Science and Technology Reinvention Laboratory Personnel Management Demonstration Project, Department of the Air Force, Air Force Research Laboratory (AFRL), 53076-53126 [2010-21355]

Agencies

• Office of the Secretary
• DEPARTMENT OF DEFENSE

[Federal Register Volume 75, Number 167 (Monday, August 30, 2010)]
[Notices]
[Pages 53076-53126]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-21355]



[[Page 53075]]

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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 Air Force, Air Force Research 
Laboratory (AFRL); Notice

Federal Register / Vol. 75 , No. 167 / Monday, August 30, 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)), Department of Defense (DoD).

ACTION: Notice.

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SUMMARY: Section 342(b) of the National Defense Authorization Act 
(NDAA) for Fiscal Year (FY) 1995, as amended (title 10, U.S.C. 2358 
note) by section 1109 of NDAA for FY 2000 and section 1114 of NDAA for 
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 enumerated 
in section 9902(c)(2) of title 5, U.S.C., as redesignated in Public Law 
111-84, section 1105, and 73 FR 73248, to enhance the performance of 
these laboratories. AFRL is listed as one of the designated STRLs.
    This notice announces the approval of an amendment to modify 
existing demonstration project initiatives, to adopt flexibilities from 
other Science and Technology Reinvention Laboratories (STRLs) 
enumerated in section 9902(c)(2) of title 5, United States Code 
(U.S.C.), as redesignated in Public Law 111-84, section 1105, and to 
expand 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 and expansion of coverage of the personnel management 
demonstration project to the remaining eligible AFRL employees may be 
implemented beginning on the date of publication of this notice in the 
Federal Register. Implementation of the flexibilities will be through 
AFRL implementing issuances and notices to appropriate stakeholders.

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:

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 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 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.
    AFRL requested no waivers to veterans' preference statutes. 
Therefore, AFRL will fully comply with all veterans' preference act 
obligations.
    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

[[Page 53077]]

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 listed in section 9902(c)(2) of title 5, 
United States Code, as redesignated in Public Law 111-84, section 1105, 
if they wish to adopt them in accordance with DoD Instruction 1400.37; 
pages 73248 to 73252 of volume 73, Federal Register; and the fulfilling 
of any collective bargaining obligations.

3. Summary of Comments

    Nine e-mails from nine commenters containing numerous comments were 
received regarding the AFRL Laboratory Demonstration Project, Federal 
Register, 75 FR 27866, dated May 18, 2010. The following is a summary 
of these written comments by topical area and a response to each. In 
some cases, commenters were contacted directly and provided extensive 
replies to their comments.

(1) Problems With the Present System

    Comments: One commenter expressed his concern about his perception 
of the routine filling of certain vacant positions such as senior 
program management, deputy chief information officer, deputy director, 
etc., with personnel who possess a scientific or engineering degree 
which reduces job opportunities for individuals assigned to other 
professional series.
    Response: Managers must still identify each position to the proper 
series based on the duties of the position. The Demonstration Project 
believes that first and second-level supervisors are in the best 
position to determine the appropriate occupational series needed to 
satisfy mission requirements. Such flexibility is key to the success of 
the Demonstration Project. The issues raised by the commenter are not 
specific to the Demonstration Project and should be addressed through 
other mechanisms, such as ``Ask the Commander'' forums or discussions 
within the technology directorate.
    Comments: A commenter asked a series of questions as to whether job 
analyses were completed prior to the initial implementation of the 
Demonstration Project and prior to the expansion of the Demonstration 
Project.
    Response: While job analyses are one acceptable way of designing a 
new performance management system, AFRL senior management chose not to 
use this methodology. Rather, AFRL utilized existing Office of 
Personnel Management (OPM) classification standards, which have been 
determined by OPM to be reliable and valid, to design the 
classification and CCS factors and descriptors used within the 
Demonstration Project. AFRL did not have total independence in 
designing this system because of the requirement to remain competitive 
with other Federal agencies. Due to the provision of seamless broadband 
movement, which is one of the signature initiatives being tested in the 
AFRL demonstration project, it was critical that the performance 
management system (CCS) and, in particular, the factors and 
descriptors, be tied to the established Federal Classification System. 
While OSD now has approval authority, OPM and OSD were highly involved 
in the original design of the factors and descriptors used in the 
classification and CCS processes. By approving the 1996 AFRL Federal 
Register notice publication, DoD and OPM signaled their agreement with 
the validity of the classification and CCS processes. The same 
methodology was used for the expanded workforce that was used in the 
1990s for the S&Es.
    Comments: One commenter expressed concern about her perception that 
the Demonstration Project was not successful.
    Response: A survey has been conducted bi-annually since the 
inception of the Demonstration Project. Survey results show 
approximately 80% of AFRL Demonstration Project employees are in favor 
of the Demonstration Project and show a high level of support for 
expansion of the Demonstration Project authorities to the non-
bargaining unit members.

