Defense Labs Birth Super Managers: SBTM Edition
Published Date: 1/9/2026
Notice
Summary
The Department of Defense is creating new senior business and technical manager jobs called Senior Business Technical Managers (SBTMs) at special Science and Technology labs. These leaders will help run business and tech operations and advise top commanders. The changes won’t start until after a 30-day comment period ending February 9, 2026, so affected employees and the public can share their thoughts first.
Analyzed Economic Effects
7 provisions identified: 4 benefits, 0 costs, 3 mixed.
New senior SBTM job category
The Department of Defense authorizes a new Senior Business Technical Manager (SBTM) job category for Science and Technology Reinvention Laboratories (STRLs). SBTMs are defined as senior business and technical positions comparable to classifications above the GS-15 level and may only be established at authorized STRLs with personnel demonstration projects (the notice lists 24 current STRLs).
SBTM pay band and salary caps
SBTM basic pay minimum must be at least 115 percent of the minimum GS-15 rate. Maximum SBTM basic pay with locality pay is limited to Executive Level III (EX-III), and maximum SBTM salary without locality pay may not exceed EX-IV. The FRN references aggregate pay limits (e.g., midpoint example of $213,000 for calendar year 2024).
Supervisory pay differential up to 5%
STRL directors may grant a supervisory pay differential for SBTM personnel of up to 5 percent of basic pay (excluding locality pay). The differential is paid each pay period, reviewed annually, is not part of basic pay for any purpose, may be reduced or terminated at the director's discretion, and its termination is not subject to appeal.
Cap on SBTM positions (1% rule)
Each STRL may authorize SBTM positions up to one percent of the STRL's civilian and military workforce (as of the close of the preceding fiscal year), rounding down to a whole number, but each STRL is authorized at least one SBTM position. An STRL may temporarily exceed the cap until attrition occurs, and an individual SBTM's classification or pay will not be reduced because the STRL workforce shrinks.
Flexible-term and temporary appointment authorities
SBTM positions may be filled via flexible-length renewable term appointments (up to five years, extendable in five-year increments) or flexible temporary promotions (up to five years with possible extensions). Candidates on flexible term appointments may be eligible for conversion to permanent SBTM status if notified at hiring, after one year of continuous service, and having at least a fully successful performance rating; flexible-term appointees receive benefits comparable to permanent employees.
Pay retention allowed; grade retention not authorized
STRLs may provide pay retention to SBTM members under STRL-established criteria if they are moved to a lower pay band due to reduction in force, work realignment, or other management action; however, grade retention is not authorized for SBTM positions.
Expanded staffing authorities to fill SBTMs
STRLs may staff SBTM positions using a range of authorities, including internal or external competitive procedures, direct hire authority, accretion-of-duties promotions, noncompetitive temporary procedures (details/temporary promotions), and panels or assessment processes; STRL directors have discretion to choose the method and must describe methods in internal operating procedures.
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