Act coverage for the countries listed below. The waivers are applicable to AID-financed contracts performed in the listed countries, and are subject to two conditions: (1) Employees hired in the United States by the contractor, and citizens or residents of the United States are to be provided Defense Base Act insurance coverage: (2) Waived employees (i.e., employees who are neither U.S. citizens nor U.S. resident aliens, and who were hired outside the United States) will be provided worker's compensation benefits as required by the laws of the country in which they are working or the laws of their native country, whichever offers greater benefits. Countries for which waivers are in effect are: 1. Afghanistan 2. Antigua 3. Bahamas 4. Bangladesh 5. Barbados 6. Belize 7. Benin 8. Bolivia 9. Botswana 10. Brazil 11. Burkina Faso 12. Burundi 15. Chad 16. Chile 22. Ecuador 23. Egypt 24. El Salvador 25. Equitorial Guinea 26. Ethiopia 27. Fiji 28. Gambia 29. Ghana 30. Grenada 31. Guatemala 32. Guinea 33. Guinea-Bissau 34. Guyana 35. Haiti 36. Honduras 37. India 38. Indonesia 39. Israel 40. Italy 41. Ivory Coast 42. Jamaica 43. Jordan 44. Kenya 45. Korea 46. Lebanon 52. Mauritania 53. Mauritius 54. Mexico 55. Morocco 56. Mozambique 58. New Caledonia 62. Oman 68. Philippines 69. Portugal 70. Rwanda 71. St. Christopher & Nevis 72. St. Lucia 75. Sechelles 78. Somalia (b) To assist contractors in securing insurance at minimal rates for the workmen's compensation insurance required under the DBA, and to facilitate meeting insurance requirements for such coverage, AID, after open and competitive negotiation, has entered into a contract with an insurance carrier to provide such coverage at a specified rate. The terms of this contract require the insurance carrier to provide coverage, and the contractor to make payments to and handle its claims with that insurance carrier. Contracting officers are responsible for explaining and advising contractors of the details of securing such insurance. [49 FR 13249, Apr. 3, 1984, as amended at 52 FR 4144, Feb. 10, 1987. Redesignated at 53 FR 50630, Dec. 16, 1988, and amended at 54 FR 16122, Apr. 21, 1989] 728.307-2 Liability. (a)-(b) [Reserved] (c) Automobile liability. In order to ensure that private automobiles used by contractor employees stationed overseas under an A.I.D. contract are properly insured, A.I.D. has established minimum required coverages as a supplement to the FAR clause at 52.228-7. This supplemental coverage is specified in AIDAR 752.228-7, and is to be used in all A.I.D.-direct contracts involving performance overseas. [53 FR 50630, Dec. 16, 1988] 728.309 Contract clause for worker's compensation insurance. (a) Because of the volume of projects performed overseas resulting in contracts which require worker's compensation insurance, A.I.D. has contracted with an insurance carrier to provide the required insurance for all A.I.D. contractors. It is therefore necessary to supplement the FAR clause at 52.228-3 with the additional coverage specified in AIDAR 752.2283. The coverage specified in AIDAR 752.228-3 shall be used in addition to the coverage specified in FAR 52.228-3 in all A.I.D.-direct contracts involving performance overseas. [53 FR 50630, Dec. 16, 1988] 728.313 Contract clauses for insurance of transportation or transportation-related services. (a) A.I.D. is required by law to include language in all its direct contracts and subcontracts ensuring that all U.S. marine insurance companies have a fair opportunity to bid for marine insurance when such insurance is necessary or appropriate under the contract. A.I.D. has therefore established a supplementary preface to the clause at FAR 52.228-9. This supplementary preface is set forth in AIDAR 752.228-9, and is required for use in any A.I.D.-direct contract where marine insurance is necessary or appropriate. [53 FR 50630, Dec. 16, 1988] AUTHORITY: Sec. 621, Pub. L. 87-195, 75 Stat. 445, (22 U.S.C. 2381) as amended; E.O. 12163, Sept. 29, 1979, 44 FR 56673; 3 CFR 1979 Comp., p. 435. SOURCE: 49 FR 13250, Apr. 3, 1984, unless otherwise noted. Subpart 731.1-Applicability 731.109 Advance agreements. Advance agreements on selected costs may be negotiated with AID contractors by the Overhead and Special Cost and Contract Close-Out Branch, Office of Procurement. Such advance understandings will be applicable to all AID contracts with that contractor. [49 FR 13250, Apr. 3, 1984, as amended at 50 FR 50302, Dec. 10, 1985; 51 FR 20651, June 6, 1986] (a) General. (1) Specific limitations on compensation for personal services, including fringe benefits, may be spelled out or incorporated by reference in AID contracts. Where the provisions of the contract are inconsistent with this section, such provisions will govern. (2) Direct compensation of personnel is reimbursable in accordance with FAR 31.205-6, AIDAR 731.205-6, and the contractor's established policies and procedures. The contractor's policies, procedures and practices shall be the same as used in its other contracts with the U.S. Government, and shall have been accepted by the U.S. Government agency assigned primary audit responsibility for the contractor. Such policies, procedures and practices shall be preserved and made available as part of the contractor's records which are required to be preserved and made available by the "Examination of Records by the Comptroller General" and "Audit" clauses of this contract. (3) Overseas Recruitment Incentive. (The term "employee", as used in this paragraph, means an employee who is a U.S. citizen or resident alien.) (i) Contractor employees serving overseas under a contract, who do not qualify for a U.S. tax exemption for overseas income provided under section 911 of the U.S. Internal Revenue Code (26 U.S.C. 911), are eligible to receive a salary supplement (overseas recruitment incentive). The overseas recruitment incentive (ORI) shall not exceed a maximum of ten percent of the base salary per individual for the period of eligible services. This supplement, if offered by the contractor, shall be paid at the end of an employee's tour of duty overseas. The contractor shall take all reasonable and prudent steps to ensure that any employee who is paid an ORI has not claimed or received the section 911 exemption. (ii) This supplement will not be paid in an amount which would cause the employee's salary to exceed the maximum payable annual or daily rate for a Foreign Service Officer Class FS-1 in effect at the time the base salary was earned. The FS-1 rate is set forth in the payment schedule of the Uniform State/AID/USIA Regulations, as from time to time amended. Any exception to the FS-1 limitation must be approved by the Contracting Officer. (iii) In the event that an employee subsequently receives a section 911 exclusion for any part of the base salary upon which this supplement has been paid, such supplement or appropriate portion thereof shall be reimbursed by the contractor to AID with interest. The interest shall be calculated at the average U.S. Treasury rate in effect for the period that the contractor or his employee had the funds. Neither the contractor's nor a subcontractor's inability to collect refunds from eligible employees shall be used as a basis to excuse subsequent refunds by the contractor to AID. (4) The workweek for the contractor's overseas employees should take into consideration local practices and, in collaboration with the Mission Director, shall be established to coincide with the workweek for those employees of the AID Mission and/or the cooperating country. (b) Salaries and wages. (1) Salaries and wages exclude overseas differential and other allowances associated with overseas service but include payments for personal services (including fees and honoraria) computed on a daily rate or other time basis different from an annual rate. Daily rates of compensation are computed on the basis of a 260-day work year made up of 5-day (8 hour) work weeks. (2) Any compensation (i.e., the employee's or consultant's base annual salary plus overseas recruitment incentive, if any) which exceeds the maximum payable annual or daily rate for a Foreign Service Officer Class FS-1 as set forth in the payment schedule of the Uniform State/AID/USIA Regulations, as from time to time amended, will be reimbursed only with the written approval of the contracting officer. Contracting officer approval of salaries in excess of the maximum payable rate for a Foreign Service Officer Class FS-1 will be based upon a memorandum from the technical office and approved by the Assistant Administrator or Mission Director having program responsibility for the project in support of which the contract is written. The technical office is responsible for evaluating the reasonableness of the proposed salary, taking into account such factors as the degree of technical competence required, the scope of supervisory responsibilities involved, and the relationship of the proposed salary level to the contractor's customary salary level, and other pertinent information. Copies of all memoranda approved by the Assistant Administrator or Mission Director will be furnished to the Procurement Support Division, Office of Procurement. (3) For policies on compensation of third country national or cooperating country national contractor employees, see 722.170. (c) Fringe benefits. AID contracts spell out rules and principles governing reimbursement of specific fringe benefits related to overseas service, including leave, holidays, differential, allowances, travel, transportation, and similar costs. The contract provisions are set forth in Part 752. [49 FR 13250, Apr. 3, 1984, as amended at 49 FR 33667, Aug. 24, 1984; 50 FR 50302, Dec. 10, 1985; 51 FR 20651, June 6, 1986; 52 FR 21058, June 4, 1987; 53 FR 50631, Dec. 16, 1988] 731.205-46 Travel costs. International travel costs are allowable only when the travel has received the specific prior approval of the contracting officer. For purposes of this provision, international travel is defined as any travel outside of the United States, or its territories and possessions. Subpart 731.3-Contracts With Educational Institutions 731.370 Predetermined fixed rates for indirect costs. Section 635(k) of the Foreign Assistance Act of 1961, as amended, authorizes AID to use predetermined fixed rates in determining the indirect costs applicable under contracts with educational institutions. 731.371 Compensation for personal services. (a) Specific limitations on compensation for personal services are set forth in the contract clauses specified in 752.7007. Contracting officer approval of salaries in excess of the maximum payable annual or daily rate for a Foreign Service Officer Class FS-1, as set forth in the Uniform State/AID/USIA Regulations, as from time to time amended will be based upon a memorandum from the technical office and approved by the Assistant Administrator or Mission Director having program responsibility for the project in support of which the contract is written. The technical office is responsible for evaluating the reasonableness of the proposed salary, taking into account such factors as the degree of technical competence required, the scope of supervisory responsibilities involved, and the relationship of the proposed salary level to the contractor's customary salary level, and other pertinent information. Copies of all memoranda approved by the Assistant Administrator or Mission Director will be furnished to the Procurement Support Division, Office of Procurement. (b) For policies on compensation of third country national or cooperating country national contractor employees, see 722.170. (c) Overseas Recruitment Incentive. (The term "employee", as used in this paragraph, means an employee who is a