S.Amdt. 6070

SA 6070. Mr. CURTIS submitted an amendment intended to be proposed by
him to the bill S. 4784, to authorize appropriations for fiscal year
2027 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:

At the end of title X, add the following:

Subtitle ___--Research Program and Demonstration Project

SEC. ___01. DEFINITIONS.

In this subtitle:
(1) Academy.--The term ``Academy'' means the National
Academy of Public Administration.
(2) Agency; employee; demonstration project; research
program.--The terms ``agency'', ``employee'', ``demonstration
project'', and ``research program'' have the meanings given
those terms in section 4701(a) of title 5, United States
Code.
(3) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(A) the Committee on Homeland Security and Governmental
Affairs of the Senate; and
(B) the Committee on Oversight and Government Reform of the
House of Representatives.
(4) Career level.--The term ``career level'' means a
cluster of positions within a job family that--
(A) reflects a distinct level of work within the job
family, as indicated by--
(i) the duties of the positions in the cluster; and
(ii) the acquired skills, knowledge, and experience
necessary for employees to fulfill the duties described in
clause (i); and
(B) relative to other clusters of positions, is
distinguished by characteristics such as the scope of
responsibility, degree of independence, and nature of
contribution expected of employees occupying positions within
the cluster.
(5) Comptroller general.--The term ``Comptroller General''
means the Comptroller General of the United States.
(6) Covered demonstration project.--The term ``covered
demonstration project'' means the demonstration project
described in section ___2(a), the structure and
implementation with respect to which are established under
section ___2(d).
(7) Director.--The term ``Director'' means the Director of
the Office of Personnel Management.
(8) Federal salary council.--The term ``Federal Salary
Council'' means the Federal Salary Council established under
section 5304(e) of title 5, United States Code.
(9) Job family.--The term ``job family'' means a grouping
of occupations in which--
(A) the occupations are commonly understood to be similar
in the relevant industry, to the extent practicable; and

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(B) the grouping consists of a broad pool of comparable
jobs that may not be interchangeable but that share similar
tasks, competencies, and knowledge bases.
(10) Pay compression.--The term ``pay compression'' means a
situation in which there is no, or a small, relative
difference in compensation between workers despite
substantial differences in the experience, tenure, or
abilities of those workers or the market rate for the labor
of those workers.
(11) Pay disparity.--The term ``pay disparity'' means the
extent to which rates of pay for work under a Federal pay
system are generally lower than the rates of pay for similar
and commensurate non-Federal work in the same labor market,
including with respect to career level, geographic area, and
job family characteristics.

SEC. ___02. RESEARCH PROGRAM AND DEMONSTRATION PROJECT TO
MODERNIZE FEDERAL EMPLOYEE COMPENSATION.

