[Federal Register Volume 63, Number 57 (Wednesday, March 25, 1998)]
[Notices]
[Pages 14580-14599]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-5425]
[[Page 14579]]
_______________________________________________________________________
Part V
Office of Personnel Management
_______________________________________________________________________
Science and Technology Laboratory Personnel Management Demonstration
Project Final Plan: U.S. Army Engineer Waterways Experiment Station
(WES), Vicksburg, MS; Notice; Republication
Federal Register / Vol. 63, No. 57 / Wednesday, March 25, 1998 /
Notices
[[Page 14580]]
OFFICE OF PERSONNEL MANAGEMENT
Science and Technology Laboratory Personnel Management
Demonstration Project; Department of the Army, U.S. Army Engineer
Waterways Experiment Station (WES), Vicksburg, MS; Correction and
Republication
Editorial Note: FR Doc. 98-5425 was originally published at page
10464 in the issue of Tuesday, March 3, 1998. The corrected document
is republished below in its entirety.
AGENCY: Office of Personnel Management.
ACTION: Notice of approval of demonstration project final plan.
-----------------------------------------------------------------------
SUMMARY: 5 U.S.C. 4703 authorizes the Office of Personnel Management
(OPM) to conduct demonstration projects that experiment with new and
different personnel management concepts to determine whether such
changes in personnel policy or procedures would result in improved
Federal personnel management.
Public Law 103-337, October 5, 1994, permits the Department of
Defense (DoD), with the approval of the OPM, to carry out personnel
demonstration projects generally similar to the China Lake
demonstration project at DoD Science and Technology (S&T) Reinvention
Laboratories. The Army will implement demonstration projects initially
to cover five of its S&T Reinvention Laboratories: The Army Research
Laboratory; the Army Missile Research, Development, and Engineering
Center; the Army Aviation Research and Development Center; the Army
Medical Research and Materiel Command; and the Army Engineer Waterways
Experiment Station. This plan is for the Army Engineer Waterways
Experiment Station (WES).
DATES: This demonstration project will be implemented at WES beginning
on September 13, 1998.
FOR FURTHER INFORMATION CONTACT: WES: Dr. C.H. Pennington, U.S. Army
Engineer Waterways Experiment Station, ATTN: CEWES-ZT-E, 3909 Halls
Ferry Road, Vicksburg, Mississippi 39180-6199, phone 601-634-3549. OPM:
Fidelma A. Donahue, U.S. Office of Personnel Management, 1900 E Street,
NW, Room 7460, Washington, DC 20415, phone 202-606-1138.
SUPPLEMENTARY INFORMATION:
1. Background
Since 1966, at least 19 studies of DoD laboratories have been
conducted on laboratory quality and personnel. Almost all of these
studies have recommended improvements in civilian personnel policy,
organization, and management. The WES Personnel Management
Demonstration Project involves simplified job classifications, pay
banding, a performance-based compensation system, streamlined hiring
processes, and modified Reduction-in-Force (RIF) procedures.
2. Overview
On March 15, 1997, [62 FR 12006] OPM published this proposed
demonstration plan and received thirty-nine letters and eight
individuals commented on the proposed plan at the Public Hearing. These
comments brought several new perspectives to the attention of those
responsible for implementing, overseeing, and evaluating the project.
The comments highlighted instances of miscommunication and
misunderstanding with the present system as well as the project
interventions. Further, they underscored the importance of providing
training to employees and supervisors on the demonstration project. The
substance of all comments received has been conveyed to the WES
Director, Commander and Deputy Director, and the Laboratory Directors
in the event that local policies, processes, and training sessions may
benefit from such perspectives. A summary of all comments received,
along with accompanying responses, is provided below.
A. General Management Issues
Comments: Seventeen comments were in support of the project as a
way to provide incentives for promising young people to stay in the
Federal Government. Seven were opposed to the project, others were
opposed to some of the provisions in the project, and two recommend
coverage of engineers and scientists only. Many other comments were
made that addressed the organizational environment at WES. Several
comments expressed concern over a demonstration project which provides
additional flexibility to supervisors and suggested that these
flexibilities will allow for or promote abuses and compromises of the
merit system. With the feeling that many supervisors currently do not
properly execute supervisory responsibilities or utilize the authority
and tools provided under the current system, these employees fear a new
system that gives supervisors additional flexibility over their career
and pay. Several comments mentioned that no checks or oversight seem
apparent and that management accountability is lacking under the
Project.
Response: It has been the intent of WES from the inception of the
Personnel Management Demonstration Project to include the total
workforce in a broadbanding performance-based personnel management
system, not just the engineers and scientists. Internal equity,
organizational cohesiveness based on a common performance management
philosophy, and administrative efficiency are reasons WES included the
entire workforce in the project. WES acknowledges that the project
provides increased authority and responsibility to supervisors,
particularly in those areas impacting employees' pay. Experience with
other personnel demonstration projects, including the China Lake
project, does not support the assumption that increased supervisory
discretion and authority leads to merit system abuses. However, WES is
sensitive to the concerns expressed by many of the comments and is
committed to holding supervisors accountable for the proper use of
increased authorities and flexibilities. To assist supervisors in
carrying out their new responsibilities, the Personnel Management
Demonstration Project currently requires that supervisors be trained on
the new system and receive feedback from a number of sources. Aggregate
data from the feedback process will be made available to the top
management at WES and will be used to monitor and identify further
supervisory development and training needs. Project oversight will be
achieved by an executive steering committee, co-chaired by the
Assistant Secretary of the Army for Research and Technology and the
Deputy Assistant Secretary of the Army, Civilian Personnel Policy.
Additionally, extensive independent evaluations of the demonstration
project will be conducted by OPM's Personnel Resources and Development
Center over the first five years of the project. The results of these
evaluations will provide WES with information as to whether specific
provisions of the project need to be modified, continued as is, or
curtailed.
B. Occupational Family and Broadbands
Comments received on this aspect of the Personnel Management
Demonstration Project were related to two subtopics; broadbanding and
assignment of job series to occupational families.
[[Page 14581]]
(1) Broadbanding
(a) Comment: Four individuals expressed concern about the proposed
broadbanding structure in the Engineers and Scientists occupational
family. Two recommended that grades GS-12 through GS-14 be included in
one pay band since this was in the original WES proposal. One
recommended one pay band covering GS-11 through GS-15. The other
recommended that GS-13s, GS-14s, and GS-15s be placed in separate pay
bands. Concerns presented included: GS-12s at WES consistently work at
the GS-13 or GS-14 level; there is a glass ceiling for GS-12s; GS-12s
are lower than others serving on national and international committees;
expectations of wholesale transfer of GS-12s which will be a loss to
the community; retention problems; costs of retraining new recruits;
and concerns about ethical dilemmas when raters and ratees are in the
same pay band.
Response: WES recognizes there is a concern over the lack of
progression opportunities from GS-12 to GS-13 under the present system
and the desirability of establishing a pay band that would remove
promotion barriers and allow progression to a level of pay equivalent
to the GS-14 level. This is evident in the turnover of engineer and
science employees at the GS-12 level, which is the highest at WES. A
proposal was included in the first WES plan to address these issues and
to experiment with a GS-12 through GS-14 pay band for engineers and
scientists performing research, testing and evaluation, and
experimental development functions. Based on these comments and those
presented during the project development process, the pay banding
scheme for the Engineers and Scientists occupational family has been
revised to recognize a pay band covering GS-12 through GS-14. The issue
of raters and ratees in the same band was considered to be comparable
to rating levels under the present system whereby person-in-job
positions are frequently at or above the level of their raters. This is
not viewed as a potential problem.
(b) Comment: One commentor recommended that separate occupational
families, pay bands, and pay pools be established for both legal and
contracting personnel.
Response: WES currently has 3 attorneys and 13 GS-1102 contracting
employees. The creation of separate occupational families and pay bands
for each professional group is impractical, would require an inordinate
amount of time to manage, and the pay pools would be too small to
provide substantial financial rewards to recognize exceptional
performance. The legal and contracting occupations will continue to be
included in the Administrative occupational family.
(c) Comment: One commentor stated that ``the ratio of possible pay
increases caused by the banding is highly favorable to the white male
while the minorities, especially African Americans and females, will
find themselves locked in the lower paying bands.''
Response: The pay banding schemes were developed by a committee
comprised of labor, management, professional, clerical, technical, wage
grade, African American, white, male, and female employees. Pay band
considerations included the nature of work (professional,
nonprofessional, technical, support, etc.), normal level of work, and
normal career progression of employees within the various occupational
families. The results reflect progression from entry level trainee, to
intern to developmental, to journeyman, to advanced journeyman, to
expert, to managerial level. No positions were designated to bands
based on non-merit factors such as race, sex, national origin, or any
other personal considerations of incumbents. Additionally, experience
of the China Lake Project shows that broadbanding does not discriminate
based on race, sex, national origin or any other personal
considerations. To assist WES in monitoring this important issue, data
on band level salary, and workforce demographics, supplemented by
perceptual data, are included in the planned evaluation strategy.
Evaluation results will alert WES of any unintended outcomes and will
serve as the basis for decisions to modify the project.
(d) Comment: One employee voiced concern about the potential
problem of applying for a job in another agency if they were at pay
band IV in the Engineers and Scientists occupational family and the
desired job was GS-15. The employee was concerned about how the agency
would know their comparable grade level.
Response: The project includes a provision for conversion out of
the project to the General Schedule pay system. In instances such as
this, employees will be encouraged to ask prospective employers to
contact the employee's servicing Human Resources Management (HRM)
Office for comparable grades, etc., in order to make qualifications
determinations.
(2) Assignment of Job Series to Occupational Families
Comments: Three comments were submitted raising concern about the
identification of job series to occupational families. These comments
were related to the assignment of GS-0544, Civilian Pay Technician, and
GS-1106, Procurement Clerk, positions to the General Support
occupational family.
Response: The occupational families selected for the WES Personnel
Management Demonstration Project group positions by job series under
one of four occupational families: Engineers and Scientists; E&S
Technicians; Administrative; and General Support. Each occupational
family covers occupations similarly treated in regard to type of work,
typical career progression, and qualification requirements. Using these
criteria, positions designated as Civilian Pay Technician, GS-0544, and
Procurement Clerk, GS-1106, are assigned to the General Support
occupational family.
C. Performance Evaluation
Comment: One commentor had three concerns about the performance
evaluation system that will be used by this project. The commentor
recommended that a pass/fail system be adopted, three performance
elements be added to the appraisal, and the employee-to-supervisor
ratio of about 15:1 be waived.
Response: Several performance evaluation options including a pass/
fail system were considered during project development. While pass/fail
is a viable option, a system that rates an employee's performance on a
scale from 0 to 5 was adopted. The latter is believed to be more
compatible for converting performance ratings or scores to pay-for-
performance. The recommended three additional performance elements
(empowers his/her personnel, acquisition streamlining initiatives, and
support to the organization) will not be added since they are
considered to be embedded within the seven non-supervisory performance
elements or the two supervisory performance elements. The plan contains
no requirements for changing the employee-to-supervisor ratio.
D. Supervisory Pay Adjustments and Supervisory Pay Differentials
Comments: Eight comments were received (one was signed by seven
individuals) regarding the proposal to allow supervisory pay
adjustments and differentials for supervisors in the
[[Page 14582]]
Engineers and Scientists occupational family. One was in support of
supervisory pay adjustments and differentials. One recommended that
supervisory pay adjustments be applied equally to all engineers and
scientists supervisors rather than be variable. One commentor
recommended that adjustments and differentials be made available to all
supervisors regardless of occupational family assignment. One
recommended that supervisory pay adjustments be allowed to exceed the
pay band maximum pay and considered as basic pay. The others
recommended that the proposal to allow these adjustments and
differentials be withdrawn. Reasons given included supervisory skills
are supporting elements that are not specific to mission and are
generic tasks, supervisory work force is stable, proposed plan
simplifies the work of supervisors, increased pay for supervisors will
penalize direct-mission skills, and the plan should reward individual
performance not the position.
