11676 Federal Register / Vol. 62, No. 48 / Wednesday, March 12, 1997 / Notices

OFFICE OF PERSONNEL

MANAGEMENT

Proposed Laboratory Personnel

Management Demonstration Project;

Department of the Army, U.S. Army

Medical Research and Materiel

Command, Fort Detrick, Frederick,

Maryland

AGENCY: Office of Personnel

Management.

ACTION: Notice of Intent to Implement

Demonstration Project.

SUMMARY: Title VI of the Civil Service

Reform Act, 5 U.S.C. 4703, authorizes

the Office of Personnel Management

(OPM) to conduct demonstration

projects that experiment with new and

different personnel management

concepts to determine whether such

changes in personnel policy or

procedures would result in improved

Federal personnel management.

Public Law 103–337, October 5, 1994,

permits the Department of Defense

(DOD), with the approval of the OPM,

to carry out personnel demonstration

projects generally similar in nature to

the China Lake demonstration project at

DOD Science and Technology (S&T)

Reinvention Laboratory sites. The Army

is proposing demonstration projects

initially to cover five of its S&T

Reinvention Laboratories: the Army

Research Laboratory; the Missile

Research, Development, and

Engineering Center; the Aviation

Research, Development, and

Engineering Center; the Medical

Research and Materiel Command; and

the Waterways Experiment Station. This

proposal is for the Medical Research

and Materiel Command (MRMC).

DATES: To be considered, written

comments must be submitted on or

before May 20, 1997; two public

hearings will be scheduled as follows:

(1) April 21, 1997, at 10:00 a.m., at Fort

Detrick, Maryland. (2) April 21, 1997, at

1:00 p.m by Video Teleconference (VTC)

and/or conference calls from Fort

Detrick, Maryland covering all MRMC

sites geographically located outside of

the Fort Detrick, Maryland commuting

area. At the time of the hearings,

interested persons or organizations may

present their written or oral comments

for the April 21, 1997 hearing or oral

comments for the VTC/conference call

hearing on the proposed demonstration

project. The hearings will be informal.

Anyone wishing to testify should

contact the person listed under FOR

FURTHER INFORMATION CONTACT, and state

the hearing location and date, so that

OPM can plan the hearings and provide

sufficient time for all interested persons

and organizations to be heard. Priority

will be given to those on the schedule,

with others speaking in any remaining

available time. Each speaker’s

presentation will be limited to 10

minutes. Written comments may be

submitted to supplement oral testimony

during the public comment period.

ADDRESSES: Comments may be mailed to

Fidelma A. Donahue, U.S. Office of

Personnel Management, 1900 E Street,

NW, Room 7460, Washington, DC

20415; the public hearings will be held

at the U.S. Army Research and Material

Command, Strough Auditorium, 504

Scott Street, Building 611, Fort Detrick,

Maryland; and, the VTC/conference call

hearings will be conducted at the U.S.

Army Research and Material Command,

Strough Auditorium, 504 Scott Street, in

Building 810, Conference Rooms 1 and

2, Fort Detrick, Maryland.

FOR FURTHER INFORMATION CONTACT: (1)

On proposed demonstration project: Ms.

Carol Gartrell, U.S. Army Medical

Research and Materiel Command,

ATTN: MCMR-RMP, 504 Scott Street,

Fort Detrick, Maryland 21702–5012,

phone 301–619–7255.

(2) On proposed demonstration

project and public hearings: Fidelma A.

Donahue, U.S. Office of Personnel

Management, 1900 E Street, NW, Room

7460, Washington, DC 20415, phone

202–606–1138.

SUPPLEMENTARY INFORMATION: Since

1966, numerous studies of DOD

laboratories have been conducted on

laboratory quality and personnel.

Almost all of these studies have

recommended improvements in civilian

personnel policy, organization, and

management. The proposed project

involves simplified job classification,

pay banding, pay-for-performance

management system, streamlined hiring

processes, expanded employee

developmental opportunities, and

modified Reduction-in-Force (RIF)

procedures.

Office of Personnel Management

James B. King,

Director

Table of Contents

I. Executive Summary

ll. Introduction

A. Purpose

B. Problems with the Present System

C. Changes Required/Expected Benefits

D. Participating Organization

E. Participating Employees

F. Labor Participation

G. Project Design

H. Personnel Management Board

Ill. Personnel System Changes

A. Broadbanding

B. Classification

C. Pay-for-Performance Management

System

D. Hiring and Appointment Authorities

E. Expanded Developmental Opportunities

Program

F. Revised Reduction-In-Force (RIF)

Procedures

IV. Training

V. Conversion

VI. Project Duration

VII. Evaluation Plan

VIII. Demonstration Project Costs

IX. Required Waivers to Law and Regulation

Appendix A: Occupational Series by

Occupational Family

Appendix B: Project Evaluation and

Oversight

Appendix C: Performance Elements

Appendix D: Benchmark Performance

Standards

I. Executive Summary

This project was designed by the

Department of the Army (DA), with

participation of and review by the

Department of Defense (DOD) and the

Office of Personnel Management (OPM).

The purpose of the project is to achieve

the best workforce for the Medical

Research & Materiel Command (MRMC)

mission, adjust the workforce for

change, and improve workforce quality.

The foundations of this project are

based on the concept of linking

performance to pay for all covered

positions; simplifying paperwork and

the processing of classification and

other personnel actions; emphasizing

partnerships among management,

employees and unions representing

covered employees; and delegating

classification and other authorities to

line managers. Additionally, the

research intellect of the MRMC

workforce will be revitalized through

the use of expanded developmental

opportunities. The use of these

expanded opportunities will

reinvigorate the creative intellect of the

research and development community.

Development and execution of this

project will be in-house budget neutral,

based on a baseline of September 1995

in-house costs and consistent with the

DA plan to downsize laboratories. Army

managers at the DOD S&T Reinvention

Laboratory sites will manage and

control their personnel costs to remain

within established in-house budgets. An

in-house budget is a compilation of

costs of the many diverse components

required to fund the day-to-day

operations of a laboratory. These

components generally include pay of

people (labor, benefits, overtime,

awards), training, travel, supplies, noncapital equipment, and other costs

depending on the specific function of

the activity.

This project will be under the joint

sponsorship of the Assistant Secretary

of the Army for Research, Development
Federal Register / Vol. 62, No. 48 / Wednesday, March 12, 1997 / Notices 11677

and Acquisition and the Assistant

Secretary of the Army for Manpower

and Reserve Affairs. The Commander ,

U.S. Army Medical Command

(MEDCOM), will execute and manage

the project. Project oversight within the

Army will be achieved by an executive

steering committee made up of top-level

executives, co-chaired by the Deputy

Assistant Secretary of the Army for

Research and Technology and the

Deputy Assistant Secretary of the Army

(Civilian Personnel Policy)/Director,

Civilian Personnel. Oversight external to

the Army will be provided by DOD and

OPM.

II. Introduction

A. Purpose

The purpose of the project is to

demonstrate that the effectiveness of

DOD laboratories can be enhanced by

allowing greater managerial control over

personnel functions and, at the same

time, expanding the opportunities

available to employees through a more

responsive and flexible personnel

system. The quality of DOD laboratories,

their people, and products has been

under intense scrutiny in recent years.

The perceived deterioration of quality is

due, in substantial part, to the erosion

of control which line managers have

over their human resources. This

demonstration, in its entirety, attempts

to provide managers, at the lowest

practical level, the authority, control,

and flexibility needed to achieve quality

laboratories and quality products.

B. Problems with the Present System

The MRMC provides medical

solutions for military requirements to

protect and sustain the force. To do this,

its management must acquire and retain

an enthusiastic, innovative, and highly

educated/trained workforce. The MRMC

must be able to compete with the

private sector for the best talent and be

able to make job offers in a timely

manner with the attendant bonuses and

incentives to attract high quality

employees. Today, industry laboratories

can make an offer of employment to a

promising new hire before the

government can prepare the paperwork

necessary to begin the recruitment

process.

Currently, jobs are described using a

cumbersome classification system that

is overly complex and specialized. This

hampers a manager’s ability to shape the

workforce and match the positions

while making best use of the employees.

Managers must be given local control of

positions and their classification to

move both their employees and

vacancies freely within their

organization to other lines of the

business activities to match the life

cycle needs of supported customers.

These issues work together to hamper

supervisors in all areas of human

resource management. Hiring

restrictions and overly complex job

classifications, coupled with poor tools

for rewarding and motivating employees

and a system that does not assist

managers in removing poor performers,

builds stagnation in the workforce and

wastes valuable time.

C. Changes Required/Expected Benefits

This project is expected to

demonstrate that a human resource

system tailored to the mission and

requirements of the MRMC will result

in: (a) Increased quality in the total

workforce and the products they

produce; (b) increased timeliness of key

personnel processes; (c) increased

retention of high quality employees and

increased non-retention of poor quality

employees; and (d) increased

satisfaction with the MRMC and its

products by all customers served.

The MRMC demonstration project

builds on the successful features of

demonstration projects at China Lake

and the National Institute of Standards

and Technology (NIST). These

demonstration projects have produced

impressive statistics on the job

satisfaction for their employees versus

that for the federal workforce in general.

Therefore, in addition to expected

benefits mentioned above, the MRMC

demonstration project expects to find

more satisfied employees on many

aspects of the demonstration project

including pay equity, classification

accuracy, and fairness of performance

management. A full range of measures

will be collected during Project

Evaluation (Section VII).

D. Participating Organization

This demonstration project will cover

approximately 1250 MRMC civilian

employees at all geographic sites within

the United States. It should be noted

that many sites currently employ fewer

than 10 people and that the sites may

change as the MRMC reorganizes,

realigns, and complies with Base

Realignment and Closure Act

requirements. Successor organizations

will continue coverage in the

demonstration project. Approximately

46 percent of covered employees are

located at Fort Detrick, Frederick,

Maryland. The remaining employees are

located at the following sites: Aberdeen

Proving Ground, Maryland; Falls

Church, Virginia; Fort Rucker, Alabama;

Fort Sam Houston, Texas; Natick,

Massachusetts; Washington, DC;

Tobyhanna Army Depot, Pennsylvania;

Fort Lee, Virginia; Tracy, California;

Ogden, Utah; Brooks Air Force Base,

Texas; Dayton, Ohio; Tripler Army

Medical Center, Hawaii; and Fort Bragg,

North Carolina. Additionally, the

MRMC has some employees

participating in the Flexiplace Program

who are geographically located at Fort

Collins, Colorado; Clarksville,

Tennessee; and Jefferson, Maryland.

E. Participating Employees

The demonstration project includes

appropriated funded civilian employees

in the competitive and excepted service

(to include non-citizens hired in the

absence of qualified citizens) paid under

the General Schedule (GS) and

Scientific and Professional (ST) pay

systems, and DA Interns. Senior

Executive Service (SES) employees,

Federal Wage System employees, and

employees assigned to the GS–080

series and presently covered by the

Civilian Intelligence Personnel

Management System (CIPMS), will not

be covered in the demonstration project.

Personnel added to the MRMC in like

positions, either through appointment,

promotion, reassignment, change to

lower grade or where their functions

and positions have been transferred into

the MRMC, will be converted to the

demonstration project.

