171 
serve as Federal employees engaged in 
cyber missions; and 
(ii) that provide internship and part- 
time work opportunities with the Federal 
Government for students at the under-
graduate, graduate, vocational, and tech-
nical institutions in the United States. 
(c) CYBER
TALENT
COMPETITIONS
AND
CHAL-
LENGES.— 
(1) IN GENERAL.—The Director of the National 
Center for Cybersecurity and Communications shall 
establish a program to ensure the effective operation 
of national and statewide competitions and chal-
lenges that seek to identify, develop, and recruit tal-
ented individuals to work in Federal agencies, State 
and local government agencies, and the private sec-
tor to perform duties relating to the security of the 
Federal information infrastructure or the national 
information infrastructure. 
(2) GROUPS AND INDIVIDUALS.—The program 
under this subsection shall include— 
(A) high school students; 
(B) undergraduate students; 
(C) graduate students; 
(D) academic and research institutions; 
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172 
(E) veterans; and 
(F) other groups or individuals as the Di-
rector may determine. 
(3) SUPPORT
OF
OTHER
COMPETITIONS
AND 
CHALLENGES.—The program under this subsection 
may support other competitions and challenges not 
established under this subsection through affiliation 
and cooperative agreements with— 
(A) Federal agencies; 
(B) regional, State, or community school 
programs supporting the development of cyber 
professionals; or 
(C) other private sector organizations. 
(4) AREAS OF TALENT.—The program under 
this subsection shall seek to identify, develop, and 
recruit exceptional talent relating to— 
(A) ethical hacking; 
(B) penetration testing; 
(C) vulnerability assessment; 
(D) continuity of system operations; 
(E) cyber forensics; and 
(F) offensive and defensive cyber oper-
ations. 
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173 
SEC. 407. CYBERSECURITY INCENTIVES. 
(a) AWARDS.—In making cash awards under chapter 
45 of title 5, United States Code, the President or the 
head of a Federal agency, in consultation with the Direc-
tor, shall consider the success of an employee in fulfilling 
the objectives of the National Strategy, in a manner con-
sistent with any policies, guidelines, procedures, instruc-
tions, or standards established by the President. 
(b) OTHER INCENTIVES.—The head of each Federal 
agency shall adopt best practices, developed by the Direc-
tor of the National Center for Cybersecurity and Commu-
nications and the Office of Management and Budget, re-
garding effective ways to educate and motivate employees 
of the Federal Government to demonstrate leadership in 
cybersecurity, including— 
(1) promotions and other nonmonetary awards; 
and 
(2) publicizing information sharing accomplish-
ments by individual employees and, if appropriate, 
the tangible benefits that resulted. 
SEC. 408. RECRUITMENT AND RETENTION PROGRAM FOR 
THE NATIONAL CENTER FOR CYBERSECU-
RITY AND COMMUNICATIONS. 
(a) DEFINITIONS.—In this section: 
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(1) CENTER.—The term ‘‘Center’’ means the 
National Center for Cybersecurity and Communica-
tions. 
(2) DEPARTMENT.—The term ‘‘Department’’ 
means the Department of Homeland Security. 
(3) DIRECTOR.—The term ‘‘Director’’ means 
the Director of the Center. 
(4) ENTRY LEVEL POSITION.—The term ‘‘entry 
level position’’ means a position that— 
(A) is established by the Director in the 
Center; and 
(B) is classified at GS–7, GS–8, or GS–9 
of the General Schedule. 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Homeland Security. 
(6) SENIOR POSITION.—The term ‘‘senior posi-
tion’’ means a position that— 
(A) is established by the Director in the 
Center; and 
(B) is not established under section 5108 
of title 5, United States Code, but is similar in 
duties and responsibilities for positions estab-
lished under that section. 
(b) RECRUITMENT AND RETENTION PROGRAM.— 
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(1) ESTABLISHMENT.—The Director may es-
tablish a program to assist in the recruitment and 
retention of highly skilled personnel to carry out the 
functions of the Center. 
(2) CONSULTATION AND CONSIDERATIONS.—In 
establishing a program under this section, the Direc-
tor shall— 
(A) consult with the Secretary; and 
(B) consider— 
(i) national and local employment 
trends; 
(ii) the availability and quality of can-
didates; 
(iii) any specialized education or cer-
tifications required for positions; 
(iv) whether there is a shortage of 
certain skills; and 
(v) such other factors as the Director 
determines appropriate. 
(c) HIRING AND SPECIAL PAY AUTHORITIES.— 
(1) DIRECT HIRE AUTHORITY.—Without regard 
to the civil service laws (other than sections 3303 
and 3328 of title 5, United States Code), the Direc-
tor may appoint not more than 500 employees under 
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pay payable under section 5376 of title 5, 
United States Code. 
