Science and Technology Reinvention Laboratory (STRL) Personnel Management Demonstration Project in the Joint Warfare Analysis Center (JWAC) of the United States Strategic Command (USSTRATCOM), 29414-29440 [2020-10481]

Agencies

• DEPARTMENT OF DEFENSE
• Office of the Secretary

[Federal Register Volume 85, Number 95 (Friday, May 15, 2020)]
[Notices]
[Pages 29414-29440]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10481]



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DEPARTMENT OF DEFENSE

Office of the Secretary

[Docket ID: DOD-2019-OS-0128]


Science and Technology Reinvention Laboratory (STRL) Personnel 
Management Demonstration Project in the Joint Warfare Analysis Center 
(JWAC) of the United States Strategic Command (USSTRATCOM)

AGENCY: Under Secretary of Defense for Research and Engineering 
(USD(R&E)), Department of Defense (DoD).

ACTION: Personnel demonstration project notice.

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SUMMARY: This Federal Register Notice (FRN) serves as notice of the 
adoption of an existing STRL Personnel Demonstration Project by the 
Joint Warfare Analysis Center (JWAC), United States Strategic Command 
(USSTRATCOM). JWAC adopts, with some modifications, the STRL Personnel 
Demonstration Project implemented at the Air Force Research Laboratory 
(AFRL).

DATES: Implementation of this demonstration project will begin no 
earlier than May 15, 2020.

FOR FURTHER INFORMATION CONTACT: 
     Joint Warfare Analysis Center (JWAC): Ms. Amy Balmaz, 
Director, Human Resources, 4048 Higley Road, Dahlgren, VA 22448, (540) 
653-8598, [email protected].
     DoD: Dr. Jagadeesh Pamulapati, Director, Laboratories and 
Personnel Office, 4800 Mark Center Drive, Alexandria, VA 22350, (571) 
372-6372, [email protected].

SUPPLEMENTARY INFORMATION: Section 342(b) of the National Defense 
Authorization Act (NDAA) for Fiscal Year (FY) 1995, Public Law (Pub. 
L.) 103-337; as amended, authorizes the Secretary of Defense (SECDEF), 
through the USD(R&E), to conduct personnel demonstration projects at 
DoD laboratories designated as STRLs.

1. Background

    Many studies conducted since 1966 on the quality of the 
laboratories and personnel 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 have been 
approved. The demonstration 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.

2. Overview

    DoD published notice on November 21, 2019 in 84 FR 64283 that JWAC 
will adopt, with some modifications, the STRL personnel demonstration 
project published in 75 FR 53076, August 30, 2010, and implemented in 
the AFRL. Section 1105(b) of the NDAA for FY 2010, as amended by 
section 1104 of the NDAA for FY 2018, Public Law 115-91 authorizes JWAC 
in the USSTRACOM to implement an STRL personnel demonstration project.
    Adoption of the AFRL's personnel demonstration project, with 
modifications, will enable JWAC to achieve the best workforce for its 
mission, adjust the workforce for change, improve workforce quality, 
and allow JWAC to acquire and retain an enthusiastic, innovative, and 
highly educated and trained workforce, particularly scientific and 
engineering professionals. Implementation of the JWAC personnel 
demonstration project (JWAC-DP) is essential for competitive hiring and 
retention of a highly qualified workforce.

3. Access to Flexibilities of Other STRLs

    Flexibilities published in this FRN will be available for use by 
the STRLs enumerated in section 1105 of the NDAA for FY 2010, Public 
Law 111-84 as amended, if they wish to adopt them in accordance with 
DoD Instruction 1400.37 (and its successor instructions) and after the 
fulfillment of any collective bargaining obligations.

4. Summary of Comments

    Sixteen comments were received electronically via the Federal 
eRulemaking Portal regarding the Science and Technology Reinvention 
Laboratory (STRL) Personnel Management Demonstration Project in the 
Joint Warfare Analysis Center (JWAC) of the United States Strategic 
Command (USSTRATCOM), Federal Register, 84 FR 64283, dated November 21, 
2019. Of the 16 comments received, 4 were not relevant to this document 
and are not addressed. The remaining comments by topical area and a 
response to each are provided below

(1) Problems With the Present Systems

    Comment: A commenter expressed concern about how this project will 
enable JWAC to compete with the private sector and other government 
agencies for the best talent and be able to make job offers in a timely 
manner with the appropriate monetary compensation and incentives, while 
not penalizing current employees.
    Response: JWAC-DP flexibilities, such as broadbanding, flexible pay 
setting and direct hire authorities, will aid in attracting the highly 
sought after talent. The broadbanding structure and flexible pay 
setting authorities will enable management to offer more competitive 
starting salaries and broader pay ranges. The direct hire authorities 
will allow JWAC to target specific occupations and recruiting events 
and provide a more streamlined hiring experience for candidates. 
Nevertheless, pay setting actions will continue to be constrained by 
the JWAC civilian pay budget, which is not to be confused with the pay 
pool budget applicable to Contribution-based Compensation System (CCS) 
actions. Current employee salaries are an established part of the 
civilian pay budget and civilian pay funds will not be reallocated to 
disadvantage current employees. Rather, contribution-based pay parity 
is achieved through the CCS assessment process.

(2) Personnel Policy Board

    Comment: A commenter asked a series of questions relating to 
section II. F. (Personnel Policy Board): ``How does the PPB ensure 
accountability? Is this information shared with all employees to help 
ensure accountability? If not, why? If this is done behind closed doors 
then what true accountability is there? Pay secrecy helps make it 
easier for management to be less accountable for their decision. 
Management may want to keep in mind that many civil servant salaries 
are actually published online for the entire world to see--with names. 
If that is appropriate then is it 100% appropriate for fellow employees 
within JWAC to have at a minimum a full picture of what awards were 
given out. I am not suggesting to include names, but the monetary 
information should be visible to all.''
    Response: The Personnel Policy Board (PPB) ensures reasonable 
transparency and appropriate accountability by publishing information 
such as the annual compensation strategy, to include pay pool funding 
decisions, pay pool process guidance, an aggregate rollup of CCS 
results, and any changes to the JWAC-DP policies. The responsibilities 
of the PPB will be detailed in the JWAC internal operating procedures 
(IOPs), which will be available to all employees. Additionally the PPB 
will review the results of the

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evaluation described in Section VII and will publish its conclusions.

(3) Pay Setting

    Comment: A commenter asked whether there would be service 
obligation periods for employees receiving a bonus (e.g., recruitment, 
retention, or relocation) to prevent employee attempts to ``game'' the 
system by taking a bonus and then leaving immediately.
    Response: Use of these pay setting flexibilities will be governed 
by internal JWAC IOPs which will require a continued service agreement 
for such bonuses.
    Comment: A commenter asked a series of questions about the ``demo 
bonus'' available to employees converting into or hired into JWAC-DP: 
``Where does this money come from? If it is from the general pot of 
money how does offering bonuses to new employees not penalize existing 
employees as money would be taken out of the pot of money being divided 
for yearly payouts? Under pay setting ``demo bonus'': Why is the 
limitation on the bonuses allowed with the total compensation not to 
exceed Level 1 of the Executive schedule? That appears to mean that the 
bonus could potentially be between 76,941 and 198,958! These potential 
bonuses seem excessive as well as seem like an excessive amount of 
leeway being given to management. While someone being given almost a 
200K sign on bonus seems implausible, why is it even a granted option? 
Wouldn't this be better written as a ``demo bonus'' up to X-thousand 
dollars can be given, where total compensation for the year does not 
exceed Level 1 of the Executive Schedule? On the flip side to retain a 
highly preforming employee with an 'alternative employment opportunity' 
that employee can only be offered a bonus up to 50% of one year of base 
pay. This means a maximum of 68,329.50. (This authority in itself seem 
excessive!) So in order to retain a proven worker JWAC is authorized to 
give a bonus smaller than the bonus authority authorized to get a new-
unproven employee? Where does all this money come from, and how does 
awarding these bonuses not affect the pay of other employees?''
    Response: While the flexible pay setting authority is meant to help 
the JWAC compete with private industry for high quality candidates, pay 
setting actions will continue to be constrained by the JWAC civilian 
pay budget which does not reallocate funds to disadvantage existing 
employees. Moreover, JWAC-DP will continue to apply the aggregate pay 
limitations in section 5307 of Title 5, United States Code (U.S.C.) and 
part 503, subpart B of title 5 of the Code of Federal Regulations 
(CFR). Under these provisions, an employee's total monetary 
compensation (to include base pay and bonuses) may not exceed the basic 
rate of pay in level I of the Executive Schedule ($219,200 for calendar 
year 2020). To recruit top talent, management is otherwise afforded 
significant flexibility to develop a compensation package, to include 
annual pay and bonus, based on the employee's academic qualifications, 
competencies, experience and anticipated contributions.
    Comment: A commenter asked what limits are placed on how much 
students returning to duty at JWAC can be paid incentives/bonuses?
    Response: The PPB will determine the use and the financial limits 
of this incentive. The initial incentive payment may be based on 
anticipated expenses, or a portion thereof. Documentation, to include 
receipts of actual expenses, must be provided by the student to 
validate initial incentive payment and support potential future 
payments. Actual expenses may include airline tickets, rental car, van 
rental, driving cost from each location, and lodging. Management has 
the discretion to determine the appropriate incentive amount, which may 
or may not cover all expenses. Payments may be made incrementally 
(e.g., monthly, quarterly). This authority is not intended to pay 
moving expenses in conjunction with permanent appointment action.

(4) CCS

    Comment: A commenter expressed concerns with the use of the word 
``perceived'' in relation to employee accomplishments.
    Response: The word has been removed.
    Comment: A commenter asked a series of questions about application 
of the General Pay Increase (GPI) to pay calculations: ``Are the rails 
moved FIRST and then it is determined if someone falls within the rails 
or above or below? Or is the location determination made first and then 
the rail moved? What happens if (when) a late or even retroactive basic 
pay rate increase occurs? All this could affect if someone gets the 
basic rate increase or not. (Ex: someone was just above the rail so 
they would not automatically get any late general basic pay rate).''
    Response: Rail position is based on the current year's pay. 
Retroactive changes to the General Pay Increase (GPI) do not affect pay 
calculations, but only affect the amount of the GPI payout. Once the 
retroactive increase is approved and ready to be processed, revised pay 
transactions are sent through the personnel and pay systems to update 
pay. The current STRL demonstration projects followed this process with 
the retroactive change in GPI for 2019.
    Comment: A commenter asked what concrete steps have been taken to 
ensure that compensation bias does not affect the outcomes of this 
program.
    Response: The question does not identify the the bias of concern. 
The Office of Personnel Management (OPM) reviewed how various 
demographics have fared under the STRL personnel demonstration projects 
and found the STRL results to be similar to GS employees. The Meetings 
of Managers process used in this compensation system helps to alleviate 
bias by using a group of managers who have been provided objective 
criteria to make compensation decisions. Additionally, the PPB will 
review and analyze annual CCS and evaluation results, and make overall 
policy changes as needed.
    Comment: A commenter made the following observations about 
opportunities for employees to increase contribution levels in order to 
receive pay increases: ``As this system is so dependent on 
'contribution' what concrete steps are being taken to ensure that ALL 
employees are given equal opportunity to contribute in a significant 
way? In other words what does management do to ensure that every year, 
every employee has the opportunity to advance and be rewarded equally? 
This cannot be left up to the employee. Perhaps the employee is doing a 
valid job that takes 100% of their time, but it is not an appreciated 
job. Employees are not aware of all the opportunities that are 
available, so they can't ask for an opportunity. And, of course they 
don't control what they are given, even if they asked for new 
opportunities. As an example: Say my given job was to empty the trash. 
It takes all day and I don't have time to do anything else. No one else 
is willing to do this job. People don't seem to appreciate the 
contribution I make when the trash is emptied, but there will certainly 
be criticism if the job is NOT done. Thus we don't give credit for a 
good job being done which is a required (and very important) job. In 
other words the true contribution is not acknowledged except in the 
negative. If this job is going to continue to be discounted then what 
opportunity will I be given to learn and practice a new skill which 
makes a greater 'contribution'? Or as a flip side, what steps will be 
taken to ensure that when

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management rates me, my 'contribution' is truly appropriately 
acknowledged? The multiple level evaluations do not seem to alleviate 
this issue. How is the actual opportunities the employee was given 
taken into account? If they are, how will management ensure that the 
general population actually believes this is true? How will management 
prove it to the general worker? Bottom line: If an employee is not 
given an opportunity to 'contribute' in a significant way how is the 
salary/award outcome fair and equal in this system?''
    Response: The employee and the supervisor must work together to 
ensure that assigned duties and tasks contribute to the mission. Both 
the employee and the supervisor should be able to articulate the 
relevance and the impact of the work. An employee's expected 
contribution is determined by the current level of base pay and the 
duties of the job as defined in the Statement of Duties and Experience. 
As long as the employee contributes at the level of the current level 
of pay, the employee will receive the GPI each year. To receive more 
than the GPI, the employee must contribute at a higher level. For 
example, this may involve expanding the duties of the job or performing 
the duties in a manner that is more efficient. However, when additional 
contribution opportunities for a certain level of pay or occupation 
become limited, an employee may need to pursue a higher level position 
in order to obtain greater compensation opportunities.