The personnel systems for 5 U.S.C.

3104 (ST) positions will change only to

the extent that 3104 positions are in the

same performance appraisal and awards

systems as other positions.

Classification, staffing, compensation

and reduction-in-force procedures,

however, will not change. 5 U.S.C. 3104

employees will not receive the pro rata

share payout upon completion of one

year of coverage in the demonstration

project. Pay adjustments for their

positions under the project will be

carried out in accordance with existing

Federal rules pertaining to 3104 pay

adjustments. (See 5 U.S.C. 5376)

F. Labor Participation

The National Federation of Federal

Employees (NFFE) and the American

Federation of Government Employees

(AFGE), represent professional and

nonprofessional GS employees at some

sites within the MRMC. The MRMC is

continuing to fulfill its obligations to

consult and/or negotiate with the NFFE

and AFGE, as appropriate, in

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

7117. The participation with the NFFE,

and AFGE is within the spirit and intent

of Executive Order 12871. The

bargaining units of MRMC not

endorsing the demonstration project

will not participate.
11678 Federal Register / Vol. 62, No. 48 / Wednesday, March 12, 1997 / Notices

G. Project Design

In October 1994, the MRMC began

development of the specifics of this

personnel demonstration proposal. A

Personnel Demonstration Project Office

was established and administrative

support added in April 1995. Briefings

of the proposal were initially conducted

for the workforce at every participating

subordinate activity with subsequent

briefings provided upon request by

Commanders/Directors.

Status of the project is provided to

subordinate activity Commanders/

Directors, usually on a weekly basis for

dissemination to all employees. An

electronic mail address was established

in the Fall of 1994 and made available

to all employees and managers for the

purpose of expressing opinions and/or

obtaining specific information about the

project.

Review of the proposal and input by

the MEDCOM, as well as critical and

extensive reviews by Headquarters DA,

the Office of the Secretary of Defense,

and OPM since April 1995, have led to

the current configuration of the

proposal.

H. Personnel Management Board

The MRMC intends to establish an

appropriate balance between the

personnel management authority/

accountability delegated to subordinate

activity Commanders/ Directors and

MRMC management/oversight

responsibilities by establishing a

Personnel Management Board (PMB).

The Chairperson and members will be

appointed by the Commander MRMC,

and oversee/provide policy, guidelines

and corrective action as appropriate as

subordinate activity Commanders/

Directors execute the following:

1. formulate and execute the civilian

pay budget;

2. determine the composition of the

pay-for-performance pay pools in

accordance with the guidelines of this

proposal and internal procedures;

3. administer funds allocation to pay

pool managers;

4. determine hiring and promotion

salaries as well as exceptions to pay-forperformance salary increases;

5. provide guidance to pay pool

managers;

6. manage the awards pools;

7. select participants for the Expanded

Developmental Opportunities Program,

long term training, and any special

developmental assignments;

8. adhere to guidelines concerning the

promotion of employees into salary

ranges designated ‘‘high grades’’;

9. ensure in-house budget neutrality

to include tracking of average salaries,

FTEs, etc.

10. contact the PMB designee for

problem resolution, recommending

changes in policy/procedure, etc.

11. ensure that all employees are

treated in a fair and equitable manner in

accordance with all policies,

regulations, and guidelines covering this

demonstration project.

III. Personnel System Changes

A. Broadbanding

Occupational Families

Occupations at the MRMC will be

grouped into occupational families.

Occupations will be grouped according

to similarities in type of work and

customary requirements for formal

training or credentials. The common

patterns of advancement within the

occupations as practiced at DOD

Laboratories and in the private sector

will also be considered. The current

occupations and grades have been

examined, and their characteristics and

distribution have served as guidelines in

the development of the four

occupational families described below.

Positions included in each occupational

family are listed in Appendix A.

1. Engineers and Scientists. This

occupational family includes all

technical professional positions, such as

positions in the biological, physical and

social sciences, medical, veterinary,

mathematical, and engineering fields.

Ordinarily, specific course work or

educational degrees are required for

these occupations.

2. E&S Technicians. This

occupational family contains

specialized functions in fields that

provide direct technical support to the

scientific/engineering effort. Positions

in these occupations may or may not

require completion of formal college

course work. However, training and

skills in the various specialties are

generally required.

3. Administrative. This occupational

family contains specialized functions in

such fields as management analysis,

accounting, budgeting, contracting,

purchasing, legal, business and

industry, library, quality assurance, and

supply. Special skills in administrative

fields or special degrees are required.

4. General Support. This occupational

family is composed of positions

requiring special skills and knowledge,

such as typing, shorthand, or office

automation skills, and job related

experience. Clerical work usually

involves the processing and

maintenance of records. Assistant work

requires knowledge of methods and

procedures within a specific

administrative area. Support functions

include positions such as secretary, mail

clerk, medical clerk, accounting

technician and supply technician.

Pay Bands

Each occupational family will be

composed of discrete pay bands (levels)

corresponding to recognized

advancement within the occupations.

These pay bands will replace grades.

They will not be the same for all

occupational families. Each

occupational family will be divided into

three to five pay bands, each pay band

covering the same pay range now

covered by one or more grades. A salary

overlap, similar to the current overlap

between GS grades, will be maintained.

Ordinarily, an individual will be

hired at the lowest salary in a pay band.

Exceptional qualifications, specific

organizational requirements, or other

compelling reasons may lead to a higher

entrance level within a band.

The MRMC broadbanding plan

expands the broadbanding concept used

at China Lake and NIST by creating Pay

Band V of the Engineers and Scientists

occupational family. This pay band is

designed for senior technical managers

and senior scientists/engineers.

Current OPM guidelines covering the

Senior Executive Service and Scientific

and Professional (ST) positions do not

fully meet the needs of MRMC. The SES

designation is appropriate for executive

level managerial positions whose

classification exceeds the GS–15 grade

level. The primary knowledges and

abilities of SES positions relate to

supervisory and managerial

responsibilities. Positions classified as

ST are designed for bench research

scientists and engineers. OPM

guidelines state that the duties and

responsibilities of ST positions may

only include minimal managerial or

supervisory responsibility.

MRMC currently has many division/

directorate chief positions that have

characteristics of both SES and ST

classifications. Most division/

directorate chiefs in MRMC are

responsible for supervising other GS–15

positions, such as branch chiefs, nonsupervisory researcher scientists and

engineers. Most of these senior positions

are classified at the GS–15 level. MRMC

management considers the primary

requirement for division/directorate

chiefs to have knowledge of and

expertise in the specific scientific and

technology areas related to their

mission. The ability to manage, while

important, is considered secondary.

Historically, these positions have been

filled by employees who possess

primarily scientific/engineering

credentials and who are considered

experts in their field by the scientific
Federal Register / Vol. 62, No. 48 / Wednesday, March 12, 1997 / Notices 11679

community. While it is clear these

positions warrant classification beyond

the GS–15 level, attempts to classify

most of the positions as SES have been

difficult because of the organizational

structure of MRMC. Classification of the

positions as ST is also not an option

because the supervisory responsibilities

inherent in division/directorate chief

positions cannot be ignored. MRMC has

positions that do not strictly conform to

OPM definitions of either the SES or ST.

The purpose of Pay Band V is to

overcome the difficulties identified

above by creating a category for two

types of positions—the senior technical

manager (with full supervisory

authority) and the senior scientist

engineer (less than full supervisory

authority). Current GS–15 division/

directorate chiefs will convert into the

demonstration project at Pay Band IV.

After conversion, they will be reviewed

against established criteria to determine

if they should be reclassified to Pay

Band V. The proposed salary range is

the same as currently exists for ST

positions (minimum of 120% of the

minimum rate of basic pay for GS–15

with a maximum of the basic rate of pay

established for level IV of the Executive

Schedule). Vacant positions in Pay Band

V will be competitively filled to ensure

that selections are made from among the

world’s preeminent researchers and

technical leaders in the specialty fields.

Panels of experts from the discipline or

an allied discipline that the recruitment

action seeks to fill will be created to

assist in filling Pay Band V positions.

Panel members will be selected from

senior military and civilian employees

of the MRMC, and an equal number of

individuals of equivalent stature from

outside the activity to ensure

impartiality, breadth of technical

expertise, and a rigorous and

demanding review. The panel will

apply criteria developed largely from

the current OPM Research Grade

Evaluation Guide for positions

exceeding the GS–15 level. The same

procedure will be used for evaluating

senior technical manager positions

however, the rating criteria will be

adjusted to account for the differences

in the positions, such as greater

emphasis on technical program

management and supervisory abilities.

The final component of Pay Band V

is the management of all Pay Band V

assets. Specifically, this includes

authority to classify, create, abolish

positions as circumstances warrant;

recruit and reassign employees in this

pay band; set pay and to have their

performance appraised under this

project’s Pay for Performance System.

This authority will be executed within

parameters to be established at the DA

level, to include controls on the

numbers of Pay Band V positions and

recruitment/promotion criteria. The

specific details regarding the control

and management of Pay Band V assets

will be included in the demonstration’s

operating procedures. The laboratory

wants to demonstrate increased

effectiveness by gaining greater

managerial control and authority,

consistent with merit, affirmative

action, and equal employment

opportunity principles.

High-grade controls within the agency

currently restrict movement into high

grade positions (GS–14/15). OPM

definition for broadbanding purposes is

a position where the base pay exceeds

that of a GS–13, Step 10. Until the highgrade controls are lifted, demonstration

employees will not be able to advance

into the currently defined pay level of

a high-grade, unless a high-grade

authorization is available. To

accommodate this, employees whose

salary adjustment would place them

above the high-grade pay limit in

activities where high-grade

authorizations are unavailable will

receive permanent adjustments to basic

salary up to an amount equivalent to

one dollar less than the base of the

defined high-grade pay structure. Any

additional amount granted under payfor-performance will be paid as a onetime bonus payment from pay-pool

funds. This pattern of payout will

continue until high-grade authorizations

become available.

The proposed pay bands for the

occupational families and how they

relate to the current GS grades are

shown in Figure 1. Application of the

Fair Labor Standards Act (FLSA) within

each pay band is also shown in Figure

1. This pay band concept has the

following advantages:

1. It reduces the number of

classification decisions required during

an employee’s career.

2. It simplifies the classification

decision-making process and

paperwork. A pay band covers a larger

scope of work than a grade, and thus

will be defined in shorter and simpler

language.

3. It supports delegation of

classification authority to line managers.

4. It provides a broader range of

performance-related pay for each level.

In many cases, employees whose pay

would have been frozen at the top step

of a grade will now have more potential

for upward movement in the broader

pay band.

5. It prevents the progression of low

performers through a pay band by mere

longevity, since job performance serves

as the basis for determining pay.

BILLING CODE 6325–01–P
11680 Federal Register / Vol. 62, No. 48 / Wednesday, March 12, 1997 / Notices

BILLING CODE 6325–01–C

Fair Labor Standards Act

The FLSA exemption and

nonexemption determinations will be

made consistent with criteria found in

5 CFR part 551. Supervisors with

classification authority will make the

determinations on a case-by-case basis

with reference to documentation in the

operating procedures manual and the

advice and assistance of the Civilian

Personnel Offices (CPO)/Civilian

Personnel Advisory Centers (CPAC)/

Civilian Personnel Operations Centers

(CPOC). The generic position

descriptions will not be the sole basis

for the determination. The basis for

exemption/non-exemption will be

documented and attached to each

description. Exemption criteria will be

narrowly construed and applied only to

those employees who clearly meet the

spirit of the exemption. The basis for

determinations will be reviewed as a

part of the performance review process

and when salary adjustments are

warranted. Changes will be documented

and provided to the CPO/CPAC/CPOC,

as appropriate.

