**USAID Acquisition Regulation (AIDAR), Mandatory Reference to ADS 302 -
Direct Contracting - This version incorporates changes from AIDAR
Circular 00-1 and is effective on July 10, 2000.**

**STRUCTURE OF THE AIDAR TO THE SUBPART LEVEL**

## 48 CFR CHAPTER 7

## SUBCHAPTER A - GENERAL

#### PART 701 \-- FEDERAL ACQUISITION REGULATION SYSTEM

**701.1** Purpose, Authority, Issuance

**701.3** U.S. Agency for International Development Acquisition
Regulation

**701.4** Deviations from the FAR or AIDAR

**701.6** Career Development, Contracting Authority, and
Responsibilities

**701.7** Determinations and Findings

**PART 702 \-- DEFINITIONS OF WORDS AND TERMS**

**702.170** Definitions

**702.270** Definitions Clause

**PART 703 \-- IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF
INTEREST**

**703.1** Safeguards

**PART 704 \-- ADMINISTRATIVE MATTERS**

**704.4** Safeguarding Classified Information Within Industry

**704.8** Contract Files

### AIDAR SUBCHAPTER B \-- ACQUISITION PLANNING

**PART 705 \-- PUBLICIZING CONTRACT ACTIONS**

**705.2** Synopsis of Proposed Contract Actions

**705.5** Paid Advertisement

**PART 706 \-- COMPETITION REQUIREMENTS**

**Subparts 706.1 - 706.2 \[Reserved\]**

**706.3** Other Than Full and Open Competition

**706.5** Competition Advocates

**PART 707 \-- ACQUISITION PLANNING**

**707.1** Acquisition Plans \[Reserved\]

**PART 709 \-- CONTRACTOR QUALIFICATIONS**

**709.4** Debarment, Suspension and Ineligibility

**709.5** Organizational Conflicts of Interest

**PART 711 \-- DESCRIBING AGENCY NEEDS**

### SUBCHAPTER C \-- CONTRACTING METHODS AND CONTRACT TYPES

**PART 713 \-- SIMPLIFIED ACQUISITION PROCEDURES**

**713.1** General

**PART 714 \-- SEALED BIDDING**

**714.4** Opening of Bids and Award of Contract

**PART 715 \-- CONTRACTING BY NEGOTIATION**

**715.3** Source Selection

**715.6** Unsolicited Proposals

**PART 716 \-- TYPES OF CONTRACTS**

**716.3** Cost-Reimbursement Contracts

**716.4** Incentive Contracts

**716.5** \[Reserved\]

**PART 717 \-- SPECIAL CONTRACTING METHODS**

**717.70** Pharmaceutical Products

##### AIDAR SUBCHAPTER D \-- SOCIOECONOMIC PROGRAMS

**PART 719 \-- SMALL BUSINESS PROGRAMS**

**719.2** Policies

**PART 722 \-- APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITION**

**722.1** Basic Labor Policies

**722.8** Equal Employment Opportunity

**PART 724 \-- PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION**

**724.2** Freedom of Information Act

**PART 725 \-- FOREIGN ACQUISITION**

**725.1** Buy American Act - Supplies

**725.4** Trade Agreements

**725.70** Source, Origin, and Nationality

**PART 726 \-- OTHER SOCIOECONOMIC PROGRAMS**

**726.70** Disadvantaged Enterprises Program

**726.71** Relocation of U.S. Businesses, Assistance to Export
Processing Zones, Internationally Recognized Workers\' Rights

### AIDAR SUBCHAPTER E \-- GENERAL CONTRACTING REQUIREMENTS

**PART 728 \-- BONDS AND INSURANCE**

**728.1** Bonds

**728.3** Insurance

**PART 731 \-- CONTRACT COST PRINCIPLES AND PROCEDURES**

**731.1** Applicability

**731.2** Contracts with Commercial Organizations

**731.3** Contracts with Educational Institutions

**731.7** Contracts with Nonprofit Organizations

**PART 732 \-- CONTRACT FINANCING**

**732.1** General

**732.4** Advance Payments

**PART 733 \-- PROTESTS, DISPUTES AND APPEALS**

**733.1** Protests

**733.72** USAID Procedures for Disputes and Appeals

### AIDAR SUBCHAPTER F \-- SPECIAL CATEGORIES OF CONTRACTING

**PART 734 \-- MAJOR SYSTEM ACQUISITION**

**PART 736 \-- CONSTRUCTION AND ARCHITECT - ENGINEER CONTRACTS**

**736.6** Architect - Engineer Services

### AIDAR SUBCHAPTER G \--CONTRACT MANAGEMENT

**PART 742 \-- CONTRACT ADMINISTRATION**

**742.7** Indirect Cost Rates

**\*742.15 Contractor Performance Information**

**PART 745 \-- GOVERNMENT PROPERTY**

**745.1** General

**PART 747 \-- TRANSPORTATION**

**747.5** Ocean Transportation by U.S.-Flag Vessels

**PART 749 \-- TERMINATION OF CONTRACTS**

**749.1** General Principles

**PART 750 \-- EXTRAORDINARY CONTRACTUAL ACTIONS**

**750.000** Scope of part.

**750.70** \[RESERVED\]

**750.71** Extraordinary Contractual Actions to Protect Foreign Policy
Interests of the United States

### AIDAR SUBCHAPTER H \-- CLAUSES AND FORMS

**PART 752 \-- SOLICITATION PROVISIONS AND CONTRACT CLAUSES**

**752.2** Texts of Provisions and Clauses

**752.70** Texts of USAID Contract Clauses

###### APPENDICES

**Appendix D:** Direct USAID Contracts With U.S. Citizens or U.S.
Residents for Personal Services Abroad.

**Appendix F:** Use of Collaborative Assistance Method for Title XII
Activities.

**Appendix I:** USAID\'s Academic Publication Policy.

**Appendix J:** Direct USAID Contracts With Cooperating Country
Nationals and With Third Country Nationals for Personal Services Abroad

####### SUBCHAPTER A - GENERAL

**PART 701**

**FEDERAL ACQUISITION REGULATION SYSTEM**

**TABLE OF CONTENTS**

**SUBPART 701.1 \-- PURPOSE, AUTHORITY, ISSUANCE**

**701.105 \-- OMB approval under the Paperwork Reduction Act.**

**SUBPART 701.3 \-- U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT
ACQUISITION REGULATION**

**701.301** Policy.

**701.303** Publication and Codification.

**SUBPART 701.4 \-- DEVIATIONS FROM THE FAR OR AIDAR**

**701.402** Policy.

**701.470** Procedure.

**SUBPART 701.6 \-- CAREER DEVELOPMENT, CONTRACTING AUTHORITY AND
RESPONSIBILITIES**

**701.601** General.

**701.602-3** Ratification of unauthorized commitments.

**701.603** Selection, appointment and termination of appointment.

**701.603-70** Designation of contracting officers.

**SUBPART 701.7 \-- DETERMINATIONS AND FINDINGS**

**701.704** Content.

**701.707** Signatory authority.

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.

## PART 701 \-- FEDERAL ACQUISITION REGULATION SYSTEM

## SUBPART 701.1 \-- PURPOSE, AUTHORITY, ISSUANCE

**701.105** OMB approval under the Paperwork Reduction Act.

\(a\) The following information collection and record keeping
requirements established by USAID have been approved by OMB, and
assigned an OMB control number and approval/expiration dates as
specified below:

+------------------+---------------+------------------+----------------+
| AIDAR Segment    | OMB Control   | Expiration Date  | Burden Hours   |
|                  | Number        |                  | Per Report     |
+------------------+---------------+------------------+----------------+
| > 733.7003(c)    | > 0412-0520   | > 08/31/2000     | > 40           |
+------------------+---------------+------------------+----------------+
| > 752.209-70     | > 0412-0520   | > 08/31/2000     | > 4            |
+------------------+---------------+------------------+----------------+
| > 752.219-8      | > 0412-0520   | > 08/31/2000     | > 1            |
+------------------+---------------+------------------+----------------+
| > 752.245-70     | > 0412-0520   | > 08/31/2000     | > .5           |
+------------------+---------------+------------------+----------------+
| > 752.245-71     | > 0412-0520   | > 08/31/2000     | > 1            |
+------------------+---------------+------------------+----------------+
| > 752.7001(a)    | > 0412-0520   | > 08/31/2000     | > .5           |
+------------------+---------------+------------------+----------------+
| > 752.7001(b)    | > 0412-0520   | > 08/31/2000     | > .5           |
+------------------+---------------+------------------+----------------+
| > 752.7002(j)    | > 0412-0520   | > 08/31/2000     | > 1            |
+------------------+---------------+------------------+----------------+
| > 752.7003       | > 0412-0520   | > 08/31/2000     | > 8            |
+------------------+---------------+------------------+----------------+
| > 752.7004(b)(4) | > 0412-0520   | > 08/31/2000     | > .5           |
+------------------+---------------+------------------+----------------+
| > 752.7032       | > 0412-0520   | > 08/31/2000     | > 2            |
+------------------+---------------+------------------+----------------+
| > 752.7033       | > 0412-0536   | > 08/31/2000     | > 4            |
+------------------+---------------+------------------+----------------+

\(b\) The information requested by the AIDAR sections listed in
paragraph (a) is necessary to allow USAID to prudently administer public
funds. It lets USAID make reasonable assessments of contractor
capabilities and responsibility of costs. Information is required in
order for a contractor and/or its employee to obtain a benefit-usually
taking the form of payment under a government contract.

\(c\) Public reporting burden for these collections of information is
estimated as shown in paragraph (a) of this section. The estimated
burden includes the time for reviewing instructions, searching existing
data sources, gathering and maintaining the data needed, and completing
and reviewing the collection of information. Send comments regarding the
burden estimates or any other aspects of these collections of
information, including suggestions for reducing the burden, to:

U.S. Agency for International Development (USAID),

Office of Procurement,

Policy Division (M/OP/P),

Room 7.08-082U,

1300 Pennsylvania Avenue, N.W.

Washington, D.C. 20523-7801;

and

Office of Management and Budget, OMB,

Paperwork Reduction Project (0412-0520),

Washington, D.C. 20503.

SUBPART 701.3 \-- AGENCY FOR INTERNATIONAL DEVELOPMENT ACQUISITION
REGULATION

**701.301** Policy

\(a\) Responsibility. Subject to the direction of the Administrator, the
Director, Office of Procurement (M/OP), is responsible for:

\(1\) Developing and maintaining necessary uniform procurement policies,
procedures, and standards;

\(2\) Providing assistance to the contracting activities as appropriate;

\(3\) Keeping the Administrator and Executive Staff fully informed on
procurement matters which should be brought to their attention; and

\(4\) All agency head duties and authorities stated in (48 CFR) FAR
Subpart 1.3, in accordance with (48 CFR) AIDAR 701.601. These
responsibilities include but are not limited to developing, issuing, and
maintaining the USAID Acquisition Regulation (\"AIDAR\", 48 CFR Chapter
7), USAID\'s supplement to the Federal Acquisition Regulation (48 CFR
Ch. 1), in coordination with the General Counsel and such other offices
as may be appropriate.

\(b\) Applicability. (1) Unless a deviation is specifically authorized
in accordance with Subpart 701.4, or unless otherwise provided, the FAR
and AIDAR apply to all contracts (regardless of currency of payment, or
whether funds are appropriated or non-appropriated) to which USAID is a
direct party.

\(2\) At Missions where joint administrative services are arranged,
procuring offices may apply the Department of State Acquisition
Regulation for all administrative and technical support contracts except
in defined areas. The Office of Administrative Services will furnish the
defined areas and administrative guidelines for procurement to the
overseas Missions. Administrative and local support services include the
procurement accountability, maintenance and disposal of all office and
residential equipment and furnishings, vehicles and expendable supplies
purchased with administrative and/or technical support funds, either
dollars or local currency.

**701.303** Publication and Codification.

\(a\) The AIDAR is USAID\'s Acquisition Regulation supplementing the FAR
(48 CFR Chapter 1) and is published as Chapter 7 of Title 48, Code of
Federal Regulations. AIDAR Circulars shall be used to promulgate changes
to the AIDAR and shall be published in compliance with (48 CFR) FAR Part
1.

\(b\) Appendices. Significant procurement policies and procedures that
do not correspond to or conveniently fit into the FAR system described
in FAR 1.1 and 1.303 may be published as Appendices to the AIDAR.
Appendices follow the main text of the AIDAR in a section entitled
"Appendices to Chapter 7" and contain a table of contents and the
individual appendices identified by letter and subject title (e.g.,
"Appendix D \-- Direct USAID Contracts with a U.S. Citizen or a U.S.
Resident Alien for Personal Services Abroad").

\(c\) Only the M/OP Director has the authority to issue internal agency
guidance applicable to all agency contracts. The heads of the various
USAID contracting activities (see Subparts 701.6 and 702.10) may issue
operating instructions and procedures consistent with the FAR, AIDAR,
and other Agency regulations, policies, and procedures for application
within their organizations. One copy of each such issuance shall be
forwarded to the Office of Procurement, Policy Division (M/OP/POL).
Insofar as possible, such material will be numerically keyed to the
AIDAR.

**SUBPART 701.4 \-- DEVIATIONS FROM THE FAR OR AIDAR**

**701.402** Policy.

It is the policy of USAID that deviation from the mandatory requirements
of the FAR and AIDAR shall be kept at a minimum and be granted only if
it is essential to effect necessary procurement and when special and
exceptional circumstances make such deviation clearly in the best
interest of the Government.

**701.470** Procedure.

\(a\) Deviation from the FAR or AIDAR affecting one contract or
transaction.

\(1\) Deviations which affect only one contract or procurement will be
made only after prior approval by the head of the contracting activity.
Deviation requests containing the information listed in paragraph (c) of
this section shall be submitted sufficiently in advance of the effective
date of such deviation to allow adequate time for consideration and
evaluation by the head of the contracting activity.

\(2\) Requests for such deviations may be initiated by the responsible
USAID contracting officer who shall obtain clearance and approvals as
may be required by the head of the contracting activity. Prior to
submission of the deviation request to the head of the contracting
activity for approval, the contracting officer shall obtain written
comments from the Office of Procurement, Policy Division (M/OP/P),
hereinafter referred to as "M/OP/P". The M/OP/P shall normally be
allowed 10 working days prior to the submission of the deviation request
to the head of the contracting activity to review the request and to
submit comments. If the exigency of the situation requires more
immediate action, the requesting office may arrange with the M/OP/P for
a shorter review period. In addition to a copy of the deviation request,
the M/OP/P shall be furnished any background or historical data which
will contribute to a more complete understanding of the deviation. The
comments of the M/OP/P shall be made a part of the deviation request
file which is forwarded to the head of the contracting activity.

\(3\) Coordination with the Office of General Counsel, as appropriate,
should also be effected prior to approval of a deviation by the head of
the contracting activity.

\(b\) Class deviations from the FAR or AIDAR: Class deviations are those
which affect more than one contract or contractor.

\(1\) Class deviations from the AIDAR will be processed in the same
manner as prescribed in paragraph (a) of this section. Individual heads
of contracting activities have authority to approve class deviations
affecting only contracts within their own contracting activities, except
that the Director, M/OP, has authority to approve class deviations that
affect more than one contracting activity.

