# OPM Caps Federal Employee Performance Ratings

The U.S. Office of Personnel Management (OPM) has implemented a policy capping the highest federal employee performance ratings under the Defense Performance Management and Appraisal Program (DPMAP) and related appraisal systems. Effective in the current FY 2026 appraisal cycle, agencies including the Department of Defense (DoD) and Department of Veterans Affairs (VA) must limit the combined share of top performance ratings (Levels 4 and 5) to 40%, with some agencies like the VA further restricting "greater than fully successful" ratings to 30%. Wage Grade employees are excluded from these caps. Agencies are developing detailed implementation guidance, and waivers may be requested by October 30, 2026, under strict criteria. This policy aims to standardize performance ratings but has raised concerns about fairness, morale, and impacts on workforce retention and reduction-in-force decisions, especially in mixed employee groups such as Title 5 and Title 38 personnel at the VA.

- **Why this matters:** Procurement professionals should anticipate potential impacts on contractor workforce evaluations and federal staffing levels due to changes in performance appraisal outcomes.
- Agencies must comply with the 40% cap on top ratings for career SES, Senior Professionals, and GS employees, affecting performance-based awards and pay adjustments.
- Organizations supporting federal agencies should prepare for evolving guidance and possible waiver requests by the October 30, 2026 deadline.
- The complexity of applying uniform caps across different employee categories (Title 5 vs. Title 38) at agencies like the VA may influence contract workforce management and compliance requirements.

**Jurisdictions:** federal
**Industries:** Professional Services, Defense & Military
**Topics:** Regulatory Compliance
**Published:** September 24, 2026

### Government Entities
- Office of Personnel Management (OPM)
- Department of Veterans Affairs (VA)
- Department of Defense (DoD)
- National Aeronautics and Space Administration (NASA)
- Senior Executive Service (SES)

### Key Quotes
> "If they are going to create arbitrary limits on ratings, then I as an employee am going to ask 'what's the bare minimum I need to do this year to get the 3 that you have been budgeted to give me?' instead of 'what are the bars I need to hit this year to earn a 4 or 5 which I already know you have been told not to give out?'"
> — Original poster

> Our agency just gave us a brief this week that this IS happening this rating period. Everyone is super hot that it’s being shoved down our throats a week before the rating period ends. We don’t even have implementation guidance yet past “its happening”
> — Anonymous commenter

> Hybrid Title 38 employees fall into a gray area, and applying a top-rating cap requires careful legal and policy consideration to avoid compliance issues.
> — Commenter 2

### Sources
- [Changes to DPMAP - DOW Employees](https://www.reddit.com/r/fednews/comments/1wp2qmr/changes_to_dpmap_dow_employees) - reddit-fednews
- [OPM Sets Cap on Top Two Ratings Levels of 40 Percent; Not a "Target"](https://www.reddit.com/r/FedEmployees/comments/1wohebm/opm_sets_cap_on_top_two_ratings_levels_of_40) - reddit-fedemployees
- [Title: Can VA apply a 40% top-rating cap to a team with Title 5, hybrid Title 38, and full Title 38 employees?](https://www.reddit.com/r/FedEmployees/comments/1wp8cyk/title_can_va_apply_a_40_toprating_cap_to_a_team) - reddit-fedemployees