FAQs
1. Where did AcqDemo come from, when did it start, and who are the participants?
Answer: See "About AcqDemo" section of website
2. What are the desired results?
Answer: The inflexibility of many personnel processes and the diffused authority result in a workforce that cannot posture itself for the rapidly changing technological and business environment. This demonstration is designed to provide a personnel management system that increases our ability to attract, retain, and motivate the highly-qualified acquisition workforce.
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3. What is broadbanding and how will it benefit the employee?
Answer: Broadbanding, also referred to as pay-banding or grade-banding, consolidates several pay grades into a broad band. Currently the 15 grades of the General Schedule are used to classify positions and, therefore, to set pay. Under broadbanding, several grades are banded together, thereby creating more flexibilities for setting pay.
The common objectives of broadbanding are:
- to reduce the number of distinctions between levels of work at the different grade levels, thereby greatly simplifying the process and eliminating substantial paperwork for employees to advance to another level of work and pay;
- to allow for more competitive recruitment of quality candidates at differing rates within the appropriate broadband levels; and
- to allow employees to move within the band to higher levels of pay, based on level of work performed, without going through a competitive promotion process.
The use of broadbanding provides a stronger link between pay and contribution to the mission of the organization. An employee can more easily be compensated at the level which reflects his/her contribution to the goals of the organization.
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4. Why do we need a simplified classification system?
Answer: The current job classification process is both time-consuming and costly. Our aim is to create a simplified classification process so that managers can readily use it to classify positions. The classification system also needs to be simplified to reflect the changes from the current General Schedule system to a more generic broadbanding system. The position classification changes are intended to streamline and simplify the process of identifying and categorizing the work done within an organization.
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5. Can you explain in more detail what the Contribution-Based Compensation and Appraisal System (CCAS) is and what benefits will be gained by adopting it?
Answer: The CCAS provides an effective and flexible method for assessing and compensating the work force on the basis of their contribution to the mission of the organization, rather than on the basis of the amount of work accomplished and job longevity. It differs from the Civil Service System in that instead of basing the appraisal on how well a specified job is done (i.e. performance), the appraisal is based on the job done well (i.e. contribution). It is based on the value of the job to the mission of the organization. CCAS provides a direct link between levels of individual contribution and the compensation received.
CCAS provides a common set of contribution factors that state what is important to the mission of the organization. Jobs done by individuals are evaluated against these contribution factors. Job growth is available to all by increasing contribution against known factors. Providing a common set of factors is one way CCAS achieves fairness in appraisal.
Equity in pay is achieved by making annual salary adjustments that move toward the same pay for the same contribution. This means that those who are underpaid for their contribution will have larger increases and those who are overpaid for their contribution will have smaller increases. In time this process will achieve equity in pay.
The CCAS will provide at least four important improvements:
- Promote increased fairness and consistency in the appraisal process;
- Improve ability to compensate and reward employees in a timely manner commensurate with their contributions to the organization;
- Better convey to employees the key factors associated with advancement in their job category; and
- Focus attention on measurable contributions and productivity.
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6. What changes have been made to veteran's preference?
Answer: We have maintained veteran’s preference throughout the demonstration project. Demonstration projects do not have the authority to alter veteran’s preference.
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7. The acquisition demonstration project implies no actual loss but no pay increase for those who are overcompensated. Is this true?
Answer: Our system focuses on positive incentives and under the compensation system, no one’s salary can be reduced. However, just as in today’s system, management can undertake an adverse action to reduce salary or place someone in a lower graded position. Our method for these types of action is similar to those found in today’s system and contains the same type of employee protections.
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8. If pay is broadbanded, will there be any more promotions by grade?
Answer: Under the broadband system, promotions will only occur between broadbands. Salary increases within a broadband will be accomplished seamlessly using a pay adjustment. This will allow employees to increase their salary within a broadband level without the necessity of a promotion action.
