30198 Federal Register / Vol. 75, No. 103 / Friday, May 28, 2010 / Notices 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

Science and Technology Reinvention 

Laboratory Personnel Management 

Demonstration Project, Department of 

Navy (DON), Office of Naval Research 

(ONR) 

AGENCY: Office of the Deputy Under 

Secretary of Defense (Civilian Personnel 

Policy) (DUSD (CPP)), (DoD) 

ACTION: Notice of proposal to adopt a 

demonstration project plan and 

additional flexibilities. 

SUMMARY: The Office of Naval Research 

(ONR) proposes to adopt the Naval 

Research Laboratory (NRL) Personnel 

Management Demonstration Project 

with modifications and one flexibility 

from the U.S. Army Aviation and 

Missile Research, Development and 

Engineering Center (AMRDEC). The 

majority of flexibilities and 

administrative procedures are expected 

to be adopted without changes. 

However, modifications are made when 

necessary to address ONR’s specific 

organizational, workforce, and approval 

needs; technical modifications to 

conform to changes in the law and 

governing Office of Personnel 

Management (OPM) regulations, which 

are not being waived, that were effected 

after the publication of the NRL 

personnel demonstration project plan; 

and changes in response to comments 

received during the 30-day comment 

period. 

DATES: ONR’s adoption proposal may 

not be implemented until a 30-day 

comment period is provided, comments 

addressed, and a final Federal Register 

notice published. To be considered, 

written comments must be submitted on 

or before June 28, 2010. 

ADDRESSES: Send comments on or 

before the comment due date by mail to 

Ms. Betty A. Duffield, CPMS–PSSC, 

Suite B–200, 1400 Key Boulevard, 

Arlington, VA 22209–5144; by fax to 

(703) 696–5462; or by e-mail to 

Betty.Duffield@cpms.osd.mil. 

FOR FURTHER INFORMATION CONTACT: 

Office of Naval Research: Ms. Margaret 

J. Mitchell, Director, Human Resources 

Office, Office of Naval Research, 875 

North Randolph Street, Code 01HR, 

Arlington, VA 22203; 

Margaret.J.Mitchell@navy.mil. 

DoD: Ms. Betty A. Duffield, CPMS– 

PSSC, Suite B–200, 1400 Key 

Boulevard, Arlington, VA 22209–5144. 

SUPPLEMENTARY INFORMATION: Section 

342(b) of the National Defense 

Authorization Act (NDAA) for Fiscal 

Year (FY) 1995, Public Law 103–337, as 

amended (10 U.S.C. 2358 note) by 

section 1109 of NDAA FY 2000, Public 

Law 106–65, and section 1114 of NDAA 

FY 2001, Public Law 106–398, 

authorizes the Secretary of Defense 

(SECDEF) to conduct personnel 

management demonstration projects at 

DoD laboratories designated as Science 

and Technology Reinvention 

Laboratories (STRLs). Section 1107 of 

NDAA FY 2008, Public Law 110–181, as 

amended by section 1109 of NDAA FY 

2009, Public Law 110–417, requires the 

SECDEF to execute a process and plan 

to employ the personnel management 

demonstration project authorities 

granted to the Office of Personnel 

Management under title 5 United States 

Code (U.S.C.) section 4703 at the STRLs 

previously enumerated in 5 U.S.C. 

9902(c)(2), and now redesignated in 

section 1105 of NDAA FY 2010, Public 

Law 111–84, 123 Stat. 2486, and 73 FR 

73248, to enhance the performance of 

the missions of the laboratories. Section 

1107 of Public Law 110–181 further 

authorizes in subsection 1107(c) that 

any flexibility available to any 

demonstration laboratory shall be 

available for use at any other laboratory 

as previously enumerated in title 5 

U.S.C. 9902(c)(2). The Office of Naval 

Research (ONR) is listed as one of the 

previously designated 5 U.S.C. 

9902(c)(2) STRLs. 

1. Background 

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 the 

civilian personnel policy, organization, 

and management. Pursuant to the 

authority provided in section 342(b) of 

Public Law 103–337, as amended, a 

number of DoD STRL personnel 

demonstration projects were approved. 

These projects are ‘‘generally similar in 

nature’’ to the Department of Navy’s 

‘‘China Lake’’ Personnel Demonstration 

Project. The terminology, ‘‘generally 

similar in nature,’’ does not imply an 

emulation of various features, but rather 

implies a similar opportunity and 

authority to develop personnel 

flexibilities that significantly increase 

the decision authority of laboratory 

department heads and/or directors. 

This demonstration project involves: 

(1) Streamlined delegated examining; (2) 

noncitizen hiring; (3) expanded detail 

authority; (4) extended probationary 

period for newly hired employees; (5) 

expanded temporary promotion; (6) 

voluntary emeritus program; (7) 

paybanding; (8) contribution-based 

compensation system; (9) performancebased reduction-in-pay or removal 

actions; and (10) reduction-in-force 

(RIF) procedures. 

2. Overview 

DoD published notice in 73 FR 73248, 

December 2, 2008, that pursuant to 

subsection 1107(c) of Public Law 110– 

181, the three STRLs listed in 73 FR 

73248 not having personnel 

demonstration projects at that time may 

adopt the flexibilities of the other 

laboratories previously listed in 

subsection 9902(c)(2) and now 

redesignated in section 1105 of Public 

Law 111–84. ONR is one of the three 

STRLs specified in this provision. 

Accordingly, ONR intends to build its 

demonstration project using flexibilities 

adopted from existing STRL 

demonstration projects (specifically 

NRL and AMRDEC). Final plans for the 

NRL and AMRDEC personnel 

management demonstration projects 

were published in the Federal Register 

as follows: 

• Department of the Navy: NRL—64 

FR 33970, June 24, 1999. No 

amendments have been published; and 

• Department of the Army: 

AMRDEC—62 FR 34876 and 62 FR 

34906, June 27, 1997; and amendments 

and/or corrections to final plans 

published—64 FR 11074, March 8, 

1999; 64 FR 12216, March 11, 1999; 65 

FR 53142, August 31, 2000; and 67 FR 

5716, February 6, 2002. 

3. Access to Flexibilities of Other STRLs 

Flexibilities published in this Federal 

Register notice shall be available for use 

by the STRLs previously enumerated in 

5 U.S.C. 9902(c)(2), now redesignated in 

section 1105 of Public Law 111–84, if 

they wish to adopt them in accordance 

with DoD Instruction 1400.37; 73 FR 

73248 to 73252; and after the fulfilling 

of any collective bargaining obligations. 

Dated: May 21, 2010. 

Mitchell S. Bryman, 

Alternate OSD Federal Register Liaison 

Officer, Department of Defense. 

Table of Contents 

I. Executive Summary 

II. Introduction 

A. Purpose 

B. Problems with the Current System 

C. Waivers Required 

D. Expected Benefits 

E. Participating Organizations and 

Employees 

F. Project Design 

III. Accessions and Internal Placements 

A. Hiring Authority 

1. Background 

2. Delegated Examining 

B. Legal Authority 

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C. Determining Employee and Applicant 

Qualifications 

D. Noncitizen Hiring 

E. Expanded Detail Authority 

F. Extended Probationary Period 

G. Definitions 

1. Basic Pay 

2. Maintained Pay 

3. Promotion 

4. Reassignment 

5. Change to Lower Pay Band 

6. Pay Adjustment 

7. Detail 

8. Highest Previous Rate 

9. Approving Manager 

H. Pay Setting Determinations Outside the 

CCS 

1. External New Hires 

2. Internal Actions 

a. Promotion. 

b. Pay Adjustment (Voluntary Change to 

Lower Pay) or Change to Lower Pay Band 

(except RIF). 

c. Pay Adjustment (Involuntary Change to 

Lower Pay) or Change to Lower Pay Band 

Due to Adverse or Performance-based 

Action. 

d. Involuntary Change to Lower Pay Band 

or Reassignment to a Career Track with 

a Lower Salary Range, Other than 

Adverse or Performance-based. 

e. RIF Action (including employees who 

are offered and accept a vacancy at a 

lower pay band or in a different career 

track). 

f. Upward Mobility or Other Formal 

Training Program Selection. 

g. Return to Limited or Light Duty from a 

Disability as a Result of Occupational 

Injury to a Position in a Lower Pay Band 

or to a Career Track with Lower Basic 

Pay Potential than Held Prior to the 

Injury. 

h. Restoration to Duty. 

i. Reassignment. 

j. Student Educational Employment 

Program. 

k. Hazard Pay or Pay for Duty Involving 

Physical Hardship. 

I. Priority Placement Program (PPP) 

J. Expanded Temporary Promotion 

K. Voluntary Emeritus Program 

IV. Sustainment 

A. Position Classification 

1. Career Tracks and Pay Bands 

a. Target Pay Band. 

b. Occupational Series and Position 

Titling. 

c. Classification Standards. 

d. Fair Labor Standards Act (FLSA). 

(1) Guidelines for FLSA Determinations. 

(2) Nonsupervisory and Leader Positions. 

(3) Supervisory Positions. 

2. Requirements Document (RD) 

3. Delegation of Classification Authority 

a. Delegated Authority. 

b. Position Classification Accountability. 

B. Integrated Pay Schedule 

1. Annual Pay Action 

2. Overtime Pay 

3. Classification Appeals 

4. Above GS–15 Positions 

5. Distinguished Contributions Allowance 

(DCA) 

a. Eligibility. 

b. Nomination. 

c. Reduction or Termination of a DCA. 

d. Lump-Sum DCA Payments. 

e. DCA Budget Allocation. 

f. Concurrent Monetary Payments. 

C. Contribution-Based Compensation 

System (CCS) 

1. General 

2. CCS Process 

3. Pay Pool Annual Planning 

a. Element Weights and Applicability. 

b. Supplemental Criteria. 

4. Annual CCS Appraisal Process (See 

Figure 7.) 

5. Exceptions 

6. Normal Pay Range (NPR)—Basic Pay 

Versus Contribution 

7. Compensation 

a. General Increases. 

b. Merit Increases. 

c. Locality Increases. 

d. Contribution Awards. 

8. Career Movement Based on CCS 

a. Advancements in Level Which May be 

Approved by the Pay Pool Manager. 

b. Advancements in Level Which Must be 

Approved by the Chief of Naval Research 

(CNR). 

c. Advancement to Level V of the Science 

and Engineering (S&E) Professional 

Career Track. 

9. CCS Grievance Procedures 

V. Separations 

A. Performance-based Reduction-in-Pay or 

Removal Actions 

B. Reduction-in-Force (RIF) Procedures 

1. RIF Authority 

2. RIF Definitions 

a. Competition in RIF. 

b. Competitive Area. 

c. Competitive Level. 

d. Service Computation Date (SCD). 

(1). Federal SCD. 

(2) CCS Process Results. 

(3). Credit from Other Rating Systems. 

(4) RIF Cutoff Date. 

3. Displacement Rights 

a. Displacement Process 

b. Retention Standing 

c. Vacant Positions 

d. Ineligible for Displacement Rights 

e. Change to Lower Level due to an 

Adverse or Performance-based Action 

4. Notice Period 

5. RIF Appeals 

6. Separation Incentives 

7. Severance Pay 

8. Outplacement Assistance 

VI. Demonstration Project Transition 

A.Initial Conversion or Movement to the 

Demonstration Project 

1. Placement into Career Tracks and Pay 

Bands 

2.Conversion of retained grade and pay 

employees 

3. WGI Buy-In 

4. Career Promotion Eligibility 

5. Conversion of Special Salary Rate 

Employees 

6. Conversion of Employees on Temporary 

Promotions 

7. Non-competitive Movement into the 

Demonstration Project 

B. CCS Start-Up 

C. Training 

1. Types of Training 

a. Employees. 

b. Supervisors and Managers. 

c. Support Personnel. 

D. New Hires into the Demonstration 

Project 

E. Conversion or Movement from 

Demonstration Project 

1. Grade Determination. 

2. Pay Setting 

3. Employees in Positions Classified Above 

GS–15 

4. Determining Date of Last Equivalent 

Increase 

C. Personnel Administration 

D. Automation 

E. Experimentation and Revision 

VII. Demonstration Project Duration 

VIII. Demonstration Project Evaluation Plan 

A. Overview 

B. Evaluation Model 

IX. Demonstration Project Costs 

A. Cost Discipline 

B. Implementation Costs 

X. Automation Support 

A. General 

B. Defense Civilian Personnel Data System 

(DCPDS) 

C. Core Document (COREDOC) 

D. RIF Support System (RIFSS) 

E. Contribution-based Compensation 

System Data System 

Appendix A. Summary of Demonstration 

Project Features Adopted by ONR 

Appendix B: Required Waivers to Laws and 

Regulations 

Appendix C: Definitions of Career Tracks and 

Pay Bands 

Appendix D: Table of Occupational Series 

Within Career Tracks 

Appendix E: Classification and CCS Elements 

Appendix F: Computation of the IPS and the 

NPR 

Appendix G: Intervention Model 

I. Executive Summary 

This project adopts with some 

modifications the STRL personnel 

management demonstration project 

designed by NRL and an additional 

flexibility from the AMRDEC personnel 

management demonstration project. The 

modified design of the demonstration 

project described herein was developed 

by ONR with the participation of and 

review by the DON, the DoD, and 

incorporation of the knowledge and 

design of other STRL demonstration 

projects. 

The ONR coordinates, executes, and 

promotes the science and technology 

programs of the United States Navy and 

Marine Corps. ONR’s directorates 

balance a robust science and technology 

portfolio, allocating funds to meet the 

warfighter’s requirements, focusing 

efforts on all three major phases of 

development funding: basic research, 

applied research, and advanced 

technology development. ONR’s six 

science and technology departments 

coordinate and execute research in the 

areas of: 

1. Expeditionary Maneuver Warfare 

and Combating Terrorism 

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2. Command, Control, 

Communications, Intelligence, 

Surveillance, and Reconnaissance 

3. Ocean Battlespace Sensing 

4. Sea Warfare and Weapons 

5. Warfighter Performance 

6. Naval Air Warfare and Weapons 

In order to sustain these unique 

capabilities, ONR must be able to hire, 

retain, and continually motivate 

enthusiastic, innovative, and highlyeducated scientists and engineers, 

supported by accomplished business 

management and administrative 

professionals as well as a skilled 

administrative and technical support 

staff. 

The goal of the project is to enhance 

the quality and professionalism of the 

ONR workforce through improvements 

in the efficiency and effectiveness of the 

human resource system. The project 

flexibilities will strive to achieve the 

best workforce for the ONR mission, 

adjust the workforce for change, and 

improve organizational efficiency. The 

results of the project will be evaluated 

within five years of implementation 

II. Introduction 

A. Purpose 

The purpose of the project is to 

demonstrate that the effectiveness of 

DoD STRLs can be enhanced by 

expanding opportunities available to 

employees and by allowing greater 

managerial control over personnel 

functions through a more responsive 

and flexible personnel system. 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, or extended to individuals 

or groups of employees not included in 

the project plan without the approval of 

the ODUSD(CPP). The provisions of 

DoDI 1400.37, are to be followed for any 

modifications, adoptions, or changes to 

this demonstration project plan. 

B. Problems With the Current System 

The current Civil Service 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 fifteen grades. 

Base pay is set at one of those fifteen 

grades and the ten interim steps within 

each grade. The Classification Act of 

1949 rigidly defines types of work by 

occupational series and grade, with very 

precise qualifications for each job. This 

system does not quickly or easily 

respond to new ways of designing work 

or to 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 ONR must be able 

to recruit and retain scientific, 

engineering, acquisition support and 

other professionals, and skilled 

technicians. ONR 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 limitations 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 and 

emerging technologies. 

C. Waivers Required 

ONR proposes changes in the 

following broad areas to address its 

problems in human resources 

management: Accessions and internal 

placements, sustainment, and 

separations. Appendix B lists the laws, 

rules, and regulations requiring waivers 

to enable ONR to implement the 

proposed systems. All personnel laws, 

rules, and regulations not waived by 

this plan will remain in effect. Basic 

employee rights will be safeguarded and 

Merit System Principles will be 

maintained. 

D. 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 the National Institute 

of Standards and Technology (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 ONR 

workforce will facilitate: 

(1) Sustainment of ONR’s quality 

scientific and business management 

workforces in today’s competitive 

environment; 

(2) Improved employee satisfaction 

with pay setting and adjustment, 

recognition, and career advancement 

opportunities; 

(3) Human Resources (HR) flexibilities 

needed to staff and shape a quality 

workforce of the next 10–20 years; 

(4) Increased retention of high-level 

contributors; and 

(5) Simpler and more cost effective 

HR management processes. 

An evaluation model was developed 

for the Director, Defense, Research and 

Engineering (DDR&E) in conjunction 

with STRL service representatives and 

the OPM. The model will measure the 

effectiveness of this demonstration 

project, as modified in this plan, and 

will be used to measure the results of 

specific personnel system changes. 

E. Participating Organizations and 

Employees 

ONR is comprised of the ONR 

Headquarters in Arlington, Virginia, and 

ONR employees geographically 

dispersed at the locations shown in 

Figure 1. It should be noted that some 

sites currently have fewer than ten 

people and that the sites may change 

should ONR reorganize or realign. 

Successor organizations will continue 

coverage in the demonstration project. 

The demonstration project will cover 

approximately 450 ONR civilian 

employees under title 5, U.S.C. in the 

occupations listed in Appendix D. The 

project plan does not cover members of 

the Senior Executive Service (SES), 

Senior Level (SL), Scientific and 

Professional (ST), expert and consultant 

employees (EH), or Administratively 

Determined (AD) pay plans. However, 

SES, SL, and ST employees, after 

leaving Federal government service, 

may participate in the Voluntary 

Emeritus Program. There are no labor 

unions representing ONR employees. 

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F. Project Design 

In response to the initial authority 

granted by Congress to develop a 

demonstration project, ONR chartered a 

design team to develop the project plan. 

The team was led by a senior ONR 

manager from outside the Human 

Resources Office (HRO) and was 

responsible for developing project 

proposals. The team was composed of 

20 employees of different grade levels 

and in different occupations. There was 

a mix of managers, supervisors, and 

non-supervisors from offices throughout 

ONR. The team had the assistance of HR 

personnel from ONR and from NRL. It 

also received information and advice 

from OPM, the Office of the DUSD 

(CPP), and a number of organizations 

with on-going demonstration projects. 

Information and suggestions were 

solicited from ONR employees and 

managers through interviews, briefings, 

small-group meetings, and a suggestion 

program established specifically for the 

design effort. This plan was submitted 

to DUSD (CPP) in 2001. Work on this 

plan was postponed pending the 

outcome of several Departmental HR 

initiatives addressing new personnel 

systems. 