(5) JWAC-DP Training

    Comment: A commenter questioned whether the JWAC-DP Training 
provided during transition will lead to program commitment on the part 
of the participants.
    Response: Training is a key component of JWAC preparation for a 
smooth transition. Training is expected to increase the rate of change 
management success, encourage belonging, provide clarity and 
understanding, and promote employee engagement. This section has been 
revised to better convey JWAC's intent to provide workforce training in 
order to ease employee concerns about moving to a new system.

(6) Evaluation Plan

    Comment: A commenter asked whether an evaluation has been conducted 
for the existing STRL programs to ensure that there is no detriment to 
employees' pay and bonuses based on sex, race, or any other protected 
class and, if so, where the evaluation results are published.
    Response: Evaluations conducted by various public and private 
organizations over the last 40 years are maintained by those 
organizations. The Office of Personnel Management (OPM) published 
evaluation reports in the early years of the STRL demonstration 
projects but no longer does, Each STRL is responsible for conducting 
and maintaining their own evaluations. JWAC will be required to do the 
same, as outlined in the FRN.

(7) Terminology Clarification

    Comment: A commenter questioned the use of the gender pronouns 
``his'' and ``her'' because some may believe that they exclude non-
binary employees.
    Response: Although use of such pronouns is not objectionable, they 
are not necessary for the purposes of this FRN and have been removed.

Table of Contents

I. Executive Summary
II. Introduction
    A. Purpose
    B. Problems With the Present System
    C. Expected Benefits
    D. Participating Employees
    E. Project Design
    F. Personnel Policy Board
III. Personnel System Changes
    A. Hiring and Appointment Authorities
    B. Pay Setting
    C. Broadbanding
    D. Classification
    E. Contribution-Based Compensation System
    F. Dealing With Inadequate Contributions
    G. Voluntary Emeritus Corps
    H. Employee Development
IV. JWAC--DP Training
V. Conversion
    A. Conversion to the Demonstration Project
    B. Conversion to another Personnel System
VI. Project Duration and Changes
VII. Evaluation Plan
    A. Overview
    B. Evaluation Model
    C. Method of Data Collection
VIII. Demonstration Project Costs
IX. Required Waivers to Law and Regulation
    A. Title 5, United States Code
    B. Title 5, Code of Federal Regulations
Appendix A: Career Path Occupational Series
Appendix B: Example of Factors and Descriptors, Scientists and 
Engineer Career Path, Pay Plan DR

I. Executive Summary

    JWAC is a global warfighting organization and a subordinate 
organization of the USSTRATCOM. JWAC provides targeting analysis to 
combatant commands, Joint Staff, and other customers including effects-
based, precision targeting options for selected networks and nodes in 
order to carry out the national security and military strategies of the 
U.S. during peace, crisis, and war. In order to enable military forces 
to rapidly achieve U.S. national security objectives, JWAC relies on 
the analysis of a variety of engineering, scientific, intelligence, and 
social science disciplines. The analytical and research teams apply 
social and physical science techniques and engineering expertise to 
provide quick-turn-around solutions to support the warfighter. Further, 
JWAC conducts research and development of new methodologies and 
technologies to advance technical analysis of critical networks and 
provide more targeting options against emerging threats.
    JWAC must be able to acquire and retain an enthusiastic, 
innovative, and highly educated and trained workforce, particularly 
scientists and engineers, and must have in place a system that fosters 
their development, enhances their contribution and experience, and 
provides a strong retention incentive.

II. Introduction

A. Purpose

    The purpose of JWAC--DP 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. JWAC--DP will 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

    1. JWAC has a proven history of providing the warfighter with 
targeting recommendations that break free from attrition warfare and 
focus on striking the enemy at the point that produces the greatest 
advantage for friendly forces. It has the ability to provide 
recommendations that can prevent war and, if necessary, help our nation 
win in time of conflict. To achieve its mission, JWAC must acquire and 
retain an enthusiastic, innovative, and highly educated and trained 
workforce, particularly scientific and engineering professionals.
    2. The Civil Service General Schedule (GS) personnel system has 
several major inefficiencies that hinder management's ability to 
recruit and retain the best-qualified personnel. Line managers have 
only limited authority to manage personnel resources, and existing 
personnel regulations are often in conflict with management's ability 
to support JWAC's mission. Current personnel action processes and

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procedures cause delays in recruiting, reassigning, promoting, and 
removing employees.
    3. The GS classification system rigidly defines types of work by 
occupational series and grade, with very precise qualifications for 
each job which are then classified by complex classification standards, 
causing lengthy hiring delays, and limiting the manager's ability to 
offer competitive compensation. This system does not easily or quickly 
respond to changes in the work based on mission requirements. One of 
the JWAC--DP's goals is to support simplified classification processes 
that can be accomplished quickly and efficiently at the lowest level of 
management.
    4. JWAC must be able to compete with the private sector and other 
government agencies for the best talent and be able to make job offers 
in a timely manner with the appropriate monetary compensation and 
incentives to attract high quality employees. JWAC must successfully 
compete for high quality scientists and engineers locally with Naval 
Surface Warfare Center (NSWC) Dahlgren Division, an established STRL, 
and the public and private sector across the National Capital Region. 
Today, other STRLs can make an employment offer, at a much higher 
salary, to a promising candidate before JWAC can prepare the paperwork 
necessary to begin the recruitment process.

C. Expected Benefits

    1. This project is expected to demonstrate that a human resources 
system tailored to the mission and needs of JWAC will result in:
    a. Increased quality in the total workforce and the products they 
produce;
    b. increased timeliness of key personnel processes;
    c. increased retention of high contributing employees;
    d. increased employee satisfaction with the laboratory; and
    e. improved procedures for effectively and efficiently dealing with 
poor contributors.
    2. The JWAC-DP builds on the successful features of existing 
demonstration projects, including the AFRL's. For the JWAC-DP to 
achieve the same results it must enable and enhance:
    a. The ability to attract highly qualified scientific, technical, 
business, and support employees in today's competitive environment;
    b. the ability to select personnel and make job offers in a timely 
and efficient manner, with the competitive compensation that attracts 
high-quality, in-demand employees;
    c. employee satisfaction with pay setting and adjustment, 
recognition, and career advancement opportunities;
    d. human resources (HR) flexibilities needed to staff, shape, and 
adjust to evolving requirements associated with sustaining a quality 
workforce for the future; and
    e. retention of high-level contributors.
    3. To effectively meet the above expectations, the JWAC-DP has 
identified and established in this notice those features and 
flexibilities that provide the mechanisms to achieve its objectives. 
Those features and flexibilities alone, however, will not ensure 
success. The nature of the JWAC-DP and its ambitious workforce goals 
will require HR support at an enhanced level. A traditional process-
oriented and reactive construct will serve neither the mission nor the 
management needs of the organization. The JWAC-DP's emphases include 
its streamlined hiring, a sophisticated contribution-based compensation 
system, talent acquisition/retention, and professional human capital 
planning and execution. Accordingly, successful execution of that 
vision includes an HR service delivery model that is highly proactive, 
expertly skilled in analytical tools, and fully capable of engaging as 
a strategic partner and trusted agent of a modern multi-faceted 
organization.

D. Participating Employees

    1. The JWAC-DP will cover civilian appropriated fund employees in 
the competitive and excepted service, unless otherwise excluded. 
Personnel added to the laboratory after implementation either through 
appointment, conversion, promotion, reassignment, change to a lower 
grade, or where their functions and positions have been transferred 
into the laboratory will be converted to the demonstration project.
    2. Senior Executive Service (SES) members, Defense Civilian 
Intelligence Personnel System (DCIPS, pay plan GG) positions, and 
Department of Air Force (DAF) centrally funded interns and recent 
graduates appointed under the Pathways Program are not covered in the 
demonstration project.
    3. DAF centrally funded interns and recent graduates will convert 
to the JWAC--DP once they have successfully completed a formal 
development program and converted to a competitive position in JWAC. 
Performance appraisals will be conducted using the Defense Performance 
Management and Appraisal Program (DPMAP) until such employees are 
converted to the JWAC--DP.

E. Project Design

    The JWAC-DP was designed and led by a cross-functional team 
comprised of the Director or Deputy Director and other senior leaders 
representing each JWAC directorate. The design team was augmented and 
supported by volunteers from across JWAC to support the iterative 
development, assessment and evaluation of all of the elements of the 
JWAC-DP design. The team composition represented all career fields and 
utilized their vast experience in the current systems and authorities 
as well as previous DoD personnel management systems. The design team 
reviewed and considered all existing STRL designs through detailed 
reviews of the published FRNs, exchanges with other STRL program 
managers, and organizational site visits to leverage the experience and 
lessons-learned of existing, mature STRL designs. The JWAC design team 
relied heavily on subject-matter-expertise that has been supporting the 
AFRL demonstration project's design and revisions, as well as 
demonstration projects that have been utilized at other STRLs, some for 
over 20 years. The JWAC-DP design is grounded in the AFRL demonstration 
project's design, and takes advantage of authorities and design 
elements from other DoD laboratories and personnel systems applicable 
to JWAC. The JWAC-DP design team utilized an iterative approach of 
reviews and a series of mock activities to develop, test, and exercise 
the JWAC-DP design proposal, including a JWAC-wide workforce critique 
of the draft FRN. The design is focused on recruiting and hiring 
authorities and flexibility as well as a contribution-based 
compensation system. This FRN adopts hiring authorities currently 
utilized by other DoD STRL Personnel Demonstration Projects.

F. Personnel Policy Board

    JWAC has created a Personnel Policy Board (PPB) to oversee and 
monitor the fair, equitable, and consistent implementation of the 
provisions of the demonstration project to include establishing 
internal controls and accountability. The PPB Chairperson and members 
of the board are senior JWAC managers appointed by the JWAC Commander 
and documented in internal operating procedures (IOPs). The PPB 
Chairperson serves as the pay pool manager and must report directly to 
the JWAC Commander. Ad hoc members can be assigned at the discretion of 
the JWAC Commander to

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provide subject matter expertise or to advise the PPB. The 
establishment of this Board shall not affect the authority of any 
management official in the exercise of their management rights set 
forth in 5 U.S.C. 7106(b)(1). The PPB is tasked with the following:
    1. Formulating and managing the civilian pay pool budget;
    2. Determining the composition of the pay pool in accordance with 
the guidelines of this proposal and internal procedures;
    3. Reviewing operation of JWAC's pay pool process;
    4. Providing guidance to the pay pool process;
    5. Reviewing seamless broadband level movements;
    6. Reviewing Accelerated Compensation for Developmental Position 
(ACDP) increases;
    7. Monitoring award pool distribution by organization or any other 
special categorization;
    8. Assessing the need for and making changes to the JWAC-DP 
policies when needed to further define specific flexibilities to ensure 
standard application across the organizational units;
    9. Ensuring all budget decisions are in alignment with funding 
sponsor's fiscal guidelines and boundaries; and
    10. Ensuring that all employees are treated in a fair and equitable 
manner in accordance with all policies, regulations, and guidelines 
covering this demonstration project.

