32984 Federal Register / Vol. 66, No. 118 / Tuesday, June 19, 2001 / Notices

DEPARTMENT OF DEFENSE

Office of the Secretary

Proposed Science and Technology

(S&T) Reinvention Laboratory

Personnel Management Demonstration

Project at the U.S. Army

Communications-Electronics

Command (CECOM), Research,

Development and Engineering (RDE)

Community

AGENCY: DoD, Office of the Deputy

Assistant Secretary of Defense (Civilian

Personnel Policy).

ACTION: Notice of proposed

demonstration project.

SUMMARY: The National Defense

Authorization Act for Fiscal Year 1995,

as amended by Section 1114 of the

National Defense Authorization for

Fiscal Year 2001, authorizes the

Secretary of Defense to conduct

personnel demonstration projects at

Department of Defense (DoD)

laboratories designated as Science and

Technology (S&T) Reinvention

Laboratories. The above-cited legislation

authorizes DoD to conduct

demonstration projects that experiment

with new and different personnel

management concepts to determine

whether such change in personnel

policy or procedures would result in

improved Federal personnel

management.

DATES: To be considered, comments

must be submitted on or before August

11, 2001. A public hearing will be

scheduled for July 12, 2001, 1:00 p.m.,

at the Myer Center, Building 2700, Pearl

Harbor Boulevard, in the Charles Wood

area of Fort Monmouth, New Jersey

07703. Employees located at other sites

with video teleconferencing facilities

can observe the public hearing and

submit their written comments to the

address provided below.

At the time of the hearings, interested

persons or organizations may present

their written or oral comments on the

proposed demonstration. The hearings

will be informal. However, anyone

wishing to testify should contact the

person listed under FOR FURTHER

INFORMATION CONTACT and state the

hearing location, so that DoD can plan

the hearing 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 five

minutes. Written comments may be

submitted to supplement oral testimony

during the public comment period.

ADDRESSES: Written comments may be

mailed to Patricia M. Stewart, Civilian

Personnel Management Service, CPMS–

AF, Suite B–200, 1400 Key Boulevard,

Arlington, Virginia 22209–5144.

FOR FURTHER INFORMATION CONTACT: On

proposed demonstration project:

Thomas Sheehan, U. S. Army

Communications-Electronics Command,

Research Development and Engineering

Center, (AMSEL–RD–LQ), Myer Center,

Fort Monmouth, New Jersey 07703–

5201, (732) 427–4465; on proposed

demonstration project and public

hearing: DoD, Patricia M. Stewart,

CPMS–AF, Suite B–200, 1400 Key

Boulevard, Arlington, VA 22209–5144.

SUPPLEMENTARY INFORMATION: Since

1966, many studies of Department of

Defense (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: (1) Three appointment

authorities (permanent, modified term,

and temporary limited); (2) extended

probationary period for newly hired

Engineering and Science employees; (3)

pay banding; (4) streamlined delegated

examining; (5) modified reduction-inforce (RIF) procedures; (6) simplified job

classification; (7) a pay-for-performance

based appraisal system; (8) academic

degree and certificate training; (9)

sabbaticals; and (10) a voluntary

emeritus corps.

Dated: June 13, 2001.

L.M. Bynum,

Alternate OSD Federal Register Liaison

Officer, Department of Defense.

Table of Contents

I. Executive Summary

II. Introduction

A. Purpose

B. Problems With the Present System

C. Changes Required/Expected Benefits

D. Participating Organizations

E. Participating Employees and Union

Representation

F. Project Design

G. Personnel Management Board

III. Personnel System Changes

A. Pay Banding

B. Classification

C. Pay for Performance

D. Hiring Authority

E. Internal Placement and Pay Setting

F. Employee Development

G. Reduction-in-Force Procedures

IV. Implementation Training

V. Conversion

A. Conversion to the Demonstration Project

B. Conversion Out of the Demonstration

Project

VI. Project Duration

VII. Evaluation Plan

A. Overview

B. Evaluation Model

C. Evaluation

D. Method of Data Collection

VIII. Demonstration Project Costs

A. Cost Discipline

B. Developmental Costs

IX. Required Waivers to Law and Regulation

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

B. Waivers to Title 5, Code of Federal

Regulations

Appendix A: RDE Employee Duty Locations

Appendix B: Occupational Series by

Occupational Family

Appendix C: Performance Elements

Appendix D: Intervention Model

I. Executive Summary

This project was designed by the U.S.

Army Communications-Electronics

Command (CECOM), Research,

Development and Engineering (RDE)

organizations, with participation and

review by Department of Defense (DoD)

and the Office of Personnel Management

(OPM). CECOM RDE organizations are

defined as the CECOM Research,

Development and Engineering Center

(RDEC) and the CECOM Software

Engineering Center (SEC). Both the

RDEC and SEC headquarters are located

at Fort Monmouth, New Jersey.

The primary mission of the CECOM

(RDE) organizations is focused on

moving the 21st Century Army fully

into the Information Age. Although

these organizations are predominantly

organized around a technology-centric

theme, Information Age technologies

will allow us to think in network-centric

terms, i.e. the system-of-systems way of

organizing, acquiring and maintaining

our forces and capability. The RDE’s

vision is to enable commanders at all

echelons to make truly informed and

timely decisions, and see to it that those

decisions get executed, as events

require. In simple terms, getting the

right information to the right place at

the right time. CECOM RDE

organizations support the war fighting

and sustaining base communities as

well as Program Executive Offices,

Project Managers and other customers.

We manage technology-based programs

by defining, developing and acquiring

superior technologies; developing,

acquiring, testing and evaluating

systems; and sustaining and enhancing

systems and equipment for a trained

and ready Army undergoing

revolutionary changes. To do this,

CECOM RDE organizations must be able

to hire and retain enthusiastic,

innovative, and highly educated

scientists and engineers to meet mission

needs, along with dynamic, committed

technical, clerical and administrative

support personnel.

The goal of the project is to enhance

the quality and professionalism of the

Federal Register / Vol. 66, No. 118 / Tuesday, June 19, 2001 / Notices 32985

CECOM RDE workforce through

improvements in the efficiency and

effectiveness of the human resource

system. The project interventions will

strive to achieve the best workforce for

the RDE mission, adjust the workforce

for change, and improve workforce

satisfaction. This demonstration project

builds on the concepts, and uses much

of the same language, as the

demonstration projects developed by

the Army Research Laboratory (ARL),

the Aviation and Missile Research,

Development, and Engineering Center

(AMCOM RDEC), the Navy’s ‘‘China

Lake,’’ and the National Institute of

Standards and Technology (NIST). DoD,

and Department of the Army (DA) will

provide for an evaluation of the results

of the project throughout the first 5

years after implementation. The Army

has programmed a decision point 5

years into the project for permanent

implementation, modification and

additional testing, or termination of the

entire demonstration project.

II. Introduction

A. Purpose

The purpose of the project is to

demonstrate that the effectiveness of

Department of Defense (DoD)

laboratories can be enhanced by

expanding opportunities available to

employees and by allowing greater

managerial control over personnel

functions through a more responsive

and flexible personnel system. The

quality of DoD laboratories, their

people, and products has been under

intense scrutiny in recent years. A

common theme has emerged that

Federal laboratories need more efficient,

cost effective, and timely processes and

methods to acquire and retain a highly

creative, productive, educated, and

trained workforce. This project, in its

entirety, attempts to improve

employees’ opportunities and provide

managers, at the lowest practical level,

the authority, control, and flexibility

needed to achieve the highest quality

organization and hold them accountable

for the proper exercise of this authority

within the framework of an improved

personnel management system.

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

provisions of this project plan will not

be modified, duplicated in organizations

not listed in the project plan, or

extended to individuals or groups of

employees not included in the project

plan without the approval of the Deputy

Assistant Secretary of Defense (Civilian

Personnel Policy). ODASD (CPP) will

inform DA of requirements for

notification to stakeholders, which may

include Congress, employees, labor

organizations, and the public. The

extent of notification requirements will

depend on the nature and extent of the

requested project modifications. As a

minimum, however major changes and

modifications will be published in the

Federal Register subject to ODASD

(CPP) approval. Minor modifications

may be made without further notice.

B. Problems With the Present System

The current Civil Service General

Schedule (GS) system has existed in

essentially the same form since the

1920’s. Work is classified into one of

fifteen overlapping pay ranges that

correspond with the 15 grades. Pay is

set at one of those fifteen grades and the

ten interim steps within each grade. The

Classification Act of 1949 rigidly

defines types of work by series and

grade, with very precise qualifications

for each job. This system does not

quickly or easily respond to new ways

of designing work and changes in the

work itself.

The performance management model

that has existed since the passage of the

Civil Service Reform Act has come

under extreme criticism. Employees

frequently report there is inadequate

communication of performance

expectations and feedback on

performance. There are perceived

inaccuracies in performance ratings

with general agreement that the ratings

are inflated and often unevenly

distributed by grade, occupation and

geographic location.

The need to change the current hiring

system is essential as CECOM RDE

organizations must be able to recruit

and retain scientific, engineering and

information technology (IT)

professionals. The CECOM RDE

organizations 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.

Finally, current rules on training,

retraining and otherwise developing

employees make it difficult to correct

skill imbalances and to prepare current

employees for new lines of work to meet

changing missions.

C. Changes Required/Expected Benefits

The primary benefit expected from

this demonstration project is greater

organizational effectiveness through

increased employee satisfaction. The

long-standing Department of the Navy

China Lake and NIST demonstration

projects have produced impressive

statistics on increased job satisfaction

and quality of employees versus that for

the Federal workforce in general. This

project will demonstrate that a human

resource system tailored to the mission

and needs of the CECOM RDE workforce

will result in: (a) Increased quality in

the RDE workforce and resultant

products; (b) increased timeliness of key

personnel processes; (c) increased

retention of ‘‘excellent performers’’; (d)

increased success in recruitment of

personnel with critical skills; (e)

increased management authority and

accountability; (f) increased satisfaction

of RDE customers; and (g) increased

workforce satisfaction with the

personnel management system. An

evaluation model was developed by the

Director of Defense, Research and

Engineering (DDR&E) in conjunction

with laboratory and service

representatives and OPM. The model

will measure the effectiveness of

demonstration projects, as modified in

this plan, and will be used to measure

the results of specific personnel system

changes.

D. Participating Organizations

The CECOM RDE is composed of two

major organizational entities: the

Research, Development and Engineering

Center (RDEC) and the Software

Engineering Center (SEC), both

headquartered at Fort Monmouth, New

Jersey. RDE employees are

geographically dispersed at the

locations shown in Appendix A. It

should be noted that some sites

currently employ fewer than 10 people

and that the sites may change as

CECOM reorganizes, realigns, or

complies with Base Realignment and

Closure Act requirements. Successor

organizations will continue coverage in

the demonstration project.

E. Participating Employees and Union

Representation

This demonstration project will cover

approximately 2,100 CECOM RDE

civilian employees under Title 5, United

States Code in the occupations listed in

Appendix B. The project plan does not

cover members of the Senior Executive

Service (SES), Scientific and

Professional (S&T) employees, Federal

Wage System (FWS) employees,

employees presently covered by the

Defense Civilian Intelligence Personnel

System (DCIPS) and Department of

Army (DA) and Major Subordinate

Command (MSC) centrally funded

interns and co-operative education

students. Employees on temporary

32986 Federal Register / Vol. 66, No. 118 / Tuesday, June 19, 2001 / Notices

appointments will not be covered in the

demonstration project.

DA, MSC centrally funded and local

interns (hired prior to implementation

of the project) will not be converted to

the demonstration project until they

reach the target grade of the intern

program and/or convert to a CECOM

RDE employee. They will also continue

to follow the TAPES performance

appraisal system. Local interns hired

after implementation of the project will

be covered by all terms of the

demonstration project.

Personnel brought into CECOM RDE

organizations either through

appointment, promotion, reassignment,

change to a lower grade or where their

functions and positions have been

transferred to an RDE organization will

be converted to the demonstration

project.

The American Federation of

Government Employees (AFGE) and the

National Federation of Federal

Employees (NFFE) represent many

CECOM RDE employees. Of those

employees assigned to the CECOM RDE

organizations, approximately 50% are

represented by labor unions.

In April 1997, unions representing the

majority of RDE employees at Fort

Monmouth were briefed, along with

Directors and senior managers, on the

major aspects of the Personnel

Demonstration Plan. The unions have

received updates as specific proposals

evolved during the design phase. The

unions have attended town meetings

and smaller focus group briefings

provided to the workforce. CECOM RDE

organizations continue to fulfill our

obligation to consult and/or negotiate

with all labor organizations in

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

7117. We are committed to a full

partnership with our unions in the

development of this project.

F. Project Design

In September 1995, a Project Leader

was appointed to lead the reinvention

effort. During the next several months,

waivers to various restrictions in the

personnel arena were discussed, and it

was learned that these initiatives should

be merged into the DoD S&T

Reinvention Laboratory Personnel

Demonstration Project. Work then began

gathering information from the original

five Army S&T Reinvention

Laboratories. Those demonstration

projects were the first to introduce

major changes to improve the personnel

system specifically tailored to the Army

labs.

In the summer/fall of 1997, the RDEC

Associate Director for Operations hosted

a series of town meetings providing an

overview of Personnel Demonstration

Projects. These meetings were held at

Forts Monmouth and Fort Belvoir where

the majority of CECOM RDE employees

are located. Plans were outlined to

establish teams of volunteers to design

the major aspects of the project, e.g.,

Pay/Classification, Staffing, Employee

Development and Performance

Management along with an additional

team dedicated to Workforce

Communication. All levels of

employees, supervisors and the labor

organizations were invited to

participate. The Associate Director for

Operations provided executive oversight

and briefed the project to senior

managers and those local unions

representing a majority of employees.

From October 1997 through April 1998,

the teams developed their portions of

the project as outlined above. During

this time, feedback was provided to RDE

employees through briefings,

newsletters, a web site and a dedicated

anonymous electronic mailbox for

employees to post questions and receive

answers. As the majority of the members

on the teams were non-supervisory

employees, the opinions and comments

of the workforce are clearly reflected in

the overall design of this project. A draft

proposal was developed and staffed

throughout the CECOM RDE

organizations and the Command.

Comments and requested changes have

been incorporated.

To further validate the proposed Pay

for Performance (PFP) system, a test was

conducted. The goals were to provide

employees feedback on how they might

fare under PFP, increase employee and

management participation in the

process and identify areas needing

improvement before actual

implementation. The results of the test

have been briefed to senior managers,

provided to the unions, published in the

Personnel Demo Newsletter and placed

on the website. An interactive tool is

also available on the website which

permits employees to input their current

salary and calculate performance pay

outs based upon projected performance

scores.

