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resolve privately any such differences of opinion, and resume discussions with the contractor only when the AID position is consolidated. The AID individual designated to chair meeting with a contractor should be selected prior to the meeting with the contractor. Depending upon the issues to be discussed, whether primarily technical or primarily contractual, the chairman should be designated from either the technical office or the contracting office. (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) (49 FR 13286, Apr. 3, 1984, as amended at 50 FR 16088, Apr. 24, 1985)
APPENDIX C-LOGISTIC SUPPORT OVERSEAS TO AID-DIRECT CONTRACTORS
1. General (a) Purpose. In furtherance of AID's objectives to: (1) Increase the utilization of contractors in accordance with section 621 of the Foreign Assistance Act of 1961, as amended, (FAA), (2) reduce the administration burden on the AID establishment in Cooperating Countries, and (3) ensure, in accordance with section 636(h) of the FAA, that to the maximum extent possible local costs are met from Cooperating Country funds or United States (U.S.) Governmentowned local currency rather than from U.S. dollars, the following policies govern the financing and provision in kind of logistic support overseas to AID-direct contractors.
(b) Scope. “Logistic support overseas" means the financing of or furnishing to a contractor, its employees, and their dependents (in accordance with the provisions of the contract) items such as transportation of personnel, personal goods and commodities; quarters, furnishings, equipment, utilities, and supplies for residence and office; and maintenance and other supporting services, including medical facilities.
(ii) Cooperating Country-owned local cur. rency generated through AID or Pub. L. 480 programs; and
(iii) U.S. Government-owned country-use local currency generated through AID or Pub. L. 480 programs.
(2) Dollar financing. AID dollars are used to finance logistic support overseas only when no reasonable alternative exists by which such support can be financed with local currency provided in kind.
(b) Arrangements for logistics support. Each mission should assess the local logistical support situation and determine which method is best suited for its program or individual projects. While the following three options are listed in descending order of preference, the Mission is encouraged to use the option which is in the best interest of the project:
(1) Arrangements by the contractor itself where feasible and reasonably economical. (It is assumed that this test will be met in the case of virtually all construction contracts and in most of the larger engineering and technical assistance contracts.)
(2) Arrangements by the Cooperating Country where these would be timely, adequate, and feasible in terms of the country's economic and administrative resources.
(3) Arrangements by the Mission alone or jointly with either or both of the other parties, in those cases where the Mission Director determines that adequate and timely logistic support at reasonable cost cannot be assured through the other options. In such cases, and when direct-hire resources are inadequate, the Mission is encouraged wherever feasible, to contract for assistance in providing logistic support. Guidance on logistic support contracts should be obtained from SER/OP and GC.
(c) Medical facilities. AID and the Department of State have an agreement whereby the latter furnishes certain medical services, on an availability basis, to all eligible U.S. citizen contract personnel performing economic assistance functions abroad under the Foreign Assistance Act, and to their authorized dependents overseas with funding via Shared Administrative Support (SAS) Budgets. These services are provided at post to such personnel to the same extent as for AID direct-hire personnel. They are provided at no cost to the contractor or to the personnel. The medical services to be provided exclude: (1) Evacuation or hospitalization, and (2) entrance, in-service, fitness for duty, and separation medical examinations.
(1) Eligible personnel. (i) Eligible contractor personnel are those U.S. citizens serving abroad, and their authorized dependents, who are engaged under a contract between a contractor and AID or who are engaged under a subcontract thereto.
2. Policy (a) Financing of logistic support. (1) Local Currency Financing. Consistent with the requirements of AID Handbook 19, Financial Management, local currencies are to be used wherever feasible in lieu of dollars to defray the costs of contractor logistic support, whether such support is arranged for by the contractor, the Cooperating Country, or AID. Such local currencies will be contributed from the following sources in descending order of preference:
(i) The Cooperating Country's own budgetary or private resources;
2(b)(3) above, are made in writing by the responsible Assistant Administrator or his/ her designee for such purposes.
3. Contract Implementation Each PIO/T shall indicate on page 3 each type of logistic support which is to be made available, either in cash or in kind, by the Cooperating Country, the Mission, and the contractor itself. The contracting officer shall ensure that the contract reflects the information contained in the PIO/T.
(ii) Employees of other U.S. Government agencies serving under Participating Agency Service Agreement (PASA) with AID are also eligible pursuant to the terms of General Agreements between AID and their parent agencies.
(iii) U.S. citizens serving under Cooperating Country contracts financed from AID loan or grant funds are not "AID contractor employees” and thus not eligible, except with approval of the Ambassador. Third country national employees of AID contractors are not U.S. citizens and thus are not eligible, except with approval of the Ambassador. Americans serving under operational expert (OPEX) type contracts to which AID is not a signatory are also not "AID contractor employees.” Most OPEX employees are provided a lump-sum amount to finance their participation in a group health program in lieu of receiving any U.S. Government health services.
