contain a summary statement of the facts on which it based its decision. The board shall send a copy of the decision to the appellant, to the head of the agency, and to the Commission.

§ 430.404 Effect of decision.

When an agency receives notice of a board's increase in an employee's rating, the agency shall correct all records of the original rating, shall reconsider any and all administrative actions based on the original rating, and insofar as possible under the law and regulations and in the public interest, redetermine and adjust those administrative actions to conform to the corrected rating.

PART 451-INCENTIVE AWARDS

The policy of the Commission in administering chapter 45 of title 5, United States Code, is to:

(a) Establish broad principles and standards for the administration of the Incentive Awards Program;

(b) Delegate to heads of agencies authority to establish and operate incentive awards plans consistent with these principles and standards;

(c) Help agency officials develop effective programs;

(d) Encourage exchange of contributions among agencies; and

(e) Review operation of agency plans to strengthen the Government Employees' Incentive Awards Program.

(a) “Agency," "employee,” and “Government" have the meanings given to these terms by section 4501 of title 5, United States Code.

(b) "Plan" means a written statement giving effect to chapter 45 of title 5, United States Code, this part, and the instructions of the Commission concerning the incentive awards program, which has been approved by the head of an agency issuing the plan.

(c) "Contribution" means:

(1) An employee's suggestion, invention, superior accomplishment, or other personal effort contributing to the effciency, economy, or other improvement of Government operations; and

(2) An employee's special act or service in the public interest, connected with or related to his official employment.

(d) "Incentive award or award" means either a cash award, an honorary award, or both.

(e) "Honorary award” means an in

centive award granted by the head of an agency in the form of a certificate, emblem, pin, or other item the employee can wear or display.

(f) "Agency award" means an incentive award granted by the head of an agency for an approved contribution from an employee of that agency.

(g) "Interagency award" means an incentive award granted by the head of an agency for an approved contribution from an employee or employees of another agency.

(h) "Presidential award" means an award granted by the President under section 4504 of title 5, United States Code.

Subpart B-Agency Plans

§ 451.201 Agency plans.

(a) Establishment and change. The head of each agency shall establish and operate a plan to use incentive awards as an integral part of supervision and management, and shall submit any new plan or a change in a plan to the Commission within 30 days of the effective date of the plan or the change.

(b) Authority for awards. The head of an agency may grant an agency or interagency award for a contribution, to an employee, a former employee, or the estate of a deceased employee.

(c) Agency administration. Each plan must provide for:

(1) Central administrative direction and review;

(2) Delegation to bureaus, offices, and field units, of authority and responsibility adequate to ensure maximum compliance with the purposes of chapter 45 of title 5, United States Code, and with this part;

(3) Consideration of the applicability of employee contributions throughout the agency; and

(4) Referral to the appropriate agency or to the Commission of contributions that may apply to other agencies.

(5) Use of the normal management review processes for identification of program areas with superior results that warrant award consideration, and use of this data by management to obtain award recommendations for employees who have made a significant contribution to program success.

[33 F.R. 12444, Sept. 4, 1968, as amended at 34 F.R. 8193, May 27, 1969]

§ 451.202 Awards, promotions, and recognition.

The head of each agency shall provide that:

(a) Due weight be given to incentive awards granted under the Incentive Awards Program when qualifying and selecting for promotion employees who meet the Commission's requirements for promotion; and

(b) Recognition be given to supervisors for the extent of their success in motivating their employees' interests and participation in the Incentive Awards Program.

§ 451.203 Stimulating participation.

To obtain maximum value from the Incentive Awards Program, the head of each agency shall emphasize to supervisors and employees the need for their active participation in improving Government operations.

The head of each agency shall submit to the Commission by September first of each year a report on the operation of the agency's Incentive Awards Program during the preceding fiscal year. Subpart C-Awards

§ 451.301 Basic requirements.

An agency may not grant an incentive award before the contribution has been approved by the benefiting agency. The contribution must have been made while the contributor was a Government employee, and must be described in writing.

§ 451.302 Cash award, tangible benefits. (a) The award. An agency may grant an employee a cash award for a contri

50-005-71-10

bution that exceeds job requirements and that results in tangible benefits exceeding a minimum level selected by the agency. The amount of the award is based on the estimated net money benefit for the first year the contribution is used, and is determined by the table in paragraph (c) of this section, except that an agency head for special reasons may decide a different amount is justified. He shall document his reasons in support of the different amount.

(b) Optional minimum award levels. (1) Three minimum award levels are provided to allow agencies to choose the minimum level which would be most appropriate to the circumstances in which the agency operates. The minimum award level selected by the agency must be incorporated in the agency plan. Tangible benefits

$250-$1,000

$1,001-$10,000

$10,001-$20,000

$20,001-$100,000

$100,001 or more..