G. Personnel Management Board

CECOM RDE organizations will create

an RDE Personnel Management Board

(PMB) to oversee and monitor the fair,

equitable, and consistent

implementation of the provisions of the

demonstration project to include

establishment of internal controls and

accountability. Permanent members of

the board will include RDE senior

leaders appointed by the RDE Center

Directors. Other members include the

CECOM Deputy Chief of Staff for

Personnel and the Equal Employment

Officer (EEO) to ensure proper

management and oversight of the

project. Sub-boards may be established

at the Center level, reporting to the RDE

Personnel Management Board, to

address specific issues within the scope

of the separate CECOM RDE

organizations. The boards will execute

the following:

(a) Determine the composition of the

pay-for-performance pay pools in

accordance with the guidelines of this

proposal and internal procedures;

(b) Review operation of pay pools and

provide guidance to Pay Pool Managers;

(c) Oversee disputes in pay pool

issues;

(d) Formulate and execute the civilian

pay budget;

(e) Manage the awards pools;

(f) Determine hiring and promotion

salaries as well as exceptions to pay for

performance salary increases;

(g) Conduct classification review and

oversight, monitoring and adjusting

classification practices and deciding

board classification issues;

(h) Approve major changes in position

structure;

(i) Address issues associated with

multiple pay systems during the

demonstration project;

(j) Establish Standard Performance

Elements and Benchmarks;

(k) Assess the need for changes to

demonstration project procedures and

policies;

(l) Review requests for Supervisory/

Team Leader Pay Adjustments and

provide recommendations to the

appropriate Center Director;

(m) Ensure in-house budget

discipline;

(n) Manage the number of employees

by occupational family and payband;

(o) Develop policies and procedures

for administering Developmental

Opportunity Programs;

(p) Ensure that all employees are

treated in a fair and equitable manner in

accordance with all policies, regulations

and guidelines covering this

demonstration project; and,

(q) Monitor the evaluation of the

project.

III. Personnel System Changes

A. Pay Banding

The design of the CECOM RDE pay

banding system takes advantage of the

many reviews performed by DA, DoD,

and OPM. The design has the benefit of

being preceded by exhaustive studies of

pay banding systems currently practiced

in the Federal sector, to include those

practiced by the Navy’s ‘‘China Lake’’

experiment and NIST. The pay banding

Federal Register / Vol. 66, No. 118 / Tuesday, June 19, 2001 / Notices 32987

*Bands III and IV overlap at the end and start

points. These two bands have been designed

following a feature used by the Navy’s ‘‘China

Lake’’ project. Upon implementation, employees in

the E&S family currently at grade GS–14 are

assigned to Band IV.

system will replace the current General

Schedule (GS) structure. Currently the

15 grades of the General Schedule are

used to classify positions and, therefore,

to set pay. The General Schedule covers

all white-collar work—administrative,

technical, clerical and professional.

Changes in this rigid structure are

required to allow flexibility in hiring,

developing, retaining, and motivating

the workforce.

1. Occupational Families

Occupations with similar

characteristics will be grouped together

into one of three occupational families

with pay band levels designed to

facilitate pay progression. Each

occupational family will be composed

of pay bands corresponding to

recognized advancement and career

progression expected within the

occupations. These pay bands will

replace individual grades and will not

be the same for each occupational

family. Each occupational family will be

divided into three to five pay bands

with each pay band covering the same

pay range now covered by one or more

GS grades. Employees track into an

occupational family based on their

current series as provided in Appendix

B. Upon implementation employees are

initially assigned to the highest band in

which their grade fits. For example a

Management Analyst GS–343–12 in the

Business and Technical Family is

assigned to Pay Band III as illustrated in

Figure 1. The upper and lower salary

limit of each band is defined by the

salary of the GS grade and step as

indicated in Figure 1. Comparison to the

GS grades was used in setting the upper

and lower dollar limits of the pay band

levels; however, once employees are

moved into the demonstration project,

GS grades will no longer apply. The

current occupations have been

examined, and their characteristics and

distribution have served as guidelines in

the development of the following three

occupational families:

Engineering and Science (E&S) (Pay

Plan DB): This occupational family

includes technical professional

positions, such as engineers, physicists,

chemists, mathematicians, operations

research analysts and computer

scientists. Specific course work or

educational degrees are required for

these occupations. Five bands have been

proposed for the E&S occupational

family:

Band I is a student trainee track

covering GS–1, step 1 through GS–4,

step 10.

Band II is a developmental track

covering GS–5, step 1 through GS–11,

step 10.

Band III * is a full-performance

technical track covering GS–12, step 1

through GS–14, step 10.

Band IV * includes both senior

technical positions along with

supervisors-managers covering GS–14,

step 1 through GS–15, step 10.

Band V is a senior scientific-technical

manager. The salary range is from 120

percent of the minimum rate of basic

pay for a GS–15 to a maximum rate of

SES level 4 (ES–4) excluding locality

pay.

Business & Technical (B&T) (Pay Plan

DE): This occupational family includes

such positions as computer specialists,

equipment specialists, quality assurance

specialists, telecommunications

specialists, engineering and electronics

technicians, procurement coordinators,

finance, accounting, administrative

computing, and management analysis.

Employees in these positions may or

may not require specific course work or

educational degrees. Five bands have

been proposed the B&T occupational

family:

Band I is a student trainee track

covering GS–1, step 1 through GS–4,

step 10.

Band II is a developmental track

covering GS–5, step 1 through GS–11,

step 10.

Band III is a full performance track

covering GS–12, step 1 through GS–13,

step 10.

Band IV is a senior technical/manager

track covering GS–14, step 1 through

GS–15, step 10.

General Support (GEN) (Pay Plan DK):

This occupational family is composed of

positions for which specific course work

or educational degrees are not required.

Clerical work usually involves the

processing and maintenance of records.

Assistant work requires knowledge of

methods and procedures within a

specific administrative area. This family

includes such positions as secretaries,

office automation clerks, and budget/

program/computer assistants. Three

bands have been proposed for the GEN

occupational family:

Band 1 includes entry-level positions

covering GS–1, step 1 through GS–4,

step 10.

Band 2 includes full-performance

positions covering GS–5, step 1 through

GS–8, step 10.

Band 3 includes senior technicians/

assistants/secretaries covering GS–9

step 1 through step 10.

2. Pay Band Design

The proposed pay bands for the

occupational families and how they

relate to the current GS framework are

shown in Figure 1.

FIGURE 1.—PAY BANK CHART

Occupational Family Equivalent GS Grades

E&S ..................................................... GS–01—GS–04 ... GS–05—GS–11 ... GS–12—GS–14 ... GS–14—GS–15 ... >GS–15.

I ............................ II ........................... III .......................... IV .......................... V.

Business & Technical ......................... GS–01—GS–04 ... GS–05—GS–11 ... GS–12—GS–13 ... GS–14—GS–15 ...

I ............................ II ........................... III .......................... IV.

General Support .................................. GS–01—GS–04 ... GS–05—GS–08 ... GS–09.

I ............................ II ........................... III.

Employees will be converted into the

occupational family and pay band that

corresponds to their GS/GM series and

grade. Each employee is assured an

initial place in the system without loss

of pay. New hires will ordinarily be

placed at the lowest salary in a pay

band. Exceptional qualifications,

specific organizational requirements, or

other compelling reasons may lead to a

higher entrance salary within a band. As

the rates of the General Schedule are

increased due to general pay increases,

the upper and lower salary limits of the

pay bands will also increase. Since pay

progression through the bands depends

directly on performance, there will be

no scheduled Within-Grade Increases

(WIGIs) or Quality Step Increases (QSIs)

for employees once the pay banding

system is in place. Special salary rates

32988 Federal Register / Vol. 66, No. 118 / Tuesday, June 19, 2001 / Notices

will no longer be applicable to

demonstration project employee.

Special provisions have been included

to ensure conversion without a loss of

pay (See section E, paragraph 8, Staffing

Supplements).

3. Pay Band V

The CECOM RDE pay banding plan

expands the pay banding concept used

at China Lake and NIST by creating Pay

Band V for the Engineering and Science

occupational family. This pay band is

designed for Senior Scientific Technical

Managers (SSTM). The current

definition of Senior Executive Service

(SES) and Scientific and Professional

(ST) positions do not fully meet the

needs of the CECOM RDE organizations.

The SES designation is appropriate

for executive level managerial positions

whose classification exceeds grade 15 of

the General Schedule. The primary

knowledge and abilities of SES

positions relate to supervisory and

managerial responsibilities. Positions

classified as ST are designed for bench

research scientists and engineers. These

positions require a very high level of

technical expertise and have little or no

supervisory responsibilities.

CECOM RDE organizations currently

have positions that warrant

classification above grade 15 of the

General Schedule because of their

technical expertise requirements. These

positions, typically division/office

chiefs, have characteristics of both SES

and ST classifications. Most of these

positions are responsible for supervising

other GS–15 positions, including lower

level supervisors, non-supervisory

engineers and scientists, and in some

cases ST positions. The supervisory and

managerial requirements exceed those

appropriate for ST positions.

Management considers the primary

requirement for these positions to be

knowledge of and expertise in the

specific scientific and technology areas

related to the mission of their

organizations, rather than the executive

leadership qualifications that are

characteristic of the SES. Historically,

incumbents of these positions have been

recognized within the community as

scientific and engineering leaders who

possess strong managerial and

supervisory abilities. Therefore,

although some of these employees have

scientific credentials that might

compare favorably with ST criteria,

classification of these positions as STs

is not an option because the managerial

and supervisory responsibilities cannot

be ignored.

Pay Band V will apply to a new

category of positions designated as

Senior Scientific Technical Managers

(SSTM). Positions so designated will

include those requiring scientific/

technical expertise and full managerial

and supervisory authority. Their

scientific/technical expertise and

responsibilities warrant classification

above the GS–15 level.

Current GS–15 division/office 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.

Other positions possibly meeting

criteria for designation as SSTM will be

reviewed on a case-by-case basis. The

salary range for SSTM positions is a

minimum of 120 percent of the

minimum rate of basic pay for GS–15

with a maximum rate of basic pay

established at the rate of basic pay

(excluding locality pay) for SES level 4

(ES–4).

Vacant SSTM positions will be filled

competitively to ensure that selectees

are preeminent technical leaders in

specialty fields who also possess

substantial managerial and supervisory

abilities. The CECOM RDE organizations

will capitalize on the efficiencies that

can accrue from central recruiting by

continuing to use the expertise of the

Army Materiel Command SES Office as

the recruitment agent.

Panels will be created to assist in

filling SSTM positions. Panel members

typically will be current or former SES

members, ST employees and later those

designated as SSTMs. In addition,

senior military officers and recognized

technical experts from outside the RDE

organizations may also serve as

appropriate. The panel will apply

criteria developed largely from the

current OPM Research Grade Evaluation

Guide for positions exceeding the GS–

15 level. The purpose of the panels is

to insure impartiality, breadth of

technical expertise and a rigorous and

demanding review.

DoD will test SSTM positions for a

five-year period. SSTM positions will be

subject to limitations imposed by OPM

and DoD. SSTM positions will be

established only in an S&T Reinvention

Laboratory that employs scientists,

engineers, or both. Incumbents of these

positions will work primarily in their

professional capacity on basic or

applied research. Secondarily, they will

also perform managerial or supervisory

duties.

The number of SSTM positions, and

the equivalent in other approved S&T

reinvention laboratory personnel

demonstration projects within DoD, will

not exceed 40. These 40 positions will

be allocated by the Assistant Secretary

of Defense (Force Management Policy)

and administered by the respective

Services. The number of positions will

be reviewed periodically to determine

appropriate position requirements.

SSTM (and the equivalent in other S&T

reinvention laboratories demonstration

projects) position allocations will be

managed separately from SES, ST, and

SL allocations. An evaluation of the

concept for these positions will be

performed during the fifth year of the

demonstration project.

The final component of Pay Band V

is the management of all Pay Band V

assets. Specifically, this authority will

be exercised at the DA level, and

includes the following: authority to

classify, create, or abolish positions

within the limitations imposed by OPM

and DoD; recruit and reassign

employees in this pay band; set pay and

appraise performance under this

project’s Pay for Performance system.

The CECOM RDE organizations want to

demonstrate increased effectiveness by

gaining greater managerial control and

authority, consistent with merit,

affirmative action, and equal

employment opportunity principles.

B. Classification

1. Occupational Series

The present General Schedule

classification system has 434

occupational series, which are divided

into 22 occupational groupings. The

CECOM RDE organizations currently

have positions in approximately 70

occupational series that fall into 14

occupational groupings. All positions

listed in Appendix B will be in the

classification structure. Provisions will

be made for including other occupations

in response to changing missions.

2. Classification Standards and Position

Descriptions

CECOM RDE organizations will use a

fully automated classification system

modeled after the Navy’s ‘‘ China Lake’’

and ARL. ARL has developed a Webbased automated classification system

that can create standardized, classified,

position descriptions under the new pay

banding system in a matter of minutes.

The present system of OPM

classification standards will be used for

the identification of proper series and

occupational titles of positions within

the demonstration project. Current OPM

Position Classification Standards will

not be used to grade positions in this

project. However, the grading criteria in

those standards will be used as a

framework to develop new and

simplified standards for the purpose of

pay band determinations. The objective

is to record the essential criteria for each

Federal Register / Vol. 66, No. 118 / Tuesday, June 19, 2001 / Notices 32989

pay band within each occupational

family by stating the characteristics of

the work, the responsibilities of the

position, and the knowledge, skills, and

abilities required. New position

descriptions will replace the current DA

Form 374, Department of the Army Job

Description. The classification standard

for each pay band will serve as an

important component in the new

position description, which will also

include position-specific information,

and provide data element information

pertinent to the job. Supervisors will

follow a computer-assisted process to

produce position descriptions. The new

descriptions will be easier to prepare,

minimize the amount of writing time

and make the position description a

more useful and accurate tool for other

personnel management functions.

Specialty work codes will be used to

further differentiate types of work and

the skills and knowledge required for

particular positions with an

occupational family and pay band. Each

code represents a specialization or type

of work within the occupation.

3. Fair Labor Standards Act

Fair Labor Standards Act (FLSA)

exemption and non-exemption

determinations will be consistent with

criteria found in 5 CFR (Code of Federal

Regulations) Part 551. All employees are

covered by the FLSA unless they meet

the criteria for exemption. The duties

and responsibilities outlined in the

classification standards for each pay

band will be compared to the FLSA

criteria. As a general rule, the FLSA

status can be matched to occupational

family and pay band as indicated in

Figure 2. For example, positions

classified in Pay Band I of the E&S

occupational family are typically

nonexempt, meaning they are covered

by the overtime entitlements prescribed

by the FLSA. An exception to this

guideline includes supervisors/

managers who meet the definitions

outlined in the OPM General Schedule

Supervisory Guide and who spend 80

percent or more of the workweek on

supervisory duties. Therefore,

supervisors/managers in any of the pay

bands who meet the foregoing criteria

are exempt from the FLSA. Supervisors

with classification authority will make

the determinations on a case-by-case

basis by comparing assigned duties and

responsibilities to the classification

standards for each pay band and the 5

CFR Part 551 FLSA criteria.