(iv) AID or other direct-hire U.S. Government employees working under formal detail to multilateral or other non-U.S. agencies obtain health services on the same basis as their non-U.S. co-workers unless the provisions governing detail of the U.S. employees specifically provide for their access to available U.S. Government facilities.
(v) It is recognized that emergency situations will arise involving OPEX or other Americans who are not “AID contractor personnel” as defined above. Such cases are to be handled by the Medical Officer or other post officials pursuant to their procedures for handling an emergency health problem of any non-official American requesting assistance.
(2) Services to be provided. Embassy physician, nurse, and health room services are provided in countries where and when these are available, including:
(i) Immunizations and preventive health measures;
(ii) Diagnostic examinations and advice;
(d) Other post privileges. Privileges such as the use of APO, PX's, commissaries, and officer's clubs are established at posts abroad pursuant to agreements between the U.S. and Cooperating Governments. Normally, these facilities are not available to contractor employees. However, in those cases where the facilities are open to contractor personnel, they may be used.
(e) Uniformity. Every effort should be made by each Mission to foster the development of country-wide standards for comparable classes of contractors. In all instances, logistic support is to be provided at the minimum level necessary to assure efficient, economical, and effective contractor performance.
(f) Exceptions. Exceptions from these policies, except as permitted by paragraph
4. Additional Instructions for Medical
Support (a) Notifications. (1) The AID contracting officer shall notify the contractor of any potentially available medical benefits prior to the execution of the contract.
(2) The Mission Executive Officer notifies the contractor's Chief of Party at the post of the locally available medical benefits.
(b) Identification of eligible persons. The Mission Executive Officer provides each eligible contractor employee and dependent with appropriate identification for use at Embassy medical facilities.
(c) Records and insurance. (1) The Embassy medical unit maintains an appropriate register of visits to the unit. The information recorded includes the name of the contractor employee or dependent treated, the contractor's name and contract number, date of visit, and a brief description of the reason for the visit (e.g., medical consultation, injury, medical briefing, immunization). Periodically a copy of this register is forwarded to the Mission Executive Officer.
(2) If medical service provided to a contractor employee or his/her authorized dependents by the Embassy medical unit is eligible for recovery from an insurance company, the contractor employee shall file an appropriate claim with the insurance company and so notify the Mission Executive Officer in writing. The contractor employee pursues the claim for reimbursement. Amounts recovered are forwarded to the Mission Executive Officer for the account of the medical unit in accordance with AID regulations. (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) (49 FR 13287, Apr. 3, 1984, as amended at 51 FR 20652, June 6, 1986)
APPENDIX D-DIRECT AID CONTRACTS
WITH U.S. CITIZENS OR U.S. RESI-
(6) “U.S. resident alien" means a non-U.S. citizen lawfully admitted for permanent residence in the United States.
(7) “Abroad” means outside the United States and its territories and possessions.
(8) “A.I.D. direct hire employees” means civilian employees appointed under A.I.D. Handbook 25 procedures.
2. Legal Basis (a) Section 635(b) of the Foreign Assistance Act of 1961, as amended (hereinafter referred to as the “FAA"), provides the Agency's basic contracting authority for nonpersonal services.
(b) Section 636(a)(3) of the FAA (22 U.S.C. 2396(a)(3)) authorizes the Agency to enter into personal services contracts with individuals for personal services abroad and provides further that such individuals" shall not be regarded as employees of the U.S. Government for the purpose of any law administered by the Civil Service Commission.”
1. General (a) Purpose. This appendix sets forth the authority, policy, and procedures under which AID contracts with U.S. citizens or U.S. resident aliens for personal services abroad.
(b) Definitions. For the purpose of this appendix:
(1) “Personal services contract (PSC)" means a contract which establishes an employer-employee relationship for the performance of services personally by the contractor. The services may include general continuing services as well as specifically identifiable tasks.
(2) “Employer-employee relationship" means an employment relationship in which the employer supervises or has the power to supervise the performance of the work including, for example, the manner in which the work is to be performed, the days of the week and hours of the day in which it is to be performed, and where the work is to be performed. Another indication of this relationship is the provision by the employer of workspace and basic tools and materials for use in accomplishing the work.
(3) "Non-personal services contract” means a contract which directly engages the time and effort of a contractor whose primary purpose is to perform an identifiable task and which establishes an independent contractor relationship between the contractor and the activity contracting for the services.
(4) "Independent contractor relationship" means a contract relationship in which the contractor is not subject to the supervision and control prevailing in relationships between the Government and its employees. Under these relationships, the Government does not normally supervise the performance of the work, the manner in which it is to be performed, the days of the week or hours of the day in which it is to be performed, or the location of performance.
