5 CFR §337.205

1. (a)OPM will determine when there is a critical hiring need for particular occupations, grades (or equivalent) and/or geographic locations. OPM may decide independently that such a need exists or may make this decision in response to a written request from an agency.
2. (b)An agency when requesting direct-hire authority under this section, or OPM when deciding on its own, must:
   1. (1)Identify the position(s) that must be filled;
   2. (2)Describe the event or circumstance that has created the need to fill the position(s);
   3. (3)Specify the duration for which the critical need is expected to exist; and
   4. (4)Include supporting evidence that demonstrates why the use of other hiring authorities is impracticable or ineffective.
3. (c)Information Technology (IT) positions.
   1. (1)The head of a covered agency, as defined in paragraph (c)(2) of this section, may determine whether a critical hiring need exists for any position in the information technology management series, general schedule (GS)-2210 or equivalent. In making such a determination, a covered agency must adhere to and use the supporting evidence criteria prescribed in paragraphs (b)(1) through (4) of this section. In addition, a covered agency must maintain a file of the supporting evidence for documentation and reporting purposes. Upon determination of such a finding, an agency head may approve a direct hire authority for covered positions within the agency.
   2. (2)Covered agency. A covered agency is an entity listed in 31 U.S.C. 901(b) (excluding the Department of Defense), or an independent regulatory agency defined in 44 U.S.C. 3502(5).
   3. (3)Notification to the U.S. Office of Personnel Management (OPM). Once the head of a covered agency affirmatively determines the presence of a critical hiring need and the direct hire authority is approved by the agency head, he or she must notify OPM within 10 business days. Such notification must include a description of the supporting evidence relied upon in making the determination.
   4. (4)Using this authority. A covered agency must adhere to all provisions of subpart B of this part.
   5. (5)Length of appointments. A covered agency may use this authority to appoint individuals for a period of more than 1 year, but not more than 4 years, if the direct hire authority remains in effect.
      1. (i)A covered agency may extend an appointment under this authority for up to 4 additional years.
      2. (ii)No individual may serve more than 8 years on an appointment made under these provisions for information technology positions.
      3. (iii)No individual hired under these provisions may be transferred to positions that are not IT positions.