National Institute of Standards and Technology
Alternative Personnel Management System (APMS)
Project Operating Procedures

Human Resource Systems:  Performance Management

Last updated:  February 12, 2009

 

1.  Introduction

a.  Project Legislation:

  1. The Project legislative authority, Public Law 99-574, Section 10(b)(4) provides that:

    Employees shall be evaluated under a performance appraisal system which (A) uses peer comparison and ranking wherever appropriate; and (B) affords appeal rights comparable to those afforded under Chapter 43 of Title 5, United States Code.

  2. Other sections of the legislation linked to performance appraisal are:
    • 10(b)(5)(A) The rate of basic pay of each participating employee will be reviewed annually, and shall be adjusted on the basis of the appraised performance of the employee.
    • 10(b)(7) Performance-recognition bonuses...shall be awarded in appropriate circumstances.

b.  Project Plan:

  1. Federal Register Notice, Vol. 52, No. 191, 10/2/87, pages 37082 - 37096
  2. Federal Register Notice, Vol. 55, No. 91, 5/10/90, pages 19689 - 19692
  3. Federal Register Notice, Vol. 55, No. 186, 9/25/90, page 39220
  4. Federal Register Notice, Vol. 62, No. 203, 10/21/97, pages 54604 - 54613
  5. Federal Register Notice, Vol. 70, No. 87, 05/06/05, pages 23996 - 23999
  6. Federal Register Notice, Vol. 73, No. 136, 07/15/08, pages 40500 - 40502

c.  Coverage:

  1. The policies contained in this Performance Management section apply to all employees covered by the NIST Alternative Personnel Management System (APMS), which excludes employees covered under the Senior Executive Service (SES), General Schedule (GS), and Federal Wage Systems.  Employees occupying scientific and professional positions (ST) authorized by 5 U.S.C. 3104 are covered by this performance appraisal system and are eligible for performance ratings and bonuses, but are ineligible for performance pay increases.  Pay increases for ST positions are processed through the SES performance system.  Employees on student and faculty appointments are also covered by the APMS, but are ineligible for both performance pay increases and bonuses.
  2. Employees from other pay systems detailed to positions covered by the APMS performance management system are not covered.
  3. An employee whose service is temporarily interrupted by service in any Federally- sponsored program [e.g., Intergovernmental Personnel Act (IPA), U.S. military service] which calls for the employee's return to the same or like position, continues to be covered by the APMS performance management system while on the NIST approved assignment and the rating will be the modal rating for the employee's pay pool.

d.  Objectives:

  1. To establish critical elements and related performance standards for each covered position, which will, to the maximum extent feasible, permit the accurate evaluation of job performance on the basis of objective criteria related to the position;
  2. To use performance plans to communicate and clarify NIST and Department of Commerce goals and objectives and to identify accountability for their accomplishment;
  3. To use performance appraisal results as a basis for paying, rewarding, promoting, training, reassigning, retaining, assisting employees in improving marginal or unsatisfactory performance, and reducing in pay band or removing employees when such action is warranted;
  4. To increase the productivity of all covered employees and their organizations; and
  5. To use performance appraisal results as the basis for granting comparability and locality increases, performance pay increases, and performance bonuses, and evaluating and improving individual and organizational performance.

2.  Roles and Responsibilities

a.  NIST Director:

  1. Determines and communicates overall policy regarding the NIST APMS performance management system;
  2. Determines organizational and appropriation levels at which funds are available for the NIST APMS performance pay increases and bonuses;
  3. Allocates performance pay increase and bonus pools to organizational unit (OU) Directors;
  4. Determines I% each year for each career path and pay band, and approves an OU's request for a lower I% as appropriate;
  5. Reviews and approves overall expenditures for performance pay increases and bonuses;
  6. Authorizes transmission of performance data to NFC Personnel/Payroll System; and
  7. Monitors and evaluates the APMS performance management system; ensures that performance appraisal results are used in making personnel decisions; and encourages the use of bonuses, honorary awards and other official commendations as appropriate.

b.  Personnel Management Board (PMB):  Manages, evaluates, and recommends policy and procedural changes to NIST APMS performance management system.

c.  OU Director:

  1. Reviews and approves performance plans of employees directly supervised;
  2. Makes request to the NIST Director for a lower I%, as necessary and appropriate;
  3. Serves as the Deciding Official on performance-based actions that propose a reduction in pay band or removal from the Federal Service;
  4. Serves as the Deciding Official on the extension of the advance notice period on proposals to reduce in pay band or remove from the Federal Service in accordance with 5 CFR 432.105(a)(4)(I)(B)(1-6); and
  5. Recommends changes to the APMS performance management system and forwards recommendations to the PMB.

d.  Reviewing Official:

  1. Reviews and signs the performance plan and makes final performance and pay decisions when the Pay Pool Manager and the Rating Official is the same person.  The OU Director is the Reviewing Official since Division Chiefs are Pay Pool Managers; and
  2. When the Pay Pool Manager and the Reviewing Official (OU Director) do not concur, the Reviewing Official (OU Director) makes the final determination.

e.  Pay Pool Manager:

  1. Reviews performance plans developed by subordinate Rating Officials to ensure that they are integrated into the total management process and are consistent with overall organizational objectives;
  2. Reviews, signs, and dates performance plans developed by subordinate Rating Officials to ensure equity and consistency within his or her organization;
  3. Receives recommendations from Rating Officials, makes appropriate adjustments, and assigns final rating, performance pay increase, and/or bonus;
  4. Approves bonuses up to $10,000;
  5. May reallocate a maximum of $5,000 of a performance pay increase authorization from one career path to another;
  6. May reallocate excess performance pay increase authorization to the performance bonus authorization.  (Note: Excess performance bonus authorization may not be reallocated to the performance pay increase authorization.);
  7. Forwards recommendations to Reviewing Official for approval when the Pay Pool Manager is also the Rating Official;
  8. Completes and signs NIST-01, Section II, Performance Summary Rating Sheet and returns completed forms to Rating Officials;
  9. Reviews and evaluates the effectiveness of the NIST APMS performance management system within his or her organization and forwards recommended changes to the system to the OU Director; and
  10. Responds to employee grievances.

f.  Rating Official:

  1. The Rating Official is the first-line supervisor;
  2. Considers the overall mission, objectives, goals, long-range plans and activities of the work unit and related employee duties and responsibilities;
  3. Develops performance plans with employee participation.  Rating Officials approves performance plans and submits the plans to Pay Pool Manager for approval;
  4. Obtains signature of Pay Pool Manager, Reviewing Official (when appropriate), and the employee, in this order;
  5. Provides each employee with a copy of their performance plan;
  6. Monitors employee's performance during the rating period and provides feedback to employee about their performance;
  7. Conducts and documents at least one formal performance progress review at approximately the mid-point of the appraisal cycle and conducts and documents additional reviews as deemed appropriate or when requested by the employee;
  8. Modifies performance plans as necessary, obtains Pay Pool Manager's, Reviewing Official (if appropriate), and employee's initials on revised plan, and provides a copy of the revised plan to employee;
  9. Assists employees to improve aspects of performance identified as deficient;
  10. Notifies Human Resources (HR) Specialist if an employee's performance is deficient;
  11. Notifies employee to submit end-of-cycle accomplishments and of the opportunity to have a Performance Review meeting;
  12. Conducts an end-of-cycle Performance Review meeting if requested by employee or Rating Official.  This meeting, if conducted, takes place prior to completing the employee's appraisal;
  13. Completes performance appraisals, including determining and evaluating employees' actual accomplishments;
  14. Rates employee's performance based on their performance plan and submits recommended rating and any performance pay increase and/or performance bonus to the Pay Pool Manager.  Does not discuss tentative decisions with employee prior to Pay Pool Manager's review and approval;
  15. After receipt of Pay Pool Manager's decisions, conducts Evaluation Feedback Meeting with employee to discuss the employee's rating and any performance pay increase and/or bonus;
  16. Signs and dates the employee's NIST-01, Section II, Performance Summary Rating; and
  17. Recommends other personnel actions based on the employee's performance.

g.  Employee:

  1. Participates with Rating Official in developing performance plans;
  2. Reviews performance plan and makes recommendations for changes, if appropriate;
  3. Signs and dates the NIST-01 cover sheet;
  4. Assures clear understanding of the Rating Official's expectations and requests clarification as necessary;
  5. Manages performance to achieve expectations and brings to the Rating Official's attention any circumstances that may affect the achievement of expectations;
  6. Submits mid-cycle accomplishments as required by the OU policy;
  7. Participates in mid–cycle progress review and initials and dates progress review section (NIST-01, Section I, Item 3) at the mid-point of the performance cycle;
  8. Submits (optional) to the Rating Official at the end of the performance cycle accomplishments that pertain to each critical element, and participates in Performance Review meeting, if requested by employee or Rating Official;
  9. Participates in the Evaluation Feedback meeting and signs and dates the NIST-01, Section II, Performance Summary Rating; and
  10. May request reconsideration of performance decisions (excluding bonuses) to the Pay Pool Manager using the appropriate grievance procedures.

h.  Human Resources Staff:

  1. Communicates the purpose and procedures of the performance management system to managers, supervisors, and employees;
  2. Provides assistance, as requested, to managers and supervisors in identifying critical elements and related performance standards within NIST;
  3. Provides training in the maintenance of performance plans and appraisals in order to ensure that managers and supervisors are knowledgeable regarding the provisions of the Privacy Act, Freedom of Information Act, and other legislative and regulatory requirements;
  4. Provides training in the performance appraisal process and in the operation of the automated performance appraisal system;
  5. Provides for training of managers, supervisors, and employees to inform them of their rights and responsibilities under the NIST APMS performance management system;
  6. Develops and distributes yearly performance appraisal instructions to each OU;
  7. Provides the NIST Director with data for use in determining I% for each career path NIST-wide;
  8. Prepares data for use in determining performance pay increase and bonus authorizations and informs each OU of authorization amounts;
  9. Reviews and corrects performance data transmitted by OU's, as needed;
  10. Develops and distributes instructions on automated performance appraisal/payout system;
  11. Creates file to be transmitted to NFC for rating, performance pay increase, and bonus decisions;
  12. Obtains the NIST Director's approval for performance appraisal decisions;
  13. Transmits performance rating, performance pay increase, and bonus decisions to the National Finance Center (NFC) after the NIST Director's approval;
  14. Develops performance data reports and periodically evaluates performance system effectiveness; and
  15. Provides technical review of performance-based actions and advises OU Director on requests for extensions of advance notice periods for performance-based actions.

i.  Business Systems Division, Office of the Chief Financial Officer:  Provides technical assistance and maintenance of the automated performance appraisal/payout system.