Additionally, the advice and assistance

of the Civilian Personnel Advisory

Center/Civilian Personnel Operations

Center (CPAC/CPOC) will be obtained

in making determinations as part of the

performance review process. The

benchmark position descriptions will

not be the sole basis for the

determination. Basis for exemption will

be documented and attached to each

position description. Exemption criteria

will be narrowly construed and applied

only to those employees who clearly

meet the spirit of the exemption.

Changes will be documented and

provided to the CPAC/CPOC, as

appropriate.

FIGURE 2—FLSA STATUS

[Pay bands]

Occupational Family I II III IV V

E&S ............................................................................................................................. N N/E E E E

B&T ............................................................................................................................. N N/E E E

GEN ............................................................................................................................ NNE

N—Non-Exempt from FLSA; E—Exempt from FLSA.

N/E—Exemption status determined on a case-by-case basis.

Note: Although typical exemption status under the various pay bands is shown in the above table, actual FLSA exemption determinations are

made on a case-by-case basis.

4. Classification Authority

CECOM RDE Center Directors will

have delegated classification authority

and may, in turn, re-delegate this

authority to appropriate levels. Position

descriptions will be developed to assist

managers in exercising delegated

position classification authority.

Managers will identify the occupational

family, job series, functional code,

specialty work code, pay band level,

and the appropriate acquisition codes.

Personnel specialists will provide

ongoing consultation and guidance to

managers and supervisors throughout

the classification process. The manager

will document these decisions on a form

similar to the present DA Form 374.

5. Classification Appeals

Classification appeals under this

demonstration project will be processed

using the following procedures: An

employee may appeal the determination

of occupational family, occupational

series, position title, and pay band of

his/her position at any time. An

employee must formally raise the area of

concern to supervisors in the immediate

chain of command, either verbally or in

writing. If the employee is not satisfied

with the supervisory response, he/she

may then appeal to the DoD appellate

level. Appeal decisions rendered by

DoD will be final and binding on all

administrative, certifying, payroll,

disbursing, and accounting officials of

the government. Classification appeals

are not accepted on positions which

exceed the equivalent of a GS–15 level.

Time periods for cases processed under

5 CFR, Part 511 apply.

An employee may not appeal the

accuracy of the position description, the

demonstration project classification

criteria, or the pay-setting criteria; the

assignment of occupational series to the

occupational family; the propriety of a

salary schedule; or matters grievable

under an administrative or negotiated

grievance procedure.

The evaluations of classification

appeals under this demonstration

project are based upon the

demonstration project classification

criteria. Case files will be forwarded for

adjudication through the CPAC/CPOC

providing personnel service and will

include copies of appropriate

demonstration project criteria.

C. Pay for Performance

1. Overview

The purpose of the PFP system is to

provide an effective, efficient, and

flexible method for assessing,

compensating, and managing the RDE

workforce. It is essential for the

development of a highly productive

workforce and to provide management

at the lowest practical level, the

authority, control, and flexibility

needed to achieve a quality

organization. PFP allows for more

employee involvement in the

assessment process, strives to increase

communication between supervisor and

32990 Federal Register / Vol. 66, No. 118 / Tuesday, June 19, 2001 / Notices

employee, promotes a clear

accountability of performance,

facilitates employee career progression,

and provides an understandable and

rational basis for salary changes by

linking pay and performance.

The PFP system uses annual

performance payouts that are based on

the employee’s total performance score

rather than within-grade increases,

quality step increases, promotions from

one grade to another where both grades

are now in the same pay band (i.e., there

are no within-band promotions) and

performance awards. The normal rating

period will be one year. The minimum

rating period will be 120 days. PFP

payouts can be in the form of increases

to base pay or in the form of bonuses

that are not added to base salary but

rather are given as a lump sum bonus.

Other awards such as special acts, timeoff awards, etc., will be retained

separately from the PFP payouts.

The system will have the flexibility to

be modified, if necessary, as more

experience is gained under the project.

2. Performance Objectives

Performance objectives define a target

level of activity, expressed as a tangible,

measurable objective, against which

actual achievement can be compared.

These objectives will specifically

identify what is expected of the

employee during the rating period and

will typically consist of 3 to 10 concise

statements. The employee and his/her

supervisor rater will jointly develop the

employee’s performance objectives at

the beginning of the rating period. These

are to be reflective of the employee’s

duties/responsibilities and pay band

along with the mission/organizational

goals and priorities. Objectives will be

reviewed annually and revised upon

changes in salary reflecting increased

responsibilities commensurate with

salary increases. Use of generic one-size

fits all objectives will be avoided, as

performance objectives are meant to

define an individual’s specific

responsibilities and expected

accomplishments. In contrast,

performance elements as described in

the next paragraph, will identify generic

performance characteristics, against

which the accomplishment of objectives

will be measured. As a part of this

demonstration project, training focused

on overall organizational objectives and

the development of performance

objectives will be held for both

supervisors and employees.

Performance objectives may be jointly

modified, changed or deleted as

appropriate during the rating cycle. As

a general rule, performance objectives

should only be changed when

circumstances outside the employee’s

control prevent or hamper the

accomplishment of the original

objectives. It is also appropriate to

change objectives when mission or

workload shifts occur.

3. Performance Elements

Performance elements define generic

performance characteristics that will be

used to evaluate the employee’s success

in accomplishing his/her performance

objectives. The use of generic

characteristics for scoring purposes

helps to ensure comparable scores are

assigned yet while accommodating

diverse individual objectives. This payfor-performance system will utilize

those performance elements provided in

Appendix C. All elements are critical. A

critical performance element is defined

as an attribute of job performance that

is of sufficient importance that

performance below the minimally

acceptable level requires remedial

action and may be the basis for

removing an employee from their

position. Non-critical elements will not

be used. Each of the performance

elements will be assigned a weight,

which reflects its importance in

accomplishing an individual’s

performance objectives. A minimum

weight is set for each performance

element. The sum of the weights for all

of the elements must equal 100.

A single set of performance elements

will be used for evaluating the annual

performance of all CECOM RDE

personnel covered by this plan. This set

of performance elements may evolve

over time, based on experience gained

during each rating cycle. This evolution

is essential to capture the critical

characteristics the organization

encourages in its workforce toward

meeting individual and organizational

objectives. This is particularly true in an

environment where technology and

work processes are changing at an

increasingly rapid pace. The RDE

Personnel Management Board will

annually review the set of performance

elements and set them for the entire

organization before the beginning of the

rating period. The following is an initial

set of proposed performance elements

along with the minimum weight:

(1) Technical Competence (Minimum

Weight: 15%)

(2) Interpersonal Skills (Minimum

Weight: 10%)

(3) Management of Time and Resources

(Minimum Weight: 15%)

(4) Customer Satisfaction (Minimum

Weight: 10%)

(5) Team/Project Leadership (Minimum

Weight: 15%)

(6) Supervision/EEO (Minimum Weight:

25%)

All employees will be rated against the

first four performance elements. Team/

Project Leadership is mandatory for

team leaders and Supervision/EEO is

mandatory for all managers/supervisors.

At the beginning of the rating period,

Pay Pool Managers will review the

objectives and weights assigned to

employees within the pay pool, to verify

consistency and appropriateness.

4. Performance Feedback and Formal

Ratings

The most effective means of

communication is person-to-person

discussion between supervisors and

employees of requirements,

performance goals and desired results.

Employees and supervisors alike are

expected to actively participate in these

discussions for optimum clarity

regarding expectations and identify

potential obstacles to meeting goals. In

addition, employees should explain (to

the extent possible) what they need

from their supervisor to support goal

accomplishment. The timing of these

discussions will vary based on the

nature of work performed, but will

occur at least at the mid-point and end

of the rating period. The supervisor and

employee will discuss job performance

and accomplishments in relation to the

performance objectives and elements. At

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

formal progress review. More frequent,

task specific, discussions may be

appropriate in some organizations. In

cases where work is accomplished by a

team, team discussions regarding goals

and expectations will be appropriate.

The employee will provide a list of

his/her accomplishments to the

supervisor at both the mid-point and

end of the rating period. An employee

may elect to provide self-ratings on the

performance elements and/or solicit

input from team members, customers,

peers, supervisors in other units,

subordinates, and other sources which

will permit the supervisor to fully

evaluate accomplishments during the

rating period.

At the end of the rating period,

following a review of the employee’s

accomplishments, the supervisor will

rate each of the performance elements

by assigning a score between 0 and 50.

Benchmark performance standards have

been developed that have been

developed that describe the level of

performance associated with a score.

Using these benchmarks, the supervisor

decides where (at any point on a scale

of 0 to 50), the performance of the

employee fits and assigns an

Federal Register / Vol. 66, No. 118 / Tuesday, June 19, 2001 / Notices 32991

appropriate score. It should be noted

that these scores are not discussed with

the employee or considered final until

all scores are reconciled and approved

by the Pay Pool Manager. The element

scores will then be multiplied by the

element-weighting factor to determine

the weighted score expressed to two

decimal points. The weighted scores for

each element will then be totaled to

determine the employees overall

appraisal score and rounded to a whole

number as follows: if the digit to the

right of the decimal is between five and

nine it should be rounded to the next

higher whole number, if the digit to the

right of the decimal is between one and

four, it should be dropped.

A total score of 10 or above will result

in a rating of acceptable. A total score

of 9 or below will result in a rating of

unacceptable, and requires the

employee be placed on a Performance

Improvement Plan (PIP) immediately or

following a temporary assignment. A

score of 9 or below in a single element

will also result in a rating of

unacceptable, and requires the

employee be placed on a PIP. If at the

conclusion of the PIP the employee’s

performance improves to an acceptable

level, a new rating of record will be

issued.

5. Unacceptable Performance

Informal employee performance

reviews will be a continuous process so

that corrective action, to include placing

an employee on a Performance

Improvement Plan (PIP), may be taken

at any time during the rating cycle.

Whenever a supervisor recognizes an

employee’s performance on one or more

performance elements is unacceptable,

the supervisor should immediately

inform the employee. Efforts will be

made to identify the possible reasons for

the unacceptable performance.

As an informal first step, the

supervisor and employee may explore a

temporary assignment to another unit in

the organization. This recognizes

conflicts sometimes occur between a

supervisor and an employee, or that an

employee may be assigned to a position

for which they are not suited. The

supervisor is under no obligation to

explore this option prior to taking more

formal action. If the temporary

assignment is not possible or has not

worked out, and the employee

continues to perform at an unacceptable

level or has received an unacceptable

rating, written notification outlining the

unacceptable performance will be

provided to the employee. At this point

an opportunity to improve will be

structured in a PIP. The supervisor will

identify the items/action which need to

be corrected or improved; will outline

required time frames (no less than 30

days) for such improvement; and will

provide the employee with any

available assistance as appropriate.

Progress will be monitored during the

PIP and all counseling sessions will be

documented.

If at the conclusion of the PIP the

employee’s performance is acceptable,

no further action is necessary. If a PIP

ends prior to the end of the annual

performance cycle and the employee’s

performance improves to an acceptable

level, the employee is appraised again at

the end of the annual performance

cycle.

If the employee fails to improve

during the PIP, the employee will be

given notice of proposed appropriate

action. This action can include: removal

from the Federal service, placement in

a lower pay band with a corresponding

reduction in pay (demotion), reduction

in pay within the same pay band, or a

change in position or occupational

family. For the most part, employees

with an unacceptable rating will not be

permitted to remain at their current pay

band or salary. Reductions in salary

within the same pay band or changes to

a lower pay band will be accomplished

with a minimum of a 5 percent decrease

in an employee’s base pay.

(Note: Nothing in this subsection will

preclude action under Title 5, United States

Code, Chapter 75, when appropriate.)

All relevant documentation

concerning a reduction in pay or

removal based on unacceptable

performance will be preserved and

made available for review by the

affected employee or a designated

representative. As a minimum, the

record will consist of a copy of the

notice of proposed personnel action, the

employee’s written reply, if provided, or

a summary when the employee makes

an oral reply. Additionally, the record

will contain the written notice of

decision and the reasons therefore;

along with any supporting material

including documentation regarding the

opportunity afforded the employee to

demonstrate improved performance.

If the employee’s performance

deteriorates to an unacceptable level, in

any element, within two years from the

beginning of a PIP, follow-on actions

may be initiated with no additional

opportunity to improve. If an

employee’s performance is at an

acceptable level for two years from the

beginning of the PIP, and performance

once again declines to an unacceptable

level, the employee will be given an

additional opportunity to improve,

before proposing follow-on actions.

6. Reconciliation Process

Following the initial scoring of each

employee by the rater, the rating

officials in an organizational unit, along

with their next level of supervision, will

meet to ensure consistency and equity

of the ratings. In this step, each

employee’s performance objectives,

accomplishments, preliminary scores

and current salary are compared.

Through discussion and consensus

building, consistent and equitable

ratings are reached.

Managers will not prescribe a

distribution of total scores. The Pay Pool

Manager will then chair a final review

with the rating officials who report

directly to him or her to validate these

ratings. If consensus cannot be reached

in this process, the Pay Pool Manager

makes all final decisions. After this

reconciliation process is complete,

scores are finalized. Payouts proceeds

according to each employee’s final score

and current salary. Upon approval of

this plan, implementing procedures and

regulations will provide details on this

process to employees and supervisors.

7. Pay Pools

Employees within the CECOM RDE

organizations will be placed into pay

pools. Pay pools are combinations of

organizational elements (e.g.,

Directorates, Divisions, Branches,

Offices, etc.) that are defined for the

purpose of determining performance

payouts under the PFP system. The RDE

Center Directors will establish pay pools

within their respective organizations.

Typically, pay pools will have between

35 and 300 employees. A pay pool

should be large enough to encompass a

reasonable distribution of ratings but

not so large as to compromise rating

consistency. Supervisory personnel will

be placed in a pay pool separate from

subordinate non-supervisory personnel.

Neither the Pay Pool Manager nor

supervisors within a pay pool will

recommend or set their own individual

pay. Decisions regarding the amount of

the performance payout are based on the

established formal payout calculations.

Funds within a pay pool available for

performance payouts are calculated

from anticipated pay increases under

the existing system and divided into

two components, base pay and bonus.

