‘‘(9) use the authorities for expedited security 
clearance processing pursuant to section 1564 of 
title 10, United States Code. 
‘‘(c) NEGOTIATIONS.—Any action taken by the Sec-
retary under this section, or to implement this section, 
shall be subject to the requirements of chapter 71 of title 
5. 
‘‘(d) REGULATIONS.—Any rules or regulations pre-
scribed pursuant to this section shall be deemed an agency 
rule or regulation under section 7117(a)(2) of title 5, and 
shall not be deemed a Government-wide rule or regulation 
under section 7117(a)(1) of such title.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such subchapter is amend-
ed by inserting after the item relating to section 
1701 the following new item: 
‘‘1701a. Management for acquisition workforce excellence.’’. 
(b) AUTHORITY TO APPOINT HIGHLY QUALIFIED 
EXPERTS ON PART-TIME BASIS.—Section 9903(b)(1) of 
title 5, United States Code, is amended by inserting ‘‘, 
on a full-time or part-time basis,’’ after ‘‘positions in the 
Department of Defense’’. 
SEC. 202. AMENDMENTS TO THE ACQUISITION WORKFORCE 
DEMONSTRATION PROJECT. 
(a) CODIFICATION INTO TITLE 10.— 
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(1) IN
GENERAL.—Chapter 87 of title 10, 
United States Code, is amended by inserting after 
section 1761 the following new section: 
‘‘§ 1762. Demonstration project relating to certain ac-
quisition personnel management policies 
and procedures 
‘‘(a) COMMENCEMENT.—The Secretary of Defense is 
encouraged to carry out a demonstration project, the pur-
pose of which is to determine the feasibility or desirability 
of one or more proposals for improving the personnel man-
agement policies or procedures that apply with respect to 
the acquisition workforce of the Department of Defense 
and supporting personnel assigned to work directly with 
the acquisition workforce. 
‘‘(b) TERMS AND CONDITIONS.—(1) Except as other-
wise provided in this subsection, any demonstration 
project described in subsection (a) shall be subject to sec-
tion 4703 of title 5 and all other provisions of such title 
that apply with respect to any demonstration project 
under such section. 
‘‘(2) Subject to paragraph (3), in applying section 
4703 of title 5 with respect to a demonstration project 
described in subsection (a)— 
‘‘(A) ‘180 days’ in subsection (b)(4) of such 
section shall be deemed to read ‘120 days’; 
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‘‘(B) ‘90 days’ in subsection (b)(6) of such sec-
tion shall be deemed to read ‘30 days’; and 
‘‘(C) subsection (d)(1) of such section shall be 
disregarded. 
‘‘(3) Paragraph (2) shall not apply with respect to 
a demonstration project unless— 
‘‘(A) for each organization or team partici-
pating in the demonstration project— 
‘‘(i) at least one-third of the workforce par-
ticipating in the demonstration project consists 
of members of the acquisition workforce; and 
‘‘(ii) at least two-thirds of the workforce 
participating in the demonstration project con-
sists of members of the acquisition workforce 
and supporting personnel assigned to work di-
rectly with the acquisition workforce; and 
‘‘(B) the demonstration project commences be-
fore October 1, 2007. 
‘‘(c) LIMITATION ON NUMBER OF PARTICIPANTS.— 
The total number of persons who may participate in the 
demonstration project under this section may not exceed 
120,000. 
‘‘(d) EFFECT OF REORGANIZATIONS.—The applica-
bility of paragraph (2) of subsection (b) to an organization 
or team shall not terminate by reason that the organiza-
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tion or team, after having satisfied the conditions in para-
graph (3) of such subsection when it began to participate 
in a demonstration project under this section, ceases to 
meet one or both of the conditions set forth in subpara-
graph (A) of such paragraph (3) as a result of a reorga-
nization, restructuring, realignment, consolidation, or 
other organizational change. 
‘‘(e) ASSESSMENT.—(1) The Secretary of Defense 
shall designate an independent organization to review the 
acquisition workforce demonstration project described in 
subsection (a). 
‘‘(2) Such assessment shall include: 
‘‘(A) A description of the workforce included in 
the project. 
‘‘(B) An explanation of the flexibilities used in 
the project to appoint individuals to the acquisition 
workforce and whether those appointments are based 
on competitive procedures and recognize veteran’s 
preferences. 
‘‘(C) An explanation of the flexibilities used in 
the project to develop a performance appraisal sys-
tem that recognizes excellence in performance and 
offers opportunities for improvement. 
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‘‘(D) The steps taken to ensure that such sys-
tem is fair and transparent for all employees in the 
project. 
‘‘(E) How the project allows the organization to 
better meet mission needs. 
‘‘(F) An analysis of how the flexibilities in sub-
paragraphs (B) and (C) are used, and what barriers 
have been encountered that inhibit their use. 
‘‘(G) Whether there is a process for (i) ensuring 
ongoing performance feedback and dialogue among 
supervisors, managers, and employees throughout 
the performance appraisal period, and (ii) setting 
timetables for performance appraisals. 
‘‘(H) The project’s impact on career progres-
sion. 
‘‘(I) The project’s appropriateness or inappro-
priateness in light of the complexities of the work-
force affected. 
‘‘(J) The project’s sufficiency in terms of pro-
viding protections for diversity in promotion and re-
tention of personnel. 
‘‘(K) The adequacy of the training, policy 
guidelines, and other preparations afforded in con-
nection with using the project. 
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