1. National Security Personnel System Opening Doors for Defense Transformation January 8, 2004
27-Jul-19

2. Agenda Background Key provisions of NSPS legislation
Relationship to existing civilian personnel system
The way ahead for DoD and the Army
Conclusion
27-Jul-19

3. The Army Civilian Workforce
499K Active Duty
205K USAR
350K ARNG
Key civilian functions
221K APF US
26K Foreign National
28K NAF
Logistics
Medical
Engineering, Science IT
Administration
BASOPS, MWR
MANY DOD CIVILIAN HR SYSTEMS
US Civil Service
6 main FN systems
Intelligence HR system
DoD NAF HR system
Acquisition Demo
5 Laboratory Demos
27-Jul-19

4. NSPS Overview
Authority for DoD civilian personnel system: flexible, contemporary, streamlined
National Defense Authorization: authority, framework, key areas
System details built on Demonstration Project Best Practices for staffing, performance management, job classification
System details to be built by DoD work groups for labor relations, discipline, appeals, premium pay
Preserves civil service principles and veterans’ preference -- in law
Respects collective bargaining -- in law
Opportune timing: high projected losses, keen competition
Gives DoD opportunities to standardize as well as gear to mission
Phases implementation over a two year period
OSD mandate
27-Jul-19

5. Building the Civilian HR System
Legal Basis
Regulator
Implementer
Federal Civil Service, US Code Title 5
Office of Personnel Management
Merit Systems Protection Board
Federal Labor Relations Authority
Agencies incl DoD
Mil Services
Before NSPS
National Defense Personnel System, US C Title 5, Ch 99
Secretary of Defense and OPM, with collaboration by employee reps at national level
Limited role for MSPB, FLRA
Federal Civil Service e.g., allowances, leave, training, benefits +
Mil Services
After NSPS
27-Jul-19

6. A System in Transformation
Function
Current System
NSPS Concept
Structure
Rigid job classification structure: GS system has 15 grades/8-9 grade levels for an occupation. Employee works within job grade level or else competes for promotion.
Banded to 3-4 levels. Employee works to capability within broader range of mission needs. Fewer competitive promotions.
Acquire
Selection forced from ranked list of candidates appointing authorities.
Best/Highly qualified/Qualified group ranking: select from within highest group. Simpler, fewer appointing authorities.
Distribute
Assign work/reassign employee within narrow, rigid job grade level.
Assign range of work/reassign employee within broad job level.
Sustain
Highly structured, rule driven pay within each grade and its pay steps. Performance appraisal has little impact on pay or career progression.
Manager/employee influence. Pay is contribution based and market sensitive. Appraisal is central to pay determinations and progression.
Separate
Reduction in force: main factor length of service.
Reduction in force: stronger role for performance.
BOTTOM LINE: Performance, contribution based system
- Makes it easier to hire, employ, compensate, reward high quality civilians
- Demands significant leader involvement
27-Jul-19

7. NSPS in Relation to Current System
No Change from Title 5:
Merit system principles
Rules against prohibited personnel practices
Benefits
Allowances for travel, subsistence
Training
Leave and work schedules
Other personnel systems in law
Current Lab Demos until FY 09
Anti-discrimination laws
BP Concepts for Collaboration:
Job classification
Staffing
Reduction in force
Performance management
Pay setting
In Development:
Labor relations
Appeals
Adverse actions
Premium pay
Continuing Component Responsibility for Policy and Execution:
Human resource management Leader Development - Support tools
Recruiting Worklife programs - Mobilization and
Workforce diversity Reorganization planning deployment
Career management Workforce planning
27-Jul-19