Simplified Assignment Process

Today’s environment of rightsizing

and workforce transition mandates that

the MRMC have maximum flexibility to

assign duties and responsibilities to

individuals. Broadbanding can be used

to address this need. As a result of the

assignment to a particular level

descriptor, the organization will have

maximum flexibility to assign an

employee with no change in pay, within

broad descriptions consistent with the

needs of the organization, and the

individual’s qualifications and rank or

level. Subsequent assignments to

projects, tasks, or functions anywhere

within the organization requiring the

same level and area of expertise, and

qualifications would not constitute an

assignment outside the scope or

coverage of the current level descriptor,

or benchmark position description.

Such assignments within the coverage

of the generic descriptors are

accomplished without the need to

process a personnel action. For instance,

a technical expert can be assigned to

any project, task, or function requiring

similar technical expertise. Likewise, a

manager could be assigned to manage

any similar function or organization

consistent with that individual’s

qualifications. This flexibility allows a

broader latitude in assignments and

further streamlines the administrative

process and system.

Promotions

A promotion is the movement of an

employee to a higher pay band within

the same occupational family or to a pay

band in a different occupational family

which results in an increase in the

employee’s salary. Progression within a

pay band is based upon performance

pay increases; as such, these actions are

not considered promotions and are not

subject to the provisions of this section.

Promotions will be processed under

competitive procedures in accordance

with merit principles and requirements.

The following actions are excepted from

competitive procedures:

(a) Re-promotion to a position which

is in the same pay band and

occupational family as the employee

previously held on a permanent basis

within the competitive service.

(b) Promotion, reassignment,

demotion, transfer or reinstatement to a

position having promotion potential no

greater than the potential of a position

an employee currently holds or

previously held on a permanent basis in

the competitive service.

(c) A position change permitted by

reduction-in-force procedures.

(d) Promotion without current

competition when the employee was

appointed through competitive

procedures to a position with a

documented career ladder.

(e) A temporary promotion, or detail

to a position in a higher pay band, of

180 days or less.

(f) Impact of person on the job,

accretion of duties, and Factor IV

process (application of the Research

Grade Evaluation Guide, Equipment

Development Grade Evaluation Guide or

similar guides) promotions.

(g) A promotion resulting from the

correction of an initial classification

error or the issuance of a new

classification standard.
Federal Register / Vol. 62, No. 48 / Wednesday, March 12, 1997 / Notices 11681

Link Between Promotion and

Performance

To be promoted competitively or

noncompetitively from one band to the

next, an employee must meet the

minimum qualifications for the job and

have a current performance rating of

‘‘B’’ or better (see Performance

Evaluation) or equivalent under a

different performance management

system.

B. Classification

Introduction

The objectives of the new

classification system are to simplify the

classification process, make the process

more serviceable and understandable,

and place more decision-making

authority and accountability with line

managers. All positions listed in

Appendix A will be in the classification

structure. Provisions will be made for

including other occupations as

employment requirements change in

response to changing missions and

technical programs.

Occupational Series

The present GS classification system

has over 400 occupations (also called

series), which are divided into 22

groups. The occupational series will be

maintained. New series, established by

OPM, may be added as needed to reflect

new occupations in the workforce.

Appendix A lists the occupational series

currently represented at the MRMC by

occupational family.

Classification Standards

MRMC will use a classification

system that is a modification of the

system now in use at the US Navy,

Naval Command, Control and Ocean

Surveillance Center, San Diego,

California. The present classification

standards will be used to create local

benchmark position descriptions for

each pay band, reflecting duties and

responsibilities comparable to those

described in present classification

standards for the span of grades

represented by each pay band. There

will be at least one benchmark position

description for each pay band. A

supervisory benchmark position

description will be added to those pay

bands that include supervisory

employees. Present titles and series will

continue to be used in order to

recognize the types of work being

performed and educational backgrounds

and requirements of incumbents.

Locally developed speciality codes and

OPM functional codes will be used to

facilitate titling, making qualification

determinations, and assigning

competitive levels to determine

retention status.

Position Descriptions and Classification

Process

The MRMC Commander will have

delegated classification authority and

will redelegate this authority to

subordinate activity Commanders/

Directors for redelegation to activity

managers as appropriate. New position

descriptions will be developed to assist

managers in exercising delegated

position classification authority.

Managers will identify the occupational

family, job series, the functional code,

the speciality code, pay band level, and

the appropriate acquisition codes. The

manager will document these decisions

on a cover sheet similar to the present

DA Form 374. Speciality codes will be

developed by Subject Matter Experts

(SMEs) to identify the special nature of

work performed. Functional codes are

those currently found in the OPM

Introduction to the Classification

Standards which defines certain kinds

of activities, e.g., Research,

Development, Test and Evaluation, etc.,

and covers Engineers & Scientists (E&S).

Classification Appeals

An employee may appeal the

occupational family, occupational

series, or pay band of his or her position

at any time. The employee may

accomplish this by exercising any of the

following options: (a) The employee

must formally raise the areas of concern

to supervisors in the immediate chain of

command, either verbally or in writing,

(b) If the employee is not satisfied with

the supervisory response, the employee

may appeal to the appellate level within

DoD or may appeal directly to OPM, (c)

If the employee elects to first appeal to

DoD but is not satisfied with this

response, he/she may appeal to the

Office of Personnel Management.

Appellate decisions from OPM are final.

The evaluation of a classification

appeal is based on the MRMC Personnel

Demonstration Project Classification

Standards.

C. Pay-for-Performance Management

System

Performance Evaluation

Introduction

The performance appraisal system

will link compensation to performance

through annual performance evaluations

and performance ratings. The

performance appraisal system will allow

optional use of peer evaluation input

and/or input from subordinates

whenever appropriate. The system will

have the flexibility to be modified, if

necessary, as more experience is gained

under the project. Details of the system

may be found in the implementing

instructions.

Performance Objectives

Performance objectives are statements

of job responsibilities based on the work

unit’s mission, goals, and supplemental

benchmark position descriptions.

Employees and supervisors will jointly

develop performance objectives which

will reflect the types of duties and

responsibilities expected at the

respective pay level. The performance

objectives, representing joint efforts of

employees and their rating chains,

should be in place within 30 days from

the beginning of each rating period.

Performance Elements

New performance elements and rating

forms will be designed to implement a

new scoring and rating system. The new

performance evaluation system will be

based on critical performance elements

defined in Appendix C. All elements in

the new performance evaluation system

are critical. Non-critical elements will

not be used. Each performance element

is assigned a weight between a specified

range. The total weight of all elements

in a performance plan is 100 points. The

supervisor assigns each element some

portion of the 100 points in accordance

with its importance for mission

attainment. These weights will be

developed along with employee

performance objectives.

Mid-Year Review

A mid-year review between a

supervisor and employee will be held to

determine whether objectives are being

met and whether performance objectives

should be modified to reflect changes in

planning, workload, and resource

allocation. Additional reviews may be

held as deemed necessary by the

supervisor. The weights assigned to

performance elements will be changed,

if necessary.

Performance Appraisal

A performance appraisal is scheduled

for the final weeks of the annual

performance cycle, although an

individual performance appraisal may

be conducted at any time after 60 days

on approved standards. The

performance appraisal process brings

supervisors and employees together for

formal discussions on performance and

results in (1) written appraisals, (2)

performance ratings, (3) performance

pay increases and/or bonuses, (4) cash

awards, and (5) other individual

performance-related actions, as

appropriate. A performance appraisal
11682 Federal Register / Vol. 62, No. 48 / Wednesday, March 12, 1997 / Notices

may consist of two meetings held

between employee and supervisor: the

performance review meeting and the

evaluation feedback meeting.

Performance Review Meeting Between

Employee and Supervisor

The review meeting is to discuss job

performance and accomplishments.

Supervisors do not assign scores,

ratings, pay increases, or awards at this

meeting. The supervisor notifies the

employee of the review meeting in time

to allow the employee to prepare a list

of accomplishments. Employees will be

given an opportunity at the meeting to

give a personal performance assessment

and describe accomplishments. The

supervisor and employee discuss job

performance and accomplishments in

relation to the performance elements,

objectives, and planned activities

established in the performance plan.

Evaluation Feedback Meeting Between

Employee and Supervisor

In this second meeting between

employee and supervisor, the supervisor

informs the employee of management’s

appraisal of the employee’s

performance, the employee’s

performance score and rating, and any

recommended related pay increase,

bonus, award, or other personnel action.

During this second meeting, the

supervisor and employee will discuss

and document performance objectives

for the next rating period.

Performance Scores

Selection of the weighted points to

assign to an employee’s performance is

assisted by use of benchmark

performance standards (appendix D).

Each benchmark performance standard

describes the level of performance

associated with a particular point on a

rating scale. Supervisors may add

supplemental standards to the

performance plans of the employees

they supervise to further elaborate the

benchmark performance standards.

The overall score is the sum of the

individual element scores. Employees

will receive an academic-type rating of

‘‘A’’, ‘‘B’’, ‘‘C’’, or ‘‘F’’ depending upon

the percentage of goal attainment. These

summary ratings are representative of

Pattern E in Summary Level Chart in 5

CFR 430.208(d)(1). This rating will

become the rating of record, and only

those employees rated ‘‘C’’ or higher

(any element rated less than 50 percent

is unacceptable performance) will be

eligible to receive performance-based

pay increases and/or bonuses or

retention years credit for RIF. A rating

of ‘‘A’’ will be assigned for scores of 85

to 100 points, ‘‘B’’ for scores of 70

through 84, ‘‘C’’ for scores of 50 through

69, and ‘‘F’’ for scores of 0 through 49

[Note: An ‘‘F’’ constitutes an unacceptable

rating]. The academic-type ratings will be

used to determine pay or bonus values and

to award additional RIF retention years as

follows:

Rating Compensation

RIF retention

years added

‘‘A’’ ................. 4 shares ...... 10.

‘‘B’’ ................. 2 shares ...... 7.

‘‘C’’ ................. 1 share ........ 3 (SEE

NOTE).

‘‘F’’ .................. 0 .................. 0.

Note: Only those employees rated ‘‘C’’ or

higher (with no element rated less than 50

percent) will be eligible to receive

performance-based pay increases and/or

bonuses or retention years credit for RIF

retention.

Performance Based Actions

MRMC will implement a two step

process to deal with poor performers.

This process may lead to involuntary

separations with grievance or appeal

rights if the overall level of performance

is below that of a ‘‘C’’ rating or the

employee receives less than 50 percent

of the assigned benchmark score in any

element.

The process will begin with the

recognition that an employee’s

performance is unacceptable (any

element rated less than 50 percent of the

assigned benchmark score), or that an

employee receives an annual rating of

‘‘F’’. The two steps are as follows: (1)

performance improvement plan (PIP),

and (2) separation.

