AcqDemo Implementation of the 2017 Regulation for Employees

1. AcqDemoImplementation of the 2017 RegulationforEmployees DoD Civilian Acquisition Workforce Personnel Demonstration Project (AcqDemo) Fall 2017

2. Introduction • Administration, Expectations and Parking Lot • Administration • Sign in • Briefing Timing • Introductions • Expectations • Parking Lot • Ground Rules & Logistics • Rest Rooms • Breaks • Cell Phones / Other Electronic Devices • Questions and Parking Lot Review

3. Introduction Topics of Discussion • FRN Highlights • Classification Changes • Recruitment and Staffing Initiatives • Pay Administration • Contribution-Based Compensation and Appraisal System (CCAS) • Employee Development • Transition Timing and Support

4. FRN Highlights AcqDemo Purpose To enhance the quality, professionalism, and management of the DoD acquisition workforce through improvements in the efficiency and effectiveness of the human resources management system. It strives to support DoD’s efforts to create a professional, agile, and motivated workforce that consistently makes smart business decisions, acts in an ethical manner, and delivers timely and affordable capabilities to the warfighter.

5. FRN Highlights FRN Effective Date • Original design began in 1996 • Based on feedback from participating organizations and employees, AcqDemo is undergoing its largest update since the inception of the program • Updated FRN became effective 9 November 2017

6. FRN Highlights Program Eligibility Bargaining Unit Requirements / Rights Locality Pay Classification Process What’s NOT Changing Contribution-based Appraisal Steps Program Purpose All remain the same! CCAS Payout Calculations Appraisal Cycle Date Range Broadbands and Pay Ranges Competitive vs. Non-Competitive Actions

7. FRN Highlights 3 Factors Expanded Supervisory and Managerial Probationary Periods Supervisory & Team Leader Cash Differentials What IS Changing New Direct Hire Appointment Authorities Accelerated Compensation for Developmental Positions Expanded Detail and Temporary Promotion Length Additional Very High Score Options RIF Based Primarily on Performance Quality of Performance Rating

8. Classification Changes Classification and Appraisal Factors Changing from 6 to 3 to reduce redundancy and time investment needed for appraisal decisions The new Factors are: • Job Achievement and/or Innovation - qualifications, critical thinking, calculated risks, problem solving, leadership, supervision, and personal accountability • Communication and/or Teamwork - communication, both verbal and written; interactions with customers, coworkers, and groups; and assignments crossing functional boundaries • Mission Support - understanding and execution of organizational goals and priorities; working with customers to develop a mutual understanding of their requirements; monitoring and influencing cost parameters or work, tasks, and projects; and establishing priorities that reflect mission and organizational goals

9. Classification Changes Factor Mapping Leadership/Supervision Job Achievement &/or Innovation Problem Solving Customer Relations Mission Support Resource Management Teamwork/Cooperation Communication &/or Teamwork Communication

10. Classification Changes Maximum Broadband Level • Each AcqDemo position will now identify both current and full performance broadband levels in its career path • Candidates are selected competitively or through merit promotion for the lower broadband level • May be advanced to maximum broadband level without further competition • Maximum broadband level based on full performance level of position • Pay is capped at the maximum rate for the employee’s current broadband level

11. Recruitment and Staffing Discussion Topics • Expanded Supervisory and/or Managerial Probationary Periods • Expanded Detail and Temporary Promotion Authority

12. Recruitment and Staffing Expanded Supervisory and/or Managerial Probationary Periods • New supervisors not having previously completed a supervisory probationary period will be required to complete a 1-year probationary period • Additional supervisory probationary period of 1 year may be required when officially assigned to a different supervisory position constituting a major change in supervisory responsibilities

13. Recruitment and Staffing Expanded Supervisory and/or Managerial Probationary Periods • Example – Moving from a journeyman level supervisory acquisition position to a Critical Acquisition Position (CAP) or moving from a Critical Acquisition Position to a Key Leadership Position • COMPONENT EXAMPLES ADDED HERE