The funds within a Pay Pool used for

base pay increases, are those that would

have been available from within-grade

increases, quality step increases and

promotions (excluding the costs of

promotions still provided under the

banding system). This amount will be

defined based on historical data and set

between 2.0 percent–2.4 percent of total

32992 Federal Register / Vol. 66, No. 118 / Tuesday, June 19, 2001 / Notices

salary annually. The funds available to

be used for bonus payouts are funded

separately within the constraints of the

organization’s overall award budget.

This amount will be defined based on

historical data and set between 1.0

percent–1.4 percent of total salary

annually. The sum of these two factors

is referred to as the pay pool percentage

factor. The RDE Personnel Management

Board will annually review the pay pool

funding formula and recommend

adjustments to the RDE Center Directors

to ensure cost discipline over the life of

the demonstration project. Cost

discipline is assured within each pay

pool by limiting the total base pay

increase to the funds available, based on

what would have been available in the

General Schedule system from withingrade increases, quality step increases

and within-band promotions. RDE

Center Directors may reallocate the

amount of funds assigned to each pay

pool as necessary to ensure equity and

to meet unusual circumstances.

8. Performance Payout Determination

The performance payout an employee

will receive is based on the total

performance score from the Pay for

Performance assessment process. An

employee will receive a performance

payout as a percentage of current salary.

This percentage is based on the number

of shares that equates to their final

appraisal score. Shares will be awarded

on a continuum as follows:

Score = Shares

50 = 3

40 = 2

30 = 1

21 = .1

10–20 = 0

≤9=0 (Performance Improvement Plan

required)

Fractional shares will be awarded for

scores that fall in between these scores.

For example: A score of 38 will equate

to 1.8 shares, and a score of 44 will

equate to 2.4 shares.

The value of a share cannot be exactly

determined until the rating and

reconciliation process is complete. The

share value is expressed as a percentage.

The formula that computes the value of

each share is based on the (1) value of

pay pool, (2) the employee’s pay, (3) the

number of shares awarded to each

employee in the pay pool, and (4) the

total number of shares awarded in the

pay pool. This formula assures that each

employee within the pool receives a

share amount equal to all others in the

same pool who are at the same rate of

basic pay and receiving the same score.

The formula is shown in figure 3.

Figure 3. Formula

Individual Pay Increase = Pool Value

SUM(tSAL * tN)

Where:

F = Payout Factor; initially 3.8 percent of

combined basic rates of pay of the

assigned employees in a pay pool

SUM = Summation of entities within

parenthesis

SAL = An individual’s basic rate of pay

tSAL = Total of basic rates of pay in a pay

pool

Pool Value = F * (tSAL)

N = Number of shares (0 to 3) earned by an

individual employee based on his/her

score (0 to 50)

tN = Total of shares earned by employees in

pool

A Pay Pool Manager is accountable for

staying within pay pool limits. The Pay

Pool Manager makes final decisions on

pay increases and/or bonuses to

individuals based on rater

recommendation, the final score, the

pay pool funds available, and the

employee’s current salary. A Pay Pool

Manager may request approval from the

Personnel Management Board at the

Center level or its designee to grant a

pay increase to an employee that is

higher than the one generated by the

compensation formula for that

employee. Examples of employees who

might warrant such consideration are

those making extraordinary

achievements or to provide accelerated

compensation for a local intern.

9. Base Pay Increases and Bonuses

The amount of money available for

performance payouts is divided into two

components, base pay increases and

bonuses. The base pay and bonus funds

are based on the pay pool funding

formula established annually. Once the

individual performance amounts have

been determined, the next step is to

determine what portion of each payout

will be in the form of a base pay

increase as opposed to a bonus

payment. The payouts made to

employees from the pay pool may be a

mix of base pay and bonus, such that all

of the allocated funds are disbursed as

intended. To continue to provide

performance incentives while also

ensuring cost discipline, base pay

increases may be limited or capped.

Certain employees will not be able to

receive the projected base pay increase

due to base pay caps. Base pay is

capped when an employee reaches the

maximum rate of pay in an assigned pay

band, when the mid-point rule applies

(see below) or when the Significant

Accomplishment/Contribution rule

applies (see below). Also, for employees

receiving retained rates above the

applicable payband maximum, the

entire performance payout will be in the

form of a bonus payment.

When capped, the total payout an

employee receives will be in the form of

a bonus versus the combination of base

pay and bonus. Bonuses are cash

payments and are not part of the basic

pay for any purpose (e.g., lump sum

payments of annual leave on separation,

life insurance, and retirement). The

maximum base pay rate under this

demonstration project will be the

unadjusted base pay rate of GS–15/Step

10, except for employees in Pay Band V

of the E&S Occupational Family. In this

case, the salary range is a minimum of

120 percent of the minimum rate of

basic pay for GS–15 with a maximum

rate of basic pay established at the rate

of basic pay (excluding locality pay) for

ES–4.

If the organization determines it is

appropriate, it may re-allocate a portion

(up to the maximum possible amount)

of the unexpended base pay funds for

capped employees to uncapped

employees. This re-allocation will be

determined by the Pay Pool Manager.

Any dollar increase in an employee’s

project base pay increase will be offset,

dollar for dollar, by an accompanying

reduction in the employee’s project

bonus payment. Thus, the employee’s

total performance payout is unchanged.

10. Mid-Point Rule

To provide added performance

incentives as an employee progresses

through a pay band, a mid-point rule

will be used to determine base pay

increases. The mid-point rule dictates

that any employee must receive a score

of 30 or higher for their base pay to

cross the salary midpoint of their pay

band. Also, once an employee’s base

pay exceeds the salary midpoint of their

band, the employee must receive a score

of 30 or higher to receive any additional

base pay increases. Any amount of an

Federal Register / Vol. 66, No. 118 / Tuesday, June 19, 2001 / Notices 32993

employee’s performance payout, not

paid in the form of a base pay increase

because of the mid-point rule, will be

paid as a bonus. This rule effectively

raises the standard of performance

expected of an employee once the salary

mid point of a band is crossed. This

applies to all employees in every

occupational family and pay band.

11. Significant Accomplishment/

Contribution Rule

The purpose of this rule is to maintain

cost discipline while ensuring that

employee payouts are in consonance

with accomplishments and levels of

responsibility. The rule will apply only

to employees in E&S Band III whose

base salary falls within the top 15

percent of the band. For employees

meeting these criteria, the following

provisions will apply:

If an employee’s score falls in the top

third of scores received in his/her pay

pool, he/she will receive the full

allowable base pay increase portion of

the performance payout. The balance of

the payout will be paid as a lump sum

bonus.

If an employee’s score falls in the

middle third of scores received in his/

her pay pool, the base pay increase

portion will not exceed 1% of base

salary. The balance of the payout will be

paid as a lump sum bonus.

If an employee’s appraisal score falls

in the bottom third of scores received in

his/her pay pool, the full payout will be

paid as a lump sum bonus.

12. Awards

To provide additional flexibility in

motivating and rewarding individuals

and groups, some portion of the

performance award budget will be

reserved for special acts and other

categories as they occur. Awards may

include, but are not limited to, special

acts, patents, suggestions, on the spot,

and time-off. The funds available to be

used for awards are separately funded

within the constraints of the

organization’s overall award budget.

While not directly linked to the pay

for performance system, this additional

flexibility is important to encourage

outstanding accomplishments and

innovation in accomplishing the diverse

mission of the CECOM RDE

organizations. Additionally, to foster

and encourage teamwork among its

employees, organizations may give

group awards. Under the demonstration

project, a team may elect to distribute

such awards among themselves. Thus, a

team leader or supervisor may allocate

a sum of money to a team for

outstanding performance, and the team

may decide the individual distribution

of the total dollars among themselves.

The Commanding General, CECOM will

have the authority to grant special act

awards to covered employees of up to

$10,000 IAW the criteria of AR 672–20,

Incentive Awards.

13. General Pay Increase

Employees, who are on a PIP at the

time pay determinations are made, do

not receive performance payouts or the

General Pay Increase. An employee that

receives an unacceptable rating of

record will not receive any portion of

the General Pay Increase or RIF service

credit until such time as their

performance improves to the acceptable

level and remains acceptable for at least

90 days. When the employee has

performed acceptably for at least 90

days, the General Pay Increase will be

granted at the beginning of the next pay

period after the supervisor authorizes its

payment.

These actions may result in a base

salary that is identified in a lower pay

band. This occurs because the minimum

rates of basic pay in a pay band

increases as the result of the General

Pay 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.

14. Reverse Feedback

Employee feedback to supervisors is

considered essential for the success of

the Pay for Performance System. A

feedback instrument for subordinates to

anonymously evaluate the effectiveness

of their supervisors is being developed

and shall be implemented as part of the

demonstration project. Supervisors and

their managers will be provided the

results of that feedback in a format that

does not identify individual raters or

ratings. The data will be aggregated into

a summary and used to establish both

personal and organizational

performance development goals. The

use of this type of instrument will help

focus attention on desired leadership

behaviors, structure the feedback in a

constructive manner, and offset the

power imbalance that often prevents

supervisors from getting useful feedback

from their employees.

15. Grievances and Disciplinary Actions

An employee may grieve the

performance rating /score received

under the PFP system. Non-bargaining

unit employees, and bargaining unit

employees covered by a negotiated

grievance procedure, which does not

permit grievances over performance

ratings, must file under administrative

grievance procedures. Bargaining unit

employees, whose negotiated grievance

procedures cover performance-rating

grievances must file under those

negotiated procedures.

Except where specifically waived or

modified in this plan, adverse action

procedures under 5 CFR part 752

remain unchanged.

D. Hiring Authority

1. Qualifications

The qualifications required for

placement into a position in a pay band

within an occupational family will be

determined using the OPM

Qualification Standards Handbook for

General Schedule (GS) positions. Since

the pay bands are anchored to the GS

grade levels, the minimum qualification

requirements for a position will be the

requirements corresponding to the

lowest GS grade incorporated into that

pay band. For example, for a position in

the E&S occupational family, Pay Band

II individuals must meet the basic

requirements for a GS–5 as specified in

the qualification standard for

Professional and Scientific Positions.

Selective factors may be established

for a position in accordance with the

OPM Qualification Standards

Handbook, when determined to be

critical to successful job performance.

These factors will become part of the

minimum requirements for the position

and applicants must meet them in order

to be eligible. If used, selective factors

will be stated as part of the qualification

requirements in vacancy

announcements and recruiting bulletins.

2. Delegated Examining

Competitive service positions with

the CECOM RDE Demonstration Project

will be filled through Merit Staffing or

under Delegated Examining. The ‘‘Rule

of Three’’ will be eliminated. When

there are no more than 15 qualified

applicants and no preference eligibles,

all eligible applicants are immediately

referred to the selecting official without

rating and ranking. Rating and ranking

will be required only when the number

of qualified candidates exceeds 15 or

there is a mix of preference and nonpreference applicants. Statutes and

regulations covering veterans’

preference will be observed in the

selection process and when rating and

ranking are required. If the candidates

are rated and ranked, a random number

selection method using the application

control number will be used to

determine which applicants will be

referred when scores are tied after the

rating process. Veterans will be referred

ahead of non-veterans within the same

score.

32994 Federal Register / Vol. 66, No. 118 / Tuesday, June 19, 2001 / Notices

3. Legal Authority

For actions taken under the auspices

of the Demonstration Project, the legal

authority, Public Law 103–337 will be

used. For all other actions, the CECOM

RDE organizations will continue to use

the nature of action codes and legal

authority codes prescribed by OPM,

DoD or DA.

4. Revisions to Term Appointments

The CECOM RDE organizations

conduct a variety of projects that range

from three to six years. The current fouryear limitation on term appointments

often forces the termination of term

employees prior to completion of

projects they were hired to support.

This disrupts the research and

development process and affects the

organization’s ability to accomplish the

mission and serve its customers.

CECOM RDE organizations will

continue to have career and career

conditional appointments and

temporary appointments not to exceed

one year. These appointments will use

existing authorities and entitlements.

Under the demonstration project,

CECOM RDE organizations will have the

added authority to hire individuals

under a modified term appointment.

These appointments will be used to fill

positions for a period of more than one

year, but not more than a total of five

years when the need for an employee’s

services is not permanent. The modified

term appointments differ from term

employment as described in 5 CFR part

316 in that they may be made for a

period not to exceed five, rather than

four years. RDE Directors are authorized

to extend a term appointment one

additional year.

Employees hired under the modified

term appointment authority are in a

non-permanent status, but may be

eligible for conversion to careerconditional 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 may be eligible for conversion

to a career-conditional appointment at a

later date; (2) have served two years of

continuous service in the term position;

(3) be selected under merit promotion

procedures for the permanent position;

and (4) be performing at the acceptable

level of performance with a current

score of 30 or greater.

Employees serving under regular term

appointments at the time of conversion

to the demonstration project will be

converted to the new modified term

appointments provided they were hired

for their current positions under

competitive procedures. These

employees will be eligible for

conversion to career-conditional

appointments if they (1) have served

two years of continuous service in the

term position; (2) are selected under

merit promotion procedures for the

permanent position; and (3) are

performing at the acceptable level of

performance with a current score of 30

or greater (or equivalent if not yet rated

under the demonstration project). Time

served in term positions prior to

conversion to the modified term

appointment is creditable, provided the

service was continuous. Employees

serving under modified term

appointments under this plan will be

covered by the plan’s pay for

performance system.

5. Extended Probationary Period

The current one year probationary

period will be extended to three years

for all newly hired permanent careerconditional employees in the

Engineering and Science occupational

family. 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 cycle of work and to fully

assess an employee’s contribution and

conduct. The three-year probationary

period will apply only to new hires

subject to a probationary period.

If a probationary employee’s

performance is determined to be

satisfactory at a point prior to the end

of the three year probationary period, a

supervisor has the option of ending the

probationary period at an earlier date,

but not before the employee has

completed one year of continuous

service. If the probationary period is

terminated before the end of the threeyear period, the immediate supervisor

will provide written reasons for his/her

decision to the next level of supervision

for concurrence prior to implementing

the action. Aside from extending the

time period for all newly hired

permanent career-conditional

employees in the Engineering and

Science occupational family, 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 nonprobationary employee. Any employee

appointed prior to the implementation

date will not be affected.

6. Termination of Probationary

Employees

Probationary employees may be

terminated when they fail to

demonstrate proper conduct, technical

competency, and/or acceptable

performance for continued employment.

When a supervisor decides to terminate

an employee during the probationary

period because his/her work

performance or conduct is unacceptable,

the supervisor shall terminate the

employee’s services by written

notification stating the reasons for

termination and the effective date of the

action. The information in the notice

shall at a minimum, consist of the

supervisor’s conclusions as to the

inadequacies of his/her performance or

conduct, or those conditions arising

prior to appointment that support the

termination.