U.S. citizen or resident alien.) (1) Contractor employees serving overseas under a contract, who do not qualify for a U.S. tax exemption for overseas income provided under section 911 of the U.S. Internal Revenue Code (26 U.S.C. 911), are eligible to receive a salary supplement (overseas recruitment incentive). The overseas recruitment incentive (ORI) shall not exceed a maximum of ten percent of the base salary per individual for the period of eligible services. This supplement, if offered by the contractor, shall be paid at the end of an employee's tour of duty overseas. The contractor shall take all reasonable and prudent steps to ensure that any employee who is paid an ORI has not claimed or received the section 911 exemption. (2) This supplement will not be paid in an amount which would cause the employee's salary to exceed the maximum payable annual or daily rate for a Foreign Service Officer Class FS-1 in effect at the time the base salary was earned. The FS-1 rate is set forth in the payment schedule of the Uniform State/AID/USIA Regulations, as from time to time amended. Any exception to the FS-1 limitation must be approved by the Contracting Officer. (3) In the event that an employee subsequently receives a section 911 exclusion for any part of the base salary upon which this supplement has been paid, such supplement or appropriate portion thereof shall be reimbursed by the contractor to AID with interest. The interest shall be calculated at the average U.S. Treasury rate in effect for the period that the contractor or his employee had the funds. Neither the contractor's nor a subcontractor's inability to collect refunds from eligible employees shall be used as a basis to excuse subsequent refunds by the contractor to AID. (d) The workweek for the contractor's overseas employees should take into consideration local practices and, in collaboration with the Mission Director, shall be established to coincide with the workweek for those employees of the AID Mission and/or the cooperating country. [49 FR 13250, Apr. 3, 1984, as amended at 49 FR 33668, Aug. 24, 1984; 50 FR 50302, Dec. 10, 1985; 51 FR 20651, June 6, 1986; 52 FR 21058, June 4, 1987; 53 FR 50631, Dec. 16, 1988] Subpart 731.7-Contracts With 731.770 OMB Circular A-122, cost principles for nonprofit organizations; AID implementation. (a) Paragraph 6 of the transmittal letter for OMB Circular A-122 specifies that "Agencies shall designate a liaison official to serve as the agency representative on matters relating to the implementation of this Circular." The Director, Office of Procurement, has been so designated. The Overhead and Special Cost and Contract CloseOut Branch, Office of Procurement (OCC) provides staff assistance to the Director concerning OMB Circular A122. OSC is also responsible for obtaining cognizance under the criteria in the transmittal letter for OMB Circular A-122; for liaison with other cognizant agencies; for authorizing exclusion of OMB Circular A-122 coverage for a particular nonprofit organization pursuant to paragraph 5 of the OME Circular A-122 transmittal letter; and for advice and assistance in applying OMB Circular A-122 cost principles. (b) Paragraph 4b of the OMB Circular A-122 transmittal letter contains a definition of "prior approval" as follows: Prior approval means securing the awarding agency's permission in advance to incur costs for those items that are designated as requiring prior approval by OMB Circular A-122. Generally, this permission will be in writing. Where an item of cost requiring prior approval is specified in the budget of an award, approval of the budget constitute approval of that cost. Consequently, an award containing a budget constitutes prior approval of the direct cost item in the budget, unless otherwise annotated. Accordingly, award budgets should be appropriately annotated substantially as follows: Inclusion of any cost in the line item budget of this award does not obviate the requirement for prior approval of cost items designated as requiring prior approval by OMB Circular A-122; or In accordance with the requirements to OMB Circular No. A-122, approval is granted to incur costs for (name specific item or items) which are included in the budget of this award. [49 FR 13250, Apr. 3, 1984, as amended at 50 FR 50302, Dec. 10, 1985; 51 FR 20651, June 6, 1986] 731.771 Bid and proposal costs. Pending the establishment of Government-wide principles in Attachment B of OMB Circular A-122, AID will treat bid and proposal costs as follows: (a) Bid and proposal costs are the costs of preparing bids, proposals, and applications for potential activities such as Government and non-Government grants, contracts and other agreements, including the development of scientific, cost, and other data needed to support such bids, proposals, and applications. Except as provided in (b) below, bid and proposal costs of the current accounting period of both successful and unsuccessful bids and proposals normally should be treated as indirect costs for allocation to all current activities, and no bid and proposal costs of past accounting periods will be allocable to the current period. However, if the organization's established practice is to treat bid and proposal costs by some other method, the results obtained may be accepted only if found to be reasonable and equitable. (b) Bid and proposal costs incurred by the organization to obtain unrestricted funds are to be treated as fund raising and allocated an appropriate share of indirect costs under the conditions described in paragraph B.3 of Attachment A to OMB Circular A-122. 731.772 Compensation for personal services. (a) It is AID policy to require prior approval by the contracting officer before reimbursing a contractor for employees compensation which exceeds the FS-1 rate, as set forth in the payment schedule of the Uniform State/AID/USIA Regulations. The |