Science and Technology Reinvention Laboratory Personnel Management Demonstration Project, Department of the Army, Army Research, Development and Engineering Command, Tank Automotive Research, Development and Engineering Center (TARDEC), 12508-12548 [2011-4932]

Agencies

• DEPARTMENT OF DEFENSE
• Office of the Secretary

[Federal Register Volume 76, Number 44 (Monday, March 7, 2011)]
[Notices]
[Pages 12508-12548]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-4932]



[[Page 12507]]

Vol. 76

Monday,

No. 44

March 7, 2011

Part III





Department of Defense





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Science and Technology Reinvention Laboratory Personnel Management 
Demonstration Project, Department of the Army, Army Research, 
Development and Engineering Command, Tank Automotive Research, 
Development and Engineering Center (TARDEC); Notice

Federal Register / Vol. 76 , No. 44 / Monday, March 7, 2011 / 
Notices

[[Page 12508]]


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DEPARTMENT OF DEFENSE

Office of the Secretary


Science and Technology Reinvention Laboratory Personnel 
Management Demonstration Project, Department of the Army, Army 
Research, Development and Engineering Command, Tank Automotive 
Research, Development and Engineering Center (TARDEC)

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

ACTION: Notice.

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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 TARDEC is listed in 
subsection 1105(a) of NDAA for FY 2010 as one of the newly designated 
STRLs.

DATES: Implementation of this demonstration project will begin no 
earlier than March 9, 2010.

FOR FURTHER INFORMATION CONTACT:
    TARDEC: U.S. Army Tank Automotive Research, Development and 
Engineering Center (TARDEC), 6501 East 11 Mile Road, Warren, MI 48397-
5000, ATTN: RDTA-COS/MS 204 Mr. Gregory L. Berry, Warren, MI 48397-
5000.
    DoD: Ms. Betty Duffield, CPMS-PSSC, Suite B-200, 1400 Key 
Boulevard, Arlington, VA 22209-5144.

SUPPLEMENTARY INFORMATION:

1. Background

    Since 1966, many studies of DoD laboratories have been conducted on 
laboratory quality and personnel. Almost all of these studies have 
recommended improvements in civilian personnel policy, organization, 
and management. Pursuant to the authority provided in section 342(b) of 
Public Law 103-337, as amended, a number of DoD STRL personnel 
demonstration projects were approved. These projects are ``generally 
similar in nature'' to the Department of Navy's ``China Lake'' 
Personnel Demonstration Project. The terminology, ``generally similar 
in nature,'' does not imply an emulation of various features, but 
rather implies a similar opportunity and authority to develop personnel 
flexibilities that significantly increase the decision authority of 
laboratory commanders and/or directors.
    This demonstration project involves: (1) Two appointment 
authorities (permanent and modified term); (2) extended probationary 
period for newly hired engineering and science employees; (3) pay 
banding; (4) streamlined delegated examining; (5) modified reduction-
in-force (RIF) procedures; (6) simplified job classification; (7) the 
Contribution-based Compensation and Appraisal System (CCAS); (8) 
academic degree and certificate training; (9) sabbaticals; (10) a 
Voluntary Emeritus Corps; (11) direct hire authority for candidates 
with advanced degrees for scientific and engineering positions; and 
(12) Distinguished Scholastic Achievement Appointment Authority.

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 TARDEC 
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 section 4703(f) of 
title 5 United States Code (U.S.C.); and shall be completed within 18 
months after enactment of NDAA for FY 2010. Therefore, since TARDEC is 
both designated an STRL by section 1105 of NDAA for FY 2010 and has 
NSPS covered employees, it must convert, at a minimum, its NSPS covered 
employees to a personnel management demonstration project before the 
end of April 2011.
    On September 9, 2010, DoD published the proposed STRL Demonstration 
Project for TARDEC in 75 FR 55109-55157. During the public comment 
period ending October 12, 2010, DoD received comments from five 
individuals. All comments were carefully considered. The following 
summary addresses all the comments received, provides responses, and 
note resultant changes to the original project plan in the first 
Federal Register notice. Most commenters addressed several topics, 
which were counted separately. A total of 39 comments were received 
from the five commenters. The following summary addresses all comments 
received, provides responses, and notes resultant changes to the 
original project plan in the first Federal Register notice.

A. General Overview of Comments

    None of the comments received gave an overall opinion supporting or 
not supporting the demonstration project. The comments received are 
categorized as desiring further clarification or offering constructive 
recommendations on improving the details of the demonstration project. 
Generally, the comments were very helpful in pointing out areas that 
needed refinement or correction and were directed to a specific topic. 
In order to maintain the greatest flexibilities additional detailed 
instructions will be contained in the TAREC Demonstration Project 
Internal Operating Instructions.

B. Personnel Management Board

    One (1) comment was received under this section.
    Comment: What does ``ensure in-house budget discipline'' mean? Is 
this the ``Control Gates'' or ``Swim Lanes'' as TARDEC currently calls 
it under acquisition demonstration where maximum pay in a given band is 
being limited to less than the band allows and what the position is 
advertised to encompass?
    Response: The TARDEC Personnel Management Board has the 
responsibility to ensure that expenses associated with the 
demonstration project are maintained within proper funding levels. The 
use of ``control gates'' for the demonstration project, if used, will 
be contained in the Demonstration Project Operating Instructions. No 
changes were made as a result of this comment.

[[Page 12509]]

C. Pay Banding

    One (1) comment was received under this section.
    Comment: Within the Engineering and Science DB pay band at the II 
level, it is identified as a developmental track covering GS-5, step 1, 
through GS-11, step 10. TARDEC has Chemists whose full performance 
grade (GS-9/11) falls in this band. As written, this is misleading as 
it implies that these people are in a developmental position when in 
fact they are not.
    Response: Concur with comment. The DB Pay Band Level II covers 
positions that may be either developmental in nature or at the full 
performance level. Federal Register notice Section III.A.1.b is 
modified to read: ``Band II is developmental/full performance track 
covering GS-5, step 1, through GS-11, step 10.

