Science and Technology Reinvention Laboratory Personnel Management Demonstration Project, Department of the Air Force, Air Force Research Laboratory (AFRL), 27866-27915 [2010-11663]

Agencies

• Office of the Secretary
• DEPARTMENT OF DEFENSE

[Federal Register Volume 75, Number 95 (Tuesday, May 18, 2010)]
[Notices]
[Pages 27866-27915]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-11663]



[[Page 27865]]

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Part II





Department of Defense





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Science and Technology Reinvention Laboratory Personnel Management 
Demonstration Project, Department of the Air Force, Air Force Research 
Laboratory (AFRL); Notice

Federal Register / Vol. 75 , No. 95 / Tuesday, May 18, 2010 / 
Notices

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DEPARTMENT OF DEFENSE

Office of the Secretary


Science and Technology Reinvention Laboratory Personnel 
Management Demonstration Project, Department of the Air Force, Air 
Force Research Laboratory (AFRL)

AGENCY: Office of the Deputy Under Secretary of Defense (Civilian 
Personnel Policy) (DUSD (CPP)), DoD.

ACTION: Notice of amendment to modify existing demonstration project 
initiatives.

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SUMMARY: This notice of amendment modifies existing demonstration 
project initiatives, to adopt flexibilities from Science and Technology 
Reinvention Laboratories (STRLs) and to propose expansion of coverage 
of the AFRL Personnel Demonstration Project to AFRL employees in 
Business Management and Professional, Technician, and Mission Support 
occupations.

DATES: The adoption of the listed STRL demonstration project 
flexibilities may be implemented beginning on the date of publication 
of this notice in the Federal Register; and implementation of the 
flexibilities will be through AFRL implementing issuances and notices 
to appropriate stakeholders.
    The proposed expansion of the AFRL Demonstration Project may not be 
implemented until a 30-day comment period is provided, comments 
addressed, and a final Federal Register notice published. To be 
considered, written comments must be submitted on or before June 17, 
2010.

ADDRESSES: Send comments on or before the comment due date by mail to 
Ms. Betty A. Duffield, CPMS-PSSC, Suite B-200, 1400 Key Boulevard, 
Arlington, VA 22209-5144; by e-mail to Betty.Duffield@cpms.osd.mil; or 
by Fax to 703-696-5462.

FOR FURTHER INFORMATION CONTACT: AFRL: Ms. Michelle Williams, AFRL/DPL, 
1864 4th Street, Wright-Patterson AFB, Ohio 45433-7130.
    DoD: Ms. Betty A. Duffield, CPMS-PSSC, Suite B-200, 1400 Key 
Boulevard, Arlington, VA 22209-5144.

SUPPLEMENTARY INFORMATION: This notice of amendment modifies existing 
demonstration project initiatives, to adopt flexibilities from Science 
and Technology Reinvention Laboratories (STRLs), previously enumerated 
in section 9902(c)(2) of title 5, United States Code (U.S.C.), now 
redesignated in section 1105 of the National Defense Authorization Act 
(NDAA) for Fiscal Year (FY) 2010, Public Law 111-84, 123 Stat. 2486, 
and to propose expansion of coverage of the AFRL Personnel 
Demonstration Project to AFRL employees in Business Management and 
Professional, Technician, and Mission Support occupations.
    Section 342(b) of the National Defense Authorization Act (NDAA) for 
Fiscal Year (FY) 1995, as amended (10 U.S.C. 2358 note) by section 1109 
of NDAA FY 2000 and section 1114 of NDAA FY 2001, authorizes the 
Secretary of Defense to conduct personnel demonstration projects at DoD 
laboratories designated as STRLs. The above-cited legislation 
authorizes DoD to conduct demonstration projects to determine whether a 
specified change in personnel management policies or procedures would 
result in improved Federal personnel management. Section 1107 of Public 
Law 110-181, as amended by section 1109 of Public Law 110-417 requires 
the Secretary of Defense to execute a process and plan to employ the 
personnel management demonstration project authorities granted to the 
Office of Personnel Management under section 4703, title 5, U.S.C., at 
the STRLs previously enumerated in section 9902(c)(2) of title 5, 
U.S.C., which are now redesignated in section 1105 of the NDAA for FY 
2010, Public Law 111-84, 123 Stat. 2486, and 73 FR 73248, to enhance 
the performance of these laboratories. AFRL is listed as one of the 
STRLs previously enumerated in section 9902(c)(2) of title 5, U.S.C., 
and now redesignated in section 1105 of the NDAA for FY 2010, Public 
Law 111-84, 123 Stat. 2486.

1. Background

    The STRL demonstration projects are ``generally similar in nature'' 
to the Navy's China Lake Demonstration Project. The terminology 
``generally similar in nature'' does not imply an emulation of various 
features, but rather ``that the effectiveness of Federal laboratories 
can be enhanced by allowing greater managerial control over personnel 
functions,'' * * * which * * * ``can help managers to operate with more 
authority, responsibility, and skill to increase work force and 
organizational effectiveness and efficiency.'' \1\
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    \1\ Federal Register, Vol. 45, No. 77, Friday, April 18, 1980, 
Proposed Demonstration Project: An Integrated Approach to Pay, 
Performance Appraisal, and Position Classification for More 
Effective Operation of Government Organizations.
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    In August 1994, a special action ``Tiger Team'' was formed by the 
Director of Science and Technology for Air Force Materiel Command in 
response to the proposed DoD legislation allowing reinvention 
laboratories to conduct personnel demonstration projects. The team was 
chartered to take full opportunity of this legislation and develop 
solutions that would alleviate or resolve many of the prevalent and 
well-documented Laboratory personnel issues. The team composition 
included managers from the original four Air Force Laboratories (which 
merged and became AFRL in August 1997), retired and current Laboratory 
directors, and subject matter experts from civilian personnel and 
manpower. This team developed 27 initiatives which together represented 
sweeping changes in the entire spectrum of human resource management 
for the Laboratory. Several initiatives were designed to assist the 
Laboratory in hiring and placing highly-qualified Scientist and 
Engineer (S&E) candidates to fulfill mission requirements. Others 
focused on developing, motivating, and equitably compensating employees 
based on their contribution to the mission. Initiatives to effectively 
manage workforce turnover and maintain organizational excellence were 
also developed. These 27 initiatives were endorsed and accepted in 
total by the four Laboratory Commanders.
    After the authorizing legislation passed, a Demonstration Project 
Office with four employees was established in September 1994. Under the 
guidance of the Air Force Materiel Command Director of Science and 
Technology, the Project Office was charged with further developing and 
implementing the demonstration concept. Initially, the Project Office 
solicited volunteers from across the then four Laboratories and the 
servicing civilian personnel offices to staff six integrated product 
teams. Sixty civilian managers and employees from most of the four 
Laboratories' geographic locations and appropriate base level personnel 
offices worked for nine months to develop the detailed concept and 
implementation for each initiative.
    After a thorough study, the original 27 initiatives were reduced to 
20. Seven of these initiatives were published in the original Federal 
Register notice and appear herein. The remaining initiatives were 
subject to either DoD or AF regulation and waivers were sought at those 
levels.

