years of age or, regardless of age, are incapable of self support. (3) Parents (including step and legally adoptive parents), of the employee or of the spouse, when such parents are at least 51 percent dependent on the employee for support; and (4) Sisters and brothers (including step or adoptive sisters or brothers) of the employee, or of the spouse, when such sisters and brothers are at least 51 percent dependent on the employee for support, unmarried and under 21 years of age, or regardless of age, are incapable of self support. (d) Local currency shall mean the currency of the Cooperating Country. (e) Regular employee shall mean a Contractor employee appointed to serve one year or more in the Cooperating Country. (f)Short-term employee shall mean a Contractor employee appointed to serve less than one year in the Cooperating Country. (g) Third Country National (TCN) employee means an individual who meets the citizenship requirements of 48 CFR 702.170-15 and is hired while residing outside the United States for work in a Cooperating Country. [49 FR 13259, Apr. 3, 1984, as amended at 52 FR 4145, Feb. 10, 1987; 52 FR 38098, Oct. 14, 1987; 55 FR 6802, Feb. 27, 1990; 64 FR 42042, Aug. 3, 1999] 752.204-2 Security requirements. Pursuant to the Uniform State/ USAID/USIA Regulations (Volume 12, Foreign Affairs Manual, Chapter 540), USAID applies the safeguards applicable to "Confidential" information to administratively controlled information designated as "Sensitive But Unclassified". Therefore, when the clause in FAR 52.204-2 is used in USAID contracts, pursuant to 704.404, paragraph (a) of the clause is revised as follows: (a) This clause applies to the extent that this contract involves access to classified ('Confidential', 'Secret', or 'Top Secret'), or administratively controlled ('Sensitive But Unclassified') information. [49 FR 13259, Apr. 3, 1984, as amended at 49 FR 33668, Aug. 24, 1984; 62 FR 40469, July 29, 1997; 64 FR 5008, Feb. 2, 1999] 752.209-71 Organizational conflicts of interest discovered after award. As prescribed in 709.507-2, include the following clause in any solicitation containing a provision in accordance with (48 CFR) FAR 9.507-1, or a clause in accordance with (48 CFR) FAR 9.5072, establishing a restraint on the con tractor's eligibility for future contracts. ORGANIZATIONAL CONFLICTS OF INTEREST (a) The Contractor agrees that, if after award it discovers either an actual or potential organizational conflict of interest with respect to this contract, it shall make an immediate and full disclosure in writing to the Contracting Officer which shall include a description of the action(s) which the Contractor has taken or proposes to take to avoid, eliminate or neutralize the conflict. (b) The Contracting Officer shall provide the contractor with written instructions concerning the conflict. USAID reserves the right to terminate the contract if such action is determined to be in the best interest of the Government. (End of clause) [58 FR 42255, Aug. 9, 1993, as amended at 64 FR 5008, Feb. 2, 1999] 752.211-70 Language and measurement. The following clause shall be used in all USAID-direct contracts. LANGUAGE AND MEASUREMENT (JUN 1992) (a) The English language shall be used in all written communications between the parties under this contract with respect to services to be rendered and with respect to all documents prepared by the contractor except as otherwise provided in the contract or as authorized by the contracting officer. (b) Wherever measurements are required or authorized, they shall be made, computed, and recorded in metric system units of measurement, unless otherwise authorized by USAID in writing when it has found that such usage is impractical or is likely to cause U.S. firms to experience significant inefficiencies or the loss of markets. Where the metric system is not the predominant standard for a particular application, measurements may be expressed in both the metric and the traditional equivalent units, provided the metric units are listed first. (End of clause) [57 FR 23321, June 3, 1992. Redesignated at 61 FR 39095, July 26, 1996] 752.216-70 Award fee. As prescribed in 716.406, insert the following clause in solicitations and contracts in which an award-fee contract is contemplated. AWARD FEE (MAY 1997) (a) The Government shall pay the Contractor for performing this contract such base fee and such additional fee as may be awarded, as provided in the Schedule. (b) Payment of the base fee and award fee shall be made as specified in the Schedule; provided, that after payment of 85 percent of the base fee and potential award fee, the Contracting Officer may withhold further payment of the base fee and award fee until a reserve is set aside in an amount that the Contracting Officer considers necessary to protect the Government's interest. This reserve