D. Classification

    One (1) comment was received under this section.
    Comment: The Federal Register notice does not talk about how 
supervisory and/or team leader positions will be determined from the 
standpoint of meeting some type of established criteria. Recommend a 
review of the language with the possibility of adding that Office of 
Personnel Management (OPM) Functional Classification Standards could be 
used to form applicability determinations for positions.
    Response: Concur with the comment. The OPM Functional 
Classification Standards such as the General Schedule Team Leader 
Guide, General Schedule Supervisory Guide, Research Grade Evaluation 
Guide, Equipment Development Grade Evaluation Guide, etc., will be used 
as foundation guides in making proper classification applicability 
determinations. Federal Register notice Section III.B.2 is modified to 
read: ``Current OPM functional classification standards may be used to 
aid in position applicability and the framework for pay band level 
determinations.''

E. Contribution-Based Compensation and Appraisal System (CCAS)

    A total of eleven (11) comments were received under this category 
relating to four subtopics as follows:
1. Pay Pools
    Comments: Two similar comments addressed the guidelines for sizing 
of pay pools and that in the past TARDEC had exceeded the size 
guidelines for pay pools under the DoD Civilian Acquisition Workforce 
Personnel Demonstration Project. Does TARDEC intend to continue having 
a single pay pool with upwards of 700 employees in it?
    Response: It is projected that the makeup of demonstration project 
pay pools will typically be constructed within normal pay pool size 
guidelines. However, to provide additional flexibility, some specific 
language in Section III.C.3. Pay Pools was deleted with the actual 
construct of pay pools to be further defined in the Demonstration 
Project Internal Operating Instructions.
    Comment: One comment addressed whether it will be a requirement 
that supervisory personnel be in a separate pay pool from non-
supervisory personnel.
    Response: To maintain flexibility the construct of pay pools will 
be further defined in the Demonstration Project Internal Operating 
Instructions. Federal Register notice Section III.C.3 was modified to 
delete the sentence: ``Supervisory personnel typically will be placed 
in a pay pool separate from subordinate non-supervisory personnel.''
    Comment: One comment addressed the amount of the performance 
payouts; whether they are based on an established pay calculation such 
as the DoD Civilian Acquisition Workforce Personnel Demonstration 
Project's CAS2NET system; and if the formulas will be made available.
    Response: The final decision for the amounts given for performance 
pay outs rests with the TARDEC Director with a recommendation by a Pay 
Pool Manager. While an automated tool may perform generalized 
calculations, the amounts to be given for continuing pay increases and 
bonus awards are the Pay Pool Manager's determination. No changes in 
the Federal Register notice have been made in response to this comment.
    Comment: One comment addressed the funding levels and the fact that 
TARDEC has a number of employees that are co-located with other offices 
such as Program Executive Offices which complicates the pay pool 
funding situation since these offices may fund at different levels.
    Response: The decisions on funding levels for the Demonstration 
Project are at the sole discretion of the TARDEC Director with 
recommendations provided by the TARDEC Personnel Management Board. 
Consultation with other organizations is desirable, but will not be 
required by the Demonstration Project. No changes in the Federal 
Register notice have been made in response to this comment.
2. Annual Rating Cycle and Rating Process
    Comment: One comment addressed that all Overall Contribution Scores 
(OCS) will be rounded up to the nearest whole number. For clarification 
purposes, an OCS of 70.1 would be rounded up to 71. Is that correct?
    Response: This comment has been carefully considered; and it is 
agreed that it needs clarification. Federal Register notice Section 
III.C.4 is modified to read: ``All OCS's will be rounded to the nearest 
whole number.''
    Comment: One comment addressed when the expected OCS for an 
individual would be established and set for the appraisal year in order 
for the employee to perform throughout the year to a level associated 
with the expected OCS.
    Response: The expected OCS is directly tied to an employee's base 
pay. Therefore, it is the base pay the employee has at the end of the 
rating cycle that will determine the final expected OCS. This does not 
preclude the employee and the rating official from discussing 
performance at the beginning and mid-point of the rating cycle. The 
demonstration project encourages employees and supervisors to actively 
participate in on-going performance discussions. The demonstration 
project has established six performance factors with each factor having 
multiple levels of increasing contribution corresponding to the pay 
band levels; this will allow meaningful discussions without the final 
expected OCS being determined until the end of the rating cycle. No 
changes in the Federal Register notice have been made in response to 
this comment.
    Comment: One comment addressed Table 4 with respect to the OCS 
point ranges for the Business and Technical (DE) Occupational Family. 
It was suggested the table may need further review and refinement to 
allow for the possibility of higher scores.
    Response: This comment was carefully considered. It was agreed that 
Table 4 needs to be modified to revise the point ranges of the Business 
and Technical (DE) occupational family. This will allow for and 
maintain proper growth potential within this occupational family. 
Federal Register notice Table 4 was modified accordingly.
3. Base Pay Increases and Bonuses
    Comment: One comment pointed out that base pay increases may be 
limited and that base pay is capped when an employee reaches the 
maximum rate of base pay in an assigned pay band. The

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commenter asked if these are one in the same or if they refer to 
``control gates.'' Compensation should not be limited to something 
lower than what the pay band allows, otherwise a return to General 
Schedule may be appropriate.
    Response: The demonstration project gives final authority to the 
TARDEC Director in the distribution of the amount of individual pay 
increases and bonuses as recommended by a Pay Pool Manager. No changes 
in the Federal Register notice have been made in response to this 
comment.
4. Awards
    Comment: One commenter requested clarification as to whether the 
$25,000 ceiling applies only to group awards or if it may also apply to 
individual awards.
    Response: The delegation of awards authority is an internal Army 
decision and will be considered as such.
    Comment: One commenter recommended expanding the TARDEC Director's 
awards authority to provide final approval authority for two Army 
civilian honorary achievement medals.
    Response: The delegation of awards authority is an internal Army 
decision and will be considered as such.