(2) Participating Employees and Labor Participation

    Comments: A commenter expressed concern about his perception that 
inclusion of bargaining unit positions in the Demonstration Project 
would not be negotiated in good faith. The commenter suggested that the 
AFRL and Air Force Material Command (AFMC) Commanders or the Chief of 
Staff of the Air Force personally engage in all future Demonstration 
Project union negotiations and include Federal Mediation and 
Conciliation Service involvement.
    Response: AFRL is currently in communication with potentially 
affected unions. After publication of the final Federal Register 
notice, AFRL will work with affected unions to negotiate openly to 
reach a consensus position on this important issue at appropriate 
levels and times.

(3) Description of Hiring Process

    Comments: A commenter suggested that the Federal Register notice 
should clearly state what veterans' preference hiring obligations are 
under the Demonstration Project and how compliance is being measured in 
a public and transparent manner. The commenter also suggested 
establishing and measuring (through CCS) goals for veterans' preference 
interviews and hiring under the Demonstration Project. Additionally, 
the commenter stated that veterans' preference applies to merit 
promotions under the GS system and inquired as to how it pertains to 
broadband movements in the Demonstration Project.
    Response: AFRL requested no waivers to veterans' preference rules 
and regulations. Therefore, AFRL will fully comply with all veterans' 
preference obligations. Clarifying language has been added to the 
Overview section of this Federal Register notice. Additionally, AFRL 
monitors its external hiring of veterans to ensure they are treated 
fairly in the selection process. Results are briefed semi-annually to 
the AFRL Corporate Board, a body of senior leaders within the 
Laboratory. It is noted that veterans' preference does not apply to 
merit promotions in the GS system or to broadband movements in the 
Demonstration Project.
    Comments: One commenter recommended that the Distinguished 
Scholastic Achievement Appointment Authority include candidates who are 
within the top 10 percent of a university's major school of 
undergraduate studies.
    Response: Recommendation has been adopted.

