
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 5USC4703]

 
             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
 
                           PART III--EMPLOYEES
 
                     Subpart C--Employee Performance
 
   CHAPTER 47--PERSONNEL RESEARCH PROGRAMS AND DEMONSTRATION PROJECTS
 
Sec. 4703. Demonstration projects

    (a) Except as provided in this section, the Office of Personnel 
Management may, directly or through agreement or contract with one or 
more agencies and other public and private organizations, conduct and 
evaluate demonstration projects. Subject to the provisions of this 
section, the conducting of demonstration projects shall not be limited 
by any lack of specific authority under this title to take the action 
contemplated, or by any provision of this title or any rule or 
regulation prescribed under this title which is inconsistent with the 
action, including any law or regulation relating to--
        (1) the methods of establishing qualification requirements for, 
    recruitment for, and appointment to positions;
        (2) the methods of classifying positions and compensating 
    employees;
        (3) the methods of assigning, reassigning, or promoting 
    employees;
        (4) the methods of disciplining employees;
        (5) the methods of providing incentives to employees, including 
    the provision of group or individual incentive bonuses or pay;
        (6) the hours of work per day or per week;
        (7) the methods of involving employees, labor organizations, and 
    employee organizations in personnel decisions; and
        (8) the methods of reducing overall agency staff and grade 
    levels.

    (b) Before conducting or entering into any agreement or contract to 
conduct a demonstration project, the Office shall--
        (1) develop a plan for such project which identifies--
            (A) the purposes of the project;
            (B) the types of employees or eligibles, categorized by 
        occupational series, grade, or organizational unit;
            (C) the number of employees or eligibles to be included, in 
        the aggregate and by category;
            (D) the methodology;
            (E) the duration;
            (F) the training to be provided;
            (G) the anticipated costs;
            (H) the methodology and criteria for evaluation;
            (I) a specific description of any aspect of the project for 
        which there is a lack of specific authority; and
            (J) a specific citation to any provision of law, rule, or 
        regulation which, if not waived under this section, would 
        prohibit the conducting of the project, or any part of the 
        project as proposed;

        (2) publish the plan in the Federal Register;
        (3) submit the plan so published to public hearing;
        (4) provide notification of the proposed project, at least 180 
    days in advance of the date any project proposed under this section 
    is to take effect--
            (A) to employees who are likely to be affected by the 
        project; and
            (B) to each House of the Congress;

        (5) obtain approval from each agency involved of the final 
    version of the plan; and
        (6) provide each House of the Congress with a report at least 90 
    days in advance of the date the project is to take effect setting 
    forth the final version of the plan as so approved.

    (c) No demonstration project under this section may provide for a 
waiver of--
        (1) any provision of chapter 63 or subpart G of this title;
        (2)(A) any provision of law referred to in section 2302(b)(1) of 
    this title; or
        (B) any provision of law implementing any provision of law 
    referred to in section 2302(b)(1) of this title by--
            (i) providing for equal employment opportunity through 
        affirmative action; or
            (ii) providing any right or remedy available to any employee 
        or applicant for employment in the civil service;

        (3) any provision of chapter 15 or subchapter III of chapter 73 
    of this title;
        (4) any rule or regulation prescribed under any provision of law 
    referred to in paragraph (1), (2), or (3) of this subsection; or
        (5) any provision of chapter 23 of this title, or any rule or 
    regulation prescribed under this title, if such waiver is 
    inconsistent with any merit system principle or any provision 
    thereof relating to prohibited personnel practices.

    (d)(1) Each demonstration project shall--
        (A) involve not more than 5,000 individuals other than 
    individuals in any control groups necessary to validate the results 
    of the project; and
        (B) terminate before the end of the 5-year period beginning on 
    the date on which the project takes effect, except that the project 
    may continue beyond the date to the extent necessary to validate the 
    results of the project.

    (2) Not more than 10 active demonstration projects may be in effect 
at any time.
    (e) Subject to the terms of any written agreement or contract 
between the Office and an agency, a demonstration project involving the 
agency may be terminated by the Office, or the agency, if either 
determines that the project creates a substantial hardship on, or is not 
in the best interests of, the public, the Federal Government, employees, 
or eligibles.
    (f) Employees within a unit with respect to which a labor 
organization is accorded exclusive recognition under chapter 71 of this 
title shall not be included within any project under subsection (a) of 
this section--
        (1) if the project would violate a collective bargaining 
    agreement (as defined in section 7103(8) of this title) between the 
    agency and the labor organization, unless there is another written 
    agreement with respect to the project between the agency and the 
    organization permitting the inclusion; or
        (2) if the project is not covered by such a collective 
    bargaining agreement, until there has been consultation or 
    negotiation, as appropriate, by the agency with the labor 
    organization.

    (g) Employees within any unit with respect to which a labor 
organization has not been accorded exclusive recognition under chapter 
71 of this title shall not be included within any project under 
subsection (a) of this section unless there has been agency consultation 
regarding the project with the employees in the unit.
    (h) The Office shall provide for an evaluation of the results of 
each demonstration project and its impact on improving public 
management.
    (i) Upon request of the Director of the Office of Personnel 
Management, agencies shall cooperate with and assist the Office, to the 
extent practicable, in any evaluation undertaken under subsection (h) of 
this section and provide the Office with requested information and 
reports relating to the conducting of demonstration projects in their 
respective agencies.

(Added Pub. L. 95-454, title VI, Sec. 601(a), Oct. 13, 1978, 92 Stat. 
1186.)


    Authority of Export-Import Bank To Conduct Demonstration Program

    Pub. L. 104-97, Sec. 2, Jan. 11, 1996, 109 Stat. 984, provided that: 
``Notwithstanding section 4701(a)(1)(A) of title 5, United States Code, 
the Export-Import Bank of the United States may conduct a demonstration 
project in accordance with section 4703 of such title.''

                  Section Referred to in Other Sections

    This section is referred to in sections 5392, 9507 of this title.
