Department of Defense
INSTRUCTION
NUMBER 1400.25, Volume 1404
June 26, 2014
Incorporating Change 2, Effective July 29, 2025
USD(P&R)
SUBJECT: DoD Civilian Personnel Management System: Nonappropriated Fund Performance
Management Program
References: See Enclosure 1
1. PURPOSE
a. Instruction. This instruction is composed of several volumes, each containing its own
purpose. The purpose of the overall instruction, in accordance with the authority in DoD
Directive (DoDD) 5124.02 (Reference (a)), is to establish and implement policy, establish
procedures, provide guidelines and model programs, delegate authority, and assign
responsibilities regarding civilian personnel management within the DoD.
b. Volume. In accordance with DoDD 1400.25 (Reference (b)), this volume:
(1) Reissues Volume 1404 of this instruction (Reference (c)) to establish policy, assign
responsibilities, and prescribe procedures for performance management programs covering DoD
nonappropriated fund (NAF) employees.
(2) Establishes a senior executive performance appraisal system for DoD NAF
employees at the NF-6 payband level pursuant to section 1587a of Title 10, United States Code
(U.S.C.) (Reference (d)), to regulate the amount of total compensation for senior NAF executives
to achieve pay parity between DoD senior NAF executive and DoD senior appropriated fund
(APF) executive performance.
2. APPLICABILITY. This volume:
a. Applies to OSD, the Military Departments, the Office of the Chairman of the Joint Chiefs
of Staff and the Joint Staff, the Combatant Commands, the Office of Inspector General of the
Department of Defense, the Defense Agencies, the DoD Field Activities, and all other
organizational entities within the DoD (referred to collectively in this volume of this instruction
as the “DoD Components”).