F. Hiring Authority

    A total of nine comments were received under this category relating 
to five subtopics as follows:
1. Delegated Examining
    Comment: In regard to rating and ranking being required only when 
the number of qualified candidates exceed 15 or there is a mix of 
preference and non-preference applicants, one commenter wanted to know 
who determines the number of qualified candidates. The question was 
posed as to whether this was left to the selecting official as the 
commenter wanted to make sure the integrity of the qualified 
determinations were maintained under the demonstration project.
    Response: The servicing Civilian Personnel Advisory Center will 
determine the number of qualified candidates based on the number of 
applications received and the number of applicants determined to fully 
meet the prescribed OPM qualification standards. This is a function of 
the servicing Civilian Personnel Advisory Center and not the selecting 
official. No changes in the Federal Register notice have been made in 
response to this comment.
    Comment: One comment addressed that there was no mention of 
positions covered by the Administrative Careers With America (ACWA) at 
the proposed Business and Technical Lab Demo Pay Band DE-II, GS-5 
through GS-11 level equivalent. Since the demonstration project will 
recruit at the lowest GS equivalent of the band, so the DE-II positions 
would be recruited at the GS-5 equivalent, and many, if not all, 
positions in that occupational family would be covered by ACWA, 
therefore they recommended that we modified our language to include the 
use of the OPM ACWA Assessment Tool for these positions.
    Response: This comment has been carefully reviewed resulting in the 
addition of the following clarifying information to the Federal 
Register notice Section III.D.2: ``The Demonstration Project will 
utilize the current OPM Administrative Careers With America (ACWA) or 
successor procedures for occupational series which have been designated 
as having a testing requirement. This will allow for the recruitment of 
positions covered by the Business and Technical Occupational Family at 
the DE-II pay band level.''
    Comment: One comment recommended identifying an upper and lower 
level within the DE-II pay band for recruitment purposes only in order 
to qualify candidates at the higher level of the pay band say at the 
GS-9 level. They recognized that many positions require work at the 
full performance level (GS-9/11 equivalent), which cannot be met with 
the standard as written. Plus they said many positions within the 
laboratory are covered under the Luevano Decree, and must meet the ACWA 
requirements if recruited using GS-5 Level standards.
    Response: This comment has been carefully considered. While adding 
an upper and lower qualifications determination within a pay band may 
appear to be desirable, we have retained our DE-II pay band structure 
and the minimum qualification requirements. Selective placement factors 
may still be used to distinguish higher level experience, skills, 
competencies. No changes in the Federal Register notice have been made 
in response to this comment.
    Comment: One comment recommended modification to say that if 
delegated examining authority has been granted for the GS equivalent 
position, that delegated examining authority also applies to positions 
covered under this demonstration project. Absent this language, 
additional delegated authority must be requested from OPM to fill 
positions covered by this project.
    Response: This comment has been carefully considered. It was 
concluded that the current language in Section D. II covers projected 
authorities. No changes in the Federal Register notice have been made 
in response to this comment.
2. Distinguished Scholastic Achievement Appointment
    Comment: One comment recommended the needed flexibility to make 
``on the spot'' appointments at job fairs, college visits, etc., and 
that a public announcement should not be required for this hiring 
authority.
    Response: This comment has been carefully considered. While the 
notion of making ``on the spot'' appointments is highly desirable, no 
changes in the Federal Register notice have been made in response to 
this comment.
    Comment: One comment addressed the current labor market conditions 
being extremely competitive with industry and academia for the small 
supply of highly-qualified and security clearable candidates with 
Masters Degrees or Ph.D.'s. in science or engineering. This might have 
been the case four years ago, but not today in southeast Michigan. If 
TARDEC believes this, why have people been told TARDEC doesn't 
participate in the tuition reimbursement program since we don't have 
trouble finding and keeping qualified people?
    Response: The Distinguished Scholastic Achievement Appointment 
authority coupled with the Federal Register notice language in Section 
III.G.1.b, Critical Skills Training (Training for Degrees) provides 
enough flexibility for the ever changing labor markets. No changes in 
the Federal Register notice have been made in response to this comment.
3. Initial Probationary Period
    Comment: One commenter recommended changing the language in this 
section to clarify authority of the TARDEC Director with respect to 
extending the three-year probationary period and to customizing the 
probationary period.
    Response: The initial probationary period will not exceed three 
years for all newly hired employees. The TARDEC Director cannot extend 
this period of time but may limit it. To maintain flexibility, the 
construct of Initial Probationary Periods will be further defined in 
the Demonstration Project Internal Operating Instructions. No changes 
in the Federal Register notice have been made in response to this 
comment.
4. Supervisory Probationary Periods
    Comment. One comment was received recommending that an existing 
supervisor should only be subject to an

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additional one-year probationary period if the change of assignment was 
initiated/requested by the employee.
    Response: This comment has been carefully considered. The 
determination as to when a new supervisory probationary period is to be 
applicable will be a management decision and not initiated by an 
employee's request. No change in the Federal Register notice have been 
made in response to this comment.
5. Voluntary Emeritus Corps
    Comment: One comment was received recommending deleting the 
sentences that state that voluntary emeritus assignments are not 
considered employee assignments and replace with, Voluntary Emeritus 
Corps service is gratuitous if the intent is to extend the Voluntary 
Emeritus individuals additional benefits of employees, such as the 
ability to go TDY and represent the government in non-contractual 
matters.
    Response: This comment has been carefully considered. The intent of 
this new authority is to develop a mechanism to allow retired or 
separated employees to volunteer their services. They are not taking 
the place of government workers. To maintain consistency Section 
III.D.k, m, and n are modified to remove the word ``employee'' and 
replace with the word ``volunteer.''

G. Internal Placement

    A total of two comments were received under this category relating 
to two subtopics as follows:
1. Promotion
    Comment: One comment identified that promotion actions may not 
result in an increase in employees' base pay since there is an overlap 
of salaries in different pay bands. The recommendation was to delete 
the sentence: ``The move from one band to another must result in an 
increase in the employee's base pay to be considered a promotion.''
    Response: This comment has been carefully reviewed. It is agreed 
that the identified sentence should be deleted. The following sentence 
is deleted from the Federal Register notice Section III.E.1: ``The move 
from one band to another must result in an increase in the employee's 
base pay to be considered a promotion.'' Since base pay dollars can 
overlap, the movement from a lower pay band to a higher pay band (e.g., 
DE-III to DE-IV) using the word ``must'' was incorrect.
2. Reassignment
    Comment: One comment recommended all of Section III.(E)(6) beyond 
the first paragraph be moved to the pay setting Section III.F.6.
    Response: The current sections are considered to be in a proper 
placement within the Federal Register notice. No changes in the Federal 
Register notice have been made in response to this comment.