7. Supervisory Probationary Periods

Supervisory probationary periods will

be made consistent with 5 CFR 315.

Employees that have successfully

completed the initial probationary

period will be required to complete an

additional one-year probationary period

for initial appointment to a supervisory

position. If, during this probationary

period, the decision is made to return

the employee to a non-supervisory

position for reasons related to

supervisory performance, the employee

will be returned to a comparable

position of no lower pay than the

position from which they were

promoted or reassigned.

8. Volunteer Emeritus Corps

Under the demonstration project, RDE

Directors will have the authority to offer

retired or separated employees

voluntary positions. Voluntary Emeritus

Corps assignments are not considered

employment by the Federal government

(except for purposes of injury

compensation). Thus, such assignments

do not affect an employee’s entitlement

to buyouts or severance payments based

on an earlier separation from Federal

service.

The Voluntary Emeritus Corps will

ensure continued quality services while

reducing the overall salary line by

allowing higher paid employees to

accept retirement incentives with the

opportunity to retain a presence in the

RDE community. The program will be

beneficial during manpower reductions

as employees accept retirement and

return to provide a continuing source of

corporate knowledge and valuable onthe-job training or mentoring to lessexperienced employees.

To be accepted into the emeritus

corps, a volunteer must be

recommended by an RDE manager to a

directorate director. Everyone who

applies is not entitled to an emeritus

position. The responsible director must

Federal Register / Vol. 66, No. 118 / Tuesday, June 19, 2001 / Notices 32995

document acceptance or rejection of the

applicant. If accepted, the

documentation must be retained

throughout the assignment. If rejected,

documentation will be maintained for

two years.

To ensure success and encourage

participation, the volunteer’s federal

retirement pay (whether military or

civilian) will not be affected while

serving in a voluntary capacity. Retired

or separated federal employees may

accept an emeritus position without a

break or mandatory waiting period.

Voluntary Emeritus Corps volunteers

will not be permitted to monitor

contracts on behalf of the government or

to participate on any contracts or

solicitations where a conflict of interest

exists. The volunteers may be required

to submit a financial disclosure form

annually. The same rules that currently

apply to source selection members will

apply to volunteers.

An agreement will be established

between the volunteer, the responsible

director, and the Civilian Personnel

Operations Center (CPOC). 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, is

without compensation, and the

volunteer waives any claims against the

Government based on the voluntary

assignment;

(b) A statement that the volunteer will

be considered a federal employee only

for the purpose of injury compensation;

(c) The 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

organization (travel, administrative

support, office space, and supplies);

(f) A statement of duties;

(g) A statement providing that 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

volunteer;

(h) A provision allowing either party

to void the agreement with 2 working

days written notice;

(i) The level of security access

required by the volunteer (any security

clearance required by the position will

be managed by the employing

organization;

(j) The provision that any

publication(s) resulting from his/her

work will be submitted to the RDE

Center Directors for review and

approval;

(k) A statement that he/she accepts

accountability for loss or damage to

Government property occasioned by

his/her negligence or willful action;

(l) A statement that his/her activities

on the premises will conform to the

regulations and requirements of the

organization;

(m) A statement that he/she will not

release any sensitive or proprietary

information without the written

approval of the employing organization

and further agrees to execute additional

non-disclosure agreements as

appropriate, if required, by the nature of

the anticipated services; and,

(n) A statement that he/she agrees to

disclose any inventions made in the

course of work performed at the RDEC/

SEC. The RDE Center Directors have the

option to obtain title to any such

invention on behalf of the U.S.

Government. Should the RDE Center

Directors elect not to take title, the RDE

Centers/ISEC shall at a minimum retain

a non-exclusive, irrevocable, paid up,

royalty-free license to practice or have

practiced the invention worldwide on

behalf of the U.S. Government.

Exceptions to the provisions in this

procedure may be granted by the RDE

Center Directors on a case by case basis.

E. Internal Placement and Pay Setting

1. Promotions

A promotion is the movement of an

employee to a higher pay band in the

same occupational family or to another

pay band in a different occupational

family, wherein the band in the new

family has a higher maximum salary

than the band from which the employee

is moving. The move from one band to

another must result in an increase in the

employee’s salary to be considered a

promotion. Positions with known

promotion potential to a specific band

within an occupational family will be

identified when they are filled. Not all

positions in an occupational family will

have promotion potential to the same

band. Movement from one occupational

family to another will depend upon

individual knowledge, skills, and

abilities, qualifications and needs of the

organization. Supervisors may consider

promoting employees at any time since

promotions are not tied to the pay for

performance system. 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.

Except as specified below, promotions

will be processed under competitive

procedures in accordance with merit

principles and requirements and the

local merit promotion plan.

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 , the

employee will be treated the same as an

employee with an ‘‘acceptable’’ rating as

long as there is no known adverse

performance information.

The following actions are excepted

from competitive procedures:

(a) Re-promotion to a position which

is in the same pay band or GS

equivalent and 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) A promotion due to the

reclassification of positions based on

accretion (addition) of duties.

(g) A promotion resulting from the

correction of an initial classification

error or the issuance of a new

classification standard.

(h) Consideration of a candidate who

did not receive proper consideration in

a competitive promotion action.

(i) Impact of person in the job and

Factor IV process (application of the

Research Grade Evaluation Guide,

Equipment Development Grade

Evaluation Guide, Part III, or similar

guides) promotions.

2. Supervisory and Team Leader Pay

Adjustments

Supervisory and team leader pay

adjustments may be approved by the

RDE Center Directors and the ISEC

Commander based on the

recommendation of the Personnel

Management Board at the Center level to

compensate employees with supervisory

or team leader responsibilities. Only

employees in supervisory or team leader

positions as defined by the OPM GS

Supervisory Guide or GS Leader Grade

Evaluation Guide may be considered for

the pay adjustment. These pay

adjustments are funded separately from

Performance Pay Pools. These pay

adjustments are increases to the basic

rate of pay, ranging up to 10 percent of

that pay rate for supervisors and up to

32996 Federal Register / Vol. 66, No. 118 / Tuesday, June 19, 2001 / Notices

5 percent of that pay rate for team

leaders. Pay adjustments are subject to

the constraint that the adjustment may

not cause the employee’s basic rate of

pay to exceed the pay band maximum

rate. Criteria to be considered in

determining the pay increase percentage

include: (1) Needs of the organization to

attract, retain, and motivate high quality

supervisors/team leaders; (2) budgetary

constraints; (3) years and quality of

related experience; (4) relevant training;

(5) performance appraisals and

experience as a supervisor/team leader;

(6) organizational level of position; and

(7) impact on the organization. The pay

adjustment will not apply to employees

in Pay Band V of the E&S Occupational

Family.

Conditions, after the date of

conversion into the demonstration

project, under which the application of

a pay adjustment may be considered, are

as follows:

(1) New hires into supervisory/team

leader positions will have their initial

rate of base pay set at the supervisor’s

discretion within the pay range of the

applicable pay band. This rate of pay

may include a pay adjustment

determined by using the ranges and

criteria outlined above.

(2) A career employee selected for a

supervisory/team leader position that is

within the employee’s current pay band

may also be considered for a pay

adjustment. If a supervisor/team leader

is already authorized a pay adjustment

and is subsequently selected for another

supervisor/team leader position, within

the same pay band, then the pay

adjustment will be re-determined.

Supervisors/team leaders, upon initial

conversion into the demonstration

project into the same or substantially

similar position, will be converted at

their existing basic rate of pay and will

not be eligible for a pay adjustment.

The supervisor/team leader pay

adjustment will be reviewed annually,

with possible increases or decreases

based on the appraisal scores for the

performance elements Team/Project

Leadership and Supervision/EEO. The

initial dollar amount of a pay

adjustment will be removed when the

employee voluntarily leaves the

position. The cancellation of the

adjustment under these circumstances is

not an adverse action and is not subject

to appeal. If an employee is removed

from a supervisory/team leader position

for personal cause (performance or

conduct), the adjustment will be

removed under adverse action

procedures. However, if an employee is

removed from a non-probationary

supervisory/team leader position for

conditions other than voluntary or for

personal cause, then the grade and pay

retention provisions of 5 CFR part 536

will prevail where ‘‘pay band level’’ is

substituted for ‘‘grade.’’

3. Supervisory/Team Leader Pay

Differentials

Supervisory and team leader pay

differentials may be used, by RDE

Center Directors and the Commander

ISEC, to provide an incentive and

reward supervisors and team leaders as

defined by the OPM GS Supervisory

Guide and GS Leader Grade Evaluation

Guide. Pay differentials are not funded

from Performance Pay Pools. A pay

differential is a cash incentive that may

range up to 10 percent of base pay for

supervisors and up to 5 percent of base

pay for team leaders. It is paid on a pay

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

not included as part of the base pay.

Criteria to be considered in determining

the amount of the pay differential are

the same as those identified for

Supervisory/Team Leader Pay

Adjustments. The pay differential will

not apply to employees in Pay Band V

of the E&S occupational family.

The pay differential may be

considered, either during conversion

into or after initiation of the

demonstration project, if the supervisor/

team leader has subordinate employees

in the same pay band. The differential

must be terminated if the employee is

removed from a supervisory/team leader

position, regardless of cause.

After initiation of the demonstration

project, all personnel actions involving

a supervisory/team leader differential

will require a statement signed by the

employee acknowledging that the

differential may be terminated or

reduced at the discretion of the RDE

Center Directors or the Commander

ISEC. The termination or reduction of

the differential is not an adverse action

and is not subject to appeal.

4. Pay Administration

Pay administration policies will be

established by the RDE Personnel

Management Board, which conform to

basic governmental pay fixing policy;

however, these policies will be exempt

from Army Regulations or CECOM local

pay fixing policies. Upon initial

appointment, the individual’s pay may

be set anywhere within the band level

consistent with the special

qualifications of the individual and the

unique requirements of the position.

These special qualifications may be in

the form of education, training,

experience, or any combination thereof

that is pertinent to the position in which

the employee is being placed. Guidance

on hiring salaries will be established by

the RDE Personnel Management Board.

CECOM RDE organizations may make

full use of recruitment, retention and

relocation payments as currently

provided for by OPM.

Highest Previous Rate (HPR) will be

considered in placement actions

authorized under rules similar to the

HPR rules in 5 CFR 531.203 (c) and (d).

Use of HPR will be at the supervisor’s

discretion, but if used are subject to

policies established by the RDE

Personnel Management Board. The pay

retention provisions of 5 U.S.C. 5363

and 5 CFR 536.101 will apply to this

plan except where waived or modified

as specified in the waiver section. RDE

Center Directors may also grant pay

retention to employees who meet

general eligibility requirements, but do

not have specific entitlement by law,

provided they are not specifically

excluded.

5. 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 U.S.C. 5307 and 5 CFR Part 530

Subpart B. In addition, each pay band

will have its own pay ceiling, just as

grades do in the current system. Pay

rates for the various pay bands will be

directly keyed to the GS rates, except

the maximum range for Pay Band V of

the Engineer and Scientist occupational

family which cannot exceed ES–4. Basic

pay will be limited to the maximum

rates payable for each pay band, except

for retained rates.

6. Pay Setting for Promotion

The minimum basic pay increase

upon promotion to a higher pay band

will be 6 percent or the minimum rate

of the new pay band, whichever is

greater. The maximum amount of pay

increases will not exceed $10,000, or

other such amount as established by the

RDE Personnel Management Board.

When a temporary promotion is

terminated, the employee’s pay

entitlements will be re-determined

based on the employee’s position of

record, with appropriate adjustments to

reflect pay events during the temporary

promotion, subject to the specific

policies and rules established by the

RDE Personnel Management Board. In

no case may those adjustments increase

the pay for the position of record

beyond the applicable pay range

maximum rate.

Federal Register / Vol. 66, No. 118 / Tuesday, June 19, 2001 / Notices 32997

7. Pay Setting for Demotion or

Placement in a Lower Pay Band

A demotion is a placement into a

lower pay band within the same

occupational family or placement into a

pay band in a different occupational

family with a lower salary. Demotions

may be for cause (performance or

conduct) or for reasons other than cause

(e.g., erosion of duties, reclassification

of duties to a lower pay band,

application under competitive

announcements or at the employee’s

request, or placement actions resulting

from RIF procedures). Employees

demoted for cause are not entitled to

pay retention. Employees demoted for

reasons other than cause may be entitled

to pay retention in accordance with pay

fixing policies.

Employees who receive an

unacceptable rating or who are on a

performance improvement plan at the

time pay determinations are made, do

not receive performance payouts or the

general pay increase. 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 pay increase (5 U.S.C. 5303).

This situation, (a reduction in band

level with no reduction in pay) will not

be considered an adverse performance

based action, nor will band retention

provisions apply.

8. Staffing Supplements

Employees assigned to occupational

series and geographic areas covered by

special rates will be eligible for a

staffing supplement if the maximum

adjusted rate for the banded GS grades

to which assigned is a special rate that

exceeds the maximum GS locality rate

for the banded grades. The staffing

supplement is added to the base pay,

much like locality rates are added to

base pay. The employee’s total pay

immediately after implementation of the

demonstration project will be the same

as immediately before the

demonstration project, but a portion of

the total will be in the form of a staffing

supplement. Adverse action and pay

retention provisions will not apply to

the conversion process, as there will be

no change in total salary. Upon

conversion, the demonstration base rate

will be established by dividing the

employee’s old GS adjusted rate (the

higher of special rate or locality rate) by

the staffing factor. The staffing factor

will be determined by dividing the

maximum special rate for the banded

grades by the GS unadjusted rate

corresponding to that special rate (step

10 of the GS rate for the same grade as

the special rate). The employee’s

demonstration staffing supplement is

derived by multiplying the

demonstration base rate by the staffing

factor minus one. So the employee’s

final demonstration special staffing rate

equals the demonstration base rate plus

the special staffing supplement; this

amount will equal the employee’s

former GS adjusted rate.

Simplified, the formula is this:

Staffing factor = Maximum Special Rate for the banded grades 

GS rate corresponding to that special rate

Demonstration base rate = Old GS adjusted rate (special or locality rate)

Staffing factor

Staffing Supplement = demonstration base rate (staffing factor 1)

Salary upon conversion = demonstration base rate + staffing supplement (sum will equal existing rate)

× −

9. Application of Future Special Salary

Rates

The Office of Personnel Management

(OPM) may approve special salary rates

(SSR) that would apply to a group of

employees already converted to the

demonstration project pay band

structure if those employees remained

in the General Schedule. If such a

special rate is established, the pay of

equivalent demonstration project

employees would be reviewed and may

be adjusted as appropriate to

accommodate the salary increase. An

increase provided under this authority

is not an equivalent increase, as defined

by 5 CFR 531.403.

