Civil Service ReformH.R. 1836, Homeland Security Act, and Current Law

Report for Congress
Civil Service Reform: H.R. 1836,
Homeland Security Act, and Current Law
May 30, 2003
Barbara L. Schwemle
Analyst in American National Government
Government and Finance Division
Thomas J. Nicola
Legislative Attorney
American Law Division

Congressional Research Service ˜ The Library of Congress

Civil Service Reform: H.R. 1836,
Homeland Security Act, and Current Law
Summary
On May 8, 2003, the House Government Reform Committee ordered a bill to
be reported that would significantly change the system for managing civilian
personnel within the Department of Defense (DOD) and the National Aeronautics
and Space Administration (NASA). If passed, H.R. 1836 would also change the
compensation system for Senior Executive Service members throughout the
government and make other general systemic changes with regard to human
resources management.
In April 2003, DOD General Counsel William Haynes sent Congress a
significant reform proposal packaged as the “Defense Transformation for the 21^st
Century Act.” Among the changes proposed would be establishing a chapter within
Title 5 of the U.S. Code that would govern personnel management provisions unique
to DOD. H.R. 1836 incorporates most of these provisions. Some of the provisions
have been included in the House or Senate versions of FY2004 Defense
authorizations (H.R. 1588, S. 1050). In particular, H.R. 1588, as passed by the
House, incorporates Title I, most of Title II, and Title IV of H.R. 1836, as reported.
Representative Tom Davis, Chairman of the House Committee on Government
Reform, introduced H.R. 1836, known as the Civil Service and National Security
Personnel Improvement Act. By making changes in selected federal personnel
management statutory provisions, the bill is intended to improve the flexibility and
competitiveness of federal human resources management. Defense authorization
measures S. 297, as introduced, S. 1050, as reported, and H.R. 1588, as passed, echo
many of the government-wide provisions of Title II of H.R. 1836. Provisions similar
to those affecting NASA and the Securities and Exchange Commission (SEC) are
also in H.R. 1085, S. 610, and H.R. 658. Overall, these proposals would grant
agency heads more flexibility with respect to hiring, disciplining, and compensating
civilian personnel. Some would argue that the most significant of these changes
would relate to compensation. In each case, it is presumed that some form of pay
banding would result.
The Homeland Security Act of 2002 (P.L. 107-296, H.R. 5005) provides that
the Secretary of Homeland Security and the Director of the Office of Personnel
Management will work together to develop a system of personnel management
unique to the Department of Homeland Security (DHS). It also provides for some
government-wide changes in workforce management. The system is under
development.
The purpose of this report is to present, in tabular format, the alignment of H.R.
1836 with current statutory provisions and with those sections of the Homeland
Security Act of 2002 related to personnel management and unique to the Department
of Homeland Security. Since H.R. 1588 incorporates a significant portion of H.R.

1836, where appropriate, attention is called to the differences. If there are no notes,

the provisions of H.R. 1836 were passed by the House in H.R. 1588.

Contents
In troduction ......................................................1
H.R. 1836, as Ordered to Be Reported, Compared to Current Law and
Homeland Security Act.........................................4
Title I — Department of Defense National Security Personnel System........4
New Title 5, Chapter 99 — Department of Defense
National Security Personnel System...........................4
Title II - Department of Defense Civilian Personnel
(Includes Government-wide Provisions)...........................21
Title III — Provisions Relating to the Securities and Exchange Commission
and the National Aeronautics and Space Administration..............32
Subtitle A — Securities and Exchange Commission..................32
Subtitle B - National Aeronautics and Space Administration...........34
New Title 5, Chapter 98 — National Aeronautics and
Space Administration......................................34
New Subchapter I — Workforce Authorities...................34
New Subchapter II — Personnel Provisions....................47
Title IV — Human Capital Performance Fund..........................58
New Title 5, Chapter 54 - Human Capital Performance Fund...........58
Title V — Miscellaneous...........................................64
Personnel Provisions Unique to Proposed Defense Transformation for the ^st
21 Century Act .............................................65
Contracting for Personal Services................................65
Contracting for Security Guards and Firefighting Services.............67
Administrative Transformation..................................67

Civil Service Reform: H.R. 1836,
Homeland Security Act, and Current Law
Introduction
In April 2003, the Department of Defense (DOD) sent Congress a proposal^st¹
entitled the “Defense Transformation for the 21 Century Act.” The proposal is
principally directed to changes in the uniformed military personnel and acquisition
systems. However, it also would change the statutory bases for much of the civilian
personnel system. Policies related to general employment rules, compensation, and
post retirement re-employment would be affected. H.R. 1588 was reported from the
House Committee on Armed Services² incorporating most of the transformation³
proposal provisions. As passed by the House on May 22, 2003, H.R. 1588
incorporates, with few changes, Title I, most of Title II, and Title IV of H.R. 1836,
as ordered reported. DOD employs approximately 25% of the total federal civilian
workforce.⁴
The Homeland Security Act of 2002⁵ provides that the Secretary of Homeland
Security and the Director of the Office of Personnel Management will jointly develop
a system of personnel management unique to the Department of Homeland Security
(DHS). It also provides for some government-wide changes in workforce

¹ The text of the DOD proposal can be accessed at [http://www.defenselink.mil/dodgc/
lrs/docs/Transformation.pdf], visited May 6, 2003.
² U.S. Congress, House, Committee on Armed Services, H.Rept. 108-106 (other publication
data unavailable). See also CRS Report RL31916, Defense Department Original
Transformation Proposal: Compared to Existing Law, by Robert L. Goldich, Gary J.
Pagliano, Barbara L. Schwemle, and Thomas J. Nicola.
³ For further discussion of the provisions of the FY2004 Defense authorization legislation
(H.R. 1588), see CRS Report RL31805, Authorization and Appropriations for FY2004:
Defense, by Amy Belasco and Stephen Daggett. Also, the personnel provisions as proposed
by the Department of Defense compared with current law are set out in CRS Report
RL31916, Defense Department Original Transformation Proposal: Compared to Existing
Law, by Robert L. Goldich, Gary J. Pagliano, Barbara L. Schwemle, and Thomas J. Nicola.
⁴ U.S. Office of Personnel Management, Federal Civilian Workforce Statistics —
Employment and Trends as of March 2002. Available at [http://www.opm.gov/feddata/
index.asp], visited May 19, 2003.
⁵ P.L. 107-296, H.R. 5005; Nov. 25, 2002; 116 Stat. 2135-2321.

management. The system is under development.⁶ DHS employs approximately 6.3%
of the total federal civilian workforce.⁷
Representative Tom Davis, Chairman of the House Committee on Government
Reform, has introduced legislation (H.R. 1836) titled “Civil Service and National
Security Personnel Improvement Act.” The bill, by making changes in selected
federal personnel management statutory provisions, is intended to improve the
flexibility and competitiveness of federal human resources management. In addition
to the civilian personnel provisions from the DOD proposal, it would make
significant changes in the personnel management system at the National Aeronautics
and Space Administration (NASA), with limited amendments to the system at the
Securities and Exchange Commission (SEC). H.R. 1836 was ordered to be reported
by the House Government Reform Committee on May 8, 2003.
H.R. 1588, as passed, would incorporate Title I of H.R. 1836 with very few
differences. One difference is that at the proposed new 5 U.S.C. 9902(j) in H.R.
1588, Section 1121, would specify that the hiring flexibility authorities the secretary
could exercise would be those under 5 U.S.C. 4703(a)(1), (3), and (8). H.R. 1836,
as reported, identified the authorities as hiring flexibilities under Chapter 47 as a
whole. H.R. 1588, Title XI (Department of Defense Civilian Personnel), Subtitle A
(Department of Defense Civilian Personnel Generally), contains two sections that
were not part of H.R. 1836, as reported. Those sections related to military leave for
mobilized federal civilian employees (Sec. 1102) and common occupational and
health standards for differential payments as a consequence of exposure to asbestos
(Sec. 1103).
Two sections included in Title II of H.R. 1836, as reported, were not
incorporated. Those are H.R. 1836, Section 202, “Civil Service Retirement System
computation for part-time service” and H.R. 1836, Section 212, “Nonreduction in pay
while Federal employee is serving on active duty in a reserve component of the
uniformed services.”
Two proposals entitled “Federal Workforce Flexibility Act of 2003” have also
been introduced in the 108^th Congress by Senator George Voinovich (S. 129) and
Representative JoAnn Davis (H.R. 1601). They contain several of the government-
wide provisions of the proposed Federal Workforce Improvement Act of 2002 (S.
2651, 107^th Congress) that were not enacted as part of the Homeland Security Act of
2002. These bills would amend current law provisions on personnel management
demonstration projects; recruitment, relocation, and retention bonuses; critical pay;
civil service retirement system computation for part-time service; pay administration;
agency training; and annual leave. Although some provisions correspond to

⁶ For further narrative analysis of the Department of Homeland Security personnel
provisions, see CRS Report 31500, Homeland Security: Human Resources Management,
by Barbara L. Schwemle.
⁷ Employment and Trends, March 2002 does not provide DHS numbers. It is estimated that
DHS will be staffed by 170,000 federal civilian employees.

provisions in the newer proposals, for example, part-time service computation for
retirement, there has been no effort to incorporate these provisions into this report.⁸
The purpose of this report is to present, in tabular format, the alignment of the
provisions of H.R. 1836 with current statutory provisions and with those sections of
the Homeland Security Act of 2002 related to personnel management and unique to
the Department of Homeland Security. If H.R. 1836 or similar personnel
management legislation were enacted, there would be four chapters in Title 5 of the
U.S. Code that established personnel provisions and flexibilities unique to specific
agencies (the Internal Revenue Service, DHS, NASA, and DOD). Contributors to
this report are L. Elaine Halchin, Jon Shimabukuro, Patrick Purcell, Jack Maskell,
Bob Lyke, and Sharon Gressle.
The report is keyed off H.R. 1836. The other columns are “Current Law,”
which is Title 5 of the U.S. Code, unless otherwise noted, and related personnel
provisions unique to DHS under P.L. 107-296. Because H.R. 1588, as passed by the
House on May 22, 2003, incorporates significant sections of H.R. 1836, the H.R.
1588 (as passed by the House) sections are denoted in bold where appropriate. The
provisions are similar, if not identical. Differences are noted. It is expected this
report will be revised in the near future to key off the personnel provisions of Title
XI of H.R. 1588. H.R. 1588 is, presumably, the vehicle against which the Senate will
work in making amendments.
Although there has been some discussion about incorporating into other bills the
provisions of Title III of H.R. 1836 as they relate to the personnel systems in the SEC
and NASA, no such bills have been reported to date.
Given the scope of the proposed legislation, the authors and other contributors
have, in this first look, set out the basic provisions, hoping to provide the readers
with a type of roadmap to the bill. The reader should understand that every effort has
been made to be comprehensive in identifying statutes currently in effect which
would relate to the proposed changes in policy. However, there may be related
statutory provisions that we have not identified.

⁸ For a comparison of the proposals in S. 129 and H.R. 1601, see CRS Report RL31516,
Civil Service Reform Proposals: A Side-by-Side Comparison of S. 129 and H.R. 1601 (108th
Congress) with Current Law, by Barbara L. Schwemle and L. Elaine Halchin.

CRS-4
H.R. 1836, as Ordered to Be Reported, Compared to Current Law
and Homeland Security Act
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
c. 1. Short title: “Civil Service and National
Personnel Improvement Act.”
Title I — Department of Defense National Security Personnel System
ⁱ^{ki/CRS-RL31924}tional Security Personnel
^g/w
^s^.orstem Act.”
^le^ak Defense (DOD) NationalNo similar provisionSec. 841 of P.L. 107-296 - Establishment
^://wiki Personnel System.of Human Resources Management
^h^ttp System.
) In General. Would amend 5 U.S.C. Part III, SubpartAmended 5 U.S.C. Part III, Subpart I by
adding New Title 5, Chapter 99 — adding a new Chapter 97- Department of
tment of Defense NationalHomeland Security
ity Personnel System
No similar provisionNo similar provision
erm “Director” means the Director of the Office
ement; the term “Secretary” means
e Secretary of Defense.
No similar provision 5 U.S.C. 9701 - Establishment of human
ement system resources management system.

