116 STAT. 2290 PUBLIC LAW 107-296—NOV. 25, 2002 (1) in subsection (a), by striking paragraph (3) and inserting the following: "(3) provide a description of how the performance goals and objectives are to be achieved, including the operation processes, training, skills and technology, and the human, capital, information, and other resources and strategies required to meet those performance goals and objectives."; (2) by redesignating subsection (f) as subsection (g); and (3) by inserting after subsection (e) the following: "(f) With respect to each agency with a Chief Human Capital Officer, the Chief Human Capital Officer shall prepare that portion of the annual performance plan described under subsection (a)(3).". (b) PROGRAM PERFORMANCE REPORTS.—Section 1116(d) of title 31, United States Code, is amended— (1) in paragraph (4), by striking "and" after the semicolon; (2) by redesignating paragraph (5) as paragraph (6); and (3) by inserting after paragraph (4) the following: "(5) include a review of the performance goals and evaluation of the performance plan relative to the agency's strategic human capital management; and". SEC. 1312. REFORM OF THE COMPETITIVE SERVICE HIRING PROCESS. (a) IN GENERAL. —Chapter 33 of title 5, United States Code, is amended— (1) in section 3304(a>— (A) in paragraph (1), by striking "and" after the semicolon; (B) in paragraph (2), by striking the period and inserting "; and"; and (C) by adding at the end of the following: "(3) authority for agencies to appoint, without regard to the provision of sections 3309 through 3318, candidates directly to positions for which— "(A) public notice has been given; and "(B) the Office of Personnel Management has determined that there exists a severe shortage of candidates or there is a critical hiring need. Regulations. The Office shall prescribe, by regulation, criteria for identifying such positions and may delegate authority to make determinations under such criteria."; and (2) by inserting after section 3318 the following: "§ 3319. Alternative ranking and selection procedures "(a) The Office, in exercising its authority under section 3304, or an agency to which the Office has delegated examining authority under section 1104(a)(2), may establish category rating systems for evaluating applicants for positions in the competitive service, under 2 or more quality categories based on merit consistent with regulations prescribed by the Office of Personnel Management, rather than assigned individual numerical ratings. "(b) Within each quality category established under subsection (a), preference-eligibles shall be listed ahead of individuals who are not preference eligibles. For other than scientific and professional positions at GS-9 of the General Schedule (equivalent or higher), qualified preference-eligibles who have a compensable service-connected disability of 10 percent or more shall be listed in the highest quality category.