10. Simplified Assignment Process

Today’s environment of downsizing

and workforce fluctuations mandates

that the organization have maximum

flexibility to assign duties and

responsibilities to individuals. Pay

banding can be used to address this

need, as it enables the organization to

have maximum flexibility to assign an

employee with no change in basic pay,

within broad descriptions, consistent

with the needs of the organization, and

the individual’s qualifications and rank

and 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 position

description. 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 broader latitude in

assignments and further streamlines the

administrative process and system.

11. Details

Under this plan employees may be

detailed to a position in the same band

(requiring a different level of expertise

and qualifications) or lower pay band

(or its equivalent in a different

occupational family) for up to one year.

Details may be implemented through an

official personnel action to cover the

one-year period. Details to a position in

a higher pay band up to 180 days will

be made non-competitively. Beyond 180

days requires competitive procedures.

F. Employee Development

1. Expanded Developmental

Opportunity Program

The Expanded Developmental

Opportunity Program will be available

to all demonstration project employees.

Expanded developmental opportunities

complement existing developmental

opportunities such as long-term

training, rotational job assignments,

32998 Federal Register / Vol. 66, No. 118 / Tuesday, June 19, 2001 / Notices

developmental assignments to AMC/

Army/DoD and self directed study via

correspondence courses and local

colleges and universities. Each

developmental opportunity must result

in a product, service, report or study

that will benefit the RDE or customer

organization as well as increase the

employee’s individual effectiveness.

The developmental opportunity period

will not result in loss of (or reduction)

in basic pay, leave to which the

employee is otherwise entitled, or credit

for service time. The positions of

employees on expanded developmental

opportunities may be back-filled (i.e.,

with temporarily assigned, detailed or

promoted employees or with term

employees). However, that position or

its equivalent must be made available to

the employee upon return from the

expanded developmental opportunity.

The RDE Personnel Management Board

will provide written guidance for

employees on application procedures

and develop a process that will be used

to review and evaluate applicants for

development opportunities.

a. Sabbaticals. RDE Center Directors

will have the authority to grant paid or

unpaid sabbaticals to all career

employees. The purpose of a sabbatical

will be to permit employees to engage

in study or uncompensated work

experience that will benefit the

organization and contribute to the

employee’s development and

effectiveness. Each sabbatical must

result in a product, service, report, or

study that will benefit the CECOM RDE

mission as well as increase the

employee’s individual effectiveness.

Various learning or developmental

experiences may be considered, such as

advanced academic teaching; study;

research; self-directed or guided study;

and on-the-job work experience with

public, private, commercial, or private

non-profit organization.

Paid sabbaticals of up to 12 months in

duration and unpaid sabbaticals of up to

6 months in a calendar year may be

granted to an employee in any 7-year

period. Employees will be eligible to

request a sabbatical after completion of

seven years of Federal service.

Employees approved for a paid

sabbatical must sign a service obligation

agreement to continue in service in the

CECOM RDE for a period of three times

the length of the sabbatical. If an

employee voluntarily leaves the CECOM

RDE organization before the service

obligation is completed he/she is liable

for repayment of expenses associated

with training during the sabbatical such

as, registration fees, tuition and

matriculation fees, library and

laboratory fees, purchase or rental of

books, materials, supplies, travel, per

diem, and miscellaneous other related

training program costs. Expenses do not

include salary costs. The RDE Center

Directors have the authority to waive

this requirement.

Specific procedures will be developed

for processing sabbatical applications

upon implementation of the

demonstration project.

b. Critical Skills Training (Training

for Degrees). Training is an essential

component of an organization that

requires continuous acquisition of

advanced and specialized knowledge.

Degree training is also a critical tool for

recruiting and retaining employees with

or requiring critical skills. Constraints

under current law and regulation limit

degree payment to shortage occupations.

In addition, current government-wide

regulations authorize payment for

degrees based only on recruitment or

retention needs. Degree payment is not

permitted for non-shortage occupations

involving critical skills.

The CECOM RDE organizations are

expanding the authority to provide

degree payment for non-shortage

occupations for purposes of meeting

critical skill requirements, to ensure

continuous acquisition of advanced

specialized knowledge essential to the

organization, and to recruit and retain

personnel critical to the present and

future requirements of the organization.

Degree or certificate payment may not

be authorized where it would result in

a tax liability for the employee without

the employee’s express and written

consent. Any variance from this policy

must be rigorously determined and

documented. Guidelines will be

developed to ensure competitive

approval of degree payment and that

such decisions are fully documented.

Employees approved for degree training

must sign a service obligation agreement

to continue in service in a CECOM RDE

organization for a period of three times

the length of the training period. If an

employee voluntarily leaves the CECOM

RDE organization before the service

obligation is completed he/she is liable

for repayment. The repayment amount

will be based on the additional expenses

or direct costs of the training such as,

registration fees, tuition and

matriculation fees, library and

laboratory fees, purchase or rental of

books, materials, supplies, travel, per

diem, and miscellaneous other related

training program costs. The RDE Center

Directors have the authority to waive

this requirement.

G. Reduction-in-Force (RIF) Procedures

RIF procedures will be used when a

CECOM RDE employee faces separation

or downgrading due to lack of work,

shortage of funds, reorganization,

insufficient personnel ceiling, the

exercise of re-employment or restoration

rights, or furlough for more than 30

calendar days or more than 22

discontinuous days. The procedures in

5 CFR 351 will be followed with slight

modifications pertaining to the

competitive areas, assignment rights, the

calculation of adjusted service

computation date and grade/pay

retention. Modified term appointment

employees are in Tenure Group III for

RIF purposes. RIF procedures are not

required when separating these

employees when their appointments

expire.

1. Competitive Areas

Separate competitive areas for RIF

purposes will be established at each

geographic location. Separate RIF

competitive areas for demo and nondemo employees will be established at

each geographic location. Bumps and

retreats will occur only within the same

competitive area and only to positions

for which the employee meets all

qualification standards including

medical and/or physical qualifications.

Within each competitive area,

competitive levels will be established

based on the occupational family, pay

band and series which are similar

enough in duties and qualifications that

employees can perform the duties and

responsibilities of any other position in

the competitive level upon assignment

to it, without any loss of productivity

beyond what is normally expected.

2. Assignment Rights

An employee may displace another

employee by bump or retreat to one

band below the employee’s existing

band. A preference eligible with a

compensable service-connected

disability of 30 percent or more may

retreat to positions two bands (or

equivalent to five grades) below his/her

current band.

3. Crediting Performance in Reductions

in Force (RIF)

Reductions in force are accomplished

using the existing procedures with the

retention factors of: Tenure, veteran’s

preference and length of service as

adjusted by performance ratings, in that

order. However, the additional RIF

service credit for performance will be

based on the last three total performance

scores during the preceding 4 years and

will be applied as follows:

Total Performance Scores = Years of

Service Credit

48–50 = 10

45–47 = 9

Federal Register / Vol. 66, No. 118 / Tuesday, June 19, 2001 / Notices 32999

42–44 = 8

39–41 = 7

36–38 = 6

33–35 = 5

30–32 = 4

27–29 = 3

24–26 = 2

20–23 = 1

A score of below 20 adds no credit for

RIF retention.

(Note: The additional years of service credit

are added, not averaged. Ratings given under

non-demonstration systems will be converted

to the demonstration-rating scheme and

provided the equivalent rating credit.)

Employees who have been rated

under different patterns of summary

rating levels will receive RIF appraisal

credit based on the following:

If there are any ratings to be credited

for the RIF given under a rating system,

which includes one or more levels

above fully successful (Level 3),

employee will receive:

10 years for Level 5

7 years for Level 4

3 years for Level 3

If an employee comes from a system

with no levels above Fully Successful

(Level 3), they will receive credit based

on the demonstration project’s modal

score for the employee’s competitive

area.

In some cases, an employee may not

have three (3) ratings of record. If an

employee has less than three annual

ratings of record, then for each missing

rating, an average of the scores received

for the past four years will be used.

When the score is calculated to be a

decimal, it should be rounded to the

next higher whole number using the

method described in paragraph III.C.4.

For an employee who has no ratings of

record, all credit will be based on the

repeated use of a single modal rating

from the most recently completed

appraisal period on record.

An employee who has received a

written decision that their performance

is unacceptable has no bump or retreat

rights. 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 the same

additional retention service credit

granted for a level 3 rating or record. An

employee who has received an

acceptable rating following a PIP will

have that rating considered as the

current rating of record.

An employee with a current

unacceptable rating of record has

assignment rights only to a position

held by another employee who has an

unacceptable rating of record.

4. Grade and Pay Retention

Except where waived or modified by

this plan, grade and pay retention will

follow current law and regulations, (e.g.

occupational family pay bands will

substitute for grade).

IV. Implementation Training

Critical to the success of the

demonstration project is the training

developed to ensure understanding of

the broad concepts and finer details

needed to implement and successfully

execute this project. Pay banding, a new

job classification and performance

management system all represent a

significant cultural change to the

organization. Training will be tailored to

fit the requirements of every employee

and will fully address employee

concerns to ensure a comprehensive

understanding of the program. Training

will be required both prior to

implementation and at various times

during the life of the demo.

A training program will begin not

later than 90 days prior to

implementation and will include

modules tailored for employees,

supervisors, senior managers, and

administrative staff. Typical modules

are:

An Overview of the Personnel System

How Employees are converted into and

out of the System

Pay Banding

The Pay for Performance system

Defining Performance Objectives

How to Assign Weights

Assessing Performance—Giving

Feedback

New Position Descriptions

Demonstration Project Administration

and Formal Evaluation

Various types of training are being

considered including, videos, on-line

tutorials, chain teaching and train the

trainer concepts.

V. Conversion

A. Conversion to the Demonstration

Project

Initial entry into the demonstration

project will be accomplished through a

full employee-protection approach that

ensures each employee an initial place

in the appropriate pay band without

loss of pay. Employees serving under

regular term appointments at the time of

the implementation of the

demonstration project will be converted

to the modified term appointment if all

requirements in III.D.4. (Revisions to

Term Appointments) have been

satisfied. Position announcements, etc.,

will not be required for these term

appointments.

Conversion from current GS/GM

grade and pay into the new pay band

system will be accomplished upon

implementation of the demonstration

project. Each employee’s initial total

salary under the demonstration project

will equal the total salary received

immediately before conversion. Special

conversion rules apply to special rate

employees, which are described in

III.E.8. (Staffing Supplements).

Employees who enter the demonstration

project later by lateral reassignment or

transfer will be subject to parallel pay

conversion rules. If conversion into the

demonstration project is accompanied

by a geographic move, the employee’s

GS pay entitlements in the new

geographic area must be determined

before performing the pay conversion.

Employees who are covered by

special salary rates prior to the

demonstration project will no longer be

considered a special rate employee

under the demonstration project. These

employees will, therefore, be eligible for

full locality pay. The adjusted salaries of

these employees will not change.

Rather, the employees will receive a

new basic pay rate computed by

dividing their adjusted basic pay (higher

of special rate or locality rate) by the

locality pay factor for their area. A full

locality adjustment will then be added

to the new basic pay rate. Adverse

action and pay retention provisions will

not apply to the conversion process as

there will be no change in total salary.

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 grade or pay band that

corresponds to the position of record.

When a temporary promotion is

terminated, pay will be determined

based on the position of record, with

appropriate adjustments to reflect pay

events during the temporary promotion,

subject to the specific policies and rules

established by the CECOM RDE. In no

case may those adjustments increase the

pay for the position of record beyond

the applicable pay range maximum rate.

The only exception will be if the

original competitive promotion

announcement stipulated that the

promotion could be made permanent; in

these cases, actions to make the

temporary promotion permanent will be

considered, and if implemented, will be

subject to all existing priority placement

programs.

During the first 12 months following

conversion, employees will receive pay

increases for non-competitive

33000 Federal Register / Vol. 66, No. 118 / Tuesday, June 19, 2001 / Notices

promotion equivalents when the grade

level of the promotion is encompassed

within the same pay band, the

employee’s performance warrants the

promotion and promotions would have

otherwise occurred during that period.

Employees who receive an in-level

promotion at the time of conversion will

not receive a prorated step increase

equivalent as defined below.

Under the current pay structure,

employees progress through their

assigned grade in step increments. Since

this system is being replaced under the

demonstration project, employees will

be awarded that portion of the next

higher step they have completed up

until the effective date of

implementation. As under the current

system, supervisors will be able to

withhold these partial step increases if

the employee’s performance is below an

acceptable level of competence.

Rules governing WGIs under the

current Army performance plan will

continue in effect until the

implementation date. Adjustments to

the employee’s base salary for WGI

equity will be computed effective the

date of implementation to coincide with

the beginning of the first formal PFP

assessment cycle. WGI equity will be

acknowledged by increasing base

salaries by a prorated share based upon

the number of weeks an employee has

completed toward the next higher step.

Payment will equal the value of the

employee’s next WGI times the

proportion of the waiting period

completed (weeks completed in waiting

period/weeks in the waiting period) at

the time of conversion. Employees at

step 10, or receiving retained rates, on

the day of implementation will not be

eligible for WGI equity adjustments

since they are already at or above the

top of the step scale. Employees serving

on retained grade will receive WGI

equity adjustments provided they are

not at step 10 or receiving a retained

rate.

B. Conversion Out of the Demonstration

Project

When a participating organization, or

other substantial group of employees

withdraws from the demonstration

project before the end of the first annual

appraisal cycle for that organization, the

affected employees will normally return

to the same positions (i.e., same grade,

series, duties, responsibilities, and

qualifications) that these employees

encumbered before they were placed

into the demonstration. The beginning

date of the next within-grade increase

(WGI) waiting period will be the

effective date of the organization’s

termination of participation in the

demonstration. When appropriate, these

employees will be provided pay

retention per the conversion procedures

below. For example, before the

demonstration, consider a situation in

which one employee previously held a

GS–15 official position of record, and a

second employee held a GS–14 official

position of record. In the demonstration

both employees were on the same

generic official position description.

After conversion from the

demonstration back to the former

system, the GS–15 employee is returned

to a GS–15 official position of record,

while the second employee is returned

to the same GS–14 official position of

record that the employee held before the

demonstration, even though the GS–14

employee may be receiving retained pay

based on a GS–15 rate determined by

application of the pay administration

provisions of the conversion out

procedure, below. Exceptions to the

above: (1) Employees who have been

permanently assigned to a higher

payband than the payband to which

assigned upon entry into the

demonstration project, will exit the

project under normal conversion rules

(for example, the employee who has

been permanently promoted while in

the project would exit under the normal

conversion out procedures); (2)

employees who enter the project under

an initial appointment to the Federal

government would exit the project

under the normal conversion out rules,

since they had not occupied a General

Schedule position upon which to

return; (3) employees who move into the

demonstration project after the initial

organizational conversion into the

project also would have their pay set in

accordance with the normal conversion

out rules; and (4) cases that present

similar anomalies should be referred to

the demonstration project office for

advice and assistance.