When the employee is determined to

be performing below the ‘‘C’’ level, or

below 50% of the assigned benchmark

score in any element, the supervisor and

employee will develop a structured PIP

that will be monitored for a reasonable

period of time.

If the employee fails to improve after

this structured plan, the employee will

be given notice of proposed appropriate

action. The activity may consider a

change in assignment or reduction in

pay as opposed to removal if the

mission, organizational structure and

available resources warrant such action.

The separated employee will have

subsequent due process recourse as a

former employee. (Note: Performance

based adverse actions may be taken

under 5 U.S.C., Chapter 75, rather than

Chapter 43).

If, as a result of the PIP, an employee’s

performance improves to the ‘‘C’’ or

above level, or the 50% or above level

in all assigned benchmark level

elements, prior to the end of the annual

performance cycle, the employee is

appraised again at the end of the annual

performance cycle. If the employee

attains an annual rating of ‘‘C’’ or

higher, an increase to base pay and/or

bonus and RIF retention years credit

will be earned.

If, as a result of the PIP, an employee’s

performance improves to the ‘‘C’’ or

above level, or the 50% or above level

in all assigned benchmark level

elements, after the end of the annual

performance cycle, employment

continues but no increase to base pay

and/or bonus or RIF retention years

credit are granted.

Employee Relations

Employees covered by the project will

be evaluated under a performance

evaluation system that affords grievance

rights comparable to those provided

currently. The MRMC will maintain the

substantive and procedural appeal

rights currently afforded when taking

action for misconduct and poor

performance.

Senior Executive Service and 5 U.S.C.

3104 (ST) Employees

Members of the SES will remain

under the current SES performance

appraisal system. 5 U.S.C. 3104 (ST)

employees will be included in the

project performance evaluation system,

but will not be in the project pay-forperformance system.

Awards

The MRMC currently has an extensive

awards program consisting of both

internal and external awards. While not

linked to the pay-for-performance

system, awards will continue to be

given for special acts and other

categories as they occur. Awards may

include, but are not limited to, special

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

and time-off, and may be modified or

expanded as appropriate. Major Army

Command (MACOM) and DOD awards

and other honorary noncash awards will

be retained.

In an effort to foster and encourage

team work among its employees, a

Commander/Director may allocate a

sum of money to a team for outstanding

completion of a special task or

significant achievement, and the team

may decide the individual distribution

of the total dollars among themselves.

Members of the SES will remain

under their current awards system and

will not participate in the project

performance recognition bonus awards

program. 5 U.S.C. 3104 (ST) employees

will be eligible for cash awards.
Federal Register / Vol. 62, No. 48 / Wednesday, March 12, 1997 / Notices 11683

Pay Administration

Introduction

The objective is to establish a pay

system that will improve the ability of

the MRMC to attract and retain quality

employees. The new system will be a

pay-for-performance system and, when

implemented, will result in a

redistribution of pay resources based

upon individual performance.

Pay-for-Performance

MRMC will use a simplified

performance appraisal system that will

permit both the supervisor and the

employee to focus on quality of the

work. The proposed system will permit

the manager/supervisor to base

compensation on performance or value

added to the goal of the organization

rather than on longevity and risk

aversion. This system will allow

managers to withhold pay increases

from nonperformers, thereby giving the

nonperformer the incentive to improve

performance or leave government

service.

Pay-for-performance has two

components: performance pay increases

(i.e. base pay increases) and/or bonuses.

All covered employees will be given the

full amount of locality pay adjustments

when they occur, regardless of

performance. The funding for

performance pay increases and/or

bonuses is composed of money

previously available for the annual

general increase, within-grade increases,

quality step increases, and promotions

from one grade to another when the

grades are now in the same pay band.

Additionally, funds will be obtained

from salary increases withheld for poor

performance (see Performance

Evaluation).

Performance Pay Pool

The funding in the performance pay

pool will be used for base pay increases

and performance bonus pay. The

payouts made to employees from the

performance pay pool may be a mix of

base pay increases and bonus payments,

subject to the pay ceiling in the pay

bands.

The Headquarters, MRMC

Comptroller, in conjunction with each

subordinate activity Commander/

Director, will calculate the total

performance pay pool and allocate pay

pools to subordinate activities. Each

subordinate activity Commander/

Director will allocate pay pools to

organizational units or teams as

appropriate.

Performance Pay Increases and/or

Performance Bonuses

A pay pool manager is accountable for

staying within pay pool limits. The pay

pool manager assigns pay increases and/

or bonuses to individuals on the basis

of an academic-type rating, the value of

the performance pay pool resources

available, and the individual’s current

basic rate of pay within a given pay

band. A pay pool manager may request

approval from the Commander/Director

or his/her designee to grant a

performance pay increase/performance

bonus to an employee that is higher

than the compensation formula for that

employee to recognize extraordinary

achievement or to provide accelerated

compensation for local interns.

A share value will be initially

calculated for each individual based

upon a pay pool assignment that will be

composed of monies outlined

previously. For illustration purposes,

approximately 3 percent of the value of

the combined basic rates of pay of the

assigned employees will be used. A

share will be calculated so that a pay

pool manager will not exceed the

resources that are available in the pay

pool. The share value for an individual

will be determined by a relationship

that considers the individual’s current

basic rate of pay with respect to the

maximum pay rate in the respective pay

band. This relationship is as follows:

Individual Pay Increase = Pool Value *SALi*, Ni

SUM SALj Nj ( * ); j to n = 1

where:

Pool Value = 0.03 * SUM (SALk); K =

1 to n

n= number of employees in pay pool

N = Number of Shares (0–4) earned by

an employee based on their

performance rating

SAL = An individual’s basic rate of pay

SUM = The summation of the entities in

parenthesis over the range indicated

To illustrate the formula, the basic

rates of pay of the 10 employees in a pay

pool, who each earn $50,000 per year,

total to $500,000. The employees earned

a total of 30 shares based on their

ratings (5 individuals earned an ‘‘A’’

rating, and 5 individuals earned a ‘‘B’’

rating). The pay pool value is then 3

percent of the sum of $500,000, or

$15,000. The individual performance

pay increase being determined is for an

individual who earns $50,000 per year

and receives a ‘‘B’’ on the appraisal,

thus earning 2 shares. Using the

formula, the individual performance

pay increase is calculated by

multiplying the pay pool value, $15,000,

by the individual basic rate of pay,

$50,000, by the number of shares

earned, 2. This product is divided by

the sum of the products of the

individual basic rates of pay times the

number of shares earned, or 1,750,000.

The resulting individual performance

pay increase is $1,000.00 for the year.

An annual performance pay increase

could range between all of the

performance pay increase formula or

none of it, depending on the current pay

of the employee. For example, a midpoint principle will be used to

determine performance pay increases.

This principle requires that employees

in all pay bands must receive a B rating

or higher to advance their basic rate of

pay beyond the mid-point dollar

threshold of their respective pay bands.

If the performance pay increase formula

yields a dollar value for a C-rated

employee that would increase their

basic rate of pay beyond the mid-point

dollar threshold, then their basic rate of

pay will be adjusted to the mid-point

dollar threshold and the balance

converted to a performance bonus. Once

an employee has progressed beyond the

mid-point dollar threshold, future

performance pay increases will require

a ‘‘B’’ rating or greater. If an employee

attains a ‘‘C’’ rating and is beyond the

mid-point dollar threshold, performance

pay increases will be restricted to

performance bonuses only.

An annual performance pay increase

could be all the compensation formula

or none of it, depending on the current

basic rate of pay of the employee.

Annual performance pay increases will

be limited to the difference between the

particular band pay cap and the

employee’s current basic rate of pay, or

total dollar value of shares, whichever is

less, with the balance converted to a

performance bonus. This means that

employees whose basic rates of pay

have reached the upper limits of a

particular pay band will receive most

performance compensation as a

performance bonus. Cash bonuses will

not become a part of the employee’s

basic rate of pay. Employees receiving
11684 Federal Register / Vol. 62, No. 48 / Wednesday, March 12, 1997 / Notices

retained rates are subject to special rules

governing basic pay adjustments. They

may receive pay increases ranging from

0 to 50 percent of the amount of the

increase in the maximum rate of basic

pay payable for the pay band of the

employee’s position.

Supervisory Bonus

Supervisory bonuses of up to 10% of

the basic rate of pay may be paid at the

discretion of Commanders/Directors to

supervisors with employees in the same

pay band. In exceptional cases

(approved by HQ, MRMC), supervisors

who do not have employees in the same

pay band may be compensated up to 5%

of basic rate of pay. Supervisory

bonuses are not part of the basic rate of

pay. The bonus will not apply to 5

U.S.C. 3104 (ST) positions. Employees

who qualify for the bonus include

supervisors in all occupational families

with formal supervisory authority

meeting that required for coverage

under the OPM GS Supervisory Guide.

The bonus may be paid at the beginning

of a performance period.

Because the bonus is paid at the

beginning of the appraisal period, if the

individual leaves a supervisory position

or is removed from supervisory

responsibilities (unless effected through

RIF action), the prorated portion of the

bonus for the non-supervisory portion of

the performance year will be recovered

as a debt due the Government. Before

any supervisory bonus is paid, the

supervisor will sign an agreement to

make any required repayment.

Pay and Compensation Ceilings

An employee’s total monetary

compensation paid in a calendar year

may not exceed the basic pay of level I

of the Executive Schedule, consistent

with 5 USC 5307, and 5 CFR part 530,

Subpart B, except for employees in Pay

Band V of the Engineers and Scientists

Occupational Family. In this case, the

maximum rate of basic pay will be that

which is established for level IV of the

Executive Schedule.

In addition, each pay band will have

its own pay ceiling, just as grades do in

the current system. The maximum basic

pay rates for the various pay bands will

be directly keyed to the maximum rate

of basic pay for the highest grade (as in

the current system) in the band or level

IV of the Executive Schedule for Pay

Band V of the Engineers and Scientists

Occupational Family. Except for

retained rates, basic pay will be limited

to the maximum rates payable for each

pay band.

Pay Setting for Promotion

The minimum basic pay increase

upon promotion to a higher pay band

will be 6 percent. The maximum

amount of pay increase upon promotion

will not exceed $10,000.

When a temporary promotion is

terminated, the employee’s pay

entitlements will be redetermined based

on the employee’s position of record,

with appropriate adjustments to reflect

pay events during the temporary

promotion, subject to the specific

policies and rules established by

MRMC. In no case may those

adjustments increase the pay for the

position of record beyond the applicable

pay range maximum rate.

Placement in a Lower Pay Band

Employees with ratings of ‘‘F’’ or

those who receive 50 percent or less of

an assigned benchmark score in any

element will receive no pay increase

and/or bonus. This action may result in

a base salary that is identified in a lower

pay band. This occurs because the

minimum rates of basic pay in a pay

band increase as the result of the general

increase (5 U.S.C. 5303). This situation,

(a reduction in band level with no

reduction in pay) will not be considered

an adverse action, nor will band

retention provisions apply.