(a) In General.--Subject to subsection (e), the Director
shall use the authorities under chapter 47 of title 5, United
States Code, to carry out a research program and a
demonstration project to study and test modernized methods of
classifying positions and compensating employees, each of
which shall be designed, implemented, and evaluated in a
manner that advances the goals described in subsection (b).
(b) Goals of the Research Program and Demonstration
Project.--The goals described in this subsection are to
improve the ability of the Federal Government to--
(1) recruit and retain individuals who have the knowledge,
skills, and abilities to--
(A) faithfully execute statutes;
(B) efficiently achieve Government priorities; and
(C) effectively deliver services to the public;
(2) compete in every relevant labor market in the United
States for talent, including by reducing pay disparities;
(3) take advantage of leading compensation management
practices to calibrate Federal compensation offerings to the
labor markets in which agencies operate, which--
(A) shall include the use of cost-of-labor indicators
provided by the Bureau of Labor Statistics; and
(B) may include the use of cost-of-living indicators
provided by the Bureau of Labor Statistics;
(4) effectively navigate personnel classification and
compensation systems that are--
(A) coherent across agencies and job families; and
(B) adaptable to changing labor markets and evolving human
resources best practices;
(5) ensure similar and consistent compensation for similar
and commensurate work that occurs across the Federal
Government, the private sector, and the non-Federal public
sector;
(6) ensure that processes for setting compensation under a
Federal pay system factor in labor market variation,
including with respect to geographic area and job family
characteristics; and
(7) alleviate pay compression within Federal pay systems.
(c) Contract to Produce Reports; Research Program.--
(1) In general.--Not later than 30 days after the date of
enactment of this Act, the Director shall enter into a
contract with the Academy under which the Academy shall
submit the initial report described in paragraph (4) and the
subsequent report described in section ___3(c).
(2) Consultation.--While developing each report described
in paragraph (1), the Academy shall consult with the Director
and the Federal Salary Council.
(3) Data access.--The Director, the Director of the Office
of Management and Budget, and the Secretary of Labor shall
grant the Academy access to all reasonable data needed for
the Academy to produce the reports described in paragraph
(1).
(4) Initial report.--
(A) Draft version.--Not later than 335 days after the date
on which the Director enters into a contract with the Academy
under paragraph (1), the Academy shall submit to the
Director, the appropriate committees of Congress, and the
Comptroller General a draft version of the report required
under this paragraph, which shall--
(i) review modern methodologies and leading human resources
practices for classifying positions and establishing
compensation for employees based on a principle of labor
market comparability between positions in the Federal
Government and positions outside of the Federal Government;
(ii) assess the tradeoffs associated with the various
methodologies and practices reviewed under clause (i),
including potential tradeoffs if applied to classifying
Federal positions and establishing compensation for employees
so as to be comparable with non-Federal employment;
(iii) include a comprehensive list of relevant indices or
other measurable labor market factors and data to inform
strategies for classifying Federal positions and establishing
compensation for employees;
(iv) in accordance with the requirements of paragraph (5),
recommend the design of the covered demonstration project,
and an ongoing research program (which shall begin with the
report required under this paragraph and continue with
efforts by the Director to continue to analyze the matters to
which that report applies), in support of the goals described
in subsection (b); and
(v) describe how the recommendations under clause (iv) will
use labor market measures and advance the goals described in
subsection (b).
(B) Final version.--Not later than 30 days after the date
on which the Academy submits the draft report under
subparagraph (A), the Academy shall submit to the appropriate
committees of Congress, the Director, and the Comptroller
General, and shall make publicly available on the website of
the Academy, the final version of the report required under
this paragraph, which shall contain an analysis of all of the
matters described in subparagraph (A).
(5) Requirements of demonstration project
recommendations.--The Academy, to develop the recommendations
described in paragraph (4)(A)(iv), shall assess and discuss
within each version of the report required under paragraph
(4)--
(A) whether the covered demonstration project should
involve a job classification scheme that--
(i) organizes occupations into job families;
(ii) determines the appropriate number and types of career
levels within each job family;
(iii) establishes pay tables specific to each job family
that factor in relevant labor market measures, such as cost-
of-labor or cost-of-living indices; and
(iv) considers variations of labor market measures across
geographic areas and different categories of occupations;
(B) the appropriate sites, agencies, occupations, and
positions for the covered demonstration project in order to--
(i) prioritize States, regional markets, or geographic
areas in which--

(I) pay disparities are compounded by rapid growth in
private sector compensation; and
(II) there have been demonstrated sustained difficulties in
recruiting or retaining employees in defense or technical
positions despite the use of existing compensation
flexibilities; and

(ii) ensure that all agencies, occupations, and positions
within a given geographic area are included in the site for
the covered demonstration project;
(C) whether any sites in addition to the sites described in
subparagraph (B) should be incorporated into the covered
demonstration project in order to--
(i) make the covered demonstration project more
representative of the Federal workforce as a whole; or
(ii) better inform future expansion of the methods featured
in the covered demonstration project; and
(D) whether the covered demonstration project would
significantly benefit from an adjustment to the limitation
under section 4703(d)(1)(A) of title 5, United States Code,
in order to obtain meaningful results from the covered
demonstration project, including--
(i) the minimum level of such an adjustment; and
(ii) the ideal level of such an adjustment.
(6) Additional research.--As part of the research program
described in subsection (a), the Director may conduct such
additional research as the Director determines necessary to
carry out the responsibilities of the Director under section
___3(b).
(d) Structure and Implementation of Demonstration
Project.--
(1) In general.--Not later than 180 days after the date on
which the Academy submits the report required under
subsection (c)(4)(B), the Director shall, subject to
paragraph (2), and in consultation with the Academy and the
Federal Salary Council--
(A) develop a proposed project plan for the covered
demonstration project, which shall be consistent with the
requirements under section 4703(b)(1) of title 5, United
States Code;
(B) with respect to the proposed project plan developed
under subparagraph (A)--
(i) publish that proposed project plan in the Federal
Register, as required under section 4703(b)(2) of title 5,
United States Code; and
(ii) submit to the Comptroller General the proposed project
plan, along with any additional materials requested by the
Comptroller General, so that the Comptroller General may
conduct the assessment required under paragraph (3); and
(C) provide the notifications required under section
4703(b)(4) of title 5, United States Code.
(2) Plan design.--The proposed project plan developed under
paragraph (1) shall--
(A) align with--
(i) the recommendations for the design of the covered
demonstration project provided by the Academy in the report
submitted under subsection (c)(4)(B); and
(ii) the goals described in subsection (b); and
(B) include a description of how the proposed project plan
aligns with the recommendations and goals described in
subparagraph (A).
(3) Review and assessment.--Not later than 90 days after
the date on which the Director submits the proposed project
plan developed under paragraph (1) to the Comptroller
General, as required under subparagraph (B)(ii) of that
paragraph, the Comptroller General shall--
(A) assess the extent to which the proposed project plan--
(i) aligns with recommendations in the report submitted by
the Academy under subsection (c)(4)(B); and
(ii) follows the principles of effective pilot project
design; and