When a participating organization

withdraws from the demonstration

project after the end of the first annual

appraisal cycle for that organization,

management shall apply the normal

conversion rules for determining an

employee’s converted GS grade and pay

rate. The converted GS grade and pay

rate are deemed to be in effect

immediately before the employee leaves

the demonstration project for the

purpose of setting the employee’s pay in

the new GS position. Care must be taken

to ensure that the resulting GS positions

are accurately described and properly

classified.

If a demonstration project employee is

moving to a GS position not under the

demonstration project, or if the project

ends and each project employee must be

converted back to the GS system, the

following procedures will be used to

convert the employee’s project pay band

to a GS-equivalent grade and the

employee’s project rate of pay to the GSequivalent rate of pay. The converted

GS grade and GS rate of pay must be

determined before movement or

conversion out of the demonstration

project and any accompanying

geographic movement, promotion, or

other simultaneous action. For

conversions upon termination of the

project and for lateral reassignments, the

converted GS grade and rate will

become the employee’s actual GS grade

and rates after leaving the

demonstration project (before any other

action). For transfers, promotions, and

other actions, the converted GS grade

and rate will be used in applying any

GS pay administration rules applicable

in connection with the employee’s

movement out of the project (e.g.,

promotion rules, highest previous rate

rules, pay retention rules), as if the GS

converted grade and rate were actually

in effect immediately before the

employee left the demonstration project.

1. Grade-Setting Provisions

An employee in a pay band

corresponding to a single GS grade is

converted to that grade. An employee in

a pay band corresponding to two or

more grades is converted to one of those

grades according to the following rules:

(a) The employee’s adjusted rate of

basic pay under the demonstration

project (including any locality payment)

is compared with step 4 rates in the

highest applicable GS rate range. (For

this purpose, a GS rate range includes

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

the locality rate schedule for the locality

pay area in which the position is

located, or (3) the appropriate special

rate schedule for the employee’s

occupational series, as applicable.) If the

series is a two-grade interval series, 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

rate 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

Federal Register / Vol. 66, No. 118 / Tuesday, June 19, 2001 / Notices 33001

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.

2. 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 or staffing

supplement) is converted to a GSadjusted rate on the highest applicable

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).

(e) E&S Pay Band V Employees: An

employee in Pay Band V of the E&S

Occupational Family will convert out of

the demonstration project at the GS–15

level. Procedures will be developed to

ensure that employees entering Pay

Band V understand that if they leave the

demonstration project and their

adjusted project pay exceeds the GS–15,

Step 10 rate, there is no entitlement to

retained pay. Their GS equivalent rate

will be deemed to be the rate for GS–

15, Step 10. For those Pay Band V

employees paid below the adjusted GS–

15, Step 10 rate, the converted rates will

be set in accordance with paragraph b.

(f) Employees with Pay Retention: If

an employee is receiving a retained rate

under the demonstration project, the

employee’s GS-equivalent grade is the

highest grade encompassed in his or her

band level. OPM will prescribe a

procedure for determining the GSequivalent pay rate for an employee

retaining a rate under the demonstration

project.

3. 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).

4. 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. Servicing CPOCs/

CPACs will continue to process

personnel-related actions and provide

consultative and other appropriate

services.

5. Automation

The CECOM RDE organizations 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.

6. 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 new system is working. The

provisions of this project plan will not

be modified, duplicated in organizations

not listed in the project plan, or

extended to individuals or groups of

employees not included in the project

plan without the approval of the Deputy

Assistant Secretary of Defense (Civilian

Personnel Policy). ODASD(CPP) will

inform DA of requirements for

notification to stakeholders, which may

include Congress, employees, labor

organizations, and the public. The

extent of notification requirements will

depend on the nature and extent of the

requested project modification. As a

minimum, however, major changes and

modifications will be published in the

Federal Register.

VI. Project Duration

Public Law 103–337 removed any

mandatory expiration date for this

demonstration. CECOM, DA and DoD

will ensure this project is evaluated for

the first five years after implementation

in accordance with 5 U.S.C. 4703.

Modifications to the original evaluation

plan or any new evaluation will ensure

the project is evaluated for its

effectiveness, its impact on mission and

any potential adverse impact on any

employee groups. 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 demonstration will

be reexamined for permanent

implementation, modification and

additional testing, or termination of the

entire demonstration project.

VII. Evaluation Plan

A. Overview

Chapter 47 of 5 U.S.C. requires that an

evaluation be performed to measure the

effectiveness of the proposed

demonstration project, and its impact on

improving public management. A

comprehensive evaluation plan for the

entire demonstration program,

originally covering 24 DoD laboratories,

was developed by a joint OPM/DoD

Evaluation Committee in 1995. This

plan was submitted to the Office of

Defense Research & Engineering and

was subsequently approved. The main

purpose of the evaluation is to

33002 Federal Register / Vol. 66, No. 118 / Tuesday, June 19, 2001 / Notices

determine whether the waivers granted

result in a more effective personnel

system and improvements in ultimate

outcomes (i.e. organizational

effectiveness, mission accomplishment,

and customer satisfaction).

B. Evaluation Model

Appendix D shows an intervention

model for the evaluation of the

demonstration project. The model is

designated to evaluate two levels of

organizational performance;

intermediate and ultimate outcomes.

The intermediate outcomes are defined

as the results from specific personnel

system changes and the associated

waivers of law and regulation expected

to improve human resource (HR)

management (i.e. cost, quality,

timeliness). The ultimate outcomes are

determined through improved

organizational performance, mission

accomplishment, and customer

satisfaction. Although it is not possible

to establish a direct causal link between

changes in the HR management system

and organizational effectiveness, it is

hypothesized that the new HR system

will contribute to improved

organizational effectiveness.

Organizational performance measures

established by the organization, will be

used to evaluate the impact of a new HR

system on the ultimate outcomes. The

evaluation of the new HR system for any

given organization will take into

account the influence of three factors on

organizational performance: context,

degree of implementation, and support

of implementation. The context factor

refers to the impact which intervening

variables (i.e., downsizing, changes in

mission, or the economy) can have on

the effectiveness of the program. The

degree of implementation considers: (1)

The extent to which the proposed HR

changes are given a fair trial period; (2)

the extent to which the proposed

changes are implemented; and (3) the

extent to which the proposed changes

conform to the HR interventions as

planned. The support of

implementation factor accounts for the

impact that factors such as training,

internal regulations and automated

support systems have on the support

available for program implementation.

The support for program

implementation factor can also be

affected by the personal characteristics

(e.g. attitudes) of individuals who are

implementing the program.

The degree to which the project is

implemented and operated will be

tracked to ensure that the evaluation

results reflect the project as it was

intended. Data will be collected to

measure changes in both intermediate

and ultimate outcomes, as well as any

unintended outcomes, which may

happen as a result of any organizational

change. In addition, the evaluation will

track the impact of the project and its

interventions on veterans and other EEO

groups, the Merit Systems Principles,

and the Prohibited Personnel Practices.

Additional measures may be added to

the model in the event that changes or

modifications are made to the

demonstration plan.

The intervention model at Appendix

D will be used to measure the

effectiveness of the personnel system

interventions implemented. The

intervention model specifies each

personnel system change or

‘‘intervention’’ that will be measured

and shows: (1) The expected effects of

the intervention, (2) the corresponding

measures, and (3) the data sources for

obtaining the measures. Although the

model makes predictions about the

outcomes of specific intervention,

causal attributions about the full impact

of specific interventions will not always

be possible for several reasons. For

example, many of the initiatives are

expected to interact with each other and

contribute to the same outcomes. In

addition, the impact of changes in the

HR system may be mitigated by context

variables (e.g. the job market,

legislation, and internal support

systems) or support factors (e.g. training,

automation support systems).

C. Evaluation

A modified quasi-experimental design

will be used for the evaluation of the

S&T Personnel Demonstration Program.

Because most of the eligible laboratories

are participating in the program, a Title

5 U.S.C. comparison group will be

compiled from the Civilian Personnel

Data File (CPDF). This comparison

group will consist of workforce data

from Government-wide research

organizations in civilian Federal

agencies with missions and job series

matching those in the DoD laboratories.

This comparison group will be used

primarily in the analysis of pay banding

costs and turnover rates. The original

‘‘China Lake’’ project will serve as a

second comparison group which can be

used as a benchmark representing a

stable pay banding system.

D. Method of Data Collection

Data from several sources will be used

in the evaluation. Information from

existing management information

systems and from personnel office

records will be supplemented with

perceptual survey data from employees

to assess the effectiveness and

perception of the project. The multiple

sources of data collection will provide

a more complete picture as to how the

interventions are working. The

information gathered from one source

will serve to validate information

obtained through another source. In so

doing, the confidence of overall findings

will be strengthened as the different

collection methods substantiate each

other.

Both quantitative and qualitative data

will be used when evaluating outcomes.

The following data will be collected: (1)

Workforce data; (2) personnel office

data; (3) employee attitude surveys; (4)

focus group data; (5) local site historian

logs and implementation information;

(6) customer satisfaction surveys; and

(7) core measures of organizational

performance.

The evaluation effort will consist of

two phases, formative and summative

evaluation, covering at least 5 years to

permit inter- and intra-organizational

estimates of effectiveness. The formative

evaluation phase will include baseline

data collection and analysis,

implementation evaluation, and interim

assessments. The formal reports and

interim assessments will provide

information on the accuracy of project

operation, and current information on

impact of the project on veterans and

EEO groups, Merit System Principles,

and Prohibited Personnel Practices. The

summative evaluation will focus on an

overall assessment of project outcomes

after five years. The final report will

provide information on how well the

HR system changes achieved the desired

goals, which interventions were most

effective, and whether the results can be

generalized to other Federal

installations.

VIII. Demonstration Project Costs

A. Cost Discipline

An objective of the demonstration

project is to ensure in-house budget

discipline. A baseline will be

established at the start of the project and

salary expenditures will be tracked

yearly. Implementation costs, including

project development, automation costs,

and step buy-out costs and evaluation

costs are considered one-time costs and

will not be included in the cost

discipline.

The RDE Personnel Management

Board will track personnel cost changes

and recommend adjustments if required

to achieve the objective of cost

discipline.

B. Developmental Costs

Costs associated with the

development of the personnel

demonstration project include software

Federal Register / Vol. 66, No. 118 / Tuesday, June 19, 2001 / Notices 33003

automation, training, and project

evaluation. All funding will be provided

through the organization’s budget. The

projected annual expenses are

summarized in Table 1. Project

evaluation costs are not expected to

continue beyond the first 5 years unless

the results warrant further evaluation.

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

FY 00 FY01 FY02 FY03 FY04

Training ........................................................................................................................ 150K 250K 50K

Project Evaluation ........................................................................................................ 47K 47K 47K 47K 47K

Automation ................................................................................................................... 400K 400K

Totals .................................................................................................................... 47K 597K 697K 97K 47K

IX. Required Waivers to Law and

Regulation

Public Law 103–398 gave the DoD the

authority to experiment with several

personnel management innovations. In

addition to the authorities granted by

the law, the following are 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.

The following waivers and

adaptations of certain Title 5, U.S.C.,

provisions are required only to the

extent that these statutory provisions

limit or are inconsistent with the actions

contemplated under this demonstration

project. Nothing in this plan is intended

to preclude the demonstration project

from adopting or incorporating any law

or regulation enacted, adopted, or

amended after the effective date of this

demonstration project.

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

Chapter 31, Section 3111: Acceptance

of Volunteer Service—Amended to

allow for a Voluntary Emeritus corps in

addition to student volunteers.

Chapter 31, Section 3132: The Senior

Executive Service: Definitions and

Exclusions

Chapter 33, Subchapter 1, Section

3318(a): Competitive Service, Selection

from Certificate

Chapter 33, Section 3324:

Appointments to Positions Classified

Above GS–15

Chapter 33, Section 3341: Details.

This waiver applies to the extent

necessary to waive the time limits for

details.

Chapter 41, Section 4107(a) and (b) (1)

Restriction on Degree Training

Chapter 43, Section 4302: To the

extent necessary to substitute ‘‘pay

band’’ for ‘‘grade’’

Chapter 43, Section 4303: To the

extent necessary to (1) substitute ‘‘pay

band’’ for ‘‘grade’’ and (2) provide that

moving to a lower pay band as a result

of not receiving the general pay increase

because of poor performance is not an

action covered by the provisions of

section 4303 (a)–(d).

Chapter 43, Section 4304(b)(1) and

(3): Responsibilities of the OPM

Chapter 51, Sections 5101–5111,

Classification

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 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 E&S

Occupational Family to be treated as ST

employees for the purposes of these

provisions.

Chapter 53, Section 5305: Special

Rates

Chapter 53, Sections 5331–5336:

General Schedule Pay Rates:

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

conversions from General Schedule

special rates to demonstration project

pay, as long as total pay is not reduced,

to reductions in pay due solely to the

removal of a supervisory pay adjustment

upon voluntarily leaving a supervisory

position; and to movements to a lower

pay band as a result of not receiving the

General Increase due to a rating of

record of ‘‘Unacceptable’’; (4) provide

that an employee on pay retention

whose rating of record is

‘‘Unacceptable’’ is not entitled 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; and (5) ensure that for

employees of Pay Band V of the E&S

occupational family, pay retention

provisions are modified so that no rate

established under these provisions may

exceed the rate of basic pay for GS–15,

step 10 (i.e., there is no entitlement to

retained rate).

Chapter 55, Section 5542(a)(1)–(2):

Overtime rates; computation. This

waiver applies only to the extent

necessary to provide that the GS–10

minimum special rate (if any) for the

special rate category to which a project

employee belongs is deemed to be the

‘‘applicable special rate’’ in applying the

pay cap provisions in 5 U.S.C. 5542.

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 E&S

occupational family.

Chapter 55, Section 5547 (a)–(b):

Limitation on premium pay. This

waiver applies only to the extent

necessary to provide that the GS–15

maximum special rate (if any) for the

special rate category to which a project

employee belongs is deemed to be the

applicable special rate’’ in applying the

pay cap provisions in 5 U.S.C. 5547.

Chapter 57, Section 5753, 5754, and

5755: Recruitment and relocation,

bonuses, retention allowances and

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 E&S

occupational family to be treated as ST

employees.)