III. Personnel System Changes

A. Hiring and Appointment Authorities

1. Description of Hiring Process
    JWAC is implementing a streamlined examining process as 
demonstrated in other STRLs. This applies to all covered positions in 
JWAC, with the exception of Senior Executive Service (SES) and DAF 
centrally funded interns and students. This process includes 
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 of the CFR. The 
``rule of three'' is eliminated, similar to the authorities granted to 
AFRL in 75 FR 53076, August 30, 2010. When there are no more than 15 
qualified applicants and no preference eligible applicants, all 
qualified 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 eligible and non-preference eligible applicants. Statutes 
and regulations covering veterans' preference are observed in the 
selection process and when rating and ranking are required.
    The JWAC Commander is delegated authority, with respect to a JWAC 
employee, to administer the oath of office required by 5 U.S.C. 3331, 
incident to entrance into the executive branch or any other oath 
required by law in connection with employment in the executive branch.
2. Direct Hiring Authorities
    The JWAC-DP will use the direct-hire authorities authorized by 
section 1108 of the NDAA for FY 2009 as amended by section 1103 of the 
NDAA FY 2012 and in 10 U.S.C. 2358a to non-competitively appoint the 
following:
    a. Candidates with advanced degrees to scientific and engineering 
positions;
    b. Candidates with bachelor's degrees to scientific and engineering 
positions;
    c. Veteran candidates to scientific, technical, engineering, and 
mathematics positions (STEM), including technicians; and
    d. Student candidates enrolled in a program of instruction leading 
to a bachelors or advanced degree in a STEM discipline.
    3. Distinguished Scholastic Achievement Authority (DSAA): The JWAC-
DP will use the Distinguished Scholastic Achievement Authority (DSAA) 
to non-competitively appoint candidates possessing a bachelor's degree 
or higher to Science and Engineering positions, Business Management and 
Professional positions or Technician positions, up to the equivalent of 
GS-12 (DR-II or DO-II). Candidates may be appointed using this 
authority provided all of the following conditions are met: the 
candidate meets the minimum standards for the position as published in 
OPM's operating manual, ``Qualification Standards for General Schedule 
Positions,'' plus any selective factors stated in the vacancy 
announcement; the occupation has a positive education requirement; and 
the candidate has a cumulative grade point average of 3.5 or better (on 
a 4.0 scale) in those courses in those field's of study that are 
specified in the Qualifications Standards for the occupational series.
    Veterans' preference procedures will apply when selecting 
candidates under this authority. Preference eligible candidates who 
meet the above criteria will be considered ahead of non-preference 
eligible candidates. In making selections, to pass over any preference 
eligible candidate(s) to select a non-preference eligible candidate 
requires approval under applicable DA pass-over or objection 
procedures. Distinguished Scholastic Achievement Appointments will 
enable JWAC to respond quickly to hiring needs for eminently qualified 
candidates possessing distinguished scholastic achievements.
    4. Flexible Length and Renewable Term Technical Appointments 
(Flexible Term Appointment): Non-permanent positions (exceeding one 
year) needed to meet fluctuating or uncertain workload requirements may 
be competitively filled using the Flexible Length and Renewable Term 
Technical Appointment Authority, authorized in section 1109 of NDAA 
FY16, Section 1109, as amended by section 1112 of NDAA FY19 and 
described 82 FR 43339, 43340, or the Contingent Employee Appointment 
Authority authorized in 62 FR 34876, 34899.
    Employees hired for more than one year, under the Contingent 
Employee Appointment Authority (CEAA), are given modified term 
appointments in the competitive service for up to five years. The JWAC 
Commander is authorized to extend a contingent appointment for up to 
one additional year.
    Using the Flexible Length and Renewable Term Technical Appointment 
Authority (FLRTTA), a modified term scientific or technical position 
may be filled for any period of more than one year but not more than 
six years, and may be extended in up to six year increments at any 
time.
    Employees hired under these appointment authorities may be eligible 
for conversion to career appointments. To be converted from CEAA or 
FLRTTA, the employee must (a) have been selected for the term position 
under an announcement or public notice specifically stating that the 
individual(s) selected for the term position(s) may be eligible for 
conversion to career-conditional appointment at a later date without 
further competition; (b) served two years of substantially continuous 
service in a term position; and (c) have a current rating of acceptable 
or better.
    Employees serving under term appointments at the time of conversion 
to the STRL Demonstration Project will be converted to new term 
contingent employee appointments. Time served in term positions prior 
to conversion to the contingent employee appointment is creditable to 
the requirement for two years of continuous service stated above, 
provided the service was continuous.
    5. Reemployed Annuitants and Voluntary Early Retirement Authority

[[Page 29419]]

and Voluntary Separation Incentive Payment: The JWAC Commander may 
appoint reemployed annuitants and/or offer Voluntary Early Retirement 
Authority (VERA)/Voluntary Separation Incentive Payment (VSIP) packages 
as described in 82 FR 43339, September 15, 2017, to shape the mix of 
technical skills and expertise in the workforce.
    6. Probationary Period. The probationary period will be three years 
for all newly hired employees, including individuals entering the JWAC-
DP after a break in service of 30 calendar days or more. Employees who 
enter the JWAC-DP with a break in service of less than 30 calendar days 
are not required to complete an extended probationary period if their 
previous service was in the same line of work as determined by the 
employee's actual duties and responsibilities upon reappointment. 
Current permanent Federal employees hired into the JWAC-DP are not 
required to serve a new probationary period. Any employee appointed 
prior to the date of this FRN will not be affected.
    Employees on non-status appointments (appointments that are time-
limited or nonpermanent and from which employees do not acquire 
competitive status) will be subject to the probationary 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 Flexible Length and Renewable Term Technical Appointment 
will serve a three-year trial period (in accordance with (IAW) 5 CFR 
316.304 except that rather than a one-year trial period, it is a three-
year trial period). Upon conversion to competitive service, any periods 
of employment served during a non-status appointment or a flexible term 
appointment will be counted toward the completion of the extended 
probationary period.
    All other features of the current probationary period are retained, 
including the potential to remove an employee without providing the 
full substantive and procedural rights afforded a non-probationary 
employee. Probationary employees will be terminated if an employee 
fails to demonstrate proper conduct, technical competency, and/or 
adequate contribution for continued employment. When the JWAC Commander 
or designee decides to terminate an employee serving a probationary 
period because their work performance or conduct during this period 
fails to demonstrate fitness or qualifications for continued 
employment, the employee will be provided written notification of the 
reasons for separation and the effective date of the action. The 
information in the notice as to why the employee is being terminated 
will, as a minimum, consist of the manager's conclusions as to the 
inadequacies of their performance or conduct.
    Supervisory probationary periods will be made consistent with 5 CFR 
315.901. Employees that have successfully completed the initial 
probationary period will be required to complete an additional one year 
probationary period for the initial appointment to a supervisory 
position. If, during the supervisory probationary period, the decision 
is made to return the employee to a nonsupervisory position for reasons 
solely related to supervisory performance, the employee will be 
returned to a comparable position of no lower payband and pay than the 
position from which promoted.
    7. Qualification Determinations: A candidate's basic eligibility 
will be 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 
determined 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.
    a. Science and Engineering (S&E) (Pay Plan DR) Career Path: This 
career path includes technical professional positions, such as 
engineers, physicists, chemists, metallurgists, mathematicians, 
operations research analysts, and computer scientists. Additional 
occupational series may be added in the future. Employees in these 
positions require specific course work or educational degrees. Five 
broadband levels have been established for the S&E career path:
     Band level I minimum eligibility requirements are 
consistent with the GS-07 qualifications.
     Band level II minimum eligibility requirements are 
consistent with the GS-12 qualifications.
     Band level III minimum eligibility requirements are 
consistent with the GS-14 qualifications.
     Band level IV minimum eligibility requirements are 
consistent with the GS-15 qualifications.
     Band level V minimum eligibility requirements are above 
the GS-15 qualifications. This band is limited to senior scientific 
technical manager (SSTM) positions, the primary functions of which are 
to engage in research and development in the physical, biological, 
medical or engineering sciences or another field closely related to the 
mission of the JWAC; and to carry out technical supervisory 
responsibilities. The number of such positions shall not exceed two 
percent of the number of scientists and engineers employed at JWAC.
    b. Business Management and Professional (Pay Plan DO) Career Path: 
This career path supports the S&E mission, and includes specialized 
positions such as finance, acquisition, human resources, IT services, 
and administrative specialists. Employees may or may not be required to 
have specific course work or degrees to qualify for these positions. 
Four broadband levels have been established for the Business Management 
and Professional career path:
     Band level I minimum eligibility requirements are 
consistent with the GS-07 qualifications.
     Band level II minimum eligibility requirements are 
consistent with the GS-12 qualifications.
     Band level III minimum eligibility requirements are 
consistent with the GS-14 qualifications.
     Band level IV minimum eligibility requirements are 
consistent with the GS-15 qualifications.
    c. Technician (Pay Plan DX) Career Path: This career path is 
associated with and supportive of a professional field and may involve 
substantial elements of the work of the professional field, but 
requires less than full knowledge of the field involved. It includes 
positions such as Engineering Technician and Electronics Technician. 
Employees in these positions may or may not require specific course 
work or educational degrees. Four broadband levels have been 
established for the Technician career path:
     Band level I minimum eligibility requirements are 
consistent with the GS-01 qualifications.
     Band level II minimum eligibility requirements are 
consistent with the GS-05 qualifications.
     Band level III minimum eligibility requirements are 
consistent with the GS-08 qualifications.
     Band level IV minimum eligibility requirements are 
consistent with the GS-11 qualifications.
    d. Mission Support (Pay Plan DU) Career Path: This career path 
includes positions for which specific course work or educational 
degrees are not required. This career path includes clerical work, that 
usually involves the processing and maintaining of records, as well as 
assistant work, that requires knowledge of methods and procedures 
within a

[[Page 29420]]

specific administrative area. Examples of positions within this career 
path include secretaries, office automation clerks, and budget/program/
computer assistants.
     Band level I minimum eligibility requirements are 
consistent with the GS-01 qualifications.
     Band level II minimum eligibility requirements are 
consistent with the GS-05 qualifications.
     Band level III minimum eligibility requirements are 
consistent with the GS-07 qualifications.
     Band level IV minimum eligibility requirements are 
consistent with the GS-09 qualifications.
    8. Temporary Promotions and Details: JWAC may detail its employees 
to higher broadband level positions and temporarily promote employees 
for up to one year within a 24-month period, with or without 
competition, and may extend such detail or promotion by one additional 
year, similar to the authority adopted by the AFRL in 75 FR 53076, 
August 30, 2010.