D. Hiring and Appointment Authorities

Hiring Authority

A candidate’s basic eligibility will be

determined using Office of Personnel

Management’s (OPM) Qualification

Standards Handbook of General

Schedule Positions. Candidates must

meet the minimum standards for entry

into the payband. For example if the

payband includes positions in grades

GS–5 and GS–7, the candidates must

meet the qualifications for positions at

GS–5 level. Specific experience/

education required will be determined

based on whether a position to be filled

is at the lower or higher end of the band.

Under the demonstration authority, the

MRMC is authorized to modify by

increasing QSH qualifications and/or

experience or substitutable education

requirements. Substitutable education

can be modified; however, no changes

can be made to standards with positive

education requirements or minimum

education requirements. In some cases,

MRMC will update these standards to

reflect current practices in the

occupational families and modern

curricula in recognized degree

programs. Selective placement factors

may be established when judged to be

critical to successful job performance.

These factors must be communicated to

all candidates for specific vacancies and

must be met for basic eligibility.

In the proposed system, as with the

current system, the individual manager

will decide whether to fill a position

from among internal candidates or to

recruit from outside.

The MRMC is committed to positive

affirmative action and equal

employment opportunity goals. Line

managers will be accountable for

understanding and implementing

policies designed to meet these goals.

Appointment Authority

Under the demonstration project,

there will continue to be career and

career conditional appointments and

temporary appointments not to exceed

one year. These appointments will use

existing authorities and entitlements.

Non-permanent positions (exceeding

one year) needed to meet fluctuating or

uncertain workload requirements will

be filled using a Contingent Employee

appointment authority.

Employees hired for more than one

year, under the contingent employee

appointment authority are given term

appointments in the competitive service

for no longer than five years. The

MRMC Commander is authorized to

extend a contingent appointment one

additional year. These employees are

entitled to the same rights and benefits

as term employees and will serve a one

year trial period. The Pay-for

Performance Management System

outlined in this Plan applies to

contingent employees.

Appointment will be made under the

same appointment authorities and

processes as regular term appointments,

but recruitment bulletins must indicate

that there is a potential for conversion

to permanent employment.

Employees hired under the contingent

employee authority may be eligible for

conversion to career-conditional

appointments. To be converted, the

employee must (1) have been selected

for the term position under competitive

procedures, with the announcement

specifically stating that the individual(s)

selected for the term position(s) may be

eligible for conversion to careerconditional appointment at a later date;

(2) served two years of substantially

continuous service in the term position;

(3) be selected under merit promotion

procedures for the permanent position;

and (4) have a current rating of ‘‘B’’ or

better.

Employees serving under regular term

appointments at the time of conversion

to the Demonstration Project will be

converted to the new contingent

employee appointments provided they

were hired for their current positions
Federal Register / Vol. 62, No. 48 / Wednesday, March 12, 1997 / Notices 11685

under competitive procedures. These

employees will be eligible for

conversion to career-conditional

appointment if they have a current

rating of ‘‘B’’ or better (or the equivalent

of ‘‘B’’ in their current evaluation

system), and are selected under merit

promotion procedures for their

permanent position after having

completed two years of continuous

service. Time served in temporary or

term positions prior to conversion to the

contingent employee appointment is

creditable, provided the service was

continuous.

Extended Probationary Period

The current one-year probationary

period will be extended to ‘‘up to three

years’’ for all newly hired employees in

all pay bands. The purpose of extending

the probationary period is to allow

supervisors an adequate period of time

to fully evaluate an employee’s ability to

complete a research cycle and/or to

fully evaluate an employee’s

contribution and conduct. The length of

the probationary period for the Engineer

and Scientist Occupational Family will

be three years. The probationary period

for all other occupational families will

be two years.

Aside from extending the time period,

all other features of the current

probationary period are retained

including the potential to remove an

employee without providing the full

substantive and procedural rights

afforded a non-probationary employee.

Any employee subject to serving a

probationary period that was appointed

prior to the implementation date will

not be affected. The ‘‘up to three year’’

probation will apply to new hires or

those who do not have reemployment

rights or reinstatement privileges.

Probationary employees will be

terminated when the employee fails to

demonstrate proper conduct, technical

competency, and/or adequate

contribution for continued employment.

When the MRMC decides to terminate

an employee serving a probationary

period because his/her work

performance or conduct during this

period fails to demonstrate his/her

fitness or qualifications for continued

employment, it shall terminate his/her

services by written notification of the

reasons for separation and the effective

date of the action. The information in

the notice as to why the employee is

being terminated shall, as a minimum,

consist of the manager’s conclusions as

to the inadequacies of his/her

performance or conduct.

Supervisory Probationary Periods

Supervisory probationary periods will

be made consistent with 5 CFR part 315,

Subchapter 315.901. Employees that

have successfully completed the initial

probationary period will be required to

complete an additional one-year

probationary period for the initial

appointment to a supervisory position.

If, during the probationary period, the

decision is made to return the employee

to a non-supervisory position for

reasons solely related to supervisory

performance, the employee will be

returned to a comparable position of no

lower pay band and pay than the

position from which he/she was

promoted.

Voluntary Emeritus Program

Under the demonstration project,

Commanders/Directors will have the

authority to offer retired or separated

individuals voluntary assignments in

their activities. This authority will

include individuals who have retired or

separated from Federal service.

Voluntary Emeritus Program

assignments are not considered

‘‘employment’’ by the Federal

Government (except for the purposes of

injury compensation). Thus, such

assignments do not affect an employee’s

entitlement to buy-outs or severance

payments based on an earlier separation

from Federal service. The Voluntary

Emeritus Program will ensure continued

quality research while reducing the

overall salary line by allowing

individuals to accept retirement

incentive with the opportunity to retain

a presence within their community. The

program will be of most benefit during

manpower reductions as individuals

could accept retirement and return to

provide valuable on-the-job training or

mentoring to less experienced

individuals.

To be accepted into the emeritus

program, a volunteer must be approved

by the subordinate activity Commander/

Director. Everyone who applies is not

entitled to a voluntary assignment. The

laboratory Commander/Director must

clearly document the decision process

for each applicant (whether accepted or

rejected) and retain the documentation

throughout the assignment.

Documentation of rejections will be

maintained for two years.

To ensure success and encourage

participation, the individual’s Federal

retirement pay (whether military or

civilian) will not be affected while

serving in a voluntary capacity. Retired

or separated Federal individuals may

accept an emeritus position without a

break or mandatory waiting period.

Volunteers will not be permitted to

monitor contracts on behalf of the

government or to participate on any

contracts where a conflict of interest

exists. The same rules that currently

apply to source selection members will

apply to volunteers.

An agreement will be established

between the volunteer, the subordinate

activity Commander/Director, and the

servicing CPO/CPAC/CPOC. The

agreement will be reviewed by the

Headquarters, MRMC legal office for

ethics determinations under the Joint

Ethics Regulations. The agreement must

be finalized before the assumption of

duties and shall include:

(a) A statement that the voluntary

assignment does not constitute an

appointment in the civil service and is

without compensation, and any and all

claims against the Government because

of the voluntary assignment are waived

by the volunteer,

(b) A statement that the volunteer will

be considered a Federal employee for

the purpose of injury compensation,

(c) Volunteer’s work schedule,

(d) Length of agreement (defined by

length of project or time defined by

weeks, months, or years),

(e) Support provided by the

subordinate activity (travel,

administrative, office space, supplies),

(f) A one-page or less Statement of

Duties and Experience,

(g) A provision that states no

additional time will be added to a

volunteer’s service credit for such

purposes as retirement, severance pay

and leave as a result of being a member

of the Voluntary Emeritus Program,

(h) A provision allowing either party

to void the agreement with 10 working

days written notice, and

(i) The level of security access

required (any security clearance

required by the position will be

managed by the subordinate activity

while the volunteer is a member of the

Voluntary Emeritus Program).

E. Expanded Developmental

Opportunities Program

The MRMC Expanded Developmental

Opportunities Program will cover all

permanent demonstration project

employees. An expanded

developmental opportunity

complements existing developmental

opportunities such as (1) long-term

training, (2) one-year work experiences

in an industrial setting via the Relations

With Industry Program, (3) one-year

work experiences in laboratories of

allied nations via the Science and

Engineer Exchange Program, (4)

rotational job assignments within the

MRMC, (5) developmental assignments
11686 Federal Register / Vol. 62, No. 48 / Wednesday, March 12, 1997 / Notices

in higher headquarters within the Army

and DOD, (6) self-directed study via

correspondence courses and local

colleges and universities, (7) details

within MRMC and to other Federal

Agencies, and (8) Intergovernmental

Personnel Act Agreements.

A developmental opportunity period

will not result in loss of (or reduction

in) pay or leave to which the employee

is otherwise entitled, or credit for time

or service. Input for performance rating

purposes will be obtained from the

gaining organization to ensure a rating

of record is on file and, if warranted, a

performance award and/or bonus and

retention years credit for RIF purposes

is documented. Each developmental

opportunity period should benefit the

MRMC, as well as increase the

employee’s individual effectiveness.

Various learning or uncompensated

developmental work experiences may

be considered, such as advanced

academic teaching or research,

sabbaticals, or on-the-job work

experience with public or non-profit

organizations. Final approval authority

will rest with the activity Commander/

Director.

The opportunity to participate in the

Expanded Developmental Opportunities

Program will be announced as

opportunities arise. Instructions for

application and the selection criteria

will be included in the announcement.

Final selection for participation in the

program will be made by activity

Commanders/Directors. The position of

employees on an expanded

developmental opportunity may be

backfilled by temporary promotion, or

temporary/contingent employees.

However, that position or its equivalent

must be made available to the employee

returning from the expanded

developmental opportunity.

In the event the employee fails to

carry out the intent/conditions of the

developmental opportunity (except for

good and sufficient reason as

determined by the activity Commander/

Director), the employee shall be liable to

the United States for payment of all

expenses. The amount shall be treated

as a debt due the United States.

Employees accepting an Expanded

Developmental Opportunity do not have

to sign a continuing service agreement

as sited in 5 USC 4108(a)(1).

F. Revised Reduction-in-Force (RIF)

Procedures

Introduction

When an employee in the MRMC

Demonstration Project is faced with

separation or downgrading due to lack

of work, shortage of funds,

reorganization, insufficient personnel

ceiling, the exercise of reemployment or

restoration rights, or furlough for more

than 30 calendar days or more than 22

discontinuous days, RIF procedures will

be used.

The procedures in 5 CFR part 351 and

OPM RIF regulations will be followed

with the modifications specified below

pertaining to competitive areas,

assignment rights, credit for

performance ratings and service

computation date.

Competitive Areas

The Headquarters and each

subordinate activity of the MRMC will

be in a separate competitive area for RIF

purposes. Further, within each

subordinate activity, detachments

located at different geographic sites will

be in a separate competitive area for RIF

purposes. Each of the four occupational

families will be a separate competitive

area within each activity. DA Interns

will continue to be part of the ACTEDS

competitive area.

Retention

Within each competitive area,

competitive levels will be established

consisting of all positions in the same

occupational family and pay band

which are similar enough in duties,

qualifications, and working conditions

that the incumbent of one position can

perform successfully the duties of any

other position in the competitive level

without unduly interrupting the work

program.

Current RIF regulations will be

modified to restrict bumping and

retreating to positions within the

employee’s current occupational family.

