[Federal Register: July 21, 1999 (Volume 64, Number 139)] [Notices] [Page 39179-39181] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr21jy99-123] ======================================================================= ----------------------------------------------------------------------- OFFICE OF PERSONNEL MANAGEMENT Science and Technology Reinvention Laboratory Personnel Demonstration Project at the Naval Sea Systems Command Warfare Centers AGENCY: Office of Personnel Management. ACTION: Notice of amendment to expand coverage of all provisions of the Naval Sea Systems Command, Naval Surface Warfare Center and Naval Undersea Warfare Center personnel demonstration project to include employees of the Naval Warfare Assessment Station (NWAS). ----------------------------------------------------------------------- SUMMARY: Public Law 103-337, October 5, 1994, permits the Department of Defense (DOD), with the approval of the Office of Personnel Management (OPM), to carry out personnel demonstration projects at DOD Science and Technology (S&T) Reinvention Laboratories. This notice identifies the expanded coverage of the Naval Sea Systems Command, Naval Surface Warfare Center and Naval Undersea Warfare Center personnel demonstration project to include employees of the Naval Warfare Assessment Station (NWAS). This notice also serves to clarify provisions of the Warfare Centers' final demonstration project plan published in the December 3, 1997, Federal Register Notice. DATES: This notice may be implemented July 21, 1999. FOR FURTHER INFORMATION CONTACT: Warfare Centers: Shirley Scott, NSWC/NUWC Deputy Demonstration Project Manager, NSWCDD, HR Department, 17320 Dahlgren Road, Dahlgren, VA 22448, 540-653-4623. OPM: John Andre, U.S. Office of Personnel Management, 1900 E Street, NW, Room 7460, Washington, DC 20415, 202-606-1255. SUPPLEMENTARY INFORMATION: OPM has approved ``Science and Technology Laboratory Personnel Management Demonstration Projects'' and published [[Page 39180]] the Naval Sea Systems Command, Naval Surface Warfare Center and Naval Undersea Warfare Center final plan in the Federal Register on Wednesday, December 3, 1997, Volume 62, Number 232, Part II. The Warfare Centers' demonstration project involved a simplified broad banded position classification system, performance management and development system, performance-based incentive pay system, competitive examining and appointment provisions, and modified reduction-in-force procedures. The final plan provided for a staggered implementation strategy across the Warfare Centers' divisions which began March 15, 1999. On February 15, 1998, the Naval Warfare Assessment Station (NWAS) was established as an organizational component reporting directly to the Naval Surface Warfare Center (NSWC). NSWC plans to expand coverage of the personnel demonstration project to include employees of NWAS. Dated: July 9, 1999. Office of Personnel Management. Janice R. Lachance, Director. I. Executive Summary The Naval Sea Systems Command established the Naval Surface Warfare Center and the Naval Undersea Warfare Center Personnel Demonstration Project to be generally similar to the system in use at the Naval Personnel Demonstration Project known as China Lake. The project was built upon the concepts of linking performance to pay, simplifying the position classification system, emphasizing performance development, and delegating other authorities to line managers. II. Introduction A. Purpose The Warfare Centers' personnel demonstration project attempts to provide managers, at the lowest practical level, the authority, control and flexibility needed to recruit, retain, develop, recognize and motivate its workforce. Expanding the demonstration project to include employees of the newly established NWAS activity will allow the Naval Surface Warfare Center to implement the provisions of the project throughout all of its organizational activities, and to compete more effectively for high-quality personnel while strengthening the manager's role in personnel management. All provisions of the approved Warfare Centers' personnel demonstration project will apply. Employee notification will be made by delivery of a copy of the December 3, 1997, final plan, any subsequent amendments, and this notice. Training for supervisors and employees will be accomplished by information briefings and training sessions prior to implementation. B. Participating Employees This demonstration project will be expanded to cover all NWAS civilian employees, with the exception of members of the Senior Executive Service, located in Corona, California and remote locations. Table 1 reflects the duty locations and a projected number of employees to be covered. Table 1.--NWAS Employees ------------------------------------------------------------------------ Projected Location number of employees ------------------------------------------------------------------------ Corona, CA.................................................. 653 Arlington, VA............................................... 2 Beaufort, SC................................................ 4 Cairo, Egypt................................................ 