\(2\) Class deviations from the FAR shall be considered jointly by USAID
and the Chairperson of the Civilian Agency Acquisition Council
(C/CAAC)(FAR 1.404) unless, in the judgment of the head of the
contracting activity, after due consideration of the objective of
uniformity, circumstances preclude such consultation. The head of the
contracting activity shall certify on the face of the deviation the
reason for not coordinating with the C/CAAC. In such cases, M/OP/P shall
be responsible for notifying the C/CAAC of the class deviation.

\(3\) Class deviations from the FAR shall be processed as follows:

\(i\) The request shall be processed in the same manner as paragraph (a)
of this section, except that M/OP/P shall be allowed 15 working days
prior to the submission of the deviation request to the head of the
contracting activity to effect the necessary coordination with the
C/CAAC and to submit comments. If the exigency of the situation requires
more immediate action, the requesting office may arrange with M/OP/P for
a shorter review and coordination period. The comments of the C/CAAC and
M/OP/P shall be made a part of the deviation request file which is
forwarded to the head of the contracting activity.

\(ii\) The request shall be processed in the same manner as paragraph
(a) of this section if the request is not being jointly considered by
USAID and the C/CAAC.

\(4\) Deviations involving basic agreements or other master type
contracts are considered to involve more than one contract.

\(5\) Unless the approval is sooner rescinded, class deviations shall
expire 2 years from the date of approval provided that deviation
authority shall continue to apply to contracts or task orders which are
active at the time the class deviation expires. Authority to continue
the use of such deviation beyond 2 years may be requested in accordance
with the procedures prescribed in paragraph (a) of this section.

\(6\) Expiration dates shall be shown on all class deviations.

\(c\) Requests for deviation shall contain a complete description of the
deviation, the effective date of the deviation, the circumstances in
which the deviation will be used, a specific reference to the regulation
being deviated from, an indication as to whether any identical or
similar deviations have been approved in the past, a complete
justification of the deviation including any added or decreased cost to
the Government, the name of the contractor, and the contract or task
order number.

\(d\) Register of deviations: Separate registers shall be maintained by
the procuring activities of the deviations granted from the FAR and
AIDAR. Each deviation shall be recorded in its appropriate register and
shall be assigned a control number as follows: the symbol of the
procuring activity, the abbreviation "DEV", the fiscal year, the serial
number \[issued in consecutive order during each fiscal year\] assigned
to the particular deviation and the suffix "c" if it is a class
deviation, e.g. CM-DEV-85-1, CM-DEV-85-2c. The control number shall be
embodied in the document authorizing the deviation and shall be cited in
all references to the deviation.

\(e\) Central record of deviations: Copies of approved deviations shall
be furnished promptly to M/OP/P which shall be responsible for
maintaining a central record of all deviations that are granted.

\(f\) Semiannual report of class deviations:

\(1\) USAID contracting officers shall submit a semiannual report to the
M/OP/P of all contract actions effected under class deviations to the
FAR and AIDAR which have been approved pursuant to paragraph (b) of this
section.

\(2\) The report shall contain the applicable deviation control number,
the contractor's name, contract number and task order number (if
appropriate).

\(3\) The report shall cover the 6-month periods ending June 30 and
December 31, respectively, and shall be submitted within 20 working days
after the end of the reporting period.

SUBPART 701.6 \-- CAREER DEVELOPMENT, CONTRACTING AUTHORITY AND
RESPONSIBILITIES

**701.601** General.

\(a\) (1) Pursuant to the delegations in ADS 103.5.10, the M/OP Director
is authorized to act as the Head of the Agency for all purposes
described in the Federal Acquisition Regulation (FAR, 48 CFR Ch. 1),
except for the authority in (48 CFR) FAR sections 6.302-7(a)(2),
6.302-7(c)(1), 17.602(a), 19.201(c), 27.306(a), 27.306(b), and 30.201-5,
or where the "head of the agency" authority is expressly not delegable
under the FAR or AIDAR. Further, the M/OP Director is responsible for
implementing the procurement related aspects of the Foreign Assistance
Act, Executive Order 11223, the Office of Federal Procurement Policy
Act, and other statutory and Executive Branch Procurement policies and
requirements applicable to USAID operations, except for those
authorities and responsibilities delegated to the Procurement Executive
as specified in ADS 103.5.10f.

\(2\) The M/OP Director has specific authority to:

\(i\) Select and appoint contracting officers and terminate their
appointments in accordance with Section 1.603 of the Federal Acquisition
Regulation; and

\(ii\) Exercise in person or by delegation the authorities stated in
Subpart 1.4 of the Federal Acquisition Regulation with regard to
deviations from that regulation.

\(b\) The authority of heads of contracting activities to execute
contracts is limited as follows:

\(1\) Director, Office of U.S. Foreign Disaster Assistance. Authority to
execute contracts for disaster relief purposes during the first 72 hours
of a disaster in a cumulative total amount not to exceed \$500,000.
Authority to execute simplified acquisitions up to \$50,000 at any time.
May issue warrants for simplified acquisitions up to \$50,000 to
qualified individuals on his or her staff.

\(2\) Director, Center for Human Capacity Development (G/HCD). Authority
to execute simplified acquisitions up to \$10,000. Unlimited authority
for procuring participant training based on published catalog prices,
using M/OP/E approved forms. May issue warrants for simplified
acquisitions up to \$10,000 to qualified individuals on his or her
staff.

\(3\) Overseas heads of contracting activities. Authority to sign
contracts where the cumulative amount of the contract, as amended, does
not exceed \$250,000 (or local currency equivalent) for personal
services contracts or \$100,000 (or local currency equivalent) for all
other contracts. May issue warrants for simplified acquisitions up to
\$50,000 to qualified individuals on his or her staff.

**701.602-1** Authority of contracting officers in resolving audit
recommendations.

With the exception of termination settlements subject to Part 749,
Termination of Contracts, contracting officers shall have the authority
to negotiate and enter into settlements with contractors for costs
questioned under audit reports, or to issue a contracting officer's
final decision pursuant to the disputes clause (in the event that
questioned costs are not settled by negotiated agreement) in accordance
with ADS Chapter 591.5.20. The negotiated settlement or final decision
shall be final, subject only to a contractor's appeal, either under the
provisions of the Contract Disputes Act of 1978, as amended (41 U.S.C.
601-613), or to the courts. Policies and procedures for resolving audit
recommendations are in accordance with ADS Chapters 591 and 592.

**701.602-3** Ratification of unauthorized commitments.

\(a\) \[Reserved\]

\(b\) Policy.

\(1\) \[Reserved\]

\(2\) In order to maintain management oversight and controls on
unauthorized commitments, authority to ratify unauthorized commitments
within USAID is reserved to the M/OP Director.

**701.603** Selection, appointment, and termination of appointment.

**701.603-70** Designation of contracting officers

A contracting officer represents the U.S. Government through the
exercise of his/her delegated authority to negotiate, sign, and
administer contracts on behalf of the U.S. Government. The contracting
officer's duties are sensitive, specialized, and responsible. In order
to insure proper accountability, and to preclude possible security,
conflict of interest, or jurisdiction problems, it is USAID policy that
USAID contracting officers must be U.S. citizen direct-hire employees of
the U.S. Government.

######## SUBPART 701.7 \-- DETERMINATIONS AND FINDINGS

**701.704** Content.

There is no USAID-prescribed format or form for determinations and
findings (D&Fs). D&Fs are to contain the information specified in FAR
1.704 and any information which may be required by the FAR or AIDAR
section under which the D&F is issued.

**701.707** Signatory authority.

Unless otherwise specified in the FAR or AIDAR section under which the
D&F is issued, the Contracting Officer is the signing official.

######## PART 702 \-- DEFINITIONS OF WORDS AND TERMS

**TABLE OF CONTENTS**

**SUBPART 702.170 \-- DEFINITIONS**

**702.170-1** USAID

**702.170-2** Administrator.

**702.170-3** Contracting activities.

**702.170-4** Cooperating country

**702.170-5** Cooperating country national (CCN).

**702-170-6** Executive agency.

**702.170-7** Foreign Assistance Act.

**702.170-8** Government, Federal, State, local and political
Subdivisions.

**702.170-9** Head of the agency.

**702.170-10** Head of the contracting activity.

**702.170-11** Mission.

**702.170-12** Overseas.

**702.170-13** Procurement Executive.

**702.170-14** \[reserved\]

**702.170-15** Third country national (TCN).

**702.170-16** U.S. national (USN).

**SUBPART 702.270 \-- DEFINITIONS CLAUSE**

**702.270-1** Definitions clause.

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.

######## SUBPART 702.170 \-- DEFINITIONS

**702.170-1** USAID.

"USAID" means the U.S. Agency for International Development and its
predecessor agencies, including the International Cooperation
Administration (ICA).

**702.170-2** Administrator.

"Administrator" means the Administrator or Deputy Administrator of the
U.S. Agency for International Development.

**702.170-3** Contracting activities.

The contracting activities within USAID are:

\(a\) The USAID Washington activities. The contracting activities
located in Washington are the Office of Procurement, Office of Foreign
Disaster Assistance, and Center for Human Capacity Development (G/HCD).
Subject to the limitations stated in 702.170-10, these contracting
activities are responsible for procurement related to programs and
activities for their areas. The Office of Procurement is responsible for
procurements which do not fall within the responsibility of other
contracting activities, or which are otherwise assigned to it.

\(b\) The overseas field contracting activities. Each USAID Mission or
post overseas is a contracting activity, responsible for procurement
related to its programs and activities, subject to the limitations in
702.170-10(b), which sets forth the contracting authority for Mission
Directors and principal USAID officers at posts.

**702.170-4** Cooperating country.

"Cooperating country" means a foreign country in which there is a
program or activity administered by USAID.

**702.170-5** Cooperating country national (CCN).

"Cooperating country national (CCN)" means an individual who is a
cooperating country citizen or a non-cooperating country citizen
lawfully admitted for permanent residence in the cooperating country.

**702.170-6** Executive Agency.

"Executive agency" includes the U.S. Agency for International
Development (USAID) and its predecessor agencies, including the
International Cooperation Administration.

**702.170-7** Foreign Assistance Act.

"Foreign Assistance Act" means the Foreign Assistance Act of 1961, as
amended (22 U.S.C., Chapter 32).

**702.170-8** Government, Federal, State, local and political
subdivisions.

As used in the FAR and AIDAR, these terms do not refer to foreign
entities except as otherwise stated.

**702.170-9** Head of the agency.

"Head of the agency" means, for USAID, the Administrator, and the
Deputy Administrator, and in accordance with the responsibilities and
limitation set forth in 701.601(a)(1), the M/OP Director.

**702.170-10** Head of the contracting activity.

\(a\) The heads of USAID contracting activities are listed below. The
limits of their contracting authority are set forth in 701.601.

\(1\) USAID/Washington Heads of Contracting Activities:

\(i\) Director, Office of Procurement;

\(ii\) Director, Office of U.S. Foreign Disaster Assistance;

\(iii\) Director, Center for Human Capacity Development (G/HCD).

\(2\) Overseas Heads of Contracting Activities: Each Mission Director or
principal USAID officer at post (e.g. USAID Representative, USAID
Affairs Officer, etc.).

\(b\) Individuals serving in the positions listed in (a)(1) and (a)(2)
in this section in an "Acting" capacity may exercise the authority
delegated to that position.

**702.170-11** Mission.

"Mission" means the USAID mission or the principal USAID office or
representative (including an embassy designated to so act) in a foreign
country in which there is a program or activity administered by USAID.

**702.170-12** Overseas.

> "Overseas" means outside the United States, its possessions, and

Puerto Rico.

**702.170-13** Procurement Executive.

\"Procurement Executive\" is synonymous with \"Senior Procurement
Executive\" as defined in FAR 2.101 and means the USAID official who is
responsible for the management direction of USAID\'s assistance and
acquisition (\"A&A\") system, as so delegated and more fully described
in ADS 103.5.10f.

**702.170-14** \[reserved\]

**\
702.170-15** Third country national (TCN).

"Third country national (TCN)" means an individual who is neither a
cooperating country national nor a U.S. national, but is a citizen of a
country included in Geographic Code 935 (see 22 CFR 228.3).

**702.170-16** U.S. national (USN).

"U.S. national (USN)" means an individual who is a U.S. citizen or a
non-U.S. citizen lawfully admitted for permanent residence in the
United States.

**702.170-17** Automated Directives System.

The "Automated Directives System" ("ADS") sets forth the Agency\'s
policies and essential procedures, as well as supplementary
informational references. It contains six functional series, interim
policy updates, valid USAID Handbook chapters, a resource library, and a
glossary. References to "ADS" throughout this chapter 7 are references
to the Automated Directives System. Procurement-related sections of this
system are accessible to the general public at the following internet
address: http://www.info.usaid.gov/pubs/ads. The entire ADS is available
on the ADS Compact Disk (ADS CD), which may be purchased from the Agency
at cost by submitting a completed ADS CD order form. To request a fax
copy of the ADS CD order form, send an e-mail with your fax number to
ADS@USAID.GOV.

**SUBPART 702.270 \-- DEFINITIONS CLAUSE**

**702.270-1** Definitions clause.

Use the appropriate clause in subsection 752.202-1, in addition to the
clause in FAR 52.202-1.

**PART 703 \-- IMPROPER BUSINESS PRACTICES AND\
PERSONAL CONFLICTS OF INTEREST**

**TABLE OF CONTENTS**

**SUBPART 703.1 \-- SAFEGUARDS**

**703.104-5** Disclosure, protection, and marketing of propriety and
source selection information.

**703.104-10** Violations or possible violations

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.

PART 703 \-- IMPROPER BUSINESS PRACTICES AND\
PERSONAL CONFLICTS OF INTEREST

######## SUBPART 703.1 \-- SAFEGUARDS

**703.104-5** Disclosure, protection, and marking of proprietary and
source selection information.

A Contracting Officer may authorize release of proprietary and/or source
selection information outside the government for evaluation purposes
pursuant to FAR 15.305(c) and (AIDAR) 48 CFR 715.305(c).

**703.104-10** Violations or possible violations

Requests for concurrence under paragraph (a)(1) of FAR 3.104-10 shall be
forwarded to one level above the Contracting Officer.

######## PART 704 \-- ADMINISTRATIVE MATTERS

**TABLE OF CONTENTS**

**SUBPART 704.4 \-- SAFEGUARDING CLASSIFIED INFORMATION WITHIN
INDUSTRY**

**704.404** Contract clause.

**SUBPART 704.8 \-- CONTRACT FILES**

**704.803** Contents of contract files.

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.

**PART 704 \-- ADMINISTRATIVE MATTERS**

[**See also CIB 90-12, Contract
Close-outs**](http://www.usaid.gov/procurement_bus_opp/procurement/cib/)

**SUBPART 704.4 \-- SAFEGUARDING CLASSIFIED INFORMATION WITHIN
INDUSTRY**

**704.404** Contract clause.

If the contract involves access to classified ("Confidential", "Secret",
or "Top Secret"), or administratively controlled ("Sensitive But
Unclassified") information, use the contract clause in 752.204-2.

