msymonds-
What you describe sounds like your internal HR review of possitions according to classification tables. The guiding materials about a classification appeal are here:
http://www.opm.gov/classapp/index.asp
Basically, it works like this:
In order to retain your GS-7, you would be wise to study the tables for classification for your job series. Classification in general is here:
http://www.opm.gov/fedclass/index.asp
What they are doing, internally as HR, is comparing your job duties and responsibilities, to the GS standards issued by OPM. If you match the duties of a GS-7 level, there should be no problem retaining the GS-7
If your duties only meet the standards for a 5 or a 6, they could downgrade your position. The only appeal you would have then is through the OPM appeals process.
Prior to the Bush Administration, appeals process claims went about 50/50 in favor of the emloyee. It was rare to non-existent that someone who was a 7, for example, and thought they should be a 9, would be REDUCED below a 7 as a result of an appeal.
Under the Bush years, that all changed. Many people who were a 7, and thought they should be a 9, appealed, and when OPM was done with them, OPM reduced them to a 6 or a 5.
I have not heard how the present OPM has been on classification appeals. There isn't as much publicity around them as there used to be.
Check out the standards for your job series, and see where you think you fit in the big picture. Make special note of the duties at a 7 level. When HR comes around to ask you to list the duties you do, be sure to include many that are off the 7-level charts, if you in fact do those. The classifier will record what you tell them you do- and you want to make sure you don't only tell them about the 5-6 level duties, but also about the -7 level duties you accomplish in the course of your day.
What job series is it, if I can ask?