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Nonappropriated Fund Performance Management

Title 10 United States Code, section 1587a, authorizes the Secretary of Defense to provide for parity between the total compensation provided for Nonappropriated Fund (NAF) senior executives and DOD senior executive service (SES) members. The NAF Senior Executive Performance Appraisal System as outlined in DODI 1400.25, Volume 1404, Nonappropriated Fund (NAF) Performance Management Program, is comparable, but not identical, to the SES performance system. NAF senior executives may receive pay up to Executive Level II upon certification of their performance appraisal package.

DCPAS provides a technical review of the DOD NAF senior executive performance appraisal packages prior to their annual submission to the Deputy Assistant Secretary of Defense for Civilian Personnel Policy. DCPAS also provides a bi-annual technical review of the DOD NAF senior executive appraisal system since the Under Secretary of Defense for Personnel and Readiness re-certifies and validates the NAF senior executive appraisal system every two years as current policy provides. Certification of the NAF performance system is contingent upon the Office of Personnel Management (OPM) certification of DOD’s SES system. The DOD-wide NAF performance system certification aligns with the DOD SES process for OPM performance system certification.