(a) Commencement
The Secretary of Defense, through the Secretary of the Navy, is authorized to carry out a demonstration project, the purpose of which is to determine the feasibility or desirability of one or more proposals for improving the personnel management policies or procedures that apply with respect to the maintenance and sustainment of ships, submarines, and their associated systems at shipyards, regional maintenance centers, and trident refit facilities of the Department of the Navy.
(b) Application
(1) Title 5
Section 4703 of title 5, United States Code, shall apply to the demonstration project under this section, except that—
subsection (d)(1)(A) of such section 4703 shall be applied by substituting 60,000 for 5,000 ; and
subsection (d)(1)(B) of such section 4703 shall not apply.
(2) Prevailing rate employees
The demonstration project under this section shall only apply to prevailing rate employees.
(c) Terms and conditions
Except as otherwise provided in this subsection, any demonstration project described in subsection (a) shall include the following:
Pay band structures that provide maximum flexibility to attract and retain employees with critical skills, including into apprentice programs.
Trades, technical, and leadership career paths that provide advancement opportunities for employees to progress through the bands based on performance and contribution to the mission.
Broad classification authority not otherwise subject to current government classification and job grading standards.
A performance management system that emphasizes desired mission outcomes and workforce alignment to Navy priorities.
Pay flexibilities that promote opportunities for greater recruitment and retention of shipyard employees.
(d) Effect of reorganizations
The applicability of this section to an organization or team shall not terminate as a result of a reorganization, restructuring, realignment, consolidation, or other organizational change.
(e) Assessments
(1) In general
The Secretary of Defense shall designate an independent organization to conduct two assessments of this demonstration project described in subsection (a).
(2) Requirements
Each such assessment shall include the following:
A description of the workforce included in the project.
An explanation of the flexibilities used in the project to appoint individuals to the Navy workforce participating in the demonstration project and whether those appointments are based on competitive procedures and recognized veteran’s preferences.
An explanation of the flexibilities used in the project to develop a performance appraisal system that recognizes excellence in performance and offers opportunities for improvement.
The steps taken to ensure that such system is fair and transparent for all employees in the project.
An explanation of how the project allows the organization to better meet mission needs.
An analysis of how the flexibilities in subparagraphs (B) and (C) are used, and what barriers have been encountered that inhibit their use.
A description of the processes for—
ensuring ongoing performance feedback and dialogue among supervisors, managers, and employees throughout the performance appraisal period; and
setting timetables for performance appraisals.
The project’s impact on career progression.
The project’s appropriateness or inappropriateness in light of the complexities of the workforce affected.
The adequacy of the training, policy guidelines, and other preparations afforded in connection with using the project.
Whether there is a process for ensuring employee involvement in the development and improvement of the project.
Five year plan.
(3) Schedule
The first assessment under this subsection shall be completed not later than September 30, 2028. The second and final assessment shall be completed not later than September 30, 2033. The Secretary shall submit to the covered congressional committees a copy of each assessment within 30 days after receiving the assessment.
(f) Covered congressional committees
In this section, the term covered congressional committees means—
the Committees on Armed Services of the Senate and the House of Representatives;
the Committee on Homeland Security and Governmental Affairs of the Senate; and
the Committee on Oversight and Government Reform of the House of Representatives.
(g) Termination of authority
The authority to conduct a demonstration project under this section shall terminate on the date that is 3 years after the date of the enactment of this Act.
(h) Conversion
Not later than 6 months after the authority to conduct a demonstration project under this section is terminated under subsection (g), employees in the project shall convert to the civilian personnel system created pursuant to section 9902 of title 5, United States Code.