It is possible, but probably not practical from their point of view. Or perhaps they are just clueless.
I assume that their domain-wide policy has been applied in the Default Domain Policy GPO, or another GPO linked to the domain. The problem, at least from their point of view, is that this will override any local policies which you or they define on your machine's local policies.
Group Policy objects are processed in the following order:
- Local policies
- Domain GPOs linked to the AD site which the machine is in
- Domain GPOs linked to the domain which the machine is a member of
- Domain GPOs linked to OU the machine is in
Each successive policy setting overwrites the previously applied setting/s which conflict, i.e. local policies on password length, etc. will always be irrelevant because the domain policy is applied after local policy and hence overwrites it.
The only way you can have what you want is if they were willing to put your machine into its own OU and then create a new GPO containing the password policies you want. This GPO would be linked to the OU containing your machine.
See this TechNet article for more detail.