§ 7-12.105-2 Policy. AID standards and requirements and limitations with respect to the reimbursement of allowances of this kind are generally spelled out in contracts and in AIDPR 7-15. Subpart 7-12.8-Equal Opportunity in Employment § 7-12.802 Definitions. § 7-12.802-50 AID Contracts Compliance Officer. "AID Contracts Compliance Officer" means the Special Assistant to the Administrator for Equal Opportunity in Employment and the Deputy AID Contracts Compliance Officer. § 7-12.802-51 Agency. Predominant Interest "Predominant Interest Agency" means the Federal agency which has primary responsibility, as designated by the President's Committee, for the administration of a Contractor's obligations under the Orders. See instructions attached to Standard Form 40 (FPR 1-16.901-40). § 7-12.805 Administration. § 7-12.805-1 Duties of agencies. (a) Each head of a procuring activity is responsible for carrying out and assuring adherence to the equal employment opportunity policy set forth in FPR 1-12.801. (b) Under the immediate supervision of the Administrator, the AID Contracts Compliance Officer is responsible for the administration of the AID contracts compliance program, including reporting systems, training of personnel, maintenance of records, development of policies, standards, and guides, review and coordination of AID compliance activities, reporting to the Secretary of Labor. All communications regarding any phase of the AID equal opportunity program which are received from or require transmittal to the Secretary of Labor will be coordinated with or handled by the AID Contracts Compliance Officer. As required by the AID Contracts Compliance Officer, the Director, Office of Procurement maintains central records for the contracts compliance program. These records include: (1) A roster of predominant interest agency assignments; (2) A roster of preaominant interest agency assignments that have been made to AID; (3) A contract compliance card file; (4) Copies of compliance reports; (5) Copies of questionnaires and replies; and (6) On-site survey files. [30 F.R. 12979, Oct. 12, 1965, as amended at 32 F.R. 8469, June 14, 1967] § 7-12.805-4 Compliance reports. If AID is the predominant interest agency, the Contracting Officer will review a prospective Contractor's current compliance report before an award is made. See FPR 1-1.310-5(a) (5). § 7-12.805-5 Compliance reviews. (a) The AID Contracts Compliance Officer conducts on-site compliance reviews and prepares and signs reports on them. He advises the Secreatry of Labor when a review has been conducted. One copy of the report is forwarded to the Director, Office of Procurement and other copies to such other addressees as he deems appropriate. The original and appropriate attachments are maintained by the AID Contracts Compliance Officer. (b) On-site compliance reports are divided into 4 parts, as follows: Part I: a. Name and Address of Contractor. b. Predominant Interest Agency. c. Reporting Status of Contractor (Prime, sub. etc.). d. Facilities Visited (Address). e. Date of Visits. 1. Persons Interviewed and Titles. a. Employment Policy (brief summary of employment policies, and exhibits, if any, of equal employment policies in use by Contractor). b. Educational and Training Programs. c. Recruitment Sources and Advertising (discussion of sources and exhibits, if any). d. Organization of Workers (bargaining agreements with labor unions, desegregated facilities in office and field installations, etc.). Part III-Personnel Distribution a. Home Office (number of minority group members in executive positions as compared to total executive positions). b. Field (number of minority group members in executive positions as compared to total executive positions). Part IV-Remarks [30 F.R. 12979, Oct. 12, 1965, as amended at 32 F.R. 8469, June 14, 1967] The Foreign Assistance and Related Agency Appropriation Act, 1966, imposes the following requirement: None of the funds appropriated or made available by this or any predecessor Act for the year subsequent to fiscal year 1962 for carrying out the Foreign Assistance Act of 1961, as amended, may be used on or after 60 days from the date of enactment of this Act to make payments with respect to any contract for the performance of services outside the United States by U.S. citizens unless the President shall have promulgated regulations that provide for the investigation of such citizens for loyalty and security to the extent necessary to protect the security and other interests of the United States: Provided, That such regulations shall require that any such U.S. citizen who will have access, in connection with the performance of such services, to information or material classified for security reasons shall be subject to such investigation as may otherwise be provided by law and executive order. [31 F.R. 11030, Aug. 19, 1966] § 7-12.5101 Contract provision. AID contracts provide for necessary approvals of contract personnel. § 7-12.5102 AID Directives. (a) Regulations have been issued under the statutory provision cited in AIDPR S7-12.5100 and are set out in AID Regulation 10, published in Part 210, Title 22 of the Code of Federal Regulations. (b) See also Manual Order 610.2, entitled "Secuirty Clearance for Contractors and Contractor