shall not exceed 15 percent of the total base fee and potential award fee or $100,000, whichever is less. The Contracting Officer shall release 75 percent of all fee withholds under this contract after receipt of the certified final indirect cost rate proposal covering the year of physical completion of this contract, provided the Contractor has satisfied all other contract terms and conditions, including the submission of the final patent and royalty reports, and is not delinquent in submitting final vouchers on prior years' settlements. The Contracting Officer may release up to 90 percent of the fee withholds under this contract based on the Contractor's past performance related to the submission and settlement of final indirect cost rate proposals. (c) Award fee determinations made by the Government under this contract are not subject to the Disputes clause. (End of clause) [64 FR 5008, Feb. 2, 1999] 752.219-8 Utilization of small business concerns and small disadvantaged business concerns. The Foreign Assistance Act calls for USAID to give small businesses an opportunity to provide supplies and services for foreign assistance projects. To help USAID meet this obligation, the following paragraph is to be added to the clause prescribed in FAR 19.708(a): USAID small business provision. To permit USAID, in accordance with the small business provisions of the Foreign Assistance Act, to give small business firms an opportunity to participate in supplying equipment supplies and services financed under this contract, the Contractor shall, to the maximum extent possible, provide the following information to the Office of Small and Disadvantaged Business Utilization (OSDBU), USAID, Washington, DC 20523-1414, at least 45 days prior to placing any order in excess of the simplified acquisition threshold ex cept where a shorter time is requested of, and granted by OSDBU: (1) Brief general description and quantity of commodities or services; (2) Closing date for receiving quotations or bids; and (3) Address where invitations or specifications may be obtained. [49 FR 13259, Apr. 3, 1984, as amended at 52 FR 21059, June 4, 1987; 56 FR 2699, Jan. 24, 1991; 61 FR 39095, July 26, 1996; 62 FR 40469, July 29, 1997] 752.225-9 Buy American Act-Trade Agreements Act-Balance of Payments Program. The clause prescribed by FAR 25.408(a)(2) is not generally included in USAID contracts when more stringent source requirements are stated in the contract or when inclusion is not appropriate under FAR 25.403, or 725.403 of this chapter. (See Executive Order 11223, dated May 12, 1965, 30 FR 6635.) The clause setting forth USAID's source restrictions is shown in section 752.225-70. [49 FR 13259, Apr. 3, 1984, as amended at 54 FR 16122, Apr. 21, 1989; 59 FR 33447, June 29, 1994; 62 FR 40470, July 29, 1997] 752.225-70 Source, origin and nationality requirements. The following clause is required as prescribed in 725.704. SOURCE, ORIGIN AND NATIONALITY (a) Except as may be specifically approved by the Contracting Officer, all commodities (e.g., equipment, materials, vehicles, supplies) and services (including commodity transportation services) which will be financed under this contract with U.S. dollars shall be procured in accordance with the requirements in 22 CFR part 228, "Rules on Source, Origin and Nationality for Commodities and Services Financed by USAID." The authorized source for procurement is Geographic Code 000 unless otherwise specified in the schedule of this contract. Guidance on eligibility of specific goods or services may be obtained from the Contracting Officer. (b) Ineligible goods and services. The Contractor shall not procure any of the following goods or services under this contract: (1) Military equipment, (2) Surveillance equipment, (3) Commodities and services for support of police and other law enforcement activities, (4) Abortion equipment and services, or (5) Luxury goods and gambling equipment, LOCAL PROCUREMENT (FEB 1997) (a) Local procurement involves the use of appropriated funds to finance the procurement of goods and services supplied by local businesses, dealers, or producers, with payment normally being in the currency of the cooperating country. (b) All locally-financed procurements must be covered by source/origin and nationality waivers as set forth in subpart F of 22 CFR part 228 except as provided for in 22 CFR 228.40, Local procurement. [62 FR 40470, July 29, 1997; 62 FR 45334, Aug. 27, 1997; 62 FR 47532, Sept. 9, 1997] 752.226-1 Determination of status as disadvantaged enterprise. As prescribed in 726.7006(a), insert the following provision: DISADVANTAGED ENTERPRISE The offeror/contractor shall submit a representation in the following form to the contracting officer: (a) Representation. The offeror represents that: (1) It is, is not a small disadvantaged business. (2) It