Response: The proposal to allow supervisory pay adjustments was to
attract and reward the best individuals for supervisory positions,
recognize the increased burden placed on engineers and scientists
supervisors, and to compensate supervisors who supervise employees that
are typically at the same grade level or higher. The supervisory pay
adjustment will allow an increase in pay for new supervisors who
lateral from a nonsupervisory position to a supervisory position within
the same pay band, i.e., pay band IV or V. This adjustment is not
automatic and may be varied based on a supervisor's performance, up to
a maximum of 10 percent. Supervisory pay differentials are included in
order to recognize pay for performance for supervisors who have reached
the maximum pay for their pay band. This extension of pay will be given
and adjusted based on their actual performance and the differential
will not be treated as basic pay. Supervisory adjustments and
differentials were not made available to supervisors in other
occupational families since most supervise employees in lower pay
bands.
E. Distinguished Scholastic Achievement Appointment
Comments: Eighteen individuals identified a need to modify the
Personnel Management Demonstration Project to include an initiative
that was in the original WES proposal, the establishment of a
Distinguished Scholastic Achievement Appointment which provides the
authority to appoint undergraduates and graduates with outstanding
scholastic records to positions in the Engineers and Scientists
occupational family.
Response: 5 U.S.C. 4703 states that before a personnel
demonstration project is conducted, a plan shall be developed which
identifies the methodology of the project. The plan must be published
in the Federal Register and submitted as published to public hearings.
New initiatives or substantive changes to a proposed personnel
demonstration project are not permitted without being submitted to
public hearing. The Distinguished Scholastic Achievement Appointment is
considered to be a new initiative and has not been the subject of a
public hearing. Therefore, the Distinguished Scholastic Achievement
Appointment will not be included as part of the WES Personnel
Management Demonstration Project at this time. However, WES management
intends to submit the Distinguished Scholastic Achievement Appointment
as a personnel initiative at the appropriate time in the future.
F. Voluntary Emeritus Program
Comment: One person suggested that the Voluntary Emeritus Program
be made available to retired or separated individuals regardless of
occupational family.
Response: The national prominence earned by researchers at WES
results from their unparalleled engineering and scientific
achievements. Many of the retired engineers and scientists continue to
be leaders in their professions and the Voluntary Emeritus Program
allows them the opportunity to assist WES in solving problems of
importance to the nation in broad areas of civil engineering and
environmental quality. This intervention will be retained as written
and will be monitored through the evaluation process to determine
whether it should be expanded to other occupational families.
G. Conversion Buy-In
Comments: Seven commentors were concerned that, at the time of
conversion, employees would be given a lump sum cash payment rather
than adjusting base salary for time credited toward what would have
been the employee's next within-grade increase. All believe that a one-
time payment equal to an employee's time vested in their current grade
step takes away from the employee's future earnings.
Response: WES has modified the conversion procedure so that, at the
time of conversion into the project, each employee will have their
basic pay adjusted for time credited toward what would have been the
employee's next within-grade increase.
H. Reduction-In-Force (RIF)
Comments: Five commentors were concerned with the revised RIF
procedures that place greater emphasis on performance when establishing
retention registers. Two commentors viewed the revised procedures as
unfair since performance scores are not used to adjust the service
computation date; one commentor was concerned about veterans'
preference issues; one commentor did not believe that competitive areas
should be defined as the occupational family; and the other commentor
saw no need to change current RIF procedures.
Response: The current RIF system is complicated, costly, and
relatively unresponsive to the needs of the organization. WES believes
that flexible and responsive alternatives are needed that place greater
emphasis on performance while preserving the guiding principles of
veterans' preference laws. The revised RIF procedures will disrupt the
organization the least and will increase the probability of retaining
the highest performing individuals. Under the Project, employees will
retain rights and protections during RIF. At the same time, one goal of
the Project is to expand the role of performance in various aspects of
employment. For this reason, the Project does not use performance
scores to adjust the service computation date (SCD), as one commentor
suggested. The Project instead emphasizes performance by using the most
recent employee performance score as a separate element in the order of
retention during RIF and by giving that score priority over the service
computation date in determining the order of retention. Retention
standing will be based upon the following factors, listed in order of
priority: tenure, veterans' preference, most recent employee
performance score, and SCD. The role of veterans' preference remains
unchanged from the current system. Finally, competitive areas have been
modified to make each of the four occupational families a separate
competitive area. All positions in a given occupational family,
regardless of their geographic locations, will fall within a single
competitive area.
3. Demonstration Project System Changes
Minor editorial changes were made to correct the final version of
the Project. In addition, pertinent sections of the final plan have
been modified to include: a pay band in the Engineers
[[Page 14583]]
and Scientists occupational family that combines GS 12-14 positions
(Section III, A, Broadbanding); and an adjustment of basic pay for the
time credited toward the employee's next within-grade increase at the
time of conversion into the project (Section V, A, Conversion to the
Demonstration Project).
Dated: February 26, 1998.
Office of Personnel Management.
Janice R. Lachance,
Director.
Table of Contents
I. Executive Summary
II. Introduction
A. Purpose
B. Problems with the Present System
C. Changes Required and Expected Benefits
D. Participating Organization
E. Participating Employees
F. Project Design
III. Personnel System Changes
A. Broadbanding
B. Classification
C. Pay for Performance
D. Pay Setting Provisions
E. Hiring and Placement Authorities
F. Employee Development
G. Reduction in Pay or Removal Actions
H. Revised Reduction-In-Force (RIF) Procedures
IV. Training
A. Supervisors
B. Administrative Staff
C. Employees
V. Conversion
A. Conversion to the Demonstration Project
B. Conversion from the Demonstration Project
VI. Project Duration
VII. Evaluation Plan
VIII. Demonstration Project Costs
IX. Required Waivers to Law and Regulations
A. Waivers to Title 5, U.S. Code
B. Waivers to Title 5, Code of Federal Regulations
Appendix A: Intervention Impact Model: Project Evaluation
I. Executive Summary
The Department of the Army (DA) will establish Personnel
Demonstration Projects generally similar to the system currently in use
at the Navy Personnel Demonstration Project known as China Lake. The
Personnel Demonstration Projects will be developed to be in-house
budget neutral, based on a baseline of September 1995 in-house costs
and consistent with the DA plan to downsize the DA laboratories and
research and development centers. An in-house budget is a compilation
of costs of the many diverse components required to fund the day-to-day
operations of a laboratory. These components generally include pay of
people (labor, benefits, overtime, awards), training, travel, supplies,
non-capital equipment, and other costs depending on the specific
function of the activity.
This project was designed by the Assistant Secretary of the Army
for Research, Development and Acquisition with the support of the
Assistant Secretary of the Army for Civil Works, and the participation
of five Army S&T Reinvention Laboratories. Review was provided by the
US Army Corps of Engineers, DA, DoD, and OPM. Phases of the project
that address non-Title 5 issues began as early as 1 October 1995, with
implementation of Title 5 initiatives to begin no earlier than June 3,
1998.
This project is built upon the concepts of linking performance to
pay for all covered positions, simplifying paperwork in the processing
of classification and other personnel actions, emphasizing partnerships
among management, employees, and unions, and delegating other
authorities to line managers.
II. Introduction
A. Purpose
The quality of DoD laboratories, their people, and products has
been under intense scrutiny in recent years. The perceived
deterioration of laboratory quality is due, in substantial part, to the
erosion of control which line managers have over their human resources.
This demonstration, in its entirety, attempts to provide managers, at
the lowest practical level, the authority, control, and flexibility
needed to achieve quality laboratories and quality products. The
purposes of the demonstration project are to: Improve the hiring
process and allow WES to compete more effectively for high-quality
personnel; motivate and retain staff through pay for performance,
sabbaticals, and a more responsive personnel system; strengthen the
manager's role in personnel management through increased delegation of
personnel authorities; increase the efficiency of the personnel system
by simplifying the classification system through broadbanding and
reduction of guidelines, steps, and paperwork; and create a model that
could be adopted by other government agencies.
This project will be under the joint sponsorship of the Assistant
Secretary of the Army for Research, Development and Acquisition and the
Assistant Secretary of the Army for Manpower and Reserve Affairs. The
MACOM Commander will execute and manage the project.
Project oversight will be achieved by an executive steering
committee made up of top-level executives, co-chaired by the Deputy
Assistant Secretary of the Army for Research and Technology and the
Deputy Assistant Secretary of the Army (Civilian Personnel Policy).
Oversight external to the Army will be provided by DoD and OPM.
B. Problems With the Present System
The civilian personnel system currently in use at DoD laboratories
has several major inefficiencies, which hinder management's ability to
recruit and retain the best qualified personnel. Line managers have
only limited flexibility to administer personnel resources, and
existing personnel regulations are often in conflict with line
management's ability to perform world-class research. Laboratory
managers are frustrated in their attempts to hire the best and
brightest engineers and scientists.
The classification system requires lengthy, narrative, individual
position descriptions, which have to be classified by the use of
complex and often outdated position classification standards. The
system causes delays in recruiting, reassigning, promoting, and
removing employees. Rewarding or taking a performance based action
requires inordinate paperwork and time, often discouraging managers
from pursuing critical actions. Few incentives, with limited
flexibility, exist for managers to deal with all levels of the
workforce, and pay is not always commensurate with an employee's
performance. The current RIF system does not adequately recognize
performance as a major criterion in RIF situations. The RIF rules are
complex, and difficult to understand and administer. The RIF process
disrupts operations, due to displacement of employees within their
competitive levels and in the exercise of bumping and retreat rights.
C. Changes Required and Expected Benefits
This project is expected to demonstrate that a human resource
management system tailored to the mission and need of WES will result
in: Increased quality in the engineering and science workforce and the
laboratory products they produce; increased timeliness of key personnel
processes; trended workforce data that reveals increased retention of
excellent contributors and separation rates of poor contributors; and
increased customer satisfaction with the laboratory and its products by
customers serviced.
This demonstration program builds on the successful features of
demonstration projects at China Lake and the National Institute of
Standards
[[Page 14584]]
and Technology (NIST). These demonstration projects have produced
impressive statistics on job satisfaction of their employees versus
that for the federal workforce in general. This demonstration expects
similar successes. A full range of data will be collected to evaluate
the project (and is described in Section VII, Evaluation Plan).
D. Participating Organization
U.S. Army Engineer Waterways Experiment Station, 3909 Halls Ferry
Road, Vicksburg, Mississippi 39180-6199. Employees assigned to WES work
at the locations shown in Table 1.
Table 1.--Duty Locations
------------------------------------------------------------------------
Total No.
Location of
employees
------------------------------------------------------------------------
London, England............................................ 1
Berkeley, CA............................................... 1
Mobile, AL................................................. 3
Washington, DC............................................. 1
Fayette, NC................................................ 1
Natchez, MS................................................ 1
Vicksburg, MS.............................................. 1,312
Duck, NC................................................... 10
Calhoun Falls, SC.......................................... 2
Lewisville, TX............................................. 3
North Bonneville, WA....................................... 3
Dallesport, WA............................................. 1
Spring Valley, WI.......................................... 2
Omaha, NE.................................................. 56
------------------------------------------------------------------------
E. Participating Employees
The project will cover all General Schedule (GS) employees assigned
to WES. Federal Wage System (FWS) employees, Civilian Intelligence
Personnel Management System (CIPMS) employees covered by Title 10, and
5 U.S.C. 3105 Scientific and Technical (ST) employees are not covered,
but will follow the same employee development provisions of this plan,
except, in the case of CIPMS employees, where the provisions are found
to be in conflict with CIPMS. The occupational series of employees
included in the project are identified by occupational family in Table
2. All GS employees with appointments exceeding one year will be
covered by the provisions of this project. GS employees with
appointments limited to one year or less will be covered for pay
banding, the performance appraisal process, and salary adjustments.
