U.S. Office of Personnel Management - Ensuring the Federal Government has an effective civilian workforce
Demonstration Projects |
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Demonstration Project FactsheetsACTIVE PERMANENT
COMPLETE
DOD LABS
Department of Commerce STATUS: Active SITES: Office of the Chief Financial Officer and Assistant Secretary for Administration
Technology Administration
Bureau of Economic Analysis Institute for Telecommunication Sciences National Telecommunications and Information Administration
National Oceanic and Atmospheric Administration
PARTICIPANTS: Includes approximately 7,300 employees. PURPOSE: The Department of Commerce Demonstration Project is designed to provide managers at the lowest organizational level the authority, control, and flexibility needed to recruit, retain, develop, recognize, and motivate its workforce, while ensuring adequate accountability and oversight. It is largely based on the original National Institute of Standards and Technology (NIST) demonstration project, which Congress made permanent in 1996 (Public Law 104-113). FEATURES: Pay-for-performance in a pay banding framework that provides greater flexibility to reward performance; supervisory pay; pay setting, hiring, and promotion flexibility; extended probationary period for research scientists; simplified, delegated, and internet-based classification system. MILESTONES:
WEBSITES Commerce demonstration project home page: http://ohrm.os.doc.gov/Demo/index.html Commerce demonstration project evaluation reports: http://ohrm.os.doc.gov/Demo/DEV01_000106.html Department of Defense Civilian Acquisition Workforce (AcqDemo) STATUS: Active SITES: Office of the Secretary of Defense and its components; the United States Army; the United States Navy; and the United States Air Force PARTICIPANTS: AcqDemo includes over 11,400 Federal acquisition and support employees—both union and non-union—in numerous locations throughout the United States and overseas. PURPOSE: The purpose of AcqDemo is to demonstrate that a flexible and responsive personnel system will enhance DoD’s ability to attract, motivate, and retain a high quality acquisition workforce. It is designed to provide an encouraging environment that promotes the personal and professional growth of all employees. This project is unique because it is the first demonstration project that covers an occupational workforce, rather than an organizational entity. FEATURES: Streamlined hiring processes, broadbanding, simplified job classification, a contribution-based compensation and appraisal system, revised reduction-in-force procedures, expanded training opportunities, and sabbaticals. MILESTONES:
WEB SITES:March 4, 1998:Final project plan published. Final Federal Regis AcqDemo home page: http://www.acq.osd.mil/dpap/policy/acqdemo/index.htm AcqDemo evaluation reports: http://www.acq.osd.mil/dpap/policy/acqdemo/evaluation/index.htm
Department of Agriculture STATUS: (Permanent) Alternative Personnel System SITES: The Forest Service (FS) and the Agricultural Research Service (ARS) PARTICIPANTS: Up to 5,000 new hires - including GS, GM, and FWS positions FEATURES: Decentralized determination of shortage category (precursor to delegated case examining); MILESTONES:
ADDITIONAL INFORMATION: This was the first demonstration project testing a comprehensive simplification of the hiring system for both white collar and blue collar Federal employees. Applicants meeting minimum qualification standards are placed in one of two groups (quality and eligible) on the basis of their education, experience and ability. All candidates in the quality group are available for selection, with preference given to veterans. Over 200 ARS and FS sites have implemented the system. EVALUATION FINDINGS: For the first 5 years, the demonstration project was evaluated by Pennsylvania State University. Results indicate that there has been an increase in the number of candidates per job announcement, referral of more candidates to managers for selection, increased hiring speed, and greater satisfaction with the hiring process. There has been no adverse impact on the number of women, minorities, or disabled hired, and there have been more veterans hired in ARS (16.3 percent at the demonstration sites vs. 9.5 percent at the comparison sites), and slightly more veterans hired in FS (18.9 percent at the demonstration project sites versus 16.7 percent at the comparison sites). Dissatisfaction with veterans preference, reported during site visits, was found to be closely related to the use of selective placement factors and qualification standards that were considered either too low or imprecise by managers. Since the extension of the project, an independent, internal component of USDA has assumed responsibility for the evaluation. A summative report on the extension was published in May 1998.
