Science and Technology Reinvention Laboratory Personnel Management Demonstration Project, Department of the Navy (DON), Space and Naval Warfare Systems Center (SSC), SSC Atlantic and SSC Pacific, 52140-52171 [2010-20801]

Agencies

• Office of the Secretary
• DEPARTMENT OF DEFENSE

[Federal Register Volume 75, Number 163 (Tuesday, August 24, 2010)]
[Notices]
[Pages 52140-52171]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-20801]



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Part III





Department of Defense





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Science and Technology Reinvention Laboratory Personnel Management 
Demonstration Project, Department of the Navy (DON), Space and Naval 
Warfare Systems Center (SSC), SSC Atlantic and SSC Pacific; Notice

Federal Register / Vol. 75 , No. 163 / Tuesday, August 24, 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 Navy (DON), Space 
and Naval Warfare Systems Center (SSC), SSC Atlantic and SSC Pacific

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

ACTION: Notice of proposal to design and implement a personnel 
management demonstration project.

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SUMMARY: Section 342(b) of the National Defense Authorization Act 
(NDAA) for Fiscal Year (FY) 1995, Public Law (Pub. L.) 103-337 (10 
U.S.C. 2358 note), as amended by section 1109 of NDAA for FY 2000, 
Public Law 106-65, and section 1114 of NDAA for FY 2001, Public Law 
106-398, authorizes the Secretary of Defense to conduct personnel 
demonstration projects at DoD laboratories designated as Science and 
Technology Reinvention Laboratories (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 1105 of the NDAA for FY 2010, Public Law 111-84, 123 Stat. 
2486, October 28, 2009, designates additional DoD laboratories as STRLs 
for the purpose of designing and implementing personnel management 
demonstration projects for conversion of employees from the personnel 
system which applied on October 28, 2009. The SSC Atlantic and SSC 
Pacific are listed in subsection 1105(a) of NDAA for FY 2010 as two of 
the newly designated STRLs. These two STRLs will be the participants in 
the demonstration project proposal described in this Federal Register 
notice (FRN).

DATES: The SSC Atlantic and SSC Pacific demonstration project proposal 
may not be implemented until a 30-day comment period is provided, 
comments addressed, and a final Federal Register notice published. To 
be considered, written comments must be submitted on or before 
September 23, 2010. Implementation of this demonstration project, once 
approved, will begin no earlier than February 1, 2011, and no later 
than April 28, 2011.

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

FOR FURTHER INFORMATION CONTACT:
    SSC Atlantic: Mr. Erick Fry, SSC Atlantic STRL Transition Project 
Lead, SSC Atlantic, P.O. Box 190022, North Charleston, SC 29419-9022: 
or via e-mail: Erick.fry@navy.mil.
    SSC Pacific: Mr. Michael McMillan, SSC Pacific STRL Transition 
Project Lead, Space and Naval Warfare Systems Center Pacific, 53560 
Hull Street, San Diego, CA 92152-5001; or via e-mail: 
Michael.mcmillan1@navy.mil.

SUPPLEMENTARY INFORMATION:

1. Background

    SSC Atlantic and SSC Pacific are in a unique position relative to 
most DoD STRL laboratories. They previously participated in the 
development of and operated under the China Lake/Naval Ocean Systems 
Center demonstration project before being converted to the National 
Security Personnel System (NSPS). As a direct result of these personnel 
system experiences, SSC Atlantic and SSC Pacific have the benefit of 
being in earlier personnel systems designed to correct and alleviate 
shortfalls related to flexibilities in hiring, compensating, and 
retaining employees while assessing performance and its results in a 
dynamic environment. Given this exposure, SSC Atlantic and SSC Pacific 
consider STRL conversion an ideal evolutionary opportunity in employee 
management, and further intend to incorporate the most effective 
philosophies, methods, practices, and procedures from both legacy 
systems, as well as the experiences of other DoD STRL projects.
    The Centers' organizational experience indicates that the 
contribution-based personnel management and compensation methodology 
affords the best opportunity to appropriately evaluate and compensate 
employees, while emphasizing the employees' contributions towards 
organizational goals and objectives.
    SSC Atlantic and SSC Pacific must be able to compete with the 
private sector for the best talent, and be able to make job offers in a 
timely manner with the attendant compensation that attracts high-
quality employees. Once these employees are hired, it is necessary to 
have the means to appropriately reward and incentivize their 
contribution to ensure that the creative and motivational process is 
continually renewed. Compensation must be directly linked to the levels 
of individual contributions to the organization. High contributors must 
be rewarded both to encourage their continued contributions and to 
increase the probability of their retention. Similarly, lower 
contributing individuals should receive less compensation than high 
contributors and unacceptable performance must be addressed by 
appropriate corrective measures, e.g., an improvement plan, demotion, 
or removal. Compensation must also be appropriate to the position held 
and its responsibilities relative to the organizational goals.
    The Systems Centers will also take advantage of flexibilities that 
will simplify and speed classification and staffing actions for 
employees, such as competitive examining, expanded details and 
temporary promotions, and modified term appointments.

2. Overview

    The NDAA for FY 2010 not only designated new STRLs but also 
repealed the National Security Personnel System (NSPS) mandating 
conversion of NSPS covered employees to their former personnel system 
or one that would have applied absent the NSPS. A number of SSC 
Atlantic and SSC Pacific employees are covered by the NSPS and must be 
converted to another personnel system. Section 1105 of NDAA for FY 2010 
stipulates the STRLs designated in subsection (a) of section 1105 may 
not implement any personnel system, other than a personnel system under 
an appropriate demonstration project as defined in section 342(b) of 
Public Law 103-337, as amended, without prior congressional 
authorization. In addition, any conversion under the provisions of 
section 1105 shall not adversely affect any employee with respect to 
pay or any other term or condition of employment; shall be consistent 
with title 5 United States Code (U.S.C.) 4703(f); and shall be 
completed within 18 months after enactment of NDAA for FY 2010. 
Therefore, since SSC Atlantic and SSC Pacific are both designated STRLs 
by section 1105 of NDAA for FY 2010 and have NSPS covered employees, 
they must convert, at a minimum, their NSPS covered employees to a 
personnel management demonstration project before the end of April 
2011.

3. Access to Flexibilities of Other STRLs

    Flexibilities published in this Federal Register shall be available 
for use by the STRLs previously enumerated in section 9902(c)(2) of 
title 5, United States Code, which are now designated in section 1105 
of the NDAA for FY 2010, Public Law 111-84, 123 Stat. 2486, October 28, 
2009, if they wish to adopt them in

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accordance with DoD Instruction (DoDI) 1400.37; pages 73248 to 73252 of 
volume 73, Federal Register; and after the fulfilling of any collective 
bargaining obligations.