Senior Executive Service (SES) employees will not be included in the
project. It is the intent of WES to expand coverage of the project to
all FWS employees 1 to 2 years following the date of implementation. In
the event of expansion to FWS employees beyond the employee development
provisions, full approval will be obtained from DA, DoD, and OPM.
The American Federation of Government Employees (AFGE) represents
approximately 500 GS and FWS employees at WES. The AFGE represents most
E&S Technicians; most Administrative employees; all General Support
employees except fire protection inspectors, security guards, student
trainees, and those designated as confidential employees; and all
nonsupervisory FWS employees. WES plans to implement this project on
September 13, 1998. Bargaining unit employees will be included in the
project at that time if Impact and Implementation bargaining is
complete. If Impact and Implementation bargaining has not been
completed on the date of project implementation, employees represented
by AFGE Local 3310 may not be brought into the project until completion
of the bargaining process. AFGE Local 3310 has been involved with and
participated in the development of the project since its inception. WES
will continue to fulfill its obligation to consult or negotiate with
the AFGE, as appropriate, in accordance with 5 U.S.C. 4703 (f) and
7117. The participation with the AFGE is within the spirit and intent
of Executive Order 12871.
Table 2.--Occupational Series Included in the Demonstration Project
------------------------------------------------------------------------
------------------------------------------------------------------------
Engineers & Scientists
0023 Outdoor Recreation Planner
0150 Geographer
0193 Archeologist
0401 Biologist
0403 Microbiologist
0408 Ecologist
0410 Zoologist
0414 Entomologist
0430 Botanist
0434 Plant Pathologist
0435 Plant Physiologist
0470 Soil Scientist
0471 Agronomist
0482 Fishery Biologist
0486 Wildlife Biologist
0499 Student Trainee
0690 Industrial Hygienist
0801 General Engineer
0803 Safety Engineer
0806 Materials Engineer
0807 Landscape Architecture
0808 Architecture
0810 Civil/Hydraulic/Structural Engineer
0819 Environmental Engineer
0830 Mechanical Engineer
0850 Electrical Engineer
0854 Computer Engineer
0855 Electronics Engineer
0893 Chemical Engineer
0896 Industrial Engineer
0899 Student Trainee
1301 Physical Scientist
1310 Physicist
1313 Geophysicist
1315 Hydrologist
1320 Chemist
1350 Geologist
1360 Oceanographer
1399 Student Trainee
1515 Operations Research Analyst
1520 Mathematician
1530 Statistician
1550 Computer Scientist
1599 Student Trainee
E&S Technicians
0028 Environmental Protection Specialist
0802 Engineering Technician
0818 Engineering Draftsman
0856 Electronics Technician
1311 Physical Science Technician
1371 Cartographic Technician
1521 Mathematics Technician
1670 Equipment Specialist
Administrative
0018 Safety & Occupational Health
Specialist
0099 Student Trainee
0260 Equal Employment Opportunity
Specialist
0301 Info Syst Mgr Spec/Joint Test Prog Mgt
Coordinator/Emergency Oper Mgr
0334 Computer Specialist
0341 Administrative Officer
0343 Mgt & Prog Analysis Officer
0346 Logistics Management Officer
0391 Telecommunications Officer
0399 Student Trainee
0505 Financial Manager
0510 Accountant
0511 Auditor
0560 Budget Officer
0599 Student Trainee
0610 Nurse
0905 General Attorney
0950 Paralegal Specialist
1020 Illustrator
1035 Public Affairs Specialist
1060 Photographer
1071 Audiovisual Specialist
1082 Editor
1084 Visual Information Specialist
1102 Contract Specialist
1104 Property Disposal Specialist
1199 Student Trainee
1410 Librarian
1412 Technical Information Specialist
1499 Student Trainee
1712 Training Instructor
2001 General Supply Specialist
2101 Transportation Specialist
General Support
0019 Safety Technician
0081 Firefighter
0085 Security Guard
0090 Guide
0099 Student Trainee
0302 Messenger
0303 Clerk
0305 Mail & File Clerk
0312 Clerk-Stenographer
[[Page 14585]]
0318 Secretary
0322 Clerk-Typist
0326 Office Automation Clerk
0332 Computer Operator
0335 Computer Clerk
0344 Management Assistant
0361 Equal Employment Opportunity Assistant
0394 Communications Clerk
0503 Financial Clerk & Assistant
0525 Accounting Technician
0530 Cash Processing Technician
0540 Civilian Pay Technician
0544 Teller
0561 Budget Clerk
0986 Legal Clerk
1105 Purchasing Clerk
1106 Procurement Clerk
1107 Property Disposal Clerk
1411 Library Technician
2005 Supply Clerk
2102 Transportation Clerk
2131 Freight Rate Specialist
------------------------------------------------------------------------
F. Project Design
In August 1994, a Project Manager was appointed to lead the WES
reinvention effort. The Project Manager was assisted by a
representative of the servicing HRM Office. During October-November
1994, a WES concept plan was developed to map out desired areas in
which to propose changes in the personnel system. The concept plan was
then merged into a single Army plan for the participating Army S&T
Laboratories and was submitted to the DA in December 1994.
WES formed four teams in January 1995 to develop specific
initiatives to be undertaken in the WES demonstration project. The
teams were composed of 7 to 14 employees each and included
representatives from management, engineers, scientists, technicians,
clerical, administrative, wage grade, human resources, and
representatives from the local union. The teams developed human
resources management initiatives which were designed to: assist in
hiring the best people to accomplish the mission; improve training and
development of the workforce; improve and simplify the position
classification process; develop a broadband system to facilitate
classification and career progression; and develop a pay for
performance system to recognize employee contributions to mission
accomplishment.
The Army's plan was reviewed concurrently by DoD and OPM in April
1996. It was recommended that each Army lab submit individual project
plans. The second joint review by DoD and OPM of the lab plans was
conducted in September 1996. The philosophy and intent of WES
throughout the process of project development was the inclusion of its
total workforce. As such, a pay-for-performance broadbanding system was
developed for FWS employees, in partnership with representation from
the bargaining unit, and was included as part of the WES plan. At the
joint reviews, the DoD Civilian Personnel Management Service and OPM's
Office of Classification and Office of Compensation Policy considered
the broadbanding of FWS employees as outlined in the WES plan to be
inappropriate. FWS employees were removed from the plan but will follow
the same employee development provisions of this plan. Options for
including them in a pay-for-performance system at a later date will be
developed by WES, DA, DoD, and OPM.
This plan and these initiatives are the result of many months of
effort by dedicated participants at WES, U.S. Army Corps of Engineers,
DA, DoD, and OPM levels.
III. Personnel System Changes
A. Broadbanding
1. Pay Bands
Each occupational family will be composed of discrete pay bands
corresponding to recognized career advancement within the occupations.
The pay bands will replace grades. The pay bands will not be the same
for all occupational families. Each occupational family will be divided
into four to six pay bands, each pay band covering the same pay range
now covered by one or more grades. The minimum rate of basic pay for a
band will be the minimum rate for the lower grade in the band as shown
on the regular GS schedule. The maximum rate of basic pay for a pay
band will be the highest regular schedule GS rate possible for
positions within that occupational family and pay band. A salary
overlap, similar to the current overlap between GS grades, will be
maintained.
Ordinarily an individual will be hired at the lowest salary in a
pay band. Exceptional qualifications, specific organizational
requirements, or other compelling reasons may lead to a higher entrance
salary within a pay band.
The proposed pay bands for the occupational families and how they
relate to the current GS grades are shown in Table 3. This pay band
concept has the following advantages because it: reduces the number of
classification decisions required during an employee's career;
simplifies the classification decision-making process and paperwork;
supports delegation of classification authority to line managers;
provides a broader range of performance-related pay for each pay band;
and prevents the progression of low performers through a pay band by
mere longevity, since job performance serves as the basis for
determining pay.
The WES pay banding plan expands the pay banding concept used at
China Lake and NIST by creating pay band VI of the Engineers and
Scientists occupational family. This pay band is designed for Senior
Scientific Technical Managers.
Current legal definitions of Senior Executive Service (SES) and ST
positions do not fully meet the needs of WES. The SES designation is
appropriate for executive level managerial positions whose
classification exceeds the GS-15 grade level. The primary knowledge and
abilities of SES positions relate to supervisory and managerial
responsibilities. Positions classified as ST are reserved for bench
research scientists and engineers; these positions require a very high
level of technical expertise and they have little or no supervisory
responsibility.
[[Page 14586]]
[GRAPHIC] [TIFF OMITTED] TN25MR98.007
WES currently has a few positions which typically have
characteristics of both SES and ST classifications. Most of these
positions are responsible for supervising other GS-15 positions,
including branch or division chiefs, non-supervisory research engineers
and scientists, and potential ST positions. These positions are
classified at the GS-15 level, although their technical expertise
warrants classification beyond GS-15. Because of their management
responsibility, these individuals are excluded from the ST system.
Because of management considerations, they cannot be placed in the
SES. WES management considers the primary requirement for the positions
to be knowledge of and expertise in the specific scientific and
technology areas related to the mission of the organization.
Historically, incumbents of these positions have been recognized within
the community as scientific and engineering leaders, who possess
primarily scientific/engineering credentials and are considered experts
in their field. However, they must also possess strong managerial and
supervisory abilities. Therefore, although some of these employees have
scientific credentials that might compare favorably with ST criteria,
classification of these positions as STS is not an option, because the
managerial and supervisory responsibilities inherent in the positions
cannot be ignored.
The purpose of pay band VI (which will reinforce the equal pay for
equal work principle) is to solve a critical classification problem. It
will also contribute to an SES ``corporate culture'' by excluding from
the SES positions for which technical expertise is paramount. Payband
VI proposes to overcome the difficulties identified above by creating a
new category of positions--the Senior Scientific Technical Manager,
which has both scientific/technical expertise and full managerial and
supervisory authority.
Current GS-15s will convert into the demonstration project at pay
band V. After conversion they will be reviewed against established
criteria to determine if they should be reclassified to pay band VI.
Other positions possibly meeting criteria for classification to pay
band VI will be reviewed on a case-by-case basis. The proposed salary
range is a minimum of 120 percent of the minimum rate of basic pay for
GS-15 with a maximum rate of basic pay established at the rate of basic
pay (excluding locality pay) for SES level 4 (ES-4). Vacant positions
in pay band VI will be competitively filled to ensure that selectees
are preeminent researchers and technical leaders in the specialty
fields who also possess substantial managerial and supervisory
abilities.
Selection panels will be created to assist in filling Payband VI
positions. Panel members will be selected from a pool of current WES
SES members, ST employees, and later those in Payband
[[Page 14587]]
VI, and an equal number of individuals of equivalent stature from
outside the laboratory to ensure impartiality, breadth of technical
expertise, and a rigorous and demanding review. The panel will apply
criteria developed largely from the current OPM Research Grade
Evaluation Guide for positions exceeding the GS-15 level.
DoD will test the establishment of pay band VI for a 5-year period.
Positions established in pay band VI will be subject to limitations
imposed by OPM and DoD. Pay band VI positions will be established only
in an S&T Reinvention Laboratory which employs scientists, engineers,
or both. Incumbents of pay band VI positions will work primarily in
their professional capacity on basic or applied research and
secondarily perform managerial or supervisory duties. The number of pay
band VI positions within DoD will not exceed 40. These 40 positions
will be allocated by ASD (FMP), DoD, and administered by the respective
Services. The number of pay band VI positions will be reviewed
periodically to determine appropriate position requirements. Pay band
VI position allocations will be managed separately from SES, ST, and
Senior Level (SL) positions. An evaluation of the pay band VI concept
will be performed during the fifth year of the demonstration project.