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    Comments: OSD has indicted that the Distinguished Scholastic 
Achievement Appointment Authority may not be the appropriate venue for 
an expedited hiring authority for the occupational series in the 
Business Management and Professional career path (DO broadband). 
Additional research on hiring difficulties for these positions, the new 
OPM hiring reform initiatives, use of current expedited hiring 
authorities covering some of the DO positions, and potential impact on 
OPM qualifications standards may be warranted.
    Response: The Distinguished Scholastic Achievement Appointment 
Authority will not be utilized for the Business Management and 
Professionals at this time. AFRL will work with OSD on possible 
streamlined hiring initiatives for various positions within the DO 
career path at a later date. The Description of Hiring section has been 
updated to reflect this change.
    Comments: One commenter recommended removing the following words 
from the criteria for converting an employee serving on a modified term 
appointment to a career appointment: ``Be selected under merit staffing 
procedures for the permanent position.'' The employee would have been 
initially selected under competitive procedures and there is no 
requirement to apply merit system principles again to fill the position 
permanently.
    Response: Recommendation has been adopted.
    Comments: A commenter recommended clarifying that since one of the 
requirements for a non-competitive conversion of a modified term 
employee is to have served a minimum of two years of continuous service 
in the term appointment this period of employment may be counted toward 
the completion of the extended probationary period.
    Response: Clarification has been added to the Extended Probationary 
Period Section.
    Comments: A commenter stated that AFRL must ensure that 
opportunities for non-competitive temporary promotions and details are 
based on the criteria in title 5, Code of Federal Regulations (CFR) 
335.103(b)(1).
    Response: This Federal Register notice waives 5 CFR 335.103(c) to 
allow for non-competitive temporary promotions and details in excess of 
120 days. However, AFRL will ensure decisions are made consistent with 
merit principles; are based on job-related criteria as spelled out in 5 
CFR 335.103(b)(1); and will require appropriate approvals on all 
actions. Implementing instructions will be described in internal AFRL 
issuances.
    Comments: A commenter inquired as to whether expanded temporary 
promotions and details will be limited to actions within the same 
career path.
    Response: Temporary promotions and details are permitted across 
career paths provided qualification requirements are met.
    Comments: A commenter requested clarification as to how the 
Broadbanding Structure table, in the Broadbanding section, will be used 
for initial employee conversion into the Demonstration Project.
    Response: The commenter is referring to the methodology used to 
establish the banding structure. This should not be confused with the 
determination of what band an employee will be placed in upon 
conversion into the Laboratory Demonstration Project. Employees will 
move into the career path and broadband level that coincides with their 
permanent GS grade and occupational series, unless their basic salary 
falls outside the pay range, a situation which would require a special 
review. For clarification, the Conversion to the Demonstration Project 
section has been changed to state ``Employees are converted into the 
career path and broadband level which includes their permanent GS/GM 
grade and occupational series of record, unless there are extenuating 
circumstances which require individual attention, such as special pay 
rates or pay retention.''
    Comments: A commenter pointed out that there is no mention of a 
temporary appointment authority (only career and modified term).
    Response: The Demonstration Project will continue to use the 
temporary appointment authority as provided under title 5, U.S.C. and 
title 5, CFR. Clarifying language has been added.

(4) Pay Setting Outside the CCS

    Comments: A commenter recommended that a bonus may be given in lieu 
of a basic pay increase.
    Response: Recommendation has been adopted.
    Comments: A commenter recommended that ``CCS bonus'' be referred to 
as ``CCS incentive.''
    Response: Recommendation was considered but not adopted. ``CCS 
bonus'' better describes the intent of this authority.
    Comments: The same commenter recommended that retention, 
recruitment, and relocation ``payments'' be referred to as retention, 
recruitment, and relocation ``incentives.''
    Response: Recommendation has been adopted.
    Comments: A commenter expressed concern that the authority to grant 
a relocation bonus to a Student Career Experience Program (SCEP) 
student could be abused. The commenter also recommended that a 
Continuing Service Agreement (CSA) be required for SCEP students 
receiving a relocation bonus and suggested that management ensure that 
their home of record is not located within the commuting area of the 
work location.
    Response: Safeguards are being put in place through internal AFRL 
issuances. Management will be required to justify each bonus granted 
and maintain documentation to this effect. The recommendation to 
require a CSA was considered but not adopted. A student's home of 
record will be documented and maintained by management.
    Comments: A commenter suggested specific minimum requirements 
(e.g., length of time, CCS rating, etc.) that must be met before a 
basic pay increase can be granted under the accelerated compensation 
authority for local interns or risk rampant accelerated compensation, 
which will impact the Demonstration Project cost discipline philosophy.
    Response: Safeguards, such as minimum delta Overall Contribution 
Score (OCS) and one basic pay increase per year, are being implemented 
through internal AFRL issuances.

(5) Broadbanding

    Comments: A commenter pointed out that in paragraph 3, reference to 
``Table 2'' should be ``Table 1.''
    Response: The reference to this table was changed.
    Comments: A commenter expressed concern that there could be a 
potential issue in recruiting for broadband level I, at the GS-7 
equivalency, due to the education requirements and/or applicants' lack 
of required specialized experience. There would be more flexibility for 
management if the broadband level I began at the GS-5 equivalency 
versus the GS-7 equivalency in the DO career path.
    Response: Comment was considered. Management made a conscious 
decision to set the minimum equivalent grade at the GS-7 for the DR and 
DO career paths. The DR career path has been set at this level since 
the inception of the Demonstration Project and senior management was 
not willing to reduce expectations for the DO career path.
    Comments: A commenter had concerns over using the same number 
structure for the different broadbands in the different career paths.
    Response: The assigned pay plan (i.e., DR, DO, DU, or DX) first 
identifies the