is, is not an historically black college or university, as designated by the Secretary of Education pursuant to 34 CFR 608.2. (3) It is, is not a college or university having a student body in which more than 40 percent of the students are Hispanic American. (4) It is, is not a private voluntary organization which is controlled by individuals who are socially and economically disadvantaged. (b) Definitions. (1) Asian Pacific Americans, as used in this provision means United States citizens whose origins are in Japan, China, the Philippines, Vietnam, Korea, Samoa, Guam, the U.S. Trust Territory of the Pacific Islands (Republic of Palau), the Northern Mariana Islands, Laos, Kampuchea (Cambodia), Taiwan, Burma, Thailand, Malaysia, Indonesia, Singapore, Brunei, Republic of the Marshall Islands, or the Federated States of Micronesia. (2) Controlled by socially and economically disadvantaged individuals means management and daily business are controlled by one or more such individuals. (3) Native Americans, as used in this provision means American Indians, Eskimos, Aleuts, and native Hawaiians. (4) Owned by socially and economically disadvantaged individuals means at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged, or a publicly owned business having at least 51 percent of its stock owned by one or more socially and economically disadvantaged individuals. (5) Small business concern, as used in this provision, means a U.S. concern, including its affiliates, that is independently owned and operated, not dominant in the field of operation in which it is bidding on Government contracts, and qualifies as a small business under the criteria and size standards in 13 CFR part 121. (6) Small disadvantaged business, as used in this provision, means a small business concern that: (i) Is at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged, or a publicly owned business having at least 51 percent of its stock owned by one or more socially and economically disadvantaged individuals; and (ii) Has its management and daily business controlled by one or more such individuals. (7) Subcontinent Asian Americans, as used in this provision, means United States citizens whose origins are in India, Pakistan, Bangladesh, Sri Lanka, Bhutan, or Nepal. (c) Qualified groups. The offeror shall presume that socially and economically disadvantaged individuals include Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, Subcontinent Asian Americans, and women. (End of provision) [56 FR 27209, June 13, 1991, as amended at 62 FR 40470, July 29, 1997] As prescribed in 726.7007, insert the following clause: SUBCONTRACTING WITH DISADVANTAGED ENTERPRISES (APR 1997) NOTE: This clause does not apply to prime contractors that qualify as disadvantaged enterprises as described below. (a) Not less than ten (10) percent of the dollar value of this contract shall be subcontracted to disadvantaged enterprises as described in paragraph (b) of this clause. (b) Disadvantaged enterprises are U.S. organizations or individuals that are: (1) Business concerns (as defined in FAR 19.001) owned and controlled by socially and economically disadvantaged individuals; (2) Institutions designated by the Secretary of Education, pursuant to 34 CFR 608.2, as historically black colleges and universities: (3) Colleges and universities having a student body in which more than 40 percent of the students are Hispanic American; or (4) Private voluntary organizations which are controlled by individuals who are socially and economically disadvantaged. (c) Definitions. (1) Controlled by socially and economically disadvantaged individuals means management and daily business are trolled by one or more such individuals. con that in performance of the contract, at least 51 percent of the cost of contract performance incurred for personnel shall be expended for employees of the contractor or employees of other disadvantaged enterprises eligible under the terms of 706.302-71. For the purposes of this clause, independent contractors hired by the contractor shall be considered employees of the contractor. (End of clause) [58 FR 42255, Aug. 9, 1993, as amended at 62 FR 40470, July 29, 1997] 752.228-3 Worker's compensation insurance (Defense Base Act). As prescribed in 728.309, the following supplemental coverage is to be added to the clause specified in FAR 52.228-3 by the USAID contracting officer. (a) The Contractor agrees to procure Defense Base Act (DBA) insurance pursuant to the terms of the contract between USAID and USAID's DBA insurance carrier unless the Contractor has a DBA self insurance program approved by the Department of Labor or has an approved retrospective rating agreement for DBA. (b) If USAID or the contractor has secured a waiver of DBA coverage (see AIDAR 728.305-70(a)) for contractor's employees who are not citizens of, residents of, or