The final component of pay band VI is the management of all pay
band VI assets. Specifically, this authority will be exercised at the
DA level and includes the following: authority to classify, create or
abolish positions within the limitations imposed by OPM and DoD;
recruit and reassign employees in this pay band; set pay and to have
their performance appraised under this project's pay-for-performance
system. The laboratory wants to demonstrate increased effectiveness by
gaining greater managerial control and authority, consistent with
merit, affirmative action, and equal employment opportunity principles.
2. Occupational Families
Positions will be grouped into occupational families according to
similarities in type of work and customary requirements for formal
training or credentials. The historical patterns of advancement within
the occupational families will be considered. The current positions and
grades at WES have been examined, and their characteristics and
distribution have served as guidelines in the development of
occupational families. Four occupational families will be established:
(a) Engineers and Scientists. This occupational family includes all
technical professional positions such as engineers (civil, hydraulic,
structural, mechanical, electronic, electrical, chemical, and
environmental), mathematicians, statisticians, computer scientists,
outdoor recreational planners, geographers, architects, archaeologists,
operations research analysts, and a variety of physical and biological
scientists. Specific course work or educational degrees are required
for positions in this occupational family.
(b) E&S Technicians. This occupational family consists of the
positions that support the various engineering and scientific
activities. Employees in this occupational family are required to have
training and skills in the various technical areas (civil, hydraulic,
structural, geotechnical, physical, coastal, biological, chemical).
(c) Administrative. This occupational family contains specialized
functions in such fields as counsel, audit, finance, procurement,
public information, accounting, administrative, computing, safety, and
management analysis. Special training and skills in administrative
fields or special degrees are required.
(d) General Support. This occupational family is composed of
positions requiring special skills and knowledge, such as typing or
shorthand, and job-related experience. Clerical work usually involves
the processing and maintenance of records. Assistant work requires
knowledge of methods and procedures within a specific administrative
area. Other support functions include the work of secretaries, legal
clerks, guards, mail clerks, etc.
3. Fair Labor Standards Act
Fair Labor Standards Act (FLSA) exemption and nonexemption
determinations will be made consistent with criteria found in 5 CFR
part 551. All employees are covered by the FLSA unless they meet the
executive, administrative, or professional criteria for exemption. As a
general rule, the FLSA status can generally be matched to the
occupational families and pay bands found in Table 3. Exceptions to
these guidelines include supervisors/managers who meet the definitions
outlined in the OPM General Schedule Supervisory Guide. The generic
position descriptions will not be the sole basis for the FLSA
determination. Each position will be evaluated on a case by case basis
by comparing the duties and responsibilities assigned, the
classification standards for each pay band, under 5 CFR part 551
criteria.
B. Classification
1. Coverage
The present GS classification system has over 400 occupations (also
called series), which are divided into 22 groups. The present
occupational series will be maintained. New series may be added as
needed to reflect new occupations in the work force when established by
OPM.
2. Classification Standards
The classification system will be modified to facilitate pay
banding. The present classification standards will be used to create
local benchmark position description/standards for each pay band,
reflecting duties and responsibilities comparable to those described in
present classification standards for the span of grades represented by
each pay band. Present titles and series will continue to be used in
order to recognize the types of work being performed and educational
backgrounds and requirements of incumbents. Locally developed specialty
codes and OPM functional codes will be used to facilitate titling,
making qualification determinations, and assigning competitive levels
to determine retention status.
3. Position Descriptions and Classification Process
New standardized position descriptors will be developed to assist
managers in exercising delegated position classification authority.
Managers will identify the appropriate pay band and descriptor
definition and proceed to finalize the position description. A cover
sheet similar to the present DA Form 374 will be used to reflect their
classification decision. The cover sheet used will include a provision
for designating specialty codes. These specialty codes will be
developed to identify the special nature of work performed and will be
included on the final position descriptor.
An employee may appeal the occupational series or pay band level of
his or her position at any time. An employee must formally raise the
areas 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 OPM only after DoD has rendered a decision under the
provisions of this demonstration
[[Page 14588]]
project. 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
Title 5 apply. An employee requesting a classification decision that
would exceed the equivalent of a GS-15 level may not submit the appeal
to OPM.
An employee may not appeal the accuracy of the position
description, the demonstration project classification criteria, or the
pay-setting criteria; the assignment of occupational series to the
occupational family; the propriety of a salary schedule; or matters
grievable under an administrative or negotiated grievance procedure or
an alternative dispute resolution procedure.
The evaluation of classification appeals under this demonstration
project are based upon the demonstration project classification
criteria. Case files will be forwarded for adjudication through the
Civilian Personnel Office/Human Resources Office providing personnel
service and will include copies of appropriate demonstration project
criteria.
C. Pay for Performance
The objective is to establish a pay system that will improve the
ability of WES to attract and retain quality employees. The new system
will be a pay-for-performance system and, when implemented, will result
in a redistribution of pay resources based upon individual performance.
1. Determining Pay Increases
Compensation will be allocated to employees through organizational
compensation pools. The WES Director, Commander and Deputy Director,
and Laboratory Directors at WES will manage their respective pools.
The compensation pools will have two components: Funds for
performance pay increases (money previously available for within-grade
increases, quality step increases, and promotions between grades that
are banded under the project); and funds for General Schedule pay
increases. Performance awards (cash awards and bonuses presently
allowed) and locality pay increases will continue under the project and
will be excluded from the compensation pools. The compensation pools
will be managed to ensure relative cost neutrality. As a result, funds
will not be shifted between pools.
Annual base pay increases paid from the performance pay increase
component of the compensation pools will be based on eligibility as
well as scores on the established standards as follows:
[GRAPHIC] [TIFF OMITTED] TN25MR98.008
Where:
PR = employee's annual performance-based pay raise, $
V = value of a share, percent
S = number of shares earned by employee based on performance
P = employee's salary prior to pay raise
The number of shares earned by an employee will vary from 0 to 4
and will depend upon their performance score. A performance pay
increase may not cause the employee's rate of basic pay to exceed the
maximum rate of the pay band.
The value of a share will be computed in a manner to ensure that
the amount of money available for performance pay increases will not
exceed the amount of money in a compensation pool that is available for
raises. Therefore, the amount of money available annually within a pay
pool for performance-based pay raises is:
[GRAPHIC] [TIFF OMITTED] TN25MR98.009
Where:
A = average annual historical pay raise, percent
M = pay pool size, $
Pi = salary of employee I
n = number of employees in compensation pool
The share value (percent) is computed in a manner to ensure exact
expenditure of the amount of money in the compensation pool as follows:
[GRAPHIC] [TIFF OMITTED] TN25MR98.010
Where:
Si = number of shares earned by employee I based upon
performance
ne = number of employees within compensation pool that are
eligible for a performance-based pay raise
A payout function that correlates number of shares earned by an
employee for a performance based pay raise to average performance score
will be similar to the plot shown in Figure 1.
The annual General Schedule pay increase will be allocated as
follows:
(a) The first step is setting the percentage General Schedule
increase that will be given to all eligible employees. This amount will
be equal to the General Schedule increase authorized for GS employees.
All employees whose average performance score is 2.0 or greater will be
eligible for the increase. Employees with an average performance score
of less than 2.0 will be ineligible for the full General Schedule
increase and may receive either none or one-half of the increase. Pay
increases for employees receiving retained rates will be determined in
accordance with 5 U.S.C. 5363 except that those with an average
performance score of less than 2.0 may receive either none or one-
quarter of the increase in the maximum rate of basic pay for the
applicable pay band.
BILLING CODE 6325-01-P
[[Page 14589]]
Figure 1. Relation Between Shares Earned for Performance and
Average Performance Score
[GRAPHIC] [TIFF OMITTED] TN25MR98.011
BILLING CODE 6325-01-C
(b) The minimum and maximum pay rates of basic pay for each pay
band in an occupational family will be adjusted by any general pay
increase to reflect the new rates in accordance with the criteria
reflected in Section III, A, Broadbanding, of this plan. The maximum
pay rate for pay band VI cannot exceed the rate for SES level 4.
Therefore, employees at or near the top of pay band VI may not receive
the full general increase if it is not authorized for SES employees.
2. Performance Evaluation
The performance appraisal system will link compensation to
performance through annual performance evaluations and performance
ratings. Performance will be evaluated against generic performance
standards. Rating elements will be provided for all employees. All
rating elements will be critical and scored on a scale of 0 to 5. The
score will be based on employees performance as evaluated against
generic performance standards for each element. The supervisor will
discuss performance rating standards with the employee to clarify
performance criteria at the beginning of the rating period. The generic
performance standards, with the provision to add specific work plans,
will be used to evaluate employee performance. The standards will
describe the level of performance required for the employee to be rated
fully successful. Reviews will be conducted at least at mid-year to
evaluate employee progress in meeting performance standards. However,
WES interns in recognized career programs will be appraised semi-
annually until they complete their internship. The last performance
rating in each annual cycle will be considered to be the rating of
record.
Since all employees will not have the same number of rating
elements, the element scores will be summed and averaged by the number
of elements rated to determine the overall performance score. The score
will be used for setting performance pay increases and determining
eligibility for performance awards.
Employees must have an average performance score of 2.5 and above
to be eligible for performance pay increases. Employees with an average
performance score of 2.0 or greater will be eligible for performance
awards and full General Schedule increases. Employees with an average
score of less than 2.0 will be ineligible for performance awards and
full General Schedule increases. A within-the-year review may be used
to reevaluate employees with performance scores of less than 2.0. If
the employee's performance has improved sufficiently since the last
rating period, the employee may be eligible for a nonretroactive
General Schedule pay raise at that time.
3. Awards
WES currently has an extensive awards program consisting of both
internal and external awards. On-the-spot, special act, and other
internal awards (both monetary and nonmonetary) will continue under the
project. MACOM, DA, and DoD awards and other honorary noncash awards
will be retained.
Cash awards may be given for performance and to recognize and
encourage special contributions. Awards can be made to individuals,
teams, or organizations. Awards must be approved at a managerial level
at least one level higher than the recommending official except in the
case where the WES Director is the recommender. Cash awards will not be
considered to be a part of base pay.
D. Pay Setting Provisions
1. Pay and Compensation
(a) Pay Ceilings. An employee's total monetary compensation paid in
a calendar year may not exceed the rate of basic pay for level I of the
Executive Schedule consistent with 5 U.S.C. 5307 and 5 CFR part 530,
subpart B. Each pay band will have its own pay ceiling, just as grades
do in the GS system. Basic pay rates for the various pay bands will be
directly keyed to the GS basic rates of pay except for pay band VI in
the Engineers and Scientists occupational family. Pay band VI will have
pay rates keyed to a minimum of 120% of the
[[Page 14590]]
minimum rate of basic pay for GS-15 basic pay with a maximum of the
basic rate of pay established for SES level 4.
(b) Staffing Supplements. Employees assigned to occupational series
and geographic areas covered by special rates will be eligible for a
staffing supplement if the maximum adjusted rate for the banded GS
grades to which assigned is a special rate that exceeds the maximum GS
locality rate for the banded grades (e.g., certain engineers in pay
bands II and III). The staffing supplement is added to the base pay,
much like locality rates are added to base pay. The employee's total
pay immediately after implementation of the demonstration project will
be the same as immediately before the demonstration project, but a
portion of the total will be in the form of a staffing supplement.
Adverse action and pay retention provisions will not apply to the
conversion process as there will be no change in total salary. The
staffing supplement is calculated as described below.