    Dated: August 18, 2010.
Mitchell S. Bryman,
Alternate OSD Federal Register Liaison Officer, Department of Defense.

Table of Contents

I. Introduction
    A. Purpose
    B. Expected Benefits
    C. Participating Organizations, Employees, and Union 
Representation
    D. Project Overview
    Figure 1-1. Employee Distribution by Geographic Location
II. Methodology
    A. Project Design
    B. Personnel System Changes
1. Hiring and Appointment Authorities
    a. Expanded Detail Authority
    b. Non-Citizen Hiring
    c. Extended Probationary/Trial Period
    d. Expanded Term Appointments
    e. Voluntary Emeritus Program
    f. Direct Hire Authority for Candidates With Advanced Degrees 
for Scientific and Engineering Positions
    g. Delegated Examining
    h. Distinguished Scholastic Achievement Appointments
2. Career Path Pay Band Structure
    Figure 2-1. SSC STRL Career Path and Pay Band Structure
    a. Career Paths
    c. Above GS-15
    d. Seamless Movement to a Higher Pay Band Level
3. Classification
    a. Simplified Classification Process
    b. Delegation of Classification Authority
    c. Classification Appeals
    d. Simplified Assignment Process
4. Pay Setting outside the Contribution Assessment and Recognition 
System (CARS)
    a. Advanced In-Hire Rate
    b. Promotion
    c. Reassignment
    d. Change to Lower Pay Band
    e. Locality Pay
    f. Staffing Supplements
    g. Other Provisions
    h. Distinguished Contribution Allowance (DCA)
    i. Pay Differential for Supervisory Functions
    j. Accelerated Compensation for Developmental Positions
    k. Educational Base Pay Adjustment
    l. Expanded Development Opportunity
    m. Awards
    n. Retention Incentives
5. Performance/Contribution Management Principles
    a. Performance Development Assistance
    b. Two-Level Performance Rating System
    c. Establishing Contribution Expectations
    d. On-Going Contribution Dialogue
    f. Performance Improvement Plan (PIP)
6. Contribution Assessment and Recognition System (CARS)
    a. Rating and Contribution Assessment Process
    (1) Eligibility
    (2) Contribution-Based Pay Pool.
    (4) Contribution Expectations and Element Weighting
    (5) Assessment
    (6) Normal Pay Range (NPR)--Base Pay Versus Contribution
    b. Compensation Decision Process
    (1) Employee Compensation
    (2) General Pay Increases
    (3) Base Pay Increases
    (4) Contribution Bonus Awards
    c. Reconsideration of Rating and Scoring Decisions
7. Reduction-in-Force (RIF)
8. Conversion From NSPS Into the Demonstration Project
    a. Placement Into Demonstration Project Pay Plans and Pay Bands 
From NSPS
    (1) Determine the Appropriate Demonstration Project Pay Plan
    (2) Determine the Appropriate Pay Band
    b. Pay Upon Conversion
    (1) Fair Labor Standards Act (FLSA) Status
    (2) Transition Equity
    c. Pay Band Retention
    d. Converting Employees on NSPS Term and Temporary Appointments
    e. Probationary Periods
    (1) Initial Probationary Period
    (2) Supervisory Probationary Period
9. Conversion From Other Personnel Systems
10. Movement Out of the SSC STRL Demonstration Project
    a. Termination of Coverage Under the SSC STRL Demonstration 
Project Pay Plans
    b. Determining a GS-Equivalent Grade and GS-Equivalent Rate of 
Pay for Pay Setting Purposes When an SSC Employee's Coverage by a 
Demonstration Project Pay Plan Terminates or the Employee 
Voluntarily Exits the SSC STRL Demonstration Project
    (1) Equivalent GS-Grade-Setting Provisions
    (2) Equivalent GS-Rate-of-Pay-Setting Provisions
    (3) Employees With Pay Retention
III. SSC STRL Demonstration Project Duration
IV. SSC STRL Demonstration Project Evaluation Plan
    A. Overview
    B. Evaluation Model
    C. Evaluation
    D. Method of Data Collection
V. Demonstration Project Costs
VI. Automation Support
    A. General
    B. Defense Civilian Personnel Data System (DCPDS)
VII. Project Oversight and Management
VIII. Required Waivers to Law and Regulation
    A. Waivers to title 5, U.S.C.
    B. Waivers to title 5
IX. Appendices
    Appendix A: STRL Demonstration Project Series
    Appendix B: SSC STRL Demonstration Project Series Distribution
    Appendix C: Baseline Performance Standards (Career Path-
Independent)
    Appendix D: Core Contribution Elements
    Appendix E: Element Detail Example (Technical) for Science & 
Engineering Career Path (ND)
    Appendix F: Sample Pay Range/Contribution Chart (for ND4 Pay 
Band)
    Appendix G: Basic Compensation Matrix
    Appendix H: Intervention Model

I. Introduction

A. Purpose

    The goal of this personnel demonstration project is to implement a 
personnel management system incorporating the practices from existing 
STRL and other personnel management systems best suited to the specific 
needs of SSC Atlantic and SSC Pacific. As the Navy's leader in Command, 
Control, Communications, Computers, Intelligence, Surveillance, and 
Reconnaissance (C4ISR), SSC Atlantic and SSC Pacific must be able to 
attract, hire, and retain the best scientists, engineers, business, and 
support personnel in the labor market. The organization's human 
resources management authorities, policies, and practices must have the 
flexibility needed to respond quickly to changes in mission, 
organizational constraints, workload, and market conditions. Unless 
specifically stated otherwise, the Technical Directors/Commanding 
Officers of SSC Atlantic and SSC Pacific may delegate their authority 
to effectively implement the provisions of this notice. Any such 
delegations, including details of implementation, will be documented by 
local business rules and/or implementing instructions.
    Many aspects of a demonstration project are experimental. 
Modifications may be made from time to time as experience is gained, 
results are analyzed, and conclusions are reached on how the system is 
working. The provisions of this project plan will not be modified, or 
extended to individuals or groups of employees not included in the 
project plan without the approval of the DUSD(CPP). The provisions of 
DoDI 1400.37 are to be followed for any modifications, adoptions, or 
changes to this demonstration project plan.