14. Recruitment and Staffing Expanded Supervisory and/or Managerial Probationary Periods • Employee may be returned to a comparable non-supervisory position at any time during the probationary period for conduct, supervisory contribution and/or performance reasons • Basic pay of non-supervisory position must be equal to that of the position held prior to placement in the supervisory position

15. Recruitment and Staffing Expanded Detail and Temporary Promotion Authority • Grants authority for non-competitive details and temporary promotions to higher broadband level positions for up to one year • Length increased from 120 day limit to not to exceed 1 year within a 24-month period • Applies to temporary promotion/detail actions among demonstration project positions

16. Pay Administration Discussion Topics • Compensation Management • Pay Retention • Accelerated Compensation for Developmental Positions (ACDP) • Supervisory and Team Leader Cash Differentials

17. Pay Administration Compensation Management – Philosophy • AcqDemo’s compensation philosophy embraces three basic principles: • Ensure adequate pay for the duties of the position • Recognize individual competency achievements • Reward contribution to mission • The program’s design incorporates several pay flexibilities to support this compensation philosophy

18. Pay Administration Pay Retention • The 50% GPI annual pay adjustment may be reduced or denied if most recent: • Quality of performance rating is “Unacceptable” ~ Additional Component / Agency policy may apply ~

19. Pay Administration Accelerated Compensation for Developmental Positions (ACDP) • ACDP employees: • Are in DAWIA-covered positions OR positions that support DAWIA-covered positions at least 51% of the time • Classified to NH I, II, and III broadband levels • Participate in formal training programs, internships, or other developmental capacities • Demonstrate successful or better growth and development in job-related competencies • Exceed contribution expectations associated with their EOCS ~ Additional Component / Agency policy may apply ~

20. Pay Administration Accelerated Compensation for Developmental Positions (ACDP) • Provides opportunity to increase pay twice per CCAS appraisal cycle • Cannot be less than 6 months between increases • Basic pay increase may not exceed 10% • Increase in pay will trigger an increase in employee’s EOCS • ACDPs will not be funded by pay pool allocations ~ Additional Component / Agency policy may apply ~

21. Pay Administration ACDP Career Ladder Example Promotion to Max Broadband Level Beginning Year #4 10% Increase in Base Pay = $64,662 New EOCS = 63 ACDP Adjustment Beginning Mid-Year #3 10% Increase in Base Pay = $58,784 CCAS Adjustment Beginning Year #3 New EOCS = 58 10% Increase in Base Pay = $53,440 New EOCS = 53 ACDP Adjustment Beginning Mid-Year #2 10% Increase in Base Pay = $48,82 CCAS Adjustment Beginning Year #2 New EOCS = 49 10% Increase in Base Pay = $44,165 New EOCS = 44 ACDP Adjustment Beginning Mid-Year #1 10% Increase in Base Pay = $40,150 New EOCS = 39 New ACDP Placement Beginning Year #1 Starting Position = NH II / Max Broadband Level Position = NH III Base Pay = $36,500 and EOCS = 34

22. Pay Administration Supervisory and Team Leader Cash Differentials • Intended to incentivize and compensate supervisors and team leaders • A cash differential is NOT included as part of basic pay • Can be effectively applied when: • Inequities exist between supervisory and non-supervisory subordinate pay • Positions are extremely difficult to fill • Organizational level and scope, difficulty, and value of position warrants additional compensation • Supervisory differential may be between 0% and 10% of basic pay • Team leader differential may be between 0% and 5% of basic pay • Reviewed annually with CCAS Assessment to validate continuing need • May be terminated or reduced ~ Additional Component / Agency policy may apply ~

23. Contribution-Based Compensationand Appraisal System (CCAS) Discussion Topics • Factors • Very High Score • Quality of Performance • Reduction-In-Force (RIF)

24. Contribution-Based Compensationand Appraisal System (CCAS) Factors • 6 factors revised to 3 new factors • Job Achievement and/or Innovation • Communication and/or Teamwork • Mission Support • For contribution scoring purposes, the 3 factor scores are averaged to determine employee’s OCS Contribution plans should be analyzed, and possibly modified, to ensure they are targeting the proper Expected Contribution Range (ECR) for each employee based on the new factor descriptors.