National Institute of Standards & Technology STATUS: (Permanent) Alternative Personnel System SITES: Gaithersburg, MD and Boulder, CO PARTICIPANTS: 3,150 GS/GM employees: scientists, engineers, technicians, clerks, admininstrative staff, etc. FEATURES:
MILESTONES:
ADDITIONAL INFORMATION: The National Institute of Standards and Technology (NIST) demonstration project was started in January 1988 to address difficulties in hiring, classification, and compensation. The project introduced a simplified and automated classification system, with classification authority delegated to line managers. Supervisors continue to find the system easy to use; they feel that they devote less time to position classification and that they have more authority to influence classification decisions. In the area of hiring, NIST received expanded hiring authority and flexibility in setting starting salaries. NIST is making extensive use of its expanded hiring authorities for professional and support occupations, and agency-based hiring for the administrative and technical occupations since implementation of the project. Starting salary flexibility is seen as a very useful recruiting tool. Recruitment allowances and retention allowances are used sparingly at NIST. The original five-level rating system was changed in 1990 to a two-level system that was linked to ranking for pay purposes using a 100-point scale. A score below 40 constitutes unsatisfactory performance, and employees above 40 are eligible for pay increases. Rating distributions have remained consistent across time. In contrast, ratings for the comparison group have shown a steady rise. Average salaries have increased under banding and after five years were four percent higher than for the comparison group. Satisfaction with the new performance management system has increased, and according to the 1993 attitude survey, 67 percent of employees were in favor of the project. On May 6, 2005, NIST published an amendment in the Federal Register (Volume 70, Number 87) which further strengthened the links between pay and performance, and performance and retention credit. The amendment included replacing the 100-point rating scale with six performance ratings and linking performance pay increases to the top three ratings. The amendment also implemented a required bonus for high-performing employees who cannot receive an increase because they are at the cap of their pay band, or their adjusted salaries would exceed the maximum rate for their pay band. Finally, the provisions on retention service credit for reduction in force and annual adjustments to basic pay were modified to correspond with these changes.
Navy Demonstration Project ("China Lake") STATUS: (Permanent) Alternative Personnel System SITES: Naval Air Warfare Center, Weapons Division (formerly NWC), China Lake, Point Mugu, CA, White Sands, NM; sites within the Space and Naval Systems Command in San Diego, CA, Chesapeake, VA and Charleston, SC, (Formerly Naval Command, Control and Ocean Surveillance Center [formerly NOSC] San Diego, California). Authorized for expansion to successor organization. PARTICIPANTS: Approximately 10,000 GS/GM employees: scientists and engineers, technicians, administrative, technical specialists, and clerical staff FEATURES: Simplified classification system which consolidates GS grades into broader pay bands; MILESTONES:
ADDITIONAL INFORMATION: This was the first personnel demonstration project under Title VI of the Civil Service Reform Act. The labs were interested in improving recruitment and retention of high quality workers and "letting managers manage" by increasing their control over classification, pay, and other personnel matters. Classification was simplified and delegated to managers. Pay increases within broad pay bands were linked closely to performance ratings. Starting salaries were made flexible. The project was extended indefinitely in 1994 by P.L. 103-337. In 1995 Navy was given authority to expand the project throughout the successor organization, the Naval Air Systems Command (NAVAIR). OPM conducted the project evaluation and published 14 evaluation reports. The project was successful in improving personnel management at the two demonstration labs. Simplified delegated job classification based on generic standards has drastically reduced the time for classification actions and reduced conflict between personnel and managers. Average salaries have increased two to three percent under banding. Recruitment, retention and reduced turnover of high performers and increased turnover of low performers have all improved. Perceived supervisory authority over classification, pay and hiring increased, as did employee satisfaction with pay and performance management; more than 70 percent of employees are supporting the demonstration system.