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 COLAs 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 replace

‘‘grade’’ with ‘‘pay band’’.

33004 Federal Register / Vol. 66, No. 118 / Tuesday, June 19, 2001 / Notices

Chapter 75, Section 7512(4): Adverse

actions (This waiver applies only to the

extent necessary to provide that (1)

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

and (2) reductions in pay due to the

removal of a supervisory pay adjustment

upon voluntary movement to a nonsupervisory position.)

B. Waivers to Title 5, Code of Federal

Regulations

Part 300, Sections 300.601 through

605: Time-in-Grade restrictions. Time in

grade restrictions eliminated in the

demonstration project.

Part 308, Sections 308.101 through

308.103: Volunteer service. Amended to

allow for a Voluntary Emeritus Corps in

addition to student volunteers.

Part 315, Section 315.801 and

315.802: Probationary Period—(This

waiver applies only to the extent

necessary to extend probationary

periods from one year to a maximum of

three years for newly-hired permanent

career-conditional employees in the E&S

occupational family.)

Part 315, Section 315.901: Statutory

requirements—(This waiver applies

only to the extent necessary to replace

‘‘grade’’ with ‘‘pay band.’’)

Part 316, Section 316.301: Term

Appointments for more than 4 years.

Part 316, Section 316.303: Converting

Terms to Status

Part 332, subpart D., section 332.404:

Order of Selection from Certificates

Part 335, Section 335.103: Covering

the length of details and temporary

promotions.

Part 337, subpart A, section

337.101(a): Rating Applicants. Waive

when 15 or fewer qualified candidates.

Part 351.402(b): Competitive Area.

Part 351.403: Competitive Level—

(This waiver applies only to the extent

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

band.’’)

Part 351, Section 351.504: As it relates

to years of credit.

Part 351, Section 351.701: Assignment

Involving Displacement—(This waiver

applies to the extent that employee

bump and retreat rights will be limited

to one pay band except in the case of 30

percent preference eligible, and to

include employees with an

unsatisfactory current rating of record.)

Part 410, Section 410.308(a–f):

Training to obtain an academic degree.

Part 410, Section 410.309: Agreements

to Continue in Service—(This waiver

applies to that portion that pertains to

the authority of the head of the agency

to determine continued service

requirements, to waive repayment of

such requirements, and to the extent

that the service obligation is to the

CECOM RDE organizations.)

Part 430, Section 430.203: Rating of

Record—(This waiver applies to the

extent that the definition shall also

include ratings for interns that are based

on less than the whole appraisal period

and improved ratings following an

opportunity to demonstrate acceptable

performance as provided for in the

waiver of 351.504.)

Part 430, Section 430.210: OPM

Responsibilities

Part 432, Section 432.102: (This

waiver applies to the extent that the

term ‘‘grade level’’ is replaced with ‘‘pay

band.’’)

Part 432: Modified to the extent that

an employee may be removed, reduced

in pay band level with a reduction in

pay, reduced in pay without a reduction

in pay band level and reduced in pay

band level without a reduction in pay

based on unacceptable performance.

Also modified to delete reference to

critical element. For employees who are

reduced in pay band level without a

reduction in pay, Sections 432.105 and

432.106(a) do not apply.

Part 432, Sections 432.104:

Addressing unacceptable performance.

References to ‘‘critical elements’’ are

deleted as all elements are critical and

adding that the employee may be

‘‘reduced in pay band level, or pay, or

removed’’ if performance does not

improve to an acceptable level during a

reasonable opportunity period.

Part 432, Section 432.105(a)(2): Waive

‘‘If an employee has performed

acceptably for 1 year’’ to allow for

‘‘within two years from the beginning of

a PIP.’’

Part 511, subpart A: General

Provisions, and subpart B: Coverage of

the General Schedule.

Part 511, Section 511.601:

Classification Appeals modified to the

extent that white collar positions

established under the project plan,

although specifically excluded from

Title 5, are covered by the classification

appeal process outlined in this section,

as amended below.

Part 511, Section 511.603(a): Right to

appeal—substitute band for grade.

Part 511, Section 511.607(b): NonAppealable Issues—add to the list of

issues that are neither appealable nor

reviewable, the assignment of series

under the project plan to appropriate

occupational families

Part 530, Subpart C: Special salary

rates.

Part 531, Subparts B, D, and E:

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

increases.

Part 531, Subpart F: Locality pay—

(This waiver applies only to the extent

necessary to allow (1) demonstration

project employees, except employees in

Band V of the E&S 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 Band V of the E&S

occupational family to be treated as ST

employees for the purposes of these

provisions.)

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

retention provisions do not apply to

conversions from General Schedule

special rates to demonstration project

pay, as long as total pay is not reduced,

and to reductions in pay due solely to

the removal of a supervisory pay

adjustment upon voluntarily leaving a

supervisory position; (3) allow

demonstration project employees to be

treated as General Schedule employees;

(4) provide that pay retention provisions

do not apply to movements to a lower

pay band as a result of not receiving the

general increase due to an annual

performance rating of ‘‘Unacceptable’’;

(5) provide that an employee on pay

retention whose rating of record is

‘‘Unacceptable’’ is not entitled 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; and (6) ensure that for

employees of Pay Band V in the E&S

occupational family, pay retention

provisions are modified so that no rate

established under these provisions may

exceed the rate of basic pay for GS–15,

step 10 (i.e., there is no entitlement to

retained rate.) This waiver applies to ST

employees if they move to a GSequivalent 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 E&S

occupational family.)

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

Recruitment Bonuses, Relocation

Bonuses, Retention Allowances and

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Supervisory Differentials. (This waiver

applies to the extent necessary to allow

(1) employees and positions under the

demonstration project covered by pay

banding to be treated as employees and

positions under the General Schedule

and (2) employees in Pay Band V of the

E&S occupational family to be treated as

ST employees for the purposes of these

provisions.)

Part 591, Subpart B: Cost-of-Living

Allowances and Post Differential—Nonforeign Areas (This waiver applies only

to the extent necessary to allow (1)

demonstration project employees to be

treated as employees under the General

Schedule and (2) employees in Band V

of the E&S occupational family to be

treated as ST employees for the

purposes of these provisions.

Part 752.401 (a)(3): Adverse Actions.

(This waiver applies only to the extent

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

band.’’ and to provide that a reduction

in pay band level is not an adverse

action if it results from the employee’s

rate of basic pay being exceeded by the

minimum rate of basic pay for his/her

pay band.)

Part 752.401(a)(4): Adverse Actions.

(This waiver applies only to the extent

necessary to provide that adverse action

provisions do not apply to (1)

conversions from General Schedule

special rates to demonstration project

pay, as long as total pay is not reduced

and (2) reductions in pay due to the

removal of a supervisory pay adjustment

upon voluntary movement to a nonsupervisory position).

APPENDIX A

[Totals exclude SES, ST, DCIPS and FWS Employees]

Duty location CECOM

Employees

Servicing

CPOC

Fort Huachuca, AZ ......................................................................................................................................................... 22 West Region.

2 NCR.

Melbourne, FL ................................................................................................................................................................ 1 Northeast.

Miami, FL ....................................................................................................................................................................... 1 Northeast.

Valparaiso, FL ................................................................................................................................................................ 1 Northeast.

Fort Benning, GA ........................................................................................................................................................... 1 NCR.

Fort Wayne, IN ............................................................................................................................................................... 1 NCR.

Fort Meade, MD ............................................................................................................................................................. 78 NCR.

3 Northeast.

Fort Meade, MD ............................................................................................................................................................. 100 Northeast.

Fort Monmouth, NJ ........................................................................................................................................................ 1315 Northeast.

Lakehurst, NJ ................................................................................................................................................................. 14 Northeast.

Zimmerman, OH ............................................................................................................................................................. 1 Northeast.

Fort Sill, OK .................................................................................................................................................................... 29 Southwest.

Arlington, VA .................................................................................................................................................................. 1 Northeast.

Fairfax, VA ..................................................................................................................................................................... 1 Northeast.

5 NCR.

Fort AP Hill, VA .............................................................................................................................................................. 1 NCR.

Fort Belvoir, VA .............................................................................................................................................................. 571 NCR.

McLean, VA .................................................................................................................................................................... 2 NCR.

Fort Monroe, VA ............................................................................................................................................................. 1 Northeast.

Total All Employees ................................................................................................................................................ 2052

CPOCs

Northeast: 1340

NCR: 661

Southwest: 29

West: 22

Total: 2052

Appendix B: Occupational Series by

Occupational Family

I. Engineering & Science

0180 Psychologist Series

0801 General Engineering Series

0810 Civil Engineering Series

0830 Mechanical Engineering Series

0850 Electrical Engineering Series

0854 Computer Engineering Series

0855 Electronics Engineering Series

0893 Chemical Engineering Series

0892 Ceramic Engineering Series

0896 Industrial Engineering Series

0899 Engineering and Architecture Student

Trainee Series

1301 General Physical Science Series

1310 Physics Series

1320 Chemistry Series

1515 Operations Research Series

1520 Mathematics Series

1550 Computer Science Series

1599 Mathematics and Statistics Student

Trainee Series

II. Business/Technical

0018 Safety and Occupational Health

Management Series

0028 Environmental Protection Specialist

Series

0301 Miscellaneous Administration and

Program Series

0334 Computer Specialist Series

0340 Program Management Series

0341 Administrative Officer Series

0342 Support Services Administration

Series

0343 Management and Program Analysis

Series

0346 Logistics Management Series

0391 Telecommunications Series

0501 Financial Administration and Program

Series

0510 Accounting Series

0560 Budget Analysis Series

0802 Engineering Technician Series

0818 Engineering Drafting Series

0856 Electronics Technician Series

1001 General Arts and Information Series

1082 Writing and Editing Series

1083 Technical Writing and Editing Series

1084 Visual Information Series

1101 General Business and Industry Series

1102 Contracting Series

1150 Industrial Specialist Series

1152 Production Control Series

1311 Physical Science Technician Series

1410 Librarian Series

1412 Technical Information Services Series

1499 Library and Archives Student Trainee

Series

1521 Mathematics Technician Series

1601 General Facilities and Equipment

Series

1640 Facility Management Series

1670 Equipment Specialist Series

1910 Quality Assurance Series

2001 General Supply Series

2003 Supply Program Management Series

2010 Inventory Management Series

2101 Transportation Specialist Series

2130 Traffic Management Series

2181 Aircraft Operation Series

2200 Information Technology Series

III. General Support

0085 Security Guard Series

0086 Security Clerical and Assistance

Series (Non-CIPMS)

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0302 Messenger Series

0303 Miscellaneous Clerk and Assistant

Series

0305 Mail and File Series

0312 Clerk-Stenographer and Reporter

Series

0318 Secretary Series

0326 Office Automation Clerical and

Assistance Series

0332 Computer Operation Series

0335 Computer Clerk and Assistant Series

0344 Management Clerical and Assistance

Series

0394 Communications Clerical Series

0399 Administration and Office Support

Student Trainee Series

0525 Accounting Technician Series

0561 Budget Clerical and Assistance Series

01087 Editorial Assistance Series

01411 Library Technician Series

2005 Supply Clerical and Technician Series

2102 Transportation Clerk and Assistant

Series

Appendix C: Performance Elements

Each performance element is assigned a

minimum weight. The total weight of all

elements in a performance plan is 100. The

supervisor assigns percentage of the 100 in

accordance with individual duties/

responsibilities objectives and the

organization’s mission and goals. All

employees will be rated against the first four

performance elements listed below. Those

employees whose duties require team leader

responsibilities will be rated on element 5.

All managers/supervisors will be rated

against element 6.

1. Technical Competence: Exhibits and

maintains knowledge, skills and abilities and

initiative to produce quality work as defined

in individual performance objectives.

Assignments are completed in a timely

manner with an appropriate level of

supervision. The quality and quantity of

work meets expectations. Makes prompt,

technically sound decisions and

recommendations that get the desired results.

Where appropriate, seeks and accepts

developmental and/or special assignments.

Minimum Weight: 15%

2. Interpersonal Skills: Provides or

exchanges oral/written ideas and information

in a manner that is timely, accurate and

easily understood. Listens effectively so that

resultant actions show complete

comprehension. Coordinates actions

appropriately so that others are included in,

and informed of, decisions and actions. Is an

effective team player. Accepts personal

responsibility for assigned tasks. Is

considerate of differing viewpoints,

exhibiting willingness to compromise on

areas of difference. Exercises tact and

diplomacy and maintains effective

relationships both within and external to the

organization. Readily gives assistance and

shows appropriate respect and courtesy.

Minimum Weight: 10%

3. Management of Time and Resources:

Meets schedules and deadlines. Arranges

work schedules to effectively balance

difficult and time-consuming high priority

tasks with other lower priority and less time

consuming tasks. Generates and accepts new

ideas and methods for increasing work

efficiency. Effectively utilizes and, where

appropriate, properly controls available

resources.

Minimum Weight: 15%

4. Customer Satisfied: Demonstrates care

for customers through responsive, courteous,

and reliable actions. Promotes relationships

of trust and respect. Maintains solid working

relationship with existing customers and

where appropriate seeks out and develops

new customers. Responds to taskings and

develops practical solutions to satisfy those

needs. Keeps customer informed. Within the

scope of job responsibility seeks out and

develops new programs and/or reimbursable

customer work.

Minimum Weight: 10%

5. Team/Project Leadership: Ensures that

the organization/project strategic plan,

mission, vision and values are communicated

into the team work plans, products and

services. Provides advice on work methods

practices and procedures. Assists members in

identifying viable solutions to work issues.

As appropriate, distributes and balances

workload, checks on work in progress, makes

adjustments as needed. Reports to the

supervisor on team and individual work

accomplishments, problems and training

needs. Resolves simple, informal complaints,

informs supervisor of performance

management issues/problems. (Mandatory for

team leaders optional for others, e.g. project

leaders.)

Minimum Weight: 15%

6. Supervision and EEO: Plans, develops,

communicates and directs the

implementation of strategic and operational

goals and objectives of the organization.

Allocates, and monitors resources and

equitably distributes work to subordinates.

Initiates personnel actions to recruit, select,

promote and/or reassign employees in a

timely manner. Develops subordinates,

through counseling and positive motivational

techniques on job expectations, identification

of training needs, and attainment of career

goals. Recognizes and rewards quality

performance. Takes corrective action to

resolve inadequate performance or behavioral

issues. Applies EEO and Merit Principles.

Creates a positive, safe and challenging work

environment. Ensure appropriate internal

controls to prevent fraud, waste or abuse and

to safeguard assigned property and resources.

(Mandatory for managers/ /supervisors)

Minimum Weight: 25%

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[FR Doc. 01–15387 Filed 6–18–01; 8:45 am]

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