(5) “Resident Hire” means a U.S. citizen who, at the time they are hired as a PSC, resides in the cooperating country (a) as a spouse or dependent of a U.S. citizen employed by a U.S. Government Agency or under any U.S. Government-financed contract or agreement, or (b) for reasons other than for employment with a U.S. Government Agency or under any U.S. Government-financed contract or agreement. A U.S. citizen for purposes of this definition also includes persons who at the time of contracting are lawfully admitted permanent residents of the United States.
3. Applicability (a) This appendix applies to all personal services contracts with U.S. citizens or U.S. resident aliens to provide assistance abroad under section 636(a)(3) of the FAA.
(b) This appendix does not apply to:
(1) Nonpersonal services contracts with U.S. citizens or U.S. resident aliens; such contracts are covered by the basic text of the FAR and the AIDAR.
(2) Personal services contracts with individual cooperating country nationals (CCNs) or third-country nationals (TCNS); such contracts are covered by Appendix J of this chapter.
(3) Other personal services arrangements covered by AID Handbook 25—Employment and Promotion.
(4) Interagency agreements (e.g., PASAs and RSSAs) covered by AID Handbook 12– Use of Federal Agencies.
4. Policy a. General. AID may finance, with either program or operating expense (OE) funds, the cost of personal services as part of the Agency's program of foreign assistance by entering into a direct contract with an individual U.S. citizen or U.S. resident alien for personal services abroad.
(1) Program funds. Program funds may be obligated for periods up to five years where necessary and appropriate to the accomplishment of the tasks involved.
(2) Operating expense funds. Operating funds may be obligated for periods not to exceed twenty-four months where necessary and appropriate to the accomplishment of the tasks involved.
1 The Civil Service Commission is now the Federal Office of Personnel Management.
(b) Limitations on personal services contracts.
(1) Personal services contracts may only be used when adequate supervision is available.
(2) Personal services contracts may be used for commercial activities. Commercial activities provide a product or service which could be obtained from a commercial source. See Attachment A of OMB Circular A-76 for a representative list of such activities.
(3) Personal services contracts may be used for Governmental functions (defined by OMB Circular A-76 as functions so intimately related to the public interest as to mandate performance by Government employees) except:
(i) Negotiating on behalf of the United States with foreign governments and public international organizations. Note: Negotiating on behalf of the United States with private individuals and entities is permitted.
(ii) Entering into any agreement (e.g., loan, grant, contract) on behalf of the United States.
(iii) Making decisions involving governmental functions such as planning, budget, programming and personnel selection. Seryices will be limited to making recommendations with final decision-making authority reserved for authorized AID direct-hire employees.
(iv) Supervision of AID direct-hire U.S. citizen employees.
(c) Withholdings and Fringe Benefits.
(1) Personal services contractors (PSCs) are Government employees and are therefore subject to social security (FICA) and Federal income tax (FIT) withholdings. As employees, they are ineligible for the "foreign earned inco! ae" exclusion under the IRS regulations (see 26 CFR 1.911-3(c)(3)).
(2) Personal Services Contractors are treated on par with other Government employees, except for programs based on any law administered by the Federal Office of Personnel Management (e.g., incentive awards, life insurance, health insurance, and retirement programs covered by 5 CFR Parts 530, 531, 831, 870, 871, and 890). While PSCs are ineligible to participate in any of these programs, the following fringe benefits are provided as a matter of policy:
(i) The employer's FICA contribution for retirement purposes;
(ii) A contribution against the actual costs of the PSC's annual health insurance costs. Such contribution: (1) Shall not exceed 50% of the actual costs of the PSC's annual health insurance and (2) shall not exceed the maximum U.S. Government contribution for direct-hire personnel as announced annually by the Office of Personnel Management.
(iii) A maximum contribution of up to 50% against the actual costs of the PSC's annual life insurance costs, not to exceed $500.00 per year.
(iv) PSCs shall receive the same percentage pay comparability adjustment as U.S. Government employees;
(v) PSCs shall receive the following allowances and differentials provided in the State Department's Standardized Regulations (Government Civilians Foreign Areas) on the same basis as direct hire U.S. Government employees (except for resident hires, see paragraph 4(g) and section 11, General Provisions, Definitions Clause 26, “Resident Hire Personal Services Contractors");
(A) Temporary lodging allowance (Section 120),
(B) Living quarters allowance (Section 130),2
(C) Post allowance (Section 220), 2
(D) Supplemental post allowance (Section 230),2
(E) Separate maintenance allowance (Section 260), 3
(F) Education allowance (Section 270), 3
(I) Payments during evacuation/authorized departure (Section 600), and
(J) Danger pay (Section 650). Any allowance or differential that is not expressly stated in this paragraph is not authorized for any PSC;
(vi) PSCs and their authorized dependents may be entitled to health room services of the same type that are normally provided to AID direct-hire U.S. citizen employees. See General Provision entitled “Post of Assignment Privileges."