FAA Airway Science Curriculum STATUS: Complete SITES: Nationwide PARTICIPANTS: Up to 5,000 employees FEATURES: Alternative recruitment method for five major FAA occupations MILESTONES:
ADDITIONAL INFORMATION: The Federal Aviation Administration (FAA) Airway Science Project was initiated following the 1981 Air Traffic Controller strike to facilitate the rebuilding of FAA's workforce. In 1982, FAA encouraged colleges and universities to establish an Airway Science Curriculum, in an effort to update the educational levels of applicants seeking careers with FAA and to shift the costs of training individuals for civilian aviation occupations from Government to the private sector. The Airway Science curriculum, developed by FAA with the University Aviation Association, consisted of a core curriculum and five areas of specialization. Because the Airway Science curriculum was a four-year program, and the FAA demonstration project was only implemented in October 1983, hiring of Airway Science graduates under the new announcement was slow. Therefore OPM extended the Demonstration Project until July 1992 to allow for a statistically valid evaluation of the project. In 1990, OPM and FAA reviewed the findings of the demonstration project and concluded that sufficient numbers of graduates would not be hired before the 1992 expiration. After seven years, the number of Airway Science graduates hired by FAA through the demonstration process was 41, compared to 8,152 through traditional OPM registers. It was, therefore, agreed to end the project's coverage as a demonstration project effective March 23, 1991. The FAA is continuing to support the FAA Airway Science curriculum.
Federal Aviation Administration STATUS: Complete - Five-year term ended June 1994 SITES: Several Air Traffic Control Facilities in the Chicago, New York, Oakland, and Los Angeles area PARTICIPANTS: 2,200 employees in air traffic control and other safety-related positions FEATURES: Retention allowances of up to 20 percent* paid quarterly to attract and retain well-qualified employees in hard-to-staff facilities *reduced by the amount of the 8 percent interim geographic adjustment in New York, Oakland, and Los Angeles and by a locality adjustment of 5.34 percent in Chicago. MILESTONES:
ADDITIONAL INFORMATION: The Problem: The Federal Aviation Administration had been unable to attract enough trained employees for safety-related positions in certain air traffic facilities in Chicago, Los Angeles, Oakland, New York City and California. The Intervention: The project tested the use of financial incentives -- retention allowances -- to resolve staffing and pay problems for safety-related positions at difficult-to-staff facilities. The quarterly retention bonuses of up to 20 percent of base pay were paid only when an employee actually occupied the position for a full fiscal quarter. Operation: FAA made the first quarterly payout of allowances to 2,150 employees on September 19, 1989. Quarterly payouts averaged $2,565 per employee as reported in later evaluations. The project ended June 1994. Employees who were in the project in June 1994 continued on a statutory "save pay" status. Reports: A report on the project's implementation and first year of operation was issued October 1991. OPM issued an interim report, incorporating data through March 1993. Summative report issued in December 1995.
Federal Bureau of Investigation STATUS: Complete - Five-year term ended in October 1993 SITE: FBI New York City Office PARTICIPANTS: Approximately 2,100 employees -- Special Agents and Support Staff FEATURES: (1) Retention allowances of up to 25 percent of base pay, which were reduced by the amount of the 8 percent interim geographic adjustment or the 16 percent law enforcement officer (LEO) geographic adjustment (GEO), whichever applied. (2) Relocation bonuses of $20,000 upon directed reassignment to the New York Office with a 3-year service agreement. MILESTONES:
ADDITIONAL INFORMATION: This was not a chapter 47 demonstration project but was authorized by legislation in response to severe staffing difficulties in the New York Office (NYO). The purpose was to attract sufficient numbers of critical personnel to move to and stay with the NYO. It was originally limited to employees subject to directed reassignment but a year later was expanded to include all employees in the FBI NYO. FBI conducted the evaluation. OPM and FBI jointly submitted annual reports to Congress. The final report was released in September 1994. Primary objectives were achieved, including:
Pacer Share STATUS: Complete - Five-year term ended February 17, 1993 SITES: Air Force Sacramento Air Logistics Center and Defense Logistics Agency Sacramento Specialized Distribution Site, McClelland Air Force Base, California PARTICIPANTS: 1,400 Employees FEATURES THAT REQUIRE WAIVER OF LAW OR REGULATION: Consolidated grades into broader pay bands; FEATURES THAT DO NOT REQUIRE WAIVERS: Productivity gainsharing (PGS), Total Quality Management (TQM), Labor Management Cooperation MILESTONES:
ADDITIONAL INFORMATION: Pacer Share tested a set of interventions that were designed to make the Federal personnel system more flexible and, in turn, improve the productivity of a Federal installation. Pacer Share involved labor and management in a close partnership which resulted in improved cooperation. In terms of overall organizational outcomes, Pacer Share fell short of original expectations. Organizational performance remained stable and did not improve significantly relative to its own baseline and the comparison sites. Employees earned gainshares for 10 of the 21 quarters of the project, totaling $1,924 per employee. The personnel system changes produced mixed results, and efforts continue to institutionalize the most successful aspects of Pacer Share. Five evaluation reports have been issued on the project.
