2026-19805NoticeWallet

Pentagon Labs Add Supercharged Business-Tech Boss Roles

Published Date: 9/28/2026

Notice

Summary

Starting September 28, 2026, certain Defense science labs can create new top-level jobs called Senior Business Technical Managers (SBTMs). These leaders will help run business and tech operations, advising top commanders and executives. This change affects employees at authorized labs and aims to boost how these labs manage their work, with potential impacts on roles and pay above the usual government levels.

Analyzed Economic Effects

5 provisions identified: 3 benefits, 1 costs, 1 mixed.

SBTM pay band and caps

SBTM minimum basic pay is set at 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 salary without locality pay may not exceed Executive Level IV (EX-IV). Total pay (including locality) for SBTM employees is also subject to aggregate pay limits under 5 U.S.C. 5307 and 5 CFR rules; the FRN gives an example midpoint cap (for 2024, $213,000).

New senior SBTM jobs at STRLs

Starting no earlier than September 28, 2026, authorized Science and Technology Reinvention Laboratories (STRLs) may create Senior Business Technical Manager (SBTM) positions. SBTMs are senior business and technical leaders defined as positions above the General Schedule (GS)-15 level who advise STRL commanding officers or Senior Executive Service (SES) members and run business, admin, and technology functions.

Pay incentives and retention rules

STRL directors may grant a supervisory pay differential up to 5 percent of basic pay (excluding locality pay) for SBTM personnel; it is reviewed annually, can be reduced or terminated at the director's discretion, and its termination is not appealable. STRLs may provide pay retention under STRL-established criteria if an SBTM moves to a lower pay band due to a reduction in force or other management action, but grade retention is not authorized.

Flexible hiring and conversion rules

SBTM positions may be filled via temporary, flexible term, or permanent appointments. Flexible-term appointments may be made for up to five years and extended in additional five-year increments; flexible temporary promotions may be used for up to five years. Conversion to permanent SBTM status requires the employee be told in writing at initial appointment about conversion possibility, have at least one year of continuous service, and have at least a fully successful performance rating. Flexible-term appointees receive benefits comparable to status employees and may be designated 'status applicants.'

Limit: max 1% SBTM positions per lab

Each STRL may authorize SBTM positions up to 1 percent of the civilian and military positions at that laboratory (counting positions filled as of the close of the preceding fiscal year). If 1 percent is not a whole number, the STRL rounds down, but each STRL is still authorized at least one SBTM position regardless of size. If an STRL's workforce shrinks, existing SBTMs will not have their SBTM classification changed or pay reduced.

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Key Dates

Published Date
9/28/2026

Department and Agencies

Department
Independent Agency
Agency
Defense Department
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