2. Overview

    This Federal Register notice (FRN) supersedes the four previous 
AFRL Demonstration Project FRNs. Substantive changes include updating 
the demonstration project Reduction-in-Force (RIF) procedures; 
expanding the

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coverage of the Demonstration Project to include AFRL employees in 
Business Management and Professional, Technician, and Mission Support 
occupations; and the ability to establish an Above GS-15 authority 
(broadband level V). In this FRN, AFRL is also adopting flexibilities 
from other STRL personnel demonstration projects. Additional 
flexibilities include using an alternative examining process; 
implementing the Distinguished Scholastic Achievement Appointment 
authority; expanding the use of temporary promotions and details; 
authorizing pay setting flexibilities; and requiring the Demonstration 
Project to be cost disciplined. Also, the expanded plan reduces the 
number of factors from six to four, with corresponding descriptors for 
each broadband level in a career path.
    The original AFRL Personnel Management Demonstration Project plan 
was published in 61 FR 60399, November 27, 1996. This Demonstration 
Project plan involves simplified, delegated position classification, 
two types of appointment authorities, an extended probationary period, 
broadbanding, and a Contribution-based Compensation System (CCS). Three 
amendments to the final plan were published in the Federal Register. 
The first amendment to clarify which employees are subject to the 
extended probationary period; provide the CCS bonus to eligible 
employees subject to the General Schedule (GS) 15, step 10 pay cap; and 
change the names of the descriptor ``Cooperation and Supervision'' and 
CCS Factor 6, ``Cooperation and Supervision,'' to ``Teamwork and 
Leadership'' was published in 65 FR 3498, January 21, 2000. The second 
amendment changed the amount of time required to be assessed under CCS 
from 180 to 90 calendar days and was published in 70 FR 60495, October 
18, 2005. The third amendment eliminating mandatory factor weights was 
published in 74 FR 15463, April 6, 2009.
    Flexibilities published in this Federal Register notice shall be 
available for use by all STRLs enumerated in section 9902(c)(2) of 
title 5, U.S.C., which are now redesignated in section 1105 of the NDAA 
for FY 2010, Public Law 111-84, 123 Stat. 2486, if they wish to adopt 
them in accordance with DoD Instruction 1400.37; 73 FR 73248 to 73252; 
and the fulfilling of any collective bargaining obligations.

    Dated: May 12, 2010.
Mitchell S. Bryman,
Alternate OSD Federal Register Liaison Officer, Department of Defense.

Table of Contents

I. Executive Summary
II. Introduction
    A. Purpose
    B. Problems With the Present System
    C. Changes Required/Expected Benefits
    D. Participating Employees and Labor Participation
    E. Project Design
III. Personnel System Changes
    A. Hiring and Appointment Authorities
    B. Pay Setting Outside the Contribution-Based Compensation 
System
    C. Broadbanding
    D. Classification
    E. Contribution-Based Compensation System
    F. Dealing With Inadequate Contributions
    G. Voluntary Emeritus Corps
    H. Reduction-in-Force Procedures
IV. Training
V. Conversion
    A. Conversion to the Demonstration Project
    B. Conversion to Another Personnel System
VI. Project Duration and Changes
VII. Evaluation Plan
VIII. Demonstration Project Costs
IX. Required Waivers to Law and Regulation
    A. Waivers to Title 5, United States Code
    B. Waivers to Title 5, Code of Federal Regulations
Appendix A. Career Path Occupational Series
Appendix B. Descriptors Sorted by Career Path, Broadband Level, and 
Factor
Appendix C. Descriptors Sorted By Career Path, Factor, and Broadband 
Level

I. Executive Summary

    The original Project was designed by the Department of the Air 
Force (AF), with participation of and review by the DoD and the Office 
of Personnel Management (OPM). The purpose was to achieve the best 
workforce for the Laboratory mission, prepare the workforce for change, 
and improve workforce quality. The Project framework addressed all 
aspects of the human resources life cycle model. There were three major 
areas of change: (1) Laboratory-controlled rapid hiring; (2) a 
Contribution-based Compensation System; and (3) a streamlined removal 
process.
    Initially, the Project covered only professional S&E positions and 
employees. This Federal Register notice incorporates a design for 
coverage of not only S&E employees but also the AFRL employees in 
Business Management and Professional, Technician, and Mission Support 
occupations.

II. Introduction

A. Purpose

    The purpose of the Project is to demonstrate that the effectiveness 
of DoD laboratories can be enhanced by allowing greater managerial 
control over personnel functions and, at the same time, expanding the 
opportunities available to employees through a more responsive and 
flexible personnel system. This Demonstration Project, in its entirety, 
attempts to provide managers, at the lowest practical level, the 
authority, control, and flexibility needed to achieve a quality 
Laboratory and quality products.

B. Problems With the Present System

    The success of the Demonstration Project for S&E personnel has 
convinced AFRL management that the same system should be implemented 
for the remaining AFRL workforce. The Laboratory Demonstration Project 
implemented a broadbanding structure that replaced the 15 grades under 
the GS classification structure. This flexibility has enabled 
management to offer competitive starting salaries and seamlessly 
progress employees through the broadband levels based on contribution 
to the mission. The CCS has provided management an effective, 
efficient, and flexible method for assessing, compensating, and 
managing the S&E workforce. CCS has created more employee involvement 
in the assessment process, increased communication between supervisors 
and employees, promoted a clear accountability of contribution, 
facilitated employee career progression, and has provided an 
understandable basis for basic pay changes.
    The civilian GS personnel system 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 management's ability to support world-class 
research. Current personnel action processes cause delays in 
recruiting, reassigning, promoting, and removing employees. AFRL 
received no hiring authorities with the initial Demonstration Project 
implementation. Laboratories that implemented their authorities at a 
later time received hiring flexibilities that AFRL now wishes to 
pursue.
    The GS classification system requires lengthy, narrative, 
individual position descriptions, which have to be classified by the 
use of complex and often outdated position classification

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standards. The classification process under the AFRL Demonstration 
Project has been highly successful, can be accomplished quickly and 
efficiently, and has given managers control over their workforce.
    The current RIF system, for both GS and demonstration project 
employees, does not adequately recognize contribution 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 bump and retreat rights.
    The same flexibilities for attracting and retaining highly talented 
employees from which AFRL currently benefits for the S&E workforce 
should not be limited to the S&E career path. The success of the 
Laboratory is dependent on its total workforce not just S&E personnel; 
thus, the demonstration project flexibilities should be extended to the 
entire Laboratory workforce. The new authorities will provide 
additional management tools that will enable AFRL to attract and retain 
the best and brightest employees for all career paths.