CRS-5
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Personnel Improvement Act P.L. 107-296
n General.No similar provision 5 U.S.C. 9701(a) - In General. The
nding any other provision of Title 5, theDHS Secretary and OPM Director have
cretary could, in regulations prescribed jointly withthe same authority to establish and adjust
director, establish, and from time to time adjust, aa new system, as that proposed for DOD.
ement system for some or all of
anizational or functional units of DOD.
he secretary certifies that issuance or adjustment of
ulation, or the inclusion, exclusion, or
ular provision therein, isNo similar provision
ntial to the national security, the secretary could,
ⁱ^{ki/CRS-RL31924}
^g/wrement in the preceding sentence that the
^s^.orgulation or adjustment be issued jointly with the
^le^ak
^://wiki regulations established pursuant to Chapter 995 U.S.C. 553 - Rule making exempts rules ofSame, except that internal rules of
^h^ttprnal rules of departmentalagency or departmental procedure fromdepartmental procedure “shall not be
view, consistent with 5Federal Register notice and requirements.subject to review” rather than “consistent
with 5 U.S.C. 553.”
stem Requirements. Any 5 U.S.C. 9701(b). System
stem under (a) would (1) be flexible;Requirements. Same, except as noted

;
, or otherwise affect — (A) theThe provisions of Title 5 which could not be
ment principles of merit and fitness setwaived, modified, or otherwise affected are
the principles of5 U.S.C. 2301 — Merit System Principles
based on merit, fair treatment without regard to5 U.S.C. 2302 — Prohibited Personnel
r non-merit considerations,Practices
for equal work, and protection of employees
ainst reprisal for whistleblowing; (B) any provision

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Personnel Improvement Act P.L. 107-296
to prohibited personnel
provision of law referred to in 5
provision of
w implementing any provision of law referred to in 5
(I) providing for
ment opportunity through affirmative
I) providing any right or remedy available
employee or applicant for employment in the
other provision of 5 U.S.C. Partuses “civil service” instead of “public
as described in subsection (c)); or (E) any rule orservice”
ⁱ^{ki/CRS-RL31924}ulation prescribed under any provision of law
^g/wraph;
^s^.orhat employees could organize, bargain
^le^ak as provided for in Chapter 99, and
^://wikih labor organizations of their own
^h^ttp in decisions which affect them, subject to thedoes not include “subject to the provisions
exclusion fromof Chapter 99”
rage or limitation on negotiability established
nt to law;
limited by any specific law or authority(5) not included; (5) in the DHS Act
able under Chapter 99 or bypermits category rating system

provision of Chapter 99 or any rule or regulation
is waivable under Chapter
cept as specifically provided for in this section;
ce management system that
corporates the following elements: (A) adherence to
) a fair,
ble, and transparent employee performance
sal system; (C) a link between the performance

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Personnel Improvement Act P.L. 107-296
anagement system and the agency’s strategic plan;
employee involvement in the
n and implementation of the system; (E) adequate
and retraining for supervisors, managers, and
ployees in the implementation and operation of the
ement system; (F) a process for
ongoing performance feedback and dialogue
ers, supervisors, and employees
hout the appraisal period, and setting timetables
uards to ensure that the
ⁱ^{ki/CRS-RL31924}ement of the system is fair and equitable and
^g/wee performance; and (H) a means for
^s^.orng that adequate agency resources are allocated
^le^akn, implementation, and administration of
^://wikie performance management system.
^h^ttpOther protected Title 5 provisions would be: 5 U.S.C. 9701(c) - Other Nonwaivable
is part referred to in(1) Part III — Employees (table of contentsProvisions. Same, except that Chapter 55
the extent not otherwiseof Part III precedes 5 U.S.C. 2101)Subchapter V - Premium Pay also is
, E, G, and HSubpart A — General Provisionsnonwaivable at DHS, as is Chapter 97 -

5 U.S.C. Part III; and Chapters 41, 45, 47, 55Subpart B — Employment and RetentionDepartment of Homeland Security.

cept Subchapter V thereof), 57, 59, 72, 73, and 79,Subpart E — Attendance and Leave
Chapter 99].Subpart G — Insurance and Annuities
Subpart H - Access to Criminal History
Information
(2) 5 U.S.C. Chapters
41 — Training
45 — Awards for Superior Accomplishments

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Personnel Improvement Act P.L. 107-296
47 — Personnel Research Programs and
Demonstration Projects
55 — Pay Administration (Subchapter V is
Premium Pay)
57 — Travel, Transportation, and
Subsistence
59 — Allowances
72 — Anti-discrimination; Right to Petition
Congress
73 — Employees’ Right to Petition Congress
ⁱ^{ki/CRS-RL31924}79 — Services to Employees waiver
^g/w
^s^.orimitations Relating to Pay Title 5, Chapter 53 (Pay Rates and Systems),5 U.S.C. 9701(d) Limitations Relating to
^le^ak in this section would constitute authority toSubchapter II (Executive Schedule PayPay. Nothing in this section constitutes
the pay of any employee who serves in anRates)authority (1) Same, except that it adds “or
^://wikiecutive Schedule position under 5 U.S.C. Chaptera position for which the rate of basic pay
^h^ttpI.is fixed in statute by reference to a section
or level under 5 U.S.C. Chapter 53,
Subchapter II;”
cept as provided for in (1), the total amount in aSame, except for “under title 10”; 5 U.S.C.(2) to fix pay for any employee or position
ear of allowances, differentials, bonuses,5307 - Limitation on certain payments capsat an annual rate greater than the
h payments paid under Titletotal pay, including all cash payments suchmaximum amount of cash compensation
employee who is paid under 5 U.S.C. 5376 oras allowances and awards to the annual rateallowable under 5 U.S.C. 5307 -
r other comparable payof basic pay for level I of the ExecutiveLimitations on certain payments in a year;
thority established for payment of Department ofSchedule ($171,900 in 2003); however, foror
or executive or equivalent employeesthose paid under 5 U.S.C. 5376 — Pay for
ceed the total annual compensationcertain senior level positions (including those(3) to exempt any employee from the
able to the Vice President.classified above GS-15, scientific andapplication of 5 U.S.C. 5307.

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Personnel Improvement Act P.L. 107-296
professional positions under 5 U.S.C. 3104,The cap for positions under 5 U.S.C. 5376
and SES); or 5 U.S.C. 5383 — Settingand 5383 was raised from level I of the
individual senior executive pay, the cap isExecutive Schedule to the total
the total compensation payable to the Vicecompensation of the Vice President by
President under 3 U.S.C. 104 - Salary of theSec. 1322 of P.L. 107-296.
Vice President ($198,600)
10 U.S.C. 1603 Basic pay (Defense
Intelligence Senior Executive Service and
Intelligence Senior Level positions)
ⁱ^{ki/CRS-RL31924}
^g/wNo similar provision concerning5 U.S.C. 9701(e) Same as DOD proposal,
^s^.oroyee Representatives collaboration and development of a newexcept that the DHS Secretary is not
^le^akhuman resources management system, butgranted authority to engage in
ary and OPM director would be required tolabor organizations having nationalcollaborative activities at a national
^://wikition of the proposed humanconsultation rights in connection with anyorganizational level above the level of
^h^ttpement system or adjustments to suchagency must be informed of any substantiveexclusive recognition. Moreover, DHS
stem to employee representatives. Thechange in conditions of employmentcollaboration procedures must ensure —
given at least 30 calendarproposed by an agency, and must be(1) in the case of individuals in a labor
s (unless extraordinary circumstances require earlierpermitted reasonable time to present theirorganization that has been accorded
make recommendations withviews and recommendations regardingexclusive recognition, representation by
These recommendations wouldchanges. See 5 U.S.C. 7113 -Nationalindividuals designated by or from such
iven full and fair consideration. Theconsultation rights. organization; (2) in the case of individuals
ary and director would notify Congress of those not within a bargaining unit,
which recommendations were representation by an organization which
ade but not accepted. They also would be required to represents a substantial number; (3) fair
oyee representatives for not and expeditious handling of the
ss than 30 calendar days to attempt to reach consultation and mediation process,
reement on whether and how to proceed with those including procedures by which, if the

CRS-10
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Personnel Improvement Act P.L. 107-296
which recommendations were number of employee representatives
accepted. The secretary or a majority of theexceeds 5, for representatives to select a
ployees representatives participating in thecommittee to meet and confer with the
ederalsecretary and Director of OPM; and (4)
diation and Conciliation Service to assist with theselection of representatives in a manner
s followingconsistent with the relative number of
tion, the secretary couldemployees represented by organizations or
ment any or all of the disputed parts if it wasother representatives involved.
termined that further consultation and mediation
d be unlikely to produce agreement. The secretaryTitle 5, chapter 71 - Labor-Management
ⁱ^{ki/CRS-RL31924}lop a method for employeeand Employee Relations is subject to
^g/wpresentatives to participate in any further planning orwaiver or adjustment in developing a new
^s^.or was implemented. Anyhuman resources management system.
^le^akedures necessary to facilitate collaboration would
^://wikiles of department procedureSee also 5 U.S.C. 9701(g) - Establishment
^h^ttpof Human Resources Management System
- Provisions Relating to Labor-
5 U.S.C. 553 - Rule making — waivesManagement Relations, which provides
Federal Register notice and commentthat nothing in the new section shall be
procedures for internal agency rules ofconstrued as conferring authority on the
procedure.Secretary to modify any provisions of
section 842 - Labor- Management
5 U.S.C. 7103(b) - Definitions; applicationRelations of P.L. 107-296. Sec. 642 grants
authorizes the President to issue an ordersome measure of protection to agencies,
excluding an agency or subdivision thereof ifbargaining units, and individuals from
the President determines that either has as aexclusion from coverage of Title 5
primary function intelligence, counter-Chapter 71- Labor Management and
intelligence, or national security work andEmployee Relations unless missions
that Chapter 71 procedures cannot be appliedchange to intelligence,

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Personnel Improvement Act P.L. 107-296
consistent with national security. Thecounterintelligence, or investigating
President may issue an order with respect toterrorism; and Sec. 1512 of P.L. 107-296 -
any agency, installation, or activity locatedSavings Provisions, which states that
outside the 50 states and D.C. if the Presidentcompleted administrative actions,
determines the suspension necessary in theincluding contracts, of an agency affected
interest of national security.by the DHS Act shall not be affected by
enactment of the Act, and, except as
otherwise provided in the Act, transfer of
personnel does not alter the terms and
conditions of employment, including
ⁱ^{ki/CRS-RL31924}compensation, of any transferred
^g/w employee.
^s^.or
^le^ak.C. 9902(f) — Provisions RegardingNo similar provision with respect to nationalNo similar provision, but Title 5, Chapter
evel Bargaininglevel bargaining, but see 5 U.S.C. 7111 -71 - Labor-Management and Employee
^://wiki human resources management systemExclusive recognition of labor organizations,Relations is subject to waiver or
^h^ttpand 5 U.S.C. 7114 - Representation rightsadjustment in developing a human
ees from anyand dutiesresources management system.

aining unit with respect to which a labor
anization was accorded exclusive recognition. For
such bargaining unit, the secretary could bargain at
exclusive recognition. Such
aining would be binding on all subordinate
aining units and DOD and its subcomponents; it
r collective bargaining
reements, except as otherwise determined by the
; would not be subject to further negotiations
purpose, except as provided for by the
; and would not be subject to review or

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Personnel Improvement Act P.L. 107-296
third-party dispute resolution procedures
cept as otherwise provided in the new
5 U.S.C. 7105 - Powers and duties of the
[Federal Labor Relations] Authority
) - Provisions Relating toTitle 5, Chapter 77 - “Appellate procedures”Sec. 841(a) created 5 U.S.C. 9701(f)
late Procedures. (1) Directs the secretary to (A)grants right to appeal agency disciplinaryProvisions Relating to Appellate
cess which provides that DODactions to the Merit Systems ProtectionProcedures.
ployees are entitled to fair treatment in any appealsBoard. Same with the following differences:
ⁱ^{ki/CRS-RL31924}t they bring in decisions relating to their — Expression as sense of the Congress
^g/wment; and (B) in prescribing regulations for anyrather than directive to the DHS Secretary
^s^.ors process the secretary would be required to — authority to issue appellate procedure
^le^akoyees are afforded theregulations is granted jointly to the DHS
and (ii) toward that end,Secretary and the OPM Director, not only
^://wikiwith the Merit Systemsto the Secretary as in DOD
^h^ttpoard before issuing any such regulations.
regulations establishing the appeals process (1)
t relate to any matters within the purview of Chapter — no requirement for independent review
would have to (A) providepanel
panel, appointed by the
esident, not including the secretary or assistant
or their subordinates; (B) be issued only after
ing the appropriate congressional committees;
onsulting with the Merit Systems Protection — no notification to appropriate
ard and the Equal Employment Opportunitycongressional committees
nsure the availability of procedures — consultation with Merit Systems
at (i) are consistent with the requirements of dueProtection Board only not MSPB and the
, to the maximum extentEqual Employment Opportunity