25. Contribution-Based Compensationand Appraisal System (CCAS) Very High Score • Very High scoring now has 3 options – High, Medium and Low with corresponding numerical scores • Factor level descriptors are available to define Very High Score at the mid-level • Same for all 3 factors ~ Additional Component / Agency policy may apply ~

26. Contribution-Based Compensationand Appraisal System (CCAS) Quality of Performance • CCAS now includes assessment of the quality of performance an employee demonstrates in achieving his/her expected contribution results during an appraisal cycle • Complies with title 10, U.S.C 1597(f), Reduction in Force (RIF) rules for DoD • Quality of Performance rating assigned to each factor in addition to contribution factor scores • Average of three performance factor ratings translates to the annual rating of record for employee development, selection, and RIF

27. Contribution-Based Compensationand Appraisal System (CCAS) Quality of Performance — Level Definitions ~ Additional Component / Agency policy may apply ~

28. Contribution-Based Compensationand Appraisal System (CCAS) Quality of Performance – Level Values • Quality of performance appraisal levels are averaged and the average translates to the annual rating of record using the Rating Criteria, below:

29. Contribution-Based Compensationand Appraisal System (CCAS) Reduction in Force (RIF) • Congressional mandate to initiate separations in RIF based primarily on performance • A “Quality of Performance” rating of Outstanding (5), Fully Successful (3), or Unacceptable (1) added to the assessment process and becomes the annual rating of record • 1st retention factor = Average of the raw averages of the 2 most recent ratings of record within the 4-year period immediately preceding RIF rounded to the nearest tenth of a decimal point • Remaining retention factors of veterans’ preference and RIF service computation date follow in that order

30. Contribution-Based Compensationand Appraisal System (CCAS) Additional Changes to RIF Procedures • Provisions for a more refined competitive area • Tenure Groups 1 and 2 have been combined into one tenure group—Tenure Group 1 • No additional years of service based on contributionor performance appraisal • Displacement limited to an employee’s current career path, broadband level, and one broadband level below in the same career path • Exception: Broadband Level 1 employees and those with a compensable service connected disability of 30% or more • Assignment rights of employees with an unacceptable current contribution/performance assessment is to a position held by another employee with an unacceptable contribution assessment.

31. Transition and Support Discussion Topics • Summary • Timeline • Support • Questions • Course Evaluation

32. Transition and Support Transition Summary • Factors for Classification and Appraisal • 6 Factors changed to 3 • “Quality of Performance” rating added • Maximum Broadband Level data element added to PRD • Maximum Broadband Level added for career ladder positions • PRDs will need to be updated • Recruitment and Staffing • Direct Hire Authority • Expanded Supervisory and/or Managerial Probationary Period • Revised application of Veterans’ preference • Expanded detail and temporary promotion authority • Pay Administration • Compensation Strategy • ACDP added • Supervisory and Team Lead Pay Differentials • Student Intern Relocation Incentive • CCAS Changes • Overall Contribution AND Performance ratings required • Additional Very High Score options added • Contribution Plans may need to be updated

33. Transition and Support Transition Timeline • Component Implementation - XXXX

34. Transition and Support Support • COMPONENT CONTACT INFO HERE • LINK TO TRAINING CONTENT • Web-based Videos • Transition Overview • Classification • Recruitment • Performance and Contribution • Pay Administration • Job-Aids • 6 to 3 Factors • Quality of Performance • Direct Hire Authorities

35. AcqDemo Implementation of the 2017 RegulationFall 2017 Questions?