1490Federal Register / Vol. 64, No. 5 / Friday, January 8, 1999 / Notices
base pay will be given to all employees.
B. Out-Year Project Costs
The overall demonstration cost strategy will be to balance projected costs with benefits of the demonstration to bring about the projected improvements to the DoD Acquisition Workforce. The project evaluation results will be used to ensure that out-year project costs will not outweigh the derived benefits to the demonstration. A baseline will be established at the start of the project, and salary expenditures will be tracked yearly. Implementation costs, including the step and grade buy-in costs detailed above, will not be included in the cost evaluations, but will be accounted for separately.
The amount of money available for contribution increases in the out-years will be determined as part of the annual project evaluation process, starting with a review of the prior year’s data for each individual participating site by the Personnel Policy Boards for that site, and then will be reported to the DoD Acquisition Workforce Demonstration Project Executive Steering Committee. The funds determination will be based on a balancing of appropriate factors, including the following: (1) Historical spending for WGI, quality step increases, and in-level career promotions; (2) labor market conditions and the need to recruit and retain a skilled workforce to meet the business needs of the organization; and (3) the fiscal condition of the organization. Given the implications of base pay increases for long-term pay and benefit costs, the compensation levels will be determined after cost analysis with documentation of the mission-driven rationale for the amount. As part of the evaluation of the project by Military Services, participating Defense Agencies, DoD, and OPM, the base pay costs (including average salaries) under the demonstration project will be tracked and compared to the base pay costs under similar demonstration projects and under a simulation model that replicates General Schedule spending. These evaluations will balance costs incurred against benefits gained, so that both fiscal responsibility and project success are given appropriate weight.
C. Personnel Policy Boards
It is envisioned that each participating DoD Component shall either establish a Personnel Policy Board for the demonstration project that will consist of the senior civilian in each Program Management Office and Directorate within the Component and be chaired by the Executive Director or modify the charter of an existing group. In either case, the board is tasked with the following:
(a) Overseeing the civilian pay budget;
(b) Addressing issues associated with two separate pay systems (CCAS and GS) during the first phase of the demonstration;
(c) Determining the composition of the CCAS pay pool in accordance with the established guidelines and statutory constraints;
(d) Reviewing operation of the Component’s CCAS pay pools;
(e) Providing guidance to pay pool managers;
(f) Administering funds to CCAS pay pool managers;
(g) Reviewing hiring and promotion salaries;
(h) Monitoring award pool distribution by organization and DAWIA vs. non-DAWIA; and
(i) Assessing the need for changes to demonstration project procedures and policies.
Should any participating Component elect not to establish a Personnel Policy Board, the charter of an existing group within that Component must be modified to include the duties detailed above.
D. Developmental Costs
Costs associated with the development of the demonstration system include software automation,