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ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
icable, for the expeditious handling of any mattersCommission
DOD; and (iii) modify Chapter 77
insofar as those modifications areTitle 5, Chapter 77 - “Appellate
ned to further the fair, efficient, and expeditiousprocedures”
DOD employees.is subject to waiver or adjustment in
developing a human resources
management system.
Provisions Related toWith the approval of the Office of PersonnelSec. 472. Similar voluntary separation
paration and Retirement IncentivesManagement (OPM), a federal agencyincentives authorized for the Immigration
ⁱ^{ki/CRS-RL31924}horizes the Secretary of Defense to offer (1) earlyundergoing restructuring or downsizing canand Naturalization Service and Border
^g/wees who are age 50 or older withoffer voluntary early retirement to employeesPatrol.
^s^.orears of service or any age with 25 years of servicein specific occupational groups,Sec. 1313(b) Made the changes that are
^le^ak of up to $25,000 toorganizational units, or geographic locationsnow law.

ees who retire or resign. Prohibits re-who are age 50 or older and have at least 20
^://wikiment within DOD for 12 months after receipt ofyears of service, or are any age and have at
^h^ttp unless prohibition is waived by theleast 25 years of service. Also with the
ary case-by-case. Requires anyone who is re-approval of OPM, a federal agency may offer
ed by the federal government within 5 years ofvoluntary separation incentive payments of
separation pay to repay the full amount to theup to $25,000 to employees who retire or
M review is required.resign. The full amount must be repaid if
individual is re-employed by the federal
government within five years.
5 U.S.C. 8336 - Immediate Retirement (Civil
Service Retirement System) and 5 U.S.C.

8414 - Early retirement (Federal Employees’

Retirement System)
Title 5, Chapter 35 -Retention Preference,
Voluntary Separation Incentive Payments,

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Personnel Improvement Act P.L. 107-296
Restoration, and Reemployment, Subchapter
II - Voluntary Separation Incentive Payments
(5 U.S.C. 3521-3525)
Provisions Relating toGenerally, a retired federal employee who isNo similar provision
ment: Provides that if a retired federalre-employed by the federal government may
ee who is receiving an annuity from the Civilnot receive a federal retirement annuity and a
Fund becomesfederal salary simultaneously. Sections 8344
ed by the Department of Defense, his or her(CSRS) and 8468 (FERS) of Title 5, U.S.C.
will continue. The employee will not accrueprovide that a retired federal employee who
ⁱ^{ki/CRS-RL31924} CSRS or FERS duringis receiving an annuity from the Civil
^g/wriod of re-employment.Service Retirement and Disability Fund who
^s^.oris re-employed by a federal agency, will have
^le^akan amount equal to the annuity deducted
from his or her pay. If re-employment lasts
^://wikimore than one year, the individual will be
^h^ttpeligible for a supplemental annuity for the
period of re-employment when he or she
retires.
ons relating to hiring — 5 U.S.C. 4703 - Authorizes OPM to conductNo similar provision; law stated that 5
section 9902(c), the secretary coulddemonstration projects. Subject to 4703,U.S.C. Chapter 47 could not be waived or
ercise hiring flexibilities that would otherwise bedemonstration projects are not limited by anymodified.

under 5 U.S.C. 4703.lack of specific Title 5 authority or by any
Title 5 provision or regulation which is
inconsistent with the action, including any
law or regulation relating to the methods of
establishing qualification requirements for,
recruitment for, and appointment to

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Personnel Improvement Act P.L. 107-296
positions.
No similar provision 5 U.S.C. 9701 - Sunset Provisions.
Provides that all authority of the Secretary
and OPM Director jointly to issue
regulations to establish and adjust the
DHS human resources management
system ceases to be available.
acting highly qualifiedSee counterpart for 9904(b) below.No similar provision
ⁱ^{ki/CRS-RL31924}perts.
^g/w
^s^.or
^le^akn General. The secretary couldP.L. 105-261, Sec. 1101 (1998) (5 U.S.C.No similar provision

out a program using the authority provided in (b)3104(a) note) - Defense Advanced Research
^://wikihly qualified experts in neededProjects Agency Experimental Personnel
^h^ttp the secretary.Management Program for Technical
Personnel granted the Secretary of Defense
for five years experimental special
management authority to facilitate
recruitment of eminent experts in science and
engineering for the Defense Advanced
Research Projects Agency.

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Personnel Improvement Act P.L. 107-296

5 U.S.C. 3104 - Employment of speciallyNo similar provision

ram, the secretary could — qualified scientific and professional
de the civil service andpersonnel
terms are defined in 55 U.S.C. 3104 note. Similar, but special
ard toappointment authority is limited to
provision of this title governing the appointment of“scientists and engineers” and “not more
ees to positions in DOD;than 20 scientific and engineering positions
for positions toin the Defense Advanced Research Projects
ees are appointed under (1) at rates not inAgency.” Same authority to prescribe basic
cess of the maximum rate of basic pay authorized forrate of pay, but no authority to increase basic
ⁱ^{ki/CRS-RL31924}pay by locality-based comparability
^g/wreased by locality-based comparability payments,payments.
^s^.ornding any provision of this title governing
^le^ak or classification of employees in the5 U.S.C. 3324 - Appointments to positions
^://wikiecutive branch; and classified above GS-15 (generally requires
^h^ttp any employee appointed under (1) payments inOPM approval)
sic pay within the limit applicable to the
ee under (d)(1) below.5 U.S.C. 3325 - Appointments to scientific
and professional positions (generally requires
OPM approval of qualifications)
5 U.S.C. 3326 - Appointments of retired
members of the armed services in the
Department of Defense (imposes certain
requirements on appointments of a retired
armed services member in the period within
180 days immediately following retirement
from the armed services) proposed for repeal,
see sec. 404)

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Personnel Improvement Act P.L. 107-296
5 U.S.C. 5376 - “Pay for certain senior- level
positions” generally limits pay to not less
than 120 percent of the maximum basic pay
rate for GS-15 and not greater than basic pay
rate for level IV of the Executive Schedule.
5 U.S.C. 5377 - “Pay authority for critical
positions” generally limits the maximum
basic rate to level I of the Executive
Schedule.
ⁱ^{ki/CRS-RL31924}
^g/wSee 5 U.S.C. 9502 - Pay authority for critical
^s^.orpositions and 5 U.S.C. 9503 Streamlined
^le^akcritical pay authority [in the Internal
^://wikiRevenue Service] which allows pay for up to
^h^ttpthe salary of the Vice President.
imitation on Term of5 U.S.C. 3104(c) note. Term of initialNo similar provision

appointment limited to 4 years with up to a 2
cept as provided in (2), the service of anyear extension
ee under an appointment made pursuant to this
ion may not exceed 5 years.
ary could, in the case of a particular
ployee, extend the period to which service is limited
up to one additional year if the secretary
termines that such action is necessary to promote
missions.

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Personnel Improvement Act P.L. 107-296
imitations on Additional5 U.S.C. 3104 note. Similar, but additionalSec. 841(a) (5 U.S.C. 9701(d))
ymentspayments may not exceed the least of (A)Limitations Relating to Pay of P.L. 107-
ments paid to$25,000; (B) the amount equal to 25 percent296 generally prohibits paying any
ee under this section for any 12-monthof the employee’s annual rate of basic pay;employee at a rate greater than the
od could not exceed the least of the following(C) the amount of the limitation applicablemaximum amount allowable under 5
Y 2004, which could befor a calendar year under 5 U.S.C. 5307(a). U.S.C. 5307 or exempting any employee
thereafter by the secretary, with aSame with respect to ineligibility for anyfrom 5 U.S.C. 5307, which generally
age increase equal to one-half of one percentagebonus, monetary award, or other monetarylimits total pay, including awards and
e by which theincentive.other cash payments, to level I of the
ment Cost Index, published quarterly by theExecutive Schedule, except for some high
ⁱ^{ki/CRS-RL31924}reau of Labor Statistics, for the base quarter of the5 U.S.C. 5307 - Limitation on certainlevel positions which are limited to the
^g/whe preceding calendar year exceeds thepayments limits the amount to cashsalary of the Vice President.
^s^.orment Cost Index for the base quarter of thepayments such as allowances and awards
^le^akear before the preceding calendar year. (B)plus salary to level I of the Executive
^://wikiee’sSchedule ($171,900 in 2003), except for
^h^ttp.some high level positions which are limited
ee appointed under this section wouldto the salary of the Vice President
ible for any bonus, monetary award, or other($198,600).
onetary incentive for service except for payments
ed under this section.Title 5, Chapter 45 - Incentive Awards
s Provisions
the event that the secretary terminates this program,
ee who, on the day before the
rmination of the program, is serving in a position
termination of the program does not terminate the
ee’s employment in that position before the
piration of the lesser of — (A) the period for which

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Personnel Improvement Act P.L. 107-296
ee was appointed; or (B) the period to which
ee’s service is limited under (c), including
extension made under this section before the
rmination of the program; and
rate of basic pay prescribed for the position
as the
ee continues to serve in the position without a5 U.S.C. 5363 - Pay retentionSec. 841(b) of P.L. 107-296 -
n service.Nonseparation or Nonreduction in Grade
or Compensation of Full-Time and Part-
Time Personnel Holding Permanent
ⁱ^{ki/CRS-RL31924}Positions generally prevents separation or
^g/wreduction in pay or grade for one year
^s^.orfollowing transfer to DHS
^le^ak
ment of older Americans.Generally, under 5 U.S.C. 8344 (CSRS) andNo similar provision

^://wikiould allow the Secretary of Defense to appoint8468 (FERS) a retired federal employee who
^h^ttprican citizens age 55 or older to positions in theis re-employed by the federal government
cepted service (i.e., not part of the competitive civilmay not receive a federal retirement annuity
ce) for a period not to exceed two years (plus aand a federal salary simultaneously. Under
ear reappointment).Thesection 203 of the Social Security Act (42
d not displace another DODU.S.C. 403), an individual under age 65 who
ee or be in reduction-in-force status from anreceives Social Security benefits and who
nd must be qualified for thealso is employed is subject to an “earnings
the Secretary.” An individualtest.” In 2003, a Social Security recipient
anunder age 65 has his or her Social Security
, pension, Social Security, retired pay or similarbenefit reduced by $1 for each $2 of earnings
ment could not have such payment reduced as ain excess of $11,520.