H. Pay Administration

    A total of four comments were received under this category relating 
to four subtopics as follows:
1. Pay and Compensation Ceilings
    Comment: One comment mentioned base pay will be limited to the 
maximum base pay payable for each band. The commenter wanted to know if 
``control gates'' are being eliminated under the demonstration project.
    Response: The use of ``control gates,'' for the demonstration 
project, if used, will be described in the Demonstration Project 
Internal Operating Instructions. No changes in the Federal Register 
notice have been made in response to this comment.
2. Pay Setting for Appointment
    Comment: One comment contained the recommendation that the Pay 
Setting for Appointments section be modified to specifically state that 
pay setting for initial entrance into the demonstration project from 
another personnel system is considered the same as an initial 
appointment.
    Response: This comment has been carefully considered. It has been 
determined the current language provides the necessary flexibilities. 
No changes in the Federal Register notice have been made in response to 
this comment.
3. Pay Setting for Promotion
    Comment: One comment contained the recommendation that the $10,000 
limit on promotions be replaced by a percentage of base pay to create a 
system that can adapt as the General Schedule salary tables change. 
Over time, a fixed $10,000 amount will constitute a smaller and smaller 
percentage of base pay.
    Response: The following sentence has been deleted from the Federal 
Register notice, Section III.F.5: ``The maximum amount of a base pay 
increase for a promotion will not exceed $10,000, or other such amounts 
as established by the Personnel Management Board.'' This sentence had 
an unintended limiting effect.
4. Supervisory and Team Leader Pay Differentials
    Comment: One comment requested clarification on whether a 
supervisory/leader is eligible for a supervisory/leader pay adjustment 
and a supervisory/leader differential, or if the supervisor/leader is 
ineligible for one if another is received.
    Response: Additional guidance on the Supervisory and Team Leader 
Pay Adjustments will be contained in the Demonstration Project Internal 
Operating Instructions. No changes in the Federal Register notice have 
been made in response to this comment.

I. Employee Development

    One (1) comment was received under this section.
    Comment: A commenter requested clarification on how the service 
obligation period will be computed. Will one academic year of training 
(30 semester hours or equivalent) require one year of service, or will 
the service obligation be computed based on actual classroom hours, 
which is a much shorter period of time?
    Response: Additional guidance on critical skills training 
obligations will be contained in the Demonstration Project Internal 
Operating Instructions. No changes in the Federal Register notice have 
been made in response to this comment.

J. Reduction-In-Force

    A total of four comments were received under this category relating 
to three subtopics as follows:
1. Retention Standing for Modified Term Appointments
    Comment: Two comments requested clarification of the retention 
standing for employees on either a modified term appointment or a 
temporary appointment. Normally these two categories of appointments 
are not listed in Tenure Group. Both commenters suggested a review of 
Tenure Group determinations with a recommendation that both groups be 
identified as Tenure Group 0, and, therefore, not eligible to compete 
within a Reduction-In-Force (RIF).
    Response: This suggestion has been fully reviewed; and it is agreed 
that employees in these two appointment groups should not receive 
Tenure Group III status for RIF purposes. The following sentence is 
deleted from the Federal Register notice Section III. H: ``Modified 
term appointment and temporary employees are in tenure group III for 
RIF for purposes.'' The following sentence is added to Section III.H: 
``Modified term appointment and

[[Page 12512]]

temporary employees are in Tenure Group 0 and are not eligible to 
compete in a RIF.''
2. RIF Service Credit for Performance
    Comment: One comment addressed the use of seven and four years with 
specific percentage of service credit based upon the OCS. A 
recommendation was provided for a review to determine if the seven and 
four years could be replaced with a mechanism by which 20, 16, and 12 
years of additional RIF service credit could be used relating to the 
OCS similar to the traditional RIF procedures.
    Response: After a careful review, there is agreement that 
additional RIF service credit for performance would be better defined 
using a three tiered credit system relating to the traditional format 
found in most General Schedule procedures. The last three OCS scores 
will still be used plus a percentage of the expected OCS. Federal 
Register notice Sections III.H.a and b are removed and replaced with 
the following: ``a. 20 years of credit for each year the OCS is equal 
to or greater than 94 percent of the expected OCS. b. 16 years of 
credit for each year the OCS is less than 94 percent but greater than 
92 percent of the expected OCS. c. 12 years of credit for each year the 
OCS is less than 92 percent but greater than 90 percent of the expected 
OCS. d. Zero (0) years of credit for each year the employee's OCS is 
less than 90 percent of the expected 0CS.''
3. Contribution Improvement Plan Assignment Rights
    Comment: One comment called attention to granting assignment rights 
to any employee currently serving on a Contribution Improvement Plan 
(CIP) for RIF purposes and suggested it was not in the interest of the 
mission to place a nonperforming employee in a different position that 
has been identified as critical in a period of downsizing.
    Response: The Federal Register notice language contained in Section 
III. H. has been reconsidered; and it has been concluded it 
appropriately addresses assignment rights for employees on a CIP. No 
changes in the Federal Register notice have been made in response to 
this comment.

K. Conversion From NSPS to the Demonstration Project

    One (1) comment was received under this section.
    Comment: A commenter recommended providing additional details 
addressing when and why conversions from NSPS to Lab Demo may not be at 
the current NSPS bands.
    Response: The current Federal Register notice language contained in 
Section V.A.b. sets forth a conversion procedure that best fits the 
applicability of the TARDEC conversion situation. No changes have been 
made as a result of this comment.

L. Conversion From a Non-NSPS System to the Demonstration Project

    Two (2) comments were received under this section.
    Comment: One comment drew attention to the provision that employees 
who are on retained grade would not receive prorated Within Grade 
Increases if they are on a retained rate. Absent conversion to the 
demonstration project these employees would continue to receive Within 
Grade Increases for the duration of the period of retained grade as if 
they were never demoted.
    Response: This comment has been carefully considered. General 
Schedule (GS) employees on retained Grade at the time of conversion 
into Lab Demo Project will be afforded the prorated Within-Grade 
Increase equity provisions as outlined in Section V.B. No changes in 
the Federal Register notice have been made in response to this comment.
    Comment: One comment recommended deleting the sentence: ``Employees 
who enter the demonstration project from other pay systems (DCIPS, ACQ 
Demo, or other STRLs) after initial implementation by lateral transfer, 
promotion, reassignment, reduction in band, or realignment will be 
subject to the pay rules that govern conversion out of their respective 
systems.'' The commenter believes that it limits the ability to set pay 
in the lab demo.
    Response: This comment has been carefully considered. This sentence 
refers to the losing activity providing pay equivalencies for use by 
the Lab Demo in setting pay under Lab Demo rules. Employees are placed 
into the Lab Demo using the Lab Demo pay setting provisions. No changes 
in the Federal Register notice have been made in response to this 
comment.

