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be responsible for receiving cases, scheduling and recording the proceedings at meetings, maintaining a log of all cases received by him for the Board, and other duties as assigned by the Board. [36 F.R. 23556, Dec. 10, 1971]

NOTE: 7-8.211 is effective 90 days after publication.

§ 7-8.211-2 Required review and approval.

(a) When required. The AID Settlement Review Board shall receive and approve all AID/W and Mission proposed settlements or determinations described under FPR 1-8.211-2(a).

(b) Level of review. Proposed settlements in excess of $1 million described in FPR 1-8.211-2(b) shall be reviewed and approved by a Board consisting of the Assistant Administrator for Administration, the General Counsel, and the Controller, without power of redelegation.

(c) Submission of information. The Contracting Officer shall submit the information required under FPR 1-8.211-2 (c) in triplicate to the Office of Procurement, A/PROC, Attention: Recorder, A.I.D. Settlement Review Board.

[36 F.R. 23556, Dec. 10, 1971]

NOTE: § 7-8.211-2 is effective 90 days after publication.

§ 7-8.211-4 Action by Board.

For purposes of this section, the phrase "within 30 days after submission to the board" found in FPR 1-8.211-4 shall mean within 30 days after receipt by the Board Recorder of all information required pursuant to FPR 1-8.211-2(c). [36 F.R. 23557, Dec. 10, 1971]

NOTE: 7-8.211-4 is effective 90 days after publication.

§ 7-8.213 Cost principles applicable to

the settlement of research and development contracts with educational institutions.

The same cost principles are used for the same purpose for contracts with educational institutions for technical assistance services provided to or for another country.

Subpart 7-8.7-Clauses

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7-10.402

Contracts

Workmen's compensation insur-
ance overseas.

Subpart 7-10.5-Insurance Under Cost-
Reimbursement Type Contracts

7-10.502
Types of insurance.
7-10.502-1 Workmen's compensation and
employers' liability insurance.
AUTHORITY: The provisions of this Part 7-
10 issued under sec. 621, 75 Stat. 445, as
amended; 22 U.S.C. 2381.

SOURCE: The provisions of this Part 7-10 appear at 30 F.R. 12979, Oct. 12, 1965, unless otherwise noted.

Subpart 7-10.1-Bonds

§ 7-10.106 Advance payment bonds.

(a) Generally, advance payment bonds will not be required in connection with A.I.D. contracts containing an advance payment provision. In lieu thereof, Contracting Officers will follow procedures set forth in Federal Procurement Regulations § 1-30.413.

(b) Whenever a Contracting Officer considers that an advance payment bond is necessary, the Contracting Officer will (1) establish a bond penalty that will adequately protect interests of the Government, (2) use the A.I.D. Advance Payment Bond format, (3) place bond with a surety currently approved by the U.S. Treasury Department according to the latest Treasury Department Circular 570, (4) stipulate that the cost of the bond shall not exceed a rate of $7.50 per $1,000 per annum based on the penalty of the bond, without the prior written approval of the Insurance Advisor, PROC/CSD.

(c) Where the surety's obligation under an advance payment bond covers

all advances made to the contractor during the term of the contract, no release should be issued to the surety until all advances made and to be made under the contract have been fully liquidated in accordance with the provisions of the contract, such as no-pay vouchers, reports of expenditures, or by refund. See, e.g., FPR 1-30.414-2 (d), (e), and (k), and AIDPR 7-30.4502 C. (3), D.7, D.8 and E. Where the surety's obligation under the bond is limited to advances made during a specified period of time, no release should be issued to the surety until all advances made and to be made during the specified period have been liquidated as aforesaid.

[35 F.R. 3808, Feb. 27, 1970, as amended at 36 F.R. 23557, Dec. 10, 1971]

NOTE: The addition of paragraph (c) at 36 F.R. 23556 is effective 90 days after publication.

Subpart 7-10.3-Insurance-General § 7-10.302 Notice of cancellation or change.

All policies required by AID will provide that in the event of cancellation or change in policy coverage thirty days prior written notice will be given to the cognizant Contracting Officer. The Contracting Officer will, in turn, notify the Insurance Advisor, Office of Procurement. [30 F.R. 12979, Oct. 12, 1965, as amended at 32 F.R. 8469, June 14, 1967]

§ 7-10.305 Procedures to be followed in the event of loss or damage to Government property.

The Contractor must properly report all the circumstances of loss promptly to the Contracting Officer and advise whether any parties other than the Contractor were responsible and what steps have been taken to recover from them. The Contractor will protect Government subrogation rights. § 7-10.351

Liability insurance for operation of motor vehicles.

If a Contractor or any of its employees or their dependents transport or cause to be transported privately owned motor vehicles to a cooperating country, or they or any of them purchase a motor vehicle within a cooperating country, the Contractor must give assurance that adequate liability coverage is provided and kept in force. Before such a motor vehicle is operated in a cooperating country, and whenever requested, the Contractor will provide the Mission

Director, or his designee, with satisfactory evidence of such coverage by an insurance carrier satisfactory to him. Coverage will be for amounts equal in dollars or currency of the cooperating country to not less than $10,000/$20,000 for personal injury and $5,000 for property damage, or equal to not less than such other minimums as the Mission Director may prescribe from time to time. The cost of such insurance is not reimbursable.

