This report presents findings from the third congressionally directed assessment of the Civilian Acquisition Workforce Personnel Demonstration Project (AcqDemo), which was originally implemented in 1999. The authors draw on existing and new data sources to assess AcqDemo against 14 legislatively prescribed criteria and offer recommendations to improve AcqDemo’s operations.

Fiscal Year 2025 Assessment of the Civilian Acquisition Workforce Personnel Demonstration Project

Laura Werber, Susan M. Gates, Angela Yun, Nolan Yager, Laura Bellows, Tiffany Keyes, Jonas Kempf, Elliott Brennan, Kristin J. Leuschner

ResearchPublished Apr 21, 2026

The U.S. Department of Defense (DoD) implemented the Civilian Acquisition Workforce Personnel Demonstration Project (AcqDemo) in 1999 to help improve the management of DoD civilian employees who contribute to DoD’s acquisition mission—both those who are formally members of the defense acquisition workforce and those who directly support them. Congress directed independent assessments of AcqDemo in 2012, 2016, and 2025, the third of which is the subject of this report.

The current study used mixed methods and leveraged existing and new data sources to address 14 legislatively prescribed criteria, covering such issues as what flexibilities are available within AcqDemo, who is participating in AcqDemo, what supports are in place for AcqDemo operations, how well AcqDemo has performed in terms of both workforce-focused and organizational outcomes, barriers to AcqDemo operations, and how AcqDemo could be improved.

Key Findings

  • Available evidence suggests that AcqDemo is faring well in terms of most criteria specified in the National Defense Authorization Act.
  • AcqDemo flexibilities include simplified position classifications, broadbands, direct hire authority, and pay-setting flexibility.
  • AcqDemo differs from the General Schedule (GS) system in its emphasis on an employee’s contribution to the organization’s mission, a pay pool process for compensation, and multiple feedback milestones.
  • AcqDemo employees were more likely than comparable GS employees to have graduate degrees, be in supervisory positions, and be in the acquisition workforce and less likely to be in junior-level positions or bargaining units.
  • Many supports are in place for AcqDemo operations, including policy resources and training, employee input mechanisms, and strategies to promote fairness and transparency in performance appraisal.
  • Employee outcomes data suggest that individuals whose contribution scores exceeded expectations had higher retention and higher salary growth, whereas retention was lower for those whose contribution scores fell short of expectations.
  • AcqDemo helps organizations meet mission needs by enabling faster hiring, more-targeted recruiting, and more-competitive pay; allowing for greater mobility and internal talent development; and driving motivation and accountability in performance appraisal.
  • Potential barriers to operations include constrained ability to reward high performers, lack of confidence stemming from perceived fairness and transparency issues, lack of understanding of key performance appraisal concepts, administrative burdens, and cultural resistance.
  • If AcqDemo were to end, DoD could incur a salary cost of about $84 million, with estimated administrative costs ranging from $49 million to as high as $231 million.

Recommendations

Targeted support for participating organizations’ common needs

  • Continue technological improvements to AcqDemo software and other Contribution-Based Compensation and Appraisal System (CCAS) tools.
  • Advocate for human resources support organizations to train AcqDemo specialists.
  • Develop and offer targeted training, including pay pool manager training and training on the use of artificial intelligence tools for preparing performance appraisals.
  • Develop messaging to support employee understanding of key AcqDemo concepts.

Efforts to promote fairness, transparency, and employee involvement

  • Actively monitor CCAS grievances at the pay pool and organizational levels.
  • Clarify how payouts are calculated, including computations in the Compensation Management Spreadsheet.
  • Develop pay pool results dissemination templates for use by participating organizations to promote more-consistent sharing of pay pool results.
  • Enhance efforts to learn from employee surveys.

Efforts to identify and disseminate best practices for pay pool management

  • Expand ongoing business rules analysis to identify pay pool–level best practices.
  • Share CCAS grievance data and pay pool outcomes with participating organization leaders to stimulate reflection and dialogue.
  • Promote AcqDemo-wide communities of practice, which could facilitate the exchange of lessons learned and promising practices.

AcqDemo program management strategic thinking about key questions

  • What are fundamental AcqDemo tenets that should not be changed by participating organizations?
  • What opportunities would materialize if AcqDemo were granted permanence?
  • How would they support a major, rapid expansion of the project?

Topics

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Citation

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Werber, Laura, Susan M. Gates, Angela Yun, Nolan Yager, Laura Bellows, Tiffany Keyes, Jonas Kempf, Elliott Brennan, and Kristin J. Leuschner, Fiscal Year 2025 Assessment of the Civilian Acquisition Workforce Personnel Demonstration Project. Santa Monica, CA: RAND Corporation, 2026. https://www.rand.org/pubs/research_reports/RRA3863-1.html.
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This research was sponsored by the Under Secretary of Defense for Acquisition and Sustainment. This work was conducted within the Personnel, Readiness, and Health Program of the RAND National Security Research Division.

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