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(B) submit to the appropriate committees of Congress a
report, and brief the appropriate committees of Congress,
regarding the assessment conducted under subparagraph (A).
(4) Finalization and implementation.--Not later than 270
days after the date on which the Director submits the
proposed project plan developed under paragraph (1) to the
Comptroller General, as required under subparagraph (B)(ii)
of that paragraph, the Director shall--
(A) finalize the project plan for the covered demonstration
project, including by completing all requirements for a
demonstration project, as established under section 4703 of
title 5, United States Code, and part 470 of title 5, Code of
Federal Regulations, or any successor regulations; and
(B) begin carrying out the covered demonstration project.
(e) Authorities and Limitations.--
(1) Limitation on scope of demonstration project.--
Notwithstanding section 4703(a) of title 5, United States
Code, the Director, in carrying out the covered demonstration
project, may only take an action for which authority is
lacking under that title, or that is inconsistent with a
provision of that title (or a regulation prescribed under
that title), if--
(A) that action--
(i) is directly related to the methods of classifying
positions and compensating employees; or
(ii)(I) relates to--

(aa) the methods of providing incentives to employees,
including the provision of a group of individual incentive
bonuses or pay;
(bb) the methods of establishing qualification requirements
for a position; or
(cc) the hours of work per day or per week; and

(II) will significantly affect the ability of the Director
to assess a method of classifying positions and compensating
employees; and
(B) the Director briefs the appropriate committees of
Congress regarding, and makes public, the reasons why that
action is necessary to carry out the covered demonstration
project.
(2) Adjustment to size of demonstration project.--The
Director may adjust the number of individuals described in
section 4703(d)(1)(A) of title 5, United States Code, with
respect to the covered demonstration project, if the report
submitted under subsection (c)(4)(B) specifically recommends
such an adjustment.
(3) Exclusion from limitation on number of demonstration
projects.--The covered demonstration project shall be
excluded from the total number of allowed demonstration
projects under section 4703(d)(2) of title 5, United States
Code.
(4) Termination.--
(A) In general.--Notwithstanding section 4703(d)(1)(B) of
title 5, United States Code, the covered demonstration
project shall terminate on a date--
(i) that is not earlier than 5 years after the date on
which the Director begins implementing the plan for the
covered demonstration project under subsection (d)(3)(C); and
(ii) that the Director determines is appropriate in order
to validate the results of the covered demonstration project.
(B) Notification of date.--With respect to the termination
date determined appropriate by the Director under
subparagraph (A), the Director shall--
(i) brief the appropriate committees of Congress regarding
that date; and
(ii) release to the public the reasons for making that
determination.
(5) Prohibition of compensation decreases during conversion
into and out of the demonstration project.--
(A) In general.--The covered demonstration project may not
result in a decrease of the rate of pay for any employee
involved in the covered demonstration project compared to
what the rate of pay for the employee would be if the
employee continued to be classified and compensated under the
applicable pay and classification system in place at the time
of transition to the covered demonstration project.
(B) Termination of demonstration project.--Upon the
termination of the covered demonstration project, the rate of
pay for an employee may not be reduced as a result of
conversion of the position of the employee to a prior pay and
classification system.
(6) Labor organization consent requirement.--Employees
within a unit with respect to which an agency had, as of
March 26, 2025, granted exclusive recognition to a labor
organization under chapter 71 of title 5, United States Code,
shall not be included within the covered demonstration
project unless the head of that agency and that labor
organization enter into a written agreement allowing for the
inclusion of those employees.
(f) Authorization of Appropriations.--There is authorized
to be appropriated $3,000,000 to the Director to carry out
this section, which shall remain available until expended.