1 Ceiba, Puerto Rico.......................................... Cherry Point, NC............................................ 7 El Centro, CA............................................... 1 Fallon, NV.................................................. 12 Key West NAV Air Station, FL................................ MCAS Miramar, CA............................................ 1 Moorestown, NJ.............................................. 2 ------------------------------------------------------------------------ C. Other Changes (1) Section III.B.1h.3: Pay Protection Provision The intent of this provision was to offer maximum protection of the employee's salary upon movement to a different geographic location. Upon conversion to the demonstration project, many employees who were previously covered by special salary rates had their total adjusted salary reallocated between basic pay and locality pay. These reallocations were necessary to convert the employees to a broad-banded classification and pay system and it was not intended to lower the employees' total adjusted salary. Concurrent with the conversion, some of these same employees received an increase in basic pay under the demonstration project buy-in provisions outlined in Section III.D.1.: Initial Conversion of Current Workforce. Increases to basic pay under this section were granted as a buy-in into the demonstration project to compensate employees for time earned creditable toward their next within-grade-increase under the General Schedule system. Despite seemingly clear language, the pay protection provision addressed in Section III.B.1h3. appears to disregard consideration of the employee's adjusted salary granted under this buy-in provision. This notice corrects this oversight by clarifying that the salary under protection includes the employee's pre-conversion special rate plus any increase in salary granted under the buy-in provisions. The second sentence of this section is amended to read: ``For these employees, the new adjusted rate following a geographic move may not be less than the dollar amount of the employee's pre-conversion special rate plus any increase in salary granted under Section III.D.1. of this plan.'' (2) Section III.B.5. Competitive Examining and Distinguished Scholastic Appointments The Warfare Centers' demonstration project restructures the competitive examining process and provides for an authority to appoint candidates meeting prescribed distinguished scholastic achievements. The final plan includes language that may be interpreted as authority to extend changes in the examining process to positions outside the demonstration project activities. To eliminate confusion, the following sentence is deleted: ``To further minimize resource requirements and the complexities inherent in administering two different sets of examining and hiring processes, this component may be applied to GS and FWS positions in activities for which the Warfare Center Divisions provide human resource services.'' Also, the third sentence of that paragraph is changed from: ``When a Division implements the Demonstration Project for some portion of their workforce, this component may be available for all occupations.'' to: ``When a Division implements the Demonstration Project for some portion of their workforce, this provision may be available for all occupations, GS and FWS, within that Warfare Center Division.'' This change further clarifies that this provision is used only for occupations covered by the Demonstration Project. (3) Section III.D.3. Exit From the Demonstration Project To clarify that conversion-out procedures also apply in the event the project ends, the following sentence is added at the end of the first paragraph under this section: ``These procedures will also be followed for those employees who exit the project because of project termination.'' [[Page 39181]] (4) Section V.A.: Waivers to title 5, United States Code The Warfare Centers' personnel demonstration project includes an enhanced performance management system requiring a waiver of existing laws and regulations governing performance management systems. Waivers of specific provisions of title 5 and the Code of Federal Regulations (CFR) were included under section V of the Warfare Centers' final plan. However, waivers of 5 U.S.C. 4304(b)(1) and (3) were inadvertently not included in this section. These title 5 provisions require OPM's review and approval of performance appraisal systems developed by agencies under 5 U.S.C. chapter 43. Simultaneously, Public Law 103-337 (Section 342 of the National Defense Authorization Act for FY95), October 5, 1994, requires OPM's approval of personnel demonstration projects. This approval was obtained and the Warfare Centers' final plan was published in the 3 December 1997 Federal Register. OPM's approval of the Warfare Centers' final plan removes the need to have separate review and approval of the revised performance appraisal system as required under chapter 43 of title 5 U.S.C. Part V of the final plan is therefore amended to add the following waivers: 5 U.S.C. 4304(b)(1) 5 U.S.C. 4304(b)(3) [FR Doc. 99-18558 Filed 7-20-99; 8:45 am] BILLING CODE 6325-01-P