Personnel under AID Financed Contracts". [31 F.R. 11030, Aug. 19, 1966] Subpart 7-12.52-Foreign Nationals § 7-12.5201 Construction work. § 7-12.5201-1 Legislation. Beginning with the Foreign Assistance and Related Agencies Appropriaton Act, 1964, the appropriaton Acts governing AID have imposed the following requirement: None of the funds made available by this Act for carrying out the Foreign Assistance Act of 1961, as amended, may be obligated on or after April 30, 1964, for financing, in whole or in part, the direct costs of any contract for the construction of facilities and installations in any underdeveloped country, unless the President shall, on or before such date, have promulgated regulations designed to assure, to the maximum extent consistent with the national interest and the avoidance of excessive costs to the United States, that none of the funds made available by this Act and thereafter obligated shall be used to finance the direct costs under such contracts for consrtuction work performed by persons other than qualified nationals of the recipient country or qualified citizens of the United States: Provided, however, That the President may waive the application of this amendment if it is important to the national interest. See, for example, section 117 of the Foreign Assistance and Related Agencies Appropriation Act, 1965. § 7-12.5201-2 Regulations. Regulations have been issued under the statutory provision cited in AIDPR 7-12.5201-1. They are set out in AID Regulation 7, published in Part 207, Title 22 of the Code of Federal Regulations, and reproduced in AID Manual Order 1412.1.2. Subpart 7-12.53-Workmen's Compensation (Defense Base Act) and War Hazards Compensation for Overseas Employees See FPR 1-10.402 and AIDPR 7-10.402 with respect to coverage under the Defense Base Act, 42 U.S.C. 1651, et seq. This law requires Contractors to provide workmen's compensation coverage for overseas employees. Such coverage is supplemented by the War Hazards Compensation Act, 42 U.S.C. 1701, et seq., which provides for payments from the U.S. Treasury with resepct to injuries, death, and detention resulting from a war risk hazard. No charge is made to Contractors or Contractor employees for War Hazards Compensation Act coverage. PART 7-15-CONTRACT COST PRINCIPLES AND PROCEDURES 7-15.307-4 General. Definitions. Predetermined fixed rates for indirect costs. AUTHORITY: The provisions of this Part 7-15 issued under sec. 621, 75 Stat. 445, as amended; 22 U.S.C. 2381. SOURCE: The provisions of this Part 7-15 appear at 30 F.R. 12981, Oct. 12, 1965, unless otherwise noted. Subpart 7-15.1-Applicability § 7-15.103 Cost-reimbursement research contracts with educational institutions. This category is applied to contracts with educational institutions for technical assistance services provided to or for another country. See AIDPR 7-15.151. § 7-15.107 Advance understandings on particular cost items. AID contracts generally spell out rules and principles governing the reimbursement of compensation, travel, transportation, and a number of "fringe benefit" costs associated with overseas operations. § 7-15.151 Cost-reimbursement technical assistance contracts with educational institutions. The established principles for costreimbursement research contracts with educational institutions are applied to contracts with educational institutions for technical assistance services provided to or for another country. Subpart 7-15.2-Principles and Procedures for Use in Cost-Reimbursement Type Supply and Research Contracts With Commercial Organizations § 7-15.200 Applicability. As provided in FPR 1-15.102, this subpart applies to contracts for services, as well as to contracts for supplies and to contracts with noncommercial organizations other than educational institutions. § 7-15.205 Selected costs. § 7-15.205-6 Compensation for personal services. (a) 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. Where approvals are required by this section for salaries, allowances, or other matters specifically spelled out and agreed to in the contract, the Contracting Officer's signature on the contract will be sufficient evidence of approval. (b) Salaries and wages: Within the meaning of this paragraph (AIDPR 715.205-6(b)) and the subparagraphs under it, salaries and wages exclude overseas differential and other allowances associated with overseas service, except as otherwise stated, but include payments for personal services (including fees and honoraria) computed on a daily or other time basis different from an annual rate. Daily rates of compensation are computed on the basis of a 260-daywork year made up of 5-day (8-hour) work weeks. (1) Salary ceiling. Reimbursement will not be allowed with respect to any salary or wage charged as a direct cost which exceeds the annual rate specified for the maximum level of Foreign Service Reserve Class 1 (or a daily rate to be determined by dividing such annual salary by 260, if payment is not on an annual basis) as set forth in Manual Order 432.3 entitled, 'Pay Schedules, Uniform State/AID/USIA Regulations,' as from time to time amended, or a daily rate of $100 for consultants or experts engaged for no more than ninety (90) days in any 12-month period, without written approval of the Contracting