C. Changes Required/Expected Benefits

    The AFRL Demonstration Project has demonstrated that a human 
resource system tailored to the mission and needs of the Laboratory 
results in: (a) Increased quality of the workforce and the Laboratory 
products they produce; (b) increased timeliness of key personnel 
processes; (c) trended workforce data that reveals increased retention 
of ``excellent contributors'' and increased separation rates of ``poor 
contributors;'' and (d) increased employee satisfaction with the 
Laboratory.

D. Participating Employees and Labor Participation

    There are approximately 5,025 employees assigned to AFRL, with the 
majority located in or at Arlington, Virginia; Brooks City Base, Texas; 
Edwards Air Force Base (AFB), California; Eglin AFB, Florida; Hanscom 
AFB, Massachusetts; Kirtland AFB, New Mexico; Rome, New York; Tyndall 
AFB, Florida; and Wright-Patterson AFB, Ohio. Employees are also 
located at sites around the world.
    Of the 5,025 AFRL employees, approximately 2,630 are currently in 
the Demonstration Project. The National Federation of Federal Employees 
(NFFE) and the American Federation of Government Employees (AFGE) 
represent professional and nonprofessional employees at many sites 
within AFRL. At this time, there are approximately 140 employees in the 
NFFE and AFGE bargaining units that are in the Demonstration Project. 
AFRL is proceeding to fulfill its obligation to consult or negotiate 
with the unions, as appropriate, in accordance with 5 U.S.C. 4703(f) 
and 7117. AFRL plans to initially convert the non-bargaining unit 
workforce into the Project with the hope of successfully negotiating 
with the impacted unions to convert the remaining Business Management 
and Professional, Technician, and Mission Support workforce into the 
Project at a later date.
    In determining the original scope of the Demonstration Project, 
primary consideration was given to the number and diversity of 
occupations within the Laboratory and the need for adequate development 
and testing of the Contribution-based Compensation System. 
Additionally, DoD human resource management design goals and priorities 
for the entire civilian workforce were considered. While the intent of 
this Project is to provide the AFRL Commander/Executive Director and 
subordinate supervisors with increased control and accountability for 
their total workforce, the decision was made to initially restrict 
development efforts to GS/GM positions within the professional S&E 
specialties.
    With this expansion effort, a total of 155 occupational series are 
included in the Project. During the course of the Project, other series 
may be included or moved to a more appropriate career path. For 
instance, a path for physicians and dentists may be added to the 
Project at a later date.
    The series included in the initial implementation of the Project 
were placed in the S&E career path (pay plan DR). The success of the 
Demonstration Project for the S&Es has proven that it is prudent to 
expand the flexibilities to the AFRL workforce in Business Management 
and Professional, Technician, and Mission Support occupations. This 
Federal Register notice proposes implementation of three new career 
paths for the Business Management and Professional (pay plan DO), 
Technician (pay plan DX), and Mission Support (pay plan DU) 
occupations. The new career paths are constructed based on career 
progression and occupational responsibilities, taking into 
consideration the AFRL workforce, the existing S&E career path and the 
design of other Defense laboratory broadbanding systems. The career 
paths along with the occupational series included are listed in 
Appendix A. Series may be added or deleted as mission work evolves and 
new competencies are needed.

E. Project Design

    For the expansion design, the AFRL Demonstration Project Office 
recruited volunteers from the 10 AFRL directorates. Most team members 
were drawn from the career fields being considered for expansion, 
although some engineers were on the team to assist with understanding 
the current authorities. The team considered existing AFRL authorities 
in addition to authorities and design elements of the other DoD 
Personnel Management Demonstration Project laboratories and other 
Federal alternative personnel systems.
    Although some of the original initiatives addressed recruiting and 
hiring issues, the Demonstration Project was not able to implement 
hiring flexibilities with the original publication. Additionally, the 
RIF changes were denied at the last minute, leaving only a change in 
how additional service credit was awarded based on the CCS scores. This 
Federal Register notice adopts hiring authorities currently utilized by 
other DoD STRL Personnel Demonstration Projects and implements a 
redesigned RIF methodology, which simplifies and strengthens the 
process.

III. Personnel System Changes

A. Hiring and Appointment Authorities

1. Description of Hiring Process
    At this time, AFRL is implementing a streamlined examining process 
as demonstrated in other Defense Personnel Management Demonstration 
Project laboratories. This applies to all positions in AFRL, with the 
exception of Senior Executive Service (SES), Scientific or Professional 
(ST), and broadband V positions and any examining process covered by 
court order. This authority includes the coordination of recruitment 
and public notices, the administration of the examining process, the 
certification of candidates, and selection and appointment consistent 
with merit system principles, to include existing authorities under 
title 5, U.S.C. and title 5, CFR. The ``rule of three'' is eliminated, 
similar to the authorities granted to: (1) Naval Research Laboratory 
(NRL), 64 FR 33970, June 24, 1999; (2) Naval Sea (NAVSEA) Systems 
Command Warfare Centers, 62 FR 64049, December 3, 1997; and (3) 
Communications-Electronics Research, Development, and Engineering 
Center (CERDEC), 66 FR 54871, October 30, 2001. When there are no more 
than 15 qualified applicants and no preference eligibles, all eligible