(d) Award over $5,000. An agency head may not grant a cash award above $5,000 without prior approval of the Commission. The maximum cash award is $25,000.

[34 F.R. 8193, May 27, 1969]

§ 451.303 Cash award, intangible benefits.

(a) The award. An agency may grant a cash award for a contribution that results in intangible benefits not susceptible to appraisal on the basis of measurable benefits, or for a contribution that involves a combination of tangible and intangible benefits.

(b) Amount of award. The amount of a cash award under this section shall be

Minimum award in accord with agency plan, plus $5 for each additional $50 of tangible benefits, or fraction thereof, above the minimum benefits required by agency plan.

$100 for the first $1,000 in benefits plus $5 for each additional $100 or fraction thereof. $550 for the first $10,000 in benefits plus $5 for each additional $200, or fraction thereof. $800 for the first $20,000 in benefits plus $5 for each additional $1,000, or fraction thereof.

$1,200 for the first $100,000 in benefits plus $5 for each additional $5,000 or fraction thereof.

based on the benefit or value of the contribution to Government operations, considering the extent and scope of the contribution, its significance, and the importance of the programs it affects. The minimum cash award is the same for either tangible or intangible benefits. The minimum award for intangible benefits may be granted when the contribution compares favorably with the minimum level of tangible benefits selected by the agency under § 451.302. (c) Award scale. The amount of a cash award must be based on the table below, except that the head of an agency may specify in his agency's award plan a lesser award amount that must be used.

50-100

Moderate value. Change or modification of an operating 25-501principle or procedure which has moderate value sufficient to meet the minimum standard for a cash award; an improvement of rather limited value of a product, activity, program, or service to the public. Substantial value. Substantial change or modification of 50-100. an operating principle or procedure; an important improvement to the value of a product, activity, program, or service to the public.

100-200.

200-400.

400-1000.

High value. Complete revision of a basic principle or 100-200.

200-400.

400-1000..

1000-2500.

400-1000.

1000-2500.

2500-5000.2

1. The minimum award for tangible benefits can be granted only when the benefits reach or exceed $250. The minimum award for intangible benefits should require a comparably high standard. In determining cash awards for contributions with intangible results, the value to the Government must be comparable to those contributions receiving equivalent awards on the basis of tangible results.

2. Awards in excess of $5,000 must be certified to the U.S. Civil Service Commission for approval.

Application of the scale to a position not under the General Schedule shall be made by comparing the annual entrance pay for the grade. For a Wage Position, the annual entrance pay is determined by multiplying the entrance hourly rate by 2080. An agency may make an exception from the scale only in a unique case of unusual merit and when the reason therefor is documented.

[34 F.R. 9795, June 25, 1969]

§ 451.304 Effect of an award on pay.

(a) Pay. A cash award under this part is in addition to the regular pay of the recipient.

(b) Further claim. The acceptance of a cash award under this part constitutes an agreement that the use by the Government of a contribution, idea, method or device for which an incentive award is made does not form the basis of a further claim of any nature against the Government by the employee, his heirs, or his assigns.

§ 451.305 Honorary award.

An agency may grant an honorary award for a contribution. An honorary award may be granted in addition to a cash award.

§ 451.306 Group awards.

(a) The award. When a contribution is made by more than one employee, each contributing employee, including a supervisor, may share in the award.

(b) Cash award shares. An agency may grant the employees a cash award

in equal shares, or in shares proportionate to each employee's participation in the contribution.

(c) Amount of cash award. The total amount of a cash award to a group may not exceed the amount that would be authorized if the contribution had been made by one individual, except that an agency head for special reasons may decide a different amount is justified. He must document his reasons in support of the different amount.

§ 451.307 Presidential award.

Each agency shall submit any recommendation for a Presidential award in accordance with instructions issued by Civilian Distinguished Service

the

Awards Board.

§ 451.308 Interagency award.

The head of an agency in which a contribution originates may grant an incentive award for a contribution that also may benefit another agency. The initial award is based on the benefit to the originating agency before consideration of additional benefits to another agency.

§ 451.309 Interagency referral.

(a) Originating agency. The head of each agency in which a contribution originates shall establish a procedure that requires that the contribution be referred to other agencies which may benefit from it. The referral to other agencies shall be made only after consideration of the applicability of the contribution in the originating agency.

(b) Referral to one agency. When the agency in which a contribution originates determines that only one other agency is responsible for acting on the contribution, it shall refer the contribution to that agency. The agency to which the contribution is referred shall notify the orginating agency of the action on the contribution and shall send a copy of the notification to the Commission.

(c) Referral to Commission. When the orginating agency determines that more than one other agency is responsible for acting on the contribution, it shall refer the file to the Commission, with information on the activities in other agencies that may benefit from the contribution. § 451.310 Award by other benefiting

agency.

(a) Contribution approved. When the head of an agency approves a contribu