3.  Funding

a.  Performance Pay Increase Authorization:  The NIST Director establishes the performance pay increase authorization for each NIST Division.  This Division authorization is based on a percentage of the estimated aggregate amount of the ratable employees pay within the Division . Pay Pool Managers may move a maximum of $5,000 of the pay increase authorization from one career path to another.  Pay Pool Managers may also move authorization from a performance pay increase authorization to a bonus authorization, but may not move bonus authorization to a performance pay increase authorization.

b.  Performance Bonus Authorization:  The NIST Director establishes the performance bonus authorization for each OU.  This OU authorization is based on a percentage of the estimated aggregate amount of the OU payroll.  Pay Pool Managers may move authorization from a performance pay increase authorization to a bonus authorization, but may not move bonus authorization to a performance pay increase authorization.

4.  Performance Management Process - Overview

The APMS performance management process has three distinct stages: performance planning, progress review, and appraisal.  The annual appraisal cycle begins October 1 and ends September 30.  The performance plan is used to communicate organizational goals and employee accountability.  Progress reviews are conducted to monitor employee performance and provide performance feedback.  The performance appraisal is used to measure individual and organizational results.

There are seven performance ratings:  Exceptional Contributor, Superior Contributor, Meritorious Contributor, Significant Contributor, Contributor, Marginal Contributor, and Unsatisfactory.  These performance ratings determine employee eligibility for performance pay increases, performance bonuses, and comparability and locality increases.  Supervisors also use performance appraisal results as a basis for making decisions on training, reassignment, promotion, retention, performance improvement and, if necessary, reduction in pay band or removal.

5.  Performance Planning

Rating Officials must develop and effect written performance plans within 60 calendar days of the beginning of the performance cycle.  Rating Officials must develop and effect written performance plans within 30 calendar days of a change in position, a new appointment, or a detail or a temporary promotion of 120 calendar days or more.

Each year, Rating Officials and employees jointly develop written performance plans for the coming performance cycle.

If a Rating Official and employee disagree on the contents of the performance plan, the Rating Official, in consultation with the Pool Manager, makes the decision regarding the contents of the plan.

Performance plans must be recorded on Form NIST-01, Alternative Personnel Management System Performance Management Record. Performance plans must be signed in the following order: Rating Official; Pay Pool Manager; Reviewing Official, if appropriate; and employee.

Employees must be given a copy of the signed NIST-01 which includes the NIST Benchmark Performance Standards.

Performance plans, including the critical element content or weight assigned, cannot be grieved.

a.  Organizational Goals:

When planning for the performance cycle, it is important that individual performance plans clearly align with organizational goals.  Effective communication and transparency of organizational goals ensures that employees are responsible for achieving results in support of the agency's strategic objectives.

Supervisory and employee signatures on the performance plan certify that performance elements and requirements outlined in the performance plan directly link to appropriate SES/OU, NIST, and DOC organizational goals.

b.  Critical Elements:

  1. Only critical elements are used.  A critical element is a component of an employee's job consisting of one or more required activities/results, which contributes toward accomplishing individual and/or organizational goals and objectives, and which is of such importance that acceptable performance on the element is necessary for acceptable performance in the position and unacceptable performance on the element would result in a determination that the employee's overall performance is unsatisfactory.  An employee must sustain a level of performance in all critical elements at the Minimally Meets Expectations descriptor level of the NIST Benchmark Performance Standards in order to be retained in their position.  Critical elements reflect an employee's major duties and responsibilities and must be consistent with current job assignments and with the level of duties described in the employee's position description.
  2. Performance plans must have a minimum of three critical elements and a maximum of six.  Elements may be drawn from a number of sources including, but not limited to, mission and functional statements, position descriptions, strategic plans, operating plans, operating budget justifications, and affirmative action plans.
  3. Critical elements and required activities/results must include only those aspects of the work over which the employee has control.
  4. For any job designated as supervisory, duties appropriate to the supervisory position, such as recommending or approving personnel actions, developing and appraising subordinates, approving leave, diversity, controlling funds, etc,. must be addressed as a critical element or as required activity/result of a critical element.
  5. Similar jobs should have similar critical elements.

c.  Objective:  The objective is the intent of the element or the results that are to be achieved.  The objective must be communicated in writing in the employee's performance plan and contribute to the organization's overall goals/objectives.

d.  Weight:

  1. A weight must be assigned to each critical element on the basis of the importance of the element and/or the time required to accomplish the work described within it.
  2. A weight of 1, 2, 3, or 4 (whole numbers only) must be assigned to each critical element, with 1 being the least weighted element and 4 being the most weighted element.
  3. The weight of all critical elements must total 10.
  4. Weights must be assigned to each critical element and may not be assigned to the individual required activity/results listed under a critical element.

