UNDER SECRETARY OF DEFENSE
4000 DEFENSE PENTAGON
WASHINGTON, D.C. 2O3OI-4OOO

NOV 21 2000




MEMORANDUM FOR ASSISTANT SECRETARY OF THE ARMY
    (MANPOWER AND RESERVE AFFAIRS)
    ASSISTANT SECRETARY OF THE NAVY
    (MANPOWER AND RESERVE AFFAIRS)
    ASSISTANT SECRETARY OF THE AIR FORCE
    (MANPOWER, RESERVE AFFAIRS, INSTALLATIONS, AND ENVIRONMENT)
    DIRECTOR, ADMINISTRATION AND MANAGEMENT
    DIRECTORS OF THE DOD AGENCIES
    DIRECTORS OF THE DOD FIELD ACTIVITIES

SUBJECT: Civilian High-Grade Control Program



By Executive Order dated February 10,1993, President Clinton directed Federal agencies to reduce full-time equivalent positions by at least 100,000 by the end of FY 1995. The Office of Management and Budget directed that a proportionate share of those reduction must come from the high-grade workforce, i.e., SES, GS-14, and equivalent positions. Since 1995, we have continued the high-grade controls as a necessary resource management tool.

Eleven consecutive years of downsizing have resulted in a DoD civilian workforce that is very different from that of 1989 in terms of age, occupational profile, grade, and educational level. Because of our comprehensive transition program, we have come through the period with far less trauma than might otherwise have been the case; for example, less than 9 percent of the reductions have come through involuntary separations or reductions in force. However, we now face the need to fine-tune our efforts and shape the workforce for needs of the 21st century. In other words, even though we have modified the program considerably in the past five years, we need greater flexibility than it can provide.

Therefore, we are discontinuing the Department-wide high-grade controls. We expect that all managers and supervisors will continue to exercise appropriate prudence in addressing both their human resource and budgetary needs. This additional flexibility should provide an opportunity to meet the recruitment, development, and retention goals that will make our civilian workforce fully effective and efficient.

If you have any questions about the policy, my point of contact is Dr. Diane M. Disney, Deputy Assistant Secretary for Civilian Personnel Policy, who maybe reached at (703) 614-9487.



//original signed//
Bernard Rostker


Enclosure