Following enactment of Public Law 

110–181, ONR undertook an effort to 

review and resubmit the demonstration 

project plan. Upon extensive review and 

discussion with internal and external 

stakeholders, ONR leadership decided 

to adopt existing flexibilities according 

to subsection 1107(c) of Public Law 

110–181, 73 FR 73248, and DoDI 

1400.37. Specifically, ONR proposes to 

adopt the NRL demonstration project 

plus an additional flexibility from the 

AMRDEC demonstration project. 

Appendix A summarizes the 

modifications proposed for each of the 

adopted project flexibilities and 

administrative procedures. 

Modifications to existing flexibilities are 

made when necessary to address ONR’s 

specific organizational, workforce, and 

approval needs and technical 

modifications to conform to changes in 

the law and governing OPM regulations, 

which are not being waived, that were 

effected after the publication of the NRL 

personnel demonstration project plan. 

Further changes to the project plan may 

be made in response to comments 

received during the 30-day comment 

period following publication of this 

notice. 

III. Accessions and Internal Placements 

A. Hiring Authority 

1. Background 

Private industry and academia are the 

principal recruiting sources for 

scientists and engineers at ONR. It is 

extremely difficult to make timely offers 

of employment to hard-to-find scientists 

and engineers. Even when a candidate 

is identified, he or she often finds 

another job opportunity before the 

lengthy recruitment process can be 

completed. 

2. Delegated Examining 

a. Competitive service positions 

within the ONR Demonstration Project 

will be filled through Merit Staffing or 

under Delegated Examining. 

b. 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 with the same 

score. 

B. Legal Authority 

For actions taken under the auspices 

of the ONR Demonstration Project, the 

legal authority, Public Law 103–337, 

will be used. For all other actions, ONR 

will continue to use the nature of action 

codes and legal authority codes 

prescribed by OPM, DoD, or DON. 

C. Determining Employee and Applicant 

Qualifications 

Figure 2 displays the minimum 

General Schedule (GS) qualifications 

requirements for each career path and 

pay band level. Special DON or DoD 

requirements not covered by the OPM 

Qualification Standards Operating 

Manual for GS Positions, such as 


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Defense Acquisition Workforce 

Improvement Act (DAWIA) 

qualification requirements for 

acquisition positions, physical 

performance requirements for sea duty, 

work on board aircraft, etc., must be 

met. 

D. Noncitizen Hiring 

Where Executive Orders or other 

regulations limit hiring noncitizens, 

ONR will have the authority to approve 

the hiring of noncitizens into 

competitive service positions when 

qualified U.S. citizens are not available. 

Under the demonstration project, as 

with the current system, a noncitizen 

may be appointed only if it has been 

determined there are no qualified U.S. 

citizens. In order to make this 

determination, the position will be 

advertised extensively throughout the 

nation using paid advertisements in 

major newspapers or scientific journals, 

etc., as well as the ‘‘normal’’ recruiting 

methods. If a noncitizen is the only 

qualified candidate for the position, the 

candidate may be appointed. The 

selection is subject to approval by the 

Department Head or Director of the 

hiring organization. The demonstration 

project constitutes a delegated 

examining agreement from OPM for the 

purposes of 5 CFR 213.3102(bb). 

E. Expanded Detail Authority 

Under the demonstration project, 

ONR’s approving manager would have 

the authority: 

(1) To effect details up to one year to 

demonstration project positions without 

the current 120-day renewal 

requirement; and 

(2) To effect details to a higher level 

position in the demonstration project up 

to one year within a 24-month period 

without competition. 

Details beyond the one-year require 

the approval of the Chief of Naval 

Research or designee and are not subject 

to the 120-day renewal requirement. 

F. Extended Probationary Period 

All current laws and regulations for 

the current probationary period are 

retained except that nonstatus 

candidates hired under the 

demonstration project in occupations 

where the nature of the work requires 

the manager to have more than one year 

to assess the employee’s job 

performance will serve a three-year 

probationary period. Employees with 

veterans’ preference will maintain their 

rights under current law and regulation. 

G. Definitions 

1. Basic Pay 

The total amount of pay received at 

the rate fixed through CCS adjustment 

for the position held by an employee 

including any merit increase but before 

any deductions and exclusive of 

additional pay of any other kind. 

2. Maintained Pay 

An employee may be entitled to 

maintain his or her rate of basic pay if 

that rate exceeds the maximum rate of 

basic pay for his or her pay band as a 

result of certain personnel actions (as 

described in this plan). An employee’s 

initial maintained pay rate is equal to 

the lesser of (1) the basic pay held by 

the employee at the time an action is 

taken which entitles the employee to 

maintain his or her pay or (2) 150 

percent of the maximum rate of basic 

pay of the pay band to which assigned. 

The employee is entitled to maintained 

pay for 2 years or until the employee’s 

basic pay is equal to or more than the 

employee’s maintained pay, whichever 

occurs first. Exceptions to the 2-year 

limit include employees on grade and 

pay retention ‘‘grandfathered’’ in upon 

initial conversion into the 

demonstration project, former special 

rate employees receiving maintained 

pay as a result of conversion into the 

project, and employees placed through 


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the priority placement programs. 

Employees will receive half of the 

across-the-board GS percentage increase 

in basic pay and the full locality pay 

increase while on maintained pay. Upon 

termination of maintained pay, the 

employee’s basic pay will be adjusted 

according to the CCS appraisal process. 

If the employee’s basic pay exceeds the 

maximum basic pay of his or her pay 

band upon expiration of the 2-year 

period, the employee’s pay will not be 

reduced; the employee will be in the 

overcompensated range of basic pay 

category for CCS pay increase purposes, 

see Figure 9. 

Maintained pay shall cease to apply 

to an employee who: (1) Has a break in 

service of 1 workday or more; or (2) is 

demoted for personal cause or at the 

employee’s request. The employee’s 

maintained rate of pay is basic pay for 

purposes of locality pay (locality pay is 

basic pay for purposes of retirement, life 

insurance, premium pay, severance pay, 

advances in pay, workers’ 

compensation, and lump-sum payments 

for annual leave but not for computing 

promotion increases). Employees 

promoted while on maintained pay may 

have their basic pay (excluding locality 

pay) set up to 20 percent greater than 

the maximum basic pay for their current 

pay band or retain their ‘‘maintained 

pay,’’ whichever is greater. 

3. Promotion 

The movement of an employee to a 

higher pay band within the same career 

track or to a different career track and 

pay band in which the new pay band 

has a higher maximum basic salary rate 

than the pay band from which the 

employee is leaving. 

4. Reassignment 

The movement of an employee from 

one position to another position within 

the same pay band in the same career 

track or to a position in another career 

track and pay band in which the new 

pay band has the same maximum basic 

salary rate as the pay band from which 

the employee is leaving. 

5. Change to Lower Pay Band 

The movement of an employee to a 

lower pay band within the same career 

track or to a different career track and 

pay band in which the new pay band 

has a lower maximum basic salary range 

than the pay band from which the 

employee is leaving. 

6. Pay Adjustment 

Any increase or decrease in an 

employee’s rate of basic pay where there 

is no change in the employee’s position. 

Termination of maintained pay is also a 

pay adjustment. 

7. Detail 

The temporary assignment of an 

employee to a different demonstration 

project position for a specified period 

when the employee is expected to 

return to his or her regular duties at the 

end of the assignment. (An employee 

who is on detail is considered for pay 

and strength purposes to be 

permanently occupying his or her 

regular position.) 

8. Highest Previous Rate 

ONR will establish maximum payable 

rate rules that parallel the rules in 5 CFR 

531.202 and 531.203(c) and (d). 

9. Approving Manager 

Managers at the directorate, division 

head, division superintendent, or 

directorate-level staff offices who have 

budget allocation/execution; position 

management; position classification; 

recruitment; and staffing authorities for 

their organization. 

H. Pay Setting Determinations Outside 

the CCS 

1. External New Hires 

a. This includes reinstatements. Initial 

basic pay for new appointees into the 

demonstration project may be set at any 

point within the basic pay range for the 

career track, occupation, and pay band 

to which appointed that is consistent 

with the special qualifications of the 

individual and the unique requirements 

of the position. These special 

qualifications may be consideration of 

education, training, experience, scarcity 

of qualified applicants, labor market 

considerations, programmatic urgency, 

or any combination thereof which is 

pertinent to the position to which 

appointed. Highest previous rate may be 

used to set the pay of new appointees 

into the demonstration project. (The 

approving manager authorizes the basic 

pay.) 

b. Transfers from within DoD and 

other Federal agencies will have their 

pay set using pay setting policy for 

internal actions based on the type of pay 

action. 

c. A recruitment or relocation bonus 

may be paid using the same provisions 

available for GS employees under 5 

U.S.C. 5753. Employees placed through 

the DoD Priority Placement Program 

(PPP), the DON Reemployment Priority 

List (RPL), or the Federal Interagency 

Career Transition Assistance Plan are 

entitled to the last earned rate if they 

have been separated. 

2. Internal Actions 

These actions cover employees within 

the demonstration project, including 

demonstration project employees who 

apply and are selected for a position 

within the project. 

a. Promotion. 

When an employee is promoted, the 

basic pay after promotion may be up to 

20 percent greater than the employee’s 

current basic pay. However, if the 

minimum rate of the new pay band is 

more than 20 percent greater than the 

employee’s current basic pay, then the 

minimum rate of the new pay band is 

the new basic pay. The employee’s basic 

pay may not exceed the basic pay range 

of the new pay band. Highest previous 

rate may be applied, if appropriate. (The 

approving manager authorizes the basic 

pay.) Note: Most target pay band 

promotions will be accomplished 

through the CCS appraisal and pay 

adjustment process (see section IV.C.8). 

b. Pay Adjustment (Voluntary Change 

to Lower Pay) or Change to Lower Pay 

Band (except RIF). 

When an employee accepts a 

voluntary change to lower pay or lower 

pay band, basic pay may be set at any 

point within the pay band to which 

appointed, except that the new basic 

pay will not exceed the employee’s 

current basic pay or the maximum basic 

pay of the pay band to which assigned, 

whichever is lower. Highest previous 

rate may be applied, if appropriate. (The 

approving manager authorizes the basic 

pay.) 

(1) Examples of Voluntary Change to 

a Lower Pay Band. An employee in an 

Administrative Specialist and 

Professional Career Track, Pay Band III, 

position may decide he or she would 

prefer a Pay Band II position in the 

Administrative Support Career Track 

because it offers a different work 

schedule or duty station. An employee 

in Level IV of the Administrative 

Specialist and Professional Career Track 

who has a family member with a serious 

medical problem and wants to be 

relieved of supervisory responsibilities 

may request a change to Pay Band III. 

(2) Example of Pay Adjustment 

(Voluntary Change to Lower Pay) or 

change to a Lower Pay Band. An 

employee may accept a change to lower 

pay or to a lower pay band through a 

settlement agreement. A Research 

Physicist, who is in Level III and is 

being paid near the top of Level III, is 

rated unacceptable in the critical 

element Research and Development 

(R&D) Business Management. In 

settlement of a proposal to remove this 

employee for unacceptable performance, 

an agreement is reached which reduces 

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the employee’s pay to a rate near the 

beginning of Level III. 

c. Pay Adjustment (Involuntary 

Change to Lower Pay) or Change to 

Lower Pay Band Due to Adverse or 

Performance-based Action. 

When an employee is changed to a 

lower pay band, or receives a change to 

lower pay due to an adverse or 

performance-based action, the 

employee’s basic pay will be reduced by 

at least 6 percent, but will be set at a rate 

within the rate range for the pay band 

to which assigned. (The approving 

manager authorizes the basic pay.) Such 

employees will be afforded appeal rights 

as provided by 5 U.S.C. 4303 or 7512, 

as appropriate. 

d. Involuntary Change to Lower Pay 

Band or Reassignment to a Career Track 

with a Lower Salary Range, Other than 

Adverse or Performance-based. 

If the change is not a result of an 

adverse or performance-based action, 

the basic pay will be preserved to the 

extent possible within the basic pay 

range of the new pay band. If the pay 

cannot be set within the rate range of 

the new pay band, it will be set at the 

maximum rate of the new pay band and 

the employee’s pay will be reduced. If 

the change is a result of a position 

reclassification resulting in the 

employee being assigned to a lower pay 

band or reassigned to a different career 

track with a lower maximum basic 

salary range, the employee is entitled to 

maintained pay if the employee’s 

current salary exceeds the maximum 

rate for the new band. 

e. RIF Action (including employees 

who are offered and accept a vacancy at 

a lower pay band or in a different career 

track). 

The employee is entitled to 

maintained pay, if the employee’s 

current salary exceeds the maximum 

rate for the new band. 

f. Upward Mobility or Other Formal 

Training Program Selection. 

The employee is entitled to 

maintained pay, if the employee’s 

current salary exceeds the maximum 

rate for the new band. 

g. Return to Limited or Light Duty 

from a Disability as a Result of 

Occupational Injury to a Position in a 

Lower Pay Band or to a Career Track 

with Lower Basic Pay Potential than 

Held Prior to the Injury. 

The employee is entitled indefinitely 

to the basic pay held prior to the injury 

and will receive full general and locality 

pay increases. If upon reemployment, an 

employee was not given the higher basic 

pay (basic pay received at the time of 

the injury), any retirement annuity or 

severance pay computation would be 

based on his or her lower basic pay 

(salary based on placement in a lower 

pay band). Even though the Department 

of Labor (DOL) would make up the 

difference between the lower basic pay 

and the higher basic pay earned at the 

time of injury, the DOL portion is not 

considered in the retirement or 

severance pay computation. 

h. Restoration to Duty. 

Employees returning from the 

uniformed services following an 

absence of more than 30 days must be 

restored as soon as possible after making 

application, but not later than 30 days 

after receipt of application. If the 

employee’s uniformed service was for 

less than 91 days the employee will be 

placed in the position that he or she 

would have attained if continuously 

employed. If not qualified for this 

position, employee will be placed in the 

position he or she left. For service of 91 

days or more, the employee may also be 

placed in a position of like seniority, 

status, and pay. In the case of an 

employee with a disability incurred in 

or aggravated during uniformed service, 

and after reasonable efforts to 

accommodate the disability is entitled 

to be placed in another position for 

which qualified that will provide the 

employee with the same seniority, 

status, and pay, or the nearest 

approximation. 

i. Reassignment. 

The basic pay normally remains the 

same. Highest previous rate may be 

applied, if appropriate. (The approving 

manager authorizes the basic pay). 

j. Student Educational Employment 

Program. 

The Student Educational Employment 

Program consists of two components: 

The Student Temporary Employment 

Program and the Student Career 

Experience Program. Initial basic pay for 

students in either of these programs may 

be set at any point within the basic pay 

range for the career track, occupation, 

and pay band to which appointed. Basic 

pay may be increased upon return to 

duty (RTD) or conversion to temporary 

appointment, in consideration of the 

student’s additional education and 

experience at the time of the action. 

Students who work under a parallel 

work study program may have their 

basic pay increased in consideration of 

additional education and/or experience. 

Basic pay for students may be increased 

based on their CCS appraisal. (The 

approving manager authorizes the basic 

pay). 

k. Hazard Pay or Pay for Duty 

Involving Physical Hardship. 

Employees under the demonstration 

project will be paid hazardous duty pay 

under the provisions of 5 CFR part 550, 

subpart I. 

I. Priority Placement Program (PPP) 

Current PPP procedures apply to new 

hires and internal actions. 

J. Expanded Temporary Promotion 

Current regulations require that 

temporary promotions for more than 

120 days to a higher level position than 

previously held must be made 

competitively. Under the demonstration 

project, ONR would be able to effect 

temporary promotions of not more than 

one year within a 24-month period 

without competition to positions within 

the demonstration project. 

K. Voluntary Emeritus Program 

The ONR Voluntary Emeritus Program 

is similar to the Voluntary Emeritus 

Program presented in the AMRDEC 

demonstration project FRN, section 

III.D.5., page 34890. Under the ONR 

program, the CNR will have the 

authority to offer retired or separated 

individuals voluntary assignments at 

ONR. This authority will include 

individuals who have retired or 

separated from Federal service. 

Voluntary Emeritus Program 

assignments are not considered 

‘‘employment’’ by the Federal 

government (except for 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 Program will ensure continued 

quality research while reducing the 

overall salary line by allowing higher 

paid individuals to accept retirement 

incentives with the opportunity to 

retain a presence in the scientific 

community. The program will be of 

most benefit during manpower 

reductions as senior employees could 

accept retirement and return to provide 

valuable on-the-job training or 

mentoring to less experienced 

employees. Voluntary service will not 

be used to replace any employee or 

interfere with career opportunities of 

employees. 

To be accepted into the emeritus 

program, a volunteer must be 

recommended by ONR managers to the 

CNR or designee. Everyone who applies 

is not entitled to a voluntary 

assignment. The approving official must 

clearly document the decision process 

for each applicant (whether accepted or 

rejected) and retain the documentation 

throughout the assignment. 

Documentation of rejections will be 

maintained for two years. 

To ensure success and encourage 

participation, the volunteer’s Federal 

retirement pay (whether military or 

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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. 

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 same 

rules that currently apply to source 

selection members will apply to 

volunteers. 

An agreement will be established 

between the volunteer, the CNR or 

designee, and the HRO Director. The 

agreement will be reviewed by the local 

Legal Office for ethics determinations 

under the Joint Ethics Regulation. The 

agreement must be finalized before the 

assumption of duties and shall include: 

(1) A statement that the voluntary 

assignment does not constitute an 

appointment in the civil service, is 

without compensation, and any and all 

claims against the Government (because 

of the voluntary assignment) are waived 

by the volunteer; 

(2) a statement that the volunteer will 

be considered a Federal employee for 

the purpose of injury compensation; 

(3) volunteer’s work schedule; 

(4) length of agreement (defined by 

length of project or time defined by 

weeks, months, or years); 

(5) support provided by the ONR 

(travel, administrative, office space, 

supplies); 

(6) a one-page Statement of Duties and 

Experience; 

(7) a provision that states no 

additional time will be added to a 

volunteer’s service credit for such 

purposes as retirement, severance pay, 

and leave as a result of being a member 

of the Voluntary Emeritus Program; 

(8) a provision allowing either party 

to void the agreement with 10 working 

days written notice; and 

(9) the level of security access 

required (any security clearance 

required by the assignment will be 

managed by the ONR while the 

volunteer is a member of the Voluntary 

Emeritus Program). 

IV. Sustainment 

A. Position Classification 

The position classification changes 

are intended to streamline and simplify 

the process of identifying and 

categorizing the work done at ONR. 