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career path for a given position/person. The broadband level (i.e., I, 
II, III, or IV) is then assigned based on the duties of the position. 
This is an accepted nomenclature and the same structure used by other 
demonstration projects and alternative personnel systems.
    Comments: The commenter had concerns about the lack of information 
in the Federal Register notice regarding broadband V positions.
    Response: The broadband V (or Above GS-15) position concept is an 
OSD initiative that was tested in Army and Navy Laboratory 
demonstration projects. AFRL did not participate in the initial trial 
of this concept, which consisted of 40 positions. This FRN provides a 
basic description of broadband V positions. OSD will publish a Federal 
Register notice and manage the final authority, to include salary 
ranges, for these positions. OPM has been consulted by OSD on this 
initiative and is interested in the proposal.

(6) Classification

    Comments: In the Classification Authority and Reduction-in-Force 
sections, a commenter noted that ``technical director'' should read 
``technology director.''
    Response: This was changed.
    Comments: Under Classification Process, recommend that pay plan and 
broadband level be added to the second sentence of paragraph (a).
    Response: Recommendation has been adopted.
    Comments: A comment was received regarding application of 
acquisition professional development requirements to positions and the 
impact on broadband movements.
    Response: This Demonstration Project Federal Register notice 
documents changes to title 5, U.S.C. and to title 5, CFR. These 
suggestions are not a part of either title 5 requirements and 
therefore, are not appropriate for Federal Register publication. 
However, AFRL follows Defense Acquisition Workforce Improvement Act 
(DAWIA) requirements for coding acquisition positions. The 
Demonstration Project must operate within the DAWIA laws and, as such, 
ensures that these requirements are met prior to allowing seamless, 
competitive, or non-competitive broadband movements to occur.
    Comments: Comments were received as to what level the 
Classification Authority may be delegated.
    Response: This authority is delegated to the technology directors 
or pay pool managers, who may further delegate to not lower than one 
management level above the first-level supervisor of the position under 
review. Clarification has been added to the Classification Authority 
section.
    Comments: Recommend that language be clarified to include that 
supervisors or Senior Personnel Advisors (SPAs) may create an 
electronic Statement of Experience and Duties (SDE).
    Response: Recommendation has been adopted.