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applicants are immediately referred to the selecting official without 
rating and ranking. Rating and ranking are required only when the 
number of qualified candidates exceeds 15 or there is a mix of 
preference and nonpreference applicants. Statutes and regulations 
covering veterans' preference are observed in the selection process and 
when rating and ranking are required.
    AFRL's Distinguished Scholastic Achievement Appointment Authority 
(DSAA) uses an alternative examining process which provides the 
authority to appoint individuals with undergraduate or graduate degrees 
through the doctoral level to positions up to the equivalent of GS-12 
in series identified in the S&E or Business Management and Professional 
career paths. This enables AFRL to respond quickly to hiring needs for 
eminently qualified candidates possessing distinguished scholastic 
achievements. This flexibility is similar in nature to the authority 
granted to: (1) The Army Missile Research, Development, and Engineering 
Center (AMRDEC), 64 FR 12216, March 11, 1999; (2) Army Research 
Laboratory (ARL), 65 FR 3500, January 21, 2000; (3) Army Engineer 
Research and Development Center (ERDC), 64 FR 12216, March 11, 1999; 
and (4) NAVSEA, 62 FR 64064, December 3, 1997.
    Candidates may be appointed provided they meet the minimum 
standards for the position as published in OPM's operating manual, 
``Qualification Standards for General Schedule Positions'' and the 
candidate has a cumulative grade point average of 3.5 (on a 4.0 scale) 
or better in their field of study (or other equivalent score) or are 
within the top 10 percent of a university's major school of graduate 
studies, such as Business School, Law School, etc.
2. Qualification Determinations
    A candidate's basic eligibility is determined using OPM's 
``Qualification Standards Handbook for General Schedule Positions.'' 
Selective placement factors may be established in accordance with OPM's 
Qualification Handbook when judged to be critical to successful 
position contribution. These factors are communicated to all candidates 
for particular position vacancies and must be met for basic 
eligibility.
    S&E (pay plan DR) and Business Management and Professional (pay 
plan DO) occupations: The DR and DO pay plans' broadband level I 
minimum eligibility requirements are consistent with the GS-07 
qualifications. Broadband level II minimum eligibility requirements are 
consistent with the GS-12 qualifications. Broadband levels III and IV 
are single-grade broadband levels and consistent with the minimum 
qualifications for the respective GS grades of 14 and 15.
    Technician (pay plan DX): The DX pay plan broadband level I minimum 
eligibility requirements are consistent with the GS-01 qualifications. 
Broadband level II minimum eligibility requirements are consistent with 
the GS-05 qualifications. Broadband level III minimum eligibility 
requirements are consistent with the GS-08 qualifications. Broadband IV 
minimum eligibility requirements are consistent with the GS-11 
qualifications.
    Mission Support (pay plan DU): The DU pay plan broadband level I 
minimum eligibility requirements are consistent with the GS-01 
qualifications. Broadband level II minimum eligibility requirements are 
consistent with the GS-05 qualifications. Broadband level III minimum 
eligibility requirements are consistent with the GS-07 qualifications. 
Broadband IV minimum eligibility requirements are consistent with the 
GS-09 qualifications.
3. Appointment Authority
    Under the Demonstration Project, there are two appointment options: 
Regular career and modified term. The career-conditional appointment 
authority is not used under the Demonstration Project. Regular career 
appointments continue to use existing authorities and entitlements, and 
employees serve a probationary period. Probationary career employees 
are in tenure group I for RIF purposes. The modified term appointment 
is described below.
4. Modified Term Appointments
    The Laboratory conducts many research and development (R&D) 
projects that range from three to six years. The current four-year 
limitation on term appointments imposes a burden on the Laboratory by 
forcing the termination of some term employees prior to completion of 
projects they were hired to support. This disrupts the R&D process and 
reduces the Laboratory's ability to serve its customers. Under the 
Demonstration Project, AFRL has the authority to hire individuals under 
modified term appointments. These appointments are used to fill 
positions for a period of more than one year but not more than five 
years when the need for an employee's services is not permanent. The 
modified term appointment differs from term employment as described in 
5 CFR part 316 in that it may be made for a period not to exceed five 
years, rather than four years. In addition, the AFRL Commander/
Executive Director and pay pool managers are authorized to extend a 
term appointment one additional year. Employees hired under the 
modified term appointment authority may be eligible for conversion to 
career appointments. To be converted, the employee must: (1) Have been 
selected for the term position under competitive procedures, with the 
announcement specifically stating that the individual(s) selected for 
the term position(s) may be eligible for conversion to career 
appointment at a later date; (2) served a minimum of two years of 
continuous service in the term position; (3) be selected under merit 
staffing procedures for the permanent position; and (4) have a current 
delta CCS rating greater than -0.3.
    Employees serving under regular term appointments at the time of 
conversion to the Demonstration Project will be converted to the new 
modified term appointments provided they were hired for their current 
positions under competitive procedures. These employees will be 
eligible for conversion to career appointment if they have a current 
delta CCS rating greater than -0.3 and are selected under merit 
staffing procedures for the permanent position after having completed 
at least two years of continuous service.
5. Extended Probationary Period
    A new employee needs time and opportunities to demonstrate adequate 
contribution for a manager to render a thorough evaluation. The purpose 
of the extended probationary period or trial period is to allow 
supervisors an adequate period of time to fully evaluate an employee's 
contribution and conduct. An extended probationary or trial period of 
three years applies to all newly hired S&E employees, including 
individuals entering the Demonstration Project after a break in service 
of 30 calendar days or more. Employees who enter the Demonstration 
Project with a break in service of less than 30 calendar days are not 
required to complete an extended probationary or trial period if their 
service was in the same line of work as determined by the employee's 
actual duties and responsibilities. Current permanent Federal employees 
hired into the Demonstration Project are not required to serve a new 
probationary or trial period. Any employee appointed prior to the date 
of this Federal Register notice will not be affected. Supervisory 
probationary periods are made consistent with 5 CFR part 315.

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    Student Career Experience Program (SCEP) students earning a 
bachelor's degree are required to serve the extended probationary 
period upon non-competitive conversion to career appointment. SCEPs 
earning a master's degree or Ph.D. will have their SCEP employment time 
counted toward the completion of the extended probationary period upon 
non-competitive conversion to career appointment. The requirements in 5 
CFR 315.802(c) apply when determining creditable service.
    Aside from extending the time period, all other features of the 
current probationary or trial period are retained including the 
potential to remove an employee without providing the full substantive 
and procedural rights afforded a non-probationary employee when the 
employee fails to demonstrate proper conduct, competency, and/or 
adequate contribution.
    When terminating probationary or trial employees, AFRL provides 
employees with written notification of the reasons for their separation 
and provides the effective date of the action.
6. Expanded Temporary Promotions and Details
    Under GS rules, details and temporary promotions to higher graded 
positions cannot exceed 120 days without being made competitively. AFRL 
may effect details to higher broadband level positions and temporary 
promotions of not more than one year within a 24-month period without 
competition, with the ability to extend one additional year, to 
positions within the Demonstration Project. This is similar to the 
authority granted to the NRL in 64 FR 33970, June 24, 1999.

B. Pay Setting Outside the CCS

    Management has authority to establish appropriate basic pay for 
employees moving within and into the Demonstration Project through 
internal and external competitive and non-competitive authorities. The 
basic pay of newly hired personnel entering the Demonstration Project 
is set at a level consistent with the expected contribution of the 
position based on the individual's academic qualifications, 
competencies, experience, scope and level of difficulty of the 
position, and/or expected level of contribution. Pay pool managers may 
establish specific pay setting criteria. Basic pay is limited to that 
equal to GS-15, step 10. A bonus may be considered in lieu of a basic 
pay increase.
    The authorities for retention, recruitment, and relocation payments 
granted under 5 CFR part 575 have been delegated to the AFRL Commander/
Executive Director and pay pool managers. Eligibility and documentation 
requirements, as described in 5 CFR part 575, are still in effect.
    Recruitment of students is currently limited to the local commuting 
area because college students frequently cannot afford to relocate to 
accept job offers within the Laboratory and continue to attend school 
in a different commuting area. Therefore, AFRL requires the ability to 
expand recruitment to top universities and incentivize mobility by 
paying additional expenses to students accepting employment outside of 
their geographic area. The authority to pay relocation bonuses is 
expanded to allow management to pay a bonus each time the co-operative 
education student returns to duty to the Laboratory.
1. Local Interns
    Outside of the rating cycle, a manager may grant a basic pay 
increase to an entry-level Business Management and Professional and S&E 
employee (broadband I) whose contribution justifies accelerated 
compensation. This is similar to the authority granted to AMRDEC in 62 
FR 34876, June 27, 1997.