Upon conversion, the demonstration base rate will be established by
dividing the old GS adjusted rate (the higher of special rate or
locality rate) by the staffing factor. The staffing factor will be
determined by dividing the maximum special rate for the banded grades
by the GS unadjusted rate corresponding to that special rate (step 10
of the GS rate for the same grade as the special rate). The employee's
demonstration staffing supplement is derived by multiplying the
demonstration base rate by the staffing factor minus one. So the
employee's final demonstration special staffing rate equals the
demonstration base rate plus the special staffing supplement; this
amount will equal the employee's former GS adjusted rate. Simplified,
the formula is:
[GRAPHIC] [TIFF OMITTED] TN25MR98.012
Staffing supplement=Demonstration base rate x (staffing factor--1)
Salary upon conversion=Demonstration base rate + staffing supplement
(sum will = existing rate)
Example: In the case of a GS-801-11/03 employee who is receiving a
special salary rate, the salary before the demonstration project is
$42,944. The maximum special rate for a GS-801-11 Step 10 is $51,295
and the corresponding regular rate is $46,523. The staffing factor is
computed as follows:
[GRAPHIC] [TIFF OMITTED] TN25MR98.013
Then to determine the staffing supplement, multiply the
demonstration base by the staffing factor minus 1.
[GRAPHIC] [TIFF OMITTED] TN25MR98.014
The staffing supplement of $3,996 is added to the demonstration
base rate of $38,948 and the total salary is $42,944, which is the
salary of the employee before conversion to the demonstration project.
If an employee is in a band where the maximum GS adjusted rate for
the banded grades is a locality rate, when the employee is converted
into the demonstration, the demonstration base rate is derived by
dividing the employee's former GS adjusted rate (the higher of locality
or special rate) by the applicable locality pay factor. The employee's
demonstration locality-adjusted rate will equal the employee's former
GS adjusted rate.
Any General Schedule or special rate schedule adjustment will
require recomputation of the staffing supplement. Employees receiving a
staffing supplement remain entitled to an underlying locality rate,
which may over time supersede the need for a staffing supplement. If
OPM discontinues or decreases a special rate schedule, affected
employees will be entitled to pay retention. Upon geographic movement,
an employee who receives the special staffing supplement will have the
supplement recomputed. Any resulting reduction in pay will not be
considered an adverse action or a basis for pay retention.
Established salary including the staffing supplement will be
considered basic pay for the same purposes as a locality rate under 5
CFR 531.606(b), i.e., for purposes of retirement, life insurance,
premium pay, and severance pay purposes and for advances in pay. It
will also be used to compute worker's compensation payments and lump
sum payments for accrued and accumulated annual leave.
2. Promotions
A promotion is the movement of an employee to a higher pay band
within the same occupational family or to a pay band in a different
occupational family which results in an increase in the employee's
salary. Progression within a pay band, whether by performance pay
increases or supervisory adjustments, are not subject to the provisions
of this section.
Promotions will be processed under competitive procedures in
accordance with merit principles and requirements. The following
actions are excepted from competitive procedures:
(a) Re-promotion to a position which is in the same pay band and
occupational family as the employee previously held on a permanent
basis within the competitive service.
(b) Promotion, reassignment, demotion, transfer, or reinstatement
to a position having promotion potential no greater than the potential
of a position an employee currently holds or previously held on a
permanent basis in the competitive service.
(c) A position change permitted by RIF procedures.
(d) Promotion without current competition when the employee was
appointed through competitive
[[Page 14591]]
procedures to a position with a documented career ladder.
(e) A temporary promotion, or detail to a position in a higher pay
band, of 180 days or less.
(f) Impact of person-in-the-job promotions.
(g) Promotion resulting from the accretion of duties and
responsibilities.
(h) A promotion resulting from the correction of an initial
classification error.
Upon promotion to a higher pay band, an employee will be entitled
to a 6 percent basic pay increase or the lowest level in the pay band
to which promoted, whichever is greater.
3. Link Between Promotion and Performance
Noncompetitive promotions (e.g., accretion of duties, recognition
of impact of person-in-job, career ladder) will require an acceptable
level of performance in their current position. To be promoted
noncompetitively from one band to the next within an occupational
family, an employee must meet the minimum qualifications for the job
and have a current average performance score of 2.5 or above (Section
III, C, Pay for Performance) or equivalent under a different
performance management system (an equivalence chart will be developed
by HRM specialists and included in the implementation instructions).
Selection of employees through competitive procedures will require a
current average performance score of 2.5 or above.
4. Supervisory Pay Adjustments
Supervisory pay adjustments may be used, at the discretion of the
WES Director, to compensate employees in the Engineers and Scientists
occupational family in supervisory positions. Employees in pay band VI
of the Engineers and Scientists occupational family are excluded from
receiving supervisory pay adjustments. Supervisory pay adjustments are
increases to the supervisor's basic rate of pay, ranging up to 10
percent of that pay rate, subject to the constraint that the adjustment
may not cause the employee's basic rate of pay to exceed the pay band
maximum rate. Only employees in supervisory positions with formal
supervisory authority meeting that required for coverage under the OPM
GS Supervisory Guide will be considered for the supervisory pay
adjustment. Criteria to be considered in determining the pay increase
percentage include the following organizational and individual employee
factors: needs of the organization to attract, retain, and motivate
high quality supervisors; budgetary constraints; years of supervisory
experience; amount of supervisory training received; performance; and
managerial impact on the organization.
Conditions, after the date of conversion into the demonstration
project, under which the application of a supervisory pay adjustment
will be considered are as follows:
(a) New hires into supervisory positions will have their initial
rate of basic pay set at the supervisor's discretion within the pay
range of the applicable pay band. This rate of pay may include a
supervisory pay adjustment determined using the ranges and criteria
outlined above.
(b) An employee selected for a supervisory position that is within
the employee's current pay band may also be considered for a
supervisory pay adjustment.
(c) If a supervisor is already authorized a supervisory pay
adjustment and is subsequently selected for another supervisory
position, within the same pay band, then the supervisory pay adjustment
will be redetermined.
(d) An employee promoted to a supervisory position in a higher pay
band may be considered for a supervisory adjustment in addition to the
pay increase that resulted from the promotion.
Supervisors, upon initial conversion into the demonstration project
into the same, or substantially similar position, will be converted at
their existing basic rate of pay and will not be given a supervisory
pay adjustment at conversion.
Before supervisory employees may receive the pay adjustment, they
must sign a statement acknowledging that the entire adjustment will be
immediately withdrawn if they are removed from the supervisory position
because of unacceptable performance or conduct. Supervisory employees
who are reassigned to a nonsupervisory position for any other reasons
(i.e., employee choice, management directed reassignment, or RIF) will
receive one-half of the pay adjustment for one year following the
reassignment. Eliminations or reductions in supervisory pay adjustments
are not adverse actions, are not subject to appeal, and are not covered
under pay retention provisions.
5. Supervisory Pay Differentials
Supervisory pay differentials may be used, at the discretion of the
WES Director, to incentivize and reward supervisors in the Engineers
and Scientists occupational family in pay bands IV and V whose pay is
at the maximum rate of the pay band. Employees in pay band VI of the
Engineers and Scientists occupational family are excluded from
receiving supervisory pay differentials. Formal supervisory authority
meeting that required for coverage under the OPM GS Supervisory Guide
is required. A supervisory pay differential is a cash incentive, paid
out on a pay period basis, which is not included as part of the
supervisor's basic rate of pay. The differential may be up to 10
percent of the supervisor's basic rate of pay. Criteria to be
considered in determining the amount of this supervisory pay
differential includes those identified for supervisory pay adjustments.
Supervisors, upon initial conversion into the demonstration project
into the same, or substantially similar position, will be converted at
their existing basic rate of pay and will not be given a supervisory
pay differential upon conversion. The differential will be terminated
if the employee is removed from a supervisory position, regardless of
cause.
As specified in the Supervisory Pay Adjustment Section, all
personnel actions involving a supervisory differential will require a
statement signed by the employee acknowledging that the differential
may be terminated or reduced at the discretion of the WES Director. The
termination or reduction of the differential is not an adverse action,
is not subject to appeal, and is not covered under pay retention
provisions.
E. Hiring and Placement Authorities
1. Modified Term Appointments
WES conducts many research and development projects that range from
3 to 6 years. The current 4-year limitation on term appointments
imposes a burden on laboratory managers by forcing the termination of
some term employees prior to completion of projects they were hired to
support. This disrupts the research and development process and reduces
the ability of WES to serve its customers.
Under the demonstration project, WES will have the authority to
hire individuals under modified term appointments. These appointments
will be used to fill positions for a period of more than 1 year but not
more than 5 years when the need for employee's services is not
permanent. The modified term appointments differ from term employment
as described in 5 CFR part 316 in that they may be made for a period
not to exceed 5, rather than 4 years. The WES Director is authorized to
[[Page 14592]]
extend a term appointment 1 additional year.
Employees hired under the modified term appointment authority may
be eligible for conversion to career-conditional appointments. To be
converted, the employee must: have been selected for the term position
under competitive procedures, with the announcement specifically
stating that the individual(s) selected may be eligible for conversion
to a career-conditional appointment at a later date; have served 2
years of continuous service in the term position; be selected under WES
merit promotion procedures for the permanent position; and have a
current performance score of 2.5 or better.
Employees serving under term appointments at the time of conversion
to the demonstration project will be converted to the new modified term
appointments provided they were hired for their current positions under
competitive procedures. These employees will be eligible for conversion
to career-conditional appointment if they have a current performance
score of 2.5 or better and are selected under merit promotion
procedures for the permanent position after having completed 2 years of
continuous service. Time served in term positions prior to conversion
to the modified term appointment is creditable, provided the service
was continuous. Employees serving under modified term appointments
under this plan will be covered by the plan's pay-for-performance
system.
2. Extended Probationary Period
A new employee needs to demonstrate adequate contribution during
all cycles of a research effort for a laboratory manager to render a
thorough evaluation. The current 1-year probationary period will be
extended to 2 years for all newly hired career employees in the
Engineers and Scientists occupational family. The purpose of extending
the probationary period is to allow supervisors an adequate period of
time to fully evaluate an employee's contribution and conduct.
Aside from extending the time period, all other features of the
current probationary period, including the criteria for crediting prior
service and the limited notice and appeal rights, are retained. The
requirements for conversion to career tenure are unchanged. Employees
appointed prior to the implementation date will not be affected.
Probationary employees will be terminated when the employee fails
to demonstrate proper conduct, technical competency, and/or adequate
work contribution for continued employment. When WES decides to
terminate an employee serving a probationary period because their work
contribution or conduct during this period fails to demonstrate their
fitness or qualifications for continued employment, it shall terminate
their services by written notification of the reasons for separation
and the effective date of the action. The information in the notice as
to why the employee is being terminated shall, as a minimum, consist of
WES's conclusions as to the inadequacies of their work contribution or
conduct.
3. Voluntary Emeritus Program
Under the demonstration project, the WES Director will have the
authority to offer retired or separated engineers and scientists
voluntary assignments in the laboratory. This authority will include
engineers and scientists 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 buy-outs or severance payments based on an earlier
separation from Federal service. The Voluntary Emeritus Program will
ensure continued quality research while reducing the overall salary
line by allowing 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 engineers and scientists could accept retirement
and return to provide valuable on-the-job training or mentoring to less
experienced employees.
To be accepted into the emeritus program, a volunteer must be
recommended by a Laboratory Director to the WES Director. Everyone who
applies is not entitled to a voluntary assignment. The WES Director
must clearly document the decision process for each applicant (whether
accepted or rejected) and retain the documentation.