(7) CCS

    Comments: Commenters expressed concerns about their perceptions 
regarding equity and fairness of quantitative ratings of individual 
employee performance and indicated support of qualitative measures of 
group performance instead. Also, comments were received on how one's 
opportunity for advancement may be impacted by the pay pool to which 
assigned. Therefore, the commenters support the use of one AFRL-wide 
pay pool.
    Response: The concerns regarding quantitative ratings and the 
commenter's support of qualitative measures were very technical in 
nature and have therefore been directly addressed in detail to the 
commenter.
    In regard to the concern over advancement opportunities, the use of 
multiple pay pools allows employees to be assessed in an environment 
where a number of managers are aware of each employee's contribution 
relative to his/her peers. An AFRL-wide pay pool would be unwieldy and 
would not yield the checks and balances currently in place with the 
directorate-based pay pools.
    Comments: A commenter questioned the reliability of factor weights.
    Response: While the November 1996 AFRL Federal Register notice and 
April 2009 Federal Register notice described use of factor weights, it 
is now AFRL's intent not to utilize factor weights with the change to 
four factors for S&Es and establishment of four factors for the 
expanded workforce. Therefore, the description of factor weights was 
not in the May 2010 Federal Register notice publication, nor in this 
one. This publication supersedes all previous Federal Register notices.
    Comments: A comment was received that the Federal Register notice 
makes no mention of how long-term additional duties or Integrated 
Project Team duties may be used to increase an employee's contribution 
level.
    Response: The AFRL contribution-based system empowers employees to 
seek additional opportunities which are taken into consideration when 
determining overall contribution level. Long-term additional duties and 
team participation are examples of opportunities which may impact an 
employee's CCS score and should be discussed in feedback sessions 
between the employee and supervisor. The CCS factors and descriptors 
are tools that may be used as the employee's roadmap to higher level 
contribution.
    Comments: A commenter expressed concern over the lack of 
information on a CCS bonus.
    Response: The authority to authorize a bonus was included in this 
Federal Register notice in order to provide supervisors and managers 
access to an additional tool to appropriately recognize outstanding 
contributions based on the level and type of contributions as well as 
their overall impact on mission. AFRL does not intend to utilize this 
bonus authority until a determination has been made as to the need and 
adequate processes are implemented to describe how this bonus will be 
paid. AFRL implementing issuances will be updated prior to the use of 
this authority.
    Comments: A commenter cited concerns about her perception of 
fairness and transparency of the Meeting of Managers (MoM), CCS, and 
the seamless broadband movement process.
    Response: The MoM is a process that allows supervisors to discuss 
employee contributions and come to agreement on equivalent levels of 
contribution. Every employee is encouraged to provide details to their 
supervisor of their yearly accomplishments for each factor. This helps 
supervisors understand how employees perceive their work and its role 
in helping to meet the mission. Supervisors use these self-assessments 
and their own knowledge of each employee's contributions as a starting 
point for determining preliminary CCS scores. Overall Contribution 
Scores are not assigned by individual supervisors; rather they are 
assigned by the group of supervisors attending the MoMs. This process 
reduces possible unfairness issues when only one person assigns a 
score, encourages communication within the directorate, and includes 
extra layers of checks and balances by providing a mechanism to ensure 
equitability of scores across branches and divisions and, ultimately, 
the directorate/pay pool. Supervisors discuss contributions with each 
employee after scores have been finalized. Employees may utilize the 
grievance process, which provides for third party review, if they do 
not agree with the CCS score assigned.
    To facilitate transparency and openness in the CCS process, there 
are two mandatory feedback sessions built into the CCS process. 
Supervisors are

[[Page 53080]]

required to discuss employee contributions, professional development 
and training needs, and expectations with each employee after the 
rating cycle ends and midway through the cycle. In addition, 
supervisors and employees are encouraged to maintain open lines of 
communication and discuss expectations throughout the year.
    The seamless broadband movement is facilitated by increases in 
score and basic pay based on the assessment of employee contributions, 
as well as consideration of many other aspects. As stated in the 
Broadband Movement section, ``If an employee's contributions impact and 
broaden the scope, nature, intent and expectations of the position and 
are reflective of higher level factor descriptors, the classification 
of the position is updated accordingly.'' In addition, an employee's 
basic pay must be at a level consistent with the higher broadband 
level. Therefore, two employees may receive the same score but 
broadband movement may not be appropriate for both employees. An 
employee's proven ability to maintain the higher level contribution, 
level of education, completion of Professional Military Education 
(PME), breadth of experience, and demonstrated leadership are all 
factors in a Pay Pool Manager's decisions when approving broadband 
movements. The mandatory feedback sessions and open lines of 
communication between employees and supervisors provide employees with 
expectations so that employees understand what is needed for a 
broadband movement. This provides transparency and openness in the 
seamless broadband movement process.
    Additionally, the AFRL Corporate Board reviews the extensive 
evaluations that are conducted after each rating cycle and issues 
corporate guidance on managing pay pools to ensure consistency, greater 
transparency, etc. Bi-annual surveys of all employees are conducted 
and, based upon results, focus groups or additional surveys are 
accomplished in order to identify, and then correct, unintended 
consequences or negative perceptions. Supervisors are required to take 
mandatory courses on the CCS process, CCS software, and providing 
effective CCS feedback. Technology directorate-specific continuing 
training is also offered to employees.
    Comments: A commenter presented a lengthy technical paper 
expressing concern over the design of the Contribution-based 
Compensation System.
    Response: A paper addressing these concerns was sent directly to 
the commenter. No changes were made to the CCS design as a result of 
this comment.

(8) SPL

    Comments: One commenter pointed out that the Mission Support SPL 
and the Technician SPL are transposed.
    Response: The Mission Support SPL and the Technician SPL are now 
correct.

