Sec. 1104. Personnel authorities related to the defense acquisition workforce
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Chapter 87 of title 10, United States Code, is amended by inserting after section 1762 the following new section. The Secretary of Defense may establish, and from time to time adjust, a special system of personnel programs under the authorities provided by this section for employees in the acquisition workforce of the Department of Defense and supporting personnel assigned to work directly with the acquisition workforce. The Secretary of Defense may determine which employees who meet the requirements in subparagraphs
(A)and
(B)of subsection (k)(1) are covered by system established under this section, subject to the requirements in subsection (i). A determination by the Secretary under paragraph
(1)to cover a category of employees under a system established under this section may not take effect until— a general notice of the proposed coverage is provided to affected employees; and a period of 30 days has elapsed from the date of the notice, during which those employees (for their representatives) shall be provided an opportunity to provide comments. The Secretary of Defense may determine classification and fix rates of basic pay for covered employees without regard to chapter 51 and subchapter III of chapter 53 of title 5, subject to the following requirements: Broadband or classification levels under the system shall be linked to specific levels of the General Schedule and associated minimum and maximum rates of basic pay. Rates of basic pay fixed under this subsection may not exceed the maximum rate of basic pay for a position at GS–15 of the General Schedule under section 5332 of title 5, except for a retained rate established under section 3594 or 5363 of such title. Covered employees shall receive locality-based comparability payments under section 5304 of title 5 on the same basis as if they were in a General Schedule position, with rates of basic pay fixed under this subsection treated as scheduled rates of basic pay. A covered employee shall be treated as if the covered employee is in a General Schedule position for the purposes of determining eligibility under the following provisions of title 5: The pay retention provisions in sections 5363-5366. Section 5545(d) (relating to eligibility for hazardous duty differentials). Sections 5753-5755 (relating to recruitment, relocation, and retention bonuses, and supervisory differentials). Section 5941 (relating to allowances based on living costs and environmental conditions for employees stationed in parts of the United States outside the continental United States or Alaska). In applying the provisions of chapter 43 (relating to performance appraisal), chapter 45 (relating to incentive awards), and chapter 75 (relating to adverse actions) of title 5 to a covered employee, the Secretary of Defense— shall exclude from the provisions in chapters 43 and 75 dealing with a reduction in grade any reduction in broadband or classification level under the system established under this section, if such reduction in broadband or classification level is the result of a covered employee's rate of basic pay falling below the minimum rate of basic pay for the level to which the covered employee is assigned (because the covered employee did not receive the full amount of an increase in the rate of basic pay based on inadequate performance or contributions); and may provide awards that are integrated within the system of providing performance-based or contribution-based salary adjustments without regard to the limitations on awards in subsections
(a)and
(b)of section 4502. In applying the provisions of chapter 31 (relating to employment), chapter 33 (relating to examination, selection, and placement, chapter 43 (relating to performance appraisals), chapter 71, and chapter 75 of title 5 to a covered employee, the Secretary of Defense may act without regard to the following provisions: Section 3111 (relating to acceptance of volunteer service), to the extent necessary to allow volunteer service under the provisions of a voluntary emeritus program established by the Secretary for covered employees. Section 3308 (relating to examination for the competitive service), to the extent necessary to accommodate the requirement for a college degree appointment as part of a scholastic achievement program established by the Secretary for covered employees. Section 3317(a) (relating to competitive service registers) and section 3318(a) (relating to competitive service selection). Subchapter I of chapter 33 (other than sections 3303 and 3328), to the extent necessary to structure streamlined external recruitment and appointment programs that afford the swiftest and best access to qualified candidates for direct appointment to positions covered by this chapter. Section 3341(b) (relating to details within executive or military departments). Section 4304(b) (relating to OPM review of agency performance appraisal systems). Sections 7105(a)(2)(E), 7114, and 7116, to the extent those provisions are inconsistent with this section or would prohibit the Department or a labor organization from unilaterally terminating negotiations over whether the system will apply to employees represented by a labor organization or would allow for review of such a termination. Section 7119 (relating to negotiation impasses and the Federal Service Impasses Panel), to the extent it gives the Federal Service Impasses Panel jurisdiction to resolve impasses referred to it by either party or both parties during or after implementation of the system. Section 7512(4) (relating to adverse actions), to the extent necessary to exclude a conversion from a General Schedule