Federal Workforce Flexibility Act of 2003

Federal Workforce Flexibility Act of 2003 - Amends Federal employment law to: (1) strike a provision excepting as a Federal agency position any position in the Drug Enforcement Administration which is excluded from competitive service requirements; (2) authorize the Office of Personnel Management (OPM) to modify employee demonstration projects; (3) remove the requirement that OPM develop a plan for each project; and (4) terminate projects after ten (currently five) years, while requiring OPM to recommend, on or before the end of the project's first seven years, whether it should be made permanent.

Amends Federal employee recruitment and retention provisions to: (1) provide a four-year maximum on the years required of an employee provided a recruitment bonus; (2) authorize a recruitment or retention bonus of up to 50 percent of an employee's annual salary in the case of a critical agency need; (3) require OPM to establish a plan for paying such bonuses; and (4) rename the retention allowance the retention bonus and make such bonus contingent upon the completion of a period of service to be determined.

Empowers OPM (currently, only at the request of an agency) to fix the rates of critical pay.

Requires part-time service performed before April 7, 1986, to be credited as full-time service for annuity determination purposes.

Empowers OPM (currently the President) to provide special locality pay rates. Requires an agency head to notify OPM of any categories of employees that would not be covered under such rates. Requires a pay rate conversion for employees moving to a different locality. Considers the locality pay rate as basic pay for purposes of Federal benefits. Determines the rates of pay for employees entitled to pay retention.

Requires each agency head to evaluate its agency training with respect to success in accomplishing performance plans and strategic goals, appoint a training officer, and establish a comprehensive management succession program.

Authorizes annual leave for qualified non-Federal service of newly hired Federal employees.