B. Pay Setting

    1. Management has authority to establish appropriate basic pay for 
employees converting into or hired by the JWAC--DP. The basic pay of 
newly hired personnel will be at a level consistent with the expected 
contribution of the position. The expected contribution is based on the 
employee's academic qualifications, competencies, and experience, as 
well as the position's scope and level of difficulty. Except for Senior 
Scientific Technical Manager (SSTM) positions, basic pay is limited to 
an amount equal to GS-15, step 10 pay. A demo bonus (a lump sum payment 
made to an employee) may be provided to employees converting into or 
hired by the JWAC-DP. An employee's total monetary compensation paid in 
a calendar year may not exceed the basic rate of pay paid in level I of 
the Executive Schedule consistent with 5 U.S.C. 5307 and 5 CFR part 
530, subpart B. Further details will be published in the IOP.
    2. The JWAC Commander is authorized to approve retention, 
recruitment, and relocation incentives. Unless specifically amended by 
this notice, the eligibility and documentation requirements in 5 CFR 
part 575 remain in effect.
    3. The JWAC Commander may offer a retention counteroffer to retain 
high performing employees with critical scientific or technical skills 
who present evidence of an alternative employment opportunity with 
higher compensation. Such employees may be provided increased base pay 
(up to the ceiling of the pay band) and/or a one-time cash payment that 
does not exceed 50 percent of one year of base pay. Retention 
counteroffers, either in the form of a base pay increase or a bonus, 
count toward the aggregate limitation on pay consistent with 5 U.S.C. 
5307 and 5 CFR part 530, subpart B. Further details will be published 
in the IOP.
    4. Student recruitment is currently limited to the local commuting 
area because college students often cannot afford to temporarily 
relocate to the Dahlgren area while enrolled at schools outside of the 
local commuting area. To expand recruitment to top universities, the 
authority in 5 CFR part 575 is expanded to allow management to pay a 
relocation incentive/bonus each time a student returns to duty to JWAC. 
The PPB will determine the use and the financial limits of this 
incentive. The initial incentive payment may be based on anticipated 
expenses, or a portion thereof. Documentation, to include receipts of 
actual expenses, must be provided by the student to validate initial 
incentive payment and for determining potential future payments. Actual 
expenses may include the cost of airline or other commercial 
transportation, rental vehicles, fuel, and lodging. Management has the 
discretion to determine the appropriate incentive amount, which may or 
may not cover all expenses. Payments may be made incrementally (e.g., 
monthly, quarterly). This authority is not intended to pay moving 
expenses in conjunction with a permanent appointment.
    5. Accelerated Compensation for Developmental Positions (ACDP): The 
JWAC Commander may authorize an increase to basic pay for employees 
participating in training programs, internships, or other development 
capacities. ACDP will be used to recognize development of job related 
competencies as evidenced by successful contribution to the JWAC.
    The use of ACDP is limited to employees in pay bands I and II in 
the Business Management and Professional and S&E career paths. 
Additional guidance will be published in an IOP.
    6. Maintained Pay: The JWAC-DP will eliminate retained grade and 
retained pay and will adopt ``maintained pay'' provisions similar to 
those utilized in AFRL (75 FR 53076). An employee may be entitled to 
maintain the employee's current rate of basic pay if, as a result of 
personnel actions that would entitle the employee to grade or pay 
retention under Title 5, the employee is placed in a payband where the 
employee's current rate of basic pay exceeds the maximum rate of basic 
pay for the pay band. At the time of conversion, an employee on grade 
retention will be converted to the career path and broadband level 
based on the assigned permanent position of record, not the retained 
grade. An employee's adjusted pay will not be reduced upon conversion. 
Implementing instructions will be documented in IOPs.

C. Broadbanding

    JWAC-DP will use a broadbanding approach to compensation and 
classification. A broadbanding structure will simplify the 
classification system, reduce the number of distinctions between levels 
of work, and facilitate delegation of classification authority and 
responsibility to line managers.
    The broadbanding structure replaces the GS structure. Table 1 shows 
the four broadband levels in each career path, labeled I, II, III, IV, 
and the additional broadband level, labeled V, for SSTM positions in 
the S&E career path. The broadband levels are designed to enhance pay 
progression and to allow for more competitive recruitment of quality 
candidates at differing rates within the appropriate broadband 
level(s). Competitive promotions will be less frequent and movement 
through the broadband levels will be a more seamless process. Like the 
broadbanding system used at AFRL, advancement within each band is based 
upon contribution.
    The four distinct career paths within JWAC-DP are: S&E, Business 
Management and Professional, Technician, and Mission Support.
1. S&E (Pay Plan DR)
     Band I includes the current GS-7 through GS-11;
     Band II includes the current GS-12 through GS-13;
     Band III includes the current GS-14;
     Band IV includes the current GS-15;
     Band V SSTM positions above GS-15.
2. Business Management and Professional (Pay Plan DO)
     Band I includes the current GS-7 through GS-11;
     Band II includes the current GS-12 through GS-13;
     Band III includes the current GS-14;
     Band IV includes the current GS-15.
3. Technician (Pay Plan DX)
     Band I includes the current GS-1 through GS-4;
     Band II includes the current GS-5 through GS-7;

[[Page 29421]]

     Band III includes the current GS-8 through GS-10;
     Band IV includes the current GS-11 through GS-12.
4. Mission Support (Pay Plan DU)
     Band I includes the current GS-1 through GS-4;
     Band II includes the current GS-5 through GS-6;
     Band III includes the current GS-7 through GS-8;
     Band IV includes the current GS-9 through GS-10.
    Comparison to the GS grades was useful in setting the upper and 
lower dollar limits of the broadband system; however, once employees 
are converted or hired into the JWAC-DP, GS grades and steps no longer 
apply.
[GRAPHIC] [TIFF OMITTED] TN15MY20.002

    The JWAC-DP will use the authority in title 10 U.S.C. 2358a to 
expand the S&E career path to include a broadband level V. This 
broadband level is designed for SSTM positions, the primary functions 
of which are: (1) To engage in research and development in the 
physical, biological, medical, or engineering sciences, or another 
field closely related to the JWAC mission; and (2) to carry out 
technical supervisory responsibilities. The SSTM positions will be 
similar to those described in 79 FR 43722. Panels will be created to 
assist in filling SSTM positions. Panel makeup will be included in the 
IOPs. The panel will apply criteria developed largely from the current 
OPM Research Grade Evaluation Guide for positions exceeding the GS-15 
level. Vacant SSTM positions will be competitively filled to ensure 
that selectees are preeminent researchers and technical leaders in the 
specialty fields who also possess substantial managerial and 
supervisory abilities.
    Upon the implementation of the JWAC-DP, and periodically 
thereafter, the JWAC Commander will review organizational and mission 
requirements, and where appropriate, may modify the duties of existing 
SSTM positions and/or the total number of SSTM positions. Consistent 
with 10 U.S.C. 2358a, the total number of SSTM positions may not exceed 
two percent of the number of scientists and engineers employed at the 
JWAC as of the close of the last fiscal year before the fiscal year in 
which any additional appointments are made. The minimum basic pay for 
SSTM positions is 120 percent of the minimum rate of basic pay for GS-
15. Maximum SSTM basic pay with locality pay is limited to Executive 
Level III (EX-III), and maximum salary without locality pay may not 
exceed EX-IV. The contribution management system used to evaluate an 
SSTM employee will be documented in the JWAC IOPs.

D. Classification

1. Statement of Duties and Experience (SDE)
    Under the JWAC-DP's simplified classification system, the SDE 
replaces the DAF Form 1003 Air Force Core Personnel Document (CPD). The 
SDE includes a description of position-specific information; identifies 
the career path, occupational series and broadband level; includes the 
factors and descriptors for the assigned career path and broadband 
level; and provides data element information pertinent to the position.
2. Occupational Series
    The present system of OPM classification standards is used for the 
identification of proper series and occupational titles of positions 
within the JWAC-DP. The OPM occupational series scheme, which 
frequently provides well-recognized disciplines with which employees 
are to be identified, is maintained and facilitates movement of 
personnel into and out of the JWAC-DP. Other series may be added as the 
need for new competencies emerges within the JWAC environment.
3. Classification Factors and Descriptors
    Current OPM Position Classification Standards will not be used to 
grade positions in the JWAC-DP. JWAC's factors and descriptors will 
describe the level of work expected for each broadband level in each 
career path. The AFRL classification factors and descriptors published 
in 75 FR 5076, August 30, 2010, and OPM classification guidance will be 
used as a framework to develop JWAC specific factors and descriptors 
(see Appendix B). The JWAC-DP factors and descriptors will also be used 
for the annual Compensation-based Contribution System (CCS) employee 
assessments (Section III., E. 3). Factors and descriptors will be 
documented in JWAC IOPs.
4. Classification Authority
    The JWAC Commander will have classification authority and may, in-
turn, re-delegate this authority to appropriate levels. HR Specialists 
will provide ongoing consultation and guidance to managers and 
supervisors throughout the classification process. The final 
classification decision will be documented on the SDE.
5. Classification Process
    The SDE is developed using the following process:
    a. The supervisor identifies the organizational location, SDE 
number, and the employee's name. The supervisor selects the appropriate 
occupational series, pay plan, broadband level, and title; the level 
factor descriptors corresponding to the broadband level that is most 
commensurate with the level of contribution necessary to accomplish the 
duties and responsibilities of the position; and the Defense Civilian 
Personnel Data System (DCPDS) supervisory level. The classification 
system is not hierarchical, meaning that a supervisor's broadband level 
is based on the contributions the employee has made to the 
organization, and not based on the broadband level of subordinate

[[Page 29422]]

employees, as is typical under other personnel systems. Therefore, 
supervisors may be at the same, lower, or higher broadband level than 
the employees they supervise.
    b. The supervisor selects a brief description of the primary 
purpose of the position making sure the description is consistent with 
the series and title chosen for the position. The supervisor chooses 
statements pertaining to physical requirements; competencies required 
to perform the work; and special licenses or certifications needed. 
Based on the supervisory level of the position, the system produces 
mandatory statements pertaining to affirmative employment, safety, and 
security programs.
    c. The supervisor selects other position data, such as position 
sensitivity and drug testing requirements. The supervisor also selects 
the Fair Labor Standards Act (FLSA) status. The FLSA status selection 
must be in accordance with OPM guidance and HR Specialists may advise 
management as necessary. The data elements are maintained as a separate 
page of the SDE (i.e., an addendum) and may be changed as needed, 
without creating and classifying a new SDE.
    d. The supervisor makes a recommended classification, then signs 
and dates the document. The supervisor sends the SDE to the 
classification authority for classification. The classification is 
finalized when the classification official signs and dates the SDE. The 
SDE development process incorporates definitions for the CCS 
supervisory levels, and occupational series as appropriate.

E. Contribution-Based Compensation System (CCS)

1. Overview
    The CCS is a contribution-based assessment system that goes beyond 
a performance-based rating system. The CCS measures the employee's 
contribution to the organization's mission, the contribution level, and 
how well the employee performed a job. Contribution is defined as the 
measure of the demonstrated value of what an employee did in terms of 
accomplishing or advancing the organizational objectives and mission 
impact. The purpose of the CCS is to provide an effective, efficient, 
and flexible method for assessing, compensating, and managing the JWAC 
workforce. It is essential for the development of a highly productive 
workforce and to provide management, at the lowest practical level, the 
authority, control, and flexibility needed to achieve a quality 
laboratory and quality products. The CCS allows for more employee 
involvement in the assessment process, increases communication between 
supervisors and employees, promotes a clear accountability of 
contribution, facilitates employee career progression, provides an 
understandable basis for basic pay changes, and delinks awards from the 
annual assessment process. The CCS process described herein applies to 
broadband levels I through IV. The assessment process for broadband 
level V positions will be documented in the JWAC IOPs.
2. Factors and Descriptors
    Each factor (e.g., Communication, Technology/Business Management, 
Problem Solving, and Teamwork/Leadership) has descriptors that describe 
increasing levels of contribution corresponding to each broadband 
level. The same factors and descriptors will be used for classification 
and for the annual CCS employee assessments. The factors and 
descriptors for the appropriate career path will be used by the rating 
official to determine the employee's overall contribution score (OCS). 
Employees can score within, above, or below the range for their 
broadband level. For example, a broadband level II employee could score 
in the broadband level I, II, III, or IV range. Therefore, supervisors 
utilize all factors and descriptors to determine each employee's 
contribution assessment.
3. CCS Assessment Scoring
    The annual CCS assessment scoring process begins with employee 
input, which provides employees with an opportunity to communicate 
their accomplishments and level of contribution to their supervisors. 
An employee's basic pay determines an expected score when plotted on 
the appropriate career path Standard Pay Line (SPL) (discussed in 
section III.E.4).
    Each career path has its own SPL based on the salary range 
established for that career path. Scores have a direct relationship 
with basic pay; therefore, the significance of an employee's actual 
score is not known until it is compared to their expected score. For 
instance, an employee in the Mission Support career path with a basic 
pay rate of $33,091 in 2018 would have an expected score of 2.25, while 
an employee in the Business Management and Professional career path 
with a basic pay rate of $74,705 would have the same expected score. 
The comparison between expected score and OCS provides an indication of 
equitable compensation, under-compensation, or overcompensation. 
(Typically, employees who are overcompensated are not meeting 
contribution expectations and may be placed on a Contribution 
Improvement Plan, described in further detail in section III.F.) 
Broadband levels in each career path have the same expected score 
range, as depicted in Table 2 below, which also includes the 2018 basic 
pay ranges for each broadband level. As the general basic pay rates 
increase annually, the minimum and maximum basic pay rates of each 
broadband level for each career path are adjusted accordingly. 
Individual employees receive basic pay increases and/or bonuses based 
on the annual assessments under the CCS. There are no changes to title 
5 U.S.C., regarding locality pay under the JWAC-DP.
BILLING CODE 5001-06-P

