSTIS VA & FORT EUSTIS 

NAGE/SEIU 

JMC (incl 

NAGE _ HQ TRADOC; USACIMT; USMICC 

AR3351 FDO; USAFC FCC AT FT EUSTIS VA & FORT EUSTIS 

JTE) 

NAGE/SEIU 

TRAC AR3626 AFGE _ AFGE/1178 - (AR3626) FORT LEE 
13586 Federal Register / Vol. 89, No. 36 / Thursday, February 22, 2024 / Notices 

Dated: February 16, 2024. 

Aaron T. Siegel, 

Alternate OSD Federal Register Liaison 

Officer, Department of Defense. 

[FR Doc. 2024–03586 Filed 2–21–24; 8:45 am] 

BILLING CODE 6001–FR–C 


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AFGE _ USA COMB ARMS SPT CMD, 

FCC AR3809 SUSTMNT CTR OF EXC, FT LEE, VA; FORT LEE 

AFGE 1178 (PROF) 

AFGE _ USA COMB ARMS SPT CMD, 

FCC AR3810 SUSTMNT CTR OF EXC, FT LEE, VA; FORT LEE 

AFGE 1178 (NONPROF)