Officer. Justifications for such approvals should show the present scale attached to the position and the earnings of the person chosen to fill it, if someone has been selected; the reasons which make it necessary to pay the amount proposed, including reasonable efforts to recruit personnel of adequate qualifications and experience at a lower rate of compensation; and the reasons why payment at the proposed level is needed to accomplish AID objectives. (2) Salary scale approval. Contractor salary and wage scales for positions which will be charged as direct costs are subject to written approval of the Contracting Officer. (3) Individual salary approval. Unless approved by the Contracting Officer, reimbursement will not be allowed with respect to any salary or wage charged as a direct cost which exceeds the employee's current salary or wage or highest rate of annual salary or wage during any full year of the immediately preceding 3 years, plus a reasonable incentive for overseas service not to exceed 10 percent. Provision may be made for merit increases in accord with the Contractor's established practice as approved by the Contracting Officer or for a merit increase after one year of service overseas, provided that, as a general rule, merit increases do not exceed 5 percent of the salary at the time of the increase. (4) Approval procedures. In giving approval to salaries exceeding the limits established in subparagraphs (1) and (3) of this paragraph, Contracting Officers shall follow the procedures set forth in Manual Order 1423.2, entitled "Approval of Salaries under AID-Direct Contracts". (c)-(f) [Reserved] (g) Fringe benefits: AID contracts generally spell out rules and principles governing reimbursement of specific "fringe benefits" costs associated with overseas operations. These may include vacations, holidays, sick leave, military leave, employee insurance, medical examinations, overseas differential, quarters allowance, temporary lodging allowance, post allowance, supplemental post allowance, education allowance, education travel allowance, separate maintenance allowance, compassionate travel, rest and recuperation travel, transportation of motor vehicles, personal effects, and household goods, and storage. (1) Leave (vacation, sick, military). [Reserved] (2) Holidays. [Reserved] (3) Employee insurance. [Reserved] (4) Medical examinations. [Reserved] (5) Overseas differential allowances. [Reserved] (6) Quarters allowances. [Reserved] (7) Temporary lodging allowances. [Reserved] (8) Post allowances. [Reserved] (9) Supplemental post allowances. [Reserved] (10) Education allowances. [Reserved] (11) Education travel allowances. [Reserved] (12) Separate maintenance allowance. [Reserved] (13) Transportation and storage of motor vehicles, personal effects, and household goods. [Reserved] (See AIDPR 7-15.205-45.53 with respect to a restriction on transportation of nonU.S. made motor vehicles.) (a) Class of travel. The difference in cost between first-class air accommodations and less than first-class air commodations is unallowable except when less than first-class accommodations are not reasonably available to meet necessary requirements. A responsible officer of the Contractor must certify to the facts justifying an exception in the voucher or other documents retained as part of its contract records to support the claim or for post-audit. One stopover en route for a period not to exceed 24 hours is allowable when the traveller uses less than first-class accommodations for an international trip of 14 hours or more of scheduled duration. For international travel, the cost incurred for transporting not to exceed 22 pounds of accompanied personal baggage per traveller will be allowed if reasonable, in addition to that regularly allowed with a ticket for less than firstclass accommodations. (b) Flag of carrier. International air travel must be carried out on U.S. flag carriers. Exceptions to this requirement will be allowed in the following situations provided that a responsible officer of the Contractor certifies to the facts in the voucher or other documents retained as a part of its contract records to support its claim for reimbursement and for post audit: (1) Where a flight by a U.S. carrier is not scheduled to arrive in time for the conduct of official business., (2) Where a flight by U.S. carrier is scheduled but does not have accommodations available when reservations are sought. (3) Where the departure time, routing, or other features of a U.S. carrier flight would interfere with or prevent the satisfactory performance of official business. (4) Where a scheduled flight by a U.S. carrier is delayed because of weather, mechanical, or other conditions to such an extent that use of a non-U.S. carrier is in the Govornment's interest. (5) Where the appropriate class of accommodations is available on both U.S. and non-U.S. carriers, but the use of the U.S. carriers will result in higher total U.S. dollar cost to the contract due to additional per diem or other expenses. (6) Where the appropriate class of accommodations is available only on a non-U.S. carrier and the cost of transportation and related per diem is less than the cost of available accommodations of another class on a U.S. carrier and related per diem. |