[[Page 29423]]

[GRAPHIC] [TIFF OMITTED] TN15MY20.003

4. Standard Pay Line (SPL)
    A mathematical relationship between assessed contribution and basic 
pay will be used to create the SPLs for each career path used in the 
CCS, similar to the formulas adopted by AFRL in 75 FR 53076, dated 
August 30, 2010. The SPL is a straight line which yields a reasonable 
correlation between basic pay rates in the broadband levels and those 
of the corresponding GS grade(s); provides a single relationship 
(equation) for the entire range of pay and OCS; and demonstrates 
equitable (i.e., consistent) growth at each CCS score.
    The JWAC equation for the 2018 S&E (DR) and the Business Management 
and Professional (DO) SPL is BASIC PAY = $21,011 + ($23,864 x CCS 
SCORE). Figure 1 provides a pictorial representation of the 2018 DR & 
DO SPL.

[[Page 29424]]

[GRAPHIC] [TIFF OMITTED] TN15MY20.004

    The JWAC equation for the 2018 Mission Support (DU) SPL is BASIC 
PAY = $7,353 + ($11,439 x CCS SCORE), and JWAC equation for the 2018 
Technician (DX) SPL is BASIC PAY = $2,183 + ($16,611 x CCS SCORE); as 
shown in Figures 2 and 3. The equations for future JWAC SPLs may be 
modified consistent with this notice and the IOP.
[GRAPHIC] [TIFF OMITTED] TN15MY20.005


[[Page 29425]]


[GRAPHIC] [TIFF OMITTED] TN15MY20.006

BILLING CODE 5001-06-C
5. The CCS Assessment Process
    The rating official is the first-level supervisor of record for at 
least 90 days during the rating cycle. If the current immediate 
supervisor has been in place for less than 90 days during the rating 
cycle, the next higher level supervisor in the employee's rating chain 
who has been in place for more than 90 days during the rating cycle 
conducts the assessment.
    The annual assessment cycle begins on September 1 and ends on 
August 31 of the following year. At the beginning of the annual 
assessment period, the broadband level factors and descriptors are 
provided to employees setting forth the basis on which their 
contribution is assessed.
    A midyear review, in the February to March timeframe, is conducted 
for employees. During this review the employee's professional 
qualities, competence, developmental needs, and mission contribution 
are discussed, as well as future development and career opportunities. 
Additionally, employees provide feedback to supervisors on their 
supervisory qualities and skills. To highlight its importance, all 
feedback sessions are certified as completed by the rating official 
conducting the feedback session. While one documented formal midyear 
feedback session is required, supervisors are encouraged to conduct 
informal feedback sessions throughout the rating period. The preferable 
method for all feedback sessions is face-to-face.
    At the end of the annual assessment period, employees summarize 
their contributions in each factor for their rating official. Employees 
are highly encouraged to submit written self-assessments identified to 
management, to ensure that all of the employee's contributions 
accomplished during the rating cycle are taken into consideration. The 
rating official first determines preliminary CCS scores using the 
employee's input and the rating official's assessment of the employee's 
overall contribution to the laboratory mission, based on the 
appropriate broadband level factor descriptor. The preliminary score is 
determined by comparing an employee's contribution results to the 
descriptors for a particular factor and selecting the most appropriate 
general range (e.g., high, medium, or low).
    The rating officials (e.g., branch chiefs) and the next level 
supervisors (e.g., the respective division chief) then meet as a group 
(e.g., first-level Meeting of Managers (MoM)) to review and discuss all 
proposed employee assessments and preliminary CCS factor scores. Giving 
authority to the group of managers to determine CCS factor scores 
ensures that contributions are assessed and measured similarly for all 
employees. During the MoM, the preliminary factor scores are further 
refined into decimal scores. For example, if the employee's 
contribution level for a factor is at the lowest level of broadband 
level I, a factor score of 1.0 is assigned. Higher levels of 
contribution are assigned factor scores increasing in 0.1 increments up 
to 4.9. A factor score of 0.0 can be assigned if the employee does not 
demonstrate a minimum broadband level I contribution. Likewise, a 
factor score of 5.9 can be assigned if an employee demonstrates a 
contribution that exceeds the broadband level IV descriptor. Rating 
officials must document justification for each proposed factor score.
    Factor scores are then averaged to give an overall CCS score (OCS). 
Each broadband level is defined for OCS from 0.75 to 5.25 as shown in 
Table 2. The maximum OCS for broadband level IV is set at 5.25, to be 
consistent with the maximum overall CCS scores for other broadband 
levels (4.25 for broadband level III, 3.25 for broadband level II, and 
2.25 for broadband level I). Therefore, when the average of CCS factor 
scores exceeds 5.25, the overall CCS score is set to 5.25, and the 
employee who was scored above 5.25 will be identified to upper 
management as having exceeded the maximum contribution defined by the 
broadband. The maximum basic pay for each broadband is the basic pay 
corresponding with an X.25 OCS (i.e., 2.25, 3.25, 4.25, and 5.25). Once 
the scores have been finalized, the pay pool manager approves the 
scores for the entire pay pool. The pay pool manager has the ability to 
look across the entire pay pool and may address anomalies

[[Page 29426]]

through the appropriate management chain.
    If, on September 1, an employee has been covered by the CCS for 
less than 90 days, the rating official waits for the subsequent annual 
cycle to assess the employee. Such an employee is considered 
``presumptive due to time'' and is assigned a score at the intersection 
of their basic pay and the SPL. Periods of approved, paid leave are 
counted toward this 90-day time period. When an employee cannot be 
evaluated readily by the normal CCS assessment process due to special 
circumstances that take the employee away from normal duties or duty 
station (e.g., long-term full-time training, extended sick leave, leave 
without pay, etc.), the rating official documents the rating as 
``presumptive due to circumstance'' in the CCS software. The rating 
official then assesses the employee using one of the following options:
     Recertify the employee's last OCS; or
     Assign a score at the intersection of the employee's basic 
pay and the SPL.
    Basic pay adjustments, i.e., decisions to give or withhold basic 
pay increases or bonuses, are based on the relationship between the 
employee's actual CCS score and the employee's current basic pay (as 
discussed in section III.E.5). Decisions for seamless broadband 
movement (discussed in section III.E.6.) are also based on this 
relationship. Final pay determinations and broadband level changes are 
made by the pay pool manager.
6. Pay Pools
    The pay pool structure is under the authority of the JWAC Commander 
who, in-turn, may delegate this authority. The following guidelines 
apply to pay pools: (a) A pay pool is based on the JWAC organizational 
structure and should include a range of basic pay rates and broadband 
levels; (b) a pay pool must be large enough to constitute a reasonable 
statistical sample, i.e., 35 or more employees; (c) a pay pool must be 
large enough to encompass a second level of supervision since the CCS 
process uses a group of supervisors in the pay pool to determine 
assessments and recommend basic pay adjustments; (d) the pay pool 
manager holds annual pay adjustment authority; and (e) neither the pay 
pool manager nor the supervisors within the pay pool recommend or set 
their own individual pay.
    The amount of money available for basic pay increases within a pay 
pool is determined by the amount of the general increase (``G'') 
authorized by law or the President for the GS under 5 U.S.C. 5303, and 
an incentive amount (``I'') drawn from money that, under the GS system, 
would be available for step increases and career ladder promotions. The 
incentive amount is set by the PPB each year and is adjustable to 
ensure cost discipline over the life of the JWAC-DP. The dollars 
derived from ``G'' and ``I'' percentages included in the pay pool are 
computed based on the basic pay of eligible employees in the pay pool 
as of August 31 of each year. The Under Secretary of Defense (Personnel 
& Readiness) has discretion to adjust the minimum funding levels to 
take into account factors such as the Department's fiscal condition, 
guidance from the Office of Management and Budget, and equity in 
circumstances when funding is reduced or eliminated for GS pay raises 
or awards.
7. Basic Pay Adjustment Guidelines
    The maximum basic pay for any employee is limited to GS-15, step 
10, except for employees in SSTM positions. Any employee whose basic 
pay would exceed GS-15, step 10, based on the employee's OCS, will be 
identified to upper management as having exceeded the maximum allowable 
basic pay and will be paid a bonus to cover any difference between the 
GS-15, step 10, basic pay and the basic pay associated with the 
employee's OCS. There are no changes to 5 U.S.C., regarding locality 
pay under the JWAC-DP.
    Employees' OCSs are determined by the CCS assessment process 
described in Section III.E.3. Employees' OCSs are plotted on the 
appropriate SPL graph based on their current basic pay as shown in 
Figure 5. The position of those points in relation to the SPL provides 
a relative measure (Delta Y) of the degree of over-compensation or 
under-compensation for each employee. This process permits all 
employees within a pay pool to be rank-ordered by Delta Y, from the 
most undercompensated employee to the most overcompensated.

[[Page 29427]]

[GRAPHIC] [TIFF OMITTED] TN15MY20.007

    In general, those employees who fall below the SPL (indicating 
under-compensation; for example, employee X in Figure 5) should expect 
to receive greater basic pay increases than those who fall above the 
line (indicating overcompensation; for example, employee Z in Figure 
5). An OCS that falls on either rail is considered to be within the 
rails. Over time, employees will migrate closer to the SPL. The 
following provides more specific guidelines: (a) Employees who fall 
above the upper rail (for example, employee Z in Figure 5) are given an 
increase ranging from zero to a maximum of the dollar amount determined 
by the ``G'' percentage increase; (b) those who fall within the rails 
(for example, employee Y in Figure 5) are given a minimum of the dollar 
amount determined by the ``G'' percentage increase; and (c) those who 
fall below the lower rail (for example, employee X in Figure 5) are 
given at least their basic pay multiplied by ``G'' and ``I'' 
percentages. The pay pool manager may give a CCS bonus (a lump sum 
payment made to an employee in lieu of a basic pay increase as part of 
the CCS assessment process) to an employee as compensation, in whole or 
part. This may be appropriate in a situation when the employee's 
continued contribution at this level is uncertain. The CCS Bonus 
criteria will be documented in JWAC IOPs.
    The pay pool manager sets the necessary guidelines for pay 
adjustments in the pay pool based on guidance from the PPB. Decisions 
will be consistent in the pay pool within these general rules: final 
decisions are standard and consistent within the pay pool; are fair and 
equitable across the organization; and maintain cost discipline.
8. Broadband Level Movements
    A key concept of the JWAC-DP is that career growth may be 
accomplished by seamless broadband movement, i.e., movement through the 
broadband levels within a particular career path by significantly 
increasing levels of employee contribution toward the JWAC mission. 
Seamless broadband level movement may occur once a year during the CCS 
process, if certain conditions are met. An employee's contribution is a 
reflection of their OCS, which is derived from a comparison of the 
employee's contribution to each of the factors and descriptors. Because 
the descriptors are written at progressively higher levels of work and 
are the same descriptors used in the classification process, higher 
scores reflect that an employee's contribution is equivalent to the 
level associated with the score they are awarded. An employee's 
broadband level may be increased when an employee consistently 
contributes at a level consistent with the expectations for a higher 
broadband level than the one to which the employee is currently 
assigned, such as through increased expertise and by performing 
expanded duties and responsibilities commensurate with the higher 
broadband level factor and descriptors. If an employee's contributions 
impact and broaden the scope, nature, intent, and expectations of the 
position and are reflective of higher level factors and descriptors, 
the classification of the position is updated accordingly. This form of 
movement through broadband levels is referred to as a seamless 
broadband movement and can only happen within the same career path; 
employees cannot cross over career paths through this process. The 
criteria is similar to that used in an accretion of duties scenario and 
must be met for an employee to move seamlessly to a higher broadband 
level. For seamless broadband movement to occur: (1) The employee's 
current position must be absorbed into a reclassified position, while 
the employee continues to perform the same basic duties and 
responsibilities (although at the higher level); and (2) the employee's 
current position must be reclassified to a higher broadband level as a 
result of additional, higher- level duties and responsibilities. It may 
take a number of years for contribution levels to increase to the 
extent a seamless broadband movement is warranted, and not all 
employees achieve the increased contribution levels required for such 
moves.
    This simplified classification and broadbanding structure allows 
management to assign duties consistent with the broadband level of a 
position without the necessity to process a personnel action and 
provides managers