hired in the United States, the contractor agrees to provide such employees with worker's compensation benefits as required by the laws of the country in which the employees are working, or by the laws of the employee's native country, whichever offers greater benefits. (c) The Contractor further agrees to insert in all subcontracts hereunder to which the DBA is applicable, a clause similar to this clause, including this sentence, imposing on all subcontractors a like requirement to provide overseas workmen's compensation insurance coverage and obtain DBA coverage under the USAID requirements contract. [53 FR 50631, Dec. 16, 1988, as amended at 54 FR 16122, Apr. 21, 1989; 56 FR 67226, Dec. 30, 1991] 752.228-7 Insurance-liability to third persons. As prescribed in 728.307-2(c), the following paragraph is to be added to the clause specified in FAR 52.228-7 as either paragraph (h) (if FAR 52.228-7 Alternate I is not used) or (i) (if FAR 52.228-7 Alternate I is used): () Insurance on private automobiles. If the Contractor or any of its employees or their dependents transport or cause to be transported (whether or not at contract expense) privately owned automobiles to the Cooperating Country, or they or any of them purchase an automobile within the Cooperating Country, the Contractor agrees to make certain that all such automobiles during such ownership within the Cooperating Country will be covered by a paid-up insurance policy issued by a reliable company providing the following minimum coverages or such other minimum coverages as may be set by the Mission Director, payable in United States dollars or its equivalent in the currency of the Cooperating Country: injury to persons, $10,000/$20,000; property damage, $5,000. The premium costs for such insurance shall not be a reimbursable cost under this contract. Copies of such insurance policies shall be preserved and made available as part of the Contractor's records which are required to be preserved and made available by the "Audit and Records-Negotiation" clause of this contract. [53 FR 50632, Dec. 16, 1988, as amended at 54 FR 16122, Apr. 21, 1989; 62 FR 40470, July 29, 1997] MEDICAL EVACUATION (MEDEVAC) SERVICES (MAR 1993) (a) Contractors agree to provide medevac service coverage to all U.S. citizen, U.S. resident alien, and Third Country National employees and their authorized dependents while overseas under an USAID financed direct contract. Coverage shall be obtained pursuant to the terms of the contract between USAID and USAID's medevac service provider unless exempted in accordance with paragraph (b) of this clause. (b) The following are exempted from the requirements in paragraph (a) of this clause: (i) Eligible employees and their dependents with a health program that includes suffi cient medevac coverage as approved by the Contracting Officer. (ii) Eligible employees and their dependents located at Missions where the Mission Director makes a written determination to waive the requirement for such coverage based on findings that the quality of local medical services or other circumstances obviate the need for such coverage. (c) Contractors further agree to insert in all subcontracts hereunder to which the medevac coverage is applicable, a clause similar to this clause, including this sentence, imposing on all subcontractors a like requirement to provide medical evacuation services coverage and obtain medevac coverage in accordance with the contract between USAID and USAID's medevac service provider. [59 FR 33447, June 29, 1994] 752.229-70 Federal, state and local taxes. For contracts involving performance overseas the clauses prescribed in FAR 29.401-3 or 29.401-4 may be modified to specify that the taxes referred to are United States taxes. 752.231-71 Salary supplements for HG employees. As prescribed in 731.205-71, for use in all contracts with a possible need or services of a HG employee. The clause should also be inserted in all subsequent sub-contracts. SALARY SUPPLEMENTS FOR HG EMPLOYEES (ОСТ 1998) (a) Salary supplements are payments made that augment an employee's base salary or premiums, overtime, extra payments, incentive payment and allowances for which the HG employee would qualify under HG rules or practice for the performance of his/hers regular duties or work performed during his/ hers regular office hours. Per diem, invitational travel, honoraria and payment for work carried out outside of normal working hours are not considered to be salary supplements. (b) Salary supplements to HG Employees are not allowable without the written approval of the Contracting Officer. [64 FR 16649, Apr. 6, 1999] 752.232-7 Payments under time-and materials and labor-hour contracts. USAID uses the payment provision contained in FAR 52.232-7 in indefinite quantity contracts for professional services up to 120 days, as provided in |