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9. For the normal cost of living increases that the President declares - how does this play into AcqDemo? The GS pay scale changes based upon the cost of living increases. Do the broadbands change based on cost of living increases? Do employees receive cost of living increases or is this now part of the promotions based on contributions?
Answer: As a point of clarification, GS pay adjustments authorized under 5 U.S.C. 5303 are based on the cost of labor, not the cost of living. GS pay adjustments are linked to changes in the Employment Cost Index (ECI). The ECI measures the overall rate of change in employers’ compensation costs in the private and public sectors, excluding the Federal Government. The ECI does not measure the cost of consumer goods and services. These adjustments are in no way tied to an inflation index. They are an attempt to bring federal pay in line with private sector pay. Each year the broadbands will be adjusted upward to be equivalent to the new GS pay scale which will be changed by the general pay increase. The demonstration project includes these adjustments in the pay pool to be allocated through the contribution-based compensation and appraisal system. This adjustment, along with the minimums guaranteed each agency must provide, establish a pool of over 5% which is set aside to specifically fund employee pay increases. This represents a larger amount than currently available for employees. Within a broadband, employees can receive salary increases which can take them to the top of the broadband level without a promotion. We believe the ability for employees to have their salary increased in this seamless manner will be of great benefit to them and the organization. The only employees who would be at risk of not receiving their full general pay increase would be those who are contributing at a level much less than would be indicated by their contribution.
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10. How do we go to a higher pay band (get promoted)?
Answer: Promotions under the demonstration project happen the same way they occur in the GS system. Most promotions will be competitive, but we have retained the current capabilities to achieve noncompetitive promotions. However, by utilizing broadbands, employees can receive salary increase without having to receive a promotion. Within a broadband, employees can receive salary increases which can take them to the top of the broadband level without any type of promotion. We believe the ability for employees to have their salary increased in this seamless manner will allow them to be rewarded for their contribution to the organization, without some of the limitations found in GS.
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11. If you are at the top of the pay band, what benefit is the demonstration project?
Answer: If you are at the top of your broadband level, you can receive the full general pay increase since we will adjust the bands up each year according to the General Pay Increase (GPI). In addition, you will be eligible for yearly cash awards that could help offset the limitation of being at the top of your broadband if your contribution indicates you should receive a larger increase than the GPI. The demonstration project creates a pool of money equivalent to at least 2% of each employees’ salary to be used for increases in base pay over and above the general pay increase. The current system does not budget or provide any dollars for increasing people’s salary who are at the top step of their GS grade. This means that in the demonstration project, employees at step 10 have a minimum of an extra 2% available to be used to increase their compensation.
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12. Is the locality pay based on contribution also?
Answer: Locality pay is not included in the pay pool. Everyone in the demonstration project continues to receive any and all locality pay increases.
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13. How is this going to impact my high 3?
Answer: We are prohibited by law from proposing any changes to the retirement system. Retirement calculations will continue to be determined as they are today, with any base salary increases you receive under the demonstration project counting toward your high 3.
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14. When should supervisors and employees sit down and discuss the expectations of contribution for the appraisal period? What should be discussed during this meeting?
Answer: The CCAS cycle begins on October 1st each year. Supervisors and employees should plan to meet together soon after the cycle beings and review the employee's career path, broadband level, factors, and weights (if applicable). Together they should agree on what types of contributions the employee will plan to make over the next rating cycle. The supervisor is also encouraged to review with each employee the expected contribution level (OCS range) corresponding to the employee's current base salary. Remember that the OCS range may change when employees receive their pay adjustments in January. Any changes to the expected contribution level, due to salary increase, should be discussed when the supervisor and employee review the Part I, the CCAS appraisal form, which details the CCAS assessment results. Remember that the AcqDemo encourages frequent and informal feedback throughout the appraisal cycle.
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15. AcqDemo is a demonstration project. What happens at the end of the demonstration period?
Answer: The Federal Register requires that at the end of the demonstration period, the project be reexamined for: (a) permanent implementation; (b) modification and additional testing; (c) extension of the test period; or (d) termination.
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