[[Page 29428]]

authority to move employees between positions within their current 
broadband level, at any time during the year. However, management also 
has the option to fill vacancies throughout the year using various 
staffing alternatives, to include details, reassignments, or 
competitive selection procedures (as applicable and/or required) for 
competitive promotions or temporary promotions (typically used for 
filling supervisory positions). Employees may be considered for 
vacancies at higher broadband level positions consistent with the JWAC-
DP competitive selection procedures.
    Any resulting changes in broadband levels that occur through the 
CCS process are not accompanied by pay increases normally associated 
with formal promotion actions, but, rather, are processed and 
documented with a pay adjustment action to include appropriate changes/
remarks (e.g., change in title (if appropriate), change in broadband 
level, and classification of a new SDE). The terms ``promotion'' and 
``demotion'' are not used in connection with the CCS process.
    The broadbanding structure creates an overlap between adjacent 
broadband levels that facilitates broadband movement. For instance, the 
minimum basic pay for a broadband level I is that basic pay from the 
SPL corresponding to a CCS score of 0.75. And the maximum basic pay for 
broadband level I is that basic pay from the SPL corresponding to a CCS 
score of 2.25. The minimum basic pay for broadband level II is that 
basic pay from the SPL corresponding to a CCS score of 1.75. And the 
maximum basic pay for broadband level II is that basic pay from the SPL 
corresponding to a CCS score of 3.25. Likewise, the minimum basic pay 
for broadband level III is that basic pay from the SPL corresponding to 
a CCS score of 2.75, and so on for the different broadband levels. This 
structure provides a basic pay overlap between broadband levels that is 
consistent with, and similar to, basic pay overlaps in the GS schedule.
9. Voluntary Pay Reduction and Pay Raise Declination
    Under CCS, an employee may voluntarily request a pay reduction or a 
voluntary declination of a pay raise which would effectively place an 
overcompensated employee's pay closer to the SPL. Since an objective of 
the CCS is to properly compensate employees for their contribution to 
the JWAC, granting such requests is consistent with this goal. Under 
normal circumstances, all employees should be encouraged to advance 
their careers through increasing contribution rather than being 
undercompensated at a fixed level of contribution.
    To handle these special circumstances, employees must submit a 
request for voluntary pay reduction or pay raise declination during the 
30-day period immediately following the annual payout and document the 
reasons for the request. The pay pool manager may consider voluntary 
pay reductions at other times throughout the year, as documented in 
internal operating procedures. Management must properly document all 
decisions to approve or disapprove such requests. This type of basic 
pay change is not considered to be an adverse personnel action.

F. Dealing With Inadequate Contributions

    The CCS is a contribution-based assessment system that goes beyond 
a performance-based rating system. Contribution is measured against 
factors, with each factor having descriptors that describe increasing 
levels of contribution corresponding to the broadband level. Employees 
are plotted against the SPL based on their score and current basic pay, 
which determines the amount of over-compensation or under compensation 
the employees are receiving. When an employee's contribution plots in 
the area above the upper rail of the SPL (Section III.E.3.), the 
employee is overcompensated for their level of contribution and is 
considered to be in the Automatic Attention Zone (AAZ).
    This section addresses reduction in pay or removal of JWAC-DP 
employees based solely on inadequate contribution, as determined by the 
amount an employee is overcompensated. The following procedures are 
similar to and replace those established in 5 CFR part 432 pertaining 
to performance-based reduction in grade and removal actions. Adverse 
action procedures under 5 CFR part 752 remain unchanged. The immediate 
supervisor has two options when an employee's contribution plots in the 
AAZ. The first option is document the employee's inadequate 
contributions in a memorandum for record. In this memorandum, the 
supervisor should state, in writing, the specifics regarding where the 
employee failed to contribute at an adequate level and provide a 
rationale for not taking a formal action. Examples where this might be 
used are when an employee's contribution plots just above the upper 
rail of the SPL, or extenuating circumstances exist that may have 
decreased the employee's overall CCS score during the rating period and 
are expected to be temporary in nature. A copy of this memorandum is 
provided to the employee and to higher levels of management.
    The second option is to take a formal action by placing the 
employee on a Contribution Improvement Plan (CIP), providing the 
employee an opportunity to improve. The CIP must inform the employee, 
in writing, that unless the employee's contribution increases and is 
sustained at the expected contribution level, the employee may be 
reduced in pay or removed. The supervisor will afford the employee a 
reasonable improvement opportunity period, generally 30 days, to 
demonstrate increased contribution commensurate with the duties and 
responsibilities of the employee's position. As part of an employee's 
opportunity to demonstrate increased contribution, management will 
offer appropriate assistance to the employee.
    If an employee has been placed on a CIP and afforded a reasonable 
opportunity to demonstrate increased contribution, yet fails to do so, 
management has sole and exclusive discretion to initiate reduction in 
pay or removal for that employee. If the employee's contribution 
increases to a higher level during the opportunity period and is again 
determined to deteriorate in any area within two years from the 
beginning of the improvement opportunity period, management has sole 
and exclusive discretion to initiate a reduction in pay or removal with 
no additional opportunity to improve. If an employee has contributed 
appropriately for two years (or longer) from the beginning of an 
improvement opportunity period and the employee's overall contribution 
once again declines, management will afford the employee an additional 
improvement opportunity period to demonstrate increased contribution 
before determining whether or not to propose a reduction in pay or 
removal.
    An employee is entitled to at least a 30-day advance notice of a 
proposed reduction in pay or removal action. This advanced notice will 
identify specific instances of the employee's inadequate contribution. 
The employee will be afforded a reasonable time (as stated in 5 U.S.C. 
7513(b)(2)), but not less than seven days, to answer the notice of 
proposed action, which may be done orally and/or in writing, at the 
employee's discretion.
    A decision to reduce pay or remove an employee for inadequate 
contribution may only be based on those instances of inadequate 
contribution that occurred during the two-year period immediately 
preceding the date of the notice of proposed action is

[[Page 29429]]

issued. Management will issue a written notice of its decision on 
reduction in pay or removal to the employee at or before the time the 
action will be effective. This notice will specify the instances of 
inadequate contribution by the employee on which the action is based 
and will inform the employee of any applicable appeal or grievance 
rights as specified in 5 CFR 432.106.
    Management will preserve all relevant documentation concerning a 
reduction in pay or removal based on inadequate contribution and make 
the relevant documentation available for review by the affected 
employee and/or the employee's designated representative. At a minimum, 
the documentation will consist of a copy of the notice of proposed 
action; the employee's written answer or a written summary of the 
employee's oral reply; and the written notice of decision to take the 
action, including the reasons therefore, along with any supporting 
material including documentation regarding the opportunity afforded the 
employee to demonstrate increased contribution.

G. Voluntary Emeritus Corps

    The JWAC Commander has the authority to offer former Federal 
employees who have retired or separated from the Federal service, 
voluntary assignments at JWAC. Voluntary Emeritus Corps assignments are 
not considered ``employment'' by the Federal government (except as 
indicated below). Thus, such assignments do not affect an employee's 
entitlement to buyouts or severance payments based on an earlier 
separation from Federal service. The Volunteer Emeritus Corps will 
ensure continued quality research while reducing the overall salary 
line by allowing higher paid individuals to accept retirement 
incentives with the opportunity to retain a presence in the scientific 
community. This authority will be of most benefit during manpower 
reductions as senior employees could accept retirement and return to 
provide valuable on-the-job training or mentoring to less experienced 
employees. Volunteer service will not be used to replace any employee, 
or interfere with career opportunities of employees. The Volunteer 
Emeritus Corps may not be used to replace or substitute for work 
performed by civilian employees occupying regular positions required to 
perform the JWAC's mission.
    To be accepted into the Volunteer Emeritus Corps, a volunteer must 
be recommended by a JWAC manager to the JWAC Commander. Everyone who 
applies is not entitled to a volunteer assignment. The JWAC Commander 
will document the decision process for each candidate and retain 
selection and non-selection documentation for the duration of the 
assignment or two years, whichever is longer.
    To ensure success and encourage participation, the volunteer's 
federal retirement pay (whether military or civilian) will not be 
affected while serving in a volunteer capacity. Retired or separated 
federal employees may accept an emeritus position without a break or 
mandatory waiting period.
    Volunteers will not be permitted to monitor contracts on behalf of 
the government or to participate on any contracts or solicitations 
where a conflict of interest exists. The same rules that currently 
apply to source selection members will apply to volunteers.
    An agreement will be established between the volunteer, the JWAC 
Commander, and the JWAC/J1. The agreement will be reviewed by the 
USSTRATCOM Legal Office. The agreement must be finalized before the 
assumption of duties and will include:
    a. A statement that the service provided is gratuitous, that the 
volunteer assignment does not constitute an appointment in the civil 
service and is without compensation or other benefits except as 
provided for in the agreement itself, and that, except as provided in 
the agreement regarding work-related injury compensation, any and all 
claims against the Government (stemming from or in connection with the 
volunteer assignment) are waived by the volunteer;
    b. A statement that the volunteer will be considered a federal 
employee for the purpose of:
    (1) 18 U.S.C. 201, 203, 205, 207, 208, 209, 603, 606, 607, 643, 
654, 1905, and 1913;
    (2) 31 U.S.C. 1343, 1344, and 1349(b);
    (3) 5 U.S.C. chapters 73 and 81;
    (4) The Ethics in Government Act of 1978;
    (5) 41 U.S.C. chapter 21;
    (6) 28 U.S.C. chapter 171 (tort claims procedure), and any other 
Federal tort liability statute;
    (7) 5 U.S.C. 552a (records maintained on individuals); and
    c. The Volunteer Emeritus/Corps participant's work schedule;
    d. The length of agreement (defined by length of project or time 
defined by weeks, months, or years);
    e. The support to be provided by the JWAC (travel, administrative, 
office space, supplies);
    f. The Volunteer Emeritus Corps participant's duties,
    g. A provision that states no additional time will be added to a 
participant's service credit for such purposes as retirement, severance 
pay, and leave as a result of being a participant in the Volunteer 
Emeritus Corps,
    h. A provision allowing either party to void the agreement with 10 
working days written notice;
    i. The level of security access required (any security clearance 
required by the assignment will be managed by the JWAC while the 
participant is a member of the Volunteer Emeritus Corps);
    j. A provision that any written products prepared for publication 
that are related to Volunteer Emeritus Corps participation will be 
submitted to the JWAC Commander for review and must be approved prior 
to publication;
    k. A statement that the Volunteer Emeritus Corps participant 
accepts accountability for loss or damage to Government property 
occasioned by the Volunteer Emeritus Corps participant's negligence or 
willful action;
    1. A statement that the activities of the Volunteer Emeritus Corps 
participant on the premises will conform to the JWAC's regulations and 
requirements;
    m. A statement that the Volunteer Emeritus Corps participant will 
not improperly use or disclose any non-public information, to include 
any pre-decisional or draft deliberative information related to DoD 
programming, budgeting, resourcing, acquisition, procurement or other 
matter, for the benefit or advantage of the Volunteer Emeritus Corps 
participant or any non-Federal entities. Volunteer Emeritus Corps 
participants will handle all non-public information in a manner that 
reduces the possibility of improper disclosure;
    n. A statement that the Volunteer Emeritus Corps participant agrees 
to disclose any inventions made in the course of work performed at the 
JWAC. The JWAC Commander will have the option to obtain title to any 
such invention on behalf of the U.S. Government. Should the JWAC 
Commander elect not to take title, the JWAC will retain a non-
exclusive, irrevocable, paid up, royalty-free license to practice or 
have practiced the invention worldwide on behalf of the U.S. 
Government;
    o. A statement that the Volunteer Emeritus Corps participant must 
complete either a Confidential or Public Financial Disclosure Report, 
whichever applies, and ethics training in accordance with office of 
Government Ethics regulations prior to implementation of the agreement; 
and
    p. A statement that the Volunteer Emeritus Corps participant must 
receive

[[Page 29430]]

post-government employment advice from a DoD ethics counselor at the 
conclusion of program participation. Volunteer Emeritus Program 
participants are deemed Federal employees for purposes of post-
government employment restrictions.