position for which a special rate of pay is in effect under section 5305, or similar provision of law, to a rate of pay under the system that does not result in a reduction in the covered employee's total rate of pay. A volunteer under a voluntary emeritus program established by the Secretary of Defense for covered employees shall be considered to be an employee of the Federal Government for the purposes specified in section 1588(d) of this title. The Secretary of Defense may waive application of regulations of the Office of Personnel Management to a system established under this section to the same extent that such regulations were waived for the demonstration project that applied to certain employees in the Department of Defense acquisition workforce under section 1762 of this title as of the day before the date of the enactment of this section. The Secretary of Defense shall prescribe regulations to carry out the system of personnel programs established under this section. An employee within a unit with respect to which a labor organization is accorded exclusive recognition under chapter 71 of title 5 shall not be covered by a system established under this section unless the labor organization and the Department of Defense have entered into a written agreement covering participation in such system. If a labor organization is accorded exclusive recognition for a newly recognized unit that includes employees who are designated as covered employees before being included in an appropriate unit under section 7112 of title 5, the labor organization has the right to determine that affected employees (including vacant positions) will be removed from such system and placed under the system that would otherwise apply, under applicable law and regulation. If a labor organization notifies the Secretary of Defense in writing of its determination to remove such an employee (or vacant position) from a system established under this section, the removal may not take effect earlier than 6 months after the date of the receipt by the Secretary of the written notification, unless there is an agreement by the labor organization and the Secretary for an earlier date. For purposes of section 7117(a)(1) of title 5, the duty to bargain in good faith with a labor organization regarding a matter arising under a system established under this section shall not extend to any matter relating to the establishment of rates of pay or any other matter which is the subject of any regulation of the Secretary regarding the system in the same manner as if the regulation were a Government-wide regulation. Section 7117(c) of title 5 does not apply to a determination by the Secretary that a matter is the subject of regulations prescribed under this section by the Secretary. An employee who, while continuously employed, moves from a position as a covered employee to a General Schedule position— shall be treated as if the employee were in a General Schedule position immediately before such movement for the purpose of applying the promotion provision in section 5334(b) of such title; and shall be converted to an equivalent level of the General Schedule and rate of basic pay immediately before such movement, under regulations prescribed by the Director of the Office of Personnel Management, for the purpose of applying paragraph (1). In this section: The term covered employee means an employee who— is— in the acquisition workforce of the Department of Defense; or is a supporting employee assigned to work directly with the acquisition workforce; would be in a General Schedule position, except for the exercise of the authority under this section; and is designated by the Secretary of Defense to be covered under a system established under this section in accordance with subsection (b). The term General Schedule position means a position to which subchapter III of chapter 53 of title 5 applies. . Section 1762 of such title is repealed. The table of sections at the beginning of subchapter V of chapter 87 of such title is amended by striking the item relating to section 1762 and inserting the following new item: “1763. Special system of personnel authorities related to the acquisition workforce.”. The system established under the demonstration project authority under section 1762 of title 10, United States Code, as in effect on the day before the date of the enactment of this Act, shall be considered a system established under section 1763 of title 10, United States Code, as added by subsection (a). The demonstration project plan published in the Federal Register under section 1762 of title, United States Code, for the Department of Defense acquisition workforce, as in effect on the day before the date of the enactment of this Act, shall be considered to be a regulation prescribed by the Secretary of Defense under subsection
(h)of section 1763 of title 10, United States Code, as so added. The provisions of such plan related to the conversion of employees back to the General Schedule pay system shall not apply, except as necessary to allow for possible application of the General Schedule promotion rule in section 5334(b) of title 5, United States Code, pending the issuance of regulation under subsection (j)(2) of section 1763, as so added. The categories of employees covered on the day before the day of the enactment of this Act by the demonstration project referred to in paragraph
(1)shall be covered by a system established by the Secretary under section 1763 of title 10, United States Code, as so added, without regard to subsection
(b)of that section. This section and the amendments made by this section shall take effect on the first day of the first month beginning more than 60 days after the date of the enactment of this Act.