To ensure success and encourage participation, the volunteer's
federal retirement pay (whether military or civilian) will not be
affected while serving in a voluntary capacity. Retired or separated
federal employees may accept an emeritus position without a 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 and WES. The
agreement will be reviewed by the local Office of Counsel for ethics
determinations under the Joint Ethics Regulation. The agreement must be
finalized before the assumption of duties and shall include:
(a) A statement that the voluntary assignment does not constitute
an appointment in the civil service and is without compensation and any
and all claims against the Government because of the voluntary
assignment are waived by the volunteer;
(b) A statement that the volunteer will be considered a federal
employee for the purpose of injury compensation;
(c) Volunteer's work schedule;
(d) Length of agreement (defined by length of project or time
defined by weeks, months, or years);
(e) Support provided by the laboratory (travel, administrative,
office space, supplies);
(f) A one page Statement of Duties;
(g) A provision that states no additional time will be added to a
volunteer's service credit for such purposes as retirement, severance
pay, and leave as a result of being a member of the Voluntary Emeritus
Program;
(h) A provision allowing either party to void the agreement with 10
working days written notice; and
(i) The level of security access required (any security clearance
required by the assignment will be managed by the laboratory while the
volunteer is a member of the Voluntary Emeritus Program).
F. Employee Development
The objective of the employee development program will be to
develop the competence of employees for maximum achievement of
Laboratory, MACOM, DA, and DoD goals. WES will continue its employee
development programs, such as local training, off-site training, long-
term training, and developmental assignments. Under this Project, the
opportunity to apply for expanded developmental opportunities to
include sabbaticals and training for degrees, which was previously
restricted, will be made available to permanent employees.
1. Sabbatical
WES will have the authority to grant paid sabbaticals to career
employees to permit them to engage in study or uncompensated work
experience that
[[Page 14593]]
will contribute to their development and effectiveness. Each sabbatical
should benefit WES as well as increase the employee's individual
effectiveness. Examples are as follows: advanced academic teaching,
study, or research; self-directed (independent) or guided study; and
on-the-job work experience with a public, private, or nonprofit
organization. Each recipient of a sabbatical must sign a continued
service agreement and agree to serve a period equal to at least three
times the length of the sabbatical.
2. Degree Training
Degree training is an essential component of an organization that
requires continuous acquisition of advanced and specialized knowledge.
Degree training in the academic environment of DoD laboratories is also
a critical tool for recruiting and retaining employees with or
requiring critical skills. Constraints under current law and regulation
limit degree payment to shortage occupations. In addition, current
government-wide regulations authorize payment for degrees based only on
recruitment or retention needs. Degree payment is currently not
permitted for non-shortage occupations involving critical skills.
Under the Personnel Demonstration Project, WES will expand the
authority to provide degree training for purposes of meeting critical
skill requirements, to ensure continuous acquisition of advanced and
specialized knowledge essential to the organization, and to recruit and
retain personnel critical to the present and future requirements of the
organization. It is expected that the degree payment authority will be
used primarily for attainment of advanced degrees.
G. Reduction in Pay or Removal Actions
Employees covered by the project will be evaluated under a
performance evaluation system that affords grievance and/or appeal
rights the same as those provided currently.
1. Unacceptable Performance
An employee whose performance is unacceptable (i.e.,who does not
perform at the acceptable level described by the standards for a
particular critical element, and whose performance thus warrants a
performance score of 0 on that element) at any time during the year
shall be placed in a Performance Improvement Plan (PIP). If an employee
is in a PIP at the end of a rating period, the performance rating will
be delayed until the end of the PIP. Any General Schedule increase will
be based on the rating at the end of the PIP. If performance remains
unsatisfactory upon completion of the PIP, the employee will be
separated from his or her position or reduced to a lower pay band. If
performance becomes satisfactory, the employee will receive a
performance rating of record and appropriate adjustments to pay may be
made at that time (i.e., granting General Schedule increase). These
performance-based actions will follow the same procedures as current
performance-related removals and reductions in grade under Chapter 43
or Chapter 75 when appropriate.
2. Placement in a Lower Pay Band
An employee with an average performance score of less than 2.0 is
ineligible for a performance pay increase or performance award and may
receive either none or one-half the General Schedule pay increase.
Because the minimum pay rate for each pay band will be increased each
year by the amount of the General Schedule increase, it is possible
that the new minimum rate of a pay band will exceed the basic pay of an
employee in that band who did not receive the full General Schedule
increase. In these cases, the employee will be moved to the next lower
band level. This will not be considered an adverse action, will not be
appealable through a statutory appeals process, and will not be covered
under grade retention provisions.
H. Revised Reduction in Force (RIF) Procedures
Modifications include limiting competitive areas to occupational
families and increasing the emphasis on performance in the RIF process.
These modifications will increase the probability of retaining the
highest performing individuals in their positions and will increase the
probability of displacing the lowest performing individuals.
1. Competitive Areas
For RIF purposes, the competitive area will be the occupational
family in which the employee is assigned and will cover all geographic
locations.
2. Retention
Retention registers will be established based on the following
criteria listed in order of priority: Tenure status (Tenure I-career,
Tenure II-career conditional, Tenure III-modified term); veteran's
preference; most recent employee performance score; and service
computation date. Modified term employees within the affected
occupational family will be separated before permanent Tenure I and II
employees. The present RIF system essentially remains in effect, except
that performance scores are part of the retention order. Performance
scores will not be used to adjust the service computation date. The
service computation date will be used as a tie breaker. A preference
eligible with a compensable service-connected disability of 30 percent
or more may displace employees in positions equivalent to 5 GS grades
below the minimum grade level of his/her current pay band. Other
employees may displace employees in positions no more than two pay band
levels below the minimum level of his/her current pay band. Increasing
the emphasis on job performance will help ensure the retention of
outstanding individuals in RIF situations.
In some cases, an employee may not have a performance score of
record. In these situations, a modal performance score will be
assigned.
An employee who has received a written decision to demote him/her
to a lower pay band competes in a RIF from the position to which he/she
has been demoted. Employees who have been demoted for unacceptable
performance or conduct, and as of the date of issuance of the RIF
notice have not received a performance score in the position to which
demoted, will receive a modal performance score.
An employee who has received an improved performance score
following a PIP will have the improved performance score considered as
the current performance score of record, provided that notification of
such improvement is approved and received prior to the cutoff for
receipt of personnel actions associated with implementation of RIF
mechanics.
An employee with a current rating of unsatisfactory has assignment
rights only to a position held by another employee who has a rating of
unsatisfactory. An employee who has been given a written decision of
removal will not compete in the RIF process.
Modified term appointment employees are in Tenure Group III for
reduction in force purposes. Reduction in force procedures are not
required when separating these employees when their appointments
expire.
3. Grade and Pay Retention
Except where waived or modified in the waiver section of this plan,
grade and pay retention will follow current law and regulations.
IV. Training
The key to the success or failure of the proposed demonstration
project will be
[[Page 14594]]
the training provided for all involved. This training will not only
provide the necessary knowledge and skills to carry out the proposed
changes, but will also lead to commitment to the program on the part of
all participants. Training will be tailored to fit the requirements of
every employee included in the project and will fully address employee
concerns to ensure that everyone has a comprehensive understanding of
the program.
Training at the beginning of implementation and throughout the
demonstration will be provided to supervisors, employees, and the
administrative staff responsible for assisting managers in effecting
the changeover and operation of the new system.
The elements to be covered in the orientation portion of this
training will include the following: A description of the system; how
employees are converted into the system; pay adjustment process;
familiarization with the new position descriptions and performance
objectives; the individual performance rating process; the
reconsideration process; and the demonstration project administrative
and formal evaluation process.
A. Supervisors
The focus of this project on management-centered personnel
administration, with increased supervisory and managerial personnel
management authority and accountability, demands thorough training of
supervisors and managers in the knowledge and skills that will prepare
them for their new responsibilities. Training will include detailed
information on the policies and procedures of the demonstration
project, skills training in using the classification system, position
description preparation, and performance evaluation. Additional
training may focus on nonproject procedural techniques such as
interpersonal and communication skills.
B. Administrative Staff
The administrative staff, generally personnel specialists,
technicians, and administrative officers, will play a key role in
advising, training, and coaching supervisors and employees in
implementing the demonstration project. This staff will need training
in the procedural and technical aspects of the project.
C. Employees
WES will train employees covered under the demonstration project.
In the months leading up to the implementation date, meetings will be
held for employees to fully inform them of all project decisions,
procedures, and processes.
V. Conversion
A. Conversion to the Demonstration Project
Initial entry into the demonstration project for covered employees
will be accomplished through a full employee protection approach that
ensures each employee an initial place in the appropriate occupational
family and pay band without loss of pay. An automatic conversion from
current GS/GM grade and pay into the new broadbanding system will be
accomplished.
Special conversion rules will apply to special rate employees (see
Section III, D, Pay Setting Provisions). Employees who enter the
demonstration project later by lateral reassignment or transfer will be
subject to the same pay conversion rules. Employees serving under
regular term appointments at the time of project implementation will be
converted to the modified term appointment. Position announcements,
etc., will not be required for these term appointments. If conversion
into the demonstration project is accompanied by a geographic move, the
employee's GS pay entitlements in the new geographic area must be
determined before performing the pay conversion.
Employees who are on temporary promotions at the time of conversion
will be converted to a pay band commensurate with the grade of the
position to which temporarily promoted. At the conclusion of the
temporary promotion, the employee will revert to the pay band which
corresponds to the grade of record. When a temporary promotion is
terminated, the employee's pay entitlements will be determined based on
the employee's position of record, with appropriate adjustments to
reflect pay events during the temporary promotion, subject to the
specific policies and rules established by WES. In no case may those
adjustments increase the pay for the position of record beyond the
maximum pay rate for the applicable pay band. The only exception will
be if the original competitive promotion announcement stipulated that
the promotion could be made permanent; in these cases, actions to make
the temporary promotion permanent will be considered and, if
implemented, will be subject to all existing priority placement
programs.
At the time of conversion, each employee will have their basic pay
adjusted for the time credited (in weeks) toward what would have been
the employee's next within-grade increase. This adjustment in basic pay
is applicable when employees are converted into the project.
Any employee covered by the project that is located at a permanent
duty station Outside the Continental United States will continue to be
ineligible for locality pay. Except for the maximum rate of basic pay
for pay band VI, which will be limited to rate of basic pay for SES
level 4, the maximum basic salary payable in the pay band will be
limited to the maximum rate of pay on the GS salary table which does
not include any locality pay.
B. Conversion From the Demonstration Project
If a demonstration project employee is moving to a GS position not
under the demonstration project, or if the project ends and each
project employee must be converted back to the GS system, the following
procedures will be used to convert the employee's project pay band to a
GS equivalent grade and the employee's project rate of pay to GS
equivalent rates of pay. The converted GS grade and rates of pay must
be determined before movement or conversion out of the demonstration
project and any accompanying geographic movement, promotion, or other
simultaneous action. For conversions upon termination of the project
and for lateral reassignments, the converted GS grade and rates of pay
will become the employee's actual GS grade and rates of pay after
leaving the demonstration project (before any other action). For
transfers, promotions, and other actions, the converted GS grade and
rates of pay will be used in applying any GS pay/administration rules
applicable in connection with the employee's movement out of the
project (i.e., promotion rules, highest previous rate rules, pay
retention rules) as if the GS converted grade and rates of pay were
actually in effect immediately before the employee left the
demonstration project.
1. Grade-Setting Provisions
An employee in a pay band corresponding to a single GS grade is
converted to that grade. An employee in a pay band corresponding to two
or more grades is converted to one of those grades according to the
following rules:
(a) The employee's adjusted rate of basic pay under the
demonstration project (including any locality payment or staffing
supplement but excluding any supervisory pay adjustment) is compared
with step 4 rates in the
[[Page 14595]]
highest applicable GS rate range. For this purpose, a ``GS rate range''
includes a rate range in the GS base schedule, the locality rate
schedule for the locality pay area in which the position is located, or
the appropriate special rate schedule for the employee's occupational
series, as applicable. If the series is a two-grade interval series,
only odd-numbered grades are considered below GS-11.
(b) If the employee's adjusted project rate equals or exceeds the
applicable step 4 rate of the highest GS grade in the band, the
employee is converted to that grade.
