38 U.S.C. § 7404A

1. (a)The Secretary may establish an awards program for personnel listed in section 7421(b) of this title consistent with chapter 45 of title 5, to the extent practicable.
2. (b)Notwithstanding section 7425 of this title or any other provision of law, the Secretary may establish a performance awards program consistent with section 5384 of title 5 for—
   1. (1)personnel appointed under section 7401(1) of this title for a position that the Secretary has determined is of equivalent rank to a Senior Executive Service position (as such term is defined in section 3132(a) of title 5) and is subject to an agency performance management system; and
   2. (2)personnel appointed under section 7306 or 7401(4) of this title.
3. (c)Awards under this section may be paid based on criteria established by the Secretary and shall not be considered in calculating the limitation under section 7431(e)(4) of this title.
4. (d)Awards under this section shall not be considered basic pay for any purpose.
5. (e)The Secretary may prescribe regulations for the administration of this section.