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A demonstration project
provides a means for testing and introducing beneficial change in Government-wide human
resources management systems. A Federal agency obtains the authority from the Office
of Personnel Management to waive existing Federal human resources management law and
regulations in title 5, United States Code, and title 5, Code of Federal Regulations, to
propose, develop, test, and evaluate interventions for its own human resources management
system that shape the future of Federal human resource management.
No
waivers of law are permitted in areas of employee leave, employee benefits, equal
employment opportunity, political activity, merit
system principles, or other prohibited
personnel practices. However, examples of laws and regulations that may be
waived under Title 5 include:
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qualification requirements, recruitment, and appointment to positions;
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classification and compensation;
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assignment, reassignment, or promotions;
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disciplinary actions;
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providing incentives;
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establishing hours of work;
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involving employees and labor organizations in personnel decisions; and
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reducing overall agency staff and grade levels.
Legal requirements for the
scope of demonstration projects are that:
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the length of the project be no more than 5 years (with some extension permitted);
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there be no more than 5,000 employees per project;
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OPM oversee no more than 10 active demonstration projects at one time;
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there be consultation and negotiation with affected employees and unions;
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the agency submit a formal project plan;
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Congress and employees be notified; and
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an evaluation be done.
Other mechanisms available
also allow agencies to introduce innovations and flexibilities. While demonstration
projects address organizational needs and problems in human resources management, they are
not needed or designed to fit and fix all management problems in every Federal agency.
A prospective agency first needs to determine what its organizational needs and
problems are based on its mission and strategic plan. Then, the agency can determine the
best path to achieve desired changes to its human resources management system -- through
existing flexibilities, demonstration projects, or, in some cases, legislation.
Before you decide which path to take, we suggest that you take a look at our
Human Resource Flexibilities and Authorities in the Federal Government (Text Version) and the
HR Innovators' Tool Kit (Text Version). These documents have been designed to illustrate the many options that are already available to Federal agencies
under title 5, U.S.C.
You are also encouraged to
contact us at pdd@opm.gov to discuss organizational
objectives, needs in the human resources management area, and the possibilities of a
demonstration project. We are available to work closely with agencies in the design
of a project that aligns human resources management with organizational mission and
objectives, avoids costly mistakes, and draws upon lessons learned. Agencies are
assigned their own project manager who will lead the design and development of the
project. A team of our functional specialists, in areas such as classification,
compensation, performance management, employee relations, and staffing, provides expertise
throughout the project as integral members of the team. Top
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