; and (ii) based on such determination, approve or deny the request. (5) Rates of pay (A) In general Except as provided in subparagraph (B), during the period of obligated service described in paragraph (1), each STEM Corps participant shall be paid as follows: (i) First three years of service For the first through third years of obligated service, each participant shall be paid at a rate of not less than the rate of basic pay for GS–6 of the General Schedule. (ii) Fourth year of service For the fourth year of obligated service, each participant shall be paid at a rate equal to the rate of basic pay for GS–10 of the General Schedule. (B) Exception Subparagraph (A) shall not apply to a STEM Corps participant who fulfills the period of obligated service described in paragraph (1) through service as a member of the armed forces. (6) Inclusion of defense laboratories Employment in a defense laboratory shall be treated as employment within the Department of Defense for purposes of this chapter without regard to whether the laboratory is operated by a contractor. (7) Waiver of veterans’ preference The hiring authority of the Department of Defense organization concerned, may appoint, without regard to the provisions of subchapter I of chapter 33 of title 5, United States Code, other than sections 3303 and 3328 of such title, qualified participants to positions in the competitive service at the Department of Defense. (d) Employment with defense industry sponsor (1) In general At the discretion of the Administrative Agency, a STEM Corps participant may fulfill the fourth year of the service obligation under subsection (c)(1) through employment with a defense industry sponsor. (2) Rate of pay The Administrative Agency shall ensure that a STEM Corps participant employed by a defense industry sponsor under paragraph (1) receives pay at a rate that is not less than the equivalent of the rate of basic pay for GS–10 of the General Schedule. (e) Transition assistance The Administrative Agency shall provide advice and technical