(vii) PSCs are eligible to receive benefits for injury, disability, or death under the Federal Employees' Compensation Act since the law is administered by the Department of Labor, not the Office of Personnel Man. agement.
(viii) PSCs are eligible to earn four hours of annual leave and four hours of sick leave for each two week period. However, PSCS with previous PSC service (not previous U.S. Government civilian or military service) earn either six hours of annual leave for each two week period if their previous PSC service exceeds 3 years, or eight hours of annual leave for each two week period if their previous PSC service exceeds 15 years.
(d) A PSC who is a spouse of current or retired Civil Service, Foreign Service, or Military Service member and who is covered by their spouse's Government health or life in
2 Mission Directors may authorize per diem in lieu of these allowances.
3 These allowances are not authorized for short tours (i.e., less than a year).
Director, as provided for in Appendix G of this chapter.
(g) Resident Hire Personal Services Contractors.
Resident hire PSCs are not eligible for any fringe benefits (except contribi ns for FICA, health insurance, and life insurance), including differentials and allowances, unless such individuals can demonstrate to the satisfaction of the contracting officer that they have received similar benefits and allowances from their immediately previous employer in the cooperating country or the Mission Director may determine that payment of such benefits would be consistent with the Mission's policy and practice and would be in the best interests of the U.S. Government.
surance policy is ineligible for the contribution under paragraph 4(c)(2)(ii) or (2) (iii) of this appendix.
(e) Retired U.S. Government employees may be awarded personal services contracts without any reduction in or offset against their Government annuity.
(f) Salary Setting.
(1) Salaries for personal services contractors shall be based on the salary established for the position being recruited for or the PSC's current earnings (as adjusted under (f)(2) and (f)(3) below), except as provided in paragraphs (f)(4) through (f)(7) below. Current earnings must be certified by the contractor on the SF 171, “Personal Qualifications Statement” (see paragraph 6(b)(3) of this appendix); the form must be retained in the permanent contract file.
(2) As a rule, up to a 3 percent increase above current earnings may be given. However, a 3 percent increase is awarded only to a PSC whose earnings are based on a period of twelve months or more; 2 percent for established earnings of less than twelve months but not less than four months; or 1 percent for established earnings during the past four months.
(3) Additional percentages may be given for the following factors. If a PSC has worked in a developing country for more than two years, an additional 1 percent is awarded. Education related to the area of specialization and above the minimum qualification required warrants an additional 1 percent, and those specialties for which there is keen competition in the employment market or a serious shortage category nationwide are awarded an additional 2 percent. In addition, related technical experience over 5 years increases the percentage by 1 and over ten years by 3.
(4) When an applicant has no current earnings history (e.g., a person returning to the workforce after an absence of a number of years) or when an applicant's current earnings history doesn't accurately reflect the applicant's job market worth (e.g., a Peace Corps volunteer), the salary set for the position should be used, notwithstanding the lack of a current earnings history, provided that the applicant has the full qualifications for the job and could command a similar salary in the open job market.
(5) All requests for an initial rate of pay above 10 percent over current earnings must be approved in writing by the appropriate Regional Assistant Administrator or Mission Director. Current earnings are actual earnings for work reasonably related to the position for which the applicant is being considered.
(6) Salaries in excess of the FS-1 level must also be approved by the appropriate Regional Assistant Administrator or Mission
5. Soliciting for Personal Services Contracts
(a) Project Officer's responsibilities. The Project Officer will prepare a written detailed statement of duties and a statement of minimum qualifications to cover the position being recruited for. The statement shall be included in the procurement request (e.g., A.I.D. Form 1350-1, Project Implementation Order/Technical Services (PIO/T)); the request shall also include the following additional information as a minimum:
(1) The specific foreign location(s) where the work is to be performed, including any travel requirements (with an estimate of frequency);
(2) The length of the contract, with beginning and ending dates, plus any options for renewal or extension;
(3) The basic education, training, experience, and skills required for the position;
(4) An estimate of what a comparable GS/ FS position should cost, including basic salary, allowances, and differentials, if appropriate;
(5) A list of Government or host country furnished items (e.g., housing); and
(6) If the PSC will be providing consulting services, include the justification required by AIDAR 737.270(b).
(b) Contracting Officer's Responsibilities.
(1) The Contracting Officer will prepare the solicitation for personal services which shall contain:
(i) Three sets of SF 171s and 171As. (Upon receipt, one copy of each 171 and 171A shall be forwarded to the Project Officer.)
(ii) A detailed statement of duties or a completed position description for the position being recruited for.
(iii) A copy of the prescribed contract Cover Page, Contract Schedule, General Provisions and Additional General Provisions, if applicable, as well as the FAR clauses to be incorporated by reference.