C. Broadbanding

    The use of broadbanding provides a stronger link between pay and 
contribution to the mission of the Laboratory than what exists in the 
GS system. It is simpler, less time consuming, and not as costly to 
maintain. In addition, such a system is more easily understood by 
managers and employees, is easily delegated to managers, coincides with 
recognized career paths, and complements the other personnel management 
aspects of the Demonstration Project.
    In the Demonstration Project, the broadbanding system replaces the 
GS structure. Initially, only S&E positions in AFRL were covered. This 
Federal Register notice provides the authority to expand coverage of 
the Demonstration Project to Business Management and Professional, 
Technician, and Mission Support occupations. ST and SES employees are 
not covered.
    Table 2 shows the four broadband levels in each career path, 
labeled I, II, III, and IV, with the exception of newly expanded 
broadband V for the S&E career path. The broadband levels are designed 
to facilitate pay progression and to allow for more competitive 
recruitment of quality candidates at differing rates within the 
appropriate broadband level(s). The S&E career path broadband level I 
includes the current GS-07 through GS-11; level II, GS-12 and GS/GM-13; 
level III, GS/GM-14; level IV, GS/GM-15; and level V, above GS/GM-15. 
The Business Management and Professional career path broadband level I 
includes the current GS-07 through GS-11; level II, GS-12 and GS/GM-13; 
level III, GS/GM-14; and level IV, GS/GM-15. The Mission Support career 
path broadband level I includes the current GS-01 through GS-04; level 
II, GS-05 and GS-06; level III, GS-07 and GS-08; and level IV, GS-09 
and 10. The Technician career path broadband level I includes the 
current GS-01 through GS-04; level II, GS-05 through GS-07; level III, 
GS-08 through GS-10; and level IV, GS-11 and 12. Comparison to the GS 
grades was useful in setting the upper and lower dollar limits of the 
broadband; however, once employees are moved into the Demonstration 
Project, GS grades and steps no longer apply.
[GRAPHIC] [TIFF OMITTED] TN18MY10.000

The broadbanding plan for the S&E occupational family is being expanded 
to include a broadband V to provide the ability to accommodate 
positions having duties and responsibilities that exceed the GS-15 
classification criteria. This broadband is based on the Above GS-15 
Position concept found in other STRL personnel management

[[Page 27871]]

demonstration projects that was created to solve a critical 
classification problem. The STRLs have positions warranting 
classification above GS-15 because of their technical expertise 
requirements including inherent supervisory and managerial 
responsibilities. However, these positions are not considered to be 
appropriately classified as ST positions because of the degree of 
supervision and level of managerial responsibilities. Neither are these 
positions appropriately classified as SES positions because of their 
requirement for advanced specialized scientific or engineering 
expertise and because the positions are not at the level of general 
managerial authority and impact required for an SES position.
    The original Above GS-15 Position concept was to be tested for a 
five-year period. The number of trial positions was set at 40 with 
periodic reviews to determine appropriate position requirements. The 
Above GS-15 Position concept is currently being evaluated by DoD 
management for its effectiveness and continued applicability to the 
current STRL scientific, engineering, and technology workforce needs. 
The degree to which AFRL plans to participate in this concept and 
develop classification, compensation and performance management policy, 
guidance, and implementation processes will be based on the final 
outcome of this evaluation. Additional guidance will be included in 
AFRL internal issuances.

D. Classification

1. Occupational Series
    The OPM occupational series scheme, which frequently provides well-
recognized disciplines with which employees wish to be identified, is 
maintained and facilitates movement of personnel into and out of the 
Demonstration Project. Other series may be added to the Project as the 
need for new competencies emerges within the Laboratory environment.
2. Classification Factors and Descriptors
    The present system of OPM classification standards is used for the 
identification of proper series and occupational titles of positions 
within the Demonstration Project. OPM grading criteria are not used as 
part of the Demonstration Project. Rather, the appropriate career path 
broadband level factor descriptors are used to determine the broadband 
level. These same factor descriptors are used for the annual CCS 
employee assessments. For classification, only broadband level I 
descriptors are applied for each of the factors for a broadband level I 
position, for example. Therefore, the factors are sorted first by level 
and then by factor. (The broadband level of the position is reviewed 
and appropriately adjusted based on a yearly assessment of the 
employee's level of contribution to the organization in relation to 
these same factor descriptors, the position's duties, and the 
corresponding CCS score.) Specific broadband level factor descriptors 
for each career path are outlined in Appendix B and may be changed in 
future AFRL internal issuances, as needed.
3. Classification Authority
    The AFRL Laboratory Commander has delegated classification 
authority and may further delegate this authority to no lower than two 
management levels below the technical director. Classification 
approval, however, must be exercised at least one management level 
above the first-level supervisor of the employee or position under 
review. The first-level supervisor provides classification 
recommendations. Personnel specialists provide on-going consultation 
and guidance to managers and supervisors throughout the classification 
process.
4. Statement of Duties and Experience
    Under the Demonstration Project's classification system, the 
automated Statement of Duties and Experience (SDE) replaces the AF Form 
1378, Civilian Personnel Position Description. The SDE includes a 
description of position-specific information; references the broadband 
level factor descriptors for the assigned broadband level and career 
path; and provides data element information pertinent to the position. 
Laboratory supervisors follow a computer assisted process to produce 
the SDE.
5. Skill Codes
    The AF presently uses skill code sets within the Defense Civilian 
Personnel Data System (DCPDS) as a means to reflect duties of current 
positions and employees' competencies and previous experiences. Each 
code represents a specialization within the occupation. Specializations 
are those described in classification or qualification standards and 
those agreed upon by functional managers and personnel specialists to 
be important to staffing patterns and career paths. These codes may be 
used to refer candidates for employment with the AF; for placement of 
current employees into other positions; and for training consideration 
under competitive procedures. To facilitate the movement of personnel 
into, out of, and within the Demonstration Project, the AF system of 
skills coding continues to be used, as long as it is required by the 
AF. Laboratory supervisors select appropriate skill code sets to 
describe the work of each employee through the automated SDE 
classification process, as described below.
6. Classification Process
    The SDE is accomplished by completion of the following steps 
utilizing an automated system:
    (a) The supervisor enters, by typing free-form, the organizational 
location, SDE number, and the employee's name. From the menu, the 
supervisor selects the appropriate occupational series and title; the 
level factor descriptors corresponding to the broadband level that is 
most commensurate with the level of contribution necessary to 
accomplish the duties and responsibilities of the position; the CCS job 
category (if applicable); the functional classification code; and the 
DCPDS supervisory level. For Business Management and Professional and 
S&E positions, prefixes may be added to the titles to identify the 
associated broadband level (i.e., Associate, Senior, and Principal). 
The supervisor then completes a standard statement relating to the 
level of certification and functional area for the Acquisition 
Professional Development Program (APDP) if applicable.
    (b) The supervisor creates a brief description of position-specific 
information by typing free-form at the appropriate point. From a menu, 
the supervisor chooses statements pertaining to physical requirements; 
competencies required to perform the work; and special licenses or 
certifications needed (other than APDP). Based on the supervisory level 
of the position, the system produces mandatory statements pertaining to 
affirmative employment, safety, and security programs.
    (c) The supervisor selects up to three AF skill code sets (as used 
within the AF) appropriate to the position, in addition to other 
position data, such as position sensitivity, Fair Labor Standards Act 
(FLSA) status, drug testing requirements, etc. These data elements are 
maintained as a separate page of the SDE (i.e., an addendum) as this 
information can change frequently. By maintaining this information as 
an addendum, the need to create and classify a new SDE each time one of 
these elements must be updated is eliminated.
    (d) The supervisor accomplishes the SDE with a recommended 
classification, then signs and dates the document. The