8. The Way Ahead for DoD
AMBITIOUS
27-Jul-19

9. The Way Ahead for Army: Fulfill OSD Mandate – Tailor for Army
Activity
Timeframe
Lead Agent
Assign two to OSD project office
Mid-Dec 03 thru Sep 05
AG1 CPP
Establish Army NSPS project office in AG1 CPP to manage work groups, IPR process for system changes, training, implementation
Jan 04-Sep 05+
AG1 CPP, PPDD
Plan, design Army implementation
- Incorporate lessons learned
Design Army program, regulation,
policy, IT changes (ID deliverables)
AG1 NSPS project office with M&RA.
Assisting: ARSTAFF, MACOM, Career Program Functional Chiefs
Manage change
2d qtr 04-Nov 05
CSA with G1, AG1 NSPS project office
Fulfill labor obligations
TBD: OSD green light
AG1CPP national level;
Units local level
Communicate with commanders, executives, managers, supervisors, employees
General DoD info from 12/03
More specific as available
AG1 CPP PPDD
AG1 NSPS project office
Train HR community, adjunct managers like FCRs/Performance Pool Mgrs, supervisors, employees
HR 2d/3d qtr FY04 or later
Adjunct: following HR
Workforce/Supv specifics: 60 days before implementation
AG1 NSPS project office with CHRA thru MACOM trainers.
Implement
TBD FY04/FY05
AG1
27-Jul-19

10. In Conclusion
Monumental change: bigger than Civil Service Reform Act of 1978
All management officials including military supervisors of civilians, career field proponents, institutional schools
Most DoD civilian employees
Most DoD/Army civilian HR rules, policies, business processes, IT tools
Historical opportunity; significant challenges
27-Jul-19

11. Backup Charts
27-Jul-19

12. Civil Service Merit Principles
Recruit qualified individuals from all segments of society; select and advance employees on the basis of merit after fair and open competition.
Treat employees and applicants fairly and equitably without regard to political affiliation, race, color, religion, national origin, sex, marital status, age, or handicapping condition. Do not violate their privacy or constitutional rights.
Provide equal pay for substantially equal work; reward excellent performance.
Maintain high standards of integrity, conduct, and concern for the public interest.
Use the workforce effectively and efficiently.
Retain employees on the basis of his/her performance. Separate employees who cannot/do not improve their performance to meet required standards.
Educate and train employees when it will result in better organizational or individual performance.
Protect employees from arbitrary action, improper political influence, and personal favoritism.
Protect employees against reprisal for lawful disclosures of information in “whistleblower” situations like when the employee reasonably believes there is illegal activity, gross waste of funds, abuse of authority, substantial danger to public health or safety.
27-Jul-19

13. Civil Service Prohibited Personnel Practices
Don't DISCRIMINATE on the basis of race, color, religion, sex, national origin, age, handicapping condition, marital status, or political affiliation.
Don't SOLICIT OR CONSIDER employment recommendations based on factors other than personal knowledge or records of job-related abilities or characteristics.
Don't COERCE the political activity of any person.
Don't DECEIVE OR WILLFULLY OBSTRUCT any person’s right to compete for employment.
Don't INFLUENCE any person to withdraw from competition for any position in order to improve or injure the employment prospects of any other person.
Don't GIVE UNAUTHORIZED PREFERENCE OR ADVANTAGE to any person to improve or injure the employment prospects of any particular employee or applicant.
Don't ENGAGE IN NEPOTISM. (I.e., as a public official, do not hire, promote or advocate the hiring or promotion of relatives within your agency.)
Don't THREATEN OR RETALIATE against employees or applicants who exercise their appeal rights or who disclose “whistleblower” information to an agency Inspector General or the Special Counsel, or – if not prohibited by law, national defense interest, or Executive Order -- in other channels.
Don't DISCRIMINATE based on personal conduct that is not adverse to the job performance of the employee, applicant, or others.
Don't VIOLATE or recommend violation of a veterans’ preference requirement.
Don't VIOLATE any law, rule, or regulation that implements or directly concerns the merit system principles.
27-Jul-19

14. NSPS: Key Provisions
Pay for Performance system: merit, equity, fairness, linkage to agency strategic plans
DoD authority to design rules for
Staffing flexibilities to hire, promote, reassign, remove
Reduction in force system emphasizing performance
Improved, streamlined premium pay
New ways to handle discipline, adverse actions
27-Jul-19