B. Expected Benefits

    In order to remain the DON leader in C4ISR, SSC Atlantic and SSC 
Pacific must be able to compete with the private sector for the most 
talented, technically proficient candidates, and must have in place a 
system that fosters their development, enhances their performance and 
experience, and provides a strong retention incentive.
    The SSC STRL demonstration project must enable and enhance:
    1. The ability to attract highly qualified scientific, technical, 
business,

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and support employees in today's competitive environment;
    2. The ability to select personnel and make job offers in a timely 
and efficient manner, with the attendant compensation that attracts 
high-quality, in-demand employees;
    3. Improved employee satisfaction with pay setting and adjustment, 
recognition, and career advancement opportunities;
    4. Human Resource (HR) flexibilities needed to staff, shape, and 
adjust to evolving requirements associated with sustaining a quality 
workforce for the future;
    5. Increased retention of high-level contributors; and
    6. Simpler and more cost effective HR management processes.
    To effectively meet the above expectations, the SSC STRL 
demonstration project has identified and established in this notice 
those features and flexibilities that provide the mechanisms to achieve 
its objectives. Those features and flexibilities alone, however, will 
not ensure success.
    The nature of the SSC STRL and its ambitious workforce goals will 
require human resources support at an enhanced level. A traditional 
process-oriented and reactive construct will serve neither the mission 
nor the management needs of the two organizations. A primary emphasis 
of the SSC demonstration project is its streamlined hiring, 
sophisticated contribution-based compensation system, talent 
acquisition/retention, and professional human capital planning and 
execution. Accordingly, successful execution of that vision includes a 
human resources service delivery model that is highly proactive, 
expertly skilled in analytical tools, and fully capable of engaging as 
a strategic partner and trusted agent of a modern multi-faceted defense 
laboratory.

C. Participating Organizations, Employees, and Union Representation

    Both SSC Atlantic and SSC Pacific will participate in the project. 
The primary sites of SSC Atlantic and SSC Pacific are in two major 
geographic locations, Charleston, SC, and San Diego, CA respectively, 
but the organizations employ personnel at more than two dozen locations 
worldwide. Locations are diverse in employment profiles and size, 
ranging from several thousand personnel, to a single embedded employee. 
Both major SSC sites are engaged in the full spectrum of research, 
development, test and evaluation, engineering, and fleet support.
    Both SSC Atlantic and SSC Pacific are predominantly Navy Working 
Capital Fund organizations. Instead of receiving congressionally 
appropriated funds, operations are funded by dollars received from 
other government agencies on a fee-for-service/break-even basis. In 
order to fully meet naval requirements and successfully assist in the 
execution of the Navy's mission, SSC Atlantic and SSC Pacific must 
maximize management effectiveness and efficiency in order to control 
expenditures, which support a cost competitive position as compared 
with other government agencies.
    SSC Atlantic's and SSC Pacific's STRL personnel management 
demonstration project is intended to govern all SSC Atlantic and SSC 
Pacific employees with the following exceptions: Bargaining Unit 
employees (as stipulated in the paragraph below), Federal Wage System 
employees, Senior Executive Service (SES), Senior Level (SL), and 
Scientific and Professional (ST) personnel.
    SSC Atlantic's and SSC Pacific's human capital complement includes 
a small number of employees (under 150 total) that are represented by 
exclusive bargaining units. Prior to including any employees in 
bargaining units in the STRL demonstration project, SSC Atlantic and 
SSC Pacific will fulfill their obligation to consult and/or negotiate 
with these labor organizations in accordance with 5 U.S.C. 4703(f) and 
7117, as appropriate. Figure 1-1 identifies SSC Atlantic and SSC 
Pacific employees by major geographic location.

D. Project Overview

    In response to the authority granted by Congress to develop a 
personnel management demonstration project, SSC Atlantic and SSC 
Pacific chartered a Transition Team tasked with the design and 
implementation of the new demonstration project plan. The joint team is 
responsible for developing all associated deliverables, proposals, and 
implementation details. The Transition Team developed its initial 
concept as a result of information-seeking and assistance visits at the 
NRL, Office of Naval Research, and Naval Sea Systems Command, Surface 
Warfare Center, Dahlgren Division, as well as from consultative 
sessions with numerous other STRL laboratory representatives across the 
DoD. The Transition Team continues to solicit and receive information 
and advice from the DUSD(CPP), DoD Civilian Personnel Management 
Service, and a number of organizations with ongoing demonstration 
projects. Information and suggestions have been solicited from SSC 
Atlantic and SSC Pacific employees through an ongoing series of 
interviews, briefings, and small-group meetings.
BILLING CODE 5001-06-P

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[GRAPHIC] [TIFF OMITTED] TN24AU10.005

BILLING CODE 5001-06-C

II. Methodology

A. Project Design

    There are four fundamental elements of the SSC STRL personnel 
management system. The fundamentals are (1) hiring and staffing 
flexibilities, (2) simplified classification, (3) pay banding, and (4) 
contribution-based compensation and assessment. The hiring and staffing 
flexibilities are being implemented in order to better recruit, hire, 
and retain the most capable, qualified, and competent workforce in the 
job market today. Simplified classification is being implemented to 
streamline the job classification process, simplify the effects of 
administrative processes on personnel, and allow for more flexibility 
in making job reassignments. The pay banding structure will create five 
career paths with multiple pay bands within each career path 
representing the phases of career progression that are typical for the 
respective careers. This banding structure will enable managers to more 
appropriately reward and retain a diverse workforce using principles of 
pay equity and career progression. The contribution-based compensation 
system is characterized by an assessment of an employee's contribution 
to the organization and an appropriate pay allocation predicated on the 
assessed level of contribution. The contribution-based compensation and 
assessment is being implemented to more appropriately recognize and

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reward the employees' overall efforts and results.
    While much of the demonstration project will be applied uniformly 
across both Systems Centers, there are decisions that will be delegated 
to the respective Systems Centers so that the needs and cultures of 
those organizations may be taken into account. Decisions at the local 
level will be made through established governance boards set up by the 
appropriate Center Technical Director or Commanding Officer.