ONR will establish an Integrated Pay 

Schedule (IPS) for all demonstration 

project positions in covered 

occupations. The IPS will replace the 

current GS and extend the pay schedule 

equivalent to the basic pay range of the 

Government’s Senior Level Pay System 

to accommodate positions classified 

above the GS–15 level under a proposed 

new STRL demonstration project 

initiative being developed by DoD. 

1. Career Tracks and Pay Bands 

Within the IPS, occupations with 

similar characteristics will be grouped 

together into four career tracks. Each 

career track consists of a number of pay 

bands, representing the phases of career 

progression that are typical for the 

respective career track. The pay bands 

within each career track are shown in 

Figure 3, along with their GS 

equivalents. The equivalents are based 

on the levels of responsibility as defined 

in 5 U.S.C. 5104 and not on current 

basic pay schedules. Appendix C 

provides definitions for each of the 

career tracks and the pay bands within 

them. The career tracks and pay bands 

were developed based upon 

administrative, organizational, and 

position management considerations at 

ONR. They are designed to enhance pay 

equity and enable a more seamless 

career progression to the target pay band 

for an individual position or category of 

positions. This combination of career 

tracks and pay bands allows for 

competitive recruitment of quality 

candidates at differing rates of 

compensation within the appropriate 

career track, occupation, and pay band. 

It will also facilitate movement and 

placement based upon contribution, in 

conjunction with the CCS described in 

paragraph IV.C. Other benefits of this 

arrangement include a dual career track 

for S&E employees and greater 

competitiveness with academia and 

private industry for recruitment. 

Appendix D identifies the occupational 

series currently within each of the three 

career tracks. 

a. Target Pay Band. 

Each position will have a designated 

target pay band under the 

demonstration project. This target pay 

band will be identified as the pay band 

to which an incumbent may be 

advanced without further competition 

within a career track. These target pay 

bands will be based upon present full 

performance levels. Target pay bands 

may vary based upon occupation or 

career track. Employees’ basic pay will 

be capped at the target pay band until 

other appropriate conditions (e.g., 

competition, position management 

approval, increase in or acquisition of 

higher level duties, and approval of an 

accretion of duties promotion) have 

been met, and the employee has been 

promoted into the next higher level. 

b. Occupational Series and Position 

Titling. 

Presently, ONR positions are 

identified by occupational groups and 

series of classes in accordance with 

OPM position classification standards. 

Under the demonstration project, ONR 

will continue to use occupational series 

designators consistent with those 

currently authorized by OPM to identify 

positions. This will facilitate related 

personnel management requirements, 

such as movement into and out of the 


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demonstration project. Other 

occupational series may be added or 

deleted as needed to support the 

demonstration project. Interdisciplinary 

positions will be accommodated within 

the system based upon the 

qualifications of the individual hired. 

Titling practices consistent with those 

established by OPM classification 

standards will be used to determine the 

official title. Such practice will facilitate 

other personnel management 

requirements, such as the following: 

Movement into and out of the 

demonstration project, reduction in 

force, external reporting requirements, 

and recruitment. CCS pay band 

descriptors and Requirements 

Document (RD) (see paragraph IV.A.2) 

information will be used for specific 

career track, pay band, and titling 

determinations. 

c. Classification Standards. 

Under the proposed demonstration 

project, the number of classification 

standards would be reduced to three 

(see Figure 3). Each standard would 

align with one of the three career tracks 

and would cover all positions within 

that career track. Each career track has 

two or three elements that are 

considered in both classifying a position 

and in judging an individual’s 

contributions for pay setting purposes. 

Each element has generic descriptors for 

every pay band. These descriptors 

explain the type of work, degree of 

responsibility, and scope of 

contributions that need to be ultimately 

accomplished to reach the highest basic 

pay potential within each pay band. 

(See Appendix E.) To classify a position, 

a manager would select the pay band 

which is most indicative overall of the 

type of duties to be performed and the 

contributions needed. For example: A 

supervisor needs a secretarial position 

for a branch. In reading the elements 

and descriptors for the Administrative 

Support Career Track, the supervisor 

determines that the Level II descriptors 

illustrate the type of work and 

contributions needed. Therefore, the 

position would be classified as a 

Secretary, Level II. 

d. Fair Labor Standards Act (FLSA). 

Demonstration project positions will 

be covered under the FLSA and 5 CFR 

part 551. Determination of their status 

(exempt or nonexempt) will be made 

based on the criteria contained in 5 CFR 

part 551. The status of each new 

position under the demonstration 

project will be determined using 

computer assisted analysis as part of an 

automated process for preparing the RD. 

Those positions for which the computer 

is unable to make the final FLSA 

determination will be ‘‘flagged’’ for 

referral to a human resources specialist 

for determination. 

(1) Guidelines for FLSA 

Determinations. 

i. Supervisory Information: Provided 

through an automated system in a 

checklist format; results of this checklist 

have an impact on FLSA determination. 

ii. FLSA Information: Provided 

through an automated system in a 

checklist format; results of this checklist 

in conjunction with the supervisory 

information provide a basis for the 

FLSA determination. 

iii. If required, the section entitled 

‘‘Purpose of Position’’ will be used to 

assist in FLSA determination. 

iv. RD’s requiring additional review 

before being finalized will be forwarded 

to a human resources specialist to 

review the FLSA determination. 

(2) Nonsupervisory and Leader 

Positions. 

Figure 4 shows the exempt or 

nonexempt status applicable to 

nonsupervisory and leader positions in 

the indicated career track and pay band. 

In those cases where ‘‘Review’’ is 

indicated, the FLSA status must be 

determined based on the specific duties 

and responsibilities of the subject 

position. 

(3) Supervisory Positions. 

FLSA determination for supervisory 

positions must be made based on the 

duties and responsibilities of the 

particular position involved. As a rule, 

if a position requires supervision of 

employees who are exempt under FLSA, 

the supervisory position is likely to be 

exempt also. 

2. Requirements Document (RD) 

An RD will replace the Optional Form 

8 and position description used under 

the current classification system. The 

RD will be prepared by managers using 

a menu-driven, automated system. The 

automated system will enable managers 

to classify and establish many positions 

without intervention by a human 

resources specialist. The abbreviated RD 

will combine the position information, 

staffing requirements, and contribution 

expectations into a 1- or 2-page 

document. 

3. Delegation of Classification Authority 

Classification authority will be 

delegated to managers as a means of 

increasing managerial effectiveness and 

expediting the classification function. 

This will be accomplished as follows: 

a. Delegated Authority. 

i. The CNR will delegate classification 

authority to the Human Resources 

Office (HRO) Director. The HRO 

Director may further delegate authority 

to Department Heads and Directors of 


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the immediate organization of the 

position being classified. 

ii. The classification approval must be 

at least one level above the first-level 

supervisor of the position. 

iii. First-line supervisors at any level 

will provide classification 

recommendations. 

iv. HRO support will be available for 

guidance and recommendations 

concerning the classification process. 

(Any dispute over the proper 

classification between a manager and 

the HRO will be resolved by the CNR or 

designee. 

b. Position Classification 

Accountability. 

Those to whom authority is delegated 

are accountable to the CNR. The CNR is 

accountable to the DON. Those with 

delegated authority are expected to 

comply with demonstration project 

guidelines on classification and position 

management, observe the principle of 

equal pay for equal work, and ensure 

that RD’s are current. First-line 

supervisors will develop positions using 

the automated system. All positions 

must be approved through the proper 

chain of command. 

B. Integrated Pay Schedule 

Under the demonstration project, an 

IPS will be established which will cover 

all demonstration project positions at 

ONR. This IPS, which does not include 

locality pay, will initially extend from 

the basic pay for GS–1, step 1 to the 

basic pay for GS–15, step 10. The 

adjusted basic pay cap, which does 

include locality pay, is Executive Level 

IV, currently $155,500. The salary range 

for the S&E pay band V pay band is 

expected to be established under the 

new STRL demonstration project 

initiative being developed for positions 

classified above GS–15. 

1. Annual Pay Action 

ONR will eliminate separate pay 

actions for within-grade increases, 

general and locality pay increases, 

performance awards, quality step 

increases, and most career promotions 

and replace them with a single annual 

pay action (including either permanent 

or bonus pay or both) linked to the CCS. 

This will eliminate the paperwork and 

processing associated with multiple pay 

actions which average three per 

employee per year. 

2. Overtime Pay 

Overtime will be paid in accordance 

with 5 CFR part 550, subpart A. All 

nonexempt employees will be paid 

overtime based upon their ‘‘hourly 

regular rate of pay,’’ as defined in 

existing regulation (5 CFR part 551). 

3. Classification Appeals 

An employee may appeal the 

occupational series, title, career track, or 

pay band of his or 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 an employee is 

not satisfied with the supervisory 

response, he or she may then appeal to 

the DoD appellate level. If an employee 

is not satisfied with the DoD response, 

he or she may then appeal to the OPM 

only after DoD has rendered a decision 

under the provisions of this 

demonstration project. Since OPM does 

not accept classification appeals on 

positions which exceed the equivalent 

of a GS–15 level, appeal decisions 

involving Pay Band V for science and 

engineering positions classified about 

the GS–15 level will be rendered by 

DoD and will be final. Appellate 

decisions from OPM are final and 

binding on all administrative, certifying, 

payroll, disbursing, and accounting 

officials of the Government. Time 

periods for case processing under 5 CFR 

subpart F, sections 511.603, 511.604, 

and 511.605 apply. 

An employee may not appeal the 

accuracy of the RD, the demonstration 

project classification criteria, or the paysetting criteria; the propriety of a basic 

pay schedule; the assignment of 

occupational series to the occupational 

family; or matters grievable under an 

administrative or negotiated grievance 

procedure, or an alternative dispute 

resolution procedure. 

The evaluation of classification 

appeals under this demonstration 

project is based upon the demonstration 

project classification criteria. Case files 

will be forwarded for adjudication 

through the HRO and will include 

copies of appropriate demonstration 

project criteria. 

4. Above GS–15 Positions 

The pay banding plan for the 

Scientific and Engineering occupational 

family includes a pay band V to provide 

the ability to accommodate positions 

with duties and responsibilities that 

exceed the General Schedule GS–15 

classification criteria. This pay band is 

based on the Above GS–15 Position 

concept found in other STRL personnel 

management demonstration projects 

that was created to solve a critical 

classification problem. The STRLs have 

positions warranting classification 

above GS–15 because of their technical 

expertise requirements including 

inherent supervisory and managerial 

responsibilities. However, these 

positions are not considered to be 

appropriately classified as Scientific 

and Professional Positions (STs) because 

of the degree of supervision and level of 

managerial responsibilities. Neither are 

these positions appropriately classified 

as Senior Executive Service (SES) 

positions because of their requirement 

for advanced specialized scientific or 

engineering expertise and because the 

positions are not at the level of general 

managerial authority and impact 

required for an SES position. 

The original Above GS–15 Position 

concept was to be tested for a five-year 

period. The number of trial positions 

was set at 40 with periodic reviews to 

determine appropriate position 

requirements. The Above GS–15 

Position concept is currently being 

evaluated by DoD management for its 

effectiveness; continued applicability to 

the current STRL scientific, engineering, 

and technology workforce needs; and 

appropriate allocation of billets based 

on mission requirements. The degree to 

which ONR plans to participate in this 

concept and develop classification, 

compensation, and performance 

management policy, guidance, and 

implementation processes will be based 

on the final outcome of the DoD 

evaluation. 

5. Distinguished Contributions 

Allowance (DCA) 

The DCA is a temporary monetary 

allowance up to 25 percent of basic pay 

(which, when added to an employee’s 

rate of basic pay, may not exceed the 

rate of basic pay for Executive Level IV) 

paid on either a bi-weekly basis 

(concurrent with normal pay days) or as 

a lump sum following completion of a 

designated contribution period(s), or 

combination of these, at the discretion 

of ONR. It is not basic pay for any 

purpose, i.e., retirement, life insurance, 

severance pay, promotion, or any other 

payment or benefit calculated as a 

percentage of basic pay. The DCA will 

be available to certain employees at the 

top of their target pay bands, whose 

present contributions are worthy of 

scores found at a higher pay band, 

whose level of contribution is expected 

to continue at the higher pay band for 

at least 1 year, and current market 

conditions require additional 

compensation. 

Assignment of the DCA rather than a 

change to a higher pay band will 

generally be appropriate for such 

employees under the following 

circumstances: Employees have reached 

the top of their target pay bands and (1) 

when it is not certain that the higher 

level contributions will continue 

indefinitely (e.g., a special project 

expected to be of one- up to five-year 

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duration); (2) when no further 

promotion or compensation 

opportunities are available; (3) in either 

situation (1) or (2), current market 

conditions compensate similar 

contributions at a greater rate in like 

positions in private industry and 

academia; and (4) there is a history of 

significant recruitment and retention 

difficulties associated with such 

positions. 

a. Eligibility. 

(1) Employees in Levels III and IV of 

the S&E Professional Career Track and 

those in Levels III, IV, and V of the 

Administrative Specialist and 

Professional Career Track are eligible for 

the DCA if they have reached the top 

CCS score for their target pay band with 

recommendations for a higher Overall 

Contribution Score (OCS) for their 

contributions; they have reached the 

maximum rate of basic pay available for 

their target pay band; there are 

externally imposed limits to higher pay 

bands or the higher level contributions 

are not expected to last indefinitely; and 

market conditions require greater 

compensation for these contributions. 

(2) Employees may receive a DCA for 

up to three years. The DCA 

authorization will be reviewed and 

reauthorized as necessary, but at least 

annually at the time of the CCS 

appraisal through nomination by the 

pay pool manager and approval by the 

CNR. Employees in the S&E Professional 

Career Track may receive an extension 

of up to two additional years (for a total 

of five years). The DCA extension 

authorization will be reviewed and 

reauthorized as necessary, but at least 

on an annual basis at the time of the 

CCS appraisal through nomination by 

the pay pool manager and approval by 

the CNR. 

(3) Monetary payment may be up to 

25 percent of basic pay. 

(4) Nominees would be required to 

sign a memorandum of understanding 

or a statement indicating they 

understand that the DCA is a temporary 

allowance; it is not a part of basic pay 

for any purpose; it would be subject to 

review at any time, but at least on an 

annual basis; and the reduction or 

termination of the DCA is not 

appealable or grievable. 

b. Nomination. 

In connection with the annual CCS 

appraisal process, pay pool managers 

may nominate eligible employees who 

meet the criteria for the DCA. Packages 

containing the recommended amount 

and method of payment of the DCA and 

a justification for the allowance will be 

forwarded through the supervisory 

chain to the CNR. Details regarding this 

process will be addressed in standard 

operating procedures. These details will 

include time frames for nomination and 

consideration, payout scheme, 

justification content and format, budget 

authority, guidelines for selecting 

employees for the allowance and for 

determining the appropriate amount, 

and documentation required by the 

employee acknowledging he or she 

understands the criteria and temporary 

nature of the DCA. 

c. Reduction or Termination of a DCA. 

(1) A DCA may be reduced or 

terminated at any time the ONR deems 

appropriate (e.g., when the special 

project upon which the DCA was based 

ends; if performance or contributions 

decrease significantly; or if labor market 

conditions change, etc.). The reduction 

or termination of a DCA is not 

appealable or grievable. 

(2) If an employee voluntarily 

separates from ONR before the 

expiration of the DCA, an employee may 

be denied DCA payment. Authority to 

establish conditions and/or penalties 

will be spelled out in the written 

authorization of an individual’s DCA. 

d. Lump-Sum DCA Payments. 

(1) When ONR chooses to pay part or 

all of an employee’s DCA as a lump sum 

payable at the end of a designated 

period, the employee will accrue 

entitlement to a growing lump-sum 

balance each pay period. The percentage 

rate established for the lump-sum DCA 

will be multiplied by the employee’s 

biweekly amount of basic pay to 

determine the lump sum accrual for any 

pay period. This lump-sum percentage 

rate is included in applying the 25 

percent limitation. 

(2) If an employee covered under a 

lump-sum DCA authorization separates, 

or the DCA is terminated (see paragraph 

c), before the end of that designated 

period, the employee may be entitled to 

payment of the accrued and unpaid 

balance under the conditions 

established by ONR. ONR may establish 

conditions governing lump-sum 

payments (including penalties in cases 

such as voluntary separation or 

separation for personal cause) in general 

plan policies or in the individual 

employee’s DCA authorization. 

e. DCA Budget Allocation. 

The CNR may establish a total DCA 

budget allocation that is never greater 

than 10 percent of the basic salaries of 

the employees currently at the cap in 

the S&E Professional Career Track, Pay 

Bands III and IV, and the Administrative 

Specialist and Professional Career 

Track, Pay Bands III, IV, and V. 

f. Concurrent Monetary Payments. 

Employees eligible for a DCA may be 

authorized to receive a DCA and a 

retention allowance at the same time, up 

to a combined total of 25 percent of 

basic pay. A merit increase which raises 

an employee’s pay to the top rate for his 

or her target pay band (thus making the 

employee eligible for the DCA) may be 

granted concurrent with the DCA. 

Receipt of the DCA does not preclude an 

employee from being granted any award 

(including a contribution award) for 

which he or she is otherwise eligible. 

C. Contribution-Based Compensation 

System (CCS) 

1. General 

The purpose of the CCS is to provide 

an effective means for evaluating and 

compensating the ONR workforce. It 

provides management, at the lowest 

practical level, the authority, control, 

and flexibility needed to develop a 

highly competent, motivated, and 

productive workforce. CCS will promote 

increased fairness and consistency in 

the appraisal process, facilitate natural 

career progression for employees, and 

provide an understandable basis for 

career progression by linking 

contribution to basic pay 

determinations. 

CCS combines performance appraisal 

and job classification into one annual 

process. At the end of each CCS 

appraisal period, basic pay adjustment 

decisions are made based on each 

employee’s actual contribution to the 

organization’s mission during the 

period. A separate function of the 

process includes comparison of 

performance in critical elements to 

acceptable standards to identify 

unacceptable performance that may 

warrant corrective action in accordance 

with 5 CFR part 432. Supervisory 

officials determine scores to reflect each 

employee’s contribution, considering 

both how well and at what level the 

employee is performing. Often the two 

considerations are inseparable. For 

example, an employee whose written 

documents need to be returned for 

rework more often than those of his or 

her peers also likely requires a closer 

level of oversight, an important factor 

when considering level of pay. 

The performance planning and rating 

portions of the demonstration project’s 

appraisal process constitute a 

performance appraisal program which 

complies with 5 CFR part 430 and the 

DoD Performance Management System, 

except where waivers have been 

approved. Performance-related actions 

initiated prior to implementation of the 

demonstration project (under DON 

performance management regulations) 

shall continue to be processed in 

accordance with the provisions of the 

appropriate system. 

