Couple points. First, permanent IP = terminal rank. It’s in the NAVADMIN, so they don’t benefit from the #1 EP.
Second, this isn’t a discussion on the merits/shortcomings of the FITREP system. We’re all familiar. This is a discussion about a reporting senior’s decision making process.
Third, people have to divorce themselves from the idea that a FITREP is a report card, like in an academic sense. I’ve heard a lot of talk about people “getting what they deserve,” etc. That’s not what a FITREP is for. Never has been. In this case, the #1 EP is a ticket to compete for the next milestone. Overall performance is certainly a big part of that, but it doesn’t trump other factors.
We’ve been round and round on this here, and I’ve done my very best to explain and persuade those that are frustrated. People are frustrated because they have a fundamental misunderstanding of how the system is supposed to work.
Until those people snap out of it and change their thinking, they’re going to continue to be frustrated and I don’t have much sympathy for them. Life, and the Navy will go on.