H. Employee Development

    1. Training for Degrees: degree training is an essential component 
of an organization that requires continuous acquisition of advanced and 
specialized knowledge. Degree training in the academic environment of 
laboratories is also a critical tool for recruiting and retaining 
employees with critical skills. Constraints under current law and 
regulation limit degree payment to shortage occupations. In addition, 
current government-wide regulations authorize payment for degrees based 
only on recruitment or retention needs. Degree payment is currently not 
permitted for non-shortage occupations involving critical skills.
    Under the JWAC-DP, JWAC will expand the authority to provide degree 
training for purposes of meeting critical skill requirements, to ensure 
continuous acquisition of advanced and specialized knowledge essential 
to the organization, and to recruit and retain personnel critical to 
the present and future requirements of the organization. It is expected 
that the degree payment authority will be used primarily for attainment 
of advanced degrees.
    2. Sabbaticals: JWAC will have the authority to grant paid 
sabbaticals to career employees to permit them to engage in study or 
uncompensated work experience that will contribute to their development 
and effectiveness. Each sabbatical should benefit JWAC as well as 
increase the employee's individual effectiveness. Examples are as 
follows: advanced academic teaching, study, or research; self-directed 
(independent) or guided study; and on-the-job work experience with a 
public, private, or nonprofit organization. Each recipient of a 
sabbatical must sign a continued service agreement and agree to serve a 
period equal to at least three times the length of the sabbatical.

IV. JWAC--DP Training

    The key to the success of the JWAC-DP will be the training provided 
for all involved. This training format and content will provide the 
workforce with the knowledge and skills necessary to implement the 
proposed changes and foster participant commitment to the program
    Training, which will begin prior to implementation and continue 
throughout the JWAC-DP, will be tailored to the needs of supervisors, 
employees, and the administrative staff responsible for assisting 
managers in effecting the changeover and operating the new system. At a 
minimum, the following subjects will be covered:
     An overview of the JWAC-DP personnel system.
     How employees are converted into and out of the system.
     Broadbanding.
     The Contribution-based Compensation System.

V. Conversion

A. Conversion to the Demonstration Project

    Initial entry into the JWAC-DP for covered employees is 
accomplished through a full employee protection approach that ensures 
each employee an initial place in the appropriate broadband level 
without loss of pay. Employees are converted into the career path and 
broadband level which corresponds to their permanent GS grade and 
occupational series of their current appointment (temporary promotions 
are not retained), unless there are extenuating circumstances which 
require individual attention, such as special pay rates or pay 
retention. Adverse action provisions do not apply to the conversion 
process as there is no change in total adjusted pay.
    Under the GS pay structure, successful employees automatically 
progress, from step 1 to 10, within grade, in periodic increments. In 
the JWAC-DP, basic pay progression within and through the broadband 
levels depends on contribution to the mission, and there are no 
automatic within-grade increases (WGIs). Rules governing WGIs under the 
current DAF performance plan will continue in effect until the 
implementation date. Adjustments to the employees' basic pay for WGI 
equity will be computed effective the date of conversion to the JWAC-
DP. WGI equity is acknowledged by increasing basic pay rates by a 
prorated share based upon the number of days the employee has performed 
at a successful level for purposes of eligibility for the next higher 
step under the GS system. Employees at step 10 on the date of 
conversion are not eligible for WGI equity adjustments since they are 
already at the top step of the corresponding GS pay grade.
    All employees are eligible for future locality pay increases for 
the geographical areas of their official duty station. Special salary 
rates are not applicable to JWAC-DP employees. Employees on special 
salary rates at the time of conversion receive a new basic pay rate 
which is computed by dividing their highest adjusted basic pay (i.e., 
special pay rate or, if higher, the locality rate) by one plus the 
locality pay percentage for their area. The new basic pay rate is then 
multiplied by the locality pay percentage and the result is added to 
the new basic pay rate to obtain the adjusted basic pay, which is equal 
to the adjusted basic pay prior to conversion.
    Grade and pay retention entitlements are eliminated. At the time of 
conversion, an employee on grade retention will be converted to the 
career path and broadband level based on the employee's assigned 
position, not the retained grade. The employee's basic pay and adjusted 
basic pay while on grade retention status will be used in setting 
appropriate pay upon conversion to the JWAC-DP and in determining the 
amount of any WGI equity adjustment. An employee's adjusted basic pay 
will not be reduced upon conversion.

B. Conversion to Another Personnel System

1. Demonstration Project Termination
    In the event the JWAC-DP ends, a conversion back to the former (or 
another applicable) Federal Civil Service system may be required. The 
grade of employees' positions in the new system will be based upon the 
position classification criteria of the gaining system. Employees, when 
converted to positions classified under the new system, may be eligible 
for pay retention under 5 CFR part 536, if applicable.
    However, an employee will not be provided a lower grade than the 
grade held by the employee immediately preceding conversion, lateral 
reassignment, or lateral transfer into the JWAC-DP, unless since that 
time the employee has undergone either a reduction in broadband level 
or a reduction in basic pay within the same broadband due to 
unacceptable contribution.
2. Conversion or Movement from a Project Position to a General Schedule 
Position:
    If a demonstration project employee is moving to a GS position not 
under the demonstration project, or if the project ends and all project 
employees must be converted back to the GS system, the following 
procedures will be used to convert the employee's broadband level to a 
GS-equivalent grade and the employee's JWAC-DP basic pay to the GS-
equivalent rate of pay for pay setting purposes. The equivalent GS 
grade and GS rate of pay must be determined

[[Page 29431]]

before movement or conversion out of the JWAC-DP and any accompanying 
geographic movement, promotion, or other simultaneous action.
    An employee in a broadband level corresponding to a single GS grade 
is placed into that grade as the GS-equivalent grade. An employee in a 
broadband corresponding to two or more grades is determined to have a 
GS equivalent grade corresponding to one of those grades according to 
the following rules:
    The employee's adjusted basic pay under the JWAC-DP (including any 
locality payment) is compared with step 4 rates in the highest 
applicable GS rate range. For this purpose, a GS rate range includes a 
rate in:
    a. the GS base schedule;
    b. the locality rate schedule for the locality pay area in which 
the position is located; or
    c. the appropriate special rate schedule for the employee's 
occupational series, as applicable.
    If the series is a two-grade interval series, only odd-numbered 
grades are considered below GS-11.
    3. For lateral reassignments, the equivalent GS grade and rate will 
become the employee's converted GS grade and rate after leaving the 
JWAC-DP (before any other action).
    For transfers, promotions, and other actions, the converted GS 
grade and rate will be used in applying any GS pay administration rules 
applicable in connection with the employee's movement out of the JWAC-
DP (e.g., promotion rules, highest previous rate rules, and/or pay 
retention rules), as if the GS converted grade and rate were actually 
in effect immediately before the employee left the JWAC-DP.

VI. Project Duration and Changes

    Pub. L. 103-337 removed the mandatory expiration date for STRL 
Demonstration Projects, such as the JWAC-DP. The JWAC-DP evaluation 
plan adequately addresses how each flexibility is comprehensively 
evaluated.
    Many aspects of a Demonstration Project are experimental. Minor 
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.

VII. Evaluation Plan

A. Overview

    Chapter 47 of title 5 U.S.C. requires that an evaluation be 
performed to measure the effectiveness of the demonstration project, 
and its impact on improving public management. A comprehensive 
evaluation plan for the entire STRL demonstration program, originally 
covering 24 DoD laboratories, was developed by a joint OPM/DoD 
Evaluation Committee in 1995. This plan was submitted to the Office of 
Defense Research & Engineering and was subsequently approved. The main 
purpose of the evaluation is to determine whether the waivers granted 
result in a more effective personnel system and improvements in 
ultimate outcomes (i.e., organizational effectiveness, mission 
accomplishment, and customer satisfaction). That plan, while useful, is 
dated and does not fully afford the laboratories the ability to 
evaluate all aspects of the demonstration project in a way that fully 
facilitates assessment and effective modification based on actionable 
data. Therefore, in conducting the evaluation JWAC will ensure USD(R&E) 
evaluation requirements are met in addition to applying knowledge 
gained from other DoD laboratories and their evaluations to ensure a 
timely, useful evaluation of the demonstration project.

B. Evaluation Model

    An evaluation model for the JWAC-DP will identify elements critical 
to an evaluation of the effectiveness of the flexibilities. However, 
the main focus of the evaluation will be on intermediate outcomes, 
i.e., the results of specific personnel system changes which are 
expected to improve human resources management. The ultimate outcomes 
are defined as improved organizational effectiveness, mission 
accomplishment, and JWAC customer satisfaction.

C. Method of Data Collection

    Data from a variety of different sources will be used in the 
evaluation. Information from existing management information systems 
supplemented with perceptual survey data from employees will be used to 
assess variables related to effectiveness. Multiple methods provide 
more than one perspective on how the JWAC-DP is working. Information 
gathered through one method will be used to validate information 
gathered through another. Confidence in the findings will increase as 
they are substantiated by the different collection methods. The 
following types of qualitative and/or quantitative data may be 
collected as part of the evaluation: (1) Workforce data; (2) personnel 
office data; (3) employee attitudes and feedback using surveys, 
structured interviews, and focus groups; (4) local activity histories; 
and/or, (5) core measures of laboratory effectiveness.

VIII. Demonstration Project Costs

    Costs associated with the development of the JWAC-DP system include 
software automation, training, and project evaluation. All funding will 
be provided through JWAC's budget. The timing of the expenditures 
depends on the implementation schedule. The projected annual expenses 
for each area is summarized in Table 2.
[GRAPHIC] [TIFF OMITTED] TN15MY20.008


[[Page 29432]]



IX. Required Waivers to Law and Regulation

    Public Law 103-337 gave the DoD the authority to experiment with 
several personnel management innovations. In addition to the 
authorities granted by the law, the following are the waivers of law 
and regulation that will be necessary for implementation of the JWAC-
DP. In due course, additional laws and regulations may be identified 
for waiver requests.
    The following waivers and adaptations of certain 5 U.S.C. 
provisions are required only to the extent that these statutory 
provisions limit or are inconsistent with the actions contemplated 
under this demonstration project. Nothing in this plan is intended to 
preclude the JWAC-DP from adopting or incorporating any law or 
regulation enacted, adopted, or amended after the effective date of 
this demonstration project.