Subpart 7-10.4-Insurance Under

Fixed-Price Contracts

§ 7-10.402 Workmen's compensation in

surance overseas.

(a) The words "the Defense Base Act" may be deleted from the clause set forth in FPR 1-10.402(a) and the following substituted for it: "United States Public Law 208, 77th Congress".

(b) If the Contractor provides satisfactory coverage for them, waivers are generally granted for employees serving overseas under an AID contract who are not hired in the United States and are not citizens or bona fide residents of the United States. If a waiver is granted, the Contractor must provide, for nationals or permanent residents of the country in which the services are to be rendered, security for compensation benefits pursuant to the applicable law of the country for injury or death in the course of employment, or in the absence of such law, adequate employers' liability insurance, and for all other employees not covered by the Defense Base Act, the Contractor must provide adequate employers' liability insurance. Application for waivers is made by the Contracting Officer directly to the Director, Bureau of Employees' Compensation, Department of Labor, on Labor Department Form BEC 565, an original and 4 copies of which are forwarded to the Director. The following clause is included in all contracts for which a waiver of the kind described above will be applicable: WORKMEN'S COMPENSATION INSURANCE (42 U.S.C. 1651, ET SEQ.)

(a) The Contractor shall provide and thereafter maintain workmen's compensation insurance as required by United States Public Law 208, 77th Congress, as amended (42 U.S.C. 1651, et seq.), with respect to and prior to the departure for overseas employment under this contract of all employees who are hired in the United States or who are American citizens or bona fide residents of the United States.

(b) The Contractor shall further provide for all employees who are nationals or permanent residents of the country in which services are being rendered, if the contract authorizes their employment, security for compensation benefits pursuant to the applicable law of such country for injury or death in the course of such employment, or in the absence of such law, employer's liability insurance. For all other authorized employees not hired in the United States or who are not American citizens or bona fide residents of the United States, Contractor shall provide the necessary employer's liability insurance.

(c) The Contractor agrees to insert the provisions of this or a similar Clause, including this sentence, in all subcontracts or subordinate contracts hereunder except subcontracts or subordinate contracts exclusively for furnishing materials or supplies.

(d) The Contractor agrees, as evidence of compliance with this clause, to provide the Contracting Officer within a reasonable period of time after the effective date of this contract with a copy of the actual insurance policy indicating the coverage provide for employees assigned by the Contractor to overseas employment under this contract and the Contractor agrees to provide the Contracting Officer with a similar copy of the insurance policy within a reasonable time after each renewal of this coverage, so long as this contract remains in effect. All such insurance policies shall be subject to the written approval of the Contracting Officer.

(e) The Contractor further agrees to provide the Contracting Officer with three copies of Department of Labor Form BEC239-1 or US-240 "Certificate That Employer Has Secured Payment of Compensation," herein identified as a "Certificate of Compliance". The Contractor can obtain this Certificate from the insurance carrier through the Deputy Commissioner, Bureau of Employees' Compensation, Department of Labor, for the appropriate Compensation District.

Subpart 7-10.5-Insurance Under Cost-Reimbursement Type Contracts Types of insurance.

§ 7-10.502

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§ 7-12.101-1.50 Overseas employment.
AID Contractors who employ cooper-
ating country nationals or other local
labor are expected to consult with the
appropriate Mission Director, or such
official as he designates, concerning local
labor laws, regulations, and standards
with a view to adopting and demon-
strating good employment practices.
§ 7-12.102 Overtime, extra-pay shifts,
and multi-shift work.

§ 7-12.102-1 Definitions.
§ 7-12.102-1.50
§ 7-12.102-1.51

Additional definitions.
Compensatory time off.

"Compensatory time off" means leave equal to overtime worked, which, unless otherwise authorized in a contract or approved by a Contracting Officer, must be

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Most contracts covered by this regulation call for the performance of professional or technical services overseas on a cost-reimbursement basis. The compensation for employees performing such services is normally fixed on a monthly or annual basis, and the contracts usually state minimum work week hours. It is not expected that these employees will receive additional pay, overtime or shift premiums, or compensatory time off. When the Contracting Officer determines it is in the best interest of the Government, specific provision may be made in contracts to permit such benefits for non-technical and non-professional employees serving overseas, subject to approvals to be required in the contract. § 7-12.102-4 Approvals.

The heads of procuring activities and the chiefs of contract offices in AID/ Washington procuring activities may make the determinations referred to in FPR 1-12.102-4.

Location allowances at un

§ 7-12.105 favorable sites.

See AIDPR 7-15. § 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 Definitions.

§ 7-12.802 § 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).

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§ 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 predominant 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 Secretary 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.

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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

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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 "Security 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 Appropriation Act, 1964, the appropriation 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 construction 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

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