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2. CCS Process 

CCS measures employee contributions 

by breaking down the jobs in each 

career track using a common set of 

‘‘elements.’’ The elements for each career 

track shown in Figure 5 and described 

in detail in Appendix E have been 

initially identified for evaluating the 

contributions of ONR personnel covered 

by this initiative. They are designed to 

capture the highest level of the primary 

content of the jobs in each pay band of 

each career track. Within specific 

parameters, elements may be weighted 

or even determined to be not applicable 

for certain categories of positions. All 

elements applicable to the position are 

critical as defined by 5 CFR part 430. 

For each element, ‘‘Discriminators’’ 

and ‘‘Descriptors’’ are provided to assist 

in distinguishing low to high 

contributions. The discriminators (two 

to four for each element) break down 

aspects of work to be measured within 

the element. The descriptors (one for 

each pay band for each discriminator) 

define the expected level of contribution 

at the top of the related pay band for 

that element. 

Scores currently range between 0 and 

92; specific relationships between 

scores and pay bands are different for 

each career track. (See Figure 6.) Basic 

pay adjustments are based on a 

comparison of the employee’s level of 

contribution to the normal pay range for 

that contribution and the employee’s 

present rate of basic pay. 


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Supervisors and pay pool panels 

determine an employee’s contribution 

level for each element considering the 

discriminators as appropriate to the 

position. A contribution score, available 

to that level, is assigned accordingly. 

For example, a scientist whose 

contribution in the Technical Problem 

Solving element for S&E Professionals is 

determined to be at Level II may be 

assigned a score of 18 to 47. Eighteen 

reflects the lowest level of 

responsibility, exercise of independent 

judgment, and scope of contribution; 

and 47 reflects the highest. For Level III 

contributions, a value of 44 to 66 may 

be assigned. Each higher pay band 

equates to a higher range of values with 

the total points available to S&E 

Professionals to be determined based on 

the salary range for pay band V under 

the proposed DoD above GS–15 position 

initiative. Each element is judged 

separately and level of work may vary 

for different elements. The scores for 

each element are then averaged to 

determine the Overall Contribution 

Score (OCS). 

The CCS process will be carried out 

within pay pools made up of combined 

ONR organizations. The organizations in 

each pay pool will be combined based 

on criteria such as similarity of work 

and chain of command. To facilitate 

equity and consistency, element weights 

and applicability and CCS score 

adjustments are determined by a pay 

pool panel, rather than by individual 

supervisors. Basic pay adjustments, 

contribution awards, and DCA’s may be 

recommended by the pay pool panel or 

by individual supervisors. Pay pool 

panels will consist of Department Heads 

and Directors, or other individuals who 

are familiar with the organization’s 

work and the contributions of its 

employees. The Executive Director or 

designee will function as pay pool 

manager, with final authority to decide 

weights, scores, basic pay adjustments, 

and awards. 

3. Pay Pool Annual Planning 

Prior to the beginning of each annual 

appraisal period, the pay pool manager 

and panel will review pay pool-wide 

expectations in the areas described 

below. 

a. Element Weights and Applicability. 

As written, all elements are weighted 

equally. If pay pool panels and 

managers decide that some elements are 

more important than others or that some 

do not apply at all to the effective 

accomplishment of the organization’s 

mission, they may establish element 

weights including a weight of zero 

which renders the element not 

applicable. Element weights are not 

intended for application to individual 

employees. Instead, they may be 

established only for subcategories of 

positions, not to exceed a maximum of 

five subcategories in each career track. 

Subcategories for S&E Professionals 

might be: Supervisor, Program Manager, 

and Support S&E. Subcategories should 

include a minimum of five positions, 

when possible. Weights must be 

consistent within the subcategory. 

b. Supplemental Criteria. 

The CCS level descriptors are 

designed to be general so that they may 

be applied to all employees in the career 

track. Supervisors and pay pool panels 

may establish supplemental criteria to 

further inform employees of expected 

contributions. This may include (but is 

not limited to) examples of 

contributions which reflect work at each 

level for each element, taskings, 

objectives, and/or standards. 

4. Annual CCS Appraisal Process (See 

Figure 7) 


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The ONR appraisal period will 

normally be one year, with a minimum 

appraisal period of 90 days. At the 

beginning of the appraisal period, or 

upon an employee’s arrival at ONR or 

into a new position, the following 

information will be communicated to 

employees so that they are informed of 

the basis on which their performance 

and contributions will be assessed: 

Their career track and pay band; 

applicable elements, descriptors, and 

discriminators; element weights; any 

established supplemental criteria; OCS’s 

which correspond to each employee’s 

NPR (see section IV.C.6); and basic 

acceptable performance standards. The 

CCS Summary (Appendix E) will be 

used to facilitate and document this 

communication. All employees will be 

provided this information; however, 

employees in some situations may not 

receive CCS scores. These situations are 

described in section IV.C.5, Exceptions. 

The communication of information 

described by this paragraph constitutes 

performance planning as required by 5 

CFR 430.206(b). 

Supervisor and employee discussion 

of organizational objectives, specific 

work assignments, and individual 

performance expectations (as needed), 

should be conducted on an ongoing 

basis. Either the supervisor or the 

employee may request a formal review 

during the appraisal period; otherwise, 

a documented review is required only at 

the end of the appraisal period. 

At the end of the appraisal period, 

employees will provide input describing 

their contributions by preparing a 

Yearly Accomplishment Report (YAR). 

Pay pool managers may exempt groups 

of positions from the requirement to 

submit YARs; in cases where YARs are 

not required, employees may submit 

them at their own discretion. Standard 

operating procedures will provide 

guidance for pay pools and employees 

on the content and format of YARs, and 

on other types of information about 

employee contributions which should 

be developed and considered by 

supervisors. This will include 

procedures for capturing contribution 

information regarding employees who 

serve on details, who change positions 

during the appraisal period, who are 

new to ONR, and other such 

circumstances. 

Supervisors will review the 

employee’s YAR and other available 

information about the employee’s 

contributions during the appraisal 

period and determine an initial CCS 

score for each element considering the 

discriminators as appropriate to the 

position. In addition, supervisors will 

determine whether the employee’s 

performance was acceptable or 

unacceptable in each element when 

compared against the basic acceptable 

performance standards. The rating of the 

elements (all that are applicable are 

designated critical as defined by 5 CFR 

part 430) will serve as the basis for 

assignment of a summary level of 

Acceptable or Unacceptable. If any 

element is rated unacceptable, the 

summary level will be Unacceptable; 

otherwise the summary level will be 

Acceptable. Unacceptable ratings must 

be reviewed and approved by a higher 

level than the first-level supervisor. 

If an employee changes positions 

during the last 90 days of the appraisal 

period, the losing supervisor will 

conduct a performance rating (i.e., rate 

each element Acceptable or 

Unacceptable and determine the 

summary level) at the time the 

employee moves to the new position. 

This will serve as the employee’s rating 

of record. For employees who report to 

ONR during the last 90 days of the 

appraisal period, any close-out rating of 

Acceptable (or its equivalent) or better 

from another Government agency will 

serve as the employee’s rating of record 

(the employee will be rated Acceptable). 

The determination of CCS scores and 

application of related pay adjustments 

for such employees is set forth in 

section IV.C.5, ‘‘Exceptions.’’ 

The pay pool panel will meet to 

compare scores, make appropriate 

adjustments, and determine the final 

OCS for each employee. Final approval 

of CCS scores and element and 

summary ratings will rest with the pay 

pool manager (unless higher level 

approval is requested or deemed 

necessary). Supervisors will 

communicate the element scores, 

ratings, summary level, and OCS to each 

employee, and discuss the results and 

plans for continuing growth. Employees 

rated Unacceptable will be provided 

assistance to improve their performance 

(see paragraph V.A). 


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The CCS process will be facilitated by 

an automated system, the Contributionbased Compensation System Data 

System (CCSDS). During the appraisal 

process, all scores and supervisory 

comments will be entered into the 

CCSDS. The CCSDS will provide 

supervisors, pay pool panel members, 

and pay pool managers with background 

information (e.g., YARS, employees’ 

prior year scores and current basic pay) 

and spreadsheets to assist them in 

comparing contributions and 

determining scores. Records of 

employee appraisals will be maintained 

in the CCSDS, and the system will be 

able to produce a hard copy document 

for each employee which reflects his or 

her final approved score. 

5. Exceptions 

All employees who have worked 90 

days or more by the end of the appraisal 

period will receive a performance rating 

of record. However, in certain situations 

ONR does not consider the actual 

determination of CCS scores to be 

necessary. In other situations, it may not 

be feasible to determine a meaningful 

CCS score. Therefore, the determination 

of CCS scores will not be required for 

the following types of employees: (a) 

Employees on intermittent work 

schedules; (b) those on temporary 

appointments of one year or less; (c) 

those who work less than six months in 

an appraisal period (e.g., on extended 

absence due to illness); (d) those on 

long-term training for all or much of the 

appraisal period; (e) employees who 

have reported to ONR or to a new 

position during the 90 days prior to the 

end of the appraisal period; and (f) 

Student Educational Employment 

Program employees. 

If supervisors believe that the nature 

of such an employee’s contributions 

provide a meaningful basis to determine 

a CCS score, they may appraise 

employees in the categories listed 

above, provided that the employee has 

worked at least 90 days in an ONR 

position during the appraisal period. 

Those employees mentioned above 

who are not appraised under CCS will 

not be eligible for merit increases or 

contribution awards. (This will affect 

the calculation of service credit for RIF 

(see section V.C.)). All employees listed 

above will be given full general and 

locality increases (as described in 

sections IV.C.7.a, ‘‘General Increases,’’ 

and IV.C.7.c, ‘‘Locality Increases’’). All 

employees are eligible for awards under 

ONR’s Incentive Awards Program, such 

as ‘‘On-the-Spot’’ and Special Act 

Awards, as appropriate. 

6. Normal Pay Range (NPR)—Basic Pay 

Versus Contribution 

The CCS assumes a relationship 

between the assessed contribution of the 

employee and a normal range of pay. 

For all possible contribution scores 

available to employees, the NPR spans 

a basic pay range of 12 percent. 

Employees who are compensated below 

the NPR for their assessed score are 

considered ‘‘undercompensated,’’ while 

employees compensated above the NPR 

are considered ‘‘overcompensated.’’ 

The lower boundary of the NPR is 

initially established by fixing the basic 

pay equivalent to GS–1, step 1 (without 

locality pay), with a CCS score of zero. 

The upper boundary is fixed at the basic 

pay equivalent to GS–15, step 10 

(without locality pay), with a CCS score 

of 80. The distance between these upper 

and lower boundaries for a given overall 

contribution score is 12 percent of basic 

pay for all available CCS scores. Using 

these constraints, the interval between 

scores is approximately 2.37 percent 

through the entire range of pay. The 

lines will be extended using the same 

interval so that the upper boundary of 

the normal range of basic pay 

accommodates the basic pay needed for 

the S&E Professional career track pay 

band V. (The actual end point will vary 

depending on any pay adjustment 

factors, e.g., general increase.) The 

formula used to derive the NPR may be 

adjusted in future years of the 

demonstration project. See Appendix F 

for further details regarding the 

formulation of the NPR. 

Each year the boundaries for the NPR 

plus the minimum and maximum rate of 

basic pay for each pay band will be 

adjusted by the amount of the acrossthe-board GS percentage increase 

granted to the Federal workforce. At the 

end of each annual appraisal period, 

employees’ contribution scores will be 

determined by the CCS process 

described above, and then their overall 

contribution scores and current rates of 

basic pay will be plotted as a point on 

a graph along with the NPR. The 

position of the point relative to the NPR 

gives a relative measure of the degree of 

over- or undercompensation of the 

employee, as shown in Figure 8. Points 

which fall below the NPR indicate 

undercompensation; points which fall 

above the NPR indicate 

overcompensation. 

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7. Compensation 

Presently, employee pay is 

established, adjusted, and/or augmented 

in a variety of ways, including general 

pay increases, locality pay increases, 

special rate adjustments, within-grade 

increases (WGI’s), quality step increases 

(QSI’s), performance awards, and 

promotions. Multiple pay changes in 

any given year (averaging three per 

employee) are costly to process and do 

not consider comprehensively the 

employee’s contributions to the 

organization. Under the demonstration 

project, ONR will distribute the budget 

authority from the sources listed above 

into four pay categories: (1) General 

increase, (2) locality increase, (3) merit 

increase, and (4) contribution awards. 

From these pay categories, single annual 

pay actions would be authorized based 

primarily on employees’ contributions. 

Competitive promotions will still be 

processed under a separate pay action; 

most career promotions will be 

processed under the CCS. 

In general, the goal of CCS is to pay 

in a manner consistent with employees’ 

contributions or, in other words, migrate 

employees’ basic pay closer to the NPR. 

One result may be a wider distribution 

of pay among employees for a given 

level of duties. 

After the CCS appraisal process has 

been completed and the employees’ 

standing relative to the NPR has been 

determined, the pay pool manager, in 

consultation with the pay pool panel or 

other pay pool supervisory and staff 

officials, will determine the appropriate 

basic pay change and contribution 

award, if appropriate, for each 

employee. Standard operating 

procedures will provide guidance, 

including market salary reference data, 

to assist pay pool managers in making 

pay determinations. In most cases, the 

pay pool manager will approve basic 

pay changes and awards. In some cases, 

however, approval of a higher level 

official will be required. Figure 9 

summarizes the eligibility criteria and 

applicable limits for each pay category. 

The CCSDS will calculate each 

employee’s OCS and his or her standing 

in relation to the NPR. The system will 

provide a framework to assist pay pool 

officials in selecting and implementing 

a payout scheme. It will alert 


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management to certain formal limits in 

granting pay increases; e.g., an 

employee may not receive a permanent 

increase above the maximum rate of 

basic pay for his or her pay band until 

a corresponding level change has been 

effected. Once basic pay and award 

decisions have been finalized and 

approved, the CCSDS will prepare the 

data file for processing the pay actions 

and maintain a consolidated record of 

CCS pay actions for all ONR 

demonstration project employees. 

a. General Increases. 

General increase budget authority will 

be available to pay pools as a straight 

percentage of employee salaries, as 

derived under 5 U.S.C. 5303 or similar 

authority. Pay pool panels or managers 

may reduce or deny general pay 

increases for employees whose 

contributions are in the 

overcompensated category. (See Figure 

9.) Such reduction or denial may not 

place an employee in the 

undercompensated category. An 

employee receiving maintained pay 

(except one receiving maintained pay 

for an occupational injury who receives 

a full general pay increase) will receive 

half of the across-the-board GS 

percentage increase in basic pay until 

the employee’s basic pay is within the 

basic pay range assigned for their 

current position or for two years, 

whichever is less. ONR employees on 

pay retention at the time of 

demonstration project implementation 

or as a result of placement through the 

DON RPL, DoD PPP or the Federal 

Interagency Career Transition 

Assistance Plan will receive half of the 

across-the-board GS percentage increase 

until the employee’s maintained pay is 

exceeded by the maximum rate for the 

employee’s pay band or the maintained 

pay is ended due to a promotion. 

General increase authority not expended 

is available to either the merit increase 

or contribution award pay categories or 

both. 

b. Merit Increases. 

Merit increases will be calculated 

after the determination of employees’ 

general increases. Merit increases may 

be granted to employees whose 

contribution places them in the 

‘‘normal’’ or ‘‘undercompensated’’ 

categories. (See Figure 9.) In general, the 

higher the range in which the employee 

is contributing compared to his or her 

basic pay, the higher the merit increase 

should be. However, the following 

limitations apply: A merit increase may 

not place any employee’s basic pay (1) 

in the ‘‘overcompensated’’ category (as 

established by the NPR for the 

upcoming year, which has been 

adjusted by the amount of the new 

general increase); (2) in excess of 

established basic pay caps; (3) in excess 

of the maximum rate of basic pay for the 

individual’s pay band (unless the 

employee is being concurrently 

advanced to the higher pay band); or (4) 

above any outside-imposed dollar limit. 

Merit increases for employees in the 

NPR will be limited to six percent of 

basic pay, not to exceed the upper limit 

of the NPR for the employee’s score. In 

addition, merit increases for employees 

in the undercompensated range may not 

exceed six percent above the lower rail 

of the NPR, or 20 percent of basic pay 

without CNR or designee approval. 

The size of ONR’s continuing pay 

fund is based on appropriate factors, 

including the following: (1) Historical 

spending for within-grade increases, 

quality step increases, and in-level 

career promotions (with dynamic 

adjustments to account for changes in 

law or in staffing factors, e.g., average 

starting salaries and the distribution of 

employees among job categories and 

band levels); (2) labor market conditions 

and the need to recruit and retain a 

skilled workforce to meet the business 

needs of the organization; and (3) the 

fiscal condition of the organization. 

ONR will periodically review or will 

review every two to three years its 

continuing pay fund to determine if any 

adjustments are necessary. 

The amount of budget authority 

available to each pay pool will be 

determined annually by the CNR. 

Factors to be considered by the CNR in 

determining annual budget authority 

may include market salaries, mission 

priorities, and organizational growth. 

Because statistical variations will occur 

in year-to-year personnel growth, any 

unexpended merit increase authorities 

may be transferred to the Contribution 

Awards category. 

c. Locality Increases. 

All employees will be entitled to the 

locality pay increase authorized by law 

and regulation for their official duty 

station and/or position. 

d. Contribution Awards. 

Authority to pay contribution awards 

(lump-sum payments recognizing 

significant contributions) will be 

initially available to pay pools as a 

straight 1.5 percent of employees’ basic 

pay (similar to the amount currently 

available for performance awards). The 

percentage rate may be adjusted in 

future years of the demonstration 

project. In addition, unexpended 

general increase and merit increase 

budget authorities may be used to 

augment the award category. 

Contribution awards may be granted to 

those employees whose contributions 

place them in the ‘‘normal’’ or 

‘‘undercompensated’’ category and to 

employees in the ‘‘overcompensated’’ 

category who are on maintained pay. 

Standard operating procedures will 

provide guidance to pay pool managers 

in establishing and applying criteria to 

determine significant contributions 

which warrant awards. An award 

exceeding $10,000 requires CNR 

approval. (See Figure 9.) Pay pools may 

also grant time-off as a contribution 

award, in lieu of or in addition to cash. 

8. Career Movement Based on CCS 

Movement through the pay bands will 

be determined by contribution and basic 

pay at the time of the annual CCS 

appraisal process. 

The ONR demonstration project is an 

integrated system that links level of 

work to be accomplished (as defined by 

a career track and pay band) with 

individual achievement of that work (as 

defined by an OCS) to establish the rate 

of appropriate compensation (as defined 

by the career track pay schedule) and to 

determine progression through the 

career track. This section addresses only 

changes in level which relate directly to 

the CCS determination. 