This feature will minimize the

disruption associated with the RIF

process. An employee may displace

another employee within the same

occupational family by bump or retreat

to one band below the employee’s

existing band. A preference eligible

veteran with a compensable serviceconnected disability of 30% or more

may retreat to positions two bands (or

the equivalent of five (5) grades) below

his/her current band.

Reductions-in-force are accomplished

using the retention factors of tenure,

veterans preference, credit for

performance ratings, and length of

service, in that order.

Contingent employees are in Tenure

Group III for reduction-in-force

purposes. Reduction-in-force

procedures are not required when

separating these employees when their

appointments expire.

Link Between Performance and

Retention

Credit for performance based on the

last three (3) ratings of record during the

preceding four (4) years will be applied

as follows: a rating of ‘‘A’’ equals 10

years; a rating of ‘‘B’’ equals 7 years; a

rating of ‘‘C’’ equals 3 years, and a rating

of ‘‘F’’ adds no credit for retention.

Credit for performance is cumulative,

not averaged. Ratings given under nondemonstration systems will be

converted to the demonstration rating

scheme and provided the equivalent

performance rating credit.

In some cases, an employee may not

have three (3) annual performance

ratings of record. In these situations,

performance credit will be given on the

basis of assumed ratings of ‘‘C’’.

An employee who has received a

written decision to demote him/her to a

lower pay band because of unacceptable

performance, competes in RIF from the

position to which he/she will be/has

been demoted. Employees who have

been demoted for unacceptable

performance, and as of the date of the

issuance of the RIF notice have not

received a performance rating in the

position to which demoted, will receive

a presumed rating of ‘‘C’’ for purposes

of RIF credit.

An employee with a current annual

performance rating of ‘‘F’’ has

assignment rights only to a position

held by another employee who has an

‘‘F’’ rating. An employee who has been

given a written decision of removal

because of unacceptable performance

will be placed at the bottom of the

retention register for their competitive

level.

Notice Period

The RIF notice period will follow

OPM guidelines.

Grade and Pay Retention

Except where waived or modified in

the waiver section of this plan, grade

and pay retention will follow current

law and regulations (e.g. occupational

family pay bands will substitute for

grade.)

Use of Voluntary Incentives

Subordinate activity Commanders/

Directors currently have delegated

authority to grant payments under the

VSIP. This authority will continue

under this project.

IV. Training

Introduction

The key to the success or failure of the

proposed demonstration project will be

the training provided for all involved.
Federal Register / Vol. 62, No. 48 / Wednesday, March 12, 1997 / Notices 11687

This training will not only provide the

necessary knowledge and skills to carry

out the proposed changes, but will also

lead to commitment to the program on

the part of participants.

Training at the beginning of

implementation and throughout the

demonstration will be provided to

supervisors, employees, and the

administrative staff responsible for

assisting managers in effecting the

changeover and operation of the new

system.

The elements to be covered in the

orientation portion of this training will

include:

(1) A description of the personnel

system, (2) how employees are

converted into and out of the system, (3)

the pay adjustment and/or bonus

process, (4) familiarization with the new

position descriptions and performance

objectives, (5) the performance

evaluation management system, (6) the

reconsideration process, and (7) the

demonstration project administrative

and formal evaluation process.

Supervisors

The focus of this project on

management-centered personnel

administration, with increased

supervisory and managerial personnel

management authority and

accountability, demands thorough

training of supervisors and mangers in

the knowledge and skills that will

prepare them for their new

responsibilities. Training will include

detailed information on the policies and

procedures of the demonstration project,

training in using the classification

system, position description

preparation, and performance

evaluation. Additional training may

focus on non-project procedural

techniques such as interpersonal and

communication skills.

Administrative Staff

The administrative staff, including

personnel specialists, subordinate

activity administrative officers, and

personnel points of contact will play a

key role in advising, training, and

coaching supervisors and employees in

implementing the demonstration

project. This staff will need training in

the procedural and technical aspects of

the project.

Employees

The MRMC Demonstration Project

Office will make and coordinate all

arrangements necessary to train

employees covered under the

demonstration project. In the months

leading up to the implementation date,

meetings will be held for employees to

fully inform them of all project

decisions, procedures, and processes.

V. Conversion

Conversion to the Demonstration Project

Initial entry into the demonstration

project for covered employees will be

accomplished through a full employee

protection approach that ensures each

employee an initial place in the

appropriate occupational family and

pay band without loss of pay. Covered

employees will be initially converted to

appropriate pay bands with respect to

type of work performed in accordance

with the steps below. If conversion into

the demonstration project is

accompanied by a geographic move, the

employee’s GS pay entitlement in the

new area must be determined before

performing the pay conversion.

a. All employees will be converted at

their current base pay at the time of

conversion. [Not applicable to special

rate employees.]

b. Employees who are on temporary

promotions at the time of conversion

will be converted to a pay band

commensurate with the grade of the

position to which temporarily

promoted. At the conclusion of the

temporary promotion, the employee will

revert to the pay band and salary which

corresponds to the prior grade of record,

plus any adjustments to base pay

realized as a result of performance while

on the temporary promotion. The only

exception will be if the original

competitive promotion announcement

stipulated that the promotion could be

made permanent.

c. All employees in a pay grade

corresponding to a pay band will be

converted to that pay band.

d. Employees who are covered by

special salary rates, prior to the

demonstration project, will no longer be

considered special rate employees

under the demonstration project. These

employees will, therefore, be eligible for

full locality pay. The total salaries of

these employees will not change upon

conversion. Rather, the employees will

receive a new base pay rate computed

by dividing their adjusted basic pay by

the locality pay factor (e.g., 1.0711 in

the Washington-Baltimore locality pay

area) for their area. Employees whose

base pay upon conversion does not fit

in the applicable pay range and would

otherwise be subject to a reduction in

pay, will be entitled to retain their

converted base rate. A full locality

adjustment will then be added to the

new base pay rate. Since no employee’s

total pay will be reduced through the

conversion process, adverse action and

pay retention provisions (except as

noted above) will not be applicable.

e. Upon conversion to the project,

time served toward Within-Grade

Increases (WIGs) will be documented

and paid to the employee on a prorated

basis (number of weeks completed in

the waiting period divided by the

number of weeks in the waiting period,

adjusted using credit for service rules).

This payment will be paid to those

individuals employed at the one-year

anniversary of the demonstration

project. Payment will be lump-sum in

nature and not a part of basic pay,

providing the employee is performing at

a ‘‘C’’ level or above.

Conversion or Movement from a Project

Position to a General Schedule Position

If a demonstration project employee is

moving to a General Schedule (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 pay band to a GSequivalent grade and the employee’s

project rates of pay to GS-equivalent

rates of pay. The converted GS grade

and GS rates of pay must be determined

before movement or conversion out of

the demonstration project and any

accompanying geographic movement,

promotion, or other simultaneous

action. For conversions upon

termination of the project and for lateral

reassignments, the converted GS grade

and rates will become the employee’s

actual GS grade and rates after leaving

the demonstration project (before any

other action). For transfers, promotions,

and other actions, the converted GS

grade and rates 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 rates were

actually in effect immediately before the

employee left the demonstration project.

Grade-Setting Provisions

An employee in a pay band

corresponding to a single GS grade is

converted to that grade. An employee in

a pay band corresponding to two or

more grades is converted to one of those

grades according to the following rules:

(a) The employee’s adjusted rate of

basic pay under the demonstration

project (including any locality payment)

is compared with step 4 rates in the

highest applicable GS rate range. (For

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

a rate range in (1) the GS base schedule,

(2) the locality rate schedule for the
11688 Federal Register / Vol. 62, No. 48 / Wednesday, March 12, 1997 / Notices

locality pay area in which the position

is located, or (3) the appropriate special

rate schedule for the employee’s

occupational series, as applicable.) If the

series is a two-grade interval series, only

odd-numbered grades are considered

below GS–11.

(b) If the employee’s adjusted project

rate equals or exceeds the applicable

step 4 rate of the highest GS grade in the

band, the employee is converted to that

grade.

(c) If the employee’s adjusted project

rate is lower than the applicable step 4

rate of the highest grade, the adjusted

rate is compared with the step 4 rate of

the second highest grade in the

employee’s pay band. If the employee’s

adjusted rate equals or exceeds step 4 of

the second highest grade, the employee

is converted to that grade.

(d) This process is repeated for each

successively lower grade in the band

until a grade is found in which the

employee’s adjusted project rate equals

or exceeds the applicable step 4 rate of

the grade. The employee is then

converted at that grade. If the

employee’s adjusted rate is below the

step 4 rate of the lowest grade in the

band, the employee is converted to the

lowest grade.

(e) Exception: If the employee’s

adjusted project rate exceeds the

maximum rate of the grade assigned

under the above-described ‘‘step 4’’ rule,

but fits in the rate range for the next

higher applicable grade (i.e., between

step 1 and step 4), then the employee

shall be converted to that next higher

applicable grade.

(f) Exception: An employee will not

be converted to a lower grade than the

grade held by the employee

immediately preceding a conversion,

lateral reassignment, or lateral transfer

into the project, unless since that time,

the employee has undergone a reduction

in band.

Pay-Setting Provisions

An employee’s pay within the

converted GS grade is set by converting

the employee’s demonstration project

rates of pay to GS rates of pay in

accordance with the following rules:

(a) The pay conversion is done before

any geographic movement or other payrelated action that coincides with the

employee’s movement or conversion out

of the demonstration project.

(b) An employee’s adjusted rate of

basic pay under the project (including

any locality payment) is converted to a

GS adjusted rate on the highest

applicable GS rate range for the

converted GS grade. (For this purpose,

a ‘‘GS rate range’’ includes a rate range

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

applicable locality rate schedule, or (3)

an applicable special rate schedule.)

(c) If the highest applicable GS rate

range is a locality pay rate range, the

employee’s adjusted project rate is

converted to a GS locality rate of pay.

If this rate falls between two steps in the

locality-adjusted schedule, the rate must

be set at the higher step. The converted

GS unadjusted rate of basic pay would

be the GS base rate corresponding to the

converted GS locality rate (i.e., same

step position). (If this employee is also

covered by a special rate schedule as a

GS employee, the converted special rate

will be determined based on the GS step

position. This underlying special rate

will be basic pay for certain purposes

for which the employee’s higher locality

rate is not basic pay.)

(d) If the highest applicable GS rate

range is a special rate range, the

employee’s adjusted project rate is

converted to a special rate. If this rate

falls between two steps in the special

rate schedule, the rate must be set at the

higher step. The converted GS

unadjusted rate of basic pay will be the

GS rate corresponding to the converted

special rate (i.e., same step position).

Within-Grade Increase—Equivalent

Increase Determinations

Service under the demonstration

project is creditable for within-grade

increase purposes upon conversion back

to the GS pay system. Performance pay

increases (including a zero increase)

under the demonstration project are

equivalent increases for the purpose of

determining the commencement of a

within-grade increase waiting period

under 5 CFR 531.405(b).

Personnel Administration

All personnel laws, regulations, and

guidelines not waived by this plan will

remain in effect. Basic employee rights

will be safeguarded and merit principles

will be maintained. Supporting

personnel specialists in CPOs/CPACs/

CPOCs will continue to process

personnel-related actions and provide

consultative and other appropriate

services.

