((a)) ** .—**
((1)) The Secretary of Defense may—
((A)) establish, as positions in the excepted service, such qualified positions in the Department of Defense as the Secretary determines necessary to carry out the responsibilities of the United States Cyber Command, including—
((i)) positions held by staff of the headquarters of the United States Cyber Command;
((ii)) positions held by elements of the United States Cyber Command enterprise relating to cyberspace operations, including elements assigned to the Joint Task Force-Department of Defense Information Networks;
((iii)) positions held by elements of the military departments supporting the United States Cyber Command;
((iv)) positions held in combatant commands, defense agencies, and field activities supporting the United States Cyber Command; and
((v)) up to 500 positions not otherwise described in clauses (i) through (iv) that the Secretary determines are hard-to-fill, highly skilled positions critical to cyberspace planning and operations in defense of, and which advance, U.S. national interests in collaboration with domestic and international partners.
((B)) appoint an individual to a qualified position (after taking into consideration the availability of preference eligibles for appointment to the position); and
((C)) subject to the requirements of subsections (b) and (c), fix the compensation of an individual for service in a qualified position.
((2)) The authority of the Secretary under this subsection applies without regard to the provisions of any other law relating to the appointment, number, classification, or compensation of employees.
((b)) ** .—** The Secretary—
((1)) consistent with paragraph (2), shall fix the rates of basic pay for employees appointed under subsection (a)(1)(B)—
((A)) with a rate of pay provided for employees in comparable positions in the Federal Government; and
((B)) subject to the same limitations on maximum rates of pay established for such employees by statute or regulation; and
((2)) may prescribe a rate of basic pay for such an employee so appointed at a rate not to exceed a rate equal to 150 percent of the maximum rate of basic pay authorized for positions at level I of the Executive Schedule under .
((c)) ** .—**
((1)) The Secretary may provide employees in qualified positions compensation (in addition to basic pay), including benefits, incentives, and allowances, consistent with, and not in excess of the level authorized for, comparable positions authorized by title 5.
((2)) An employee in a qualified position whose rate of basic pay is fixed under subsection (b)(1) shall be eligible for an allowance under on the same basis and to the same extent as if the employee was an employee covered by such section, including eligibility conditions, allowance rates, and all other terms and conditions in law or regulation.
((d)) ** .—** The authority granted in subsection (a) shall become effective 30 days after the date on which the Secretary of Defense provides to the congressional defense committees a plan for implementation of such authority. The plan shall include the following:
((1)) An assessment of the current scope of the positions covered by the authority.
((2)) A plan for the use of the authority.
((3)) An assessment of the anticipated workforce needs of the United States Cyber Command across the future-years defense plan.
((4)) Other matters as appropriate.
((e)) ** .—** Nothing in subsection (a) may be construed to impair the continued effectiveness of a collective bargaining agreement with respect to an office, component, subcomponent, or equivalent of the Department that is a successor to an office, component, subcomponent, or equivalent of the Department covered by the agreement before the succession.
((f)) ** .—**
((1)) The Secretary shall provide training to covered personnel on hiring and pay matters relating to authorities under this section.
((2)) For purposes of this subsection, covered personnel are employees of the Department who—
((A)) carry out functions relating to—
((i)) the management of human resources and the civilian workforce of the Department; or
((ii)) the writing of guidance for the implementation of authorities regarding hiring and pay under this section; or
((B)) are employed in supervisory positions or have responsibilities relating to the hiring of individuals for positions in the Department and to whom the Secretary intends to delegate authority under this section.
((g)) ** .—** The Secretary, in coordination with the Director of the Office of Personnel Management, shall prescribe regulations for the administration of this section.
((h)) ** .—**
((1)) Not later than one year after the date of the enactment of this section and not less frequently than once each year thereafter until the date that is three years after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2026, the Director of the Office of Personnel Management, in coordination with the Secretary, shall submit to the appropriate committees of Congress a detailed report on the administration of this section during the most recent one-year period.
((2)) Each report submitted under paragraph (1) shall include, for the period covered by the report, the following:
((A)) A discussion of the process used in accepting applications, assessing candidates, ensuring adherence to veterans’ preference, and selecting applicants for vacancies to be filled by an individual for a qualified position.
((B)) A description of the following:
((i)) How the Secretary plans to fulfill the critical need of the Department to recruit and retain employees in qualified positions.
((ii)) The measures that will be used to measure progress.
((iii)) Any actions taken during the reporting period to fulfill such critical need.
((C)) A discussion of how the planning and actions taken under subparagraph (B) are integrated into the strategic workforce planning of the Department.
((D)) The metrics on actions occurring during the reporting period, including the following:
((i)) The number of employees in qualified positions hired, disaggregated by occupation, grade, and level or pay band.
((ii)) The placement of employees in qualified positions, disaggregated by military department, Defense Agency, or other component within the Department.
((iii)) The total number of veterans hired.
((iv)) The number of separations of employees in qualified positions, disaggregated by occupation and grade and level or pay band.
((v)) The number of retirements of employees in qualified positions, disaggregated by occupation, grade, and level or pay band.
((vi)) The number and amounts of recruitment, relocation, and retention incentives paid to employees in qualified positions, disaggregated by occupation, grade, and level or pay band.
((vii)) The total number of positions, the title, duties, and responsibilities of each position, and the location of each position, including the assigned department, agency, command, and cost of establishing, appointing, and paying the salary of such positions.
((viii)) A description of—
((I)) how the Department has used the pay authorities in subsection (b); and
((II)) the effect of such authorities on recruitment and retention in the Cyber Excepted Service.
((E)) A description of the training provided to employees described in subsection (f)(2) on the use of authorities under this section.
((i)) ** .—** The probationary period for all employees hired under the authority established in this section shall be three years.
((j)) ** .—**
((1)) An individual occupying a position on the date of the enactment of this section that is selected to be converted to a position in the excepted service under this section shall have the right to refuse such conversion.
((2)) After the date on which an individual who refuses a conversion under paragraph (1) stops serving in the position selected to be converted, the position may be converted to a position in the excepted service.
((k)) ** .—** The Secretary may—
((1)) consistent with , adopt such provisions of that title to provide for prevailing rate systems of basic pay; and
((2)) apply those provisions to qualified positions for employees in or under which the Department may employ individuals described by section 5342(a)(2)(A) of such title.
((l)) ** .—** In this section:
((1)) The term “appropriate committees of Congress” means—
((A)) the Committee on Armed Services, the Committee on Homeland Security and Governmental Affairs, and the Committee on Appropriations of the Senate; and
((B)) the Committee on Armed Services, the Committee on Oversight and Government Reform, and the Committee on Appropriations of the House of Representatives.
((2)) The term “collective bargaining agreement” has the meaning given that term in .
((3)) The term “excepted service” has the meaning given that term in .
((4)) The term “preference eligible” has the meaning given that term in .
((5)) The term “qualified position” means a position, designated by the Secretary for the purpose of this section, in which the individual occupying such position performs, manages, or supervises functions that execute the responsibilities of the United States Cyber Command relating to cyber operations.
((6)) The term “Senior Executive Service” has the meaning given that term in .