**SUBPART 704.8 \-- CONTRACT FILES \[Reserved\]**

######  AIDAR SUBCHAPTER B \-- ACQUISITION PLANNING

**TABLE OF CONTENTS**

**PART 705 \-- PUBLICIZING CONTRACT ACTIONS**

**705.002** Policy.

**SUBPART 705.2 \-- SYNOPSIS OF PROPOSED CONTRACT ACTIONS.**

**705.202** Exceptions.

**705.207** Preparation and transmittal of certain synopses

**SUBPART 705.5 -- PAID ADVERTISEMENTS**

**705.502** Authority.

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.

**PART 705 \-- PUBLICIZING CONTRACT ACTIONS**

> **[See also CIBs 01-13, Posting USAID
> Solicitations](http://www.usaid.gov/procurement_bus_opp/procurement/cib/)[;\
> ]{.underline}[99-14, Congressional
> Notification](http://www.usaid.gov/procurement_bus_opp/procurement/cib/)**

**705.002** Policy.

\(a\) USAID's Office of Small and Disadvantaged Business Utilization
maintains an USAID Consultant Registry Information System (ACRIS), which
serves as a reference source and an indication of a prospective
contractor's interest in performing USAID contracts. Prospective
contractors are invited to file the appropriate form (Standard Forms
254/255, Architect-Engineer and Related Services Questionnaire; or USAID
Form 1420-50, USAID Consultant Registry Information System (ACRIS)
Organization and Individual Profile) with USAID's Office of Small and
Disadvantaged Business Utilization (Department of State, U.S. Agency for
International Development, Washington, D.C. 20523-1414\--Attention:
Office of Small and Disadvantaged Business Utilization).

These forms should be updated annually.

\(b\) USAID policy is to include all Commerce Business Daily Notices and
solicitations on the Internet.

**SUBPART 705.2 \-- SYNOPSIS OF PROPOSED CONTRACT ACTIONS.**

**705.202** Exceptions.

\(a\) \[Reserved\]

\(b\) The head of the U.S. Agency for International Development has
determined after consultation with the Administrator for Federal
Procurement Policy and the Administrator of the Small Business
Administration, that advance notice is not appropriate or reasonable for
contract actions described in 706.302-70(b)(1) through (b)(3).

\(c\) Advance notice is not required for contract actions undertaken in
accordance with 706.302-71.

**705.207** Preparation and transmittal of certain synopses.

The responsible contracting officer shall notify USAID's Office of Small
and Disadvantaged Business Utilization (OSDBU) at least seven business
days before publicizing a solicitation in the [Commerce Business
Daily]{.underline} for an acquisition:

\(a\) Which is to be funded from amounts referred to in section
706.302-71(a); and

\(b\) Which is expected to exceed \$100,000.

For exceptions, see 726.7005.

**705.5 \-- PAID ADVERTISEMENTS**

**705.502** Authority.

\(a\) The M/OP Director, acting as head of the Agency under the
authority of 701.601(a)(1), hereby authorizes USAID contracting officers
to place paid advertisements and notices in newspapers and periodicals.
Contracting officers shall document the contract file to reflect
consideration of the requirements of (48 CFR) FAR 5.101(b)(4).

######## PART 706 \-- COMPETITION REQUIREMENTS

**TABLE OF CONTENTS**

**706.003** Definitions.

**Subparts 706.1 - 706.2 \[Reserved\]**

**SUBPART 706.3 \-- OTHER THAN FULL AND OPEN COMPETITION**

**706.302-5** Authorized or required by statute.

**706.302-70** Impairment of foreign aid programs.

**706.302-71** Small Disadvantaged Businesses.

**706.303-1** Requirements.

**SUBPART 706.5 \-- COMPETITION ADVOCATES**

**706.501** Requirement.

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.

**706.003** Definitions.

"Procuring activity" means "contracting activity", as defined in
702.170-3.

######## SUBPARTS 706.1 - 706.2 \[Reserved\]

######## SUBPART 706.3 \-- OTHER THAN FULL AND OPEN COMPETITION

> [**See also CIB 97-22, Mission Procurements of U.S.
> Vehicles**](http://www.usaid.gov/procurement_bus_opp/procurement/cib/)

**706.302-5** Authorized or required by statute.

Certain annual appropriations acts authorize USAID to contract with
certain disadvantaged enterprises using other than full and open
competition. The provisions implementing this authority are set forth in
706.302-71 and part 726.

**706.302-70** Impairment of foreign aid programs.

\(a\) [Authority]{.underline}.

\(1\) Citation: 40 U.S.C. 474.

\(2\) Full and open competition need not be obtained when it would
impair or otherwise have an adverse effect on programs conducted for the
purposes of foreign aid, relief, and rehabilitation.

\(b\) [Application]{.underline}.

This authority may be used for:

\(1\) An award under Section 636(a)(3) of the Foreign Assistance Act of
1961, as amended, involving a personal services contractor serving
abroad;

\(2\) An award of \$250,000 or less by an overseas contracting activity;

\(3\) (i) An award for which the Assistant Administrator responsible for
the project or program makes a formal written determination, with
supporting findings, that compliance with full and open competition
procedures would impair foreign assistance objectives, and would be
inconsistent with the fulfillment of the foreign assistance program; or

\(ii\) Awards for countries, regions, projects, or programs for which
the Administrator of USAID makes a formal written determination, with
supporting findings, that compliance with full and open competition
procedures would impair foreign assistance objectives, and would be
inconsistent with the fulfillment of the foreign assistance program.

\(4\) Awards under AIDAR 715.370-1 (Title XII selection
procedure-general) or 715.370-2 (Title XII selection
procedure-collaborative assistance).

\(5\) An award for the continued provision of highly specialized
services when award to another resource would result in substantial
additional costs to the government or would result in unacceptable
delays.

\(c\) [Limitations]{.underline}.

\(1\) Offers shall be requested from as many potential offerors as is
practicable under the circumstances. While the authority at
706.302-70(b)(5) is for use when the contracting officer determines that
the incumbent contractor is the only practicable, potential offeror, the
requirement to publicize the intended award, as required in FAR 5.201,
still applies.

\(2\) The contract file must include appropriate explanation and support
justifying the award without full and open competition, as provided in
FAR 6.303, except that determinations made under 706.302-70(b)(3) will
not be subject to the requirement for contracting officer certification
or to approvals in accord with FAR 6.304.

\(3\) The authority in 706.302-70(b)(3)(i) shall be used only when no
other authority provided in FAR 6.302 or AIDAR 706.302 is suitable. The
specific foreign assistance objective which would be impaired must be
identified and explained in the written determination and finding. Prior
consultation with the Agency Competition Advocate (see 706.501) is
required before executing the written determination and finding, and
this consultation must be reflected in the determination and finding.

\(4\) Use of the authority in 706.302-70(b)(5) for proposed follow-on
amendments in excess of one year or over \$250,000 is subject to the
approval of the Agency Competition Advocate. For all other follow-on
amendments using this authority, the contracting officer's certification
required in FAR 6.303-2(a)(12) will serve as approval.

**706.302-71** Small Disadvantaged Businesses.

\(a\) Authority.

\(1\) Citations: Sec. 579, Pub. L. 101-167 (Fiscal year (FY) 1990), Sec.
567, Pub. L. 101-513 (FY 1991), Sec. 567, Pub. L. 102-145 (FY 1992),
Sec. 562, Pub. L. 102-391 (FY 1993), Sec. 558, Pub. L. 103-87 (FY 1994),
and Sec. 555, Pub. L. 103-306 (FY 1995).

\(2\) Except to the extent otherwise determined by the Administrator,
not less than ten percent of amounts made available through the
appropriations cited in paragraph (a)(1) of this section for development
assistance and for assistance for famine recovery and development in
Africa shall be used only for activities of disadvantaged enterprises
(as defined in 726.7002). In order to achieve this goal, USAID is
authorized in the cited statutes to use other than full and open
competition to award contracts to small business concerns owned and
controlled by socially and economically disadvantaged individuals (small
disadvantaged businesses as defined in 726.7002), historically black
colleges and universities, colleges and universities having a student
body of which more than 40 percent of the students are Hispanic
Americans, and private voluntary organizations which are controlled by
individuals who are socially and economically disadvantaged, as the
terms are defined in 726.7002.

\(b\) Application. This authority may be used only if the Agency
determines in accordance with 726.7004 that:

\(1\) The acquisition is to be funded from amounts

referred to in paragraph (a) of this section;

\(2\) Award of the acquisition to an eligible organization is
appropriate to meet the requirement in paragraph (a) of this section;
and

\(3\) After considering whether the acquisition can be made under the
authority of Section 8(a), award under Section 8(a) is not practicable.

\(c\) Limitations.

\(1\) Offers shall be requested from as many potential offerors as is
practicable under the circumstances.

\(2\) Use of this authority is not subject to the requirements in FAR
6.303 and FAR 6.304, provided that the contract file includes a
certification by the contracting officer stating that the procurement is
being awarded pursuant to 706.302-71 and that the application
requirements and limitations of 706.302-71(b) and (c) have been complied
with. (See FAR 6.303 and FAR 6.304)

**706.303-1** Requirements.

(a)-(c) \[Reserved\]

\(d\) USAID project procurements are generally not subject to the Trade
Agreements Acts of 1979 (see 725.403 of this chapter). To the extent
procurements are made under the authority of FAR 6.302-3(a)(2)(i) or FAR
6.302-7 with Operating Expenses (OE) Funds, the Contracting Officer
shall send a copy of the justification to the Office of the United
States Trade Representative, 600 17th Street, N.W., Washington, D.C.
20506, ATTN: Director, International Procurement Policy. (See FAR 6.302)

######## SUBPART 706.5 \-- COMPETITION ADVOCATES

**706.501** Requirement.

The USAID Administrator delegated the authority to designate the agency
competition advocate and a competition advocate for each agency
procuring activity (see 706.003 of this part) to the M/OP Director. The
M/OP Director, under the Administrator's delegation, has designated the
M/OP Deputy Director for Policy, Evaluation and Support as the Agency's
competition advocate and the deputy head of each contracting activity as
the competition advocate for each activity. The competition advocate for
M/OP is the Deputy Director for Operations. If there is no deputy, the
head of the contracting activity is designated the competition advocate
for that activity. The competition advocate's duties may not be
redelegated, but can be exercised by persons serving as acting deputy
(or acting head) of the contracting activity. For definitions of
contracting activity and head of contracting activity, see 702.170-3 and
702.170-10, respectively.

**PART 707 \-- ACQUISITION PLANNING**

**SUBPART 707.1 \-- ACQUISITION PLANS \[RESERVED\]**

**PART 709 \-- CONTRACTOR QUALIFICATIONS**

[**See also CIB 92-16, Pre-Award
Audits/Surveys**](http://www.usaid.gov/procurement_bus_opp/procurement/cib/)

**TABLE OF CONTENTS**

**SUBPART 709.4 \-- DEBARMENT, SUSPENSION AND INELIGIBILITY**

**709.403** Definitions

**SUBPART 709.5 \-- ORGANIZATIONAL CONFLICTS OF INTEREST**

**709.503** Waiver.

**709.507-2** Contract Clause

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.

**SUBPART 709.4 \-- DEBARMENT, SUSPENSION AND INELIGIBILITY**

[**See also CIB 99-23 List of
Parties**](http://www.usaid.gov/procurement_bus_opp/procurement/cib/)

**709.403** Definitions

"Debarring official" in USAID is the M/OP Director.

"Suspending official" in USAID is the M/OP Director.

**SUBPART 709.5 \-- ORGANIZATIONAL CONFLICTS OF INTEREST**

[**See also CIB 99-17,
OCI**](http://www.usaid.gov/procurement_bus_opp/procurement/cib/)

**709.503** Waiver.

For purposes of approving waivers or further delegating the authority to
approve waivers pursuant to FAR 9.503, the M/OP Director is the Agency
head (see AIDAR 701.601(a)(1)). The M/OP Director hereby delegates the
authority to approve waivers pursuant to FAR 9.503 to the heads of USAID
contracting activities, as defined in AIDAR 702.170-10.

**709.507-2** Contract clause.

\(a\) - (b) \[Reserved\]

\(c\) In order to avoid problems from organizational conflicts of
interest that may be discovered after award of a contract, the clause
found at 752.209-71 shall be inserted in all contracts whenever the
solicitation or resulting contract or both include a provision in
accordance with (48 CFR) FAR 9.507-1, or a clause in accordance with (48
CFR) FAR 9.507-2, establishing a restraint on the contractor's
eligibility for future contracts**.**

######## PART 711 \-- DESCRIBING AGENCY NEEDS

**TABLE OF CONTENTS**

**711.002-70** Metric system waivers.

**711.002-71** Solicitation provisions and contract clauses.

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.

######## PART 711 \-- DESCRIBING AGENCY NEEDS

**711.002-70** Metric system waivers.

\(a\) [Criteria]{.underline}. The FAR 11.002(b) requirement to use the
metric system of measurement for specifications and quantitative data
that are incorporated in or required by USAID contracts may be waived
when USAID determines in writing that such usage is impractical or is
likely to cause U.S. firms to experience significant inefficiencies or
the loss of markets.

\(b\) [Authorization]{.underline}.

\(1\) The USAID Metric Executive (as designated in ADS chapter 323), the
contracting officer, and the USAID official who approves the procurement
requirement are authorized to waive the metric requirement for one of
the above reasons. The USAID Metric Executive is authorized to overrule
a decision to grant a waiver, or to nullify a blanket waiver made by
another approving official so long as a contractor's rights under an
executed contract are not infringed upon.

\(2\) A blanket waiver for a class of multiple transactions may be
issued for a term not to exceed three years.

\(3\) When a waiver will be based upon the adverse impact on U.S. firms,
clearance from the USAID Metric Executive and the Office of Small and
Disadvantage Business Utilization (SDB) will be obtained prior to
authorization.

\(c\) [Records and reporting]{.underline}.

\(1\) The basis for each waiver and any plans to adapt similar
requirements to metric specifications in future procurements should be
documented in the contract file.

\(2\) Each procurement activity will maintain a log of the waivers from
the metric requirements, which are authorized for its procurements. The
logs shall list the commodity/service being procured, total dollar value
of the procured item(s), waiver date, authorizing official, basis for
waiver, and USAID actions that can promote metrication and lessen the
need for future waivers.

\(3\) Within 30 days of the closing of each fiscal year, each USAID/W
procurement activity and each Mission will submit a copy of the metric
waiver log for the year to the USAID Metric Executive. (Mission logs are
to be consolidated in a Mission report for the procurement activity and
for the non-procurement activities maintaining such logs under the USAID
Metric Transition Plan.) Repetitive purchases of commercially produced
and marketed items may be consolidated in reporting procurements that do
not exceed \$10,000 cumulatively during the reporting period.

**711.002-71** Solicitation provisions and contract clauses.

The contracting officer shall insert the clause at 752.211-70 in all
USAID-direct solicitations and contracts.