Automation

The MRMC will continue to use the

Defense Civilian Personnel Data System

(DCPDS) for the processing of

personnel-related data. Payroll servicing

will continue from the respective

payroll offices.

Local automated systems will be

developed to support computation of

performance-related pay increases and

awards and other personnel processes

and systems associated with this

project.

Experimentation and Revision

Many aspects of a demonstration

project are experimental. Modifications

may be made from time to time as

experience is gained, results are

analyzed, and conclusions are reached

on how the system is working. The

MRMC will make minor modifications,

such as changes in the occupational

series in a occupational family without

further notice. Major changes, such as a

change in the number of occupational

families, will be published in the

Federal Register.

VI. Project Duration

Public Law 103–337 removed any

mandatory expiration date for this

demonstration. The project evaluation

plan adequately addresses how each

intervention will be comprehensively

evaluated for at least the first 5 years of

the demonstration (Proposed Plan for

Evaluation of the DOD Laboratory

Demonstration Program, OPM, 1995).

Major changes and modifications to the

interventions can be made through

announcement in the Federal Register

and would be made if formative

evaluation data warranted. At the 5-year

point, the entire demonstration will be

reexamined for either: (a) permanent

implementation, (b) a continuing test

period, or (c) expiration.

VII. Evaluation Plan

Introduction

In response to the Reinvention Project

legislation, OPM will evaluate the

project annually and provide briefings

and written reports of the findings. The

Evaluation Plan stipulates both internal

and external evaluation efforts. The

phases of the plan are outlined below.

Evaluation Phases

The evaluation effort will be carried

out in three phases: implementation,

formative, and summative evaluation.

Monitoring of the project will be

concurrent with the implementation

phase. An evaluation of this phase is

necessary to determine whether the

project is implemented as designed and

to ascertain when the monitored

processes become stable and fully

operational. The formative phase

evaluation will extend for the duration

of the project. Data will be collected

annually and periodic reports will be

issued by OPM. The summative

evaluation phase will assess overall

impact of the project during appropriate

time intervals and/or after 5 years of

operation.
Federal Register / Vol. 62, No. 48 / Wednesday, March 12, 1997 / Notices 11689

Evaluation Methodology

The evaluation will focus on the

continuum of personnel issues and will

be based on before-and-after comparison

of the personnel data, using both

quantitative and qualitative criteria.

Personnel records and reports, as well

as previously validated survey

instruments, will be used to develop

appropriate measures. New data

collection methods and measures, or

modifications to existing instruments,

may be required for some criteria.

Baseline data will be collected before

the demonstration project

implementation. The baseline survey

was administered in the Summer of

1996.

Evaluation Criteria

While it is not possible to prove a

direct causal link between intermediate

and ultimate outcomes (personnel

system changes and improved

organizational performance), indirect

cause and effect relationships can be

evidenced through the establishment of

relevant effectiveness measures. An

intervention impact model (Appendix

B) will be used to measure the

effectiveness of the various personnel

system changes or interventions.

Additional measures will be developed

as new interventions are introduced or

existing interventions modified

consistent with expected effects.

Measures may also be deleted when

appropriate. Activity specific measures

may also be developed to accommodate

specific needs or interests which are

locally unique. The evaluation model

for the Demonstration Project identifies

elements critical to an evaluation of the

effectiveness of the interventions. The

overall evaluation approach will also

include consideration of context

variables that are likely to have an

impact on project outcomes: e.g., HRM

regionalization, rightsizing, crossservice integration, and the general state

of the economy. 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 customer

satisfaction.

Data from a variety of different

sources will be used in the evaluation.

Information from existing management

information systems supplemented with

perceptual data will be used to assess

variables related to effectiveness.

Multiple methods provide more than

one perspective on how the

demonstration project 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 data will 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 (5) core

measures of subordinate activity

performance.

VIII. Demonstration Project Costs

Costs associated with the

development of the personnel

demonstration system include software

automation, training, and project

evaluation. All funding will be provided

through the MEDCOM/MRMC budget.

The projected annual expenses are as

summarized in Table 1. Project

evaluation costs are not expected to

continue beyond the first 5 years unless

the results warrant further evaluation.

Projected developmental costs do not

include potential contractor fees.

TABLE 1.—PROJECTED DEVELOPMENTAL COSTS (CURRENT YEAR DOLLARS)

Baseline FY97 FY98 FY99 FY00 FY01

Training .................................................................................................... $99K $19K $19K $19K $19K

Project Eval .............................................................................................. $17K $28K $28K $28K $28K $28K

Automation ............................................................................................... $80K $10K $10K $10K $10K $10K

Totals ....................................................................................................... $97K $137K $57K $57K $57K $57K

IX. Required Waivers to Law and

Regulation

Public Law 103–337 gave the DoD the

authority to experiment with several

personnel management innovations. In

addition to the authorities granted by

the law, the following are the waivers of

law and regulation that will be

necessary for implementation of the

Demonstration Project. In due course,

additional laws and regulations may be

identified for waiver request.

1. Waivers to Title 5, U.S. Code

Chapter 31, section 3111: Acceptance

of volunteer service—To the extent that

the acceptance of retired or separated

civilian and military are included as

volunteers under current statute.

Chapter 31, Section 3324:

Appointments to Positions Classified

Above GS–15.

Chapter 33, Section 3341: Details;

within Executive or military

departments—Increasing 120-Day

Increments for Details to 180 days.

Chapter 35, Section 3502: Order of

Retention—Applies only to the extent

that performance score is placed before

length of service.

Chapter 41, Section 4107: Pay for

Degrees.

Chapter 41, Section 4108: Employee

Agreements, Service after training; to

the extent that employees who accept an

expanded developmental opportunity

do not have to sign a continuing service

agreement.

Chapter 43, Section 4301: Definitions.

Chapter 43, Section 4302:

Establishment of Performance Appraisal

Systems.

Chapter 43, Section 4303: Actions

based on Unacceptable Performance.

Chapter 51, Sections 5101–5111:

Purpose, definitions, basis,

classification of positions, review,

authority—Applies to the extent that

white collar employees will be covered

by broadbanding. Pay category

determination criteria for federal wage

system positions remain unchanged.

Chapter 53, Sections 5301, 5302 (8)

and (9), 5303 and 5304: Pay

Comparability System—Sections 5301,

5302, and 5304 are waived only to the

extent necessary to allow (1)

demonstration project employees except

employees in Pay Band V of the

Engineers and Scientists Occupational

Family, to be treated as General

Schedule employees, (2) basic rates of

pay under the demonstration project to

be treated as scheduled rates of pay, and

(3) employees in Pay Band V of the

Engineers and Scientists Occupational

Family to be treated as SES and ST

employees for the purposes of these

provisions.

Chapter 53, Section 5305: Special

Salary rates.

Chapter 53, Sections 5331–5336:

General Schedule Pay Rates.
11690 Federal Register / Vol. 62, No. 48 / Wednesday, March 12, 1997 / Notices

Chapter 53, Sections 5361–5366:

Grade and pay retention—This waiver

applies only to the extent necessary to

(1) replace ‘‘grade’’ with ‘‘pay band’; (2)

allow demonstration project employees

to be treated as General Schedule

employees; (3) provide that pay band

retention provisions do not apply to

movements to a lower pay band as a

result of receiving a performance pay

increase that is less than the amount of

general pay increase; (4) provide that

pay retention provisions do not apply to

conversions from General Schedule

special rates to demonstration project

pay, as long as total pay is not reduced;

(5) provide that an employee on pay

retention may receive between 0 and 50

percent of the amount of the increase in

the maximum rate of basic pay payable

for the pay band of the employee’s

position. This waiver does not apply to

ST employees unless they move to a GSequivalent position under the

demonstration project under conditions

that trigger entitlement to pay retention.

Chapter 53, Section 5371: Health Care

Positions—This waiver applies only to

the extent necessary to allow

demonstration project employees to

hold positions subject to Chapter 51 of

title 5.

Chapter 55, Section 5545 (d):

Hazardous Duty Differential—This

waiver applies only to the extent

necessary to allow demonstration

project employees to be treated as

General Schedule employees. This

waiver does not apply to employees in

Pay Band V of the Engineers and

Scientists Occupational Family or ST

employees.

Chapter 57, Sections 5753, 5754, and

5755: Recruitment and Relocation

Bonuses; Retention Allowances and

Supervisory Bonuses—This waiver

applies only to the extent necessary to

allow (1) employees and positions

under the demonstration project to be

treated as employees and positions

under the General Schedule and (2)

employees in Pay Band V of the

Engineers and Scientists Occupational

Family to be treated as ST employees.

This waiver does not apply to ST

employees who continue to be covered

by these provisions as appropriate.

Chapter 59, Section 5941: Allowances

based on living costs and conditions of

environment; employees stationed

outside continental U.S. or Alaska. This

waiver applies only to the extent

necessary to provide that COLA’s paid

to employees under the demonstration

project are paid in accordance with

regulations prescribed by the President

(as delegated to OPM).

Chapter 75, Section 7512(3): Adverse

actions—This provision is waived only

to the extent necessary to (1) replace

‘‘grade’’ with ‘‘pay band’’ and (2)

provide that a reduction in band level

is not an adverse action if it results from

the employee’s pay being exceeded by

the minimum rate of his or her pay

band.

Chapter 75, Section 7512(4): Adverse

actions—This provision is waived only

to the extent that adverse action

provisions do not apply to conversions

from General Schedule special rates to

demonstration project pay, as long as

total pay is not reduced.

2. Title 5, Code of Federal

Regulations:

Part 300.601–605: Time-In-Grade

Restrictions—Restrictions eliminated

under the demonstration.

Part 308.101–103: Volunteer

Service—To the extent that retired/

separated civilians and military can

perform voluntary services.

Part 315.801 and 315.802: Probation

on Initial Appointment to a Competitive

Position—Demonstration project

employees in some occupational

families will have extended

probationary period.

Part 316.301: Term Employment—

Adding years to exceed 4 and

establishment of Contingent

appointments.

Part 316.303: Tenure of term

employees—Demonstration allows for

conversion.

Part 316.305: Eligibility for withingrade increases—Demonstration

employees no longer received WIGs.

Part 334, section 334.102: Temporary

Assignment of Employees Outside the

Agency.

Part 335.103: Covering the length of

details and temporary promotions.

Part 351.402(b): Competitive Area—

To the extent that occupational family is

the competitive area.

Part 351.403: Competitive Level—To

the extent that pay band is substituted

for grade.

Part 351.504: Credit for

Performance—Retention standing to the

extent that service credit will not be

modified based on performance rating.

Part 351.701: Assignment Involving

Displacement—To the extent that

bumping and retreating will be limited

to no more than one pay band except for

30 percent compensable veterans who

can retreat to the equivalent of 5 GS

grades.

Part 430: Subpart B, Performance

Appraisal for General Schedule,

Prevailing Rate, and Certain Other

Employees—Employees under the

demonstration project will not be

subject to the requirements of this

subpart.