15. What May Be Different? KEY FEATURE CURRENT PRACTICE NSPS BP CONCEPT
Retention in reduction in force
Main factor:
length of service
performance level
Pay raise in grade
Longevity raises of 30% over 18 years, white collar; 17% over 6 years blue collar
Performance-driven raises
Annual pay adjustment
Government-wide % increase
How much starting pay?
Mainly structured, rule-driven
Mainly management decision: capability, market rate, performance
Shifting job assignments
Mainly within current grade level, specialty
Same, but several ‘grades’ are banded into a level, for more flexible use of employee performance capability
Qualifications
Mainly length of time gaining or using a skill, knowledge
To be determined: competency basis likely: Have it? To what degree?
27-Jul-19

16. NSPS: Key Provisions, cont.
New labor relations system, including bargaining at national level
Develop in collaboration with employee representatives
Base on collaborative, issue-based approach
Provide for third party review of disputes
Sunset in six years unless extended in law
New employee appeals process
Base on due process for all employees, standards and procedures consistent with merit system principles
Give right to appeal to full Merit Systems Protection Board
Provisional for seven years; then permanent unless Congress acts
27-Jul-19

17. Other Key NDAA Provisions for DoD
Permanent authority for voluntary early retirement and separation incentive payments for restructuring as well as reduction in force
Elimination of pay offset for reemployed annuitants
Higher Senior Executive pay cap
Term appointments and special pay for up to 2,500 highly qualified experts in DoD
Special pay and benefits for certain DoD employees abroad who are engaged in hazardous activities or specialized functions
27-Jul-19

18. DoD Best Practices Pay Features
White collar pay banding for assignment flexibility, growth in performance
Supervisor pay: extended pay ranges
Conscious management decisions about pay, both initially and with annual performance assessment
Pay retention for two years maximum
April Federal Register
27-Jul-19

19. BP Classification System
NONSUPERVISORY PAY BANDS
Career Group
Level 1
GS equivalency
Level 2
Level 3
Level 4
CG1: Science and Technology Research
GS 5-12
GS 13-15
Above GS % of GS-15 to maximum basic pay ES-4
N/A
CG2: Professional & Administrative Management
GS 5-11
GS-12-13
GS-14-15
Above GS-15
Note: may combine CG 1&2
CG3: Engineering, Science, Medical Support
GS 1-4
GS 5-7
GS 8-11
(Go to CG2 if GS-12+)
CG4: Business/Admini-strative Support
GS 8-10
(Go to CG2 if GS-11+)
27-Jul-19

20. BP Classification System Comparing Grade/Level and Pay Progression
BP proposed pay band/performance pay progression
GS grade/in-grade pay progression
CG2/Level 2
SES/ST
Above GS-15
CG2/Level 1
CG2/Level 3
GS-7
GS-5
GS-9
GS-11
GS-12
GS-13
GS-14
GS-15
ES/ST
$23,442 p/a min
$35,519 p/a min
$42,976 p/a min
$51,508 p/a min
$61,251 p/a min
$72,381 p/a min
$85,140 p/a min
$29,037 p/a min
$55,873 p/a max
$79,629 p/a max
$110,682 p/a max
$102,168 p/a min
Grade/Level threshold
Pay progression
KEY:
BP April Federal Register
27-Jul-19

21. DoD Best Practices Staffing Features
Broader rating groups for referral; more flexibility in selection choices
Probation up to three years upon appointment; one year upon change to job with higher earning potential
Emphasis on employee performance for retention in reductions in force
Veterans’ preference observed for referral and reduction in force
April Federal Register
27-Jul-19

22. DoD Best Practices Performance Features
At risk pay: General Pay Increase plus pay pool factor for equivalents of within grade increases, promotions, quality step increases, and bonuses
Seven standard performance factors
Performance review board decisions on pay advancement and performance incentives
April Federal Register
27-Jul-19