SUBCHAPTER C \-- CONTRACTING METHODS\
AND CONTRACT TYPES

######## PART 713 \-- SIMPLIFIED ACQUISITION PROCEDURES

**TABLE OF CONTENTS**

**713.000** Scope of part.

**Subpart 713.1\--General** **713.101** Definitions.

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.

**713.000** Scope of part.

The simplified acquisition threshold applies to the cost of supplies and
services, exclusive of the cost of transportation and other accessorial
costs if their destination is outside the United States.

**Subpart 713.1\--General**

**713.101** Definitions.

Accessorial costs mean the cost of getting supplies or services to their
destination in the cooperating country (and the travel costs of
returning personnel to the U.S. or other point of hire). It does not
include costs such as allowances or differentials related to maintaining
personnel at post, which are to be considered as part of the base costs
within the simplified acquisition threshold.

**PART 714 \-- SEALED BIDDING**

**SUBPART 714.4 \-- OPENING OF BIDS AND AWARD OF CONTRACT**

**TABLE OF CONTENTS**

**714.406-3** Other mistakes disclosed before award.

**714.406-4** Disclosure of mistakes after award.

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.

**PART 714 \-- SEALED BIDDING**

**SUBPART 714.4 \-- OPENING OF BIDS AND AWARD OF CONTRACT**

**714.406-3** Other mistakes disclosed before award.

The M/OP Director is the designated central authority to make the
determinations described in FAR 14.406-3.

714.406-4 Disclosure of mistakes after award.

The M/OP Director is the designated central authority to make the
determinations described in FAR 14.406-4.

**PART 715 \-- CONTRACTING BY NEGOTIATION**

[**See also CIB 84-14 Negotiating
Profit/Fee**](http://www.usaid.gov/procurement_bus_opp/procurement/cib/)

######### TABLE OF CONTENTS

**SUBPART 715.3 \-- SOURCE SELECTION**

**715.303** Responsibilities.

**715.303-70** Responsibilities of USAID evaluation committees.

**715.305** Proposal Evaluation.

**715.370** Alternative source selection procedures.

**715.370-1** Title XII selection procedure \-- general.

**715.370-2** Title XII selection procedure \-- collaborative
assistance.

**SUBPART 715.6 \-- UNSOLICITED PROPOSALS**

**715.602** Policy

**715.604** Advance Guidance

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.

**SUBPART 715.3 \-- SOURCE SELECTION**

**715.3 Responsibilities.**

**715.303-70** Responsibilities of USAID evaluation committees.

\(a\) Establishment and composition of USAID evaluation committees. A
technical evaluation committee shall be established for each proposed
procurement. In each case, the committee shall be composed of a chair
representing the cognizant technical office, a representative of the
contracting office (who shall be a non-voting member of the committee),
and representatives from other concerned offices as appropriate.

\(b\) Technical evaluation procedures.

\(1\) The contracting officer will receive all proposals and provide to
the chair a listing and copies of the technical proposals and
instructions for conducting the evaluation.

\(2\) The chair will promptly call a meeting of the committee to
evaluate the proposals received. The evaluation shall be based on the
evaluation factors set forth in the solicitation document.

\(3\) The chair shall prepare and provide to the Contracting Officer
written documentation summarizing the results of the evaluation of each
proposal, including an assessment of past performance information in
accordance with FAR 15.305(a)(2). The documentation shall include
narrative justification of the evaluation results.

\(4\) The contracting officer is responsible for reviewing the
documentation justifying the evaluation results to determine that it is
adequate and complete. The contracting officer shall return a
justification determined to be inadequate to the chair for revision.

\(5\) No member of the USAID evaluation committee shall hold discussions
with any offeror before or during the USAID evaluation committee's
proceedings, nor shall any information about the proposals be provided
to anyone not on the committee without first obtaining the contracting
officer's consent.

**715.305** Proposal Evaluation.

**\* (a) (1)\[Reserved\]**

**\* (2) USAID shall use the information on offerors made available from
the NIH Contractor Performance System to evaluate past performance.
(Access to the system by USAID contracting office personnel is
authorized by the USAID Past Performance Coordinator, E-mail address:
AIDNET: Past Performance@op.spu@aidw/Internet:
pastperformance@usaid.gov.)**

\(b\) A justification is to be written by the Contracting Officer and
placed in the official file to support the decision to reject all
proposals and to cancel the procurement.

\(c\) The Contracting Office may authorized release of proposals outside
the Government for evaluation\--

> \(1\) When an Evaluation Assistance Contract (EAC) is

required to provide technical advisory or other services relating to the
evaluation of proposals; or

\(2\) When an individual other than a government employee, known as a
Non-Government Evaluator (NGE), is selected to serve as a member of a
USAID technical evaluation committee, the Contracting Officer shall
obtain a signed and dated certification and agreement from each NGE and
EAC that they will safeguard the proposals and information therein and
that they perceive no actual or potential conflict of interests. (An
acceptable certification appears under ADS Chapter 302).

**715.370** Alternative source selection procedures.

The following selection procedures may be used, when appropriate, for
activities covered under Title XII of the Foreign Assistance Act of
1961, as amended.

**715.370-1** Title XII selection procedure \-- general.

\(a\) [General]{.underline}. The Deputy Administrator has determined, as
provided in AIDAR 706.302-70(b)(3)(ii) that use of this Title XII source
selection procedure is necessary so as not to impair or affect USAID's
ability to administer Title XII of the Foreign Assistance Act. This
determination is reflected in AIDAR 706.302-70(b)(4). This constitutes
authority for other than full and open competition when selecting Title
XII institutions to perform Title XII projects.

\(b\) [Scope of subsection]{.underline}. This subsection prescribes
policies and procedures for the selection of institutions eligible under
Title XII of the Foreign Assistance Act of 1961, as amended, to perform
activities authorized under Title XII.

\(c\) [Applicability]{.underline}. The provisions of this subsection are

applicable when the project office certifies that the activity is
authorized under Title XII, and determines that use of the Title

XII selection procedure is appropriate.

\(d\) [Solicitation, evaluation, and selection procedures]{.underline}.

\(1\) Competition shall be sought among eligible Title XII institutions
to the maximum practicable extent; this requirement shall be deemed
satisfied when a contractor is selected under the procedures of this
subsection.

\(2\) The project office shall:

\(i\) Prepare selection criteria for evaluation of eligible institutions
for use in preparing the source list, determining predominantly
qualified sources, and selecting the contractor;

\(ii\) Prepare an initial list of eligible institutions considered
qualified to perform the proposed activity;

\(iii\) Provide a statement describing qualifications and areas of
expertise considered essential, a statement of work, estimate of
personnel requirements, special requirements (logistic support,
government furnished property, and so forth) for the contracting
officer's use in preparing the request for technical proposal (RFTP).

\(iv\) Send a memorandum incorporating the certification and
determination required by paragraph (c) of this section, together with
the information required by paragraphs (d)(2)(i) through (iii) of this
section, with the "Action" copy of the PIO/T to the contracting officer,
requesting him/her to prepare and distribute the RFTP.

\(3\) Upon receipt and acceptance of the project officer's request, the
contracting officer shall prepare the RFTP. The RFTP shall contain
sufficient information to enable an offeror to submit a responsive and
complete technical proposal. This includes a definitive statement of
work, an estimate of the personnel required, and special provisions
(such as logistic support, government furnished equipment, and so
forth), a proposed contract format, and evaluation criteria. No cost or
pricing data will be requested or required by the RFTP. The RFTP will be
distributed to the eligible institutions recommended by the project
office. The RFTP will be synopsized, as required by FAR 5.201, and will
normally allow a minimum of 60 days for preparation and submission of a
proposal.

\(4\) Upon receipt of responses to the RFTP by the contracting officer,
an evaluation committee will be established as provided for in 715.608
of this subpart.

\(5\) The evaluation committee will evaluate all proposals in accordance
with the criteria set forth in the RFTP, and will prepare a selection
memorandum which shall:

\(i\) State the evaluation criteria;

\(ii\) List all of the eligible institutions whose proposals were
reviewed;

\(iii\) Report on the ranking and rationale therefor for all proposals;

\(iv\) Indicate the eligible institution or institutions considered best
qualified.

\(6\) The evaluation committee will submit the selection memorandum to
the contracting officer for review and approval.

\(7\) The contracting officer will either approve the selection
memorandum, or return it to the evaluation committee for reconsideration
for specified reasons.

\(8\) If the selection memorandum is approved, the contracting officer
shall obtain cost, pricing, and other necessary data from the
recommended institution or institutions and shall conduct negotiations.
If a satisfactory contract cannot be obtained, the contracting officer
will so advise the evaluation committee. The evaluation committee may
then recommend an alternate institution or institutions.

**715.370-2** Title XII selection procedure \-- collaborative
assistance.

\(a\) [General]{.underline}. (48 CFR) AIDAR 706.302-70(b)(4) provides
authority for other than full and open competition when selecting Title
XII institutions to perform Title XII activities.

\(b\) [Scope of subsection]{.underline}. This subsection prescribes
policies and procedures for the selection of institutions eligible under
Title XII of the Foreign Assistance Act of 1961, as amended, to perform
activities authorized under Title XII, where USAID has determined, in
accordance with paragraph (c) of this subsection, that use of the
collaborative assistance contracting system is appropriate. See AIDAR
Appendix F (of this chapter)\--Use of Collaborative Assistance Method
for Title XII Activities for a more complete definition and discussion
of the collaborative assistance method.

\(c\) [Determinations]{.underline}. The following findings and
determinations must be made prior to initiating any contract actions
under the collaborative assistance method:

\(1\) The cognizant technical office makes a preliminary finding that
**an activity**:

\(i\) Is authorized by Title XII; and

\(ii\) Should be classed as collaborative assistance because a
continuing collaborative relationship between USAID, the host country,
and the contractor is required from design through completion of the
activity, and USAID, host country, and contractor participation in a
continuing review and evaluation of the activity is essential for its
proper execution.

\(2\) Based upon this preliminary finding, the cognizant technical
office shall establish an evaluation panel consisting of a
representative of the cognizant technical office as chairman, a
representative of the contracting officer, and any other representatives
considered appropriate by the chairman to

review the proposed activity for its appropriateness under the
collaborative assistance method.

\(3\) If supported by the panel's findings, the chairman will make a
formal, written determination that the collaborative assistance method
is the appropriate contracting method for the Title XII activity in
question.

\(d\) [Evaluation and selection]{.underline}.

\(1\) Competition shall be sought among eligible Title XII institutions
to the maximum practicable extent; this requirement shall be deemed
satisfied when a contractor is selected under the procedures of this
section.

\(2\) The evaluation panel shall:

\(i\) Prepare evaluation and selection criteria;

\(ii\) Prepare an initial source list of eligible institutions
considered qualified to perform the proposed project; and

\(iii\) Evaluate the list, using the evaluation criteria previously
determined, for the purpose of making a written determination of the
sources considered most capable of performing the project.

\(3\) The chairman of the evaluation panel will prepare a memorandum
requesting the contracting officer to prepare a request for expressions
of interest from qualified sources and setting forth:

\(i\) The formal determinations required by paragraph (c) of this
section;

\(ii\) The evaluation criteria which have been determined; and

\(iii\) The recommended source list and the rationale therefor.

\(4\) The contracting officer will prepare a request for an expressions
of interest (REI), containing sufficient information to permit an
offeror to determine its interest in the project, and to discuss the
project with USAID representatives, if appropriate. The REI should
include a concise statement of the purpose of the activity, any special
conditions or qualifications considered important, a brief description
of the selection procedure and evaluation criteria which will be used,
the proposed contract format, and any other information considered
appropriate. The REI will be issued to the sources recommended by the
panel, and to others, as appropriate; it will be synopsized, as required
by FAR 5.201, and it will normally allow a minimum of 60 days for
preparation of an expression of interest. Guidelines for preparation of
expressions of interest are contained in Attachment 1 to AIDAR Appendix
F. **(See [FAR
5.201](http://www.usaid.gov/cgi-bin/goodbye?http://www.arnet.gov/far/))**

\(5\) The contracting officer will transmit all expressions of interest
to the evaluation panel for evaluation and selection recommendation. The
panel may conduct on site evaluations at its discretion, as part of the
evaluation process.

\(6\) The chairman of the evaluation panel will prepare a written
selection recommendation with supporting justification, recommending
that negotiations be conducted with the prospective contractor(s)
selected by the evaluation panel. The selection recommendation shall be
transmitted to the contracting officer together with the complete
official file on the project which was being maintained by the
evaluation panel.

\(7\) The contracting officer will review the selection recommendation,
obtain necessary cost and other data, and proceed to negotiate with the
recommended sources.

**SUBPART 715.6 \-- UNSOLICITED PROPOSALS**

[**See also CIB 99-18, Unsolicited
Proposals**](http://www.usaid.gov/procurement_bus_opp/procurement/cib/)

**715.602** Policy.

\(a\) USAID encourages the submission of unsolicited proposals which
contribute new ideas consistent with and contributing to the
accomplishment of the Agency's objectives. However, the requirements for
contractor resources are normally quite program specific, and thus
widely varied, and must be responsive to host country needs. Further,
USAID's projects are usually designed in collaboration with the
cooperating country. These factors can limit both the need for, and
USAID's ability to use unsolicited proposals. Therefore, prospective
offerors are encouraged to contact USAID to determine the Agency's
technical and geographical requirements as related to the offeror's
interests before preparing and submitting a formal unsolicited proposal.

\(b\) USAID's basic policies and procedures regarding unsolicited
proposals are those established in FAR subpart 15.6 and this Subpart.

\(c\) For detailed information on unsolicited proposals, see 715.604;
for initial contact point within USAID, see 715.604(c).

**715.604** Agency points of contact.

\(a\) Information concerning USAID's policies for unsolicited proposals
is available from the U.S. Agency for International Development, Office
of Procurement, Evaluation Division, Room 7.08-005, 1300 Pennsylvania
Ave, NW, Washington, DC 20523-7803.

\(b\) The information available concerns:

\(1\) Contact points within USAID;

\(2\) Definitions;

\(3\) Characteristics of a suitable proposal;

\(4\) Determination of contractor responsibility;

\(5\) Organizational conflict of interest;

\(6\) Cost sharing; and

\(7\) Procedures for submission and evaluation of proposals.

\(c\) Initial inquiries and subsequent unsolicited proposals should be
submitted to the address specified in paragraph (a) of this section.

**PART 716 \-- TYPES OF CONTRACTS**

**TABLE OF CONTENTS**

**SUBPART 716.3 \-- COST-REIMBURSEMENT CONTRACTS**

**716.303** Cost-sharing contracts

**716.306** Cost-plus-fixed-fee contracts.

# SUBPART 716.4 -- INCENTIVE CONTRACTS

**716.406** Contract clauses**.**

**SUBPART 716.5 \-- \[Reserved\]**

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.

######## SUBPART 716.3 \-- COST-REIMBURSEMENT CONTRACTS

**716.303** Cost-sharing contracts

(a)-(b) \[Reserved\]

\(c\) Limitations. In addition to the limitations specified in FAR
16.301-3, prior approval of the M/OP Director (see 701.601(a)(1)) is
required in order to use a cost-sharing contract with an educational
institution.

