; or (3) are employed in the Department under a contract or agreement with an external nonprofit organization and performing substantive duties comparable to those of individuals in internship or fellowship programs. (c) Uniformity For the purposes of paragraphs (2) and (3) of subsection (b), hours of work performed by an individual employed shall be considered equal to those performed by an individual employed in a qualifying internship or fellowship program by the Department. . (2) Clerical amendment The table of sections at the beginning of chapter 7 of such title, as amended by subsection (a), is further amended by inserting after the item relating to section 718 the following new item: 719. Student and recent graduate hiring into excepted service. . 102. Expansion of direct-hiring authority for Department of Veterans Affairs in case of shortage of highly qualified candidates Section 3304(a)(3)(B) of title 5, United States Code, is amended by inserting (or, with respect to the Department of Veterans Affairs, that there exists a severe shortage of highly qualified candidates) after severe shortage of candidates . 103. Authority for Secretary of Veterans Affairs on hiring of former Federal employees for high-demand positions (a) In general Subchapter I of chapter 7 of title 38, United States Code, is amended by inserting after section 711 the following new section: 712. Hiring authority for former Federal employees for high-demand positions (a) Authority (1) The Secretary may appoint a former Federal employee to a high-demand position within the Department (as determined by the Secretary) for which the former Federal employee is highly qualified without regard to the provisions of chapter 33 of title 5 governing appointments in the competitive service. (2) The Secretary may appoint a former Federal employee under paragraph (1) to a position at a higher grade or with more promotion potential than the position previously held by the former Federal employee without regard to section 335.103(c)(1)(vi) of title 5,