B. Personnel System Changes

1. Hiring and Appointment Authorities
a. Expanded Detail Authority
    SSC Atlantic and SSC Pacific will have an Expanded Detail Authority 
providing the ability to: (1) Effect details up to one year to 
specified positions at the same or similar level without the current 
120-day renewal requirement specified at 5 U.S.C. 3341; and (2) effect 
details to a higher level position up to 1 year within a 24-month 
period without competition. Details to higher level positions beyond 
one year in a 24-month period require approval of the Technical 
Director/Commanding Officer and are subject to competitive procedures. 
The specifics of these authorities will be stipulated by local business 
rules, policies, or procedures as organizational experience dictates.
b. Non-Citizen Hiring
    Where Executive Orders or other regulations limit hiring non-
citizens to the excepted service, both SSC Atlantic and SSC Pacific 
will have the authority to approve the hiring of non-citizens into 
competitive service positions when there are no qualified U.S. 
citizens, and the candidate meets all applicable immigration and 
security requirements. In order to make a determination that there are 
no qualified candidates, the position will be advertised extensively 
using paid advertisements in venues such as major newspapers, 
scientific journals, and electronic media as well as through ``normal'' 
recruiting methods. If a non-citizen candidate is the only qualified 
candidate for the position, the candidate may be appointed. The 
selection is subject to approval by the SSC Atlantic and SSC Pacific 
Technical Director/Commanding Officer. This authority will not be 
delegated further.
c. Extended Probationary/Trial Period
    (1) Initial Probationary Period. Candidates hired under the 
demonstration project into positions classified to the Science and 
Engineering and Administrative Specialist/Professional occupational 
families (the nature of whose work requires the manager to have more 
than one year to assess the employee's job performance) will serve a 
three-year probationary/trial period. Personnel assigned to positions 
classified to the Science and Engineering Technical/Technician and 
General Support occupational families will serve a one-year 
probationary/trial period.
    (2) Supervisory Probationary Period. Personnel assigned for the 
first time to supervisory/managerial positions which have a career path 
pay plan indicator of NM will serve a one-year supervisory probationary 
period. The one-year supervisory/managerial probationary period may run 
concurrently with the required initial probationary period for the 
occupational family to which an employee's position is classified.
    (3) Transitional Probationary Periods. Any personnel entering the 
demonstration project from another Federal government personnel 
management system, who have served an initial or supervisory 
probationary period under that system, will be deemed to have met the 
SSC STRL probationary period requirements. Personnel transitioning into 
the SSC STRL demonstration project who have begun, but have not yet 
completed an initial or supervisory probationary period under another 
Federal government system, will have met the probationary requirements 
of SSC STRL when they have completed the terms of the initial and/or 
supervisory probationary periods under which they were hired or placed.
    (4) Termination of Initial Probationary Period Employees. Initial 
probationary employees may be terminated when they fail to demonstrate 
proper conduct, technical competency, and/or acceptable performance for 
continued employment, and for conditions arising before employment. 
When a supervisor decides to terminate an employee during the initial 
probationary period because his/her work performance or conduct is 
unacceptable, the supervisor shall terminate the employee's services by 
written notification stating the reasons for termination and the 
effective date of the action. The information in the notice shall, at a 
minimum, consist of the supervisor's conclusions as to the inadequacies 
of the employee's performance or conduct, or those conditions arising 
before employment that support the termination.
    (5) Termination of a Supervisory Probationary Period. The 
supervisory probationary period may be terminated when supervisors fail 
to demonstrate proper conduct, technical competency, and/or acceptable 
performance for continued assignment as a supervisor, and for 
conditions arising before supervisory assignment. When a supervisory 
probationary period is terminated by the supervisor (the manager) of 
the supervisor in question the manager shall terminate the supervisory 
assignment by written notification stating the reasons for supervisory 
assignment termination and the effective date of the action. The 
information in the notice shall, at a minimum, consist of the manager's 
conclusions as to the inadequacies of the supervisor's performance or 
conduct, or those conditions arising before supervisory assignment that 
support the termination of the assignment.
    (6) All initial and supervisory probationary period requirements 
will be outlined in local business rules, policies, or procedures. 
Preference eligibles will maintain their rights under applicable law 
and regulation in both the competitive and excepted service.
d. Expanded Term Appointments
    The Systems Centers perform engineering and scientific work that 
often has project durations of three to six years. The current four-
year limitation on term appointments, as described in 5 CFR part 316, 
imposes a burden on the Centers by forcing the termination of some term 
employees prior to completion of projects they were hired to support. 
This disrupts the engineering and acquisition process and reduces the 
Centers' ability to serve their customers. Under the demonstration 
project, SSC Atlantic and SSC Pacific have the authority to appoint 
individuals under modified term appointments for a period of more than 
one year but not more than five years when the need for an employee's 
services is not predicted to be permanent. These appointments may be 
extended one additional year for a total of six years. Employees hired 
under the modified term appointment authority may be eligible for 
conversion to career or career-conditional appointments in the 
competitive service. To be converted, the employee must have: (1) 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 a career or 
career-conditional appointment at a later date; (2) served a minimum of 
two years of continuous service in the term position; and (3) have a 
current contribution score consistent with acceptable contribution/
performance criteria as