**716.306** Cost-plus-fixed-fee contracts \[reserved\]

#  SUBPART 716.4 --- INCENTIVE CONTRACTS

**716.406** Contract clauses.

The Contracting Officer shall include the clause at 752.216-70, Award
Fee, in solicitations and contract when an award-fee contract is
contemplated.

**SUBPART 716.5 \-- \[Reserved\]**

**PART 717 \-- SPECIAL CONTRACTING METHODS**

**TABLE OF CONTENTS**

**SUBPART 717.70** \-- **PHARMACEUTICAL PRODUCTS**

**717.700** General.

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.

**SUBPART 717.70 \-- PHARMACEUTICAL PRODUCTS**

**717.700** General.

Section 606(c) of the Foreign Assistance Act bars procurement by the
Government of drug and pharmaceutical products manufactured outside the
United States if their manufacture involves the use of or is covered by
an unexpired U.S. patent which has not been held invalid by an
unappealed or unappealable court decision unless the manufacture is
expressly authorized by the patent owner. Applicable policies and
procedures are set forth in USAID Automated Directive System Chapter
312.

######  AIDAR SUBCHAPTER D \-- SOCIOECONOMIC PROGRAMS

**PART 719 \-- SMALL BUSINESS PROGRAMS**

**TABLE OF CONTENTS**

**SUBPART 719.2 \-- POLICIES**

**719.270** Small business policies.

**719.271** Agency program direction and operation.

**719.271-1** General.

**719.271-2** The USAID Office of Small and Disadvantaged Business

Utilization (SDB).

**719.271-3** USAID contracting officers.

**719.271-4** Heads of Contracting Activities.

**719.271-5** Program/project officers.

**719.271-6** Small business screening procedure.

**719.271-7** Reports on procurement actions that are exempted from

screening.

**719.272** Small disadvantaged business policies.

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.

**SUBPART 719.2 \-- POLICIES**

**719.270** Small business policies.

\(a\) In keeping with section 602 of the Foreign Assistance Act of 1961
(22 U.S.C. 2352), as amended, USAID shall, insofar as practicable and to
the maximum extent consistent with the accomplishment of the purposes of
said Act, assist United States small business to participate equitably
in the furnishing of supplies and services for Foreign Assistance
activities.

\(b\) It is the policy of USAID to:

\(1\) Fully endorse and carry out the Government's small business
program for placing a fair proportion of its purchases and contracts for
supplies, construction (including maintenance and repair), research and
development, and services (including personal, professional, and
technical services) with small business, including minority small
business concerns; and

\(2\) Increase their participation in USAID procurement.

\(c\) In furtherance of this policy:

\(1\) Cognizant technical officers shall make positive efforts (see
719.271-5) to identify potentially qualified small and minority business
firms during precontract development of activities and shall, with the
responsible contracting officers, assure that such firms are given full
opportunity to participate equitably;

\(2\) Small business set-asides shall be made for all contracts to be
executed in USAID/Washington which qualify for small business set-aside
action under Part 19 of the FAR; and

\(3\) Consideration shall be given in appropriate cases to the award of
the contract to the Small Business Administration for subcontracting to
small business firms pursuant to section 8(a) of the Small Business Act
(15 U.S.C. 637(a)).

\(d\) This program shall be implemented by all USAID/Washington
contracting activities in order to attain these policy objectives. In
accordance with 719.271, all USAID/Washington direct-procurement
requirements which exceed the simplified acquisition threshold shall be
screened for small business opportunities by the Office of Small and
Disadvantaged Business Utilization (SDB) except those exempted by
719.271-6(a).

\(e\) Where practicable and desirable, small business and minority
business enterprise award goals will be established for the respective
USAID/Washington procuring activities to provide incentive for
contracting personnel to increase awards to small firms. The goals will
be set by SDB after consultation with the respective head of the
contracting activity (see subsection 702.170-10).

\(f\) In the event of a disagreement between SDB and the contracting
officer concerning:

\(1\) A recommended set-aside, or

\(2\) A request for modification or withdrawal of a class or individual
set-aside, complete documentation of the case including the reasons for
disagreement shall be transmitted within five working days to the head
of the contracting activity (see 719.271-6(e)) for a decision.
Procurement action shall be suspended pending a decision.

\(g\) The above suspension shall not apply where the contracting
officer:

\(1\) Certifies in writing, with supporting information, that in order
to protect the public interest award must be made without delay;

\(2\) Promptly provides a copy of said certification to SDB; and

\(3\) Includes a copy of the certification in the contract file.

\(h\) SDB shall be the Small Business Advisor and Minority Business
Procurement Policy Manager for all USAID/Washington procuring
activities.

\(i\) The details on the Agency's direction and operation of the small
business program are set forth in 719.271.

\(j\) No decision rendered, or action taken, under the coverage set
forth in 719.271 shall preclude the Small Business Administration from
appealing directly to the USAID Administrator as provided for in Part 19
of the FAR.

**719.271** Agency program direction and operation.

**719.271-1** General.

The purpose of this section is to prescribe responsibilities and
procedures for carrying out the small business program policy set forth
in 219.270, and in Part 19 of the FAR. Small business concerns are
defined in FAR Subpart 19.1; in addition, small business concerns are
concerns organized for profit. Nonprofit organizations are not
considered small business concerns. Small disadvantaged business
enterprises are defined in FAR Subpart 19.1. Small disadvantaged
business enterprises are included in the term "small business" when used
in this subpart; specific reference to disadvantaged business
enterprises is for added emphasis.

**719.271-2** The USAID Office of Small and Disadvantaged Business
Utilization (SDB).

\(a\) SDB is responsible for administering, implementing, and
coordinating the Agency's small business (including minority business
enterprises) program.

\(b\) SDB, headed by the Director, SDB, who also serves as the Minority
Business Procurement Manager, shall be specifically responsible for:

\(1\) Developing policies, plans, and procedures for a coordinated
Agency-wide small business and minority business enterprise procurement
program;

\(2\) Advising and consulting regularly with USAID/Washington procuring
activities on all phases of their small business program, including,
where practicable and desirable, the establishment of small business and
minority business enterprise award goals;

\(3\) Collaborating with officials of the Small Business Administration
(SBA), other Government Agencies, and private organizations on matters
affecting the Agency's small business program;

\(4\) Developing and maintaining an USAID Consultant Registry
Information System (ACRIS) of bidders/offerors (annotated to identify
small business and minority business enterprise firms) capable of
furnishing services for use by the USAID contracting activities;

\(5\) Cooperating with contracting officers in administering the
performance of contractors subject to the Small Business and Minority
Business Enterprises Subcontracting Program clauses.

\(6\) Developing a plan of operation designed to increase the share of
contracts awarded to small business concerns, including small minority
business enterprises;

\(7\) Establishing small business class set-aside for types and classes
of items of services where appropriate;

\(8\) Reviewing each procurement requisition to make certain individual
or class set-asides are initiated on all suitable USAID/Washington
proposed contract actions in excess of the simplified acquisition
threshold which are subject to screening (see 719.271-6);

\(9\) Maintaining a program designed to:

\(i\) Locate capable small business sources for current and future
procurements through GSA and other methods.

\(ii\) Utilize every source available to determine if an item is
obtainable from small business; and

\(iii\) Develop adequate small business competition on all appropriate
procurements;

\(10\) Taking action to assure that unnecessary qualifications,
restrictive specifications, or other features (such as inadequate
procurement lead time) of the programming or procurement process, which
may prevent small business participation in the competitive process, are
modified to permit such participation where an adequate product or
service can be obtained;

\(11\) Recommending that portions of large planned procurements or
suitable components of end items or services be purchased separately so
small firms may compete;

\(12\) On proposed non-competitive procurements, recommending to the
contracting officer that the procurement be made competitive when, in
the opinion of SDB, there are small business or minority business
enterprises believed competent to furnish the required goods or
services, and supplying the contracting officer a list of such firms;

\(13\) Assisting small business concerns with individual problems;

\(14\) Promoting increased awareness by the technical staff of the
availability of small business firms;

\(15\) Making available to GSA copies of solicitations when so
requested;

\(16\) Counseling non-responsive or non-responsible small business
bidders/offerors to help them participate more effectively in future
solicitations; and

\(17\) Examining bidders lists to make certain small business firms are
appropriately identified and adequately represented for both negotiated
and advertised procurements.

**719.271-3** USAID contracting officers.

With respect to procurement activities within their jurisdiction,
contracting officers are responsible for:

\(a\) Being thoroughly familiar with Part 19 of the FAR and this section
dealing with the small business program;

\(b\) Screening abstracts of bids and other award data to determine
set-aside potential for future procurements;

\(c\) Assuring that small business concerns and minority business
enterprises are appropriately identified on source lists and abstracts
of bids or proposals by an "S" and "M", respectively, or other
appropriate symbol;

\(d\) Reviewing types and classes of items and services to determine
where small business set-asides can be applied;

\(e\) Recommending that portions of large planned procurements of
suitable components of end items or services be purchased separately so
small firms may compete;

\(f\) Making a unilateral determination for total or partial small
business set-asides in accordance with Subpart 19.5 of the Federal
Acquisition Regulations;

\(g\) Submitting proposed procurement actions for USAID/Washington
contracts to SDB for screening (see 719.271-6);

\(h\) Taking action to assure that unnecessary qualifications,
restrictive specifications or other features such as inadequate
procurement lead time) of the programming or procurement process which
may prevent small business participation in the competitive process are
modified to permit such participation where an adequate product or
service can be obtained;

\(i\) Prior to rendering a final decision on a proposed non-competitive
procurement action, and as part of his/her findings and determinations,
the contracting officer shall consider the recommendations, if any, of
SDB together with the latter's list of additional sources;

\(j\) As appropriate, referring small business concerns, including small
minority business enterprises, to SDB for information and advice;

\(k\) Promoting increased awareness by the technical staff of the
availability of small business concerns;

\(l\) Making available to SDB copies of solicitations when requested;

\(m\) Assisting SDB in counseling non-responsive or non-responsible
small business bidders/offerors to help them to participate more
effectively in future solicitations; and

\(n\) Including the Small Business and Minority Business Enterprises
Subcontracting Program clauses in all contracts where required by Part
19 of the FAR.

**719.271-4** Heads of Contracting Activities.

In order for the agency small business program to be effective, the
active support of top management is required. The heads of the
contracting activities shall be responsible for:

\(a\) Rendering decisions in cases resulting from non-acceptances by
their contracting officers of set-aside recommendations made by SDB;

\(b\) Consulting with SDB in establishing small business and minority
business enterprise award goals, where practicable and desirable; and

\(c\) Advising cognizant technical officers of their responsibilities as
set forth in 719.271-5.

**719.271-5** Cognizant technical officers.

Since the procurement process starts with the establishment of a
requirement, the actions of the cognizant technical officers can affect
the opportunity of small business to participate equitably; therefore,
each cognizant technical officer shall, during the formulation of
activities which will require contractual implementation:

\(a\) Consult with SDB on the availability and capabilities of small
business firms to permit making a tentative set-aside determination
where appropriate; and

\(b\) Provide sufficient procurement lead time in the activity
implementation schedule to allow potential small business participation.

**719.271-6** Small business screening procedure.

\(a\) [General]{.underline}. All USAID/Washington proposed contract
actions in excess of the simplified acquisition threshold shall be
screened by SDB, with the exception of:

\(1\) Class set-asides and those unilaterally set-aside by contracting
officers (719.271-3(f));

\(2\) Those where the contracting officer certifies in writing that the
public exigency will not permit the delay incident to screening
(719.271-7(b));

\(3\) "Institution building" contracts (contracts for development of a
counterpart capability in the host country) with educational or
nonprofit institutions; or collaborative assistance contracts pursuant
to AIDAR 715.370-2.

\(4\) Those involving the payment of tuition and fees for participant
training at academic institutions; and

\(5\) Personal services contract requirements (see 719.270).

\(b\) [Preparation of Form USAID 1410-14 (the Small Business/Minority
Business Enterprise Procurement Review Form).]{.underline}

\(1\) The contracting officer shall prepare the subject form in an
original and 3 copies and forward the original and 2 copies to SDB
within one working day of receipt by the contracting activity of a
procurement requisition.

\(2\) The contracting officer will attach to his/her transmittal a
complete copy of the procurement request and a copy of the recommended
source list as furnished by the technical office and supplemented by
him/her.

\(3\) The contracting officer shall complete blocks 2, 3, 4, 5, 9, and
10 (when appropriate) prior to submittal to SDB.

\(c\) [Screening of Form USAID 1410-14 by SDB]{.underline}.

\(1\) SDB will screen the contracting officer's recommendations on
set-aside potential, small business subcontracting opportunities, and
section 8(a) subcontracting, and furnish him/her with either a written
concurrence in his/her recommendations or written
counter-recommendations on the original and duplicate copy within five
working days from receipt of the form from the contracting officer.

\(2\) SDB will complete Blocks 1, 6, 7, 8, 11, and 12 (when appropriate)
prior to returning the screened form to the contracting officer.

\(d\) [Concurrence or rejection procedure]{.underline}.

\(1\) The contracting officer shall complete Block 13 upon receipt of
the original and duplicate copy of the screened form from SDB.

\(2\) If the contracting officer rejects the SDB counter-recommendation,
he/she shall return the original and duplicate forms with his/her
written reasons for rejection to SDB within two working days.

\(3\) Upon receipt of the contracting officer's rejection, SDB may: (i)
accept, or (ii) appeal, the rejection. In the case of acceptance of the
contracting officer's rejection, SDB shall annotate Block 14 when it
renders a decision and return the original form to the contracting
officer within two working days.

\(e\) [Appeal procedure]{.underline}.

\(1\) When informal efforts fail to resolve the set-aside disagreement
between the contracting officer and SDB, the latter official may appeal
the contracting officer's decision to the head of the contracting
activity. Such an appeal will be made within five working days after
receipt of the contracting officer's rejection.

\(2\) In the case of an appeal, SDB will send the original and duplicate
form, with the appeal noted in Block 14, directly to the head of the
contracting activity with its written reasons for appealing. The
contracting officer will be notified of SDB's appeal by means of a copy
of the written reasons for appealing.

\(3\) The head of the contracting activity shall render a decision on
the appeal (complete Block 15) within three working days after receipt
of same and return the original to SDB and the duplicate to the
contracting officer.

**719.271-7** Reports on procurement actions that are exempted from
screening.

\(a\) [Unilateral and class set-asides]{.underline}. The contracting
officer shall prepare Form USAID 1410-14 as stated in 719.271-6, but
forward only the duplicate copy with the documentation required by Block
5 of the form to SDB. The original will be filed in the contract file.

\(1\) If, upon review of the material submitted under 719.271-7(a)
above, SDB concludes that it would be practicable to accomplish all or a
portion of the procurement involved under section 8(a) subcontracting,
it shall so advise the contracting officer in writing within five days
after receipt of such material.

\(2\) Such advice shall be considered a counter- recommendation and
shall be processed in accordance with 719.271-6(d) and (e).