M. Conversion Out of the Demonstration Project

    One (1) comment was received under this section.
    Comment: This comment recommended deletion of the sentence, ``For 
lateral reassignments, the equivalent GS grade and rate will become the 
employee's converted GS grade and rate after leaving the demonstration 
project (before any other action).'' This sentence assumes that the 
lateral action is determined prior to identification of the conversion 
grade. In place of this sentence, recommend rewording the following 
sentence to include reassignment as well as promotion, transfers, etc. 
The conversion grade must first be identified in order to determine if 
the subsequent action is a promotion, reassignment or downgrade.
    Response: This comment has been carefully considered. The detailed 
information contained in this sentence helps the receiving/gaining 
Human Resource Office to better understand how the Lab Demo system 
works. No changes in the Federal Register notice have been made in 
response to this comment.

N. Demonstration Project Costs

    One (1) comment was received under this section.
    Comment: It was recommended a review of the Design and Transition 
to NSPS expenses also be documented in addition to the three categories 
already identified in the Federal Register notice for Fiscal Years 2010 
and 2011 in order to properly account for the actual and projected 
expenses made in conjunction of with the demonstration project.
    Response: Table 9--Projected Development Costs has been modified to 
include related NSPS expenses. A line to cover Design and Transition 
from NSPS expenditures for FY 10 and FY 11 was added, plus the 
projected expenditures for the remaining categories were updated.

3. Access to Flexibilities of Other STRLs

    Flexibilities published in this Federal Register notice shall be 
available for use by the STRLs previously enumerated in section 
9902(c)(2) of title 5, United States Code, which are now redesignated 
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 accordance with 
DoD Instruction 1400.37; pages 73248 to 73252 of volume 73, Federal 
Register; and after the fulfilling of any collective bargaining 
obligations.

    Dated: March 1, 2011.
Morgan F. Park,
Alternate OSD Federal Register Liaison Office, 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 Organizations

[[Page 12513]]

    E. Participating Employees and Union Representation
    F. Project Design
    G. Personnel Management Board
III. Personnel System Changes
    A. Pay Banding
    B. Classification
    C. Contribution-based Compensation and Appraisal System (CCAS)
    D. Hiring Authority
    E. Internal Placement
    F. Pay Administration
    G. Employee Development
    H. Reduction-in-Force (RIF) Procedures
IV. Implementation Training
V. Conversion Into the Demonstration Project
    A. Conversion from NSPS to the Demonstration Project
    B. Conversion from Non-NSPS System to the Demonstration Project
    C. Movement Out of the Demonstration Project
    D. Personnel Administration
    E. Automation
    F. Experimentation and Revision
VI. Project Duration
VII. Evaluation Plan
    A. Overview
    B. Evaluation Model
    C. Evaluation
    D. Method of Data Collection
VIII. Demonstration Project Costs
    A. Cost Discipline
    B. Developmental Costs
IX. Required Waivers to Law and Regulation
Appendix A: TARDEC Employees by Duty Location
Appendix B: Occupational Series by Occupational Family
Appendix C: Contribution-Based Compensation and Appraisal System 
(CCAS) Factors
Appendix D: Intervention Model

I. Executive Summary

    TARDEC is a subordinate organization of the U.S. Army Research, 
Development and Engineering Command (RDECOM). TARDEC is the U.S. Army's 
Ground Vehicle Center of Excellence and the ground systems integration 
domain owner for RDECOM. TARDEC provides engineering and scientific 
expertise for DoD manned and unmanned ground systems and ground support 
systems. It is the Nation's laboratory for advanced military automotive 
technology and the Army's lead for advanced science and technology 
research, demonstration, development, and full Life Cycle engineering 
for ground vehicle electronics and architecture, power and mobility, 
intelligent ground systems, maneuver support and sustainment, and 
survivability.
    At TARDEC, the top priority is to deliver the most advanced 
technology solutions to improve the Nation's ground vehicle fleet. To 
do this effectively requires more than just hard work and dedication. 
It takes leadership, vision, and the determination to execute that 
vision. To be truly successful, the workforce needs to be able to lead, 
innovate, integrate, and deliver.
    To achieve this goal, TARDEC must be able to hire, retain, and 
continually motivate enthusiastic, innovative, and highly-educated 
scientists and engineers, supported by accomplished business management 
and administrative professionals as well as a skilled administrative 
and technical support staff.
    The goal of the project is to enhance the quality and 
professionalism of the TARDEC workforce through improvements in the 
efficiency and effectiveness of the human resource system. The project 
interventions will strive to achieve the best workforce for the TARDEC 
mission, adjust the workforce for change, and improve workforce 
satisfaction. The TARDEC proposed demonstration project is similar to 
the Department of Defense Civilian Acquisition Workforce Personnel 
Demonstration Project, commonly known as the ``Acq Demo.'' TARDEC has 
been using the Acq Demo's Contribution-Based Compensation and Appraisal 
System (CCAS) and its pay banding structure for a number of years. The 
TARDEC Project also uses concepts from the U.S. Army Communications-
Electronics Research, Development and Engineering Center (CERDEC) 
demonstration project and the Naval Research Laboratory demonstration 
project. The results of the project will be evaluated within five years 
of implementation.

