Defense Primer: DOD Appropriated Fund Civilians

Defense Primer: DOD Appropriated Fund Civilians

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March 12, 2019
Defense Primer: DOD Appropriated Fund Civilians
Background and History
Figure 1. DOD Civilian and Active Duty Personnel
The Department of Defense (DOD) workforce consists of
As of December 31, 2018
military personnel, civilian employees, and contractors. A
DOD civilian does not serve in the military but is instead
appointed to the federal civil service. DOD civilians work
for the military departments (i.e., Army, Navy, and Air
Force) as well as other defense agencies and field activities
(e.g., Defense Health Agency). Federal civilians have
supported the armed forces as far back as the American
Revolution. For example, in World War II, civilians
provided medical and logistics support to military
personnel. The DOD civilian workforce has evolved over
time to meet the growing needs of the department and the
changing landscape of national defense.
Appropriated fund white-collar employees comprise a large
portion of the DOD civilian workforce. They are distinct

from other categories of DOD civilians, such as
Source: CRS analysis of Defense Manpower Data Center data.
nonappropriated fund civilians and those covered by the
Notes: The figure depicts permanent, appropriated fund civilians
Federal Wage System (e.g., blue-collar employees).
(which may include blue-col ar employees paid under the Federal
Roles and Responsibilities
Wage System). It does not include nonappropriated fund civilians,
U.S. Coast Guard employees, reserve components, or contractors.
DOD civilians contribute to the defense and protection of
the nation. They provide direct and indirect support to the
They can provide continuity. Civilians provide continuity
warfighter across numerous disciplines, such as
within DOD, which may be unique at the department due to
engineering, supply management, information technology,
the rotational nature of military personnel assignments.
cybersecurity, intelligence, financial management, and law.
Many civilians remain in the same positions and duty
For example, some civilians directly support military
locations for their entire careers, which enables them to
operations by training, advising, and assisting military
build and retain institutional knowledge of programs and
personnel from other nations to build defense capacity in
operations that are critical to the success of DOD’s mission.
areas such as ground logistics, cybersecurity, and combat
Military personnel, by contrast, often rotate to different
readiness. Other civilians help procure, build, test, or
duty locations every few years throughout their careers and
maintain major weapons systems used by military
possibly to different positions within their respective career
personnel in operations.
fields.
Workforce Statistics
They can deploy. Some DOD civilians deploy—either
DOD employs one of the largest civilian workforces in the
voluntarily or as a condition of their employment—to
federal government. As shown in Figure 1, DOD employed
overseas locations such as Iraq or Afghanistan. They work
744,005 appropriated fund civilians as of December 31,
alongside deployed military personnel to ensure the success
2018. The Army housed the largest portion (33%) of all
of combat, post-combat, or humanitarian operations.
appropriated fund civilians, whereas the Marine Corps
housed the smallest portion (2%).
They have longer probationary periods. Many DOD
Distinguishing Characteristics
civilians must complete a probationary period of at least
two years, compared to a one-year period for other
In many cases, DOD civilians possess the same or similar
permanent civilian employees in the competitive service.
characteristics as other federal employees. In some cases,
For example, DOD cybersecurity positions operating under
however, DOD civilians possess characteristics that
10 U.S.C. Section 1599f require a three-year probationary
distinguish them from certain federal civilians and military
period.
personnel. Examples are described below.
They must obtain DOD-specific certifications. In some
cases, statutes require DOD civilians in certain career fields
to meet special, DOD-specific credentialing and
certification standards. For example, pursuant to 10 U.S.C.
Section 1599d, DOD financial management personnel must
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Defense Primer: DOD Appropriated Fund Civilians
obtain one of three applicable DOD financial management
in Title 5 of the U.S. Code. The process requires procedures
certifications to qualify for their respective civilian
such as posting the position on USAJOBS, rating and
positions, which require mastery of related competencies.
ranking applicants against position qualification
requirements to determine who is best qualified, and
They have distinct reduction-in-force procedures. A
application of veterans’ preference.
reduction-in-force, or layoff, often occurs due to a shortage
of funds or a reorganization within an agency. Unlike other
Other non-SES civilians, however, are appointed to DOD