\(b\) [Public exigency exemption]{.underline}. The contracting officer
shall prepare Form USAID 1410-14 as stated in 719.271-6, but forward
only the duplicate copy with the documentation required by Block 5 of
the form to SDB. In addition to the documentation called for in
719.271-6, the contracting officer shall furnish a copy of his/her
written determination exempting the procurement from screening. The
determination shall cite the pertinent facts which led to his/her
decision. This exemption is not intended to be used as substitute for
good procurement planning and lead-time; SDB will report abuses of this
exemption to the head of the contracting activity for appropriate action
in accordance with 719.271-4(c).

\(c\) [Institution building contract (IBC) exemption]{.underline}. The
contracting officer shall prepare Form USAID 1410-14 as stated in
719.271-6, but forward only the duplicate copy with the documentation
required by Block 5 of the form to SDB.

\(d\) [Personal services contract exemption]{.underline}. Preparation of
Form AID 1410-14 is not required for personal services contracts.

**719.272** Small disadvantaged business policies.

In addition to the requirements in FAR Part 19, Part 726 provides for
contracting and subcontracting with small disadvantaged businesses and
other disadvantaged enterprises based on provisions of the foreign
assistance appropriations acts.

**PART 722 \-- APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITION**

**TABLE OF CONTENTS**

**SUBPART 722.1 \-- BASIC LABOR POLICIES**

**722.103** Overtime.

**722.103-1** Definitions.

**722.103-2** Policy.

**722.103-3** Reserved.

**722.103-4** Approvals.

**722.170** Employment of third country nationals (TCN's) and
Cooperating country nationals (CCN's).

**SUBPART 722.8 \-- EQUAL EMPLOYMENT OPPORTUNITY**

**722.805-70** Procedures.

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.

**SUBPART 722.1 \-- BASIC LABOR POLICIES**

**722.103** Overtime.

**722.103-1** Definitions.

Compensatory time off means leave equal to overtime worked, which,
unless otherwise authorized in a contract or approved by a contracting
officer, must be taken not later than the end of the calendar month
following that in which the overtime is worked.

**722.103-2** Policy

\(a\) 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.

\(b\) When the contracting officer determines it is in the best
interests 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.

**722.103-3** \[Reserved\]

**722.103-4** Approvals.

The contracting officer may make the determinations referred to in
FAR 22.103-4.

**722.170** Employment of third country nationals (TCN's) and
cooperating country nationals (CCN'S).

\(a\) [General]{.underline}. It is USAID policy that cooperating country
nationals (CCN'S) and third country nationals (TCN's), who are hired
abroad for work in a cooperating country under USAID-direct contracts,
generally be extended the same benefits, and be subject to the same
restrictions as TCN's and CCN's employed as direct hires by the USAID
Mission. Exceptions to this policy may be granted either by the Mission
Director or the Assistant Administrator having program responsibility
for the project. (TCN's and CCN's who are hired to work in the United
States shall be extended benefits and subject to restrictions on the
same basis as U.S. citizens who work in the United States.)

\(b\) [Compensation]{.underline}. Compensation, including merit or
promotion increases paid to TCN's and CCN's may not, without the
approval of the Mission Director or the Assistant Administrator having
program responsibility for the project, exceed the prevailing
compensation paid to personnel performing comparable work in the
cooperating country as determined by the USAID Mission. Unless otherwise
authorized by the Mission Director or the Assistant Administrator having
program responsibility for the project, the compensation of such TCN and
CCN employees shall be paid in the currency of the cooperating country.

\(c\) [Allowances and differentials]{.underline}. TCN's and CCN's, hired
abroad for work in a cooperating country, are not eligible for
allowances or differentials under USAID-direct contracts, unless
authorized by the Mission Director or the Assistant Administrator having
program responsibility for the project.

\(d\) [Country and security clearances]{.underline}. The contractor
shall insure that the necessary clearances, including security
clearances, if required, have been obtained for TCN and CCN employees in
accordance with any such requirements set forth in the contract or
required by the USAID Mission, prior to the TCN or CCN starting work
under the contract.

\(e\) [Physical fitness]{.underline}. Contractors are required to insure
that prospective TCN and CCN employees are examined prior to employment
to determine whether the prospective employee meets the minimum physical
requirements of the position and is free from any contagious disease.

\(f\) [Workweek, holidays, and leave]{.underline}. The workweek,
holidays, and leave for TCN and CCN employees shall be the same as for
all other employees of the contractor, under the terms of the contract;
however, TCN and CCN employees are not eligible for home leave or
military leave unless authorized by the Mission Director or the
Assistant Administrator having program responsibility for the project.

\(g\) [Travel and transportation for TCN's and CCN's]{.underline}.
Travel and transportation shall be provided TCN and CCN employees on the
same basis as for all other employees of the contractor, under the terms
of the contract.

\(h\) [Household effects and motor vehicles]{.underline}. USAID will not
provide household effects to TCN and CCN employees; such employees may
ship their household effects and motor vehicles to their place of
employment on the same basis as for all other employees of the
contractor, under the terms of the contract unless they are residents of
the cooperating country.

**SUBPART 722.8 \-- EQUAL EMPLOYMENT OPPORTUNITY**

**722.805-70** Procedures.

\(a\) The procedures in this section apply, as appropriate, for all
contracts excluding construction, which shall be handled in accordance
with (48 CFR) FAR 22.804-2. Contracting officers are responsible for
ensuring that the requirements of (48 CFR) FAR 22.8 and related clauses
are met before awarding any contracts or consenting to subcontracts
subject to these requirements.

\(b\) Representations and Certifications. The first step in ensuring
compliance with these requirements is to obtain all necessary
representations and certifications (Reps and Certs) required by FAR
22.810. The contracting officer must review the Reps and Certs to
determine whether they have been completed and signed as required, and
are acceptable.

\(1\) If any of these Reps and Certs are incomplete or unsigned, the
contracting officer must request that the offeror(s) complete and sign
them, as necessary, unless the initial evaluation of the offeror's
proposal results in the contracting officer's concluding that the
offeror would not, in any event, be within a competitive range
determined in accordance with (48 CFR) FAR 15.306(c), or would not be
selected if award is to be made without discussions. A request as
described in this paragraph (b)(1) constitutes either a clarification
per (48 CFR) FAR 15.306(a) ("resolving minor or clerical errors",
paragraph (a)(2)), or a communication before establishment of
competitive range per (48 CFR) FAR 15.306(b), not a discussion per (48
CFR) FAR 15.306(d).

\(2\) If completed and signed Reps and Certs raise questions concerning
the offeror's compliance with EEO requirements, or if the contracting
officer has information from any other source which calls into question
the offeror's eligibility for award based on this section and (48 CFR)
FAR 22.8, the contracting officer must refer the matter to the cognizant
regional Department of Labor Office of Federal Contract Compliance
Programs (OFCCP) regardless of the estimated value of the contract; only
OFCCP may make a determination of non-compliance with EEO requirements.

\(c\) OFCCP's National Preaward Registry. If the Reps and Certs are
complete, signed, and deemed acceptable, and the contracting officer has
no reason to doubt their accuracy, the contracting officer must then
consult the OFCCP's National Preaward Registry at the internet website
in 48 CFR 22.805(a)(4) (i) to see if the offeror is listed.

\(1\) If the conditions stated in FAR 22.805(a)(4) are met (including
the contract file documentation requirement in paragraph (a)(4)(iii)),
then the Contracting Officer does not need to take any further action in
verifying the offeror's compliance with the requirements of this subpart
and (48 CFR) FAR 22.8.

\(2\) If the offeror does not appear in the National Preaward Registry,
and the estimated amount of the contract or subcontract is expected to
be under \$10 million then the contracting officer may rely on the Reps
and Certs as sufficient verification of the offeror's compliance.

\(3\) If the offeror does not appear in the National Preaward Registry
and the estimated amount of the contract or subcontract is \$10 million
or more, then the contracting officer must request a preaward clearance
from the appropriate OFCCP regional office, in accordance with 48 CFR
22.805(a). If the initial contact with OFCCP is by telephone, the
contracting officer and OFCCP are to mutually determine what information
is to be included in the written verification request. The contracting
officer may need to provide the following information in addition to the
items listed in FAR 22.805(a)(5), if so requested by the OFCCP regional
office:

\(i\) Name, title, address, and telephone number of a contract person
for the prospective contractor;

\(ii\) A description of the type of organization (university, nonprofit,
etc.) and its ownership (private, foreign, state, etc.).

\(iii\) Names and addresses of the organizations in a joint venture (if
any).

\(iv\) Type of procurement (new contract\--RFP or IFB, amendment, etc.)
and the period of the contract.

\(v\) Copy of approved Reps and Certs.

\(d\) In the event that OFCCP reports that the offeror is not in
compliance, negotiations with the offeror shall be terminated.

\(e\) Documentation for the contract file. Every contract file must
contain completed and signed Reps and Certs. The file must clearly show
that these documents have been reviewed and accepted by the contracting
officer. If the Reps and Certs were revised to make them acceptable (see
paragraph (b) of this section), the file must also document what changes
were required and why, and verify that the changes were made. The
contracting officer shall also document the OFCCP National Preaward
Registry review (see paragraph (c)(1) of this section), and, if the
Registry does not include the offeror:

\(1\) For contracts or modifications over \$10,000 but less than \$10
million, the file must contain a statement from the contracting officer
that the contractor is considered in compliance with EEO requirements,
and giving the basis for this statement (see paragraph (c)(2) of this
section). This statement may be in a separate memorandum to the file or
in the memorandum of negotiation.

\(2\) For contracts or modifications of \$10 million or more, the file
must document all communications with OFCCP regarding the offeror's
compliance. Such documentation includes copies of any written
correspondence and a record of telephone conversations, specifying the
name, address, and telephone number of the person contacted, a summary
of the information presented, and any advice given by OFCCP.

\(f\) Documentation in the event of non-compliance. In the event OFCCP
determines that a prospective contractor is not in compliance, a copy of
OFCCP's written determination, and a summary of resultant action taken
(termination of negotiations, notification of offeror and cognizant
technical officer, negotiation with next offeror in competitive range,
resolicitation, etc.) will be placed in the contract file for any
contract which may result, together with other records related to
unsuccessful offers, and retained for at least six months following
award.

# PART 724 \-- PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION

**TABLE OF CONTENTS**

**SUBPART 724.2 \-- FREEDOM OF INFORMATION ACT**

**724.202** Policy

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.

**SUBPART 724.2 \-- FREEDOM OF INFORMATION ACT**

**724.202** Policy.

The U.S. Agency for International Development's policies concerning
implementation of the Freedom of Information Act are codified in 22 CFR
212 (USAID Regulation 12).

**PART 725 \-- FOREIGN ACQUISITION**

**TABLE OF CONTENTS**

**SUBPART 725.1 \-- BUY AMERICAN ACT - SUPPLIES**

**725.170** Exceptions for Foreign Assistance Act functions.

**SUBPART 725.4 \-- Trade Agreements**

**725.403** Exceptions.

**SUBPART 725.70 \-- SOURCE, ORIGIN, AND NATIONALITY**

**725.701** General.

**725.702** Designation of authorized geographic code.

**725.703** Contractor employees.

**725.704** Contract clause - source and nationality requirements.

**725.705** Local procurement - and contract clause.

**725.706** Geographic Source waivers.

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.

**SUBPART 725.1 \-- BUY AMERICAN ACT - SUPPLIES**

**725.170** Exceptions for Foreign Assistance Act functions.

In addition to the exception stated in FAR 25.102 for purchases for use
outside the United States, there is an exception for economic assistance
functions performed under authority of the Foreign Assistance Act.
**(See FAR 25.102)** This exception is stated in Executive Order 11223,
dated May 12, 1965 (30 FR 6635). U.S. procurement restrictions are
applied by USAID, however, as shown elsewhere in this part. These
restrictions are generally tighter than the Buy American Act. As a
general rule, the tighter USAID restrictions will be used. In the case
of certain procurements for use within the United States, the Buy
American provision may be used instead in the interest of uniformity
among Federal Agencies procuring for domestic use.

**SUBPART 725.4 \-- Trade Agreements**

**725.403** Exceptions.

FAR 25.4 establishes procedures for purchases under the Trade Agreements
Act of 1979 (including GATT's Agreement on Government Procurement) and
the North American Free Trade Agreement (NAFTA). Under both such
agreements, USAID's contracts for the purpose of providing foreign
assistance are not subject to the procedures set forth in FAR 25.4. In
contrast, USAID's operating expense-type administrative purchases (i.e.,
purchases for the direct benefit and use of USAID) are subject to the
procedures in FAR 25.4, unless otherwise exempted by one of the
exemptions specified in FAR 25.4.

**SUBPART 725.70 \-- SOURCE, ORIGIN, AND NATIONALITY**

**725.701** General.

USAID's source, origin and nationality requirements for program-funded
contracts and subcontracts are established in 22 CFR part 228, Rules on
Source, Origin and Nationality for Commodities and Services Financed by
USAID. These policies as they apply to subcontracts and purchases under
USAID program-funded contracts have been incorporated into the contract
clauses referenced in 725.704 and 725.705 of this subpart.

**725.702** Designation of authorized geographic code.

\(a\) The authorized geographic code or codes for an USAID contract
shall be specified in the Schedule of each contract and shown on its
cover page. If no geographic code is specified, the authorized code will
be deemed to be Geographic Code 000, the U.S.

\(b\) Individual country and geographic codes are defined in the Agency
Geographic Code Book.

**725.703** Contractor employees.

\(a\) Except as specifically provided in paragraph (b) of this section,
there are no nationality restrictions on employees or consultants of
either contractors or subcontractors providing services under an
USAID-financed contract, except that they must be citizens of a
Geographic Code 935 country, or non-U.S. citizens lawfully admitted for
permanent residence in the U.S.

\(b\) For USAID-financed construction projects where the contract is
awarded to a U.S. firm, at least half of the supervisors, and any other
specified key personnel, working at the project site must be U.S.
citizens or permanent legal residents of the United States. Exceptions
may be authorized by the Mission Director in writing if special
circumstances make compliance impractical.

**725.704** Source, origin and nationality requirements - Contract
clause.

The clause in 752.225-70 is required in all USAID program-funded
solicitations and in all program-funded contracts under which the
contractor may procure goods or services.

**725.705** Local procurement - contract clause.

Local procurement may be undertaken in accordance with the provisions of
22 CFR 228.40. All contracts involving performance overseas shall
contain the clause in 752.225-71.

**725.706** Geographic source waivers.

\(a\) Authority to waive source, origin, nationality, and transportation
services requirements is set forth in Chapters 103 and 310 of the ADS.

\(b\) The contracting officer shall insert the authorized geographic
code based on an approved geographic source waiver in the Schedule of
the contract as provided for in 725.702. In addition, the contracting
officer shall place a copy of any approved geographic source waiver in
the official contract file.

**PART 726 \-- OTHER SOCIOECONOMIC PROGRAMS**

**TABLE OF CONTENTS**

**SUBPART 726.70** **\-- Disadvantaged Enterprises Program**

**726.7001** Scope of subpart

**726.7002** Definitions.

**726.7003** Policy.

**726.7004** Determination to use other than full and open competition.

**726.7005** Exceptions.

**726.7006** Determination of status as a small disadvantaged business.

**726.7007** Requirement for subcontracting with disadvantaged
enterprises.

**726.7008** Limitations on subcontracting.

**Subpart 726.71\--Relocation of U.S. Businesses, Assistance to Export
Processing Zones, Internationally Recognized Workers' Rights**

**726.7101** Policy.

**726.7102** PD 20 provision.

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.