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Personnel Improvement Act P.L. 107-296
and benefits for10 U.S.C. 1605 - Benefits for certainNo similar provision
ees outside the United States [No (a)employees assigned outside the United
gnation appears in the text.] The secretary couldStates. (Provisions is similar, but authorizes
ees of DOD assignedproviding allowances and benefits from more
ctivities outside the United States and designatedstatutory sources and makes this authority
the secretary for the purposes of this subsection — effective only to the extent appropriations are
— (A) comparable to thoseavailable for this purpose.
the Secretary of State to members of the
reign Service under Chapter 9 of Title I of the
reign Service Act of 1980 or any other provision of
ⁱ^{ki/CRS-RL31924}) comparable to those provided by the
^g/wntelligence to personnel of the
^s^.orntral Intelligence Agency (CIA); and (2) special
^le^akand disability in the same
^://wiki the CIA Retirement Act and in50 U.S.C. 403r - Special annuity
^h^ttpA Act of 1949. Authority to paycomputation rules for certain employees’
se benefits is not limited to extent appropriationsservice abroad generally allows higher
annuity rates for overseas service.
mpact on Department of Defense CivilianNo similar provisionSec. 841(b)(3) of P.L. 107-296 -
Coordination Rule is identical to the
exercise of authority under the new Chapter 99proposed 5 U.S.C. 9905(b)(1), but there is
under any system establishedno counterpart to 5 U.S.C. 9905(b)(2).

ve to be in conformance
subsection. (2) No other
provision made by it,
lied in a manner so as to
rsede, or otherwise affect provisions of Sec.
cept to the extent that it does so by specific

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Personnel Improvement Act P.L. 107-296
Title II - Department of Defense Civilian Personnel
(Includes Government-wide Provisions)
cap5 U.S.C. 5542 - Overtime rates; computationNo similar provision
(a)(2) For an employee whose basic pay is at
ould amend 5 U.S.C. 5542(a)(2) by (1) inserting “thea rate which exceeds the minimum rate of
eater of” before “one and one-half”; and (2) bybasic pay for GS-10 (including any
“or the hourly rate of basic pay of theapplicable locality-based comparability
ⁱ^{ki/CRS-RL31924}ee” after “law)” the second place it appears.payment under section 5304 or similarprovision of law and any applicable special
^g/wrate of pay under section 5305 or similar
^s^.or
^le^akprovision of law), the overtime hourly rate of
pay is an amount equal to one and one-half
^://wikitimes the hourly rate of the minimum rate or
^h^ttpbasic pay for GS-10 (including any
applicable locality-based comparability
payment under section 5304 or similar
provision of law and any applicable special
rate of pay under section 5305 or similar
provision of law), and all that amount is
premium pay.
stem5 U.S.C. 8339 - Computation of annuity.No similar provision

mputation for part-time serviceEmployees covered by CSRS who work
ould amend 5 U.S.C. 8339 to clarify that CSRSpart-time before retiring experience
tirement annuities based in whole or in part on part-disproportionately large cuts in their
service are to be prorated only for the period ofretirement annuities as the result of a

CRS-22
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
sis.regulation adopted in response to the
Comprehensive Omnibus Budget
Reconciliation Act of 1986 (P.L. 99-272).
leave for mobilized federal civilian5. U.S.C. 6323 - Military leave; ReservesNo similar provision
ployeesand National Guardsmen
n General. Would amend 5 U.S.C. 6323 by
nating subparagraphs; and by inserting the
before the text beginning with “is entitled”:
ⁱ^{ki/CRS-RL31924}) performs full-time military service as a result of a
^g/w in support of a contingency
^s^.or 10 U.S.C. 101(a)(13).
^le^akive Date. The amendments made by (a) would
to military service performed on or after the act’s
^://wikim ent .
^h^ttp
l and health standards5 U.S.C. 5343 - Prevailing rateNo similar provision

ments as a consequence of exposuredeterminations; wage schedule; night
differentials
(c)(4) for proper differentials, as determined
) Prevailing Rate Systems. Would amend 5 U.S.C.by OPM, for duty involving unusually severe
inserting before the semicolon at the end: working conditions or unusually severe
hardship or hazard related to asbestos,hazards;
determined by applying
and health standards consistent
permissible exposure limit promulgated by the
of Labor under the Occupational Safety and

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Personnel Improvement Act P.L. 107-296
Rates. 5 U.S.C. 5545(d)5 U.S.C. 5545(d) - Night, standby, irregular,
inserting before the period at theand hazardous duty differential
hardship or(d) The Office shall establish a schedule or
ard related to asbestos, such differentials would beschedules of pay differentials for duty
applying occupational safety and healthinvolving unusual physical hardship or
the permissible exposurehazard.
ated by the Secretary of Labor under the
and Health Act of 1970.”
) Applicability. Subject to any vested constitutional
rty rights, any administrative or judicial
ⁱ^{ki/CRS-RL31924}termination after the act’s enactment date concerning
^g/w for a differential established under 5 U.S.C.
^s^.orbe based on occupational
^le^ak and health standards described in the
^://wiki (a) and (b).
^h^ttpncrease in annual student loan repayment5 U.S.C. 5379 - Student loan repaymentsNo similar provision
thority(b)(2)(A) repayments may not exceed $6,000
for any employee in any calendar year
ould amend 5 U.S.C. 5379(b)(2)(A) by striking
$10,000.
ation for cabinet secretaries of5 U.S.C. 5504 - Biweekly pay periods;No similar provision

ry departments, and heads of executive agenciescomputation of pay
basis
ould amend 5 U.S.C. 5504 by redesignating
adding at the end: “(2) OPM would
uidelines by regulation for exemptions to be

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ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
the heads of agencies under (c)(3). Such
idelines would provide for such exemptions only
ceptional circumstances.”
of individuals eligible toEligibility is restricted for the most part toNo similar provision
rticipate in the federal long-term care insurancefederal employees and annuitants, members
ram.of the uniformed services (including those
entitled to retirement or retainer pay), retired
extending eligibility tomilitary reservists at the time they qualify for
ees of the District of Columbia, toan annuity, and the spouse, surviving spouse,
ⁱ^{ki/CRS-RL31924}ees who have met the service butand (in some cases) family members.
^g/w minimum age requirement for title for an5 U.S.C. 9001 - Definitions (Long-Term
^s^.or, and reservists transferred to the retired reserveCare Insurance)
^le^ake 60 and so do not yet qualify for an
.
^://wiki
^h^ttp Hatch Act; Limitation on5 U.S.C. Chapter 73 - Suitability, Security,No similar provision

and Conduct, Subchapter III - Political
]Activities
) Clarification to Hatch Act
ee or individual who voluntarily
by
nsferring to an international organization in the
5 U.S.C. 3582(a)) would be
any loss of rights under 5 U.S.C.
V resulting from any
under 5 U.S.C. 7326), except that this
in the event that such

CRS-25
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
ee or individual subsequently becomes
ployed in the civil service. The preceding
ntence would apply to any complaint which is filed
before the Merit Systems Protection
er the act’s enactment date.
imitation on disclosure of certain records
any other provision of law, rule, or
ulation, nothing described in paragraph (2) or (3) of
on July 12, 2001 would be considered
ⁱ^{ki/CRS-RL31924}onstitute a routine use of records maintained by the
^g/w
^s^.or
^le^ak employee or individual” would mean any
^://wikiee or individual as referred to in 5 U.S.C. 7326;
^h^ttpvil service” would have the meaning given such

5 U.S.C. 2101; (3) “international organization”

given such term under 5
s given under 5 U.S.C. 552a(a).
Would substitute the
language for that found in Sec. 208 as
ee or individual who, before the
oyed in the office of the
Inspector General and
the United
in 5 U.S.C. 3582(a),
ent of the provisions of 5

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Personnel Improvement Act P.L. 107-296
cept that this section would not apply
ee or individual
becomes reemployed in the civil service.
ecutive Service and performance5 U.S.C. 5304. Locality-based comparabilityNo similar language
payments
ecutive Pay(g)(2) - Level III of the Executive Schedule
)(2) and (h)(2)(B). is the cap for locality pay for positions in the
BI and DEASenior Executive Service (SES); positions in
stem equivalent to the SES,the Federal Bureau of Investigation (FBI)
ⁱ^{ki/CRS-RL31924} the President’s pay agent, would notand Drug Enforcement Administration
^g/w pay.(DEA) SES; administrative law judges;
^s^.orcontract appeals board members; and
^le^akpositions not included in the general
schedule whose basic rates of pay do not
^://wikiexceed level IV of the Executive Schedule.
^h^ttp
.C. 5382.5 U.S.C. 5382. Pay for the Senior Executive
ould require the establishment of a range of ratesService
for the SES, subject to regulations(a) Requires the establishment of five or
the Office of Personnel Managementmore rates of basic pay for the SES; each
ecutive would be paid at one ofmember of the SES shall be paid at one of
rates within the range, based on individualthe rates.
ance, contribution to the agency’s performance,(b) The cap on basic pay is level IV of the
would be made under aExecutive Schedule. No similar language

orous performance management system.” The cap
basic pay would be level III of the Executive
agency whose performance appraisal

CRS-27
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Personnel Improvement Act P.L. 107-296
stem is certified as making meaningful distinctions
I of the Executive Schedule.
of a senior executive who transfers from a
ency to a noncertified agency would not be
ment restrictions18 U.S.C. 207(c)(2)(A)(ii). Applies post-No similar provisions
ould apply post-employment conflict of interestemployment conflict of interest provision
known as the one-year “coolingcommonly known as the one-year “cooling
ⁱ^{ki/CRS-RL31924}off” period (18 U.S.C. 207(c)(1)) to (in
^g/wecutive Schedule) those not paidaddition to those paid on the Executive
^s^.orhe Executive Schedule but who are compensated atSchedule) those not paid on the Executive
^le^ak equal to or greater than 96% of the rate ofSchedule but who are compensated at a base
for level II of the Executive Schedulerate of pay equal to or greater than the basic
^://wikiears after thepay for a level 5
^h^ttpactment of this Act, those persons who would haveon the Senior Executive Service. ($134,000
the restriction the day before the Actfor 2003)
at a base rate of pay
reater than a level 5 for the Senior
ecutive Service, $134,000 for 2003). Would amend
— Substitutes the phrase, “the
ation Act for FY2004” for a
ederal Employees Pay for
n elements of pay-for-performance5 U.S.C. Chapter 47 - Personnel researchNo similar provision

stems in demonstration projectsprograms and demonstration projects

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Personnel Improvement Act P.L. 107-296
y-for-performance system could not be initiated
te, unless it incorporates the following elements: (1)
rence to merit principles set forth in 5 U.S.C.
ee
ance appraisal system; (3) a link between
ements of the pay-for-performance system, the
ployee performance appraisal system, and the
ency’s strategic plan; (4) a means for ensuring
ⁱ^{ki/CRS-RL31924}ee involvement in the design and
^g/wmentation of the system; (5) adequate training
^s^.or for supervisors, managers, and
^le^akployees in the implementation and operation of the
^://wiki-for-performance system; (6) a process for ensuring
^h^ttpoing performance feedback and dialogue between
ers, supervisors, and employees throughout the
timetables for review; (7)
ive safeguards to ensure that the management of
system is fair and equitable and based on employee
eans for ensuring that
e agency resources are allocated for the design,
tration of the pay-for-
ance system.
ederal flexible benefits plan administrativeThere is no explicit authority for federalNo similar provision

agencies to offer FSAs or for OPM to
administer them. However, agency heads
ould prohibit federal agencies offering a flexiblemay make allotments from employee pay as

CRS-29
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
account option from imposing fees onthey think appropriate (5 USC 5525) and
ees to defray administrative costs. WouldOPM has general authority to advise the
encies to forward to the Office of PersonnelPresident regarding the civil service (5 USC
ement (or an entity it designates) amounts to1103(a)(7).
the costs.
ould require the Office of Personnel Management to
ports to congressional committees on the
inistrative costs. Would require agencies to submit
nagement and Budget on the
ment tax savings from the option, net of
ⁱ^{ki/CRS-RL31924}ministrative fees paid.
^g/w
^s^.orpay while federal employee5 U.S.C. Chapter 55 - Pay Administration;No similar provision

^le^ak on active duty in a reserve component of theSubchapter IV - Dual Pay and Dual
Employment
^://wikin General. Would amend 5 U.S.C. Chapter 55,
^h^ttpV by adding:
y while serving on active
in a reserve component
ee who is also a member of a reserve
ment with the federal government under a call
for a period of more
s would be entitled to receive, for each pay
an amount equal to the
) between (1) the amount of civilian
that would otherwise have been payable to
e employee for such pay period if the employee’s
vilian employment with the government had not been

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Personnel Improvement Act P.L. 107-296
the service on active duty; and (2) the
compensation that is payable to the
ployee for the service on active duty and is allocable
period.
tates the requirements for payment; (d)
cts that OPM, in consultation with the DOD
ary, prescribe regulations; (e) Directs that
ing the provisions be prescribed by
ency heads in consultation with OPM; (f) Defines
rms.
ⁱ^{ki/CRS-RL31924} Provisions would apply
^g/w periods beginning on or after the
^s^.or’s enactment date.