[[Page 27872]]

SDE is sent to the individual in the organization with delegated 
classification authority for approval and classification, which is 
documented by that person signing and dating the SDE.
    The computer assisted system incorporates definitions for the CCS 
job categories (if applicable), supervisory levels, occupational series 
as well as their corresponding skill code sets (if applicable), and the 
functional classification codes as appropriate. The FLSA status 
selection must be in accordance with OPM guidance. Management analysts 
and personnel specialists may advise Laboratory management as 
necessary.

E. Contribution-Based Compensation System (CCS)

1. Overview
    The purpose of the Contribution-based Compensation System is to 
provide an effective, efficient, and flexible method for assessing, 
compensating, and managing the Laboratory workforce. It is essential 
for the development of a highly productive workforce and to provide 
management, at the lowest practical level, the authority, control, and 
flexibility needed to achieve a quality laboratory and quality 
products. CCS allows for more employee involvement in the assessment 
process, increases communication between supervisors and employees, 
promotes a clear accountability of contribution, facilitates employee 
career progression, provides an understandable basis for basic pay 
changes, and delinks awards from the annual assessment process. (Funds 
previously allocated for performance-based awards are reserved for 
distribution under a separate Laboratory awards program.) The CCS 
process described herein applies to broadband levels I through IV. The 
assessment process for broadband V positions will be documented in AFRL 
implementing issuances.
    CCS is a contribution-based assessment system that goes beyond a 
performance-based rating system. That is, it measures the employee's 
contribution to the organization's mission, the contribution level, and 
how well the employee performed a job. Contribution is simply defined 
as the measure of the demonstrated value of what an employee did in 
terms of accomplishing or advancing the organizational objectives and 
mission impact. CCS promotes proactive basic pay adjustment decisions 
on the basis of an individual's overall contribution to the 
organization.
    The same factor descriptors are used for classification and for the 
annual CCS employee assessments. For the CCS assessment process, the 
descriptors are sorted first by factor and then by level as shown in 
Appendix C. The appropriate career path factor descriptors (as shown in 
Appendix C) are used by the rating official to determine the employee's 
actual contribution score. Each factor has four levels of increasing 
contribution corresponding to the four broadband levels. Employees can 
score within, above, or below their broadband level. For example, a 
broadband level II employee could score in the broadband level I, III, 
or IV range. Therefore, for the CCS process, descriptors for all four 
levels of the career path factors are presented to better assist the 
supervisor with the employee assessment.
    The annual CCS assessment scoring process (section III, E.3.) 
begins with employee input, which provides an opportunity to state the 
perceived accomplishments and level of contribution. Scores have a 
direct relationship with basic pay; therefore, the significance of an 
employee's actual score is not known until it is compared to his/her 
expected score. An employee's basic pay determines an expected score 
when plotted on the appropriate career path Standard Pay Line (SPL) 
(section III, E.2.). For instance, a Mission Support employee with a 
basic pay of $30,117 in 2009 would have an expected score of 2.25, 
while a Business Management and Professional employee with a basic pay 
of $69,738 would have the same expected score. The comparison between 
expected score and actual score provides an indication of equitable 
compensation, undercompensation, or overcompensation. (Typically, 
employees who are overcompensated are not meeting contribution 
expectations and may be placed on a Contribution Improvement Plan 
(CIP), which is described in further detail in section III, F.) 
Broadband levels in each career path have the same expected score 
range, as depicted in Table 2 below which also includes the basic pay 
ranges for each broadband level. As the general basic pay rates 
increase annually, the minimum and maximum basic pay rates of broadband 
levels I through IV for each career path are adjusted accordingly. 
Individual employees receive basic pay increases based on their 
assessments under the Contribution-based Compensation System. There are 
no changes to title 5, U.S.C., regarding locality pay under the 
Demonstration Project.

[[Page 27873]]

[GRAPHIC] [TIFF OMITTED] TN18MY10.001


[[Page 27874]]


BILLING CODE 5001-06-P
2. Standard Pay Line (SPL)
    A mathematical relationship between assessed contribution and basic 
pay compensation was defined in order to create the SPLs for each 
career path used in CCS. Initially, various mathematical relationships 
between each CCS score and the appropriate corresponding basic pay rate 
were examined and analyzed given the following systemic constraints. 
First, CCS necessitates that the relationship be described by a single 
equation that yields a reasonable correlation between basic pay rates 
in the broadband levels and those of the corresponding GS grade(s). 
Second, neither the equation nor its derivative(s) can exhibit 
singularities within or between levels. That is, the equation must be 
continuous, smooth, and well-defined across the broadband levels within 
each career path. Third, the relationship may not yield disincentives 
or inequities between employees or groups of employees; it must 
demonstrate equitable (i.e., consistent) growth at each CCS score. 
Mathematical analysis demonstrated that the most reasonable 
relationship is a straight line--``the SPL.''
    Derivation of the initial S&E career path SPL was based on 
distributing the GS grades and steps of the incoming population across 
the corresponding broadband levels and plotting these against the GS 
basic pay rates. Although the data are not continuous, there is a 
linear trend. Each of these data points was weighted by the actual 
calendar year 1995 (CY95) population data for the Demonstration 
Laboratory. Using a ``least squares error fit'' analysis, the best 
straight line fit to this weighted data was computed.
    Specifically, the equation of the original S&E SPL for CY95 was: 
BASIC PAY = $13,572 + ($15,415 x CCS SCORE). The SPL for CY96 was 
calculated from the SPL for CY95 plus the general pay increase (``G'') 
given to GS employees in January 1996. The equation for the CY96 SPL 
was: BASIC PAY = $13,843 + ($15,723 x CCS SCORE). The CY97 SPL was the 
CY96 SPL increased by the ``G'' for CY97.
    Currently, the equation for the 2009 S&E SPL is BASIC PAY = $19,613 
+ ($22,278 x CCS SCORE). Figure 1 provides a pictorial representation 
of the DR 2009 SPL. Since the Business Management and Professional 
career path has the same banding structure as the existing S&E career 
path, the same SPL equation is used for that career path as shown in 
Figure 2.