When an employee’s OCS falls within 

three scores of the top score available to 

his or her current pay band, supervisors 

should consider whether it is 

appropriate to advance the employee to 

the next higher level (refer to IV.A.1.a 

for other criteria). If progression to the 

next higher level is deemed warranted, 

supporting documentation would be 

included with the CCS appraisal and 

forwarded through the appropriate 

channels for approval. If advancement is 

not considered appropriate at this time, 

the employee would remain in his or 

her current pay band. Future basic pay 

raises would be capped by the top of the 

employee’s current pay band unless the 

employee progresses to the next higher 

pay band through a CCS-related 

promotion, an accretion of duties 

promotion, or a competitive promotion. 

a. Advancements in Level Which May 

be Approved by the Pay Pool Manager. 

Advancements to all levels except 

Level V of the S&E Professional Career 

Track may be approved by the pay pool 

manager. 

b. Advancements in Level Which 

Must be Approved by the CNR. 

Advancement to (1) levels outside 

target pay bands or established position 

management criteria; (2) Levels IV and 

V of the S&E Professional Career Track; 

and (3) Levels IV and V of the 

Administrative Specialist and 

Professional Career Track require 

approval by the CNR or his or her 

designee. Details regarding the process 

for nomination and consideration, 

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format, selection criteria, and other 

aspects of this process will be addressed 

in the standard operating procedures. 

c. Advancement to Level V of the 

Science and Engineering (S&E) 

Professional Career Track. 

Vacancies in this pay band will be 

filled in accordance with guidance 

issued by DoD. 

d. Regression to Lower Level. (See 

Figure 8, ‘‘Employee A.’’) 

If an employee is contributing less 

than expected for the level at which he 

or she is being paid, the individual may 

regress into a lower pay band through 

reduction or denial of general increases 

and ineligibility for merit increases. 

(This is possible because the NPR plus 

the minimum and maximum pay rates 

for each pay band will be adjusted 

upwards each year by the across-theboard GS percentage increase in basic 

pay.) If the employee’s basic pay 

regresses to a point below the pay 

overlap area between his or her level 

and the next lower level, it will no 

longer be appropriate to designate him 

or her as being in the higher level. 

Therefore, the employee will be 

formally changed to the lower level. The 

employee will be informed of this 

change in writing, but procedural and 

appeal rights provided by 5 U.S.C. 4303 

and 7512 (and related OPM regulations) 

will not apply (except in the case of 

employees who have veterans’ 

preference). ONR is providing for 

waivers of the statute and regulations 

for such actions. Further, because a 

change to lower level under such 

circumstances is not discretionary, the 

change may not be grieved under ONR’s 

administrative grievance procedures. 

9. CCS Grievance Procedures 

An employee may grieve the appraisal 

received under CCS using procedures 

specifically designed for CCS appraisals. 

Under these procedures, the employee’s 

grievance will first be considered by the 

pay pool panel, who will recommend a 

decision to the pay pool manager. If the 

employee is not satisfied with the pay 

pool manager’s decision, he or she may 

file a second-step grievance with the 

next higher level ONR management 

official. This official will render a final 

ONR decision on the grievance. 

The following are not grievable: pay 

actions resulting from CCS (receipt, 

non-receipt or amount of general 

increase, merit increase, DCA or 

contribution award); reductions in level 

without reduction in pay due to 

regression (see section IV.C.8.d); any 

action for which another appeal or 

complaint process exists. 

V. Separations 

A. Performance-Based Reduction-in-Pay 

or Removal Actions 

This section applies to reduction in 

pay or removal of demonstration project 

employees based solely on unacceptable 

performance. Adverse action procedures 

under 5 CFR part 752 remain 

unchanged. 

When a supervisor determines during 

or at the end of the appraisal period that 

the employee is not completing work 

assignments satisfactorily, the 

supervisor must make a determination 

as to whether the employee is 

performing unacceptably in one or more 

of the critical elements. All CCS 

elements applicable to the employee’s 

position are critical as defined by 5 CFR 

part 430. 

Unacceptable performance 

determinations must be made by 

comparing the employee’s performance 

to the acceptable performance standards 

established for elements. 

At any time during or at the end of the 

appraisal period that an employee’s 

performance is determined to be 

unacceptable in one or more critical 

elements, the employee will be 

provided assistance in improving his or 

her performance. This will normally 

include clarifying (or further clarifying) 

the meaning of terms used in the 

acceptable performance standards (e.g., 

‘‘timely’’ ‘‘thorough research,’’ and 

‘‘overall high quality’’) as they relate to 

the employee’s specific responsibilities 

and assignments. An employee whose 

performance is unacceptable after he or 

she has been given a reasonable 

opportunity to improve may be removed 

or reduced in grade or level, in 

accordance with the provisions of 5 

U.S.C. 4303 and related OPM 

regulations. Employees may also be 

removed or reduced in grade or level 

based on unacceptable performance 

under the provisions of 5 U.S.C. 7512. 

All procedural and appeal rights set 

forth in the applicable statute and 

related OPM regulations will be 

afforded to demonstration project 

employees removed or reduced in grade 

or level for unacceptable performance. 

B. Reduction-in-Force (RIF) Procedures 

1. RIF Authority 

Under the demonstration project, 

ONR would be delegated authority to 

approve RIF as defined in Secretary of 

the Navy Instruction 12351.5F or its 

successor and the use of separation pay 

incentives. 

2. RIF Definitions 

a. Competition in RIF. 

When positions are abolished, 

employees are released from their 

retention levels in inverse order of their 

retention standing, beginning with the 

employee having the lowest standing. If 

an employee is reached for release from 

a retention level, he/she could have a 

right to be assigned to another position 

within their same career track and pay 

band or they could have a right to 

retreat to a position previously held. 

b. Competitive Area. 

A separate competitive area will be 

established by geographic location for 

all personnel included in the ONR 

demonstration project. 

c. Competitive Level. 

Positions in the same occupational 

pay band, which are similar enough in 

duties and qualifications that employees 

can perform the duties and 

responsibilities including the selective 

placement factor, if any, of any other 

position in the competitive level upon 

assignment to it, without any loss of 

productivity beyond what is normally 

expected. 

d. Service Computation Date (SCD). 

The employee’s basic Federal SCD 

would be adjusted for CCS results 

credit. 

(1) Federal SCD. 

An employee’s basic Federal SCD may 

be credited with up to 20 years credit 

based on the results of the CCS process. 

The CCS RIF Assessment Category 

would be used to determine the number 

of RIF years credited. The CCS RIF 

Assessment Category is the combination 

of the employee’s standing under the 

CCS relative to the NPR and any merit 

increase, DCA, contribution award or 

promotion. Figure 10 shows the RIF 

years available for each CCS RIF 

Assessment Category [proposed 

revisions to the RIF Assessment 

Category are depicted]. 

FIGURE 10—CS RIF ASSESSMENT CATEGORIES

Assessment category RIF years 

available 

0 = Employees within the overcompensated range without any portion of a general increase ............................................................... 0 

1 = Employees receiving maintained pay or any portion of a general increase but no merit increase or contribution (cash/time off) ... 12 

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FIGURE 10—CS RIF ASSESSMENT CATEGORIES—Continued 

Assessment category RIF years 

available 

2 = Employees (without a capped salary** or career promotion) receiving a total compensation increase* of 6% or less or with a 

capped salary receiving a total compensation increase of 3% or less ................................................................................................. 16 

3 = Employees receiving (1) a total compensation increase* greater than 6%; (2) a career promotion; or (3) with a capped salary**

receiving a total compensation increase greater than 3% .................................................................................................................... 20 

Final RIF Credit: Average of the three most recent CCS Process Results received during the 4-year period prior to the cutoff date. 

*Total compensation includes merit increase, contribution award (cash/time off), and distinguished contributions allowance. 

** Capped means the employee has the maximum salary for the assigned pay band. 

(2) CCS Process Results. 

If an employee has fewer than three 

CCS process results, the value (RIF years 

available) of the actual number of 

process results on record will be 

divided by the number of actual process 

results on record. In cases where an 

employee has no actual CCS process 

results, the employee will be given the 

additional RIF CCS process results 

credit for the most common, or ‘‘modal’’ 

ONR demonstration project CCS RIF 

Assessment Category for the most recent 

CCS appraisal period. 

(3) Credit from Other Rating Systems. 

Employees who have been rated 

under different patterns of summary 

rating levels will receive RIF appraisal 

credit as follows: 

—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), 

employees will receive credit as 

follows: 12 years for Level 3, 16 years 

for Level 4, or 20 years for Level 5; or 

—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 CCS RIF assessment category. 

(4). RIF Cutoff Date. 

To provide adequate time to properly 

determine employee retention standing, 

the cutoff date for use of new CCS 

process results is set at 30 days prior to 

the date of issuance of RIF notices. 

3. Displacement Rights 

a. Displacement Process. 

Once the position to be abolished has 

been identified, the incumbent of that 

position may displace another employee 

within the incumbent’s current career 

track and pay band when the incumbent 

has a higher retention standing and is 

fully qualified for the position occupied 

by an employee with a lower standing. 

If there are no displacement rights 

within the incumbent’s current career 

track and pay band, the incumbent may 

exercise his or her displacement rights 

to any position previously held in the 

next lower pay band, regardless of 

career track, when the position is held 

by an employee with a lower retention 

standing. In the case of all preference 

eligibles, they may displace up to the 

equivalent of three grades or intervals 

below the highest equivalent grade of 

their current pay band in the same or a 

different career track regardless of 

whether they previously held the 

position provided they are fully 

qualified for the position and the 

position is occupied by an employee 

with a lower retention standing. 

Preference eligibles with a compensable 

service connected disability of 30 

percent or more may displace an 

additional two GS grades or intervals 

(total of five grades) below the highest 

equivalent grade of their current pay 

band provided they have previously 

held the position and the position is 

occupied by an employee in the same 

subgroup with a later RIF service 

computation date. 

b. Retention Standing. 

Retention is based on tenure, 

veterans’ preference, length of service, 

and CCS process results. Competing 

employees are listed on a retention 

register in the following order: Tenure I 

(career employees), Tenure II (careerconditional employees), and Tenure III 

(contingent employees). Each tenure 

group has three subgroups (30% or 

higher compensable veterans, other 

veterans, and non-veterans) and 

employees appear on the retention 

register in that order. Within each 

subgroup, employees are in order of 

years of service adjusted to include CCS 

process results. 

c. Vacant Positions. 

Assignment may be made to any 

available vacant position including 

those with promotion potential in the 

competitive area. 

d. Ineligible for Displacement Rights. 

Employees who have been notified in 

writing that their performance is 

considered to be unacceptable are 

ineligible for displacement rights. 

e. Change to Lower Level Due to an 

Adverse or Performance-based Action. 

An employee who has received a 

written decision to change him or her to 

a lower level due to an adverse or 

performance-based action will compete 

from the position to which he or she 

will be or has been demoted. 

4. Notice Period 

The notice period and procedures in 

5 CFR subpart H, section 351.801 will 

be followed. 

5. RIF Appeals 

Under the demonstration project, 

employees affected by a RIF action, 

other than a reassignment, maintain 

their right to appeal to the Merit 

Systems Protection Board if they feel the 

reason for the RIF is not valid or if they 

think the process or procedures were 

not properly applied. 

6. Separation Incentives 

ONR will have delegated authority to 

approve separation incentives and will 

use the current calculation methodology 

of a lump sum payment equal to an 

employee’s severance pay calculation or 

$25,000, whichever is less. 

7. Severance Pay 

Employees will be covered by the 

severance pay rules in 5 CFR part 550, 

subpart G, except that ONR will 

establish rules for determining a 

‘‘reasonable offer’’ according to the 

provisions of 5 CFR 536.104. 

8. Outplacement Assistance 

All outplacement assistance currently 

available would be continued under the 

demonstration project. 

VI. Demonstration Project Transition 

A. Initial Conversion or Movement to 

the Demonstration Project 

1. Placement Into Career Tracks and Pay 

Bands 

Conversion or movement of GS 

employees into the demonstration 

project will be into the career track and 

pay band which corresponds to the 

employee’s current GS grade and basic 

pay. If conversion into the 

demonstration project is accompanied 

by a simultaneous change in the 

geographic location of the employee’s 

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duty station, the employee’s overall GS 

pay entitlements (including locality 

rate) in the new area will be determined 

before converting the employee’s pay to 

the demonstration project pay system. 

Employees will be assured of placement 

within the new system without loss in 

total pay. Once under the demonstration 

project, employee progression through 

the career tracks and pay bands up to 

their target pay band is dependent upon 

contribution score, not upon previous 

methods (e.g., WGI’s, QSI’s, or career 

promotions as previously defined). 

ONR proposes the addition of 

language to clarify procedures for noncompetitive placements into the 

demonstration project. Specifically, 

employees who enter the demonstration 

project after initial implementation by 

lateral transfer, reassignment, or 

realignment will be subject to the same 

pay conversion rules. 

2. Conversion of Retained Grade and 

Pay Employees 

ONR’s workforce will be grouped into 

career tracks and associated pay levels 

with designated pay ranges rather than 

the traditional grade and step. 

Therefore, grade and pay retention will 

be eliminated. ONR will grant 

‘‘maintained pay’’ (as defined in section 

III.G.2, ‘‘Maintained Pay’’), which is 

related to the current meaning of 

‘‘retained pay’’ but does not provide for 

indefinite retention of pay except in 

certain situations. Employees’ currently 

on grade or pay retention will be 

immediately placed on maintained pay 

at their current rate of basic pay if this 

rate exceeds the maximum rate for their 

pay band and ‘‘grandfathered’’ in the 

appropriate pay band. Employees on 

grade retention will be placed in the pay 

band encompassing the grade of their 

current position. Employees will receive 

half of the across-the-board GS 

percentage increase in basic pay and the 

full locality pay increase until their 

basic pay is within the appropriate basic 

pay range for their current position 

without time limitation. 

3. WGI Buy-In 

The participation of all covered ONR 

employees in the demonstration project 

is mandatory. However, acceptance of 

the system by ONR employees is 

essential to the success of the 

demonstration project. Therefore, on the 

date that employees are converted to the 

project pay plans, they will be given a 

permanent increase in pay equal to the 

earned (time spent in step) portion of 

their next WGI based on the value of the 

WGI at the time of conversion so that 

they will not feel they are losing a pay 

entitlement accrued under the GS 

system. Employees will not be eligible 

for this basic pay increase if their 

current rating of record is unacceptable 

at the time of conversion. There will be 

no prorated payment for employees who 

are at step 10 or receiving a retained rate 

at the time of conversion into the 

demonstration project. 

4. Career Promotion Eligibility 

ONR proposes to adopt MRMC’s 

provisions for compensating employees 

who would have become eligible for 

career promotions during the first 12 

months of the demonstration project but 

for conversion to the demonstration 

project pay bands. Employees who 

qualify under this provision will receive 

pay increases for noncompetitive 

promotion equivalents when the grade 

level of the promotion is encompassed 

within the same pay band, the 

employee’s performance warrants the 

promotion, and the promotion would 

have otherwise occurred during that 

period. Employees who receive an inlevel promotion at the time of 

conversion will not receive a WGI BuyIn equivalent as defined above. 

5. Conversion of Special Salary Rate 

Employees 

Employees who are in positions 

covered by a special salary rate prior to 

entering the demonstration project will 

no longer be considered special salary 

rate employees 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 rate of pay 

computed by dividing their basic 

adjusted pay (higher of special salary 

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 will 

not apply to the conversion process as 

there will be no change in total salary. 

However, if an employee’s new basic 

pay rate after conversion to the 

demonstration project pay schedule 

exceeds the maximum basic pay 

authorized for the pay band, the 

employee will be granted maintained 

pay under paragraph III.G.2 until the 

employee’s salary is within the range of 

the pay band. For example, an 

Electronics Engineer, GS–855–9, step 5, 

is paid $59,568 per annum in 

accordance with special GS salary rates 

as of January 2010 per Table Number: 

0422. The employee is located in the 

locality area of Washington-Baltimore, 

DC-MD-VA-WV. Under the 

demonstration project, the computation 

of the engineer’s new basic rate of pay 

with a full locality adjustment and WGI 

buy-in is computed as follows: 

a. Basic adjusted pay divided by 

locality pay factor = new basic rate of 

pay. 

b. New basic rate of pay multiplied by 

the full locality adjustment for current 

area = full locality adjustment amount 

for special rate employees. 

c. New basic rate of pay + WGI buyin amount × locality pay factor = 

demonstration special rate for 

conversion. 

6. Conversion of Employees on 

Temporary Promotions 

Employees who are on temporary 

promotions at the time of conversion 

will be returned to their grade and step 

of record prior to conversion. These 

employees will be converted to a pay 

band following the procedures 

described in Section IV.A.1. After 

conversion, the temporary promotion 

may be reinstated for the remainder of 

the original 120-day timeframe. If the 

grade of the temporary position is 

associated with a higher pay band, the 

employee will be temporarily placed in 

the appropriate higher band while on 

the temporary promotion, following the 

procedures described in Section 

II.A.5.b.i. After the temporary 

promotion has ended, the employee will 

be returned to the salary and pay band 

established upon conversion, following 

the procedures described in Section 

II.A.5.b.iv. 

7. Non-Competitive Movement Into the 

Demonstration Project 

Employees who enter the 

demonstration project after initial 

implementation by lateral transfer, 

reassignment, or realignment will be 

subject to the same pay conversion rules 

and will, therefore, be eligible for full 

locality pay. Specifically, adjustments to 

the employee’s basic pay for a step 

increase or a non-competitive career 

ladder promotion will be computed as 

a prorated share of the current value of 

the step or promotion increase based 

upon the number of full weeks an 

employee has completed toward the 

next higher step or grade at the time the 

employee moves into the project. 

B. CCS Start-Up 

ONR expects to place employees on 

CCS elements, descriptors, 

discriminators, and standards around 

October 2010 with conversion to 

demonstration project pay plans before 

the end of April 2011. The CCS process 

will be used to appraise ONR employees 

at the end of the 2010–2011 cycle which 

would occur on September 30, 2011. 

ONR expects the first CCS payout to 

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occur at the beginning of the first full 

pay period in January 2012. 

C. Training 

An extensive training program is 

planned for everyone in the 

demonstration project including the 

supervisors, managers, and 

administrative staff. Training will be 

tailored, as discussed below, to fit the 

requirements of every employee 

included in the demonstration project 

and will address employee concerns as 

well as the benefits to employees. In 

addition, leadership training will be 

provided, as needed, to managers and 

supervisors as the new system places 

more responsibility and decision 

making authority on them. ONR training 

personnel will provide local 

coordination and facilities, 

supplemented by contractor support as 

needed. Training will be provided at the 

appropriate stage of the implementation 

process. 