^le^ak
^://wiki
^h^ttp

CRS-31
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Personnel Improvement Act P.L. 107-296
ee surveysNo similar provisionNo similar provision

n General. Each agency would conduct an annual
of its employees (including survey questions
ency and questions prescribed under
ement
ices that contribute to agency performance; and
mployee satisfaction with (A) leadership policies
ices; (B) work environment; (C) rewards and
nition for professional accomplishment and
ⁱ^{ki/CRS-RL31924}achieving organizational
^g/w for professional development
^s^.orrowth; and (E) opportunity to contribute to
^le^ak organizational mission.
^://wikiulations. OPM would issue regulations
^h^ttp survey questions that would appear on all
ency surveys in order to allow a comparison across
encies.
) Availability of results. The results of the agency
s would be made available to the public and
eb site of the agency involved, unless
agency head determines it will jeopardize or
gatively impact on national security.
ency defined. “Agency” would mean an
ecutive agency as defined by 5 U.S.C. 105.

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Personnel Improvement Act P.L. 107-296
Title III — Provisions Relating to the Securities and Exchange Commission
and the National Aeronautics and Space Administration
— Securities and Exchange Commission
change Commission5 U.S.C. Chapter 31 - Authority forNo similar provision

ould amend 5 U.S.C. Chapter 31, Subchapter I byemployment
a new Sec. 3114.
ⁱ^{ki/CRS-RL31924}xaminers by the Securities and Exchange
^g/w
^s^.or) Applicability. This section would apply to any
^le^ak
^://wikimpliance examiner at the SEC that is in the
^h^ttpmpetitive service.
. (1) In General. The SEC
any position described in
n accordance with the statutes, rules, and
ulations governing appointments in the excepted
) notwithstanding any statutes, rules,
ulations governing appointments in the
te to a position under this
would not be considered to
mpetitive service to the excepted service. (c)
days after the end of FY

CRS-33
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Personnel Improvement Act P.L. 107-296
Y 2003) and 90 days after the end of FY
Y 2004 and 2005), the SEC would submit a
port with respect to its exercise of the authority
anted by (b) during such fiscal years to the House
es on Government Reform and Financial
rvices and the Senate Committees on Governmental
anking, Housing, and Urban Affairs.
es in the hiring
ed by such subsection, including
levant information related to (1) the quality of
ⁱ^{ki/CRS-RL31924} the SEC to
^g/wlect candidates through the streamlined hiring
^s^.orpes, and grades of
^le^akees hired under the authority; (4) any benefits or
^://wikiomings associated with the use of the authority;
^h^ttphe effect of the exercise of the authority on the
of veterans and other demographic groups; and
way in which managers were trained in the
ministration of the streamlined hiring system.
curities and Exchange Commission.

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Personnel Improvement Act P.L. 107-296
eronautics and Space Administration
No similar provision; related Title 5 sectionsLaw added a new Chapter 97 -
are identified in the specific sections belowDepartment of Homeland Security to Title
) In General. Would amend 5 U.S.C. Part III,5
: adding New Title 5, Chapter 98 —
onal Aeronautics and Space
dministration
New Subchapter I — Workforce42 U.S.C. 2472 - National Aeronautics andNo similar provision
ⁱ^{ki/CRS-RL31924}uthorities.Space Administration (defined)
^g/w42 U.S.C. 2466b - Administrator (defined)
^s^.orAdministration” means the National Aeronautics
^le^akpace Administration (NASA); (2)
^://wikidministrator” means the Administrator of NASA;
^h^ttpritical need” means a specific and important
quirement of the Administration’s mission that it is
it lacks the appropriate
ees because of the inability to fill positions or
ees do not possess the requisite skills;
ployee” means an individual employed in or
orkforce plan”
ppropriate committees of
ress” and “redesignation bonus.”
, notification, and5 U.S.C. Chapter 31 - Authority forNo similar provision; law stated that 5
requirementsemploymentU.S.C. Chapter 31 could not be waived or
s before exercising any of the5 U.S.C. 3104 - Employment of speciallymodified.

CRS-35
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Personnel Improvement Act P.L. 107-296
qualified scientific and professional
ministrator would submit a written plan to thepersonnel
te committees of Congress. A plan could notAuthorizes OPM director to establish
OPM’s approval. scientific or professional positions which
an would include a description of (1) eachrequire services of specially qualified
tical need of the administration and the criteria usedpersonnel and which may be established
ntification; (2) the functions, approximateoutside the General Schedule.

r categories of positions or
ployees that address critical needs and that would be
ible for each authority proposed to be exercised
ⁱ^{ki/CRS-RL31924}ercise of
^g/w authorities with respect to the eligible positions
^s^.orees involved would address each critical
^le^ak critical need
^://wikiould not be addressed by
^h^ttpble under this subchapter,
those needs would not be so
(4) the specific criteria to be used in
ermining which individuals may receive the benefits
the criteria for granting bonuses in the
d, and 9810, and how the level
benefits will be determined; (5) the safeguards
r measures that will be applied to ensure that
out in a manner consistent
rit system principles; (6) the means by which
ployees will be afforded the notification required
(d)(1)(B); (7) the methods
t will be used to determine if the authorities

CRS-36
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
ercised under this subchapter have successfully
NASA before the
actment of this chapter to recruit highly qualified
how it intends to use
overnmental recruitment or placement agencies;
nternet technologies.
s before first exercising any of
made available under this
or would provide to all
ⁱ^{ki/CRS-RL31924}ployees, the workforce plan and any additional
^g/wtion which the administrator considers
^s^.or
^le^ak administrator could submit any
^://wikirkforce plan to OPM.
^h^ttpbe implemented without
ter than 60 days before
menting any such modifications, the
an appropriately modified
ees and to the appropriate
mmittees of Congress. Any reference in this
other provision of law to the
odification made in accordance with this subsection.
rovides for employee representatives to review
on the plan before the
ministrator submits it to OPM.
authorities made available
be exercised in a manner

CRS-37
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
) Whenever the administration submits its
ement and Budget for any year, the
ministration would at the same time submit a copy of
plan to the Senate Committees on Governmental
nd commerce, Science, and
nsportation and the House Committees on
nce and Appropriations.
of the plan not later than
ⁱ^{ki/CRS-RL31924} years after the enactment of Sec. 9802 and states
^g/w
^s^.or: Title I provisions would permit changes to
^le^akC. Chapter 31 for Defense
^://wiki
^h^ttpRelevant Title 5 sections are noted in theRelevant sections of the law are noted in
under this subchapter arespecific sections below.the specific sections below.

(1) to pay recruitment, redesignation, and
retention bonuses under the proposed Sec.
appointments and to take
under the proposed Sec. 9806;
rates of basic pay for critical positions under
tend
overnmental personnel act assignments under

5 U.S.C. Chapter 35,

I in accordance with Sec. 9810.
could be exercised with respect to any

CRS-38
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
the President, by and with
) Unless specifically stated otherwise, all authorities
are subject to 5 U.S.C.
ments).
itment, redesignation, and5 U.S.C. 5753 - Recruitment and relocationNo similar provision; law states that 5
bonusesU.S.C. Chapter 57 provisions cannot be

5 U.S.C. 5753, the administratorAuthorizes bonuses of up to 25% of basicwaived or modified.

a bonus to an individual, in accordance withpay and requires service agreement.
ⁱ^{ki/CRS-RL31924} workforce plan and subject to the limitations in this5 U.S.C. 9504 - Recruitment, retention,
^g/wor determines that NASArelocation incentives, and relocation
^s^.or, in the absence of a bonus, to encounterexpenses (Internal Revenue Service)
^le^akulty in filling a position; and the individual isAllows for IRS variations from the Title 5
appointed as a federal employee; currentlyauthority for a 10-year period.
^://wikied by the federal government and newly
^h^ttpon in the same geographic
or currently employed by the federal government
a different geographic area
f the position is described as addressing a critical
an, the bonus could not exceed
ee’s annual rate of basic pay
luding locality-based comparability payments) as
beginning of the service period multiplied by the
(d)(1)(B)(i) below; or (2)
ee’s annual rate of basic pay
luding locality-based comparability payments) as
inning of the service period.

CRS-39
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
f the position is not described as addressing a
rce plan, the bonus could not
ceed (1) 25% of the employee’s annual rate of basic
y (including locality-based comparability payments)
of the beginning of the service period multiplied by
ed under (d)(1)(B)(i) below;
ee’s annual rate of basic pay
luding locality-based comparability payments) as
inning of the service period.
ment of a bonus would be contingent
ⁱ^{ki/CRS-RL31924} into a service agreement
^g/w(B) The service agreement
^s^.or
^le^akment, including a
^://wikiment schedule, which could include a lump-sum
^h^ttpyment, installment payments, or a combination
such amount; and (iv) the conditions under
ch the agreement could be terminated before the
reed-upon service period has been completed, and
effect of the termination.
or purposes of determinations under (b)(1) and
ee’s service period would be
pressed as the number equal to the full years and
the fractional part of a
rt of a year. The service
an 6 months and could not
ceed 4 years.

CRS-40
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
an employee’s basic pay.
efore paying a bonus, the administration would
tablish a plan for paying recruitment, redesignation,
ubject to OPM approval.
of
nd (c) to the appropriate
mmittees of Congress not later than February 28 of
he next 10 years and states what the summary
: Title I would prohibit waiver or modification of
ⁱ^{ki/CRS-RL31924}
^g/w
^s^.or5 U.S.C. 5754 - Retention allowancesNo similar provision; law stated that 5
^le^ak 5 U.S.C. 5754, the administratorAuthorizes allowances of up to 25% of basicU.S.C. Chapter 57 provisions could not be
a bonus to an employee, in accordance withpay.waived or modified.

^://wiki workforce plan and subject to the limitations in this5 U.S.C. 9504 - Recruitment, retention,
^h^ttp determines that (1) therelocation incentives, and relocation
ee’s unusually high or unique qualifications or aexpenses (Internal Revenue Service)
al need of the administration for the employee’sAllows for IRS variations from the Title 5
rvices makes it essential to retain the employee; andauthority for a 10-year period.
ee would be likely to leave in the
f the position is described as addressing a critical
an, the bonus could not exceed
ee’s annual rate of basic pay
luding locality-based comparability payments).
f the position is not described as addressing a
rce plan, the bonus could not
ceed 25% of the employee’s annual rate of basic pay

CRS-41
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
luding locality-based comparability payments).
ment of a bonus would be contingent
ee entering into a service agreement
th NASA. (B) The service agreement would, at a
ment, including a payment schedule;
h could include a lump-sum payment, installment
ments, or a combination thereof; (iii) the amount of
the amount; and
reement could be
ⁱ^{ki/CRS-RL31924}reed-upon service period has
^g/wen completed, and the effect of the termination.
^s^.oree’s service period would be
^le^akpressed as the number equal to the full years and
^://wiki the fractional part of a
^h^ttprt of a year. The service
an 6 months and could not
ceed 4 years.
(1), a service agreement is not
s a bonus in biweekly
llments and sets the installment payment at the full
e rate established for the employee,
n this case,
employee in writing of any
e the retention bonus payments. The
ee would continue to accrue entitlement to the
h the end of the pay period in
h such written notice is provided.
on could not be considered

CRS-42
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
ee’s basic pay.
ee would not be entitled to a retention
a service period
established for that employee under 5
) Requires the administrator to submit a summary of
nd (c) to the appropriate
mmittees of Congress not later than February 28 of
he next 10 years and states what the summary
ⁱ^{ki/CRS-RL31924}: Title I would prohibit waiver or modification of
^g/w
^s^.or
^le^ak5 U.S.C. 3301 - Civil Service; generallyNo similar provision; law stated that 5
) The administrator could authorize term5 U.S.C. 3302 - Competitive service; rulesU.S.C. Chapter 33 could not be waived or
^://wiki5 CFR Part 316 - Temporary and Termmodified.