e.  Required Activity/Results:  The required activity/results are the individual tasks/assignments, which must be results-oriented and performed to accomplish the critical element.

f.  Evaluation Criteria:

  1. The generic benchmark performance standards (NIST Benchmark Performance Standards) define levels of performance used to evaluate the accomplishment of each critical element.  The performance levels described in the NIST Benchmark Performance Standards include Exceeds Expectations (E), Fully Successful (S), Minimally Meets Expectations (M), and Unsatisfactory (U).
  2. Success Measures or supplemental standards are developed to evaluate levels of accomplishment for each of the required activity/results within a critical element.  The Success Measures should be written in terms of the expected quality, quantity, timeliness, and cost effectiveness, as appropriate, at the Fully Successful level of performance as described in the NIST Benchmark Performance Standards.  The Success Measures are used in conjunction with the NIST Benchmark Performance Standards to evaluate performance of the critical element as a whole.

6.  Mid-Cycle Progress Reviews

a.  At a minimum, Rating Officials must conduct a formal mid-cycle progress review with their employees at approximately the midpoint of the appraisal cycle.  Rating Officials may request that employee's provide them with a list of accomplishments to prepare for this meeting.  The progress review should be completed within 30 calendar days of the midpoint of the appraisal cycle.

b.  For employees who enter an APMS position after the start of the appraisal period, a progress review should be completed near the midpoint of the shortened appraisal period.

c.  For employees who enter an APMS position during the last 120 days of the rating cycle, a progress review must be completed and documented on the NIST-01 within 30 days after the 120th day.  The rating cycle is extended for these employees.  Their rating cycle will be effective from the date of their appointment to the end of the following years rating cycle; e.g., July 20, 2006, to September 30, 2007.  No rating is rendered until completion of the extended rating cycle.

d.  The progress review must include discussion of the employee's progress toward meeting the objectives or major activity/results of the critical elements, the employee's achievements and strengths and any performance deficiencies.  The Rating Officials should provide guidance on how to improve performance and identify any need for changes in the plan based upon changes in responsibilities.   This discussion may also include suggestions to enhance the employee's career growth.  If changes are needed in the plan, the Rating Official must submit any changes in writing to the Pay Pool Manager and, if appropriate, the Reviewing Official.  All changes must be initialed or signed and dated by the Rating Official, Pay Pool Manager, Reviewing Official, if appropriate, and the employee, in that order.  Changes can be made directly to the plan, or attached to the plan. In either case, the employee must be given a copy of the revised plan.

e.  A record of the progress review, including any recommendations for improvement, must be recorded in the NIST-01, and initialed by both the Rating Official and the employee.

f.  Employees and supervisors may request additional progress reviews throughout the performance cycle as needed.

g.  A progress review should also be initiated by the Rating Official as soon as it is recognized that an employee's performance of one or more critical element is deficient or marginal.  The Rating Official must contact their HR Specialist for advice on how to best improve the employee's deficient performance.

h.  Recording: 

  1. The Rating Official completes all applicable sections of the NIST-01 to document the progress review took place and initials and dates the mid-cycle progress review portion of the form.
  2. The mid-cycle progress review portion of the form is then initialed and dated by the employee to indicate the completion of the mid-cycle progress review.
  3. If there are performance deficiencies, they are documented in the NIST-01.
  4. If deficiencies are significant and require a Performance Improvement Plan (PIP) to bring performance to the Minimally Meets Expectations level, the Rating Official must contact their HR Specialist to receive advice on initiating this process.

7.  Appraisal

a.  Timing:  At the end of the appraisal cycle, Rating Officials should ask each employee to prepare a list of accomplishments.  Rating Officials should also inform employees of the opportunity for a Performance Review meeting.  Rating Officials should communicate final ratings to employees no later than the first day of the third pay period of the fiscal year.

b. Rateability:  An employee is rateable if he/she:

  1. is in an APMS position (ZA, ZP, ZS, ZT, ST) on the last workday of the performance cycle (September 30);
  2. has worked at NIST at least 120 calendar days without a break in service in one or more APMS positions during the appraisal cycle; except employees whose service is temporarily interrupted by service in any Federal sponsored program i.e.. IPA, Military Reservist, etc.  Employees whose service is temporarily interrupted by service in any Federally- sponsored program (e.g., Intergovernmental Personnel Act (IPA), U.S. military service) which calls for the employee's return to the same or like position, continues to be covered by the APMS performance management system while on the NIST approved assignment and the rating will be the modal rating for the employee's pay pool;
  3. did not receive a promotion or pay adjustment (base salary increase or decrease), except for supervisory differential, during the last 120 calendar days of the rating cycle; and
  4. is not on a Performance Improvement Plan (PIP).  (See Section 8 if a PIP is in effect at the end of the rating cycle.)

c.  Special Circumstances:

  1. There are circumstances such as an intermittent work schedule, extended leave, or students, which require an actual count of the number of days worked to determine if the employee is rateable.  If an employee worked one or more hours on a particular day, then it is counted as one day for this purpose.  If the employee has actually worked 120 days during the cycle, they are to be rated.
  2. Employees on official detail are rated by the supervisor of the base position with input from the supervisor of the detail.  Any performance pay increase or bonus awarded is charged against the performance pay increase and bonus authorization of the base position.
  3. Employees on temporary promotion are rated. See Section 9 (g) for information.
  4. Supervisors of employees who have served in another APMS position are to obtain input from the prior supervisor(s).
  5. NIST does not transfer ratings earned under another system to the NIST system nor does NIST transfer ratings earned under the NIST system to any other system.