II. Introduction

A. Purpose

    The purpose of the project is to demonstrate that the effectiveness 
of DoD STRLs can be enhanced by expanding opportunities available to 
employees and by allowing greater managerial control over personnel 
functions through a more responsive and flexible personnel system. 
Federal laboratories need more efficient, cost-effective, and timely 
processes and methods to acquire and retain a highly creative, 
productive, educated, and trained workforce. This project, in its 
entirety, attempts to improve employees' opportunities and provide 
managers, at the lowest practical level, the authority, control, and 
flexibility needed to achieve the highest quality organization and hold 
them accountable for the proper exercise of this authority within the 
framework of an improved personnel management system.
    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 ODUSD(CPP). The provisions of 
DoDI 1400.37 are to be followed for any modifications, adoptions, or 
changes to this demonstration project plan.

B. Problems With the Present System

    TARDEC has participated in a number of personnel systems and 
personnel demonstrations over the past 25 years. These include the 
current Civil Service General Schedule (GS) system, the Acq Demo 
Project, and the NSPS. In October 2009, as part of the NDAA for FY 
2010, TARDEC was designated as a STRL for the purpose of designing and 
implementing a personnel management demonstration project for 
conversion of employees from the personnel system(s) which applied to 
them on October 28, 2009. TARDEC's experience with each of these prior 
personnel systems was that, although each had positive features, each 
also had negative aspects. As a result of TARDEC's experience, it was 
determined that certain features from the earlier systems were 
worthwhile to carry forward and any shortcomings/limitations corrected 
or alleviated.
    The current GS system has existed in essentially the same form 
since 1949. Work is classified into one of fifteen overlapping pay 
ranges that correspond with the fifteen grades. Base pay is set at one 
of those fifteen grades and the ten interim steps within each grade. 
The Classification Act of 1949 rigidly defines types of work by 
occupational series and grade, with very precise qualifications for 
each job. This system does not quickly or easily respond to new ways of 
designing work and changes in the work itself.
    The performance management model that has existed since the passage 
of the Civil Service Reform Act in 1980 has come under extreme 
criticism. Employees frequently report there is inadequate 
communication of performance expectations and feedback on performance. 
There are perceived inaccuracies in performance ratings with general 
agreement that the ratings are inflated and often unevenly distributed 
by grade, occupation, and geographic location.
    The need to change the current hiring system is essential as TARDEC 
must be able to recruit and retain scientific, engineering, acquisition 
support and other professionals, and skilled

[[Page 12514]]

technicians. TARDEC 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 bonuses and incentives to attract high quality employees 
and be in compliance with public law.
    Finally, current limitations on training, retraining and otherwise 
developing employees make it difficult to correct skill imbalances and 
to prepare current employees for new lines of work to meet changing 
missions and emerging technologies.
    TARDEC's proposed personnel management demonstration project, by 
building on previous strengths and addressing shortcomings, is intended 
to provide the highest potential for movement to a single system that 
will meet the needs of TARDEC and all its employees.

C. Changes Required/Expected Benefits

    The primary benefit expected from this demonstration project is 
greater organizational effectiveness through increased employee 
satisfaction. The long-standing Department of the Navy's ``China Lake'' 
and the National Institute of Standards and Technology (NIST) 
demonstration projects have produced impressive statistics on increased 
job satisfaction and quality of work versus that for the Federal 
workforce in general. This project will demonstrate that a human 
resource system tailored to the mission and needs of the TARDEC 
workforce will facilitate increased:
    1. Quality in the workforce and resultant products;
    2. Timeliness of key personnel processes;
    3. Retention of ``excellent performers;''
    4. Success in recruitment of personnel with critical skills;
    5. Management authority and accountability;
    6. Satisfaction of customers; and
    7. Workforce satisfaction with the personnel management system.
    An evaluation model was developed for the Director, Defense, 
Research and Engineering (DDR&E) in conjunction with STRL service 
representatives and the Office of Personnel Management (OPM). The model 
will measure the effectiveness of this demonstration project and will 
be used to measure the results of specific personnel system changes.

D. Participating Organizations

    TARDEC is comprised of employees located at the main site in 
Warren, MI, with others geographically dispersed at the locations shown 
in Appendix A. TARDEC has employees matrixed to Program Executive 
Office Combat Support and Combat Service Support; Program Executive 
Office Ground Combat Systems; Program Executive Office Integration; and 
Tank Automotive Command (TACOM) Life Cycle Management Command (LCMC) 
Joint Project Office. Successor organizations will continue coverage in 
the demonstration project.

E. Participating Employees and Union Representation

    This demonstration project will cover approximately 1,427 TARDEC 
civilian employees under title 5, U.S.C. in the occupations listed in 
Appendix B. The project plan does not cover members of the Senior 
Executive Service (SES), Scientific and Professional (ST) employees, 
Federal Wage System (FWS) employees, employees covered by the Defense 
Civilian Intelligence Personnel System (DCIPS), Department of Army (DA) 
and Army Command centrally funded interns, or students employed under 
the Summer Hire Program.
    Department of Army and Army Material Command centrally funded 
interns will not be converted to the demonstration project until they 
reach their full performance level. They will continue to be covered 
under the Total Army Performance Evaluation System (TAPES). The 
American Federation of Government Employees (AFGE) Local 1658 
represents approximately 90% of TARDEC's professional and non-
professional workforce.
    To foster union acceptance of TARDEC's proposed personnel 
demonstration project, initial discussions with the Union officials 
began in December 2009. Negotiations will begin in earnest after 
publication of this Federal Register notice (FRN). TARDEC will continue 
to fulfill its obligation to consult and/or negotiate with all labor 
organizations in accordance with 5 U.S.C. 4703(f) and 7117, as 
applicable.

F. Project Design

    In October 2009, section 1105 of NDAA for FY 2010 directed TARDEC 
to transition to a laboratory demonstration project. TARDEC senior 
leadership decided to move toward adopting many aspects of both the Acq 
Demo and the CERDEC laboratory personnel demonstration project as 
modified by this FRN. The Acq Demo project was approved in 1999 and the 
CERDEC project was approved in 2001. TARDEC hopes to benefit from using 
the best practices from these demonstration projects.