A. Title 5, United States Code

    1. Chapter 5, section 522a: Records. Waived to the extent required 
to clarify that volunteers under the Voluntary Emeritus Corps are 
considered employees of the Federal government for purposes of this 
section.
    2. Chapter 29, section 2903: Oath; authority to administer. Waived 
insofar as the JWAC Commander may administer the oath of office.
    3. Chapter 31, section 3104: Employment of Specially Qualified 
Scientific and Professional Personnel. Waived to allow SSTM authority 
as described in this FRN and 79 FR 43722.
    4. Chapter 31, section 3132: The Senior Executive Service; 
Definitions and exclusions. Waived to allow SSTM authority as described 
in this FRN and 79 FR 43722.
    5. Chapter 33, Subchapter 1, Examination, Certification, and 
Appointment. Waived to the extent necessary to utilize the authorities 
authorized in 82 FR 43339.
    6. Chapter 33, section 3308: Competitive Service; Examinations; 
Educational Requirements Prohibited. This section is waived with 
respect to the scholastic achievement appointment authority.
    7. Chapter 33, section 3317(a), Competitive Service; certification 
from registers. Waived insofar as ``rule of three'' is eliminated.
    8. Chapter 33, section 3318(a), Competitive Service; selection from 
certificates. Waived insofar as ``rule of three'' is eliminated under 
the JWAC-DP.
    9. Chapter 33, section 3321: Competitive Service; Probationary 
Period. This section waived only to the extent necessary to replace 
``grade'' with ``broadband level.''
    10. Chapter 33, section 3324 and section 3325: Appointments to 
Positions Classified Above GS-15. Waived in entirety to allow SSTM 
authority as described in this FRN and 79 FR 43722.
    11. Chapter 33, section 3327: Civil service employment information. 
Waived to the extent necessary to allow public notice other than 
USAJobs for the Distinguished Scholastic Achievement Authority 
described in this FRN.
    12. Chapter 33, section 3330: Government-wide list of vacant 
positions. Waived to the extent necessary to allow public notice other 
than USAJobs for the Distinguished Scholastic Achievement Authority 
described in this FRN.
    13. Chapter 33, section 3341: Details. This waiver applies to the 
extent necessary to waive the time limits for details.
    14. Chapter 35, section 3522: Agency VSIP Plans approval. Waived to 
remove the requirement to submit a plan to OPM prior to obligating any 
resources for voluntary separation incentive payments.
    15. Chapter 35, section 3523(b)(3): Related to voluntary separation 
incentive payments. Waived to the extent necessary to utilize the 
authorities authorized in 82 FR 43339.
    16. Chapter 41, section 4107: Pay for Degrees. Waived to the extent 
necessary to allow degree training under the Developmental 
Opportunities described in this FRN.
    17. Chapter 41, section 4108. Employee Agreements; Service after 
Training. Waived to the extent necessary to (1) provide that the 
employee's service obligation is to JWAC for the period of the required 
service; (2) permit the JWAC Commander to waive in whole or in part a 
right of recovery; and (3) require an employee in the student 
educational employment program who has received tuition assistance to 
sign a service agreement up to three times the length of the training.
    18. Chapter 43, sections 4301-4305: Related to performance 
appraisal. These sections are waived to the extent necessary to allow 
provisions of the Contribution-based Compensation System as described 
in this FRN.
    19. Chapter 51, sections 5101-5112: Related to classification 
standards and grading. Waived to the extent that white collar employees 
will be covered by the broadbanding system and to the extent necessary 
to allow classification provisions described in this FRN.
    20. Chapter 53, sections 5301-5307: Related to pay comparability 
system and GS pay rates. Waived to the extent necessary to allow JWAC-
DP employees, including SSTM employees, to be treated as GS employees, 
and to allow basic rates of pay under the demonstration project to be 
treated as scheduled rates of pay. SSTM pay will not exceed EX-IV and 
locality adjusted SSTM rates will not exceed EX III.
    21. Chapter 53, sections 5331-5336: General Schedule pay rates. 
These waivers apply to the extent necessary to: (1) Allow JWAC-DP 
employees to be treated as GS employees; (2) allow the provisions of 
this FRN pertaining to setting rates of pay; and (3) waive sections 
5335 and 5336 in their entirety.
    22. Chapter 53, sections 5361-5366: Grade and pay retention. Waived 
to the extent necessary to allow for the elimination of pay and grade 
retention provisions as described in this FRN.
    23. Chapter 55, section 5542(a)(1)-(2): Overtime rates; 
computation. These sections are adapted only to the extent necessary to 
provide that the GS-10 minimum special rate (if any) for the special 
rate category to which a project employee belongs is deemed to be the 
``applicable special rate'' in applying the pay cap provisions in 5 
U.S.C. 5542.
    24. Chapter 55, section 5545(d): Hazardous duty differential. This 
waiver applies only to the extent necessary to allow JWAC-DP employees 
to be treated as GS employees.
    25. Chapter 57, section 5753: Recruitment and Relocation Bonuses. 
Waived to the extent necessary to allow JWAC-DP employees, including 
SSTM employees, to be treated as GS employees.
    26. Chapter 57, section 5754: Relocation Bonuses. Waived to the 
extent necessary to allow provisions of the retention counteroffer and 
incentives as described in this FRN.
    27. Chapter 57, section 5755: Supervisory Differentials. Waived to 
the extent necessary to allow SSTM supervisory pay differential 
provisions as described in 79 FR 43722.
    28. Chapter 75, sections 7501(1), 7511(a)(1)(A)(ii), and 
7511(a)(1)(C)(ii): Adverse Actions--Definitions. Waived to the extent 
necessary to: (1) Allow for up to a three-year probationary period, (2) 
remove the reference to one year of current continuous service, and (3) 
permit termination during the extended probationary period without 
using adverse action procedures for those employees serving a 
probationary period under an initial appointment except for those with 
veterans' preference.

[[Page 29433]]

    29. Chapter 75, section 7512(3): Adverse actions. This waiver 
applies only to the extent necessary to replace ``grade'' with 
``broadband level'' and to exclude reductions in broadband level not 
accompanied by a reduction in pay.
    30. Chapter 75, section 7512(4): Adverse actions. This waiver 
applies only to the extent necessary to provide that adverse action 
provisions do not apply to conversions from GS special rates to JWAC-DP 
pay, as long as total pay is not reduced.
    31. Chapter 99, section 9902(f): Related to voluntary separation 
incentive payments. Waived to the extent necessary to utilize the 
authorities authorized in 82 FR 43339.

B. Title 5, Code of Federal Regulations

    1. Part 300, Employment (General), other than Subpart G of Part 
300. Waived to the extent necessary to allow provisions of the direct 
hire authorities as described in 79 FR 43722 and 82 FR 29280.
    2. Part 300.601-300.605: Time-in-Grade requirements. Waived to 
eliminate time-in-grade restrictions.
    3. Part 315.801-315.802: Probationary Period. Waived to allow the 
extended probationary period.
    4. Part 315.803(b): Agency Action during probationary period 
(general). Waived to allow for termination during an extended 
probationary period without using adverse action procedures under 
subpart D of part 752, 5 U.S.C.
    5. Part 315, section 315.901 and 315.907: Statutory requirements. 
This waiver applies only to the extent necessary to replace ``grade'' 
with ``broadband level.''
    6. Part 316, sections 316.301, 316.303, and 316.304: Term 
Employment. Waived to the extent necessary to allow Flexible Length and 
Renewable Term Technical Appointments as described in this FRN and in 
82 FR 43339.
    7. Part 330.103-330.105: Related to filling vacancies. Waived to 
the extent necessary to allow the STRL to publish competitive 
announcements outside of USAJobs.
    8. Part 332 and 335: Related to competitive examination and agency 
promotion programs. Waived to the extent necessary to (1) allow 
employees appointed on a Flexible Length and Renewable Term Technical 
Appointment to apply for federal positions as status candidates; (2) 
allow no rating and ranking when there are 15 or fewer qualified 
applicants and no preference eligible candidates; (3) allow the hiring 
and appointment authorities as described in this FRN; (4) eliminate the 
``rule of three'' requirement; and (5) to extend the length of details 
and temporary promotions without requiring competitive procedures as 
described in this FRN.
    9. Part 337.101(a): Rating applicants. Waived to the extent 
necessary to allow referral without rating when there are 15 or fewer 
qualified candidates and no qualified preference eligible candidates.
    10. Part 338.301: Competitive service appointment. Waived to allow 
for Distinguished Scholastic Achievement Authority grade point average 
requirements as described in this FRN.
    11. Part 359.705: Removal from the Executive Service, Pay. Waived 
to allow demonstration project rules governing pay retention to apply 
to a former SES employee placed in an SSTM or broadband level IV 
position.
    12. Part 410, section 410.308(a-f): Training to obtain an academic 
degree. Waived to the extent necessary to allow provisions described in 
this FRN.
    13. Part 410, section 309: Agreements to continue in Service. This 
waiver applies to that portion that pertains to the authority of the 
head of the agency to determine continued service requirements, to 
waive repayment of such requirements, and to the extent that the 
service obligation is to JWAC.
    14. Part 430, Subpart B: Performance Appraisal for General 
Schedule, Prevailing Rate, and Certain Other Employees. Waived to the 
extent necessary to apply the Contribution-based Compensation System 
described in this FRN.
    15. Part 432.102-432.105: Related to performance based actions. (1) 
Modified to the extent that an employee may be removed, reduced in 
broadband level with a reduction in pay, reduced in pay without a 
reduction in broadband level and reduced in broadband level without a 
reduction in pay based on unacceptable performance; (2) modified to 
delete reference to critical element; (3) waived to the extent 
necessary to replace ``grade'' with ``broadband''; (4) waived to 
exclude reductions in broadband level not accompanied by a reduction in 
pay; (5) allow provisions of CCS and addressing inadequate contribution 
as described in this FRN; and (6) waive ``If an employee has performed 
acceptably for 1 year'' to allow for ``within two years'' from the 
beginning of an opportunity period.
    16. Part 511 Subpart A, B, and F: Classification Under the General 
Schedule. Waived to the extent necessary to allow classification 
provisions outlined in this FRN, to include the list of issues that are 
neither appealable nor reviewable, the assignment of series under the 
JWAC-DP plan to appropriate career paths; and to allow informal appeals 
to be decided by the JWAC Commander.
    17. Part 530, Subpart C: Special salary rates. Waived in its 
entirety.
    18. Part 531, Subparts B, D, and E: Determining rate of basic pay, 
within-grade increases, and quality step increases. Waived in its 
entirety.
    19. Part 531, Subpart F: Locality pay. This waiver applies only to 
the extent necessary to allow JWAC-DP employees, including SSTMs, to be 
treated as GS employees, and basic rates of pay under the demonstration 
project to be treated as scheduled annual rates of pay. This waiver 
does not apply to ST employees who continue to be covered by these 
provisions, as appropriate.
    20. Part 536: Grade and pay retention. Waived to the extent 
necessary to allow the maintained pay provisions described in this FRN 
and to allow personnel in SSTM positions to receive maintained pay as 
described in this FRN.
    21. Part 550.703: Severance Pay. This waiver applies only to the 
extent necessary to modify the definition of ``reasonable offer'' by 
replacing ``two grades or pay levels'' with ``one band level'' and 
``grade or pay level'' with ``band level.''
    22. Part 575, subparts A, B, and C: Recruitment Incentives, 
Relocation Incentives, and Retention Incentives. Waived to the extent 
necessary to allow employees and positions under the JWAC-DP covered by 
the broadbanding system to be treated as employees and positions under 
the GS system.
    23. Part 752, sections 752.201 and 752.401: Principal statutory 
requirements and coverage. Waived to the extent necessary to: (1) Allow 
extended probationary periods and to permit termination during the 
extended probationary period without using adverse action procedures 
for those individuals serving a probationary period under an initial 
appointment; (2) replace ``grade'' with ``broadband level''; and (3) 
provide that adverse action provisions do not apply to conversions from 
GS special rates to JWAC-DP pay, so long as total pay is not reduced.
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    Dated: May 12, 2020.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2020-10481 Filed 5-14-20; 8:45 am]
BILLING CODE 5001-06-C