d.  Performance Review Meeting:

  1. Either the employee or Rating Official may request this meeting.
  2. Employees are provided an opportunity to present their assessment of results achieved in their critical elements against the Success Measures and NIST Benchmark Performance Standards established in the performance plan, inform the Rating Official of aspects of their work which the Rating Official may not be aware, and identify changes they would like to include in the performance plan for the next appraisal period.
  3. The Rating Official clarifies his/her understanding of the employee's performance, and discusses the employee's accomplishments.  Rating Officials should not discuss with the employee any possible rating, pay increase, or bonus that they are considering recommending to the Pay Pool Manager.

e.  End of Year Appraisal:

  1. After reviewing the employee's accomplishments, the Rating Officials must rate each critical element using the weight of the critical element, the Success Measures described within each critical element and the NIST Benchmark Performance Standards found in the NIST-01.  The NIST Benchmark Performance Standards describe the following levels:  Exceeds Expectations (E), Fully Successful (S), Minimally Meets Expectations (M) and Unsatisfactory (U).

    As an example, if the weight of a critical element is 4 and the performance on the element matches the highest benchmark performance standard, Exceeds Expectations (E), then 4E is assigned for this critical element.  Continue this process until all critical elements have been rated and then total your weighted critical element ratings.  In the example below, the weighted rating total is 6E, 4S.

    Critical Element
    		Weight Element Rating Weighted Rating
    1
    4
    E
    4E
    2
    2
    E
    2E
    3
    2
    S
    2S
    4
    2
    S
    2S
    Total
    10
    6E, 4S
  2. If performance on a critical element does not meet the lowest level of acceptable performance, Minimally Meets Expectations, then the critical element is rated Unsatisfactory.  If at any time in the performance cycle, the employee's performance is deemed Unsatisfactory on any critical element, then the employee is placed on a performance improvement plan (PIP).
  3. Seven rating levels are used to record an employee's overall performance.  The rating levels are: Exceptional Contributor, Superior Contributor, Meritorious Contributore, Significant Contributor, Contributor, Marginal Contributor, and Unsatisfactory.  To obtain the employee's overall performance rating level, you must use the descriptor cited in Section II, Item 2: Summary Performance Rating and Payouts, of the NIST-01 (below).
    Performance Rating
    Element Ratings
    Exceptional Contributor
    At least 8E; none below S
    Superior Contributor
    At least 6E; none below S
    Meritorious Contributor
    At least 4E; none below S

    Significant Contributor

    At least 3E; up to 2M

    Contributor

    Up to 3M

    Marginal Contributor

    4 or more M

    Unsatisfactory

    1 or more U

    Given the example provided in (1) above, the employee's total element ratings are 6E, 4S.  When you apply the Element Rating descriptors for each performance rating level, this employee will receive a Superior Contributor performance rating (at least 6E; none below S).  The Superior Contributor performance rating will constitute this employee's rating of record.

  4. The Rating Official submits recommendations on ratings, performance pay increases and bonuses to the Pay Pool Manager.  Rating Officials should not discuss these recommendations with their employees.
  5. The Pay Pool Manager reviews the recommendations from subordinate Rating Officials and makes the final rating, performance pay increase and bonus decisions, while remaining within pay pool authorization limits.
  6. The Pay Pool Manager presents recommendations to the Reviewing Official for approval if the Pay Pool Manager is also the Rating Official.
  7. The Pay Pool Manager records decisions in Section II, Performance Summary Rating, of the NIST-01, signs and dates the performance summary rating sheet and returns appraisal to the Rating Official for their signature.

f.  Evaluation Feedback Meeting:  The Rating Official conducts this required meeting with each employee.  The purpose of the meeting is to discuss the final appraisal decisions (rating, any performance pay increase and bonus) and obtain the employee's signature and date in Section II of the NIST-01.  The employee's signature indicates that the meeting took place; it does not denote agreement with the evaluation.  The employee's refusal to sign the rating sheet does not negate the decisions.  The Rating Official must document in Section II of the NIST-01, that the appraisal was discussed with the employee and that the employee refused to sign.  A copy of the completed Performance Summary Rating sheet must be given to each employee.

