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Your job may or may not be extended to 4 years based on what kind of money the department has at the time. No guarantees of extension, and I wouldn't count on it. I'm not sure about the unemployment, but my guess is yes. You have to be in the system for two years before you qualify for other positions that are open to "current employees only". Temp jobs don't count. Not sure about "Term" jobs, like the one in which you are considering.
Your application will first go through HR. If you make it to the final cut, you will be interviewed by potential supervisors. And, yes, they hire those they feel are the most qualified of those who meet the basic qualifications. It's just like most other jobs. The only interview a few people.
Good luck! I cannot begin to tell you how many federal positions for which I have applied. It's really difficult to get into the system. And, even if you get an interview and are deemed the top candidate, there's still no guarantee you'll be offered the job. On numerous occasions, they wound up not hiring anyone for the jobs to which I applied. In fact, I'm off to apply FOR THE THIRD TIME to the same position. This is the third time they are advertising the position, and never filled it the previous two times. Not sure what is the issue, but I doubt it's because they couldn't find a suitable candidate the previous two times.
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