Demonstration Project Authority a Possible Compromise

While the union rights issue currently has both sides dug in, there could be room for a compromise on the general job rights of the estimated 170,000 employees who would be transferred into the new Homeland Security Department through use of “demonstration project” authority. In such projects, agencies are allowed to test alternative personnel approaches such as broad banding, pay for performance and other non-standard policies. Earlier, the House Government Reform Committee managed to gain passage of the portions of the bill under its control by providing the proposed agency with authority to conduct a demonstration project-potentially agency-wide-to include any provisions that the agency deemed necessary for its mission, subject to merit principles and other basic employee rights and to congressional approval. While that provision was dropped as the bill moved through the House, it could become the basis for a compromise on the employee rights issue. A demonstration project authority would essentially allow the administration the flexibility it seeks but would keep the system open to congressional scrutiny and make the changes only temporary unless formally made permanent later.