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established by each Systems Center. Applicable probationary periods 
apply to both temporary and permanent positions.
    Employees serving under term appointments at the time of conversion 
to the SSC STRL demonstration project may be converted to modified term 
appointments provided they were hired for their current positions under 
competitive procedures. These employees may be eligible for conversion 
to career-conditional or career appointments provided they have 
completed at least two years of continuous service, and are performing 
at a satisfactory level. Should this criterion not be met, legacy term 
employees will remain on existing appointments until the not-to-exceed 
date or until some other terminating event occurs. These appointments 
may be extended in accordance with the requirements of 5 CFR part 316. 
The positions under this feature will be defined by local business 
rules, policies, or procedures.
e. Voluntary Emeritus Program
    SSC Atlantic and SSC Pacific will establish a Voluntary Emeritus 
Program. Under the demonstration project, the Systems Centers' 
Technical Directors/Commanding Officers have the authority to offer 
retired or separated employees in Science and Engineering (S&E) or 
Administrative/Professional occupational families (see Appendix B) 
voluntary assignments (non-paid) in the Centers. This authority may not 
be further delegated. The Voluntary Emeritus Program ensures continued 
quality research, mentoring, support, and program management while 
reducing the overall base pay by allowing higher paid employees to 
retire with the opportunity to retain a presence in the Center's 
workplace. The program is beneficial during manpower reductions as 
senior personnel accept retirement and return to provide valuable on-
the-job training or mentoring to less experienced employees. This 
authority includes employees who have retired or separated from Federal 
service. Voluntary Emeritus Program assignments are not considered 
employment by the Federal government, except for purposes of on-the-job 
injury compensation. Thus, such assignments do not affect an employee's 
entitlement to retain buyouts or severance payments based on an earlier 
separation from Federal service.
    To be accepted into the Voluntary Emeritus Program, a volunteer 
must be recommended by a manager within the Centers. Everyone who 
applies is not automatically entitled to a voluntary assignment. The 
process must be clearly documented and records retained at the command 
level in accordance with established business rules, procedures, or 
processes.
    To encourage participation, the volunteer's Federal civilian or 
military retirement pay will not be affected while serving in a 
voluntary capacity.
    Volunteers are not permitted to monitor contracts on behalf of the 
government or to participate on any contracts or solicitations where a 
conflict of interest exists.
    An agreement is established between the volunteer and the 
respective Center and is reviewed by the local legal counsel 
representative. The agreement must be finalized in advance and shall 
include as a minimum:
    (1) A statement that the voluntary assignment does not constitute 
an appointment in the Civil Service and is without pay or any other 
form of compensation;
    (2) The volunteer waives any and all claims against the Government 
because of the voluntary assignment except for purposes of on-the-job 
injury compensation as provided in 5 U.S.C. 8101(1)(B);
    (3) Volunteer's work schedule as needed or requested;
    (4) Length of agreement (defined by length of project or time 
defined by weeks, months, or years);
    (5) Support provided by the Center (travel, administrative, office 
space, supplies);
    (6) 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;
    (7) A provision allowing either party to void the agreement with 
written notice to the other. (There are no appeal or grievance rights 
for a volunteer); and
    (8) The level of security access required--any security clearance 
required by the assignment is managed by the appropriate Systems Center 
while the volunteer is a member of the Voluntary Emeritus Program.
f. Direct Hire Authority for Candidates With Advanced Degrees for 
Scientific and Engineering Positions
(1) Background
    The Systems Centers have an urgent need for direct hire authority 
to appoint qualified candidates possessing an advanced degree to 
scientific and engineering positions in competitive and excepted 
service. The market is extremely competitive with industry and academia 
for the small supply of highly-qualified and security clearable 
candidates with a Masters Degree or PhD in science or engineering. 
There are 35,000 scientists and engineers employed in the DoD 
laboratories; 27% hold Masters Degrees, while 10% are in possession of 
a PhD. The Systems Centers employ around 3,308 S&Es; 29% holding 
Masters Degrees, while 4% are in possession of a PhD. Over the next 
five years, the Systems Centers plans to hire approximately 400 of the 
country's best and brightest S&Es just to keep pace with attrition. 
This number does not reflect the impact of other actions affecting the 
demand of S&Es in the Systems Centers, e.g., Base Realignment and 
Closure, in-sourcing, and other initiatives which add to the increased 
demand for scientific and engineering expertise. Additionally, 
statistics indicate that the available pool of advanced degree, 
clearable candidates is substantially diminished by the number of non-
U.S. citizens granted degrees by U.S. institutions. For instance, in 
2006, 20% of Masters Degrees in science and over 35% of PhDs in science 
were awarded to temporary residents.
    It is expected that this hiring authority, together with 
streamlined recruitment processes, will be very effective in 
accelerating the hiring process for candidates possessing a PhD. For 
instance, under a similar authority in the National Defense 
Authorization Act for Fiscal Year 2009, section 1108 (Pub. L. 110-417), 
October 28, 2009, one STRL had fifteen PhD selectees in 2009 for the 
sixteen vacancies for which they were using this hiring authority. 
Another STRL, using this expedited hiring authority in calendar year 
2009, made thirty firm hiring offers in an average of thirteen days 
from receipt of paper work in the Human Resources Office. Of these 
thirty selectees, twenty-three possessed PhDs.
    (2) Definitions:
    (a) Scientific and engineering positions are defined as all 
professional positions in scientific and engineering occupations (with 
a positive education requirement) utilized by the Centers.
    (b) An advanced degree is a Master's or higher degree from an 
accredited college or university in a field of scientific or 
engineering study directly related to the duties of the position to be 
filled.
    (c) Qualified candidates are defined as candidates who:
    i. Meet the minimum standards for the position as published in 
OPM's operating manual, ``Qualification Standards for General Schedule 
Positions,'' or the laboratory's

[[Page 52146]]

demonstration project qualification standards specific to the position 
to be filled;
    ii. Possess an advanced degree; and
    iii. Meet any selective factors.
    (d) ``Employee'' is defined by section 2105 of title 5, U.S.C.
    (3) Provisions:
    (a) Use of this appointing authority must comply with merit system 
principles when recruiting and appointing candidates with advanced 
degrees to covered occupations.
    (2) Qualified candidates possessing an advanced degree may be 
appointed to both competitive and excepted service without regard to 
the provisions of subchapter 1 of chapter 33 of title 5, United States 
Code, other than sections 3303, 3321, and 3328 of such title.
    (3) The hiring threshold for this authority shall be consistent 
with DoD policy and legislative language as expressed in any National 
Defense Authorization Act addressing such.
    (4) When completing the personnel action, the following will be 
given as the authority for the Career-Conditional, Career, Term, 
Temporary, or special demonstration project appointment authority: 
Section 1108, NDAA for FY 09.
    (5) This authority will be administered by the servicing Human 
Resource Office and Human Resources Service Center in accordance with 
the Department of Navy's common business processes, systems and tools.
    (6) Evaluation of this hiring authority will include information 
and data on its use such as numerical limitation, hires made, 
declinations, how many veterans hired, declinations, difficulties 
encountered, and/or recognized efficiencies in accordance with 
established internal business rules, policies, or procedures.
g. Delegated Examining
    The Systems Centers need a process that will allow for the rapid 
filling of vacancies, is less labor intensive, and is responsive to the 
needs of the Centers.
    (1) Delegated Examining Authority. The Systems Centers propose to 
demonstrate a streamlined examining process for both permanent and non-
permanent positions. Competitive service positions with SSC ATLANTIC 
and SSC PACIFIC will be filled through Merit Staffing or under 
Delegated Examining. This authority will be administered by the 
applicable servicing Human Resource Office and Human Resources Service 
Center consistent with veterans' preference and merit principles in 
accordance with the Department of Navy's common business processes, 
systems, and tools.
    (2) Description of Examining Process: The primary change in the 
examining process to be demonstrated is the elimination of 
consideration according to the ``rule of three.'' When there are no 
more than 15 qualified applicants and no preference eligibles, all 
eligible applicants are immediately referred to the selecting official 
without rating or ranking. Rating and ranking will be required only 
when the number of qualified candidates exceeds 15 or there is a mix of 
preference and non-preference applicants. Statutes and regulations 
covering veterans' preference will be observed in the selection process 
and when rating and ranking are required.
h. Distinguished Scholastic Achievement Appointments
    SSC Atlantic and SSC Pacific 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 for positions in the S&E pay bands. This enables 
both Centers to respond quickly to hiring needs for eminently qualified 
candidates possessing distinguished scholastic achievements.
    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.
    Preference eligibles who meet the above criteria will be considered 
ahead of non-preference eligibles. In making selections, to pass over 
any preference eligible(s) to select a non-preference eligible requires 
approval under current objection procedures.
2. Career Path Pay Band Structure
    A fundamental element of the Centers' demonstration project is a 
simplified classification and pay component. Like other STRL 
demonstration projects, the proposed pay banding approach is tied to 
the fifteen GS grade levels and the above GS-15 level (discussed in 
paragraph II.B.2.c), and reduces them into five to six pay bands within 
a career path (Figure 2-1). GS occupations are further broken down into 
five separate career paths: Science and Engineering (ND), S&E 
Technical/Technician (NR), Administrative Specialist/Professional (NO), 
General Support (NG), and Supervisor/Manager (NM). In the figure below, 
dotted areas in the ND and NM pay bands are indicative of an overlap in 
pay, rather than a separate pay band. For example, the ND 2 pay band 
begins at the equivalent of the GS-5, step 1, and ends at the GS-9, 
step 10; while the ND 3 band begins at the equivalent of the GS-9, step 
1, and ends at the GS-11, step 10.