**726.7001** Scope of subpart.

This subpart supplements FAR part 19 and implements the provisions of
certain foreign assistance appropriations acts (see section
706.302-71(a)) concerning disadvantaged enterprises which require, in
general, that not less than ten percent of the aggregate amount made
available for development assistance and for assistance for famine
recovery and development in Africa shall be made available to
disadvantaged enterprises. See part 705 and part 706 for additional
provisions on publicizing contract actions and using other than full and
open competition.

**726.7002** Definitions.

\(a\) "Controlled by socially and economically disadvantaged
individuals" means management and daily business are controlled by one
or more such individuals.

\(b\) "Disadvantaged enterprises" means 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; (See FAR 19.001)

\(2\) Institutions designated by the Secretary of Education, pursuant to
34 CFR 608.2, as historically black colleges and universities;

\(3\) Colleges or 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.

\(c\) "Economically disadvantaged individuals" has the same meaning as
in FAR 19.001, except that the term includes women. **(See [FAR
19.001](http://www.usaid.gov/cgi-bin/goodbye?http://www.arnet.gov/far/))**

\(d\) "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.

\(e\) "Small disadvantaged business" means a small business concern (as
defined in FAR 19.001) that is at least 51 percent unconditionally owned
by one or more individuals who are both socially and economically
disadvantaged (as defined in this section), or a publicly owned business
that has at least 51 percent of its stock unconditionally owned by one
or more socially and economically disadvantaged individuals (as defined
in this section) and that has its management and daily business
controlled by one or more such individuals. **(See [FAR
19.001](http://www.usaid.gov/procurement_bus_opp/procurement/cib/))**

\(f\) "Socially disadvantaged individuals" has the same meaning as in
FAR 19.001, except that the term includes women.

**726.7003** Policy.

USAID promotes participation in its projects by disadvantaged
enterprises. In order to achieve the goals in foreign assistance
appropriation acts, contracts which are to be funded from amounts made
available from the appropriations cited in section 706.302-71(a)(1) are
subject to the following policies:

\(a\) Authority in section 8(a) of the Small Business Act \[15 U.S.C.
637(a)\] shall be used to the maximum practicable extent;

\(b\) Other than full and open competition in contracting with certain
disadvantaged enterprises shall be authorized in accordance with
706.302-71;

\(c\) Subcontracting with disadvantaged enterprises shall be carried out
in accordance with subpart 726.7007;

\(d\) In accordance with 705.207, the Office of Small and Disadvantaged
Business Utilization (OSDBU) shall be notified at least seven business
days before publicizing a proposed procurement in excess of \$100,000.

**726.7004** Determination to use other than full and open competition.

The determinations required in order to use the authority under
706.302-71 for other than full and open competition shall be made by the
contracting officer in consultation with the Director of OSDBU. In the
event of a disagreement between the contracting officer and the Director
of OSDBU, the head of the contracting activity shall make the final
determination.

**726.7005** Exceptions.

The notification requirement in 705.207 and the subcontracting
requirement in 726.7007 are based on statutory requirement and may not
be deviated from under the provisions of Subpart 701.4. By statute, the
Administrator or designee may determine that these requirements do not
apply to a particular contract or category of contracts. The M/OP
Director has been designated to make such determinations. One such
determination concerning subcontracting is set out in 726.7007.

**726.7006** Determination of status as a disadvantaged enterprise.

\(a\) To be eligible for an award under AIDAR 706.302-71 providing for
other than full and open competition, the contractor must qualify, as of
both the date of submission of its offer and the date of contract award,
as a small disadvantaged business (as defined in 726.7002), an
historically black college or university, a college or university in
which more than 40 percent of the students are Hispanic Americans, or a
private voluntary organization controlled by individuals who are
socially and economically disadvantaged. The contracting officer shall
insert the provision at 752.226-1 in any solicitation or contract to be
awarded under the provisions of 706.302-71.

\(b\) The contracting officer shall accept an offeror's representations
and certifications under the provisions referenced above that it is a
small disadvantaged business unless he or she determines otherwise based
on information contained in a challenge of the offeror's status by the
Small Business Administration or another offeror, or otherwise available
to the contracting officer.

**726.7007** Requirement for subcontracting with disadvantaged
enterprises.

\(a\) In addition to the requirements in FAR Subpart 19.7, any new
contract or modification which constitutes new procurement (except for a
contract or modification with a disadvantaged enterprise as defined in
726.7002) with respect to which more than \$500,000 is to be funded with
amounts made available from the appropriations cited in section
706.302-71(a)(1) shall contain a provision requiring that not less than
ten percent of the dollar value of the contract must be subcontracted to
disadvantaged enterprises, including disadvantaged enterprises which are
not small. **(See [FAR
19.7](http://www.usaid.gov/procurement_bus_opp/procurement/cib/))**

\(b\) This requirement does not apply when the contracting officer, with
the concurrence of the Director of OSDBU, certifies there is no
realistic expectation of U.S. subcontracting opportunities and so
documents the file. If the contracting officer and the Director of OSDBU
do not agree, the determination will be made by the head of the
contracting activity. See 726.7005 for guidance on other potential
exceptions.

\(c\) The contracting officer shall insert the clause in 752.226-2 in
any solicitation or contract as provided in paragraph (a) of this
section, unless exempted in accordance with the provisions of paragraph
(b) of this section.

**726.7008** Limitations on subcontracting.

The contracting officer shall insert the clause at 752.226-3,
Limitations on Subcontracting, in any solicitation and contract for
technical assistance services which is to be awarded under the authority
of 706.302-71.

**Subpart 726.71\--Relocation of U.S. Businesses, Assistance to Export
Processing Zones, Internationally Recognized Workers' Rights**

**726.7101** Policy.

USAID Policy Determination (PD) 20, "Guidelines to Assure USAID Programs
do not Result in the Loss of Jobs in the U.S." implemented statutory
prohibitions on expenditure of appropriated funds. The PD contains a
standard provision for inclusion in USAID-funded grants and inter-agency
agreements and indicates that when the PD applies to a contract,
appropriate provisions covering the subject matter are to be included.
When the provisions of PD 20 do apply to a contract, the cognizant
technical office shall provide to the contracting officer appropriate
language tailored to the specific circumstances for the contract
statement of work, or if applicable to the circumstances, the provision
included in the PD (see Sec. 726.7102) may be used as a clause in the
contract. The provision is not required in subcontracts.

**726.7102** PD 20 provision.

Relocation of U.S. Businesses, Assistance to Export Processing Zones,
Internationally Recognized Workers' Rights (Jan 1994)

No funds or other support provided hereunder may be used in an activity
reasonably likely to involve the relocation or expansion outside of the
United States of an enterprise located in the United States if non-U.S.
production in such relocation or expansion replaces some or all of the
production of, and reduces the number of employees at, said enterprise
in the United States.

No funds or other support provided hereunder may be used in an activity
the purpose of which is the establishment or development in a foreign
country of any export processing zone or designated area where the
labor, environmental, tax, tariff, and safety laws of the country would
not apply, without the prior approval of USAID.

No funds or other support provided hereunder may be used in an activity
which contributes to the violation of internationally recognized rights
of workers in the recipient country, including those in any designated
zone or area in that country.

AIDAR SUBCHAPTER E \-- GENERAL\
CONTRACTING REQUIREMENTS

**PART 728 \-- BONDS AND INSURANCE**

**TABLE OF CONTENTS**

**SUBPART 728.1 \-- BONDS**

**728.105-1** Advance payment bonds.

**SUBPART 728.3 \-- INSURANCE [See also CIBs 01-14 (DBA) and 99-07
(MEDEVAC)](http://www.usaid.gov/procurement_bus_opp/procurement/cib/)**

**728.305-70** Overseas worker's compensation and war-hazard
insurance\--waivers and USAID insurance coverage.

**728.307-2** Liability.

**728.307-70** Medical Evacuation (MEDEVAC) Services (MAR 1993)

**728.309** Contract clause for worker's compensation insurance.

**728.313** Contract clauses for insurance of transportation or
transportation-related services.

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.

**SUBPART 728.1 \-- BONDS**

**728.105-1** Advance payment bonds.

\(a\) Generally, advance payment bonds will not be required in
connection with USAID contracts containing an advance payment provision.
In lieu thereof, contracting officers will follow procedures set forth
in FAR 32.409-3. **(See [FAR
32.409](http://www.usaid.gov/cgi-bin/goodbye?http://www.arnet.gov/far/))**

\(b\) 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 USAID 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 Office of Procurement, Policy Division
(M/OP/P).

\(c\) 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. 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.

**SUBPART 728.3 \-- INSURANCE**

**728.305-70** Overseas worker's compensation and war-hazard insurance
\-- waivers and USAID insurance coverage.

\(a\) Upon the recommendation of the USAID Administrator, the Secretary
of Labor may waive the applicability of the Defense Base Act (DBA) with
respect to any contract, subcontract, or subordinate contract, work
location, or classification of employees. Either the contractor or USAID
can request a waiver from coverage. Such a waiver can apply to any
employees who are not U.S. citizens, not residents of, or not hired in
the United States. Waivers requested by the contractor are submitted to
the contracting officer for approval and further submission to the
Department of Labor, which grants the waiver. Application for a waiver
is submitted on Labor Department Form BEC 565. USAID has a number of
blanket waivers already in effect for certain countries that are
applicable to its direct contracts with contractors performing in such
countries. Where such waivers are granted from coverage under the DBA,
the waiver is conditioned on providing other workmen's compensation
coverage to employees to which the waiver applies. Usually this takes
the form of securing workmen's compensation coverage of the country
where work will be performed or of the country of the employee's
nationality, whichever offers greater benefits. The Department of Labor
has granted partial blanket waivers of DBA coverage applicable to
USAID-financed contracts performed in certain countries, 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 DBA
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. Information as to whether a
DBA Waiver has been obtained by USAID for a particular country may be
obtained from the cognizant USAID contracting officer.

\(b\) 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, USAID,
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.

**728.307-2** Liability.

(a)-(b) \[Reserved\]

\(c\) [Automobile liability]{.underline}. In order to ensure that
private automobiles used by contractor employees stationed overseas
under an USAID contract are properly insured, USAID 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 USAID-direct contracts involving performance
overseas. **(See [FAR
52.228](http://www.usaid.gov/cgi-bin/goodbye?http://www.arnet.gov/far/))**

**728.307-70** Medical Evacuation (MEDEVAC) Services (MAR 1993)

The Contracting Officer shall insert the clause at 752.228-70 in all
contracts which require performance by contractor employees overseas.

**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, USAID has
contracted with an insurance carrier to provide the required insurance
for all USAID contractors. It is therefore necessary to supplement the
FAR clause at 52.228-3 with the additional coverage specified in AIDAR
752.228-3. The coverage specified in AIDAR 752.228-3 shall be used in
addition to the coverage specified in FAR 52.228-3 in all USAID-direct
contracts involving performance overseas. **(See [FAR
52.228](http://www.usaid.gov/cgi-bin/goodbye?http://www.arnet.gov/far/))**

**728.313** Contract clauses for insurance of transportation or
transportation-related services.

\(a\) USAID 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. USAID has
therefore established a supplementary preface to the clause at FAR
52.228-9. **(See [FAR
52.228](http://www.usaid.gov/cgi-bin/goodbye?http://www.arnet.gov/far/))**
This supplementary preface is set forth in AIDAR 752.228-9, and is
required for use in any USAID-direct contract where marine insurance is
necessary or appropriate.

**PART 731 \-- CONTRACT COST PRINCIPLES AND PROCEDURES**

**TABLE OF CONTENTS**

**SUBPART 731.1 \-- APPLICABILITY**

**731.109** Advance agreements.

**SUBPART 731.2 \-- CONTRACTS WITH COMMERCIAL ORGANIZATIONS**

**731.205-6** Compensation for personal services.

**731.205-46** Travel costs.

**731.205-70** Overseas recruitment incentive.

**731.205-71** Salary supplements for Host Government employees.

**SUBPART 731.3\--CONTRACTS WITH EDUCATIONAL INSTITUTIONS**

**731.370** Predetermined fixed rates for indirect costs.

**731.371** Compensation for personal services.

**731.372** Fringe benefits.

**731.373** Overseas recruitment incentive.

**SUBPART 731.7 \-- CONTRACTS WITH NONPROFIT ORGANIZATIONS**

**731.770** OMB Circular A-122; cost principles for nonprofit
organizations; USAID implementation.

**731.771** Bid and proposal costs.

**731.772** Compensation for personal services.

**731.773** Independent research and development costs.

**731.774** Overseas recruitment incentive.

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.

**SUBPART 731.1 \-- APPLICABILITY**

**731.109** Advance agreements. [**See also CIB 92-17, Indirect
Rates**](http://www.usaid.gov/procurement_bus_opp/procurement/cib/)

Advance agreements on selected costs may be negotiated with USAID
contractors by the Overhead and Special Cost and Contract Closeout
Branch, Office of Procurement. Such advance understandings will be
applicable to all USAID contracts with that contractor.

**SUBPART 731.2 \-- CONTRACTS WITH COMMERCIAL ORGANIZATIONS**

**731.205-6** Compensation for personal services.

\(a\) General. When establishing the workweek for employees overseas the
contractor will take local and USAID Mission practice into account and
will insure that the workweek is compatible with that of those USAID
Mission and Cooperating Country employees with whom the contractor will
be working.

\(b\) Reasonableness. ADS Chapter 302.5.3 states USAID policy regarding
personnel compensation exceeding the maximum annual rate for an
Executive Service level ES-6. Consistent with this policy, any
employee's or consultant's base salary plus overseas recruitment
incentive, if any (see 731.205-70), subject to this policy will be
allowable under USAID-direct contracts only if approved in accordance
with the essential procedures in ADS chapter E302.5.3. USAID policies on
compensation of third country national or cooperating country national
employees are set forth in AIDAR 722.170.

See also CIB 02-02, ES-06 rate

\(c\) through (l) \[Reserved\].

\(m\) Fringe benefits. USAID's policies on certain fringe benefits
related to overseas service, including but not limited to leave,
holidays, differentials and allowances, etc. are set forth in the
appropriate contract clauses in AIDAR Subpart 752.70.

[**See also CIB 96-15, Cost
Allowability**](http://www.usaid.gov/procurement_bus_opp/procurement/cib/)

**731.205-46** Travel costs.

It is USAID policy to require prior written approval of international
travel by the Contracting Officer. See AIDAR 752.7032 for specific
requirements and procedures.

**731.205-70** Overseas recruitment incentive.

(Note: the term "employee" as used in this section means an employee who
is a U.S. citizen or a U.S. resident alien.)