1. Types of Training 

Training packages will be developed 

to encompass all aspects of the project 

and validated prior to training the 

workforce. Specifically, training 

packages will be developed for the 

following groups of employees: 

a. Employees. 

ONR demonstration project 

employees will be provided an overview 

of the demonstration project and 

employee processes and 

responsibilities. 

b. Supervisors and Managers. 

Supervisors and managers under the 

demonstration project will be provided 

training in supervisory and managerial 

processes and responsibilities under the 

demonstration project. 

c. Support Personnel. 

Administrative support personnel, 

HRO personnel, financial management 

personnel, and Management 

Information Systems Staff will be 

provided training on administrative 

processes and responsibilities under the 

demonstration project. 

D. New Hires Into the Demonstration 

Project 

The following steps will be followed 

to place employees (new hires) entering 

the system: 

1. The career track and pay band will 

be determined based upon the 

employee’s education and experience in 

relation to the duties and 

responsibilities of the position in which 

he or she is being placed, consistent 

with OPM qualification standards. 

2. Basic pay will be set based upon 

available labor market considerations 

relative to special qualifications 

requirements, scarcity of qualified 

candidates, programmatic urgency, and 

education and experience of the new 

candidate. 

3. Employees placed through the DON 

RPL, the DoD PPP, or the Federal 

Interagency Career Transition 

Assistance Plan who are eligible for 

maintained pay will receive one half of 

the across-the-board GS percentage 

increase in basic pay and the full 

locality pay increase until the 

employee’s basic pay is within the basic 

pay range of the career track and pay 

band to which assigned. Employees are 

eligible for maintained pay as long as 

there is no break in service and if the 

employee’s rate of pay exceeds the 

maximum rate of his or her pay band. 

E. Conversion or Movement From 

Demonstration Project 

In the event the demonstration project 

is terminated or employees leave the 

demonstration project through 

promotion, change to lower grade, 

reassignment or transfer, conversion 

back to the GS system may be necessary. 

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. An employee will not be 

converted at a level which is lower than 

the GS grade held immediately prior to 

entering the Demonstration project; 

unless, since that time, the employee 

has undergone a reduction in pay band. 

The converted GS grade and rate will 

become the employee’s actual GS grade 

and rate after leaving the demonstration 

project and will be used to determine 

the pay action and GS pay 

administration rules for employees who 

leave the project to accept a position in 

the traditional Civil Service system. The 

following procedures will be used to 

convert the employee’s demonstration 

project pay band to a GS equivalent 

grade and the employee’s demonstration 

project rate of pay to the GS equivalent 

rate of pay. 

1. Grade Determination 

Employees will be converted to a GS 

grade based on a comparison of the 

employee’s current adjusted rate of 

basic pay to the highest GS applicable 

rate range considering only those grade 

levels that are included in the 

employee’s current pay band. The 

highest GS applicable rate range 

includes GS basic rates, locality rates, 

and special salary rates. Once a grade 

range is determined, the following 

procedures will be used to determine 

the GS grade: 

a. Identify the highest GS grade 

within the current pay band that 

accommodates the employee’s adjusted 

rate of basic pay (including any locality 

payment). 

b. If the employee’s adjusted rate of 

basic pay equals or exceeds the 

applicable step 4 rate of the identified 

highest GS grade, the employee is 

converted to that grade. 

c. If the employee’s adjusted rate of 

basic pay is lower than the applicable 

step 4 of the highest grade, the 

employee is converted to the next lower 

grade. 

d. If under the above-described ‘‘step 

4’’ rule, the employee’s adjusted project 

rate exceeds the maximum rate of the 

grade assigned 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 the next 

higher applicable grade. 

e. For two-grade interval occupations, 

conversion should not be made to an 

intervening (even) grade level below 

GS–11. 

f. Employees in Level IV of the 

Administrative Specialist and 

Professional Career Track will convert 

to the GS–13 level. 

2. Pay Setting 

Pay conversion will be done before 

any geographic movement or other payrelated action that coincides with the 

employee’s movement or conversion out 

of the demonstration project. The 

employee’s pay within the converted GS 

grade is set by converting the 

employee’s demonstration project rate 

of pay to a GS rate of pay as follows: 

a. The employee’s demonstration 

project adjusted rate of pay (including 

locality) is converted to a rate on the 

highest applicable adjusted rate range 

for the converted GS grade. For 

example, if the highest applicable GS 

rate range for the employee is a special 

salary rate range, the applicable special 

rate salary table is used to convert the 

employee’s pay. 

b. When converting an employee’s 

pay, if the rate of pay falls between two 

steps of the conversion grade, the rate 

must be set at the higher step. 

c. Employees whose basic pay 

exceeds the maximum basic pay of the 

highest GS grade for their pay band will 

be converted to the highest grade and 

step in their pay band. Upon 

conversion, the maximum base pay will 

be at the step 10 level normally with no 

provision for retained pay. 

3. Employees in Positions Classified 

Above GS–15 

Conversion and pay retention 

instructions for employees and 

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positions in Pay Band V of the S&E 

Professional Career Track will be 

contingent on guidance provided by 

DoD. 

4. Determining Date of Last Equivalent 

Increase 

The last equivalent increase will be 

the date the employee received a CCS 

pay increase, was eligible to receive a 

CCS pay increase, or received a 

promotion, whichever occurred last. 

C. 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 System 

Principles will be maintained. Servicing 

Human Resources Service Centers will 

continue to process personnel-related 

actions and provide consultative and 

other appropriate services. 

D. Automation 

ONR 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. 

An automated tool will be used to 

support computation of performance 

related pay increases and awards and 

other personnel processes and systems 

associated with this project. 

E. 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. 

DoDI 1400.37, July 28, 2009, provides 

instructions for adopting other STRL 

flexibilities, making minor changes to 

an existing demonstration project, and 

requesting new initiatives. 

VII. Demonstration Project Duration 

Section 342 of the National Defense 

Authorization Act for Fiscal Year 1995 

(Pub. L. 103–337) does not require a 

mandatory expiration date for this 

demonstration project. The project 

evaluation plan addresses how each 

intervention will be comprehensively 

evaluated. Major changes and 

modifications to the interventions may 

be made using the procedures in DoDI 

1400.37, if formal evaluation data 

warrant a change. At the 5-year point, 

the entire demonstration will be 

examined for either: (a) Permanent 

implementation, (b) modification and 

another test period, or (c) termination of 

the project. 

VIII. Demonstration Project Evaluation 

Plan 

Consistent with DoD guidance, ONR 

proposes following the same evaluation 

plan as is being used by NRL and the 

other STRL Demonstration Projects. 

Accordingly, standard language for 

Evaluation Plan, Evaluation, and 

Method of Data Collection (sections 

V.B., V.C, and V.D., respectively) 

provided by DoD is used in this 

document to describe ONR’s plans and 

procedures for the demonstration 

project evaluation. The use of parallel 

evaluation methodologies will facilitate 

comparisons across the demonstration 

projects to derive higher-order 

conclusions about the benefits, 

challenges, and overall effectiveness of 

these programs. 

A. Overview 

Chapter 47 of title 5 U.S.C. requires 

that an evaluation be performed to 

measure the effectiveness of the 

proposed laboratory demonstration 

project, and its impact on improving 

public management. A comprehensive 

evaluation plan for the entire laboratory 

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 

determine whether the waivers granted 

result in a more effective personnel 

system and improvements in ultimate 

outcomes (i.e., laboratory effectiveness, 

mission accomplishment, and customer 

satisfaction). 

B. Evaluation Model 

Appendix G shows an intervention 

model for the evaluation of the 

demonstration project. The model is 

designed 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 the 

extent to which the: 

(1) HR changes are given a fair trial 

period; 

(2) changes are implemented; and 

(3) 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 

protected groups, the Merit System 

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 interventions, causal 

attributions about the full impact of 

specific interventions will not always be 

possible for several reasons. For 

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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 

and automation support systems). 

C. Evaluation 

A modified quasi-experimental design 

will be used for the evaluation of the 

STRL 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. 

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 five 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 

protected 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. 

IX. Demonstration Project Costs 

A. Cost Discipline 

An objective of the demonstration 

project is to ensure in-house cost 

discipline. A baseline will be 

established at the start of the project and 

labor expenditures will be tracked 

yearly. Implementation costs (including 

project development, automation costs, 

WGI buy-in costs, and evaluation costs) 

are considered one-time costs and will 

not be included in the cost discipline. 

The CNR or designee will track 

personnel cost changes and recommend 

adjustments if required to achieve the 

objective of cost discipline. 

B. Implementation Costs 

Current cost estimates associated with 

implementing the ONR demonstration 

project are shown in Figure 11. These 

include automation of systems such as 

the CCSDS, training, and project 

evaluation. The automation and training 

costs are startup costs. Transition costs 

are one-time costs. Costs for project 

evaluation will be ongoing for at least 

five years. 

FIGURE 11—PROJECTED IMPLEMENTATION COSTS

[Then year dollars] 

FY 10 FY 11 FY 12 FY 13 FY 14 

Training .................................................................................................................................. $200K $200K $56K $25K $25K 

Project Evaluation .................................................................................................................. 100K 50K 100K 50K 100K 

Automation ............................................................................................................................. 97K 25K 25K 25K 25K 

Transition ............................................................................................................................... 0 500K 0 0 0 

.

Totals .............................................................................................................................. 397K 775K 181K 100K 150K 

X. Automation Support 

A. General 

One of the major goals of the 

demonstration project is to streamline 

the personnel processes to increase cost 

effectiveness. Automation must play an 

integral role in achieving that goal. 

Without the necessary automation to 

support the interventions proposed for 

the demonstration project, optimal cost 

benefit cannot be realized. In addition, 

adequate information to support 

decision-making must be available to 

managers if line management is to 

assume greater authority and 

responsibility for human resources 

management. 

Automation to support the 

demonstration project is required at two 

distinct levels. At the DON and DoD 

level, automation support (in the form 

of changes to the DCPDS) is required to 

facilitate processing and reporting of 

demonstration project personnel 

actions. At the ONR level, automation 

support (in the form of local processing 

applications) is required to facilitate 

management processes and decisionmaking. 

B. Defense Civilian Personnel Data 

System (DCPDS) 

Since DCPDS is a legacy system, 

efforts have been made to minimize 

changes to the system; and, therefore, 

the resources required to make the 

necessary changes. The detailed 

specifications for required changes to 

DCPDS will be provided in the System 

Change Request (SCR), Form 804. 

C. Core Document (COREDOC) 

The COREDOC application is a DoD 

system which may require modification 

to accommodate the interventions in 

this demonstration project. Specifically, 

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there is an RD that replaces the position 

description in the basic application; 

career tracks and pay bands replace GS 

grades; and a CCS Assessment Summary 

that replaces performance elements. 

D. RIF Support System (RIFSS) 

The RIFSS is an automated tool used 

by human resources specialists to 

support RIF processing. Under the 

demonstration project, RIF rules are 

modified to increase the credit for 

contributions and limit the rounds of 

competition. The AutoRIF application, 

developed by DoD, may need to be 

modified to accommodate these process 

changes. 

E. Contribution-Based Compensation 

System Data System 

This automated system is required as 

an internal control and as a mechanism 

to equate contribution scores to 

appropriate rates of basic pay. This 

system will allow pay pool managers to 

develop a spreadsheet that will assist 

them in determining an appropriate 

merit increase or contribution award or 

both based on the overall contribution 

score for each individual. It will also be 

used as an internal control to ensure 

that the permanent and nonpermanent 

money allotted to each pay pool is not 

exceeded. It will further allow pay pool 

managers to visualize the effects of 

giving large basic pay increases or 

awards to high contributors, and the 

effects of withholding either the general 

or merit increase or both of those who 

are low contributors, or in the 

overcompensated range. 

Appendix A: Summary of 

Demonstration Project Features 

Adopted by ONR 

ONR demonstration project features 

(ONR FR Section) Modification Originating lab demo 

Originating FR Notice 

reference 

Flexibilities 

Hiring Authority (Section III.A.–C.) ......... • No substantive changes made ........................................ NRL ................ Pages 33981–33982, 

Section III.A–C. 

Noncitizen Hiring (Section III.D.) ............ • No substantive changes made ........................................ NRL ................ Page 33982, Section 

III.D. 

Expanded Detail Authority (Section 

III.E.).

• No substantive changes made ........................................ NRL ................ Page 33982, Section 

III.E. 

Extended Probationary Period for New 

Employees (Section III.F.).

• No substantive changes made ........................................ NRL ................ Page 33982, Section 

III.F. 

Definitions (Section III.G.) ...................... • No substantive changes made ........................................ NRL ................ Pages 33982–33983, 

Section III.G. 

Pay Setting Determinations Outside 

CCS (Section III.H.).

• Added procedures for Restoration to Duty for deployed 

individuals.

NRL ................ Pages 33983–33984, 

Section III.H. 

Priority Placement Program (Section 

III.I.).

• No substantive changes made ........................................ NRL ................ Page 33984, Section 

III.I. 

Expanded Temporary Promotion (Section III.J.).• No substantive changes made ........................................ NRL ................ Page 33984, Section 

III.J. 

Voluntary Emeritus Program (Section 

III.K.).

• Expanded eligibility for the Voluntary Emeritus Program 

to all retired and separated employees, not just engineers and scientists.

AMRDEC ........ Page 34889, Section 

III.D.2. 

Position Classification (Section IV.A.) .... Adopting three of NRL’s four career tracks/pay plans ........

ONR chooses not to adopt the Science & Engineering 

Technical career track because the types of positions 

that fall into this career track do not exist at ONR.

NRL ................ Pages 33984–33989, 

Section IV.A. 

Integrated Pay Schedule (Section IV.B.) The ARSAE designations will not be adopted but instead 

will be rolled into the new above GS–15 levels initiative 

to be established by DoD.

Position management methods established by the new 

DoD above GS–15 level initiative, rather than the DoD 

40-position limit.

NRL ................ Pages 33989–33991, 

Section IV.B. 

Contribution-based Compensation System (CCS) (Section IV.C.).• Revised critical elements to ensure applicability to ONR 

personnel.

• Described a more general approach for annual budgeting for merit increases, to provide greater flexibility in 

establishing and amending internal procedures.

NRL ................ Pages 33991–34001, 

Section IV.C. 

• Clarified the use of merit increase funds during each 

payout cycle; funds may not be carried over to the next 

payout cycle.

Performance-based Reduction-in-Pay or 

Removal Actions (Section V.A.).

• No substantive changes made ........................................ NRL ................ Page 34001, Section 

V.A 

Reduction-in-Force (RIF) Procedures 

(Section V.B.).

• Amended the CCS RIF assessment categories ..............

• Added a definition for Competition in RIF so employees 

released from retention level will have the right to be 

assigned to another position within the same career 

track/level, or retreat to a previously held position.

NRL ................ Page 34001, Section.V.B. 

Administrative Procedures 

Initial Conversion or Movement to the 

Demonstration Project (Section VI.A.).

• Added procedures for converting employees who are on 

Temporary Promotions.

• Clarified procedures for non-competitive movement into 

the demonstration project (e.g., lateral transfer, reassignment, or realignment).

NRL ................ Page 34003, Section 

VI.A. 

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ONR demonstration project features 

(ONR FR Section) Modification Originating lab demo 

Originating FR Notice 

reference 

CCS Startup (Section VI.B.) ................... • No substantive changes made ........................................ NRL ................ Page 34003, Section 

VI.B. 

Training (Section VI.C.) .......................... • No substantive changes made ........................................ NRL ................ Page 34004, Section 

VI.C. 

New Hires into the Demonstration 

Project (Section VI.D.).

• No substantive changes made ........................................ NRL ................ Page 34004, Section 

VI.D. 

Conversion or Movement from the Demonstration Project (Section VII.E.).• Clarified procedures for setting pay for employees 

whose basic pay exceeds the maximum basic pay of 

the highest GS grade for their career level.

NRL ................ Pages 34004–34005, 

Section VI.E. 

Demonstration Project Duration (Section 

VII.).

• No substantive changes made ........................................ NRL ................ Page 34005, Section 

VII. 

Demonstration Project Evaluation Plan 

(Section VIII.).

• Used standard STRL evaluation language provided by 

DoD; which is virtually identical to NRL’s original section.

NRL ................ Pages 34005–34007, 

Section VIII. 

Cost Containment and Controls (Section 

IX.).

• Described a more general approach to cost discipline, 

to enable ONR to develop internal procedures and 

make modifications over time, as needed.

NRL ................ Pages 34007–34008, 

Section IX. 

Automation Support (Section X.) ........... • No substantive changes made ........................................ NRL ................ Page 34008, Section 

X. 

Appendix B: Required Waivers to Laws 

and Regulations 

Public Law 106–398 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. 

Waivers of Law and Regulation 

Title V, United States Code Title 5, Code of Federal Regulations 

Chapter 31, section 3111: Acceptance of Volunteer Service. Waived to 

allow for a Voluntary Emeritus Program in addition to student volunteers.

Part 300, subpart F, sections 300.601 to 300.605—Time-in-grade Restrictions. Waive in entirety 

Chapter 31, section 3132: The Senior Executive Service: Definitions 

and Exclusions. Waived as necessary to allow for the Pay Band VI 

of the S&E Occupational Family.

Part 300, sections 300.601 through 605: Time-in-grade restrictions. 

Waived to eliminate time-in-grade restrictions in the demonstration 

project. 

Part 308, sections 308.101 through 308.103: Volunteer service. Waived 

to allow for a Voluntary Emeritus Program in addition to student volunteers. 

Part 315, section 315.801(a), 315.801(b)(1), (c), and (e), and 

315.802(a) and (b)(1): Probationary period and Length of probationary period. Waived to the extent necessary to allow for up to a 

three-year probationary period and to permit termination during the 

extended probationary period without using adverse action procedures for those employees serving a probationary period under an 

initial appointment except for those with veterans’ preference. 

Part 315, section 315.901: Statutory requirement. Waived to the extent 

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

Chapter 33, subchapter 1, section 3318(a)–Competitive Service; Selection from Certificate. Waive.Part 332, subpart D, section 332.404—Order of Section of Certificates. 

Waive in entirety. 

Chapter 33, section 3324: Appointments to Positions Classified Above 

GS–15. Waived the requirement for OPM approval of appointments 

to positions classified above GS–15.

Part 335, subpart A, section 335.103(c)(1)(i), (ii)—Agency Promotion 

Program. 

Waive to allow temporary promotions and details to a higher level position without competition. 

Part 335, subpart A, section 335.104—Eligibility for Career Ladder Promotion. Waive in entirety. 

Part 337, subpart A, section 337.101(a)—Rating Applicants. Waive 

when 15 or fewer qualified candidates. 