[[Page 27875]]

[GRAPHIC] [TIFF OMITTED] TN18MY10.003

For the other two career paths, Technician and Mission Support, a 
different approach was used to design the SPL. In order to encompass 
all employees across the career path, a straight-line slope-intercept 
equation

[[Page 27876]]

was utilized. A CCS score of 1.0 was set as equivalent to the basic pay 
of a step one of the lowest GS grade in the career path, while a CCS 
score of 4.9 is equivalent to the basic pay of step ten of the highest 
GS grade. A straight line was then drawn between these two points, 
creating the SPL. Consequently, the 2009 Mission Support SPL is BASIC 
PAY = $2,034 + ($15,506 x CCS SCORE) and the 2009 Technician SPL is 
BASIC PAY = $6,862 + ($10,678 x CCS SCORE) as shown in Figures 3 and 4.

[[Page 27877]]

[GRAPHIC] [TIFF OMITTED] TN18MY10.004

BILLING CODE 5001-06-C
For each of the career paths, the lines were extended to 0.75 and 5.25, 
in order to provide a broader range of basic pay rates (i.e., an 
overall score of 0.75

[[Page 27878]]

corresponds with the minimum basic pay of the career path and an 
overall score of 5.25 corresponds with the maximum basic pay of the 
career path). Rails were then constructed at + and - 0.3 CCS around the 
SPL for all career paths. The area encompassed by the rails denotes the 
acceptable contribution and compensation relationship.
    Each SPL, and therefore, the basic pay rates, are increased by the 
amount of the general basic pay increase authorized each year. 
Continuing this calculation of the SPL maintains the same relationships 
between the basic GS pay scale and the SPL in the Demonstration 
Project. Locality pay is not included in the SPLs. Locality pay is 
added to the basic pay rate based upon each employee's official duty 
station.
3. The CCS Assessment Process
    The rating official is the first-level supervisor of record for at 
least 90 days during the rating cycle. If the current immediate 
supervisor has been in place for less than 90 days during the rating 
cycle, the second-level supervisor serves as the initial rating 
official. If the second-level supervisor is in place for less than 90 
days during the rating cycle, the next higher level supervisor in the 
employee's rating chain conducts the assessment.
    The annual assessment cycle begins on October 1 and ends on 
September 30 of the following year. At the beginning of the annual 
assessment period, the broadband level factor descriptors are provided 
to employees so that they know the basis on which their contribution is 
assessed.
    A midyear review, in the March to April timeframe, is conducted for 
employees. At this time, the employee's professional qualities, 
competencies, developmental needs, and mission contribution are 
discussed, as is future development and career opportunities. 
Additionally, supervisors are provided feedback on their supervisory 
qualities and skills. To highlight its importance, all feedback 
sessions are certified as completed by the rating official conducting 
the feedback session. While one documented formal midyear feedback is 
required, supervisors can/should conduct informal feedback sessions 
throughout the rating period. The preferable method for all feedback 
sessions is face-to-face. (Dealing with inadequate employee 
contribution is addressed in section III, F.)
    At the end of the annual assessment period, employees summarize 
their contributions in each factor for their rating official. Employee 
written self-assessments are highly encouraged to ensure that all 
contributions accomplished during the rating cycle are identified to 
management for consideration. The rating official determines 
preliminary CCS scores using the employee's input and the rating 
official's assessment of the overall contribution to the Laboratory 
mission based on the appropriate broadband level factor descriptors. 
For each factor, the rating official places the employee's contribution 
at a particular broadband level (I, II, III, or IV) and general range 
(i.e., high, medium, or low) to arrive at the preliminary score. 
(Inadequate employee contribution is addressed in section III, F.)
    The rating officials (e.g., branch chiefs) and their next level 
supervisor (e.g., the respective division chief) then meet as a group 
(e.g., first-level Meeting of Managers (MoM)) to review and discuss all 
proposed employee assessments and preliminary CCS scores. Giving 
authority to the group of managers to determine scores ensures that 
contributions are assessed and measured similarly for all employees. 
During the MoMs, the preliminary factor scores are further refined into 
decimal scores. For example, if the contribution level for a factor is 
at the lowest level of level I, a factor score of 1.0 is assigned. 
Higher levels of contribution are assigned factor scores increasing in 
0.1 increments up to 4.9. A factor score of 0.0 can be assigned if the 
employee does not demonstrate a minimum level I contribution. Likewise, 
a factor score of 5.9 can be assigned if the employee demonstrates a 
contribution that exceeds the broadband level IV descriptor. Rating 
officials must document justification for each proposed factor score.
    Factor scores are then averaged to give an overall CCS score. Each 
broadband range is defined for overall CCS scores from 0.75 to 5.25 as 
shown in Table 2. The maximum overall CCS score for broadband level IV 
is set at 5.25, to be consistent with the maximum overall CCS scores 
for other broadband levels (4.25 for broadband level III, 3.25 for 
broadband level II, and 2.25 for broadband level I). Therefore, when 
the average of CCS factor scores exceeds 5.25, the overall CCS score is 
set to 5.25 with the individual identified to upper management as 
having exceeded the maximum contribution defined by the broadband. The 
maximum compensation for each broadband is the basic pay corresponding 
with a n.25 overall CCS score (i.e., 2.25, 3.25, 4.25, and 5.25).
    Once the scores have been finalized, the pay pool manager approves 
the scores for the entire pay pool. Pay pool managers have the ability 
to look across the entire pay pool and may address anomalies through 
the appropriate management chain. However, CCS scores cannot be changed 
by managerial levels above the original group of supervisors that 
participated in the respective lowest level MoM. Contribution feedback 
and any training and/or career development needs are then discussed 
with the individual employees.
    If, on October 1, the employee has served under CCS for less than 
90 days, the rating official waits for the subsequent annual cycle to 
assess the employee. The employee is considered ``presumptive due to 
time'' and is assigned a score at the intersection of their basic pay 
and the SPL. Periods of approved, paid leave are counted toward the 90-
day time period.
    When an employee cannot be evaluated readily by the normal CCS 
assessment process due to special circumstances that take the 
individual away from normal duties or duty station (e.g., long-term 
full-time training, reserve military deployments, extended sick leave, 
leave without pay, etc.), the rating official documents the rating as 
``presumptive due to circumstance'' in the CCS software. The rating 
official then assesses the employee using one of the following options:
    (a) Recertify the employee's last contribution assessment; or
    (b) Assign a score at the intersection of the employee's basic pay 
and the SPL.
    Basic pay adjustments, i.e., decisions to give or withhold basic 
pay increases, are based on the relationship between the employee's 
actual CCS contribution score and the employee's current basic pay (as 
discussed in section III, E.5). Decisions for broadband movement 
(section III, E.6.) are also based on this relationship. Final pay 
determinations and broadband level changes are made by the pay pool 
manager.
4. Pay Pools
    Pay pool structure is under the authority of the Laboratory 
Commander/Executive Director, with each pay pool manager at the SES or 
full colonel level. The following minimal guidelines apply: (a) A pay 
pool is typically based on the organizational structure/functional 
specialty and should include a range of basic pay rates and 
contribution levels; (b) a pay pool must be large enough to constitute 
a reasonable statistical sample, i.e., 35 or more employees; (c) a pay 
pool must be large enough to encompass a second level of supervision 
since the CCS process uses a group of supervisors in the pay pool to 
determine assessments