[[Page 52147]]

[GRAPHIC] [TIFF OMITTED] TN24AU10.006

    SSC STRL will develop new and streamlined career path pay band 
descriptors that will replace the OPM classification standards. While 
the SPAWAR pay band descriptors will be based on OPM classification 
standards, they will be different in that these generic pay band 
descriptors encompass multiple occupational series and provide maximum 
flexibility for the organization to assign individuals consistent with 
the needs of the organization and the individual's qualifications. 
These generic career path pay band descriptors will include the 
essential criteria for each pay band within each career path by listing 
the characteristics of the work, the responsibilities of the position, 
and the skills required to perform the function. New pay band 
descriptors will make personnel packages easier to prepare by 
minimizing writing time and will be a more useful tool for other 
management functions. Career progression between pay bands will occur 
by promotion or through seamless pay band movement (paragraph 
II.B.2.d), and pay progression within pay bands will occur primarily 
through contribution-based pay.
a. Career Paths
    The Systems Centers classification system will be based upon career 
paths and pay bands. Occupations with similar characteristics (as 
defined under OPM guidance) will be grouped together into one of five 
career paths, with pay bands designed to facilitate pay progression. 
Each career path will be composed of pay bands corresponding to 
recognized advancement and career progression expected within the 
occupations. Pay bands will replace individual grades and will not be 
the same in each career path. The designated career paths are: Science 
and Engineering (S&E) (ND), S&E Technical/Technician (NR), 
Administrative Specialist/Professional (NO), General Support (NG), and 
Supervisor/Manager (NM). Like the other STRL Demonstration projects, 
the GS classification occupational series would be retained. SSC STRL 
currently has positions in approximately 156 occupational series in 16 
occupational groupings. Titles of the career paths and associated 
classification occupational series for each path are provided in 
Appendices A and B respectively. The distribution of the occupational 
series to career paths reflects only those occupational series which 
currently exist within the two Systems Centers. Additional occupational 
series may be added as a result of changes in mission requirements or 
OPM recognized occupations. These additional occupational series will 
be placed in the appropriate career path consistent with the 
established career path definitions.
    The Science and Engineering career path includes professional 
engineering and scientific positions in the physical, biological, 
psychological (engineering psychology), mathematical, and computer 
sciences and student positions for training in these disciplines. 
Specific course work or educational degrees are required for these 
occupations. Employees with advanced degrees or qualifications may be 
advanced more rapidly, or hired at higher pay bands than others. 
Occupational series and their titles included in this career path are 
listed in Appendices A and B. Five pay bands have been established for 
the Science and Engineering career path.
    The Technical/Technician career path includes the nonprofessional 
technician positions that support scientific and engineering activities 
through the application of various skills and techniques in electrical, 
mechanical, physical science, biology, mathematics, information 
technology and computer fields, and student positions for training in 
these disciplines. This career path includes positions such as computer 
technician, engineering technician, and physical sciences technician. 
Employees in these positions may or may not require specific course 
work, and will otherwise progress through bands on the basis of 
evaluated contribution. Specific series and their titles included in 
this career path are listed in Appendices A and B. Five pay bands have 
been established for this career path.
    The Administrative Specialist/Professional career path includes the 
professional or specialist positions in such administrative, technical, 
and managerial fields as finance, procurement, human resources, 
information technology, legal, librarianship, public information, 
safety, social sciences, program and project management, and analysis, 
and student positions for training in these disciplines. This career 
path includes legal counsel, management and other analysts, finance, 
accounting, contract specialists, and information technology managers. 
Employees in this career path may or may not have specific educational 
requirements, and will otherwise advance through bands based on 
evaluated contribution. Series and their titles included in this career 
path are listed in Appendices A and B. Six pay bands have been 
established for this career path.
    The General Support career path includes the assistant and clerical 
positions providing support in such fields as budget, finance, supply, 
human resources; positions providing support through application of 
typing, clerical, or secretarial knowledge and skills; and student 
positions for training in these

[[Page 52148]]