Chapter 33, subchapter III, section 3341(b) Details—Within Executive 

or Military Departments. Waive in entirety.

Part 351, subpart G, section 351.701—Assignment Involving Displacement. 

(a) Waive to allow minimally successful or equivalent to be defined as 

an employee whose current CCS RIF Assessment Category score is 

12 or better and does not have a current written notification of unacceptable performance. 

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Title V, United States Code Title 5, Code of Federal Regulations 

(b) and (c) Assignment rights (bump and retreat). Waive to the extent 

that the distinction between bump and retreat is eliminated and to 

allow displacement to be limited to the employee’s current career 

track and pay band or, if there are no displacement rights in the employee’s current pay band, to any position previously held in the next 

lower pay band regardless of career track. Preference eligibles may 

displace up to the equivalent of 3 grades or intervals below the highest equivalent grade of their current pay band in the same or different career track regardless of whether they previously held the position provided they are fully qualified and the position is occupied by 

an employee with a lower retention standing. Preference eligibles 

with a compensable service connected disability of 30 percent or 

more may displace an additional 2 GS grades or intervals (total of 5 

grades) below the highest equivalent grade of their current pay band 

provided they previously held the position and the position is occupied by an employee in the same subgroup with a later RIF service 

computation date. 

(d) Limitation. Waive. 

(e)(1) Waive. 

Part 351, subpart B, section 351.403(a) 

Competitive Level. Waive to allow establishing competitive levels consisting of all ONR demo positions in a competitive area, which are in 

the same pay band level and career track, and which are similar 

enough in duties, qualifications, and requirements, including any selective placement factors, pay schedules, and working conditions so 

that the incumbent of one position may be reassigned to any other 

position in the level without undue interruption. 

Part 351.402(b), subpart D: Competitive area. Waived to the extent 

necessary to allow for separate competitive areas for demonstration 

project and non-demonstration project employees. 

Part 351, subpart E, section 351.504—Performance Credit for RIF. 

Waive in entirety. 

Chapter 43, section 4302: Waived to the extent necessary to substitute 

‘‘pay band’’ for ‘‘grade’’.

Part 430, subpart B, section 430.207(b)—Waive to the extent this section requires one or more progress reviews during each appraisal 

period. 

Chapter 43, subchapter I, section 4303—Actions Based on Unacceptable Performance. Waive to allow coverage of ‘‘reduction in pay level 

based on unacceptable performance.’’ Waive to exclude from coverage (procedural and appeal rights) reductions in pay band with no 

reduction in pay, when such actions result from regression of pay 

into a lower pay band through reductions and denials of general increase (‘‘slippage’’). This exclusion will not apply to employees with 

veterans’ preference.

Part 430, subpart B, section 430.210—OPM Responsibilities. Waive in 

entirety. Part 432, section 432.101 to 432.107—Performance Reduction in Grade and Removal Actions. Waive to allow coverage of ‘‘reduction in pay level based on unacceptable performance.’’ Waive to 

exclude from coverage (procedural and appeal rights) reduction in 

pay band with no reduction in pay, when such action results from regression of pay into a lower pay band through reductions and denials of general increase (‘‘slippage’’). This exclusion will not apply to 

employees with veterans’ preference. 

Chapter 43, subpart I, section 4303(f)(3)—Waive to allow exclusion of 

employees in the excepted service who have not completed a trial 

period, except those with veterans’ preference.

Chapter 43, subchapter I, section 4304(b)(1) and (3)—Responsibilities 

of OPM. Waive in entirety.

Chapter 45, subchapter I, section 4502(a) and (b)—Waive to permit 

ONR to approve awards up to $25,000 for individual employees.

Part 451, subpart A, section 451.103(c)(2)—Waive with respect to contribution awards under the ONR CCS. 

Part 451, subpart A, sections 451.106(b) and 451.107(b)—Waive to 

permit ONR to approve awards up to $25,000 for individual employees. 

Chapter 51, sections 5101 to 5113—Classification. Waive in entirety 

except section 5104 to the extent needed to permit classification of 

pay bands and CCS descriptors into logically defined level 

groupings..

Part 511—Classification Under the GS. Waive in entirety with an exception for appeal rights and time constraints under subpart F, sections 511.603, 511.604, and 511.605. 

Chapter 53, subpart I, section 5301—Pay Policy. Waive in entirety .......

Chapter 53, subchapter I, section 5302(8) and (9)—Pay Definition and 

section 5304—Locality-Based Comparability Payments. Waive to the 

extent necessary to allow demonstration project employees to be 

treated as GS employees and basic rates of pay under the demonstration project to be treated as scheduled rates of basic pay. Employees in Pay Band V for the S&E Professional Track to be treated 

as ST employees for the purposes of these provisions.

Chapter 53, subchapter I, section 5303—Annual Adjustments to Pay 

Schedules. Waive in entirety.

Chapter 53, subpart I, section 5303—Special Pay Authority. Waive in 

entirety..

Chapter 53, subchapter III, sections 5331 to 5336—GS Pay Rates. 

Waive in entirety.

Part 520, subpart C—Specialty Salary Rate Schedules. Waive in entirety. 

Part 531, subpart B—Determining Rate of Basic Pay. Waive in entirety. 

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Title V, United States Code Title 5, Code of Federal Regulations 

Part 531, subpart D—Within Grade Increases. Waive in entirety. 

Part 531, subpart E—Quality Step Increases. Waive in entirety. 

Part 531, subpart F—Locality-Based Comparability Payments. Waive to 

the extent necessary to allow the demonstration project employees 

to be treated as GS employees, employees in Pay Band V of the 

S&E Professional Career to be treated as ST employees, and basic 

rates of pay under the demonstration project to be treated as scheduled annual rates of pay. 

Chapter 53, subchapter VI, sections 5361 to 5366—Grade and Pay 

Retention. Waive to entirety.

Part 536—Grade and Pay Retention. Waive in entirety. 

Chapter 55, section 5545 (d)—Hazardous Duty Differential. Waive to 

the extent necessary to allow demonstration project employees to be 

treated as GS employees. This waiver does not apply to employees 

in Pay Band V of the S&E Professional Career Track.

Part 550, subpart G—Severance Pay. 

Waive to the extent necessary to allow ONR to define reasonable offer. 

Part 550, subpart I—Pay for Duty Involving Physical Hardship or Hazard. Waive to the extent necessary to allow demonstration project 

employees to be treated as GS employees. This waiver does not 

apply to employees in Pay Band V of the S&E Professional Career 

Track. 

Chapter 57, subchapter IV, section 5753 to 5755—Recruitment and 

Relocation Bonuses, Retention Allowances, and Supervisory Differential. Waive to the extent necessary to allow (1) employees and 

positions under the demonstration project to be treated as employees and positions under the GS and (2) employees in Level V of the 

S&E Professional career track to be treated as ST employees for 

these purposes.

Part 575, subparts A, B, C, and D—Recruitment and Relocation Bonuses, Retention Allowances, and Supervisory Differential, Waive to 

the extent necessary to allow (1) employees and positions under the 

demonstration project to be treated as employees and positions 

under the GS and (2) employees in Level V of the S&E Professional 

career track to be treated as ST employees for these purposes. 

Chapter 59, subchapter III, section 5924—Cost-of-living Allowances. 

Waive to the extent necessary to provide that COLA’s paid to employees under the demonstration project are paid in accordance with 

regulations prescribed by the President (as delegated to OPM).

Part 591, subpart B—Cost-of-living Allowances and Post Differential— 

non-foreign areas. Waive to the extent necessary to allow demonstration project employees to be treated as GS employees and 

employees in Pay Band V of the S&E Professional Career Track to 

be treated as ST employees. 

Chapter 75, sections 7501(1) and 7511 (a)(1)(A)(ii)—Removal Suspension for More Than 14 Days, Reduction in Grade or Pay, or Furlough. Waived to the extent necessary to allow for up to a three-year 

probationary period and to permit termination during the extended 

probationary period without using adverse action procedures for 

those employees serving a probationary period under an initial appointment except for those with veterans’ preference 

7511(a)(I)(C)(ii)—Waive.

Part 752, sections 752.101, 752.201, 752.301 and 752.401: Principal 

statutory requirements and Coverage. Waived to the extent necessary to allow for up to a three-year probationary period and to permit termination during the extended probationary period without 

using adverse action procedures for those employees serving a probationary period under an initial appointment except for those with 

veterans’ preference. 

Chapter 75, subchapter II, section 7512—Adverse Actions. Waive to 

replace ‘‘grade’’ with ‘‘pay band’’, provide that adverse action provisions do not apply to conversion from General Schedule special 

rates to demonstration project pay, as long as total pay is not reduced; and exclude from coverage (procedural and appeal rights) reductions in pay band with no reduction in pay, when such actions result from regression of pay into a lower pay band through reductions 

or denials of general increase (‘‘slippage’’). This exclusion will not 

apply to employees with veterans’ preference.

Part 752, subpart A—Adverse Actions. Waive to exclude from coverage (procedural and appeal rights) reductions in pay band with no 

reduction in pay, when such actions result from regression of pay 

into a lower pay band through reductions and denials of general increase (‘‘slippage’’). This exclusion will not apply to employees with 

veterans’ preference. 

Part 752, section 752.401(a)(3)—Adverse Actions. Waive to replace 

‘‘grade’’ with ‘‘pay band’’. 

Part 752, section 752.401(a)(4)—Adverse Actions. Waive to provide 

that adverse action provisions do not apply to conversion from General Schedule special rates to demonstration project pay, as long as 

total pay is not reduced. 

Appendix C: Definitions of Career 

Tracks and Pay Bands 

ONR’s career level definitions may be 

modified as experience is gained through 

their application in classification actions and 

performance appraisal. 

Career Track: S&E Professional—Includes professional positions in S&E occupations such as physics, electronics engineering, chemistry, 

and student positions associated with these professions. 

Level I .............. This includes student trainees. The education and employment must be part of a formal student employment program. 

Specific, clear, and detailed instructions and supervision are given to complement education. The level of education 

and experience completed is a major consideration in establishing the level of on-the-job training and work assignments. 

Level II ............. This is the entry or developmental stage, preparing S&E’s for the full and independent performance of their work. S&E’s 

at this level perform supporting work in science or engineering requiring professional training but little experience, 

and conduct activities with objectives and priorities identified by supervisor or team leader. Assistance is given on 

new or unusual projects; completed work is reviewed for technical soundness. 

Level III ............ This is the advanced developmental pay band of this career track. S&Es at this level conceive and define solutions to 

technical problems of moderate complexity; plan, analyze, interpret, and report findings of projects; and guide technical and programmatic work of a program’s research efforts. Completed work and reports are reviewed to evaluate 

overall results. 

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Level IV ............ S&E’s at this level are authorities within their professional areas or key program administrators. They direct technical activities or assist higher levels on challenging and innovative projects or technical program development with only general guidance on policy, resources and planning; develop solutions to complex problems requiring various disciplines; 

responsible for fulfilling program objectives. 

Level V ............. S&Es at this level are renowned experts in their fields. They independently define and lead most challenging technical 

programs consistent with general guidance and/or independently direct overall R&D program managerial and/or supervisory aspects; conceive and develop elegant solutions to very difficult problems requiring highly specialized areas of 

technical expertise; are recognized within DoD and other agencies for broad technical area expertise and have established professional reputation in technical community nationally and internationally. The primary requirement for 

Level V positions is the knowledge of and expertise in specific scientific and technology areas related to the mission 

of their organization. However, the ability to manage and/or supervise R&D operations or programs is also considered 

a necessity. They may direct the work of an organizational unit; may be held accountable for the success of one or 

more specific programs or projects; monitor progress toward organizational goals and periodically evaluate and make 

appropriate adjustments to such goals; supervise the work of employees; or otherwise exercise important policy-making, policy-determining, or other managerial functions. 

Career Track: Administrative Specialist and Professional—Professional and specialist positions in areas such as the following: safety and 

health, personnel, finance, budget, procurement, librarianship, legal, business, facilities management and student positions associated 

with these professions. 

Level I .............. Includes student trainees. The education and employment must be part of a formal student employment program. Specific, clear, and detailed instructions and supervision are given to complement education. The level of education and 

experience completed is a major consideration in establishing the level of on-the-job training and work assignments. 

Level II ............. This is the developmental stage preparing Administrative Specialists and Professionals for the full and independent performance of their work. Specific, clear and detailed instruction and supervision are given upon entry; recurring assignments are carried out independently. Situations not covered by instructions are referred to supervisor. Finished work 

is reviewed to ensure accuracy. 

Level III ............ This is the advanced developmental career level of this career track. Employees at this level plan and carry out assignments independently, resolve conflicts that arise, coordinate work with others and interpret policy on own initiative. 

Completed work is reviewed for feasibility, compatibility with other work or effectiveness in meeting requirements or 

expected results. 

Level IV ............ At this level, Administrative Specialists and Professionals are authorities within their professional areas or key program 

administrators or supervisors. They conduct or direct activities in an administrative and professional area with only 

general guidance on policy, resources and planning; develop solutions to complex problems requiring various disciplines; and are responsible for fulfilling program objectives. 

Level V ............. Administrative Specialists and Professionals at this level are experts within their broad administrative area or professional field who serve as leaders, heads of branches or divisions, or key program administrators. They receive general 

guidance on policy, resources and planning that have an effect on public policies or programs; and are responsible for 

fulfilling program objectives. Results are authoritative and affect administrative programs or the well-being of substantial numbers of people. 

Career Track: Administrative Support—Includes clerical, secretarial and assistant work in nonscientific and engineering occupations. 

Level I .............. This includes student trainees as well as advanced entry level which requires a fundamental knowledge of a clerical or 

administrative field. Developmental assignments may be given which lead to duties at a higher group level. Performs 

repetitive tasks, specific, clear and detailed instruction and supervision; with more experience utilizes knowledge of 

standardized procedures and operations, assistance is given on new or unusual projects. Completed work is reviewed 

for technical soundness. 

Level II ............. This level requires knowledge of standardized rules, procedures or operations requiring considerable training. General 

guidance is received on overall objectives and resources. Completed assignments may be reviewed for overall soundness or meeting expected results. 

Level III ............ This is the senior level which requires expert knowledge of procedures and operations, which is gained through extensive training. Employees at this level receive general guidance on overall resources and objectives, and are skilled in 

applying knowledge of basic principles, concepts, and methodology of profession or administrative occupation and 

technical methods. Results are accepted as authoritative and are normally accepted without significant change. 

Appendix D: Table of Occupational 

Series Within Career Tracks 

Definitions for ONR’s three career tracks 

are provided below along with the 

breakdown of their respective series. Some 

series may appear in two career tracks 

depending on the purpose of the position. 

The breakdown of occupational series 

reflects only those occupations that currently 

exist in ONR. Additional series may be added 

as a result of changes in mission 

requirements or OPM-recognized 

occupations. These additional series will be 

placed in the appropriate career track 

consistent with the definitions provided 

below. 

S&E Professional Career Track: Includes professional positions in S&E occupations such as physics, electronics, engineering, chemistry, 

and student positions associated with these professions. 

0180—Psychology Series. 0855—Electronics Engineering Series. 

0190—General Anthropology Series. 0861—Aerospace Engineering Series. 

0335—Computer Clerk & Assistant. 0871—Naval Architecture Series. 

0401—General Natural Resources Management and Biological 

Sciences Series. 

0854—Computer Engineering Series. 

0403—Microbiology Series. 0893—Chemical Engineering Series. 

0405—Pharmacology Series. 0896—Industrial Engineering Series. 

0413—Physiology Series. 1301—General Physical Sciences Series. 

0440—Genetics Series. 1310—Physics Series. 

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0601—General Health Science Series. 1313—Geophysics Series. 

0602—Medical Officer Series. 1320—Chemistry Series. 

0801—General Engineering Series. 1321—Metallurgy Series. 

0802—Engineering Technical Series. 1340—Meteorology Series. 

0806—Materials Engineering Series. 1360—Oceanography Series. 

0810—Civil Engineering Series. 1515—Operations Research Series. 

0830—Mechanical Engineering Series. 1520—Mathematics Series. 

0840—Nuclear Engineering Series. 1530—Statistics Series. 

0850—Electrical Engineering Series. 1550—Computer Science Series. 

Administrative Specialist and Professional Career Track: Professional and specialist positions in areas such as the following: Safety and 

health, finance, budget, procurement, librarianship, legal, business, facilities management, and student positions associated with these 

professions. 

0080—Security Administration Series. 0905—General Attorney Series. 

0110—Economist Series. 0950—Paralegal Specialist Series. 

0201—Human Resource Management Series. 1035—Public Affairs Series. 

0260—Equal Employment Opportunity Series. 1084—Visual Information Series. 

0301—Miscellaneous Administration and Program Series. 1101—General Business and Industry Series. 

0340—Program Management Series. 1102—Contracting Series. 

0341—Administrative Officer Series. 1150—Industrial Specialist Series. 

0343—Management and Program Analysis Series. 1222—Patent Attorney Series. 

0391—Telecommunications Series. 1412—Technical Information Services Series. 

0501—Financial Administration and Program Series. 1720—Education Specialist Series. 

0505—Financial Management Series. 1801—General Inspection, Investigation, and Compliance Series. 

0510—Accounting Series. 2210—Information Technology Management. 

0560—Budget Analysis Series. 

Administrative Support: Includes clerical, secretarial, and assistant work in nonscientific and engineering occupations. 

0086—Security Clerical and Assistance Series. 0335—Computer Clerk and Assistant Series. 

0203—Human Resource Assistance Series. 0503—Financial Clerical and Assistance Series. 

0303—Miscellaneous Clerk and Assistant Series. 0525—Accounting Technician Series. 

0305—Mail and File Series. 0561—Budget Clerical and Assistance Series. 

0318—Secretary Series. 0986—Legal Assistance Series. 

0326—Office Automation and Clerical Assistance Series. 

Appendix E: Classification and CCS 

Elements 

The CCS Summaries shown in this 

appendix are draft templates intended to 

provide an understanding of the information 

covered by the CCS process. Under the 

demonstration project, the summaries will be 

generated by the CCSDS. They may be 

changed during the project to require 

additional information, to make them easier 

to use, or for other reasons. 

The contents of the CCS elements, 

descriptors, discriminators, and basic 

acceptable standards may similarly be 

changed during the life of the demonstration 

project. 

OFFICE OF NAVAL RESEARCH CONTRIBUTION-BASED COMPENSATION SYSTEM (CCS) SUMMARY

[Science & Engineering Professional] 

Employee Name: Pay Pool Code: Appraisal Period Ending: 

Click here to enter text. Click here to enter text. Click here to enter text. 

Title: Pay Plan/Series: Career Level: 

Click here to enter text. Click here to enter text. Click here to enter text. 