8.  Actions Based on Unsatisfactory Performance

a.  An action based on unsatisfactory performance in any critical element may be taken at any time during the appraisal cycle, provided the requirements of “b” below are met.

b.  An employee whose performance is Unsatisfactory in any critical element must be given an opportunity to improve performance via a written Performance Improvement Plan (PIP).  This PIP must:

  1. Identify the critical element(s) in which the employee's performance is deficient;
  2. Provide a description of the types of improvements that the employee must demonstrate to attain the job retention standard, a "Minimally Meets Expectations" level of performance;
  3. Inform the employee of the performance standards that must be met for retention in the position;
  4. Give the employee a reasonable period of time to demonstrate a Minimally Meets Expectations level of performance;
  5. Include a statement of the steps the Rating Official intends to take or to offer to assist the employee to improve;
  6. Include a statement of the consequences of failure to improve and sustain performance at the Minimally Meets Expectations level; and
  7. Be reviewed for regulatory compliance by the HR Specialist or designee prior to issuance.

c.  If during the last 120 calendar days of the performance cycle an employee's performance is at the Unsatisfactory level of the NIST Benchmark Performance Standards, supervisor must place an employee on a PIP and the PIP should be issued prior to the end of the performance cycle (September 30).  Only under rare circumstances should a PIP be issued to an employee after the conclusion of a performance cycle.

d.  If an employee is on a PIP at any time during the performance cycle and successfully completes the PIP, the employee will be notified that they have successfully completed the PIP.

e.  If an employee is on a PIP at any time during the performance appraisal cycle and does not successfully complete the PIP, the employee will be notified that the PIP has ended and the employee's performance continues to be Unsatisfactory.  The employee will be reassigned, issued a proposal of removal from the Federal Service, or issued a proposal of reduction in pay band.

f.  If an employee is on a PIP that continues beyond the end of the performance appraisal cycle and successfully completes the PIP, the employee will receive a performance rating based on their performance during the PIP period.  The Rating Official will rate the employee on the NIST-01 by assigning a rating level. The Rating Official, Pay Pool Manager, Reviewing Official, if appropriate, and employee will sign and date the NIST-01.  The employee will be provided a copy of the appraisal.

g.  If an employee is on a PIP that continues beyond the end of the performance appraisal cycle and does not successfully complete the PIP, the employee will be rated Unsatisfactory and will be reassigned, issued a proposal of removal from the Federal Service, or issued a proposal of reduction in pay band.  The Rating Official will rate the employee as Unsatisfactory on the NIST-01 and the Rating Official, Pool Manager, Reviewing Official, if appropriate, and employee will sign and date the NIST-01.  The employee will be provided a copy of the appraisal.

h.  An employee who successfully completes a PIP but subsequently fails to maintain a Minimally Meets Expectations level of performance in the critical elements addressed by the PIP for a one-year period beginning with the issuance of the PIP can be issued a proposal of removal from the Federal Service or a proposal of reduction in pay band without being placed on another PIP.

i.  Reduction in Pay Band or Removal Based on Unsatisfactory Performance:

  1. An employee whose reduction in pay band or removal is proposed must be provided with a 30 calendar day advance written notice of the proposed action.  The employee cannot grieve receipt of the advance written notice or its contents.
  2. The advance written notice of proposed reduction in pay band or removal must:
    • identify specific instances of unsatisfactory performance and the critical elements on which performance is unsatisfactory;
    • Give the employee at least 15 calendar days to respond to the notice orally and/or in writing and to furnish affidavits in support of the reply;
    • Inform the employee of the right to be represented and to receive a written decision; and
    • Be reviewed for regulatory compliance by the HR Specialist or designee prior to issuance.
  3. With concurrence of the HR Specialist, the Deciding Official may extend the advance notice period for 30 calendar days without prior approval of the Office of Personnel Management for the following reasons:
    • To obtain and/or evaluate medical information when the employee has raised a medical issue in response to a proposed reduction in pay band or proposed removal;
    • To arrange for the employee's travel to make an oral reply to an appropriate agency official, or the travel of an agency official to hear the employee's oral reply;
    • To consider the employee's response if an extension to the period for a response has been granted (e.g., because of the employee's illness or incapacitation);
    • To consider reasonable accommodation of a handicapping condition; or
    • To comply with a stay ordered by the Merit Systems Protection Board under 5 U.S.C. 1208(b).
  4. OPM approval is required if the advance notice period must be extended beyond the 30 calendar day extension approved by the Deciding Official and the reason for extension does not meet the requirements cited in (3) above.
  5. NIST shall issue its final decision within 30 days after expiration of the advance notice period unless extended by the Deciding Official.  The written decision must:
    • Be made by the OU Director unless the action was proposed by the NIST Director;
    • Be based on only those instances of unsatisfactory performance that occurred within the one-year period ending on the date of the advance notice of proposed action;
    • Be issued at or before the time the action will be effective;
    • Specify the instances of unsatisfactory performance upon which the action is based; and
    • Inform the employee of the right to file an appeal with the Merit Systems Protection Board.

9.  Performance Pay Increases

a.  A performance pay increase is an adjustment to base pay.  A performance pay increase may be granted only at the end of the performance appraisal cycle.  Employees must receive an Exceptional Contributor, Superior Contributor, Meritorious Contributor, or Significant Contributor rating at the end of the appraisal cycle to receive a performance pay increase.

b.  Performance pay increase amounts are based on the I% selected by the NIST Director.  The I% selected by the NIST Director will be multiplied by each pay band mid-point salary to determine a dollar amount for ‘I'.