disciplines. This career path includes mail and correspondence clerks, 
typists, purchasing, contracting, and legal clerks/assistants, and 
property disposal technicians. Employees in this career path may or may 
not have specific educational requirements, and will otherwise advance 
through bands based on evaluated contribution. Series and titles 
included in this career path are listed in Appendices A and B. Five pay 
bands have been established for this career path.
    The Supervisor/Manager career path includes employees performing 
the supervisory functions listed as follows: Assign work to 
subordinates based on priorities, difficulty of assignment, and the 
capabilities of employees; provide technical or specialized oversight; 
develop contribution plans and rate employees; interview candidates for 
subordinate positions; recommend hiring, promotion, or reassignments; 
take corrective action, such as warnings and reprimands; identify 
developmental and training needs of employees; and provide and arrange 
for needed training. A supervisory position cannot be established on 
the basis of only one subordinate position. A supervisory position 
cannot be established on the basis of contractor personnel. The 
Supervisor/Manager career path can include any series. Placement within 
the supervisory career path will take into account the level of work of 
the employees being supervised as well as the level of the non-
supervisory duties. Employees in this career path may or may not have 
specific requirements as established by internal business rules, 
policies, or procedures, and will otherwise advance through bands based 
on evaluated contribution. Six pay bands have been established for this 
career path (this career path omits pay band 1 to maintain numerical 
parity with other career paths).
b. Career Path Pay Bands and Levels of Responsibility
    A fundamental purpose of pay banding is to make the distinctions 
between levels easier to discern and more meaningful. The wider scope 
of classification criteria with pay bands provides more flexibility in 
moving individuals to other positions quickly within the pay band as 
mission needs dictate. These wider pay ranges provide a better ability 
to offer more competitive starting salaries to attract candidates to 
highly specialized positions and appropriate compensation for work 
results achieved thereby increasing retention. The basis for the 
demonstration project pay system is each pay band having a base pay 
that exactly corresponds to base pay of the encompassed GS grade 
levels. This continued linkage with the GS system will result in 
adjustments to the pay band base pay ranges through future general pay 
increases under the GS System. Within each career path, pay bands 
typically include the following categories of positions: Student 
trainee and/or entry level, developmental, full performance level, and 
expert.
    With fewer classification grades of difficulty and responsibilities 
of work than the General Schedule, the level of responsibility 
reflected in each pay band typically encompasses the responsibilities 
of two or more GS grades. For example, the responsibilities of a pay 
band covering work at the full performance level may represent a 
synthesis of GS-10 and GS-11 responsibilities.
    The S&E ND 2 and ND 3 pay bands overlap at the GS-9 level. Some of 
the engineers and scientists with a Bachelor of Science degree are 
hired with a starting base salary pay that exceeds the equivalent of a 
GS-8, step 10. In order to continue to accommodate the current 
flexibility of our managers to set base pay at this level, a pay band 
that extends to the GS-9, step 10-equivalent, yet at the same time 
accommodates classification of entry-level duties at the GS-7 level, is 
required. Furthermore, master's degree scientists and engineers are 
hired at the base pay equivalent of a GS-10 or GS-11, but the pay band 
still needs to accommodate classification of duties at the GS-9 level. 
In order to do this, both an entry-level pay band that goes up to the 
GS-9, step 10, and a second level pay band that begins at the GS-9, 
step 1, are required. The Systems Centers' experience with very wide 
pay bands for developmental positions was somewhat problematic for 
managers and supervisors. Due to the inconsistency in application and 
timing of promotions, there was a wide variation in base pay for 
employees performing similar functions. In order to overcome this 
potentially confusing scenario, SSC STRL will implement an additional 
level in the pay band, as has previously been employed by NAVSEA in 
other pay bands. NAVSEA introduced the overlapping GS level in their 
Administrative/Technical NT pay band at the GS-14 equivalent level in 
both NT 5 and NT 6. For the SSC STRL demonstration project, the overlap 
at the GS-9 level in the ND 2 and ND 3 pay bands allows more 
flexibility in adjusting base pay of our employees to an appropriate 
level, commensurate with contribution.
c. Above GS-15
    The pay banding plan for the Supervisor/Manager career path 
includes a pay band 6 to accommodate classification of professional 
scientific and engineering positions having duties and responsibilities 
that exceed the GS-15 classification criteria. This pay band is based 
on the Above GS-15 position concept found in other STRL personnel 
management demonstration projects that was created to solve a critical 
classification problem. The STRLs have positions warranting 
classification above GS-15 because of their technical expertise 
requirements including inherent supervisory and managerial 
responsibilities. However, these positions are not considered to be 
appropriately classified as Scientific and Professional Positions (STs) 
because of the degree of supervision and level of managerial 
responsibilities. Neither are these positions appropriately classified 
as Senior Executive Service (SES) positions because of their 
requirement for advanced specialized scientific or engineering 
expertise and because the positions are not at the level of general 
managerial authority and impact required for an SES position.
    The original Above GS-15 Position concept was to be tested for a 
five-year period. The number of trial positions was set at 40 with 
periodic reviews to determine appropriate position requirements. The 
Above GS-15 Position concept is currently being evaluated by DoD 
management for its effectiveness; continued applicability to the 
current STRL scientific, engineering and technology workforce needs; 
and appropriate allocation of billets based on mission requirements. 
The degree to which the Centers plan to participate in this concept and 
develop classification, compensation and performance management policy, 
guidance, and implementation processes will be based on the final 
outcome of the DoD evaluation.
d. Seamless Movement to a Higher Pay Band Level
    Under the SSC STRL demonstration project, non-competitive movement 
to a higher pay band may occur via the current accretion of duties 
process, as determined by local business rules, and in accordance with 
DoD/DON guidance and regulation; and once a year as a direct result of 
the Contribution Assessment and Recognition System (CARS) process (see 
paragraph II.B.5), as long as certain specific conditions are met. 
Movement to pay band 6 of the NM pay plan will be governed by DoD 
guidance and regulation. A key concept

[[Page 52149]]