^h^ttp, for a period of not less than one yearEmployment
years.Authorizes term appointments for more than
5 U.S.C. Chapter 33, or any otherone year, but not more than four years
w relating to the examination,(beyond four years could be authorized with
of individuals in thejustification) where the need for an
istrator could convert anemployee’s services is not permanent.
ee serving under a term appointment to a
the competitive service
: (1) the individual was
etitive examination under
; (2) the

CRS-43
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
ed that there was potential
on to a career-conditional or
ee has completed at
ears of current continuous service under a
ee’s performance under the term appointment
least fully successful or equivalent; and (5) the
ee is being converted
e same occupational series,
eographic location, and provides no greater
ⁱ^{ki/CRS-RL31924}
^g/wamination was conducted.
^s^.or 5 U.S.C. Chapter 33 or any other
^le^akw relating to the examination,
^://wiki of individuals in the
^h^ttpistrator could convert an
ee serving under a term appointment to a
the competitive service
administration through internal competitive
h (4) are met.
ee converted under this section becomes
tional employee, unless the employee has
rwise completed the service requirements for
enure.
ee converted to career or career-
ment under this section acquires

CRS-44
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
te committees of Congress, not later than
28 of each of the next 10 years, the total
tments and conversions.
or Defense, see proposed new section 9904.
authority for critical positions5 U.S.C. 5377 - Pay authority for criticalNo similar provision; law permits the new
positionspersonnel system to make changes to 5
a Senior ExecutiveAuthorizes OMB to establish critical payU.S.C. Chapter 53.

ecutive Schedule position;positions for positions at an extremely high
level and critical to agency missions; up to
ⁱ^{ki/CRS-RL31924}800 may be established at any time.
^g/ws.Compensation cannot exceed Executive
^s^.or under this section (1) could be exercisedSchedule level I without the President’s
^le^ak with respect to a position that is described asapproval.
ng a critical need in the workforce plan, and5 U.S.C. 9502 - Pay authority for critical
^://wikipertise of an extremely high level in apositions (Internal Revenue Service)
^h^ttpientific, technical, professional, or administrativeAuthorizes critical pay positions.
ercised only to the extentCompensation cannot exceed the Vice
to recruit or retain an individualPresident’s salary.
ceptionally well qualified for the position; and (3)5 U.S.C. 9503 - Streamlined critical pay
ercised only in retaining employees of theauthority (Internal Revenue Service)
nting individuals who wereSecretary of the Treasury may establish
ees of another federal agency as defined bycritical pay positions for positions at an
extremely high level and critical to the IRS
5 U.S.C. 5377, themission for a 10-year period. Appointments
ministrator could fix the rate of basic pay for aare limited to four years. Total
A in accordance with this section. Thecompensation cannot exceed the Vice
legate this authority.President’s salary.
fixed under

CRS-45
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
ceed 10 at any time.
fixed under this section
te of basic pay (including
ality-based comparability payments) which would
able for the position involved if this
basic pay fixed under this
ceed the per annum rate of salary
able for the Vice President.
any provision of 5 U.S.C. 5307,
ⁱ^{ki/CRS-RL31924}ee who, during any calendar
^g/w pay at a rate fixed under this section,
^s^.orl, bonus, award, or similar
^le^akment could be paid to such employee if, or to
^://wikitent that, when added to basic pay paid or
^h^ttpable to such employee (for service performed in
endar year as an employee in the executive
ployee outside the executive branch
ment
d cause the total to exceed the Vice President’s
.
) Requires the administrator to submit to the
te committees of Congress, not later than
28 of each of the next 10 years, the number of
of basic pay was either
ed or terminated under this section.
would permit the new personnel system to
es to 5 U.S.C. Chapter 53 for Defense

CRS-46
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
nments of5 U.S.C. Chapter 33, Subchapter VI -No similar provision; law stated that 5
overnmental personnelAssignments to and from States (5 U.S.C.U.S.C. Chapter 33 could not be waived or
r purposes of applying the third sentence of 5 U.S.C.3371-3376)modified.
to the authority of the head of a5 U.S.C. 3372 - General provisions
ency to extend the period of an employee’s
nment to or from a State or local government,
her education, or other organization),
ee and the government or organization
action which would be allowable if
ⁱ^{ki/CRS-RL31924}ence had been amended by striking “two” and
^g/wrting “four.”
^s^.or would permit the new personnel system to
^le^akke changes to 5 certain sections of 5 U.S.C. Chapter
^://wiki
^h^ttp5 U.S.C. Chapter 47 - Personnel researchNo similar provision; law states that 5
thorityprograms and demonstration projectsU.S.C. Chapter 47 cannot be waived or
hen conducting a demonstration project at NASA, 55 U.S.C. 4703(d)(1)(A) limits size ofmodified.
substitutingdemonstration projects to not more than
as determined by the5,000 individuals.
5 U.S.C. 9507 - Streamlined demonstration
: Title I would prohibit waiver or modification ofproject authority (Internal Revenue Service)
5 U.S.C. 4703(d) does not apply to IRS
demonstration projects.
separation incentiveWith the approval of the Office of PersonnelNo similar provisions

mentsManagement, a federal agency may offer
ould allow the Administrator to offer voluntaryvoluntary separation incentive payments of

CRS-47
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
ments of up to 50% of annual basic payup to $25,000 to employees who retire or
no more than 10 employees each year (unlessresign. The full amount must be repaid if
ments to a larger number are approved by theindividual is re-employed by the federal
ement & Budget.) government within five years.
imitations relating to bonusesNo similar provisionNo similar provision; law states that 5
5 U.S.C. 5753 - Recruitment and relocationU.S.C. Chapter 57 provisions cannot be
, inbonuseswaived or modified.
year, not to exceed 15 percent of any such total5 U.S.C. 5754 - Retention allowances
supervisors (within the5 U.S.C. 9504 - Recruitment, retention,
ⁱ^{ki/CRS-RL31924} of 5 U.S.C. 7103(a)(10)).relocation incentives, and relocation
^g/wiations account would beexpenses (Internal Revenue Service)
^s^.or
^le^ak
New Subchapter II — Personnel42 U.S.C. 2472 - National Aeronautics andNo similar provision
^://wikiisions.Space Administration (defined)
^h^ttp42 U.S.C. 2466b - Administrator (defined)
Administration” means the National Aeronautics
pace Administration (NASA);
Administrator” means the administrator of NASA.
P.L. 107-347, 12/17/02, 116 Stat. 2923, Sec.No similar provision

ees eligible. Assignments would be for a period209(c) - Federal information technology
months and one year, and could beworkforce development
tended in three-month increments for up to oneAuthorizes exchanges of employees from
ear. A NASA employee generally wouldprivate sector to government and from
ve to agree to serve in NASA after completion of angovernment to private sector in information
change for the same amount of time as the exchange. technology management. Individuals
ee would be deemed to be on detail toeligible to participate must be at pay grade

CRS-48
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
ular work assignment in NASA. ReimbursementsGS-11 (or equivalent) or above. Exchanges
the private sector entity could be made to NASA.may be for a period between three months
vate sector employee assigned to NASA isand one year and may be extended in
aws andincrements of three months for one
ulations which cover the private sector employeeadditional year.
on detail are stated. Policies in the case of a
te sector employee’s disability or death while5 U.S.C. Chapter 33, Subchapter VI -
gned to NASA are detailed. Requires theAssignments to and from States (5 U.S.C.
inistrator, not later than February 28 of each year,3371-3376)
port to the appropriate committees of Congress on
ⁱ^{ki/CRS-RL31924}
^g/w
^s^.oryNo similar provisionNo similar provision
^le^akram
ould authorize the NASA administrator to provide
^://wiki
^h^ttpgher education who are pursuing academic programs
professions needed by
A.
uished scholar5 U.S.C. 3104 - Employment of speciallyNo similar provision; law states that 5
qualified scientific and professionalU.S.C. Chapter 31 cannot be waived or
personnel modified.

l series identified by OPMAuthorizes OPM director to establish
s education and training inscientific or professional positions which
theories of the occupationrequire services of specially qualified
pically can be gained only through completion ofpersonnel and which may be established
fied curriculum at a recognized college oroutside the General Schedule.
; and (B) is covered by the Group Coverage

CRS-49
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
Professional and Scientific
nd (2) “research position” means a position
that primarily involves
or investigation, or research-type
ploratory development of a creative or scientific
e required to perform the
is acquired typically and primarily
h graduate study. (b) NASA could appoint,
ard to 5 U.S.C. 3304(b) and 3309 through
to General Schedule
ⁱ^{ki/CRS-RL31924}A for which public notice
^g/wiven, if (1) with respect to a GS-7 position,
^s^.ore individual (A) received, from an accredited
^le^aked to grant baccalaureate degrees
^://wikiAs), a BA in a filed of study for which possession of
^h^ttpat degree in conjunction with academic achievements
ets the qualification standards as prescribed by OPM
) achieved a cumulative grade point
e (GPA) of 3.0 or higher on a 4.0 scale and a
her for courses in the field of study
for the position; (2)-(4) with respect
position, the individual (A)
ed to
ant graduate degrees, a graduate degree in a field of
for which possession of that degree meets the
ification standards at this grade level as prescribed
OPM for the position to which the individual is
appointed; and (B) achieved a cumulative GPA

CRS-50
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
her on a 4.0 scale in graduate coursework
required for the position. Veterans
when selecting
dates. Preference eligibles who meet the criteria
uished scholar appointments would be
ibles. (d) An
authority would be a
in the competitive civil
ce.
ⁱ^{ki/CRS-RL31924}5 U.S.C. Chapter 57, Subchapter II - TravelNo similar provision; law stated that 5
^g/wpenses of certain new appointeesand transportation expenses; new appointees,U.S.C. Chapter 57 could not be waived or
^s^.orperson newly appointed orstudent trainees, and transferred employeesmodified.

^le^aknstated to federal service to NASA to (A) a career or
) a term5 U.S.C. 5724 - Travel and transportation
^://wikicepted service appointment thatexpenses of employees transferred;
^h^ttponversion to a career oradvancement of funds; reimbursement on
t; (D) a career or limitedcommuted basis; 5 U.S.C. 5724a -
ecutive Service appointment; (E) anRelocation expenses of employees
ection 203(c)(2)(A) of thetransferred or reemployed; 5 U.S.C. 5724b -
tics and Space Act of 1958; (F) anTaxes on reimbursements for travel,
transportation, and relocation expenses of
employees transferred; 5 U.S.C. 5724c -
Relocation services
th an appropriate authority. (b) The
the travel, transportation, and
penses of a new appointee to the same

CRS-51
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
tent, in the same manner, and subject to the same
ment of such expenses under 5
ee
nsferred in the interests of the U.S. Government.
) Requires the administrator to submit to the
te committees of Congress, not later than
28 of each of the next 10 years, the average
hest payments made under this section.
: Title I would permit changes to certain sections
ⁱ^{ki/CRS-RL31924}r Defense civilian personnel.
^g/w
^s^.or5 U.S.C. 6303 - Annual leave accrualNo similar provision; law stated that 5
^le^ak appointed employee” means an5 U.S.C. 6304 - Annual leave accumulationU.S.C. Chapter 63 could not be waived or
ardless ofOnly employees who have at least 15 yearsmodified.