For example, the ZA-IV is equivalent to the minimum salary level for a GS-13 and the maximum salary level for a GS-14.  When you add the ZA-IV minimum and maximum salaries and divide the total in half, you will have the mid-point salary of the ZA-IV (career path and pay band).   When you multiply the I% to the ZA-IV mid-point salary, you will have the dollar amount for one (1) increment of ‘I' at the ZA-IV level.

c.  The I% for each career path is selected by the NIST Director for each performance cycle.  The I% can be the same percentage for all four career paths and pay bands, or it can be different for each career path and pay band.  The I% is applied NIST-wide to each career path and pay band. An OU Director may request to the NIST Director that their OU to be granted a lower I% for all four career paths or for specific career paths.  If a lower I% is approved, the OU management must announce to the applicable OU employees the lower I% and the justification for the lower I%.

d.  The performance pay increase is determined by the employee's rating level.  The performance pay increases are based upon multiples of the dollar amount for one (1) increment of ‘I'.  An Exceptional Contributor will receive 5 x I; a Superior Contributor will receive 3 x I; a Meritorious Contributore will receive 2 x I; and a Significant Contributor will receive 1 x I.

For example, if one (1) increment of ‘I' is $1,000, a ZP-III employee with a performance rating of Exceptional Contributor would receive a performance pay increase of $5,000 (5 x I).  A ZP-III employee with a performance rating of Superior Contributor would receive $3,000 (3 x I).  A ZP-III employee with a performance rating of Meritorious Contributore would receive $2,000 (2 x I).  A ZP-III with a performance rating of Significant Contributor would receive $1,000 (1 x I).

e.  Performance pay increases are effective the third full pay period in the new fiscal year and are paid to the employee the fourth full pay period in the new fiscal year.

f.  Allocations for performance pay increases are authorized by the NIST Director and allocated to Pay Pool Managers.  Excess performance pay increase authorization may be used to supplement performance bonus authorization; however, excess bonus authorization may not be added to the performance pay increase authorization.

g.  A performance pay increase for an employee on temporary promotion at the end of the appraisal cycle is calculated as follows:

  1. If the temporary promotion was effective prior to the last 120 calendar days of the appraisal cycle and terminates after September 30:
    • The employee is rated at the end of the cycle on the temporary position and any pay increase assigned is based on the Pay for Performance 'I' Matrix for the temporary job.
    • Upon termination of the temporary promotion, the employee's salary for the base position is adjusted at a minimum by the actual dollar amount of the increase received in the temporary promotion up to the cap of the pay band.
  2. If the temporary promotion was effective on or after the last 120 calendar days of the appraisal cycle and terminates after September 30:
    • The employee will be rated at the end of the cycle based on performance in the base position and any pay increase assigned is based on the Pay for Performance 'I' Matrix for the base position.  The pay increase is effected only upon termination of the temporary promotion and the employee's return to the base position.
    • If the temporary promotion is made permanent, the employee's base salary will be adjusted by the performance pay increase, and the promotion is recalculated using the new base salary.

h.  The following employees covered by the APMS performance management system cannot receive a performance pay increase:

  1. Employees rated at the Contributor, Marginal Contributor, or Unsatisfactory level
  2. 5 U.S.C. 3104 (ST) employees
  3. Faculty appointees
  4. Students appointees (P, Q, and Co-op appointments)
  5. Employees who worked less than 120 days during the appraisal cycle
  6. Employees who have received a pay adjustment (salary increase or decrease), except for supervisory differential., or promotion during the last 120 calendar days of the appraisal cycle
  7. Employees whose salaries are at the top of the pay band or at the top of supervisory pay band ceilings
  8. Employees on Retained Pay
  9. Employees who are on a Performance Improvement Plan at the end of the performance cycle
  10. Employees who are on the rolls as of September 30, but separate from NIST's rolls prior to the third pay period of the fiscal year.

i.  Recording:  The granting of a performance pay increase must be recorded in Section II, Item 2 of the NIST-01.

10.  Performance Bonuses

a.  A performance bonus is a one-time cash award that does not affect base pay.  The decision to grant a bonus is made concurrently with the performance rating decision.  Therefore, a performance bonus can only be given in conjunction with the annual performance rating and pay decisions unless an Unrateable employee meets the requirements set forth in d.(4) below.

b.  Performance bonus allocations are authorized by the NIST Director and allocated to the OU Directors, and then to the Pay Pool Managers. Excess bonus authorizations cannot be used to supplement performance pay increase authorizations.

c.  Performance bonuses may be granted in accordance with the following:

  1. An employee must receive a rating of Exceptional Contributor, Superior Contributor, Meritorious Contributore, Significant Contributor, or Contributor.
  2. Pay Pool Managers have been delegated the full NIST authority to award bonuses of a minimum of $250 up to $10,000.
  3. Employees who are at their pay cap and have received a rating of Exceptional Contributor or Superior Contributor will receive what they would have received as a performance pay increase as an automatic mandatory bonus.  A discretionary bonus may be added to the automatic mandatory bonus as long as the total bonus does not exceed $10,000.
  4. Employees occupying scientific and professional positions authorized by 5 U.S.C. 3104 (ST) are eligible to receive a discretionary bonus.  However, because they are ineligible for performance pay increases, they are ineligible for automatic mandatory bonuses.
  5. Employees who are unrateable at the end of the annual performance cycle because they were promoted during the last 120 calendar days of the performance cycle and have an APMS performance rating of at least Contributor that was effective within 13 months prior to the conclusion of the appraisal cycle are eligible to receive a discretionary bonus.
  6. The granting of a bonus must be recorded in Section II, Item 2 of the NIST-01.