of the demonstration project is that career growth in a career path may 
be accomplished by movement through a career path's pay bands by 
significantly increasing levels of responsibilities, scope of work, and 
duties providing opportunities for increasing employee contributions 
toward the organizational mission. An employee's contribution is a 
reflection of his/her contribution score, which is derived from the 
employee's performance relative to contribution elements. Because 
contribution elements are written at progressively higher levels of 
expected contribution, and equate therefore to work performed at higher 
pay band levels, higher scores reflect that the employee's contribution 
is equivalent to the pay band level associated with the score he/she is 
awarded.
    The pay band level of a position may be increased when an employee 
consistently contributes at the higher pay band level through increased 
expertise and by performing expanded duties and responsibilities 
commensurate with the higher pay band's contribution elements. If an 
employee's contributions consistently enhance and broaden the scope, 
nature, intent and expectations of the position and are reflective of 
higher pay band level contribution elements, the classification of the 
position can be updated accordingly. This form of movement through pay 
bands in a career path is referred to as a seamless pay band 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 SSC Atlantic's and SSC Pacific's current accretion of duties 
process and must be met for an employee to move seamlessly to the 
higher pay band level. For this movement to occur: (1) The employee's 
current position is absorbed into the reclassified position, with the 
employee continuing to perform the same basic duties and 
responsibilities, albeit at a higher level and (2) the employee's 
current position is reclassified to a higher pay band as a result of 
additional higher level duties and responsibilities. No additional pay 
band movement to another higher pay band level is guaranteed. It may 
take a number of years for contribution levels to increase to the 
extent a pay band move is warranted, and not all employees will achieve 
the increased contribution levels required for such moves.
    Movement to a higher level pay band may be ``triggered'' by the 
CARS process and deferred to the standard accretion schedule or may be 
carried out following the appraisal cycle as an immediate result of the 
CARS process. In either case, pay band movement is always at the 
discretion of the leadership of the Centers and only as a result of 
direct leadership decision. In no cases is such movement ``automatic'' 
on the basis of contribution score-based performance alone.
    Any resulting changes in pay bands that occur as a result of the 
CARS process will be processed and documented with the appropriate 
personnel action. Management also has the option to fill vacancies 
throughout the year using various staffing avenues, including details, 
reassignments, or competitive selection procedures as applicable and/or 
required for competitive promotions or temporary promotions. Employees 
may be considered for vacancies at higher pay band positions consistent 
with the demonstration project competitive selection procedures.
3. Classification
a. Simplified Classification Process
    The Systems Centers will create one page generic, pay band 
descriptors with appropriate titles that also serve as the core of pre-
classified position descriptions within the demonstration project. 
Those descriptions may be further tailored with addenda that provide 
information on Fair Labor Standards Act (FLSA) coverage, selective 
placement factors, specialized knowledge/skills/abilities, etc. Within 
the SSC STRL demonstration project, the term ``classification of a 
position'' for positions covered by pay banding is defined as the 
placement of a position in its appropriate career path, occupational 
series, and pay band based on the application of standards that are 
referred to as pay band descriptors established at the Systems Center 
level. Line managers will be meaningfully involved in the 
classification process to make it more relevant to their organization's 
needs.
b. Delegation of Classification Authority
    The Systems Centers' Technical Directors/Commanding Officers may 
delegate classification authority to the designated management 
authority for all positions except those in Science and Engineering pay 
band 6. Classification authority for Science and Engineering pay band 6 
will be consistent with DoD guidance. Requesting supervisors at any 
level will provide classification recommendations. Support of the 
applicable Human Resources Organization (HRO) will be available for 
guidance and recommendations concerning the classification process. Any 
dispute over the proper classification between a manager and the HRO 
will be resolved by the Technical Director/Commanding Officer. Those to 
whom authority is delegated are accountable to the Technical Director/
Commanding Officer and are expected to comply with demonstration 
project guidelines on classification and position management, observe 
the principle of equal pay for work of equal value, and ensure that 
position descriptions are current and accurate. All positions must be 
approved through the appropriate Center chain of command, as 
established by internal business rules, policies, and procedures.
c. Classification Appeals
    An employee may appeal the occupational series, career path, or pay 
band of his or her position at any time. Classification appeal 
procedures for employees placed in pay band 6 of the NM career path are 
governed by DoD and are not affected by the appeal procedures described 
in this demonstration project. For all other employees, the 
Classification Appeals to OPM will be replaced by a two-level appeal 
process modeled after the demonstration project previously approved for 
the Naval Weapons Center, China Lake, and Naval Ocean Systems Center, 
San Diego. The two levels of classification appeals are (1) within each 
Systems Center under guidelines developed by governance boards 
established, or as otherwise delegated, by each Center's Technical 
Director/Commanding Officer, and if not resolved locally, (2) at the 
other Systems Center, i.e., at SSC Pacific for SSC Atlantic appeals and 
vice versa. Decisions made at the second level of the appeal process 
are final.
    An employee may not appeal the demonstration project classification 
criteria, the accuracy of the pay band descriptor, or the pay setting 
criteria; the assignment of occupational series to a career path; the 
title of a position; the propriety of a base pay schedule; or matters 
grievable under an administrative or an alternative dispute resolution 
procedure. The evaluation of a classification appeal under this 
demonstration project is based upon the demonstration project 
classification criteria. Case files and final adjudication 
documentation will be forwarded to the servicing HRO.
d. Simplified Assignment Process
    Today's environment of rapid technology development and workforce 
transition mandates that the organization have maximum flexibility

[[Page 52150]]

to assign individuals. Pay banding can be used to address these needs. 
As a result of the assignment to a particular pay band descriptor, the 
organization will have maximum flexibility to assign an employee within 
pay band descriptors consistent with the needs of the organization, the 
individual's qualifications and rank, and pay band. Subsequent 
assignments to projects, tasks, or functions anywhere within the 
organization requiring the same area of expertise and qualifications 
would not constitute an assignment outside the scope or coverage of the 
employee's pay band descriptor. Such assignments within the coverage of 
the generic descriptors are accomplished as realignments and do not 
constitute a position change. For instance, an employee can be assigned 
to any project, task, or function requiring similar technical 
expertise. Likewise, a manager could be assigned to manage any similar 
function or organization consistent with that individual's 
qualifications. This flexibility allows broader latitude in assignments 
and further streamlines the administrative process and system.
4. Pay Setting outside the Contribution Assessment and Recognition 
System (CARS)
    The following definitions and policies will apply to the pay 
setting of new hires, movement of employees within the demonstration 
project from one career path or pay band to another, as well as any 
other pay action outside the CARS.
a. Advanced In-hire Rate
    Upon initial assignment into the STRL demonstration project, base 
pay may be set anywhere within the pay band consistent with the special 
qualifications of the individual and the unique requirements of the 
position. These special qualifications may be in the form of education, 
training, experience, scarcity of qualified candidates, labor market 
considerations, programmatic urgency, or any combination thereof that 
is pertinent to the position in which the employee is being placed. 
Management of base pay approval decisions will be delineated in 
internal business rules, policies, or procedures. Consideration should 
be given to the base pay of employees performing similar work within 
the work unit. This provision applies to any action which places a non-
demonstration project employee into the demonstration project, 
specifically initial hires, transfers, and reinstatements (or rehires). 
Specific guidelines for application of Advanced In-hire rate will be 
established in internal business rules, policies or procedures.
b. Promotion
    Within the SSC STRL demonstration project career path pay banding 
system, a promotion will be defined as the movement of an employee from 
a lower to a higher pay band in the same career path, or from one 
career path to another wherein the pay band in the new career path has 
a higher maximum base pay than the pay band from which the employee is 
moving (seamless pay band movement under the CARS is not considered a 
promotion under this definition). The minimum base pay increase upon 
promotion to a higher pay band will be 6% or the minimum base pay of 
the new pay band, whichever is higher. Promotions will follow Federal 
Merit Promotion policy that provides for competitive and non-
competitive promotions. Promotion pay thresholds may be modified by 
internal business rules, policies, or procedures as organizational 
experience dictates. Promotion increases may not result in base pay 
higher than the maximum base pay of the pay band. Other specific 
guidelines regarding promotions will be documented in internal business 
rules, policies, or procedures.
c. Reassignment
    A reassignment occurs when an employee moves, volunta