(9) Pay Pools

    Comments: A commenter expressed concerns that a pay pool of 35 
employees would be too small to yield statistically valid results.
    Response: A pay pool of 35 is consistent with the approach used by 
OPM for other demonstration projects. The AFRL pay pools are defined by 
technology directorate/functional area to implement the ``same 
mission'' principal. With this definition, the smallest pay pool for 
the 2009 cycle had 59 employees.
    In the Demonstration evaluation effort, only descriptive statistics 
are used at the pay pool level of analysis. The entire Laboratory 
Demonstration Project population is used for more complex statistical 
analyses that use confidence intervals. This minimizes the potential 
for any group of interest in a given analysis to be so small that the 
resulting confidence interval is so large as to mask important 
differences in results for the groups. AFRL senior leadership reviews 
CCS results on a yearly basis and is satisfied with the results of the 
statistical analysis.

(10) Broadband Level Movements

    Comments: One commenter expressed concern over a lack of 
information as to whether an employee could be moved to a higher 
broadband level if his or her immediate supervisor is at the higher 
broadband level. For example, could an employee be moved to a broadband 
level III if their supervisor is a broadband level III?
    Response: The Demonstration system is not hierarchical; meaning a 
supervisor's broadband level is based on the contributions he/she has 
made to the organization, and not based on the broadband levels of 
subordinate employees, as is typical under other personnel systems. 
Therefore, supervisors may supervise employees at lower, the same, or 
higher broadband levels. Due to the comment received, clarifying 
language was added to the Classification section of this Federal 
Register notice.
    Comments: A commenter asked if a specified amount of growth or 
delta is required for broadband movement.
    Response: A broadband movement may be granted when the employee 
consistently contributes at the level as described in the broadband 
level descriptors for the next higher broadband level, receives basic 
pay commensurate with the higher broadband level, demonstrates the 
ability to maintain the higher level contribution, and has met any 
additional criteria established by the Pay Pool Manager. As described 
in greater detail in the Broadband Movement section of this notice, 
broadband movement is based on a combination of OCS and basic pay. 
Delta is not a direct contributing factor to broadband movement. 
However, continual growth, which is the difference between current and 
previous year's score, would be an indication of consistently 
contributing at higher levels.
    Comments: A commenter expressed a concern that employees may be 
assigned duties outside their SDE and perhaps would not be given 
appropriate job skills/experience coding.
    Response: The SDE has been structured generally so that employees 
may seek opportunities for additional experience and contribution. If 
the skill codes of a position change over time, a personnel action is 
processed to document this change.

(11) Voluntary Pay Reduction and Pay Raise Declination

    Comments: One commenter recommended including that a voluntary pay 
reduction or pay raise declination could also be requested by employees 
during the 30-day period immediately following a CCS grievance 
decision.
    Response: Recommendation has been adopted.

(12) Voluntary Emeritus Corps

    Comments: A commenter recommended requiring that volunteers not be 
permitted to report for duty prior to finalization of the required 
agreement.
    Response: Recommendation has been adopted.

(13) Conversion

    Comments: For clarification, a commenter recommended rewording the 
first sentence of the Conversion to Another Personnel System section to 
state: The pay-setting rules of the gaining pay system will apply when 
employees leave the AFRL broadbanding system to accept Federal 
employment in another personnel system.
    Response: Suggestion is adopted.

[[Page 53081]]

    Comments: A commenter requested clarification as to whether, and to 
what extent, a supervisor has the discretion to set the initial 
broadband level for converting employees.
    Response: Supervisors will not make the initial broadband level 
determination upon conversion. For clarification, the Conversion to the 
Demonstration Project section has been changed to state ``Employees are 
converted into the career path and broadband level which includes their 
permanent GS/GM grade and occupational series of record, unless there 
are extenuating circumstances which require individual attention, such 
as special pay rates or pay retention.

(14) Reduction-in-Force

    Comments: One commenter recommended that trial period employees 
also be included in tenure group I for RIF purposes.
    Response: Recommendation has been adopted. Clarification as to who 
serves probationary and trial periods, and how it impacts RIF, was 
added to the RIF and Probationary Period sections.
    Comments: A commenter suggested clarification as to how 
contribution will affect RIF retention.
    Response: There are no additional years of service added to service 
computation dates based on contribution scores, rather, contribution 
scores are used as a sort factor. The Reduction-in-Force section has 
been clarified.