(c) If the employee's adjusted project rate of pay is lower than
the applicable step 4 rate of the highest grade, the adjusted rate of
pay is compared with the step 4 rate of the second highest grade in the
employee's pay band. If the employee's adjusted rate of pay equals or
exceeds step 4 rate of the second highest grade, the employee is
converted to that grade.
(d) This process is repeated for each successively lower grade in
the band until a grade is found in which the employee's adjusted
project rate of pay equals or exceeds the applicable step 4 rate of the
grade. The employee is then converted at that grade. If the employee's
adjusted rate of pay is below the step 4 rate of the lowest grade in
the band, the employee is converted to the lowest grade.
(e) Exception: If the employee's adjusted project rate of pay
exceeds the maximum rate of the grade assigned under the above-
described ``step 4'' rule but fits in the rate range for the next
higher applicable grade (i.e., between step 1 and step 4), then the
employee shall be converted that next higher applicable grade.
(f) Exception: An employee will not be converted to a lower grade
than the grade held by the employee immediately preceding a conversion,
lateral reassignment, or lateral transfer into the project, unless
since that time the employee has undergone a reduction in band.
2. Pay-Setting Provisions
An employee's pay within the converted GS grade is set by
converting the employee's demonstration project rates of pay to GS
rates of pay in accordance with the following rules:
(a) The pay conversion is done before any geographic movement or
other pay-related action that coincides with the employee's movement or
conversion out of the demonstration project.
(b) An employee's adjusted rate of basic pay under the project
(including any locality payment or staffing supplement but excluding
any supervisory pay adjustment) is converted to a GS adjusted rate of
pay on the highest applicable GS rate range for the converted GS grade.
For this purpose, a ``GS rate range'' includes a rate range in the GS
base schedule, an applicable locality rate schedule, or an applicable
special rate schedule.
(c) If the highest applicable GS rate range is a locality pay rate
range, the employee's adjusted project rate of pay is converted to a GS
locality rate of pay. If this rate falls between two steps in the
locality-adjusted schedule, the rate of pay must be set at the higher
step. The converted GS unadjusted rate of basic pay would be the GS
base rate corresponding to the converted GS locality rate (i.e., same
step position). If this employee is also covered by a special rate
schedule as a GS employee, the converted special rate will be
determined based on the GS step position. This underlying special rate
will be basic pay for certain purposes for which the employee's higher
locality rate is not basic pay.
(d) If the highest applicable GS rate range is a special rate
range, the employee's adjusted project rate is converted to a special
rate. If this rate falls between two steps in the special rate
schedule, the rate must be set at the higher step. The converted GS
unadjusted rate of basic pay will be the GS rate corresponding to the
converted special rate (i.e., same step position).
3. Engineers and Scientists Pay Band VI Employees
Employees in pay band VI of the Engineers and Scientists
occupational family will convert out of the demonstration project at
the GS-15 level. WES will develop a procedure to ensure that employees
entering pay band VI understand that if they leave the demonstration
project and their adjusted pay exceeds the GS-15, step 10 rate, there
is no entitlement to retained pay; their GS equivalent rate will be
deemed to be the rate for GS-15, step 10. For those pay band VI
employees paid below the adjusted GS-15, step 10 rate, the converted
rates will be set in accordance with paragraph 2 above.
4. Employees With Band or Pay Retention
(a) If an employee is retaining a pay band level under the
demonstration project, apply the procedures in paragraphs 1 and 2,
above, using the grades encompassed in the employee's retained band to
determine the employee's GS equivalent retained grade and pay rate. The
time in a retained band under the demonstration project counts toward
the 2-year limit on grade retention in 5 U.S.C. 5382.
(b) If an employee is retaining rate under the demonstration
project, the employee's GS equivalent grade is the highest grade
encompassed in his or her band level. WES will coordinate with OPM to
prescribe a procedure for determining the GS equivalent pay rate for an
employee retaining a rate under the demonstration project.
5. Within-Grade Increase--Equivalent Increase Determinations
Service under the demonstration project since the last pay-for-
performance determination is creditable for within-grade increase
purposes upon conversion back to the GS pay system. Performance pay
increases (including a zero increase) under the demonstration project
are equivalent increases for the purpose of determining the
commencement of a within-grade increase waiting period under 5 CFR
531.405(b).
VI. Project Duration
Public Law 103-337 removed any mandatory expiration date for this
demonstration. The project evaluation plan adequately addresses how
each intervention will be comprehensively evaluated for at least the
first 5 years of the demonstration (Proposed Plan for the Evaluation of
the DoD Laboratory Demonstration Program, OPM, 1995). Major changes and
modifications to the interventions can be made through announcement in
the Federal Register and would be made if formative evaluation data
warranted. At the 5 year point, the entire demonstration will be
reexamined for either: permanent implementation; change and another 3-5
year test period; or expiration.
VII. Evaluation Plan
Authorizing legislation mandated evaluation of the demonstration
project to assess the merits of project outcomes and to evaluate the
feasibility of applications to other federal organizations. A
comprehensive and methodologically rigorous evaluation of the personnel
system changes will be carried out. The overall evaluation consists of
two components--external and internal evaluation. The external
evaluation will be conducted by OPM's Personnel Resources and
Development Center (PRDC) to benefit from their extensive experience
evaluating demonstration projects. PRDC will serve in the role of
external evaluator to ensure the integrity of the evaluation process,
outcomes, and interpretation of results. Their external evaluation will
be supplemented by an internal evaluation
[[Page 14596]]
to be accomplished by the staff of WES. Selected parts of the
evaluation will be completed using contractor support. The
contractor(s) will be well qualified and experienced with demonstrated
expertise in performing relevant support functions.
Essential elements of the evaluation plan are set forth below. The
demonstration project is a complex experiment to be conducted in a
dynamic environment over several years. Modifications and refinements
to the evaluation plan will be made as required by mid-course project
changes. All additions, deletions, and refinements to the current plan
will be fully documented and explained as part of the evaluation
reporting process. The main purpose of the evaluation is to determine
the effectiveness of the personnel system changes described by the
individual interventions. Every effort will be made to establish direct
cause-and-effect relationships between the interventions and
effectiveness criteria. An ancillary objective is to assess the effects
of the interventions on improved organizational performance. An
indirect causal link is hypothesized between the personnel system
changes and improved organizational effectiveness, i.e., improved
laboratory performance, mission accomplishment, and customer
satisfaction. The current personnel management system with its many
rigid rules and regulations often is perceived as a barrier to mission
accomplishment. Together, the demonstration project initiatives are
intended to remove some of those barriers, and therefore, are expected
to contribute to improved laboratory performance.
The evaluation effort will be accomplished in four distinct phases:
(a) Design phase--includes development of the evaluation model,
selection of experimental and comparison sites, and collection of
baseline data prior to implementation.
(b) Implementation phase--includes actual project implementation
and monitoring of the degree and support of implementation to assure
that each of the project interventions has been operationalized as
originally conceived.
(c) Formative evaluation phase--includes data collection and
analysis for five years for purposes of evaluating the effects of the
interventions. Periodic reports and annual summaries will be prepared
to document the findings.
(d) Summative evaluation phase--focuses on summary evaluation and
overall assessment of the project's impact, including presentation of
conclusions and final recommendations upon completion of the project.
An intervention impact model (Appendix A) will be used to measure
the effectiveness of the various personnel system changes or
interventions. Additional measures will be developed as new
interventions are introduced or existing interventions modified with
consistent with expected effects. Measures may also be deleted when
appropriate. Activity specific measures may also be developed to
accommodate specific needs or interests which are locally unique.
The evaluation model for the Demonstration Project identifies
elements critical to an evaluation of the effectiveness of the
interventions. The overall evaluation approach will also include
consideration on context variables that are likely to have an impact on
project outcomes (e.g., HRM regionalization, downsizing, cross-service
integration, and the general state of the economy). However, the main
focus of the evaluation will be on intermediate outcomes, i.e., the
results of specific personnel system changes which are expected to
improve human resources management. The ultimate outcomes are defined
as improved organizational effectiveness, mission accomplishment, and
customer satisfaction.
Data from a variety of different sources will be used in the
evaluation. Information from existing management information systems
supplemented with perceptual data will be used to assess variables
related to effectiveness. Multiple methods provide more than one
perspective on how the demonstration project is working. Information
gathered through one method will be used to validate information
gathered through another. Confidence in the findings will increase as
they are substantiated by the different collection methods. The
following types of data will be collected as part of the evaluation:
workforce data; personnel office data; employee attitudes and feedback
using surveys, structured interviews and focus groups; local activity
histories, and core measures of laboratory effectiveness.
VIII. Demonstration Project Costs
Costs associated with the development of the personnel
demonstration system include software automation, training, and project
evaluation. All funding will be provided through the WES budget. The
projected annual expenses for each area is summarized in Table 4.
Table 4.--Projected Developmental Costs
----------------------------------------------------------------------------------------------------------------
FY 96 FY 97 FY 98 FY 99 FY 00 FY 01
----------------------------------------------------------------------------------------------------------------
Training...................................... ......... $97K $19K ......... ......... .........
Project Evaluation............................ $25K 60K 60K $60K $60K $60K
Automation.................................... 80K 10K ......... ......... ......... .........
-----------------------------------------------------------------
Totals.................................... 105K 167K 79K 60K 60K 60K
----------------------------------------------------------------------------------------------------------------
IX. Required Waivers to Law and Regulations
Public Law 103-337 gave the DoD the authority to experiment with
several personnel management innovations. In addition to the
authorities granted by the law, the following are the waivers of law
and regulation that will be necessary for implementation of the
Demonstration Project. In due course, additional laws and regulations
may be identified for waiver request.
A. Waivers to Title 5, U.S. Code
Section 3111, Acceptance of volunteer service.
Section 3132, The Senior Executive Service; definitions and
exclusions.
Section 3324, Appointments to positions classified above GS-15.
Section 3341, Details (to the extent that non-competitive details
to higher band levels can now be 180 days rather than 120).
Section 4107, Non-Government facilities; restrictions (to the
extent that training may be paid for the purpose of an employee to
obtain a degree).
Section 4108, Employee agreements; service after training (to the
extent that continued service is required only for long-term training
and sabbaticals).
Section 4303(f), Actions based on unacceptable performance (to the
extent
[[Page 14597]]
necessary to: (1) Substitute ``pay band'' for ``grade'' and (2) provide
that moving to a lower pay band as a result of not receiving the full
amount of a general pay increase because of poor performance is not an
action covered by the provisions of section 4303).
Sections 5101-5111, Purpose, definitions, basis, classification of
positions, review, authority (to the extent that white collar employees
will be covered by broadbanding. Pay category determination criteria
for Federal Wage System positions remain unchanged).
Sections 5301; 5302 (8), and (9); 5303; and 5304, Pay comparability
system (Sections 5301, 5302, and 5304 are waived only to the extent
necessary to allow: (1) Demonstration project employees to be treated
as General Schedule employees; (2) basic rates of pay under the
demonstration project to be treated as scheduled rates of basic pay;
and (3) employees in band VI of the Engineers and Scientists
occupational family to be treated as ST employees for the purposes of
these provisions).
Section 5305, Special pay authority.
Sections 5331-5336, General Schedule pay rates.
Sections 5361-5366, Grade and pay retention (to the extent
necessary to (1) replace ``grade'' with ``pay band'; (2) allow
demonstration project employees to be treated as General Schedule; (3)
provide that pay band retention provisions do not apply to movements to
a lower pay band as a result of receiving no or only part of a general
pay increase because of poor performance; (4) provide that pay
retention provisions do not apply to conversions from General Schedule
special rates to demonstration project pay, as long as total pay is not
reduced, and to reductions in pay due solely to the removal of all or
part of a supervisory pay adjustment upon leaving a supervisory
position; (5) provide that an employee on pay retention whose
performance rating is less than 2.0 is not entitled to 50 percent of
the amount of the increase in the maximum rate of basic pay payable for
the pay band of the employee's position; and (6) ensure that for
employees of pay band VI of the Engineers and Scientists occupational
family, pay band retention is not applicable and pay retention
provisions are modified so that no rate established under these
provisions may exceed the rate of basic pay for GS-15, step 10 (i.e.,
there is no entitlement to retained rate).
