PART 337—EXAMINING SYSTEM Authority: 5 U.S.C. 1104(a), 1302, 2302, 3301, 3302, 3304, 3319, 5364; E.O. 10577, 3 CFR 1954-1958 Comp., p. 218; 33 FR 12423, Sept. 4, 1968; and 45 FR 18365, Mar. 21, 1980; 116 Stat. 2135, 2290; 117 Stat. 1392, 1665; and E.O. 13833. Subpart A—General Provisions § 337.101 Rating applicants. (a) OPM shall prescribe the relative weights to be given subjects in an examination, and shall assign numerical ratings on a scale of 100. Except as otherwise provided in this chapter, each applicant who meets the minimum requirements for entrance to an examination and is rated 70 or more in the examination is eligible for appointment. (b) OPM shall add to the earned numerical ratings of applicants who make a passing grade: (1) Five points for applicants who are preference eligibles under section 2108(3)(A) and (B) of title 5, United States Code; and (2) Ten points for applicants who are preference eligibles under section 2108(3)(C)-(G) of that title. (c) When experience is a factor in determining eligibility, OPM shall credit a preference eligible with: (1) Time spent in the military service (i) as an extension of time spent in the position in which he was employed immediately before his entrance into the military service, or (ii) on the basis of actual duties performed in the military service, or (iii) as a combination of both methods. OPM shall credit time spent in the military service according to the method that will be of most benefit to the preference eligible. (2) All valuable experience, including experience gained in religious, civic, welfare, service, and organizational activities, regardless of whether pay was received therefor. [33 FR 12423, Sept. 4, 1968, as amended at 72 FR 12954, Mar. 20, 2007] § 337.102 Evaluating qualifications for employees who are in a retained grade. (a) Employees who are in a retained grade must have the experience they gain subsequent to the downgrading action that placed them in a retained grade considered in the following manner. For placements during the period the employee is in a retained grade, agencies must consider the experience subsequent to the downgrading action to be either: (1) At the level of the retained grade and in the series of the position which he or she occupied at the time of the downgrading; or (2) At the grade and in the series of the position to which the employee is downgraded. (b) Agencies must determine which experience to consider on the basis of which will most likely result in placement. For placements or promotions after the retained grade period, the experience is considered only at the grade level and in the series of the position to which the employee was downgraded. [45 FR 18365, Mar. 21, 1980] Subpart B—Direct-Hire Authority Source: 69 FR 33275, June 15, 2004, unless otherwise noted. § 337.201 Coverage and purpose. OPM will permit an agency with delegated examining authority under 5 U.S.C. 1104(a)(2) to use direct-hire authority under 5 U.S.C. 3304(a)(3) for a permanent or nonpermanent position or group of positions in the competitive service at GS-15 (or equivalent) and below, if OPM determines that there is either a severe shortage of candidates or a critical hiring need for such positions. It is not required that this direct-hire authority be exercised by a delegated examining unit. Requests for direct-hire authority must be submitted by the agency's Chief Human Capital Officer (or equivalent) at the agency headquarters level. OPM will determine the length of the direct-hire authority based on the justification. § 337.202 Definitions. In this subpart: (a) A direct-hire authority (b) A severe shortage of candidates (c) A critical hiring need § 337.203 Public notice requirements. Agencies must comply with public notice requirements as prescribed in 5 U.S.C. 3327 and 3330, and subpart A of part 330 of this chapter with respect to any position that an agency seeks to fill using direct-hire authority. [69 FR 33275, June 15, 2004, as amended at 75 FR 67605, Nov. 3, 2010] § 337.204 Severe shortage of candidates. (a) OPM will determine when a severe shortage of candidates exists for particular occupations, grades (or equivalent), and/or geographic locations. OPM may decide independently that such a shortage exists, or may make this decision in response to a written request from an agency. (b) An agency when requesting direct-hire authority under this section, or OPM when deciding independently, must identify the position or positions that are difficult to fill and must provide supporting evidence that demonstrates the existence of a severe shortage of candidates with respect to the position(s). The evidence should include, as applicable, information about: (1) The results of workforce planning and analysis; (2) Employment trends including the local or national labor market; (3) The existence of nationwide or geographic skills shortages; (4) Agency efforts, including recruitment initiatives, use of other appointing authorities (e.g., schedule A, schedule B) and flexibilities, training and development programs tailored to the position(s), and an explanation of why these recruitment and training