^://wikiee of the federal government; orof service accrue one day of annual leave for
^h^ttpee of the federal governmenteach full biweekly pay period.
a break in service of at least 90 days after
od of federal employment,
) employment under the Student
ment Program administered by
PM; (II) employment as a law clerk trainee; (III)
ment under a short-term temporary appointing
while a student during periods of vacation
educational institution at which the student is
V) employment under a provisional
ntment is permanent and
follows the provisional appointment; or
ment under a temporary appointment that is

CRS-52
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
ither full-time nor the individual’s principal
ment. (B) “period of qualified non-federal
ce” means any period of service performed by an
s of which were directly related to the duties of the
h that individual will fill as a
appointed employee; and (ii) except for this
e be service performed by
ee for purposes of 5 U.S.C. 6303; and (C)
irectly related to the duties of the position” means
ⁱ^{ki/CRS-RL31924} the same line of work
^g/wh require similar qualifications. (2)(A) For
^s^.or
^le^akied non-federal service
^://wiki a newly appointed employee to be a
^h^ttpl length performed as an
ee. (B) A period deemed by the administrator
to the employee
(i) the period of federal service in which the
eming is made; and (ii) any subsequent period of
Notwithstanding 5 U.S.C.
A
ee in a position paid under 5 U.S.C. 5376 or
ee in an equivalent category
is greater than the rate payable
-15, step 10, would be one day for each full
pay period. (B) The accrual rate established
raph would continue to apply to the
ee during (i) the period of federal service in

CRS-53
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
ch such accrual rate first applies; and (ii) any
federal service.
: Title I would prohibit waiver or modification of
imited appointment to Senior5 U.S.C. 3132.(a)(8). Only Senior ExecutiveNo similar provision
ecutive Service positions.Service (SES) career appointees may fill
). A career reserved position may be filledcareer reserved positions.
a career appointee, a limited emergency appointee,
Either type of limited
ⁱ^{ki/CRS-RL31924}eet certain conditions and
^g/wto be approved in advance
^s^.or the Office of Personnel Management (OPM).
^le^ak
5 U.S.C. 3132(a)(5) A limited termNo similar provision
^://wikiappointee is an individual appointed under a
^h^ttp need, as determined by thenonrenewable appointment to an SES
tor.position the duties of which will expire at the
end of the term. The appointment may not
exceed three years.
e from current law.5 U.S.C. 3132(a)(8) A limited emergencyNo similar provision
appointee is an individual appointed under a
nonrenewable appointment to an SES
position established to meet a bona fide,
unanticipated, urgent need. The appointment
may not exceed 18 months.
No comparable language because limitedNo similar provision

appointees are prohibited from filling career

CRS-54
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
limited emergency appointees and limitedreserved positions.
not exceed 10% of the total
appointSec. 3394. Noncareer and limitedNo similar provision
ppointees for four years orappointments.
ss to a position the duties of which will expire at the(b) Agencies may appoint limited term
ear or less to a position thatappointees and limited emergency appointees
duties. The administrator mayonly with prior approval of the exercise of
e extensions of up to two years (for positionssuch authority by OPM.
ⁱ^{ki/CRS-RL31924} duties will expire) and one year (for positions
^g/w).
^s^.or
^le^akimited term appointees, who5 U.S.C. 3594. Guaranteed placement inNo similar provision
ously were employed in career or career-other personnel systems. This section, which
^://wikide the SES, shall haveguarantees, under certain circumstances,
^h^ttpemployment rights. OPM shall establish theplacement in other personnel systems applies
s for reemployment andonly to SES career appointees.
l have the authority to direct placement in any
ency.
.C. 9837(e)-(f)5 U.S.C. 3395. Reassignment and transferNo similar provision

be reassigned to anotherwithin the Senior Executive Service
duties of which will expire(b)(2)-(c) A limited term appointee may be
the end of a term of four years or less. A limitedreassigned to another SES position in the
be reassigned to anothersame agency the duties of which will expire
SES position in NASA, but the appointeeat the end of a term of three years or less. An
not serve in one or more positions in NASA underappointee may not serve in one or more
cess of one year. In rarepositions under this appointment for more

CRS-55
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
approve anthan three years. A limited term appointee
tension of no more than one year. A limited termmay not be appointed to, or continue to hold,
not serve more than seven years in anya position under such an appointment if,
within the preceding 48 months, the
individual has served more than 36 months,
in the aggregate, under any combination of
such types of appointment.
)5 U.S.C. 5384. Performance awards in theNo similar provision
inistrator may authorize performance awardssenior executive service
ⁱ^{ki/CRS-RL31924} the same amounts and inA career appointee may receive performance
^g/wawards. The amount shall not be less than
^s^.or5% nor more than 20% of the career
^le^akappointee’s basic rate of pay. The agency
head shall determine the amount of
^://wikiperformance awards.
^h^ttp
or qualifications pay5 U.S.C. 5377 - Pay authority for criticalNo similar provision; law permits the new
ee” means an employee as defined under 5positionspersonnel system to make changes to 5
ed by NASA. (b)Authorizes OMB to establish critical payU.S.C. Chapter 53.

5 U.S.C. 5334, the administratorpositions for positions at an extremely high
of an employee paid under thelevel and critical to agency missions; up to
step within the pay range for800 may be established at any time.
rade of the position, based on the superiorCompensation cannot exceed Executive
ee, or the special need ofSchedule level I without the President’s
f an exercise of the authority under thisapproval.
ion relates to a current employee selected for5 U.S.C. 9502 - Pay authority for critical
a determination wouldpositions (Internal Revenue Service)
ee’s contribution in the newAuthorizes critical pay positions.

CRS-56
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
ceed that in the former position, beforeCompensation cannot exceed the Vice
pay under this section. (d) Pay as set under thisPresident’s salary.
for such purposes as pay set under5 U.S.C. 9503 - Streamlined critical pay
f the employee serves for at leastauthority (Internal Revenue Service)
ear in the position for which the paySecretary of the Treasury may establish
section was made, or acritical pay positions for positions at an
earned under such positionextremely high level and critical to the IRS
actions to set pay under 5mission for a 10-year period. Appointments
.C. Chapter 53. (f) The administrator could waiveare limited to four years. Total
sed on criteria established incompensation cannot exceed the Vice
ⁱ^{ki/CRS-RL31924}). (g) Before setting anyPresident’s salary.
^g/wee’s pay under this section, the administrator
^s^.or plan to OPM, that includes (1) criteria
^le^akt pay under this section; (2)
^://wikired to set pay under this
^h^ttppes of actions and positions to be
p between the exercise of
under this section and the use of other pay
centives; and (5) a process to evaluate the
ctiveness of this section.
: Title I would permit changes to 5 U.S.C. Chapter
nd Conforming Amendments

CRS-57
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
cepted42 U.S.C. 2473 - Functions of administrationNo similar provision
striking
S-18 and inserting Executive Schedule (EX) level III.
18 U.S.C. 209 - Salary of governmentNo similar provision
officials and employees payable only by
at the end: (h) This section would not prohibitUnited States
employee of a private sector entity, while assigned
ⁱ^{ki/CRS-RL31924} to receive pay and benefits from that entity
^g/wec. 9832.
^s^.or
^le^akh (b)(7). No similar provision

d TSP eligibility; 5 U.S.C. 8432 - Contributions (Thrift
^://wikiSavings Plan)
^h^ttp18 U.S.C. 207(c)(A)(v) and 18 U.S.C 1905

18 U.S.C. 207(l)

5 U.S.C. 3111(D), 7353(B)(4)

5 conforming amendments.

CRS-58
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
Title IV — Human Capital Performance Fund
with no substantive changes
und5 U.S.C. Chapter 54 which had provided forNo similar provision; law stated that 5
) Would amend 5 U.S.C. Part III, Subpart D byan earlier system of merit pay was repealedU.S.C. Chapter 45 could not be waived or
a New Title 5, Chapter 54 - Humanby P.L. 103-89, Sec. 3(a)(1), Sept. 30, 1993modified
tal Performance Fund(107 Stat. 981). Termination of the merit
: Title I would prohibit modifications or changespay system was effective Nov. 1, 1993.5 U.S.C. Chapter 45 - Incentive awards
(includes 5 U.S.C.4505a - Performance-
ⁱ^{ki/CRS-RL31924}based cash awards)
^g/w
^s^.orNo similar provisionNo similar provision
^le^ak
^://wikih the creation of a Human Capital Performancereater performance in the federal government.
^h^ttpund would be used to reward
encies’ highest performing and most valuable
ees. This Fund would offer federal managers a
ool to recognize employee performance that is
tical to the achievement of agency missions.
No similar provisionNo similar provision

ency” would mean an executive agency under 5
ing Office; (2) “Employee” would include (A)
atutory pay system defined
) a prevailing rate employee, as
ory of

CRS-59
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
ees included by the Office of Personnel
ement (OPM) following the review of an agency
t would not include
annual rate of basic pay for
ecutive Schedule, or at a rate provided
r another provision of law;
) a member of the Senior Executive Service (SES);
n administrative law judge; (iv) a contract appeals
rd member; (v) an administrative appeals judge;
cepted
ⁱ^{ki/CRS-RL31924}
^g/wntial, policy-determining, policy-making, or
^s^.oricy-advocating character; and (3) “Office” would
^le^ak ement.
^://wikiNo similar provisionNo similar provision

^h^ttp
established the Human Capital
und, to be administered by OPM.
gency would submit a plan as described
ible for consideration by OPM
cation would be made only
OPM of an agency’s plan. (B)(i)
aining required under Sec.
ining amount appropriated
und could be allocated by OPM to the agencies.
ency’s pro rata
stribution could not exceed its pro rata share of
ecutive branch payroll. (ii) If OPM does not allocate

CRS-60
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
ency’s full pro rata share, the undistributed
from that share would become
other agencies as provided
reduction for training under
amount
und, as well as the amount of the
a share not distributed because of an agency’s
ilure to submit a satisfactory plan, would be allocated
ong agencies with exceptionally high-quality plans.
gency with an exceptionally high-quality plan
ⁱ^{ki/CRS-RL31924}ible to receive an additional distribution
^g/w
^s^.orency is required to provide to OPM such payroll
^le^akformation as OPM specifies necessary to determine
^://wikie executive branch payroll.
^h^ttpNo similar provisionNo similar provision

ments
any other provision of law,
e an agency to provide human
tal performance payments to individual employees
ceptional performance contributing to the
ency mission. (2) The number of
ployees in an agency receiving payments from the
year, would not be more than the number
to 15 percent of the agency’s average total
vilian full- and part-time permanent employment for
e previous fiscal year. (b)(1) A human capital
ment provided to an individual

CRS-61
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
ee from the Fund, in any year, would not
ceed 10 percent of the employee’s rate of basic pay.
gregate of an employee’s rate of basic pay,
justed by any locality-based comparability payments,
, as defined by
ulation, could not exceed the rate of basic pay for
ecutive Schedule level IV in any year. (3) Any
ment provided to an
ee from the Fund is in addition to any annual
y adjustment and any locality-based comparability
ⁱ^{ki/CRS-RL31924}ment that may apply. (c) No monies from the
^g/wund could be used to pay
^s^.or
^le^akyments, or for recruitment or retention incentives
^://wiki ency
^h^ttpnce initial human capital performance
yments using monies from the Human Capital
und, as available. (2) In subsequent
awarded human
tal performance payments would be financed from
ency funds available for salaries and expenses
ulationsNo similar provisionNo similar provision

such regulations as it determines to
necessary to administer the chapter, including the
und. OPM’s regulations would
overning (1) an agency plan under 5
encies; (3) the nature, extent, duration, and

CRS-62
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
processes for, payments to
ees under this chapter; (4) the
lationship to this chapter of agency performance
ement systems; (5) training of supervisors,
ers, and other individuals involved in the process
performance distinctions; and (6) the
unds could be allocated by
ency in amounts below or in excess of
e agency’s pro rata share.
ⁱ^{ki/CRS-RL31924}ency planNo similar provisionNo similar provision
^g/wible for consideration by OPM for an
^s^.orency would be
^le^akStates the requirements for
e plan.
^://wikionsultation with the Chief Human
^h^ttpould review and approve an
ency’s plan.
Capital Officers Council
mentNo similar provisionNo similar provision

payment to an employee under this section would
ee’s basic pay for the purposes of
bchapter III of 5 U.S.C. Chapter 83 and 5 U.S.C.
gulation.

CRS-63
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
No similar provisionNo similar provision

be appropriated $500 million for
ear, such
be necessary to carry out the provisions of
n the first year of
und would be available to
rticipating agencies to train supervisors, managers,
d in the appraisal process
performance management systems to make
ⁱ^{ki/CRS-RL31924}ful distinctions in employee performance and
^g/wund.
^s^.or
^le^ak
^://wiki
^h^ttp

CRS-64
ce and National SecurityCurrent LawHomeland Security Act of 2002
Personnel Improvement Act P.L. 107-296
Title V — Miscellaneous
No similar language in permanent statute.No similar language

Sec. 647 of P.L. 108-7, the Consolidated
ement and Budget (OMB) from establishing,Appropriations Act, FY2003, states: “[N]one
ing, or enforcing any numerical goal, target, orof the funds made available in this Act may
or converting, under OMBbe used by an agency of the executive branch
federal employees, unlessto establish, apply, or enforce any numerical
oal, target, or quota is based upon consideredgoal, target, or quota for subjecting the
ⁱ^{ki/CRS-RL31924}sis. employees of the executive agency to public-
^g/w prohibition shall not affect the implementationprivate competitions or for converting such
^s^.orrmance and Results Actemployees or the work performed by such
^le^ak agency fromemployees to private contractor performance
^://wiki public-private competitions or carrying outunder the Office of Management and Budget
^h^ttpCircular A-76 or any other administrative
regulation, directive, or policy unless the
goal, target, or quota is based on considered
research and sound analysis of past activities
and is consistent with the stated mission of
the executive agency.”