(15) Appendix A

    Comments: For occupational series 0199, change Social Science 
Student to Social Science Student Trainee. Also, for occupational 
series 0401, change Trainee General Biological Science to General 
Biological Science.
    Response: Changes are accepted.
    Comments: The list of DO pay plan occupational series was 
inadvertently truncated. Recommend the following occupational series be 
included: 0018 Safety and Occupational Health Management, 0028 
Environmental Protection Specialist, 0030 Fitness and Sports 
Specialist, 0080 Security Administration, 0099 Security Student 
Trainee, 0101 Social Scientist, 0110 Economist, 0669 Medical Records 
Administration, 1040 Language Specialist, 1060 Photography, 1071 
Audiovisual Production, 1082 Writing and Editing, 1083 Technical 
Writing and Editing, 1084 Visual Information.
    Response: These DO occupational series are added.

(16) Waivers to title 5, CFR

    Comments: Recommend part 213, section 213.3202, Tenure Group, be 
waived to allow Excepted Service employees to be in tenure group I.
    Response: Recommendation has been adopted.
    Comments: Recommend that part 340, subpart A, subpart B, and 
subpart C, Other than Full-Time Career Employment, be waived to also 
allow for Excepted Service employees to be in tenure group I.
    Response: Recommendation has been adopted.

(17) Professional Military Education (PME) Requirement

    Comments: A commenter recommended that the Demonstration Project 
include a permanent provision that graduation from the in-residence 
United States Air Force Senior Noncommissioned Officer Academy 
permanently satisfies the AFMC Professional Military Education (PME) 
requirement.
    Response: The Demonstration Project Federal Register notice 
documents changes to title 5, U.S.C. and title 5, CFR. This suggestion 
is outside the scope of both title 5, U.S.C. and title 5, CFR 
requirements and therefore, is not appropriate for Federal Register 
publication. As the commenter noted, policies related to this matter 
have been crafted at the HQ AFMC level.

    Dated: August 24, 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

[[Page 53082]]

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 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 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 adopts hiring authorities currently utilized by other 
DoD STRL Personnel Demonstration Projects and implements a redesigned 
RIF methodology, which simplifies and strengthens the process.

[[Page 53083]]

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 
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 professional positions up to the 
equivalent of GS-12 in series identified in the S&E career path. 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 
undergraduate or 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 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
    The career-conditional appointment authority is not used under the 
Demonstration Project. Regular career appointments, temporary 
appointments, excepted service appointments, and modified term 
appointments are utilized. 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; and (3) have a current delta 
CCS rating greater than -0.3.
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 S&E 
employee's contribution and conduct. An extended probationary or trial 
period of three years applies to all newly hired S&E employees and SCEP 
students earning a scientific or engineering degree, 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

[[Page 53084]]

break in service of less than 30 calendar days are not required to 
complete an extended probationary or trial period if their previous 
service was in the same line of work as determined by the employee's 
actual duties and responsibilities upon reappointment.
    Employees on non-status appointments will be subject to the trial 
period required by their appointing authority. Upon conversion from a 
non-status appointment to a competitive service appointment, employees 
will be required to serve a three-year probationary period. However, 
employees serving on a modified term appointment will serve a three-
year trial period. Upon conversion to competitive service, the period 
of employment served on a modified term appointment will be counted 
toward the completion of the extended probationary period.
    Student Career Experience Program (SCEP) students earning a 
scientific or engineering degree are required to serve the extended 
probationary period upon non-competitive conversion to career 
appointment. The requirements in 5 CFR 315.802(c) apply when 
determining creditable service.
    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.
    Probationary periods for employees in other career paths remain 
unchanged.
    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 during the extended probationary period.
    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 addition to or in 
lieu of a basic pay increase.
    The authorities for retention, recruitment, and relocation 
incentives 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 incentives 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 1 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.

[[Page 53085]]



 
 
 
                                      TABLE 1. BROADBANDING STRUCTURE
 

[GRAPHIC] [TIFF OMITTED] TN30AU10.001

    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 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 inclu