efforts have not been sufficient; (5) The availability and quality of candidates; (6) The desirability of the geographic location of the position(s); (7) The desirability of the duties and/or work environment associated with the position(s); and (8) Other pertinent information such as selective placement factors or other special requirements of the position, as well as agency use of hiring flexibilities such as recruitment or retention allowances or special salary rates. (c) A department or agency head (other than the Secretary of Defense) may determine, pursuant to section 1413(a) of Public Law 108-136, as amended by section 853 of Public Law 110-181, that a shortage of highly qualified candidates exists for certain Federal acquisition positions (covered under section 433(g)(1)(A) of title 41, United States Code). To make such a determination, the deciding agency official must use the supporting evidence prescribed in 5 CFR 337.204(b)(1)-(8) and must maintain a file of the supporting evidence for documentation and reporting purposes. (d) Information Technology (IT) positions. (2) Covered agency. (3) Notification to the U.S. Office of Personnel Management (OPM). (4) Using this authority. (5) Length of appointments. (i) A covered agency may extend any appointment under this authority for up to 4 additional years, if the direct hire authority remains in effect. (ii) No individual may serve more than 8 years on an appointment made under these provisions for information technology positions. (iii) No individual hired under these provisions may be transferred to positions that are not IT positions. [69 FR 33275, June 15, 2004, as amended at 70 FR 44847, Aug. 4, 2005; 74 FR 61263, Nov. 24, 2009; 84 FR 12875, Apr. 3, 2019] § 337.205 Critical hiring needs. (a) OPM will determine when there is a critical hiring need for particular occupations, grades (or equivalent) and/or geographic locations. OPM may decide independently that such a need exists or may make this decision in response to a written request from an agency. (b) An agency when requesting direct-hire authority under this section, or OPM when deciding on its own, must: (1) Identify the position(s) that must be filled; (2) Describe the event or circumstance that has created the need to fill the position(s); (3) Specify the duration for which the critical need is expected to exist; and (4) Include supporting evidence that demonstrates why the use of other hiring authorities is impracticable or ineffective. (c) Information Technology (IT) positions. (2) Covered agency. (3) Notification to the U.S. Office of Personnel Management (OPM). (4) Using this authority. (5) Length of appointments. (i) A covered agency may extend an appointment under this authority for up to 4 additional years. (ii) No individual may serve more than 8 years on an appointment made under these provisions for information technology positions. (iii) No individual hired under these provisions may be transferred to positions that are not IT positions. [69 FR 33275, June 15, 2004, as amended at 84 FR 12875, Apr. 3, 2019] § 337.206 Terminations, modifications, extensions, and reporting. (a) Termination and modification. (b) Extension. (c) Reporting requirement. (d) No new appointments may be made under the provisions of section 1413 of Public Law 108-136 after September 30, 2012. [69 FR 33275, June 15, 2004, as amended at 70 FR 44847, Aug. 4, 2005; 74 FR 61263, Nov. 24, 2009] Subpart C—Category Rating Source: 69 FR 33276, June 15, 2004, unless otherwise noted. § 337.301 Coverage and purpose. This subpart implements the category rating and selection procedures at 5 U.S.C. 3319. This law authorizes agencies with delegated examining authority under 5 U.S.C. 1104(a)(2) to develop a category rating method as an alternative process to assess applicants for jobs filled through competitive examining. § 337.302 Definitions. In this subpart: (a) Category rating (b) Quality categories § 337.303 Agency responsibilities. To use a category rating procedure, agencies must: (a) Establish a system for evaluating applicants that provides for two or more quality categories; (b) Define each quality category through job analysis conducted in accordance with part 300 of this chapter. Each category must have a clear definition that distinguishes it from other categories; (c) Describe each quality category in the job announcement and apply the provisions of part 330, subparts B, F, and G of this chapter; (d) Place applicants into categories based upon their job-related competencies or their knowledge, skills, and abilities; and (e) Establish documentation and record keeping procedures for reconstruction purposes. [69 FR 33276, June 15, 2004, as amended at 91 FR 48236, July 31, 2026] § 337.304 Veterans' preference. In this subpart: (a) Veterans' preference must be applied as prescribed in 5 U.S.C. 3319(b) and (c)(7); (b) Veterans' preference points as prescribed in § 337.101 are not applied in category rating; and (c) Sections 3319(b) and 3319(c)(7) of title 5 U.S.C. constitute veterans' preference requirements for purposes of 5 U.S.C. 2302(b)(11)(A) and (B). [90 FR 43146, Sept. 8, 2025]