SEC. ___03. ONGOING RESEARCH, OVERSIGHT, AND REPORTING
REQUIREMENTS.

(a) Government Accountability Office.--
(1) Ongoing briefings on research program and demonstration
project.--Not later than 180 days after the date on which the
Director begins implementing the covered demonstration
project, and on at least a biannual basis thereafter until
the termination of the covered demonstration project, the
Comptroller General shall--
(A) provide a briefing to the appropriate committees of
Congress on the status of assessments of, and findings
related to, the design of the research program described in
section ___2(a) and the covered demonstration project; and
(B) include within each briefing described in subparagraph
(A) each committee of the Senate and the House of
Representatives with jurisdiction over an agency directly
involved in the demonstration project.
(2) Reports on the demonstration project.--
(A) In general.--During the fourth year of the covered
demonstration project, and every 2 years thereafter until the
termination of the covered demonstration project, the
Comptroller General shall submit to Congress a report on
findings related to the effectiveness of the covered
demonstration project in achieving the goals described in
section ___2(b), the methodologies used in the evaluation by
the Director of the covered demonstration project, and the
applicability of those findings to additional States,
geographic areas, and job families.
(B) Updates.--Not earlier than 1 year, and not later than
180 days, before the termination of the covered demonstration
project, the Comptroller General shall submit to Congress any
updates to findings reported by the Comptroller General under
subparagraph (A).
(b) Office of Personnel Management.--
(1) Ongoing briefings.--Not later than 60 days after the
date on which the Director enters into the contract required
under section ___2(c)(1), and on at least a biannual basis
thereafter until the termination of the covered demonstration
project, the Director shall--
(A) provide a briefing to the appropriate committees of
Congress on the status of the development and design of the
research program described in section ___2(a) and the covered
demonstration project; and
(B) include within each briefing described in subparagraph
(A) each committee of the Senate and the House of
Representatives with jurisdiction over an agency directly
involved in the covered demonstration project.
(2) Report on research program and demonstration project.--
As part of the evaluation requirements associated with the
use of the authority under chapter 47 of title 5, United
States Code, the Director shall, not later than 4 years after
the date on which the Director begins carrying out the
covered demonstration project, submit to the appropriate
committees of Congress a report, which shall be made publicly
available, that includes analyses and recommendations
regarding--
(A) aspects of the covered demonstration project that--
(i) advanced the goals described in section ___2(b), with
evidence toward that determination; and
(ii) deviated from or failed to advance the goals described
in section ___2(b), with evidence toward that determination;
(B) whether the covered demonstration project should be
extended for additional years and reasons why;
(C) what aspects of the covered demonstration project, if
any, should be expanded to other States, geographic areas, or
agency positions, including to what extent and on what
timeline;
(D) what changes to law, regulation, or agency practice
would be necessary to expand successful aspects of the
covered demonstration project to additional States,
geographic areas, or agency positions; and
(E) what steps the Director is taking or requesting to
ensure that the Office of Personnel Management has the
necessary capacity to expand successful aspects of the
covered demonstration project to additional States,
geographic areas, or agency positions.
(c) Additional Academy Report.--
(1) In general.--During the third year of the covered
demonstration project, the Academy shall submit to the
appropriate committees of Congress, the Director, and the
Comptroller General, and shall make publicly available on the
website of the Academy, a report demonstrating how the
methods featured in the covered demonstration project could
be applied across executive branch positions.
(2) Elements of the report.--The report required under
paragraph (1) shall--
(A) include analyses and recommendations demonstrating how
the featured approach in the covered demonstration project,
if applied toward Government-wide job classification and
compensation reform, would--
(i) be consistent with or deviate from the goals described
in section ___2(b);
(ii) account for geographic variations in labor market
characteristics across the United States;
(iii) address pay compression issues;
(iv) require ongoing monitoring of economic indicators
across various labor markets;
(v) require additional Office of Personnel Management
capacity; and
(vi) consider how to expand the reforms in a way that--

(I) minimizes disruptions to agency capacity and
efficiency; and
(II) prevents negative impacts to employees;

(B) identify--
(i) the changes to law, regulation, or agency practices
that are necessary to utilize the

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methods with demonstrated success toward achieving the goals
described in section ___2(b); or
(ii) any further research programs or demonstration
projects that would be necessary before identifying the
changes described in clause (i); and
(C) recommend a transition process for implementing any
changes to law, regulation, or agency practices identified
under subparagraph (C) to prevent unintended--
(i) disruptions to agency capacity or efficiency; and
(ii) disincentives toward Federal employment.
______