DoD Science and Technology (S & T) Lab Demonstration Projects STATUS: Active—includes the 8 individual demonstration projects listed below. PURPOSE: The S&T Lab Demonstration Program was authorized by the National Defense Authorization Act for Fiscal Year 1996 for the general purpose of expanding to other DoD laboratory facilities the flexibilities found in the Navy “China Lake” Demonstration Project, which was made permanent through legislation in 1994. Its stated objectives are to 1) improve the effectiveness of DoD laboratories through a more flexible, responsive personnel system; 2) increase line management authority over human resources management; 3) recruit, develop, motivate, and retain a high quality workforce; and 4) adjust workforce levels to meet strategic program and organizational needs. Air Force Research Laboratory PARTICIPANTS: Approximately 2,500 scientists and engineers. SITES: 36 geographic locations. FEATURES: Simplified job classification; appointment authorities; extended probationary period, pay banding, Contribution-based Compensation System (CCS). MILESTONES:
Army: Aviation and Missile Research, Development and Engineering Center (formerly AVRDEC and MRDEC) PARTICIPANTS: Approximately 2,500 employees. SITES: Redstone Arsenal, AL, and 35 other locations. FEATURES: Simplified job classification, appointment authorities, pay banding, performance-based compensation system, employee development provisions, and modified reduction-in-force procedures. MILESTONES:
ADDITIONAL INFORMATION: The Aviation Research, Development and Engineering Center (AVRDEC) was relocated to a new command at the Redstone Arsenal at Huntsville, Alabama, effective October 1, 1997, with employees officially transferred October 12, 1997. Some AVRDEC employees were relocated to the Missile Research, Development and Engineering Center (MRDEC) (see separate fact sheet) at Redstone Arsenal and some to the new AVRDEC under the new command. The demonstration project was developed by AVRDEC and negotiated with their union. It was also developed in tandem with the MRDEC since these employees would be working side-by-side. It is anticipated that eventually all AVRDEC and MRDEC employees will be covered under one project in the new Command. Union issues involving successor organization determination must be resolved before this can be accomplished.
Army: Engineer Research & Development Center PARTICIPANTS: Approximately 1,500 employees. SITES: Army Engineer Waterways Experiment Station (WES); Army Construction Engineering Research Laboratories (CERL); Army Topographic Engineering Center (TEC); and Army Cold Regions Research and Engineering Laboratory (CRREL)—Vicksburg, MS; Champaign, IL; Alexandria, VA; Hanover, NH; and 39 other locations. FEATURES: Simplified job classification, pay banding, performance-based compensation system, streamlined hiring processes, modified reduction-in-force procedures. MILESTONES:
Army: Medical Research and Materiel Command PARTICIPANTS: Approximately 1,000 employees. SITES: Fort Detrick (Frederick, MD) and 14 other locations. FEATURES: Simplified job classification, pay banding, performance-based compensation system, employee development provisions, modified reduction-in-force procedures. MILESTONES:
Army: Missile Research, Development and Engineering Center (MRDEC), U.S. Army Missile Command (MICOM) STATUS: Incorporated into DOD LABS PARTICIPANTS: About 1880 GS employees LOCATIONS: Redstone Arsenal (99 percent); and 11 additional sites. FEATURES: Broadbanding; a pay-for-performance management system; hiring and appointment authorities; employee development; and revised reduction-in-force procedures. MILESTONES:
ADDITIONAL INFORMATION: The Missile Research, Development and Engineering Center (MRDEC) project was developed as a separate project and negotiated with the MRDEC union, but was coordinated closely with the Aviation RDEC demonstration project development because of the anticipated Aviation relocation. Missile RDEC was reorganized under a new command located at Redstone Arsenal effective October 1, 1997. It is anticipated that eventually all MRDEC and AVRDEC employees will be covered under one project in the new command. Union issues involving successor organization determination must be resolved before this can be accomplished.