G. Personnel Management Board

    1. TARDEC is creating a Personnel Management Board to oversee and 
monitor the fair, equitable, and consistent implementation of the 
provisions of the demonstration project to include establishment of 
internal controls and accountability. Members of the board will be 
senior leaders appointed by the TARDEC Director. As needed, ad hoc 
members (such as labor counsel, human resource representatives, etc.) 
will serve as advisory members to the board.
    2. The board will execute the following:
    a. Determine the composition of the CCAS pay pools in accordance 
with the guidelines of this proposal and internal procedures;
    b. Review operation of pay pools and provide guidance to pay pool 
managers;
    c. Oversee disputes in pay pool issues;
    d. Formulate and execute the civilian pay budget;
    e. Manage the awards pools;
    f. Determine hiring and promotion-based pay as well as exceptions 
to CCAS base pay increases;
    g. Conduct classification review and oversight, monitor and adjust 
classification practices, and decide board classification issues;
    h. Approve major changes in position structure;
    i. Address issues associated with multiple pay systems during the 
demonstration project;
    j. Establish contribution goals and other evaluation descriptors;
    k. Assess the need for changes to demonstration project procedures 
and policies;
    l. Review requests for Supervisory/Team Leader Base Pay Adjustments 
and provide recommendations to the appropriate Center Director;
    m. Ensure in-house budget discipline;
    n. Manage the number of employees by occupational family and pay 
band;
    o. Develop policies and procedures for administering Developmental 
Opportunity Programs;
    p. Ensure that all employees are treated in a fair and equitable 
manner in accordance with the policies, regulations and guidelines 
covering this demonstration project; and,
    q. Monitor the evaluation of the project.

III. Personnel System Changes

A. Pay Banding

    The design of the TARDEC pay banding system takes advantage of the 
many reviews performed by OPM, DoD, and DA. The design has the benefit 
of

[[Page 12515]]

being preceded by exhaustive studies of pay banding systems currently 
practiced in the Federal sector, to include those practiced by the 
Navy's ``China Lake'' experiment and NIST. The pay band system is 
designed to facilitate conversion, when and if appropriate, of GS, Acq 
Demo, and NSPS employees into the TARDEC demo.
1. Occupational Families, Career Paths, and Pay Band Levels
    Occupations with similar characteristics will be grouped together 
into one of three occupational families with career paths and pay band 
levels designed to facilitate pay progression. These occupational 
families are Engineering and Science (E&S), Business and Technical 
(B&T), and General Support (GEN). Each occupational family's career 
path will be composed of pay bands corresponding to recognized 
advancement and career progression expected within the occupations. 
These career paths and their pay bands will not be the same for each 
occupational family. Each career path will be divided into three to 
five pay bands. Employees track into an occupational family based on 
their current OPM classification series as provided in Appendix B. The 
current occupations have been examined, and their characteristics and 
distribution have served as guidelines in the development of the 
following three occupational families:
    Engineering and Science (E&S) (Pay Plan DB): This occupational 
family includes technical professional positions such as engineers, 
physicists, chemists, mathematicians, operations research analysts, and 
computer scientists. Specific course work or educational degrees are 
required for these occupations. Five pay bands have been established 
for the E&S occupational family:
    a. Band I is a student trainee track covering GS-1, step 1, through 
GS-4, step 10.
    b. Band II is a developmental/full performance level track covering 
GS-5, step 1, through GS-11, step 10.
    c. Band III is a full-performance technical track covering GS-12, 
step 1, through GS-13, step 10. Some first-level supervisory positions 
may also be included in this band.
    d. Band IV includes both senior technical positions along with 
supervisors-managers covering GS-14, step 1, through GS-15, step 10.
    e. Band V provides the ability to accommodate science and 
engineering positions having duties and responsibilities that exceed 
the GS-15 classification criteria. The DoD is developing 
classification, compensation, and performance management policy, 
guidance, and implementation processes for this pay band level that 
will be published in a separate FRN. TARDEC will supplement this 
information through internal operating guidance.
    Business & Technical (B&T) (Pay Plan DE): This occupational family 
includes such positions as program acquisition specialists, equipment 
specialists, engineering and electronics technicians, finance, 
accounting, administrative, and management analysts. Employees in these 
positions may or may not require specific course work or educational 
degrees. Four pay bands have been established for the B&T occupational 
family:
    a. Band I is a student trainee track covering GS-1, step 1, through 
GS-4, step 10.
    b. Band II is a developmental/full performance track covering GS-5, 
step 1, through GS-11, step 10.
    c. Band III is a full performance track covering GS-12, step 1, 
through GS-13, step 10.
    d. Band IV is a senior technical/manager track covering GS-14, step 
1, through GS-15, step 10.
    General Support (GEN) (Pay Plan DK): This occupational family is 
composed of positions for which specific course work or educational 
degrees are not required. Clerical work usually involves the processing 
and maintenance of records. Assistant work requires knowledge of 
methods and procedures within a specific administrative area. This 
family includes such positions as secretaries, office automation 
clerks, and budget/program/computer assistants. Three pay bands have 
been established for the GEN occupational family:
    a. Band I includes entry-level positions covering GS-1, step 1, 
through GS-4, step 10.
    b. Band II includes full-performance positions covering GS-5, step 
1, through GS-7, step 10.
    c. Band III includes senior technicians/assistants/secretaries 
covering GS-8, step 1, through GS-10, step 10.
2. Pay Band Design
    The pay bands for the TARDEC Lab Demo occupational families and how 
they relate to the current GS framework are shown in Table 1.

                          Table 1--TARDEC Lab Demo Pay Bands With Equivalent GS Grades
----------------------------------------------------------------------------------------------------------------
                                                    Lab demo pay bands with equivalent GS grades
        Occupational family        -----------------------------------------------------------------------------
                                           I              II              III             IV             V
----------------------------------------------------------------------------------------------------------------
DB, Engineering & Science.........  GS1-4           GS 5-11         GS 12-13        GS 14-15       > GS-15
DE, Business & Technical..........  GS 1-4          GS 5-11         GS-12-13        GS-14-15       .............
DK, General Support...............  GS 1-4          GS 5-7          GS 8-10         .............  .............
----------------------------------------------------------------------------------------------------------------

    The pay bands for the TARDEC Lab Demo occupational families and how 
they relate to the current Department of Defense Civilian Acquisition 
Workforce Personnel Demonstration Project framework are shown in Table 
2.