Section 5545, Night, standby, irregular, and hazardous duty
differential (to the extent necessary to allow demonstration project
employees to be treated as General Schedule employees. This waiver does
not apply to employees in band VI of the Engineers and Scientists
occupational family).
Sections 5753, 5754, and 5755, Recruitment and relocation bonuses,
retention allowances, and supervisory differentials (to the extent
necessary to allow: (1) Employees and positions under the demonstration
project to be treated as employees and positions under the General
Schedule; and (2) employees in band VI of the Engineers and Scientists
occupational family to be treated as ST employees).
Section 7512(3), Adverse actions (to the extent necessary to (1)
substitute ``pay band'' for ``grade'' and (2) provide that moving to a
lower pay band as a result of not receiving the full amount of a
general pay increase because of poor performance is not an adverse
action).
Section 7512(4), Adverse actions (to the extent necessary to
provide that adverse action provisions do not apply to: (1) Conversions
from General Schedule special rates to demonstration project pay, as
long as total pay is not reduced; and (2) reductions in pay due to
removal of all or part of a supervisory adjustment).
B. Waivers to Title 5, Code of Federal Regulations
Part 300.601-605, Time-in-grade restrictions (to the extent that
time-in-grade restrictions are eliminated).
Part 308.101-103, Volunteer service (to the extent that volunteer
service is unrestricted).
Parts 315.801(a) and 315.802(a), Length of probationary period (to
the extent that the probationary period for engineers and scientists is
increased to 2 years).
Part 316.301, Term appointment (to the extent that modified term
appointments may cover a maximum period of 6 years).
Part 316.303, Tenure of term employees (to the extent that term
employees may compete for permanent status through local merit
promotion plans).
Part 316.305, Eligibility for within grade increases.
Part 335.103, Covering the length of details and temporary
promotions.
Part 351.402(b), Competitive area (to the extent that occupational
family is the competitive area).
Part 351.403, Competitive level (to the extent that pay band is
substituted for grade).
Part 351.504, Retention standing, credit for performance (to the
extent that service credit will not be modified based on performance
rating).
Part 351.701, Assignment involving displacement (to the extent that
a performance score of 1 is substituted for level 2 and bumping and
retreating will be limited to no more than 2 pay bands except for 30
percent compensable veterans who can retreat to the equivalent of 5 GS
grades).
Part 410.308, Training to obtain an academic degree.
Part 410.309, Agreements to continue in service. (To the extent
necessary that individuals pursuing academic degrees do not sign
service agreements.)
Part 430.204, Definition of rating of record (to the extent
necessary to allow ratings of record that do not cover performance over
the entire appraisal period).
Part 430.208(d), Summary levels (to the extent necessary to allow
use of summary performance scores that are not further categorized into
five or fewer summary levels).
Part 432.104-105, Performance based reduction in grade and removal
actions (to the extent that ``pay band'' is substituted for ``grade''
and reduction in band level as a result of non-receipt of General
Schedule increases because of poor performance is not an adverse
action.
Part 511.101, 201-203, General provisions and coverage of the
General Schedule (to the extent that positions are covered by
broadbanding).
Part 511.601-612, Classification appeals (to the extent that
positions are covered by broadbanding).
Part 530, subpart C, Special salary rates.
Part 531, subparts B, D, and E, Determining the rate of basic pay,
within-grade increases, and quality step increases.
Part 531, subpart F, Locality-based comparability payments (to the
extent necessary to allow: (1) Demonstration project employees to be
treated as General Schedule employees; (2) basic rates of pay under the
demonstration project to be treated as scheduled annual rates of pay;
and (3) employees in band VI of the Engineer and Scientist occupational
family to be treated as ST employees).
Part 536, Grade and pay retention (to the extent necessary to: (1)
Replace ``grade'' with ``pay band''; (2) provide that pay band
retention provisions do not apply to movements to a lower pay band as a
result of receiving no or only part of a general pay increase because
of poor performance; (3) provide that pay retention provisions do not
apply to conversions from General Schedule special rates to
demonstration project
[[Page 14598]]
pay, as long as total pay is not reduced, and to reductions in pay due
solely to the removal of all or part of a supervisory pay adjustment
upon leaving a supervisory position; (4) provide than an employee on
pay retention whose performance rating is less than 2.0 is not entitled
to 50 percent of the amount of the increase in the maximum rate of
basic pay payable for the pay band of the employee's position and (5)
ensure that for employees in pay band VI of the Engineers and
Scientists occupational family, pay band retention is not applicable
and pay retention provisions are modified so that no rate established
under these provisions may exceed the rate of basic pay for GS-15, step
10 (i.e., there is no entitlement to retained rate).
Part 550.703, Severance pay (to the extent necessary to modify the
definition of ``reasonable offer'' by replacing ``two grade or pay
levels'' with ``one band level'' and ``grade or pay level'' with ``band
level'').
Part 550.902, Hazardous duty differential, definition of
``employee'' (to the extent necessary to allow demonstration project
employees to be treated as General Schedule employees. This waiver does
not apply to employees in band VI of the Engineers and Scientists
occupational family).
Part 575, subparts A, B, C, and D, Recruitment bonuses, relocation
bonuses, retention allowances and supervisory differentials (to the
extent necessary to allow (1) employees and positions under the
demonstration project to be treated as employees and positions under
the General Schedule and (2) employees in band VI of the Engineers and
Scientists occupational family to be treated as ST employees for the
purposes of these provisions).
Part 752.401 (a)(3), Adverse actions (this provision is waived only
to the extent necessary to (1) substitute ``pay band'' for ``grade''
and (2) provide that moving a lower pay band as a result of not
receiving the full amount of a general pay increase because of poor
performance is not an adverse action.
Part 752.401 (a)(4), Adverse actions (to the extent necessary to
provide that adverse action provisions do not apply to: (1) Conversions
from General Schedule special rates to demonstration project pay, as
long as total pay is not reduced; and (2) reductions in pay due to the
removal of all or part of a supervisory adjustment).
Appendix A--Intervention Impact Model: Project Evaluation
----------------------------------------------------------------------------------------------------------------
Intervention Expected effects Measures Data sources
----------------------------------------------------------------------------------------------------------------
1. Broadbanding:
a. Pay Bands................ --Less difficulty and --Perceptions of --Focus groups.
less time spent on difficulty and time --Attitude survey.
classification. spent on classification --Personnel activity
activities by managers reports.
and personnelists.
--Increased understanding --Perceptions of --Focus groups.
with the classification satisfaction with --Attitude survey.
results under the new classification process.
system.
b. Occupational Families..... --Increased satisfaction --Perceptions of --Focus groups.
with advancement satisfaction with --Attitude survey.
potential. career path process and
progression.
--Increase in management --Perception of --Attitude survey.
authority. authority.
c. Conversion of Employees to --Employee acceptance.... --Perception of equity --Attitude survey.
the Demonstration Project. and fairness.
2. Classification:
a. Classification Standards.. --Less difficulty and --Perceptions of --Focus groups.
less time spent on difficulty and time --Attitude survey.
classification; less spent on classification --Personnel activity
difficulty classifying activities by managers reports.
jobs. and personnelists.
--Increased satisfaction --Perceptions of --Focus groups.
with the classification satisfaction with --Attitude survey.
results under the new classification process.
system.
b. Position Descriptions and --Less difficulty and --Perceptions of --Focus groups.
Classification Process. less time spent on difficulty and time --Attitude survey.
classification by spent on classification --Personnel activity
managers. activities by managers reports.
and personnelists.
--Fewer position --Reduced time to --Attitude survey.
descriptions. develop position --Personnel activity
descriptions. reports.
--Increased satisfaction --Perceptions of --Focus groups.
with the classification satisfaction with --Attitude survey.
results under the new classification process.
system.
--Development of generic --Implementation of --Personnel activity
classification standards. generic standards. reports.
3. Pay for Performance:
a. Supervisory Pay --Reward top performers --Attitudes of --WES workforce data.
Adjustments and who take supervisory and supervisors and --Attitude survey.
Differentials. managerial assignments. managers with pay.
b. Promotion Link............ --Promotions based on --Probability of --WES workforce data.
individual's performance. promotion for high --Attitude survey.
performers.
c. Link Between Performance --Stronger link between --Pay for performance --WES workforce data.
and Pay. performance and pay. correlations. --Attitude survey.
--Perception of pay for
performance link.
--Improve retention of --Employee perception of --Attitude survey.
high performers. equality.
[[Page 14599]]
--Increase turnover among --Turnover rates by --WES workforce data.
low performers. performance over time.
--Increase in supervisory --Supervisors perception --Attitude survey.
decision making of pay for performance
authority accountability. link.
--Increase pay --Employees perception --Attitude survey.
satisfaction. of pay for performance
link.
d. Awards.................... --Reward/motivate --Perceived motivational --Attitude survey.
performance. power.
--To support fair and --Amount and number of --WES workforce data.
appropriate distribution awards by occupational
of awards. family, demographics.
--Perceived fairness of --Attitude survey.
awards.
--Satisfaction with --Attitude survey.
monetary awards.
4. Hiring and Placement:
a. Hiring Authority.......... --Reduction in time to --Time lag from --WES workforce data
hire. announcement to date. hiring log.
--Improve rate of job --Offer acceptance rate. --WES workforce data
offers/acceptance. hiring log.
--Improve image as --Offer acceptance rate. --Managers' and
interested caring supervisors' documented
employer. experience.
b. Modified Term Appointments --Decrease in hiring --Better qualified --WES workforce data.
authorities. candidates within the
temporary workforce.
c. Extended Probationary --Provide managers time --Managers perception of --Attitude survey.
Period. to accurately identify new hires success.
successful employees.
--New hires performance --WES workforce data.
ratings.
--Increase in length of --Pre and post --WES workforce data.
probation for engineers comparison of length of
and scientists. probation.
--Increase in voluntary --Comparison of --WES workforce data.
(in lieu of adverse voluntary/involuntary
action) and involuntary turnover rates for low
turnover of low performers during
performers during probation period.
probation.
5. Employee Development:
a. Sabbaticals............... --Increase development of --Perception of fairness --Attitude survey.
employees. in career development. --Documented experience
--Use of sabbaticals for of managers and
career development. supervisors.
b. Degree Training........... --Increase development of --Perception of fairness --Attitude survey.
employees. in career development.
6. Reduction-In-Force:
Modified RIF................. --Retention of high --Evaluation rating vs --WES workforce data.
performers. RIF turnover. --Historical WES data.
--Historical RIF data
from other Army
Laboratories.
--Reduce disruption to --Attitudes on a RIF --Attitude survey.
the workforce by action.
limiting RIF to
occupational family.
7. Combination of all
Interventions:
All.......................... --Improved organizational --Combination of --All data sources.
effectiveness. personnel measures.
--Improved management of --Employee/management --Attitude survey.
R&D workforce. satisfaction.
--Improved planning...... --Planning procedures... --Strategic planning
documents.
--Improved cross --Perceived --Organizational charts.
functional coordination. effectiveness of
planning procedures.
--Actual perceived
coordination.
--Increased product --Customer satisfaction. --Attitude survey.
success. --Customer satisfaction
surveys.
----------------------------------------------------------------------------------------------------------------
Editorial Note: FR Doc. 98-5425 which was originally published
in the issue of Tuesday, March 3, 1998, at page 10464 is being
republished in its entirety in the issue of Wednesday, March 25,
1998, because of typesetting errors.
[FR Doc. 98-5425 Filed 3-24-98; 8:45 am]
BILLING CODE 6325-01-P
