; and (2) the Secretary may pay a retention bonus as specified in subsection (e)(2) of section 5754 of such title 5 to a covered employee and may pay the bonus as a single lump-sum payment at the beginning of the full period of service required by an agreement under subsection (d) of such section. (d) Merit awards Not later than two years after the date of the enactment of this Act, the Secretary may grant a cash award under section 4502(b) of title 5, United States Code, to a covered employee without regard to any requirement for certification or approval under that section. (e) Incentives for critical skills (1) Not later than two years after the date of the enactment of this Act, the Secretary may provide a critical skill incentive to a covered employee if the Secretary determines— (A) the employee possesses a high-demand skill or skill that is at a shortage; (B) such skill is directly related to the duties and responsibilities of the employee’s position; and (C) employment of an individual with such skill in such position serves a critical mission-related need of the Department. (2) An incentive provided to an employee under paragraph (1) may not to exceed 25 percent of the basic pay of the employee. (3) Provision of an incentive under paragraph (1) shall be contingent on the employee entering into a written agreement to complete a period of employment with the Department. (4) An incentive provided under paragraph (1) shall not be considered basic pay for any purpose. (5) The Secretary may prescribe conditions, including with respect to eligibility, and limitations on provision of incentive under paragraph (1). (f) Covered employee defined In this section, the term covered employee means— (1) an employee of the Division or the Administration