Army Research Laboratory PARTICIPANTS: About 1,900 employees. LOCATIONS: Adelphi, MD; Aberdeen Proving Ground, MD; and 43 other locations. FEATURES: Simplified job classification, pay banding, performance-based compensation system, employee development provisions, modified reduction-in-force procedures. MILESTONES:
Army: Communications-Electronics Command Research, Development, and Engineering Community PARTICIPANTS: Approximately 1,200 employees. SITES: Communications, Electronics, Research, Development and Engineering Center (CERDEC); and the Software Engineering Center—Fort Monmouth, NJ; Fort Lee, VA; and 19 other locations. FEATURES: Permanent and modified term appointment authorities, extended probationary period for newly hired engineers and scientists, pay banding, streamlined delegated examining, modified reduction-in-force procedures, simplified job classification, pay-for-performance system, academic degree and certificate training, sabbaticals, voluntary emeritus corps. MILESTONES:
Department of Air Force: Air Force Research Laboratory STATUS: Incorporated into DOD LABS PARTICIPANTS: About 2,800 scientific and engineering employees LOCATIONS: Rome Laboratory - 2 locations; Armstrong Lab - 6 locations; Phillips Lab - 6 locations; Wright Lab - 6 locations. FEATURES: Laboratory-controlled rapid hiring; contribution-based compensation framed in a broadbanding structure; simplified classification; streamlined removal process; and voluntary emeritus corps. MILESTONES:
ADDITIONAL INFORMATION: The Air Force demonstration project is the first demonstration project finalized and implemented since 1990. The cornerstone of the project is the Contribution-based Compensation System, which assesses individual contribution to the accomplishment of mission, and pay is based on the assessed contribution. Air Force laboratories have undergone a major reorganization from four laboratories into one Air Force Research Laboratory (AFRL) headquartered at Wright Patterson AFB. This reorganization was coincidental with the implementation of the demo. The new AFRL was final in October 1997. As a result of the reorganization, 48 additional positions were added to the demo in August 1997. The first assessment and pay determinations made in October/November 1997 were based on the pay pool structure established in the four laboratories as they existed before October 1997. The FY98 assessments and pay decisions will be made based on the new organizational structure of the AFRL. The Air Force is undertaking an extensive evaluation of the demo project that involves two approaches: a review of the AFRL project in relation to the other DoD Laboratory Demonstration projects, and an internal evaluation aimed at tracking project progress and results and providing data to assist in management decisions to assure a successful project.
Naval Research Laboratory PARTICIPANTS: Approximately 2,500 employees. SITES: Washington, DC, and 23 other locations. FEATURES: Streamlined hiring processes, broadbanding, simplified position classification, a Contribution-based Compensation System, extended probationary period for new employees, modified reduction-in-force procedures. MILESTONES:
Naval Sea Systems Command Warfare Centers PARTICIPANTS: Approximately 12,000 employees. SITES: Naval Surface Warfare Center (6 D ivisions) and Naval Undersea Warfare Center (2 Divisions). FEATURES: Broadbanding, performance development system, an incentive pay system, modified reduction-in-force procedures, competitive examining and appointment system. MILESTONES:
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