Personnel Provisions Unique to Proposed Defense
Transformation for the 21^st Century Act
Although Title I of H.R. 1836, as introduced, contains most of the provisions
of Sec. 101 of the proposed Defense Transformation for the 21^st Century, there are
some personnel-related provisions in the transformation proposal which were
included.⁹
Contracting for Personal Services
The transformation proposal would create a new section in Title 5, U.S. Code
(proposed 5 U.S.C. 9903) relating to contracting for personal services —
^!New 5 U.S.C. 9903(a) — Outside the United States. Funds
available to the Department of Defense would be available to
contract with individuals for services to be performed outside the
United States as determined by the secretary to be necessary and
appropriate. These contractors would not be considered employees
of the United States government for purposes of any law
administered by OPM or under any human resources management
system established pursuant to the new Chapter 99 of Title 5. These
contracts could be negotiated, their terms prescribed, and the work
could be performed where necessary, without regard to statutory
provisions that relate to negotiating, making, and performing
contracts and performing work in the United States. Current law
— See, for example, U.S. Code Title 41, Chapter 6 — Service
Contract Labor Standards. Homeland — Sec. 835 of P.L. 107-296
is related in that it addresses the issue of prohibiting contracts with
corporate expatriates.
^!New 5 U.S.C. 9903(b) - National Security Missions.
Notwithstanding any other provision of law, sums made available to
DOD by appropriation or otherwise could be expended as
determined by the secretary to be necessary to carry out the national
security mission of DOD for personal services contracts, including
personal service without regard to limitations on types of persons to
be employed. Current law — See, for example, 10 U.S.C. 2393 -
Prohibition against doing business with certain offerors or
contractors, 10 U.S.C. 2408 - Prohibition on persons convicted of
defense contract related felonies and related criminal penalty on
defense contractors, and 50 U.S.C. 403j - Central Intelligence

⁹ The reader is encouraged to check CRS Report RL31805, Authorization and
Appropriations for FY2004: Defense, by Amy Belasco and Stephen Daggett, for a more
complete discussion of H.R. 1588. Also, the personnel provisions as proposed by the
Department of Defense compared with current law are set out in CRS Report RL31916,
Defense Department Original Transformation Proposal: Compared to Existing Law, by
Robert L. Goldich, Gary J. Pagliano, Barbara L. Schwemle, and Thomas J. Nicola.

Agency; appropriations; expenditures. See also 50 U.S.C. 403j -
Central Intelligence Agency; appropriations; expenditures, which
authorizes sums made available to the CIA by appropriation or
otherwise to be expended, among other things, for personal services,
including personal services without regard to limitations on types of
persons to be employed. Homeland — There are no similar
provisions.
^!New 5 U.S.C. 9903(c) - Experts and Consultants. - Subject to
paragraphs (2) and (3) and notwithstanding provisions of 10 U.S.C.
129b, the secretary would be authorized to (A) procure by contract
the services of experts and consultants (or organizations of them),
who may provide such services with or without compensation as
determined by the secretary, and may perform such duties as the
secretary may prescribe without being deemed to be employees of
DOD except, at the discretion of the secretary, for the purposes of (i)
the Ethics in Government Act of 1978; (ii) Chapter 73 of Title 5
(Suitability, Security, and Conduct); and (iii) section 27 of the Office
of Federal Procurement Policy Act; and (B) pay travel expenses of
individuals, including transportation and per diem in lieu of
subsistence while such individuals travel from their homes or places
of business to official duty stations and return, as may be authorized
by law. (2) To procure the services of experts or consultants (or an
organization of them), the secretary would be required to determine
that (A) such procurement is advantageous to the United States; and
(B) these services cannot be provided adequately by DOD; (3)
[Note: The text on which this report is based did not have a
subsection (3) of 9903(c), only subsections (1) and (2).] Current
law — 5 U.S.C. 3109 - Employment of experts and consultants
generally limits temporary contract services to one year and pay for
temporary and intermittent contract services to the daily equivalent
rate of pay to the highest allowed in 5 U.S.C. 5332 (the General
Schedule).10 U.S.C. 129b - Experts and Consultants; authority to
procure such services generally provides that authority should be
exercised in accordance with 5 U.S.C. 3109. Homeland — Sec.
831(c) of P.L. 107-296 - Procurement of Temporary and Intermittent
Services (in research and development projects) authorizes
procurement of temporary and intermittent services of experts and
consultants in accordance with 5 U.S.C. 3109, without regard to pay
limitation in section 3109. Sec. 832 - Personal services. Authorizes
procurement of temporary or intermittent services of experts or
consultants in accordance with 5 U.S.C. 3109, but, when necessary
to meet an urgent homeland security needs, without regard to the
pay limitations in section 3109.
^!New 5 U.S.C. 9903(d) - Implementation. Implementation of this
section would be at the secretary’s sole, exclusive, and unreviewable
discretion. There are no similar provisions in law.

Contracting for Security Guards and Firefighting Services
Title II of the DOD transformation proposal would relate to acquisition policy.
Subtitle B would affect the contracting process. Specifically, Sec. 211, Contracting
of security guards and firefighting services, would repeal the provisions of 10 U.S.C.
2465. Currently, 10 U.S.C. 2465 places a prohibition on contracts for performance
of firefighting or security-guard functions and generally denies obligation or
expenditure of DOD appropriated funds for firefighting and security guard functions
at any military installation or facility. There were no similar provisions in the
Homeland Security Act of 2002.
Administrative Transformation
The DOD transformation proposal contains some provisions which are directed
to the issue of organization within the department and administrative management.
However, as the comparison below shows, the proposal could have significant effects
on personnel management policy.

DOD TransformationCurrent LawHomeland Security Act
for the 21^st Century Actof 2002 — P.L. 107-296
Title IV — ADMINISTRATIVE TRANSFORMATION
Subtitle A — Transformation of DOD Organization
Sec. 401. Reorganization10 U.S.C. 125 -Sec. 872 -
Within the Department ofFunctions, powers, andReorganization of P.L.
Defense. Subsections (b)duties; transfer,107- 296 authorizes the
and (c) of 10 U.S.C. 125reassignment,Secretary to allocate or
would redesignated asconsolidation, orreallocate functions
subsections (c) and (d)abolition restricts theamong officers and
and a new section (b)power of the secretary,establish, consolidate,
would be added,except when determinedalter, or discontinue
providing that,by the president to beorganizational units but
“Notwithstanding anynecessary because ofonly pursuant to the
provision of this title,hostilities or anPresident’s
after the expiration of 60imminent threat thereof,reorganization plan in
days after providingto transfer, reassign,Sec. 1502(b) of P.L.
notice of such action toconsolidate, or abolish a107-296 or after
Congress, the Secretaryfunction, power, or dutyexpiration of 60 days
of Defense, subject tovested in DOD by law.after notifying
direction of the President,appropriate
would be authorizedcongressional
substantially to transfer,committees. This
reassign, consolidate,authority does not
reorganize, or abolish aextend to abolishing any
function, power,agency, entity,
organization, position, ororganizational unit,
duty vested in the Officeprogram, or function
of the Secretary ofestablished or required
Defense, or an officer,to be maintained by the
official, or agencyP.L. 107-108 or other
thereof.” statute.
Sec. 402. Reassignment10 U.S.C. 143 - OfficeNo similar provision

of Personnel Serving inof the Secretary of
the Office of theDefense (OSD)
Secretary of Defense. personnel establishes a
Section 143 of Title 10,permanent limitation on
U.S.C., would beOSD military and
repealed. civilian personnel,
defines personnel, and
limits reassignment of
functions to evade the
personnel limitation

DOD TransformationCurrent LawHomeland Security Act
for the 21^st Century Actof 2002 — P.L. 107-296
Sec. 403. Appointments5 U.S.C. 3326 -No similar provision
of Retired Members ofAppointments of retired
the Armed Forces tomembers of the armed
Positions in theforces to positions in the
Department of Defense. Department of Defense.
Section 3326 of title 5,A retired armed forces
U.S.C., would bemember may not be
repealed.appointed to a civil
service position in DOD
within 180 days
immediately following
retirement unless the
secretary concerned
authorizes it, the
minimum rate of basic
pay for the position has
been increased under 5
U.S.C. 5305, or a state
of national emergency
exists.
Sec. 404 - Transfer ofNo similar provision
Department of Defensewith respect to
Personnel Securitytransferring security
Investigative Functionsinvestigative functions,
and Defense Personnelbut see below.
Performing Those
Functions grants theSec. 841(b) of P.L. 107-
secretary discretion to296 - Effect on
transfer to OPMPersonnel, provides that
discretion to accept(1) generally the transfer
personnel securityto the Department of
investigation functionsHomeland Security of
currently performed byfull-time and part-time
DOD’s Defense Securityemployees holding
Service and, if OPMpermanent positions
accepts those functions, itshall not cause them to
must accept the5 U.S.C. 3503 - Transferbe separated or reduced
employees performingof function provides thatin pay for 1 year after
those functions and theirwhen a function istransfer; (2) any person
supervisors and maytransferred from onewho, on the day
accept support staff andagency to another orpreceding transfer to the
higher level supervisors. when one agency isDepartment, held an
Transferred personnelreplaced by another,Executive Level position
would be protected fromeach competingand who, without a
separation or reduction inemployee must bebreak in service, is
grade of compensationtransferred before theappointed to a DHS

DOD TransformationCurrent LawHomeland Security Act
for the 21^st Century Actof 2002 — P.L. 107-296
for one year after transferreceiving agency mayposition with
date. Any transfer formake an appointmentcomparable duties
this purpose would befrom another source.continues to be
considered a transfer ofcompensated in the new
function under 5 U.S.C.position at not less than
3503.the rate provided for
such position for the
duration of service in the
new position; and (3)
that any exercise of
authority under chapter
97 of title 5 must
conform with the
requirements of Sec.

841(b).

Sec. 405. Conversions ofNo similar provision
Commercial Activities.
(a) Section 2461(b)(3)(A)10 U.S.C. 2461 -
of Title 10, U.S.C.,Commercial or
would be amended by (1)industrial type
striking “of the cost”; (2)functions; required
striking “savings” andstudies and reports of
inserting “best value”; (3)savings to be achieved
redesignating clause (iii)before converting to
as (iv); and (4) insertingcontractor performance
after (ii) the following
new clause (iii) “BenefitsSection 2461(b)(3)(A)
in addition to price thatstates that:
warrant performance of(3) An analysis of
the function by a sourcecommercial or industrial
at a cost higher than thattype function for
of performance bypossible change to
Department of Defenseperformance by the
civilian employees.” private sector shall
include the following:
(A) An examination of
the cost of performance
of the function by
Department of Defense
civilian employees and
by one or more private
contractors to
demonstrate whether
change to performance
by the private sector will

DOD TransformationCurrent LawHomeland Security Act
for the 21^st Century Actof 2002 — P.L. 107-296
result in savings to the
government over the life
of the contract,
including in the
examination the
following:
(i) The cost to the
government, estimated
by the Secretary of
Defense (based on
offers received), for
performance of the
function by the private
sector.
(ii) The estimated
cost to the government
of Department of
Defense civilian
employees performing
the function.
(iii) In addition to
the costs referred to in
clause (i), an estimate of
all other costs and
expenditures that would
incur because of the
award of such a
contract.
(b) Contracting if Best10 U.S.C. 2462 -No similar provision

Value. - Section 2462(a)Contracting for certain
of Title 10, U.S.C.,supplies and services
would be amended byrequired when cost is
striking “such a sourcelower
can provide such supply
or service to theSection 2462(a) states
Department at a cost thatthat:
is lower (after including (a) In General. —
any cost differentialExcept as otherwise
required by law,provided by law, the
executive order, orSecretary of Defense
regulation) than the costshall procure each
at which the Departmentsupply or service
can provide the samenecessary for or
supply or service” andbeneficial to the
inserting “performanceaccomplishment of the
by that source representsauthorized functions of

DOD TransformationCurrent LawHomeland Security Act
for the 21^st Century Actof 2002 — P.L. 107-296
the best value to thethe Department of
government, determinedDefense (other than
in accordance with thefunctions which the
competition requirementsSecretary of Defense
of OMB Circular A-76.” determines must be
performed by military or
government personnel)
from a source in the
private sector if such
source can provide such
supply or service to the
Department at a cost
that is lower (after
including any cost
differential required by
law, executive order, or
regulation) than the cost
at which the Department
can provide the same
supply or service.