d.  All positions covered by the APMS performance management system are eligible for performance bonuses except:

  1. Employees rated at the Marginal Contributor or Unsatisfactory level
  2. Student appointees (P, Q and Co-op appointments)
  3. Faculty Appointees
  4. Employees who are unrateable at the end of the annual performance cycle (except for c.5 above)
  5. Employees who are on a Performance Improvement Plan.

e.  The amount of a performance bonus or the failure to receive a performance bonus is not grievable

11.  Comparability and Locality Increase

a.  The comparability and locality increase is the annual adjustment to base pay that is effective the first full pay period on or after January 1.  The percentage of comparability and locality increase selected by the NIST Director is applied directly to the base pay of each employee receiving a rating of Contributor or higher.  An employee receiving a rating of Marginal Contributor or Unsatisfactory or an employee who is on a PIP that extends beyond December 31 will not receive a comparability and locality increase.  Unrateable employees and employees rated Contributor or higher are granted the comparability increase (see Section 7(b) (c)).   Employees entering on duty after the performance cycle concludes will receive the comparability and locality increase.

b.  Because the minimum pay rate for each pay band is increased each year by at least the amount of the comparability and locality increase, it is possible that the new minimum rate of a pay band will exceed the basic pay of an employee in that pay band who did not receive the comparability and locality increase.  When this happens, the employee will be placed in the next lower pay band.  The APMS legislation (Public Law 99-574 Section 10(10) (c) (6) (A) and (B)) specifically allows for this and provides that it will not be considered an adverse action under Chapter 75 of Title 5 of the Code of Federal Regulations and, therefore, is not appealable.

c.  Employees on retained pay are entitled to receive a minimum of 50% of the comparability and locality increase.

12.  Reduction-in-Force

a.  Employees may receive additional service credit for reduction-in-force purposes on the basis of their performance.

b.  An APMS employee with an overall performance rating of Exceptional Contributor, Superior Contributor, Meritorious Contributor, Significant Contributor, or Contributor is credited with additional years of service for retention purposes.  The number of additional years is dependent on an employee's rating level: Exceptional Contributor receives ten (10) additional years; Superior Contributor receives eight (8) additional years; Meritorious Contributore receives four (4) additional years; Significant Contributor receives three (3) additional years; and Contributor receives one (1) additional year.

c.  The total credit is based on the employee's three most recent annual performance ratings of record received during the 4-year period prior to an established cutoff date, for a potential total credit of 30 years.

d.  No reduction-in-force credit converts to this system from any other performance appraisal system.

13.  Evaluation

The Personnel Management Board (PMB) manages, evaluates, and makes policy and procedural changes to the NIST APMS system.  In this regard, the PMB evaluates the performance management system with input from managers and supervisors and the Human Resources staff.

14.  Grievances

An employee may grieve their performance rating under the Department of Commerce Administrative Grievance Procedure, DAO-202-771 or negotiated grievance procedures, whichever is applicable.  Under the administrative grievance procedure, an employee must file the informal grievance with the Pay Pool Manager within 15 calendar days after being informed of the decision.  The grievance must be in writing, specifically address performance under the critical elements in dispute, and specifically state what the employee is seeking in relief.  Because performance ratings and pay increases are directly linked, changes to performance rating levels will affect pay increases.

a.  Exclusions:

  1. The content of performance plans are not grievable.
  2. Bonus decisions are not grievable.
  3. Being placed on a PIP and the contents of the PIP is not grievable.
  4. The receipt of an advance written notice of reduction in pay band or removal and the contents of the notice is not grievable.

15.  Record Keeping

a.  The original Performance Plan and Summary Rating Sheet of each employee must be retained in an Employee Performance Folder (EPF) in the employees' immediate organization for a period of four years.   Each OU is responsible for destroying (shredding or burning) the above documents that are over four years old.

b.  When an employee transfers from one NIST organization to another NIST organization, the employee's EPF will be transferred to the gaining organization by the Administrative Officer.

c.  When an employee transfers from NIST to another DOC organization or Federal agency or separates from the Federal Service, the EPF will be transferred with the employee's Official Personnel Folder (OPF).  The Administrative Officer should forward to HRMD the performance plan on which the most recent rating is based as well as the Summary Performance Rating sheet (Section II of the NIST-01) which contains ratings that are 4 years old or less.  The transfer of the EPF will be coordinated by the HRMD.

d.  All provisions and restrictions of the Privacy Act and Freedom of Information Act apply.

16.  Oversight/Accountability/Evaluation

Performance increases and bonuses will be technically reviewed by the Approving Official. Performance increases and bonuses will be administratively reviewed by the Senior Management Advisor to insure delegations are accurate and that performance pay increases and performance bonuses did not exceed authorization.  The HR staff will review the end-of-cycle performance data to ensure all employees are accounted for and the system requirements were applied correctly.   Reports will be provided to the NIST Director detailing rating, pay increase and performance bonus data.  Approval of the NIST Director is required prior to transmission to National Finance Center (NFC) to insure consistency within the Agency that performance pay increases and performance bonuses are within authorized budget.

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