                      Table 2--TARDEC Lab Demo Pay Bands With Equivalent Acq Demo Pay Bands
----------------------------------------------------------------------------------------------------------------
                                                Lab demo pay bands with equivalent Acq demo pay bands
        Occupational family        -----------------------------------------------------------------------------
                                           I              II              III             IV             V
----------------------------------------------------------------------------------------------------------------
DB, Engineering & Science.........  NH-I            NH-II           NH-III          NH-IV          .............
DE, Business & Technical..........  NH-I, NJ-I      NH-II, NJ-II,   NH-III, NJ-IV   NH-IV          .............
                                                     NJ-III
DK, General Support...............  NK-I            NK-II           NK-III          .............  .............
----------------------------------------------------------------------------------------------------------------


[[Page 12516]]

    The pay bands for the TARDEC Lab Demo occupational families and how 
they relate to the NSPS conversion framework are shown in Table 3.

                                            Table 3--TARDEC Lab Demo Pay Bands With Equivalent NSPS Pay Bands
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     Lab demo pay bands with equivalent NSPS pay bands*
        Occupational family        ---------------------------------------------------------------------------------------------------------------------
                                               I                      II                      III                     IV                     V
--------------------------------------------------------------------------------------------------------------------------------------------------------
DB, E&S...........................  YP-1                    YD-1, YP-1              YD-2, YF-2              YD-3, YF-2, YF-3       .....................
DE, Business & Technical..........  YP-1, YB-1, YE-1        YA-1, YA-2, YB-1, YB-   YA-2, YB-3, YC-2, YE-   YA-3, YC-2, YC-3       .....................
                                                             2, YB-3, YE-1, YE-2,    3, YE-4
                                                             YE-3, YP-1
DK, General Support...............  YB-1, YE-1, YP-1        YB-1, YB-2, YE-1, YE-   YB-2, YE-2, YP-1        .....................  .....................
                                                             2, YP-1
--------------------------------------------------------------------------------------------------------------------------------------------------------
*NSPS Pay Bands overlap Lab Demo bands and Occupational Families

3. Science and Engineering Positions Classified Above GS-15 (Pay Band 
V)
    The career path pay banding plan for the E&S occupational family 
includes a pay band V to provide the ability to accommodate 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 laboratory plans to participate in this concept 
and develop classification, compensation, and performance management 
policy, guidance, and implementation processes will be based on the 
final outcome of the DoD evaluation (see Section III.A.1.e).

B. Classification

1. Occupational Series
    The GS classification system has over 400 occupational series, 
which are divided into 23 occupational groupings. TARDEC currently has 
positions in approximately 65 occupational series that fall into 
approximately three occupational groupings. All positions listed in 
Appendix B will be in the classification structure. Provisions will be 
made for including other occupations in response to changing missions.
2. Classification Standards and Position Descriptions
    TARDEC will use an automated classification system. The present 
system of OPM classification standards will be used for the 
identification of proper series and occupational titles of positions 
within the demonstration project. Current OPM Functional Guides for 
Within White Collar Work will be used to aid in position classification 
suitability and form the framework for pay band level determinations. 
Current OPM position classification standards will not be used to grade 
positions in this project. However, the grading criteria in those 
standards will be used as a framework to develop new and simplified pay 
band factor level descriptors for each pay band determination. The 
objective is to record the essential criteria for each pay band within 
each occupational family career path by stating the characteristics of 
the work, the responsibilities of the position, the competencies 
required, and the expected contributions. The pay band factor level 
descriptors will serve as both classification criteria and assessment 
criteria and may be found in Appendix C New position descriptions will 
replace the current position/job descriptions. The pay band factor 
level descriptors for each pay band will serve as an important 
component in the new position description, which will also include 
position-specific information, and provide data element information 
pertinent to the job. The computer-assisted process will produce 
information necessary for position descriptions. The new descriptions 
will be easier to prepare, minimize the amount of writing time, and 
make the position description a more useful and accurate tool for other 
personnel management functions.
    Specialty work codes (narrative descriptions) may be used to 
further differentiate types of work and the competencies required for 
particular positions within an occupational family and pay band. Each 
code represents a specialization or type of work within the occupation.
3. Fair Labor Standards Act
    Fair Labor Standards Act (FLSA) exemption and non-exemption 
determinations will be consistent with criteria found in 5 CFR part 
551. All demonstration project positions are covered by the FLSA unless 
they meet the criteria for exemption. Classification Specialists will 
evaluate positions on a case-by-case basis comparing the duties and 
responsibilities assigned, the pay band factor level descriptors for 
each pay band level, and the FLSA criteria in accordance with 5 CFR 
part 551. Additionally, the advice and assistance of the servicing 
Civilian Personnel Advisory Center will be obtained in making 
determinations. The benchmark position descriptions will not be the 
sole basis for the determination. Basis for exemption will be 
documented and attached to each position description. Exemption 
criteria will be narrowly construed and applied only to those employees 
who clearly meet the spirit of the exemption. Changes will be 
documented and provided to the Civilian Personnel Advisory Center.

[[Page 12517]]

4. Classification Authority
    The TARDEC Director will have delegated classification authority 
and may, in turn, re-delegate this authority to appropriate levels. 
Position descriptions will be developed to assist managers in 
exercising delegated position classification authority. Managers will 
identify the occupational family, job series, functional code, 
specialty work code, pay band level, and the appropriate acquisition 
codes. Personnel specialists will provide ongoing consultation and 
guidance to managers and supervisors throughout the classification 
process. These decisions will be documented on the position 
description.
5. Classification Appeals
    Classification appeals under this demonstration project will be 
processed using the following procedures: An employee may appeal the 
determination of occupational family, occupational series, position 
title, and pay band level of his/her position at any time. An employee 
must formally raise the area of concern to supervisors in the immediate 
chain of command, either verbally or in writing. If an employee is not 
satisfied with the DoD response, he or she may then appeal to OPM only 
after DoD has rendered a decision on all the provisions of the 
demonstration project. Appellate decisions from OPM are final and 
binding on all administrative, certifying, payroll, dispersing, and 
accounting officials of the Government. Time periods for cases 
processed under 5 CFR part 511 apply.
    An employee may not appeal the accuracy of the position 
description, the demonstration project classification criteria, or the 
pay-setting criteria; the assignment of occupational series to the 
occupational family; the propriety of a pay schedule; or matters 
grievable under an administrat