[[Page 27879]]

and recommend basic pay adjustments; (d) the pay pool manager holds 
yearly pay adjustment authority; and (e) neither the pay pool manager 
nor supervisors within the pay pool recommend or set their own 
individual pay.
    The amount of money available for basic pay increases within a pay 
pool is determined by the general increase (``G'') and an incentive 
amount (``I'') drawn from money that would have been available for step 
increases and career ladder promotions, previously utilized under the 
General Schedule. The incentive amount is set by the AFRL Corporate 
Board and is considered adjustable to ensure cost discipline over the 
life of the Demonstration Project. The dollars derived from ``G'' and 
``I'' included in the pay pool are computed based on the basic pay of 
eligible employees in the pay pool as of September 30 of each year. Pay 
pool dollars are not transferable between pay pools.
5. Basic Pay Adjustment Guidelines
    The maximum compensation is limited to GS-15, step 10, basic pay. 
Any employee who's basic pay would exceed a GS-15, step 10, based on 
his or her overall CCS score, will be identified to upper management as 
having exceeded the maximum allowable compensation and will be paid a 
bonus to cover any difference between the GS-15, step 10, basic pay and 
the basic pay associated with his or her overall CCS score. Locality 
pay is added based upon each Demonstration Project employee's official 
duty station.
    Employees' annual contributions are determined by the CCS process 
described in section E.3. Their CCS scores are then plotted on the 
appropriate SPL graph based on their current basic pay as shown in 
Figure 5. The position of those points in relation to the SPL provides 
a relative measure (Delta Y) of the degree of overcompensation or 
undercompensation for each employee. This permits all employees within 
a pay pool to be rank-ordered by [Delta]Y, from the most 
undercompensated employee to the most overcompensated.
[GRAPHIC] [TIFF OMITTED] TN18MY10.005

    In general, those employees who fall below the SPL (indicating 
undercompensation, for example, employee X in Figure 5) should expect 
to receive greater basic pay increases than those who fall above the 
line (indicating overcompensation, for example, employee Z). A CCS 
assessment that falls on either rail is considered to be within the 
rails. Over time, employees will migrate closer to the standard pay 
line. The following provides more specific guidelines: (a) Those who 
fall above the upper rail (for example, employee Z) are given an 
increase ranging from zero to a maximum of ``G;'' (b) those who fall 
within the rails (for example, employee Y) are given a minimum of 
``G;'' and (c) those who fall below the lower rail (for example, 
employee X) are given at least their basic pay times ``G'' and ``I.'' 
If the pay increase results in a broadband movement for employees who 
do not meet APDP requirements that portion of the increase that takes 
them beyond the top of the broadband is withheld. The pay pool manager 
may give a bonus to an employee as compensation, in whole or part, to 
cover any difference between the employee's current basic pay and the 
basic pay associated with their new overall CCS score. This may be 
appropriate in a situation when the employee's continued contribution 
at this level is uncertain. Bonus criteria will be documented in AFRL 
implementing issuances.
    Each pay pool manager sets the necessary guidelines for the 
gradation of pay adjustments in the pay pool within these general 
rules: (1) Final decisions are standard and consistent within the pay 
pool; (2) are fair and equitable to all stakeholders; (3) maintain cost 
discipline over the Project life; and (4) be subject to review.
6. Broadband Level Movements
    Under the Demonstration Project, non-competitive broadband movement 
may occur once a year during the CCS process, if certain conditions are 
met. A key concept of the Demonstration Project is that career growth 
may be accomplished by movement through the broadband levels by 
significantly increasing levels of employee contribution toward the 
AFRL mission. An employee's contribution is a reflection of his/her CCS 
score, which is derived from the factor descriptors. Because the factor 
descriptors are written at progressively higher levels of work and are 
the same factor descriptors used in the classification process, higher 
scores reflect that the employee's contribution is equivalent to the 
level associated with the score he/she is awarded. The broadband level 
of a position may be increased when an employee consistently 
contributes at the higher broadband level through increased expertise 
and by performing expanded duties and responsibilities commensurate 
with the higher broadband level factor descriptors. If an employee's 
contributions impact and broaden the scope, nature, intent and 
expectations of the position and are reflective of higher level factor

[[Page 27880]]

descriptors, the classification of the position is updated accordingly. 
This form of movement through broadband levels is referred to as a 
seamless broadband movement and can only happen within the same career 
path; employees cannot cross over career paths through this process. 
The criteria is similar to that used in an accretion of duties scenario 
and must be met for an employee to move seamlessly to the higher 
broadband level and for this movement to occur, that is: (1) The 
employee's current position is absorbed into the reclassified position, 
with the employee continuing to perform the same basic duties and 
responsibilities (although at the higher level); and (2) the employee's 
current position is reclassified to a higher broadband level as a 
result of additional higher level duties and responsibilities. No 
additional broadband movement is guaranteed since there are no 
positions targeted to a higher broadband level within this system. It 
may take a number of years for contribution levels to increase to the 
extent a broadband level move is warranted, and not all employees 
achieve the increased contribution levels required for such moves.
    The simplified classification and broadbanding structure allows 
management to assign duties consistent with the broadband level of a 
position without the necessity to process a personnel action and 
provides managers authority to move employees between p