Part 432: Performance Based

Reduction In Grade and Removal

Actions—Modified to the extent that an

employee may be removed, reduced in

band level with a reduction in pay,

reduced in pay without a reduction in

band level and reduced in band level

without a reduction in pay based on

unacceptable performance. Also

modified to delete reference to critical

element (all elements are critical). For

employees who are reduced in band

level without a reduction in pay,

sections 432.105 and 432.106(a) do not

apply.

Part 432, sections 104 and 105:

Addressing unacceptable performance

and proposing and taking action based

on unacceptable performance—In so far

as references to ‘‘critical elements’’ are

deleted (all elements are critical), and

adding that the employee may be

‘‘reduced in grade, or pay, or removed’’

if performance does not improve to

acceptable levels after a reasonable

opportunity. In addition, requirements

waived to the extent that a reduction in

band level is taken based on skill

utilization criteria when there is not a

reduction in pay.

Part 511: Classification Under the

General Schedule—To the extent that

grades are changed to broadbands, and

that white collar positions are covered

by broadbanding.

Part 530, subpart C: Special Salary

Rate Schedules for Recruitment and

Retention.

Part 531, subparts B, D, and E: Pay

Under the General Schedule—

Determining rate of basic pay, withingrade increases, and quality step

increases.

Part 531, subpart F: Locality Based

Comparability Payments—This waiver

applies only to the extent necessary to

allow (1) demonstration project

employees, except employees in Pay

Band V of the Engineers and Scientists

Occupational Family to be treated as

General Schedule employees, (2) basic

rates of pay under the demonstration

project to be treated as scheduled

annual rates of pay, and (3) employees

in Pay Band V of the Engineers and

Scientists Occupational Family to be

treated as ST employees for the

purposes of these provisions. This

waiver does not apply to ST employees

who continue to be covered by these

provisions, as appropriate.

Part 536: Grade and pay retention—

This waiver applies only to the extent

necessary to (1) replace ‘‘grade’’ with

‘‘pay band’’; (2) provide that pay band

retention provisions do not apply to

movements to a lower pay band as

result of receiving a performance pay

increase that is less than the amount of

the general pay increase; (3) provide

that pay retention provisions do not
Federal Register / Vol. 62, No. 48 / Wednesday, March 12, 1997 / Notices 11691

apply to conversions from General

Schedule special rates to demonstration

project pay, as long as total pay is not

reduced; (4) provide that an employee

on pay retention may receive between 0

and 50 percent of the amount of the

increase in the maximum rate of basic

pay payable for the pay band of the

employee’s position. This waiver does

not apply to ST employees unless they

move to a GS-equivalent position under

the demonstration project under

conditions that trigger entitlement to

pay retention.

Part 550.703: Severance Pay—This

waiver applies only to the extent

necessary to modify the definition of

‘‘reasonable offer’’ by replacing ‘‘two

grade or pay levels’’ with ‘‘one band

level’’ and ‘‘grade or pay level’’ with

‘‘band level’’.

Part 550.902: Hazardous Duty

Differential—This waiver applies only

to the extent necessary to allow

demonstration project employees to be

treated as General Schedule employees.

This waiver does not apply to

employees in Pay Band V of the

Engineers and Scientists Occupational

Family or ST employees.

Part 575, subparts A, B, C and D:

Recruitment and Relocation Bonuses;

Retention Allowances; Supervisory

Differentials—This waiver applies only

to the extent necessary to allow (1)

employees and positions under the

demonstration project to be treated as

employees and positions under the

General Schedule and (2) employees in

Pay Band V of the Engineers and

Scientists Occupational Family to be

treated as ST employees for the

purposes of these provisions. This

waiver does not apply to ST employees

who continue to be covered by these

provisions, as appropriate.

Part 591, subpart B: Cost-of-Living

Allowances and Post DifferentialNonforeign Areas—This waiver applies

to the extent necessary to allow (1)

demonstration project employees to be

treated as employees under the General

Schedule and (2) employees in Pay

Band V of the Engineers and Scientists

Occupational Family to be treated as ST

employees for the purposes of these

provisions. This waiver does not apply

to ST employees who continue to be

covered by these provisions, as

appropriate.

Part 752.401(a)(3): Adverse Actions—

This waiver applies only to the extent

necessary to (1) replace ‘‘grade’’ with

‘‘pay band’’ and (2) provide that a

reduction in pay band level is not an

adverse action if it results from the

employee’s pay being exceeded by the

minimum rate of his or her pay band.

Part 752.401(a)(4): Adverse Actions—

This waiver applies only to the extent

that adverse action provisions do not

apply to conversions from General

Schedule special rates to demonstration

project pay, as long as total pay is not

reduced.

Appendix A: Occupational Series by

Occupational Family

I. Engineers and Scientists

0101 Social Science

0180 Psychology

0190 Anthropology

0401 Biology

0403 Microbiology

0405 Pharmacology

0408 Ecology

0410 Zoology

0413 Physiology

0414 Entomology

0415 Toxicology

0440 Genetics

0601 General Health Science

0602 Medical Officer

0610 Nurse

0630 Dietitian & Nutritionist

0644 Medical Technologist

0662 Optometrist

0701 Veterinary Medical Science

0801 General Engineering

0808 Architecture

0830 Mechanical Engineering

0855 Electronics Engineering

0858 Biomedical Engineering

1301 General Physical Science

1306 Health Physics

1310 Physics

1320 Chemistry

1520 Mathematics

1529 Mathematical Stat

1530 Statistician

II. E&S Technicians

0181 Psychology Aid/Technician

0404 Biological Science Technician

0499 Biological Science Student

Trainee

0620 Practical Nurse

0640 Health Aid & Technician

0645 Medical Technician

0646 Pathology Technician

0647 Diagnostic Radiologic

Technologist

0649 Medical Instrument Technician

0802 Engineer Technician

0809 Construction Control

0818 Engineering Drafting

0856 Electronics Technician

1311 Physical Sciences Technician

1521 Mathematics Technician

III. Administrative

0018 Safety & Occupational Health

Management

0028 Environmental Protection Spec

0080 Security Administration

0201 Civilian Personnel Management

0205 Military Personnel Management

0301 Misc Administration & Program

0332 Computer Operation

0334 Computer Specialist

0340 Program Management

0341 Administrative Officer

0342 Support Services Administration

0343 Management/Program Analysis

0346 Logistics Management

0391 Telecommunications

0501 Financial Administration &

Program

0510 Accounting

0511 Auditing

0560 Budget Analysis

0905 General Attorney

1020 Illustrating

1035 Public Affairs

1040 Language Specialist

1071 Audiovisual Production

1082 Writing & Editing

1083 Technical Writing & Editing

1084 Visual Information

1102 Contracting

1105 Purchasing

1152 Production Control

1222 Patent Attorney

1410 Librarian

1412 Technical Information Services

1601 General Facilities & Equipment

1640 Facility Management

1670 Equipment Specialist

1710 Educational & Vocational

Training

1801 General Inspection, Investigation

and Compliance

1910 Quality Assurance

2001 General Supply

2003 Supply Program Management

2010 Inventory Management

2050 Supply Cataloging

2181 Aircraft Operation

IV. General Support

0086 Security Clerical & Asst

0302 Messenger

0303 Misc Clerk and Asst

0304 Information Receptionist

0305 Mail and File

0312 Clerk-Stenographer/Reporter

0318 Secretary

0322 Clerk-Typist

0326 Office Automation Clerical/Asst

0335 Computer Clerk/Asst

0344 Management Clerical/Asst

0525 Accounting Technician

0561 Budget Clerical/Asst

0675 Medical Records Technician

0679 Medical Clerk

1016 Museum Specialist & Technician

1060 Photography

1087 Editorial Asst

1106 Procurement Clerical/Tech

1411 Library Technician

1499 Library and Archives Student

Trainee

1531 Statistical Asst

2005 Supply Clerical/ Tech

2102 Transportation Clerk/Asst
11692 Federal Register / Vol. 62, No. 48 / Wednesday, March 12, 1997 / Notices

Appendix B: Project Evaluation and

Oversight

Intervention Impact Model—DoD Lab

Demonstration Program

1. Compensation

BILLING CODE 6325–01–P
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BILLING CODE 6325–01–C

Appendix C. Performance Elements.

Each performance element is assigned

a weight between a specified range. The

total weight of all elements in a

performance plan is 100 points. The

supervisor assigns each element some

portion of the 100 points in accordance

with its importance for mission

attainment.

All employees will be rated against at

least the five generic performance

elements listed through ‘‘e’’ below.

However, only those employees whose

duties require supervisor or manager/

leader responsibilities will be rated on

element ‘‘f’’. Supervisors will be rated

against an additional performance

element, listed at ‘‘g’’ below:

a. Technical Competence. Exhibits

and maintains current technical

knowledge, skills, and abilities to

produce timely and quality work with

the appropriate level of supervision.

Makes prompt, technically sound

decisions and recommendations that

add value to mission priorities and

needs. For appropriate career paths,

seeks and accepts developmental

and/or special assignments. Adaptive to

technological change. (Weight Range: 15

to 50)

b. Working Relationships. Accepts

personal responsibility for assigned

tasks. Considerate of others views and

open to compromise on areas of

difference, if allowed by technology,

scope, budget, or direction. Exercises

tact and diplomacy and maintains

effective relationships, particularly in

immediate work environment and

teaming situations. Always willing to

give assistance. Shows appropriate

respect and courtesy. (Weight Range: 5

to 15)

c. Communications. Provides or

exchanges oral/written ideas and

information in a manner that is timely,

accurate and cogent. Listens effectively

so that resultant actions show

understanding of what was said.

Coordinates so that all relevant

individuals and functions are included

in, and informed of, decisions and

actions. (Weight Range: 5 to 15)

d. Resource Management. Meets

schedules and deadlines, and

accomplishes work in order of priority;

generates and accepts new ideas and

methods for increasing work efficiency;

effectively utilizes and properly controls

available resources; support

organization’s resource development

and conservation goals. (Weight Range:

15 to 50)

e. Customer Relations. Demonstrates

care for customers through respectful,

courteous, reliable and conscientious

actions. Seeks out and develops solid

working relationships with customers to

identify their needs, quantifies those

needs, and develops practical solutions.

Keeps customers informed and prevents

surprises. Within the scope of job

responsibility, seeks out and develops

new programs and /or reimbursable

customer work. (Weight Range: 10 to 50)

f. Management/Leadership. Actively

furthers the mission of the organization.

As appropriate, participates in the

development and implementation of

strategic and operational plans of the

organization. Develops and implements

tactical plans. Exercises leadership skill

within the environment. Mentors junior

personnel in career development,

technical competence, and interpersonal

skills. Exercises due responsibility to

oversee technical/acquisition/

organizational positions assigned to

them. (Weight Range: 0 to 50)

g. Supervision/EEO. Works toward

recruiting, developing, motivating, and

retaining quality team members; takes

timely/appropriate personnel actions,

applies EEO/merit principles;

communicates mission and

organizational goals; by example,

creates a positive, safe, and challenging

work environment; distributes work and

empowers team members. (Weight

Range: 15 to 50)

BILLING CODE 6325–01–P
11698 Federal Register / Vol. 62, No. 48 / Wednesday, March 12, 1997 / Notices

[FR Doc. 97–6167 Filed 3–10–97; 8:45 am]

BILLING CODE 6325–01–C