civilian employees, DOD civilians may be retained during a
positions under special hiring flexibilities that are intended
reduction-in-force based on individual performance rather
to simplify and/or accelerate the hiring process. In general,
than tenure.
hiring flexibilities may waive or alter the application of
some or all Title 5 competitive hiring requirements.
Workforce Management
DOD manages its civilian workforce according to total
Pay and Classification
force management and civilian personnel management
DOD civilians operate under government-wide or agency-
requirements in Title 10 of the U.S. Code.
specific personnel systems. Many of DOD’s white-collar
employees operate under the General Schedule (GS). GS
Total force management (10 U.S.C. §129a). The
employees are classified into different occupational series
Secretary of Defense must determine “the most appropriate
(e.g., engineer), as well as one of 15 pay grades that each
and cost efficient mix” of military, civilian, and contractor
have 10 tenure-based steps with individual pay rates. Other
personnel to perform DOD’s mission. In so doing, the
white-collar civilians operate under separate government-
statute states that functions performed by civilian personnel
wide pay and/or personnel systems, such as the SES, Senior
“should not be performed by military personnel,” with
Level, and Scientific or Professional systems.
some exceptions. The statute further requires the military
department secretaries to reserve military personnel for
Civilians in certain career fields operate under DOD-
functions that “are required to be performed by military
specific alternative personnel systems that feature unique
personnel to achieve national defense goals or in order to
occupational and pay structures and deviate from the GS.
enable the proper functioning of the military department.”
For example, employees covered by the DOD Civilian
Acquisition Personnel Demonstration Project (AcqDemo)
Civilian personnel management (10 U.S.C. §129). DOD
are classified into one of three career paths (which include
must manage its civilian workforce consistent with (1) the
multiple occupations). Each career path has three or four
total force management policy established pursuant to 10
pay bands that span wider ranges compared to GS grades.
U.S.C. Section 129a, (2) the workload required to carry out
departmental functions, and (3) available funds each year.
Performance Management
The statute requires any limitation on civilian end strength,
In April 2016, DOD began a phased implementation of the
full-time equivalent positions, or maximum number of
Defense Performance Management and Appraisal System
employees to be made according to these factors.
(DPMAP) as part of the New Beginnings initiative—a
cooperative labor-management initiative intended to
Recruitment, Hiring, and Pay
improve DOD human resources policies to better recruit
Recruitment, hiring, and pay procedures for white-collar
and retain talent. New Beginnings was created in response
DOD civilians can vary depending on their governing
to P.L. 111-84, which required DOD to promulgate
statutes. Many DOD civilians operate under Title 5 of the
regulations that provide a “fair, credible, and transparent
U.S. Code, which governs the majority of federal civilian
performance appraisal system,” among other things.
employees. Others, however, operate under separate
statutes, such as Title 10 (e.g., cybersecurity), Title 50
DPMAP prescribes a method to manage, rate, and reward
(e.g., intelligence), and Title 32 (e.g., National Guard dual
employee performance, with an aim to clearly link
status technicians). Procedures can also vary depending on
employee performance to organizational goals. Employees
whether a civilian is appointed to the competitive service,
create performance objectives that specify their projected
excepted service, or Senior Executive Service (SES).
contributions to the organization’s mission and
subsequently receive one of three ratings (outstanding, fully
Recruitment
successful, or unacceptable) based on those contributions.
DOD recruits civilians through a variety of methods. Many
DOD stated that DPMAP will cover the majority of DOD
civilians enter the department’s workforce through
civilians, though some are excluded, such as employees
USAJOBS, the federal government’s official website for
covered under alternative pay systems (e.g., AcqDemo).
federal employment opportunities. Others may enter
through special recruitment programs—both government-
Kathryn A. Francis, Analyst in Government Organization
wide and department-specific—such as developmental
and Management
programs (e.g., internships, fellowships, and scholarships);
Ramona J. Diaz, Air Force Legislative Fellow
personnel exchange programs; and interagency hires.
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Hiring
Many non-SES DOD civilians are appointed to positions
through the traditional competitive hiring process mandated

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Defense Primer: DOD Appropriated Fund Civilians

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
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