(ii) HIGHER MAXIMUM RATES.— 
(I) 
IN
GENERAL.—Notwith-
standing the limitation on rates of pay 
under clause (i)— 
(aa) not more than 20 em-
ployees, identified by the Direc-
tor, may be paid at a rate of pay 
not to exceed the maximum rate 
of basic pay payable for a posi-
tion at level I of the Executive 
Schedule under section 5312 of 
title 5, United States Code; and 
(bb) not more than 5 em-
ployees, identified by the Director 
with the approval of the Sec-
retary, may be paid at a rate of 
pay not to exceed the maximum 
rate of basic pay payable for the 
Vice President under section 104 
of title 3, United States Code. 
(II) NONDELEGATION
OF
AU-
THORITY.—The Secretary or the Di-
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rector may not delegate any authority 
under this clause. 
(d) CONVERSION TO COMPETITIVE SERVICE.— 
(1) DEFINITION.—In this subsection, the term 
‘‘qualified employee’’ means any individual appointed 
to an excepted service position in the Department 
who performs functions relating to the security of 
the Federal information infrastructure or national 
information infrastructure. 
(2) COMPETITIVE CIVIL SERVICE STATUS.—In 
consultation with the Director, the Secretary may 
grant competitive civil service status to a qualified 
employee if that employee is— 
(A) employed in the Center; or 
(B) transferring to the Center. 
(e) RETENTION BONUSES.— 
(1) 
AUTHORITY.—Notwithstanding 
section 
5754 of title 5, United States Code, the Director 
may— 
(A) pay a retention bonus under that sec-
tion to any individual appointed under this sub-
section, if the Director determines that, in the 
absence of a retention bonus, there is a high 
risk that the individual would likely leave em-
ployment with the Department; and 
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179 
(B) exercise the authorities of the Office of 
Personnel Management and the head of an 
agency under that section with respect to reten-
tion bonuses paid under this subsection. 
(2) LIMITATIONS ON AMOUNT OF ANNUAL BO-
NUSES.— 
(A) DEFINITIONS.—In this paragraph: 
(i) MAXIMUM TOTAL PAY.—The term 
‘‘maximum total pay’’ means— 
(I) in the case of an employee de-
scribed under subsection (c)(2)(B)(i), 
the total amount of pay paid in a cal-
endar year at the maximum rate of 
basic pay payable for a position at 
level I of the Executive Schedule 
under section 5312 of title 5, United 
States Code; 
(II) in the case of an employee 
described 
under 
subsection 
(c)(2)(B)(ii)(I)(aa), the total amount 
of pay paid in a calendar year at the 
maximum rate of basic pay payable 
for a position at level I of the Execu-
tive Schedule under section 5312 of 
title 5, United States Code; and 
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(III) in the case of an employee 
described 
under 
subsection 
(c)(2)(B)(ii)(I)(bb), the total amount 
of pay paid in a calendar year at the 
maximum rate of basic pay payable 
for the Vice President under section 
104 of title 3, United States Code. 
(ii) 
TOTAL
COMPENSATION.—The 
term ‘‘total compensation’’ means— 
(I) the amount of pay paid to an 
employee in any calendar year; and 
(II) the amount of all retention 
bonuses paid to an employee in any 
calendar year. 
(B) LIMITATION.—The Director may not 
pay a retention bonus under this subsection to 
an employee that would result in the total com-
pensation of that employee exceeding maximum 
total pay. 
(f) TERMINATION OF AUTHORITY.—The authority to 
make appointments and pay retention bonuses under this 
section shall terminate 3 years after the date of enactment 
of this Act. 
(g) REPORTS.— 
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(1) PLAN FOR EXECUTION OF AUTHORITIES.— 
Not later than 120 days of enactment of this Act, 
the Director shall submit a report to the appropriate 
committees of Congress with a plan for the execu-
tion of the authorities provided under this section. 
(2) ANNUAL
REPORT.—Not later than 6 
months after the date of enactment of this Act, and 
every year thereafter, the Director shall submit to 
the appropriate committees of Congress a detailed 
report that— 
(A) discusses how the actions taken during 
the period of the report are fulfilling the critical 
hiring needs of the Center; 
(B) assesses metrics relating to individuals 
hired under the authority of this section, includ-
ing— 
(i) the numbers of individuals hired; 
(ii) the turnover in relevant positions; 
(iii) with respect to each individual 
hired— 
(I) the position for which hired; 
(II) the salary paid; 
(III) any retention bonus paid 
and the amount of the bonus; 
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182 
(IV) the geographic location from 
which hired; 
(V) the immediate past salary; 
and 
(VI) whether the individual was a 
noncareer appointee in the Senior Ex-
ecutive Service or an appointee to a 
position of a confidential or policy-de-
termining character under schedule C 
of subpart C of part 213 of title 5 of 
the Code of Federal Regulations be-
fore the hiring; and 
(iv) whether public notice for recruit-
ment was made, and if so— 
(I) the total number of qualified 
applicants; 
(II) the number of veteran pref-
erence eligible candidates who applied; 
(III) the time from posting to job 
offer; and 
(IV) statistics on diversity, in-
cluding age, disability, race, gender, 
and national origin, of individuals 
hired under the authority of this sec-
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