SSN: Click here to enter text Supervisor: Click here to enter text 

Most Recent OCS: Click here to enter text. 

Present Salary: Click here to enter text. 

Scores within NPR Equivalent to Present 

Salary: Click here to enter text. 

Critical Elements * Weight Score Net Score Rating of Record Acceptable or Unacceptable 

1. Scientific and Technical Leadership Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. 

2. Program Execution 

and Liaison 

Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. 

3. Cooperation and Supervision Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. 

* If zero, then element not applicable. 

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Basic Pay Increase %: Click here to enter text. 

Contribution Award $: Click here to enter 

text. 

Hours Click here to enter text. 

Summary Rating A (Acceptable) or U 

(Unacceptable) 

Must be U if any critical element is rated U 

Click here to enter text. 

Overall Contribution Score (Weighted 

Average): Click here to enter text. 

SUPPLEMENTAL CRITERIA (OPTIONAL). 

FOR EXAMPLE, SPECIFIC OBJECTIVES, 

STANDARDS, TASKINGS, AND/OR 

EXAMPLES: 

REMARKS: 

Signatures and Date CCS Plan Interim Review Appraisal 

Employee 

Supervisor 

NOTE: Employee’s signature under ‘‘CCS Plan’’ signifies that he or she has been given a copy of this summary and has a copy of Elements, 

Descriptors, Discriminators, and Standards applicable to his or her career track. 

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OFFICE OF NAVAL RESEARCH CONTRIBUTION-BASED COMPENSATION SYSTEM (CCS) SUMMARY

[Administrative Specialist and Professional] 

Employee Name: Pay Pool Code: Appraisal Period Ending: 

Click here to enter text. Click here to enter text. Click here to enter text. 

Title: Pay Plan/Series: Career Level: 

Click here to enter text. Click here to enter text. Click here to enter text. 

SSN: Click here to enter text. Supervisor: Click here to enter text. 

Most Recent OCS: Click here to enter text. 

Present Salary: Click here to enter text. 

Scores within NPR Equivalent to Present 

Salary: Click here to enter text. 

Critical elements * Weight Score Net score Rating of record acceptable or unacceptable 

1. Problem Solving and 

Leadership 

Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. 


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Critical elements * Weight Score Net score Rating of record acceptable or unacceptable 

2. Cooperation and Customer Relations Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. 

3. Supervision and Resources Management Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. 

* If zero, then element not applicable. 

Basic Pay Increase %: Click here to enter text. 

Contribution Award $: Click here to enter 

text. 

Hours: Click here to enter text. 

Summary Rating A (Acceptable) or U 

(Unacceptable) 

Must be U if any critical element is rated U 

Click here to enter text. 

Overall Contribution Score (Weighted 

Average): Click here to enter text. 

SUPLEMENTAL CRITERIA (OPTIONAL). 

FOR EXAMPLE, SPECIFIC OBJECTIVES, 

STANDARDS, TASKINGS, AND/OR 

EXAMPLES: 

REMARKS: 

Signatures and date CCS plan Interim review Appraisal 

Employee 

Supervisor 

Note: Employee’s signature under ‘‘CCS Plan’’ signifies that he or she has been given a copy of this summary and has a copy of Elements, 

Descriptors, Discriminators, and Standards applicable to his or her career track. 

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OFFICE OF NAVAL RESEARCH CONTRIBUTION-BASED COMPENSATION SYSTEM (CCS) SUMMARY 

[Administrative Support] 

Employee Name: Pay Pool Code: Appraisal Period Ending: 

Click here to enter text. Click here to enter text. Click here to enter text. 

Title: Pay Plan/Series: Career Level: 

Click here to enter text. Click here to enter text. Click here to enter text. 

SSN; Click here to enter text. Supervisor: Click here to enter text. 

Most Recent OCS: Click here to enter text. 

Present Salary: Click here to enter text. 

Scores within NPR Equivalent to Present 

Salary: Click here to enter text. 


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Critical Elements * Weight Score Net Score 

Rating of Record 

Acceptable or Unacceptable 

1. Problem Solving Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. 

2. Cooperation/Customer 

Relations/Supervision 

Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. 

* If zero, then element not applicable. 

Basic Pay Increase %: Click here to enter text. 

Contribution Award $: Click here to enter 

text. 

Hours: Click here to enter text. 

Summary Rating A (Acceptable) or U 

(Unacceptable) 

Must be U if any critical element is rated U 

Click here to enter text. 

Overall Contribution Score (Weighted 

Average): 

Click here to enter text. 

SUPPLEMENTAL CRITERIA (OPTIONAL). 

FOR EXAMPLE, SPECIFIC OBJECTIVES, 

STANDARDS, TASKINGS, AND/OR 

EXAMPLES: 

REMARKS: 

Signatures and Date CCS Plan Interim Review Appraisal 

Employee 

Supervisor 

NOTE: Employee’s signature under ‘‘CCS Plan’’ signifies that he or she has been given a copy of this summary and has a copy of Elements, 

Descriptors, Discriminators, and Standards applicable to his or her career track. 

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Appendix F: Computation of the IPS 

and the NPR 

The ONR demonstration project will use an 

IPS which links basic pay to contribution 

scores determined by the CCS process. The 

area where basic pay and level of 

contribution are assumed to be properly 

related is called the NPR. An employee 

whose CCS score and rate of basic pay plot 

within the NPR is considered to be 

contributing at a level consistent with pay. 

Employees whose pay plots below the NPR 

for their assessed score are considered 

‘‘undercompensated’’ while employees whose 

score and pay plot above the NPR are 

considered ‘‘overcompensated.’’ 

The purpose of this scoring and pay 

structure is to spread the full range of basic 

pay provided by the GS, between GS–1, step 

1, and GS–15, step 10, into 80 intervals 

(scores and pay above those points are 

related using the same parameters). Each 

interval is a fixed percentage of the pay 

associated with the previous point. 

For each possible contribution score 

available to employees, the NPR spans a 

basic pay range of 12 percent. The lower 

boundary (or ‘‘rail’’) is established by fixing 

the basic pay equivalent to GS–1, step 1, with 

a CCS score of zero. The upper boundary is 

fixed at the basic pay equivalent to GS–15, 

step 10, with a CCS score of 80. The distance 

between these upper and lower rails for a 

given overall contribution score is then 

computed to ensure the range of 12 percent 

of basic pay is maintained for each available 

CCS score. The middle rail of the NPR is 

computed as 6 percent above the lower rail. 

This point is used in connection with certain 

limits established for pay increases (see 

section IV.C.7). 

From the above considerations, five 

variables, or inputs, were identified. They are 

as follows: 

1. Variable A: GS–1, step 1 (lowest salary). 

2. Variable B: GS–15, step 10 (highest 

salary). 

3. Variable C: Current C-values. 

4. Variable M: 6 percent (middle rail 

computation above the low rail). 

5. Variable H: 12 percent (high rail 

computation above low rail). 

Other variables are as follows: 

1. Variable N: Number of C-value steps at 

GS–15, step 10. 

2. Variable P (step increase): Salary value 

for each C-value equal to 1 + percentage 

increase. 

From these variables, the following 

formula definitions were developed: 

Low rail = A*(P∧C) 

Mid rail = (1+M)*A*(P∧C) 


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High rail = (1+H)*A*(P∧C) 

Where P = (B/(A*(1+H)))∧(1/N) 

As an example, a result of the above 

computation, using the 2010 GS Salary Table, 

P (step increase) equals 1.023664623. 

Attachment (1) is a complete list of CCS pay 

band scores and basic pay ranges. 

Attachment (2) contains graphic 

representations of these tables for each career 

track. Once the C-values (0–80) are 

determined, the CCS pay bands and scores 

are extended at the same percentage 

increments as were computed for the step 

increase above. These C-values are extended 

to encompass the equivalent of EX–IV 

effective January 2010. In the example, EX– 

IV is equal to basic pay of $155,500 and is 

encompassed by the C-value 89 ($142,734 to 

$159,862). 

SALARY RANGES ASSOCIATED WITH EACH C–VALUE USING 2010 INPUTS

[GS 1–Step 1: 17,803 Hi%: 12.00% #C–values: 80 GS 15–Step 10: 129,517 Mid%: 6.00%] 

C–value Low Rail Mid Rail High Rail C–value Low Rail Mid Rail High Rail 

0 ................................... 17803 18871 19939 48 54709 57992 61275 

1 ................................... 18224 19318 20411 49 56004 59364 62725 

2 ................................... 18656 19775 20894 50 57329 60769 64209 

3 ................................... 19097 20243 21389 51 58686 62207 65728 

4 ................................... 19549 20722 21895 52 60075 63679 67284 

5 ................................... 20012 21212 22413 53 61497 65186 68876 

6 ................................... 20485 21714 22943 54 62952 66729 70506 

7 ................................... 20970 22228 23486 55 64442 68308 72175 

8 ................................... 21466 22754 24042 56 65967 69925 73883 

9 ................................... 21974 23293 24611 57 67528 71579 75631 

10 ................................. 22494 23844 25193 58 69126 73273 77421 

11 ................................. 23026 24408 25790 59 70762 75007 79253 

12 ................................. 23571 24986 26400 60 72436 76782 81128 

13 ................................. 24129 25577 27025 61 74150 78599 83048 

14 ................................. 24700 26182 27664 62 75905 80459 85014 

15 ................................. 25285 26802 28319 63 77701 82363 87025 

16 ................................. 25883 27436 28989 64 79540 84312 89085 

17 ................................. 26496 28085 29675 65 81422 86308 91193 

18 ................................. 27123 28750 30377 66 83349 88350 93351 

19 ................................. 27764 29430 31096 67 85322 90441 95560 

20 ................................. 28422 30127 31832 68 87341 92581 97822 

21 ................................. 29094 30840 32585 69 89408 94772 100136 

22 ................................. 29783 31570 33357 70 91523 97015 102506 

23 ................................. 30487 32317 34146 71 93689 99311 104932 

24 ................................. 31209 33081 34954 72 95906 101661 107415 

25 ................................. 31947 33864 35781 73 98176 104066 109957 

26 ................................. 32703 34666 36628 74 100499 106529 112559 

27 ................................. 33477 35486 37495 75 102877 109050 115223 

28 ................................. 34270 36326 38382 76 105312 111631 117949 

29 ................................. 35081 37185 39290 77 107804 114272 120741 

30 ................................. 35911 38065 40220 78 110355 116977 123598 

31 ................................. 36761 38966 41172 79 112967 119745 126523 

32 ................................. 37630 39888 42146 80 115640 122579 129517 

33 ................................. 38521 40832 43143 81 118377 125479 132582 

34 ................................. 39433 41798 44164 82 121178 128449 135719 

35 ................................. 40366 42788 45210 83 124046 131488 138931 

36 ................................. 41321 43800 46279 84 126981 134600 142219 

37 ................................. 42299 44837 47375 85 129986 137785 145585 

38 ................................. 43300 45898 48496 86 133062 141046 149030 

39 ................................. 44324 46984 49643 87 136211 144384 152556 

40 ................................. 45373 48096 50818 88 139435 147801 156167 

41 ................................. 46447 49234 52021 89 142734 151298 159862 

42 ................................. 47546 50399 53252 90 146112 154879 163645 

43 ................................. 48671 51592 54512 91 149570 158544 167518 

44 ................................. 49823 52813 55802 92 153109 162296 171482 

45 ................................. 51002 54062 57123 

46 ................................. 52209 55342 58474 

47 ................................. 53445 56651 59858 

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Appendix G: Intervention Model 

Intervention Expected effects Measures Data sources 

1. COMPENSATION 

a. Pay banding ............................... Increased organizational flexibility Perceived flexibility ....................... Attitude survey. 

Reduced administrative workload, 

paper work reduction.

Actual/perceived time savings ...... Personnel office data, PME results, attitude survey. 

Advanced in-hire rates ................. Starting salaries of banded v. 

non-banded employees.

Workforce data. 

Slower pay progression at entry 

levels.

Progression of new hires over 

time by band, career path.

Workforce data. 

Increased pay potential ................ Mean salaries by band, group, 

demographics.

Workforce data. 

Total payroll costs ........................ Personnel office data. 

Increased satisfaction with advancement.Employee perceptions of advancement.Attitude survey. 

Increased pay satisfaction ............ Pay satisfaction, internal/external 

equity.

Attitude survey. 

Improved recruitment .................... Offer/acceptance ratios; Percent 

declinations.

Personnel office data. 

b. Conversion buy-in ...................... Employee acceptance .................. Employee perceptions of equity, 

fairness.

Attitude survey. 

Cost as a percent of payroll ......... Workforce data. 

c. Pay differentials/adjustments ..... Increased incentive to accept supervisory/team leader positions.Perceived motivational power ...... Attitude survey. 

2. PERFORMANCE MANAGEMENT 

a. Cash awards/bonuses ............... Reward/motivate performance ..... Perceived motivational power ...... Attitude survey. 

To support fair and appropriate 

distribution of awards.

Amount and number of awards by 

group, demographics.

Workforce data. 

Perceived fairness of awards ....... Attitude survey. 

Satisfaction with monetary awards Attitude survey. 

b. Performance based pay progression.Increased pay-performance link ... Perceived pay-performance link ... Attitude survey. 

Perceived fairness of ratings ........ Attitude survey. 

Improved performance feedback .. Satisfaction with ratings ................ Attitude survey. 

Employee trust in supervisors ...... Attitude survey. 

Adequacy of performance feedback.Attitude survey. 

Decreased turnover of high performers/Increased turnover of 

low performers.

Turnover by performance rating 

scores.

Workforce data. 

Differential pay progression of 

high/low performers.

Pay progression by performance 

scores, career path.

Workforce data. 

Alignment of organizational and 

individual performance objectives and results.

Linkage of performance objectives 

to strategic plans/goals.

Performance objectives, strategic 

plans. 

Increased employee involvement 

in performance planning and 

assessment.

Perceived involvement ................. Attitude survey/focus groups. 

Performance management ........... Personnel regulations. 

c. New appraisal process .............. Reduced administrative burden .... Employee and supervisor perceptions of revised procedures.Attitude survey. 

Improved communication ............. Perceived fairness of process ...... Focus groups. 

d. Performance development ......... Better communication of performance expectations.Feedback and coaching procedures used.Focus groups. 

Personnel office data. 

Time, funds spent on training by 

demographics.

Training records. 

Improved satisfaction and quality 

of workforce.

Perceived workforce quality ......... Attitude survey. 

3. ‘‘WHITE COLLAR’’ CLASSIFICATION 

a. Improved classification systems 

with generic standards.

Reduction in amount of time and 

paperwork spent on classification.

Time spent on classification procedures.Personnel office data. 

Reduction of paperwork/number 

of personnel actions (classification/promotion).

Personnel office data. 

Ease of use .................................. Managers’ perceptions of time 

savings, ease of use.

Attitude survey. 

b. Classification authority delegated to managers.Increased supervisory authority/ 

accountability.

Perceived authority ....................... Attitude survey. 

Decreased conflict between management and personnel staff.Number of classification disputes/ 

appeals pre/post.

Personnel records. 

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Intervention Expected effects Measures Data sources 

Management satisfaction with 

service provided by personnel 

office.

Attitude survey. 

No negative impact on internal 

pay equity.

Internal pay equity ........................ Attitude survey. 

c. Dual career ladder ..................... Increased flexibility to assign employees.Assignment flexibility .................... Focus groups, surveys. 

Improved internal mobility ............ Perceived internal mobility ........... Attitude survey. 

Increased pay equity .................... Perceived pay equity .................... Attitude survey. 

Flatter organization ....................... Supervisory/non-supervisory ratios.Workforce data. 

Attitude survey. 

Improved quality of supervisory 

staff.

Employee perceptions of quality 

or supervisory.

Attitude survey. 

4. Modified RIF 

Minimize loss of high performing 

employees with needed skills.

Separated employees by demographics, performance scores.Workforce data, Attitude survey/ 

focus group. 

Contain cost and disruption .......... Satisfaction with RIF Process ...... Attitude survey/focus group. 

Cost comparison of traditional vs. 

Modified RIF.

Personnel office/budget data. 

Time to conduct RIF—personnel 

office data.

Personnel office data. 

Number of Appeals/reinstatements.Personnel office data. 

5. Hiring Authority 

a. Delegated Examining ................ Improved ease and timeliness of 

hiring process.

Perceived flexibility in authority to 

hire.

Attitude survey. 

Improved recruitment of employees in shortage categories.Offer/accept ratios ........................ Personnel office data. 

Percent declinations ..................... Personnel office data. 

Timeliness of job offers ................ Personnel office data. 

GPAs of new hires, educational 

levels.

Personnel office data. 

Reduced administrative workload/ 

paperwork reduction.

Actual/perceived skills .................. Attitude survey. 

b. Term Appointment Authority ...... Increased capability to expand 

and contract workforce.

Number/percentage of conversions from modified term to permanent appointments.Workforce data. 

Personnel office data. 

c. Flexible Probationary Period ...... Expanded employee assessment Average conversion period to permanent status.Workforce data. 

Personnel office data. 

Number/percentage of employees 

completing probationary period.

Workforce data. 

Personnel office data. 

Number of separations during 

probationary period.

Workforce data. 

Personnel office data. 

6. Expanded Development Opportunities 

a. Sabbaticals ................................ Expanded range of professional 

growth and development.

Number and type of opportunities 

taken.

Workforce data. 

Application of enhanced knowledge and skills to work product.Employee and supervisor perceptions.Attitude survey. 

b. Critical Skills Training ................ Improved organizational effectiveness.Number and type of training ......... Personnel office data 

Placement of employees, skills 

imbalances corrected.

Personnel office data 

Employee and supervisor perceptions.Attitude survey 

Application of knowledge gained 

from training.

Attitude survey/focus group. 

7. Combination of All Interventions 

All ................................................... Improved organizational effectiveness.Combination of personnel measures.All data sources. 

Improved management of workforce.Employee/Management job satisfaction (intrinsic/extrinsic).Attitude survey. 

Improved planning ........................ Planning procedures ..................... Strategic planning documents. 

Perceived effectiveness of planning procedures.Attitude survey. 

Improved cross functional coordination.Actual/perceived coordination ...... Organizational charts. 

Increased product success ........... Customer satisfaction ................... Customer satisfaction surveys. 

Cost of innovation ......................... Project training/development costs 

(staff salaries, contract cost, 

training hours per employee).

Demo project office records. 

Contract documents. 

8. Context: 

Regionalization .............................. Reduced servicing ratios/costs ..... HR servicing ratios ....................... Personnel office data, workforce 

data. 

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Intervention Expected effects Measures Data sources 

Average cost per employee 

served.

Personnel office data, workforce 

data. 

No negative impact on service 

quality.

Service quality, timeliness ............ Attitude survey/focus groups. 

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