\(a\) If a contractor employee serving overseas under a contract does
not qualify for the exemption for overseas income provided under Section
911 of the U.S. Internal Revenue Code (26 U.S.C. 911), such employee is
eligible to receive an overseas recruitment incentive (ORI), to the
extent the ORI: is authorized by the contractor's normal policy and
practice; is deemed necessary by the contractor to recruit and retain
qualified employees for overseas services; and does not exceed 10% of
the base salary of the employee from date of arrival at overseas post to
begin assignment to date of departure from post at the end of
assignment. ORI is to be paid as a single payment at the end of the
employee tour of duty overseas. The contractor shall take all reasonable
and prudent steps to ensure that ORI is not paid to any employee who has
received the IRS Section 911 exemption.

\(b\) 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 USAID 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 the subcontractor's inability to collect refunds from
eligible employees shall be used as a basis to excuse subsequent refunds
by the contractor to USAID.

**731.205-71** Salary supplements for Host Government employees.

\(a\) Definitions. (1) A Host Government (HG) employee is a person paid
by the HG, occupying an established position, either temporary or
permanent, part-time or full-time, within a HG institution.

\(2\) An HG institution is an organization in which the government owns
at least a fifty percent share or receives at least fifty percent of its
financial support from the government.

\(b\) General. Salary supplement occurs when payments are made that
augment an HG employee\'s base salary or premiums, overtime, extra
payments, incentive payment and allowances for which the HG employee
would qualify under HG rules or practices for the performance of his/her
regular duties or work performed during his/her 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 subject to the provisions in USAID policy referenced in
paragraph (c) of this section.

\(c\) Salary supplements are eligible for USAID financing only when
authorized in accordance with USAID policy established in the cable
State 119780 dated April 15, 1988 (on ADS-CD under USAID Handbooks,
Handbook 1). If salary supplements have been authorized in a particular
case, the Contracting Officer shall provide written approval to the
contractor in order for such costs to be eligible. Any specific
requirements or limitations shall be specified in the approval.

\(d\) Contracting Officers shall insert the Clause at 752.231-71 in all
contracts in which there is a possibility of the need of HG employees.
It should also be inserted in all subsequent subcontracts.

**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 USAID to use predetermined fixed rates in determining the
indirect costs applicable under contracts with educational institutions.

**731.371** Compensation for personal services.

\(a\) General. When establishing the workweek for employees overseas the
contractor will take local and USAID Mission practice into account and
will ensure that the workweek is compatible with that of those USAID
Mission and Cooperating Country employees with whom the contractor will
be working.

\(b\) Salaries and wages.

\(1\) ADS Chapter 302.5.3 states USAID policy regarding personnel
compensation exceeding the maximum annual rate for an Executive Service
level ES-6. Consistent with this policy, any employee's or consultant's
base salary plus overseas recruitment incentive, if any (see
731.205-70), subject to this policy will be allowable under USAID-direct
contracts only if approved in accordance with the essential procedures
in ADS chapter E302.5.3**.**

> See also CIB 02-02 for ES-06 rate

\(2\) In considering consulting income as a factor when determining
allowable salary for service under a contract:

\(i\) For faculty members working under annual appointments, salary for
service under the contract may include the employee's on-campus salary
plus "consulting income" (that is, income from employment other than the
employee's regular on-campus appointment, excluding business or other
activities not connected with the employee's profession) earned during
the year preceding employment under the contract.

\(ii\) For faculty members working under academic year appointments,
salary for service under the contract may include the employee's
on-campus academic year salary plus "consulting income" as defined above
earned during the year proceeding employment under the contract, or
salary for service under the contract may be derived by annualizing the
academic year salary (in which case "consulting income" may not be
included).

\(3\) USAID policies on compensation of third country national or
cooperating country national employees are set forth in AIDAR 722.170.

**731.372** Fringe benefits.

USAID's policies on certain fringe benefits related to overseas service,
including but not limited to leave, holidays, differentials and
allowances, etc. are set forth in the appropriate contract clauses in
AIDAR 752.70.

**731.373** Overseas recruitment incentive.

USAID's policies regarding overseas recruitment incentives are set forth
in AIDAR 731.205-70. These policies are also applicable to contracts
with an educational institution.

**SUBPART 731.7 \-- CONTRACTS WITH NONPROFIT ORGANIZATIONS**

**731.770** OMB Circular A-122, Cost Principles for Nonprofit
Organizations; USAID 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 Close-Out Branch,
Office of Procurement (OCC) provides staff assistance to the Director
concerning OMB Circular A-122. OCC 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 OMB 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 constitutes 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 of 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."

**731.771** Bid and proposal costs.

Pending the establishment of Government- wide principles in Attachment B
of OMB Circular A-122, USAID 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.

The policies set for in AIDAR 731.205-6 are also applicable to contracts
with a nonprofit organization.

**731.773** Independent research and development costs.

Pending establishment of Government-wide principles in Attachment B of
OMB Circular A-122, USAID will apply the cost principles at FAR
31.205-18 for independent research and development costs. **(See [FAR
31.205](http://www.usaid.gov/cgi-bin/goodbye?http://www.arnet.gov/far/))**

**\
731.774** Overseas recruitment incentive.

USAID's policies regarding overseas recruitment incentives are set forth
in AIDAR 731.205-70. These policies are also applicable to contracts
with a nonprofit organization.

**PART 732 \-- CONTRACT FINANCING**

**TABLE OF CONTENTS**

**SUBPART 732.1 - General**

**732.111** Contract clauses.

**SUBPART 732.4 \-- ADVANCE PAYMENTS**

**732.401** Statutory authority.

**732.402** General

**732.403** Applicability.

**732.406-70** Agency-issued letters of credit.

**732.406-71** Circumstances for use of an LOC.

**732.406-72** Establishing an LOC.

**732.406-73** LOC contract clause.

**732.406-74** Revocation of the LOC.

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.

**PART 732 \-- CONTRACT FINANCING**

**Subpart 732.1\--General**

**732.111** Contract clauses.

\(a\) \[Reserved\]

\(b\) USAID may obtain short term and (less frequently) long-term
indefinite quantity professional services through Agency-specific
indefinite quantity contracts that are a combination of contract types.
Rather than using the fixed-price payment clauses for indefinite
quantity contracts, when these IQCs provide for fixed daily rates (which
may include wages, overhead, general and administrative expenses, fringe
benefits, and profit) for services and reimbursement of other direct
costs (such as travel and transportation) at cost, then the payment
clause at 752.232-7 shall be used in the contract.

**SUBPART 732.4 \-- ADVANCE PAYMENTS**

**732.401** Statutory authority.

\(a\) Sections 635 (b) of the Foreign Assistance Act and Executive Order
11223, May 12, 1965, 30 FR 6635, permit the making of advance payments
with respect to functions authorized by the Foreign Assistance Act.
Advance payments may also be made under section 305 of the Federal
Property and Administrative Services Act of 1949, which provides
authority, not otherwise available to USAID, to take a paramount lien.

\(b\) The Act of August 28, 1968, Public Law 85-804 does not apply to
USAID.

**\
732.402** General

(a)-(d) \[Reserved\]

(e)(1) U.S. Dollar advances to for-profit organizations, including
advances for disbursement to grantees, shall be processed and approved
in accordance with ADS 583.5.6b.

\(2\) All local currency advances to for-profit organizations require
the approval of the Head of the Contracting Activity, after consultation
with the Mission Controller.

**732.403** Applicability.

References to nonprofit contracts with nonprofit educational or research
institutions for experimental, research and development work include
nonprofit contracts with nonprofit institutions for: (a) technical
assistance services provided to or for another country or countries, and
(b) projects which concern studies, demonstrations and similar
activities related to economic growth or the solution of social problems
of developing countries.

**732.406-70** Agency-Issued letters of credit.

This subsection provides guidance on use of USAID issued letters of
credit (LOC) for advance payments.

**732.406-71** Circumstances for use of an LOC.

An LOC shall be used under the following circumstances:

\(a\) The contracting officer has determined that an advance payment is
necessary and appropriate in accordance with this subpart and the
guidance provided in FAR 32.4;

\(b\) USAID has, or expects to have, a continuing relationship of at
least one year with the recipient organization, and the annual amount
required for advance financing will be at least \$50,000; and

\(c\) The Office of Financial Management, Cash Management and Payment
Division (FM/CMP) agrees that the LOC payment method is appropriate.

**732.406-72** Establishing an LOC.

\(a\) While the contract will provide for the use of an LOC when it is
justified under subsection 732.406-71, the LOC is a separate agreement
between the contractor and FM/CMP, acting on behalf of the USAID
Controller. The terms and conditions of the LOC are established by
FM/CMP/GIB.

\(b\) In order to establish or amend an LOC, the contracting officer
shall provide FM/CMP with the following information:

\(1\) The name of the Contractor;

\(2\) The official USAID contract number;

\(3\) The obligated amount of the contract;

\(4\) The budget plan code for the obligated funds;

\(5\) The effective date and estimated completion date.

\(6\) The contractor Federal Tax Identification Number.

This information should be provided in writing to FM/CMP together with a
request to establish or amend an LOC as early in the negotiation cycle
as possible.

\(c\) FM/CMP will prepare the LOC in accordance with USAID's LOC
procedures; issue or amend and maintain the LOC in accordance with its
terms and USAID procedures and regulations; and provide the contracting
officer(s) a copy of each LOC and any other material governing its use
at the time the LOC is issued or when it is amended or modified.

**732.406-73** LOC contract clause.

\(a\) If payment is to be provided by LOC, the contract shall contain
the clause in subsection 752.232-70.

\(b\) Contracting officers shall ensure that an appropriate (48 CFR) FAR
payment clause is also included in the contract, in the event that the
LOC is revoked pursuant to 732.406-74.

**732.406-74** Revocation of the LOC.

If during the term of the contract FM/CMP believes that the LOC should
be revoked, FM/CMP may, after consultation with the cognizant
contracting officer(s) and GC, revoke the LOC by written notification to
the contractor. A copy of any such revocation notice will immediately be
provided to the cognizant contracting officer(s).

**PART 733 \-- PROTESTS, DISPUTES AND APPEALS**

**TABLE OF CONTENTS**

**SUBPART 733.1 \-- Protests**

**733.101** Definitions.

**733.103-70** Protests to the Agency

**733.103-71** Filing of protest.

**733.103-72** Responsibilities.

**733.103-73** Protests excluded from consideration.

**733.72 \-- USAID Procedures for Disputes and Appeals**

**733.270-1** Designation of Armed Services Board of Contract Appeals
(ASBCA) to hear and determine appeals under USAID contracts.

**733.270-2** Special Procedures Regarding Contract Disputes Appeals
Promulgated Pursuant to Paragraph 2 of the Administrator's Designation.

Authority: Sec. 621. Pub. L. 87-195, 73 Stat. 445 (22 U.S.C. 2381), as
amended: E.O. 12173, Sept. 29, 1979 44 FR 56673, 3 CFR 1979 Comp. p.
435.

**SUBPART 733.1 \-- PROTESTS**

**733.101** Definitions.

(**a**) All "days" referred to in this subpart are deemed to be
"calendar days", in accordance with FAR 33.101. In the case of USAID
overseas offices with non-Saturday/Sunday weekend schedules, the
official post weekend applies in lieu of Saturday and Sunday.

(**b**) All other terms defined in FAR 33.101 are used herein with the
same meaning.

**733.103-70** Protests to the agency.

USAID follows the agency protest procedures in FAR 33.103, as
supplemented by this section.

**733.103-71** Filing of protest.

\(a\) Protests must be in writing and addressed to the Contracting
Officer for consideration by the M/OP Director.

\(b\) A protest shall include, in addition to the information required
in FAR 33.103(d)(2), the name of the issuing Mission or office.

\(c\) Material submitted by a protester will not be withheld from any
interested party outside the government or from any government agency if
the M/OP Director decides to release such material, except to the extent
that the withholding of such information is permitted or required by law
or regulation.

**733.103-72** Responsibilities.

\(a\) M/OP Director. The decision regarding an agency protest shall be
made by the M/OP Director within 30 days from the date a proper protest
is filed unless the M/OP Director determines that a longer period is
necessary to resolve the protest, and so notifies the protester in
writing. The M/OP Director shall make his or her decision after
personally reviewing and considering all aspects of the case as
presented in the protest itself and in any documentation provided by the
contracting officer, and after obtaining input and clearance from the
Assistant General Counsel for Litigation and Enforcement (GC/LE). The
decision shall be in writing and constitutes the final decision of the
Agency.

\(b\) Contracting Officer. The contracting officer is responsible for
requesting an extension of the time for acceptance of offers as
described in FAR 33.103(f)(2).

**733.103-73** Protests excluded from consideration.

\(a\) Contract administration. Disputes between a contractor and USAID
are resolved pursuant to the disputes clause of the contract and the
Contract Disputes Act of 1978.

\(b\) Small business size standards and standard industrial
classification. Challenges of established size standards or the size
status of particular firms, and challenges of the selected standard
industrial classification are for review solely by the Small Business
Administration.

\(c\) Procurement under Section 8(a) of the Small Business Act.
Contracts are let under Section 8(a) of the Small Business Act to the
Small Business Administration solely at the discretion of the
Contracting Officer, and are not subject to review.

\(d\) Protests filed in the General Accounting Office (GAO). Protests
filed with the GAO will not be reviewed.

\(e\) Procurements funded by USAID to which USAID is not a party. No
protest of a procurement funded by USAID shall be reviewed unless USAID
is a party to the acquisition agreement.

\(f\) Subcontractor protests. Subcontractor protests will not be
considered.

\(g\) Judicial proceedings. Protests will not be considered when the
matter involved is the subject of litigation before a court of competent
jurisdiction or when the matter involved has been decided on the merits
by a court of competent jurisdiction.

\(h\) Determinations of responsibility by the contracting officer. A
determination by the contracting officer that a bidder or offeror is or
is not capable of performing a contract will not be reviewed by the M/OP
Director.

\(i\) Small Business Certificate of Competency Program. Any referral
made to the Small Business Administration pursuant to section 8(b)(7) of
the Small Business Act, or any issuance of, or refusal to issue, a
certificate of competency under that section will not be reviewed by the
M/OP Director.

**SUBPART 733.27 \-- USAID PROCEDURES FOR DISPUTES AND APPEALS**

**733.270-1** Designation of Armed Services Board of Contract Appeals
(ASBCA) to hear and determine appeals under USAID contracts.

\(a\) The ASBCA is hereby designated the authorized representative of
the Administrator of the U.S. Agency for International Development
(USAID) in hearing, considering, and determining as fully and finally as
might the Administrator, appeals by contractors from decisions on
disputed questions taken pursuant to the provisions of contracts
requiring the determination of such appeals by the Administrator or
his/her duly authorized representative or Board.

\(b\) In acting under this designation, the ASBCA will follow such rules
and procedures as are or may be prescribed for the conduct of Defense
Department contract appeal cases, except for the rules entitled
"Forwarding of Appeals" (Rule 3) and "Duties of the Contracting Officer"
(Rule 4), which subjects will be governed by procedures to be
promulgated by the General Counsel of USAID with approval of the
Chairman of the ASBCA.

\(c\) The General Counsel of USAID will assure representation of the
interests of the Government in proceedings before the ASBCA.

\(d\) All officers and employees of USAID will cooperate with the ASBCA
and Government counsel in the processing of appeals so as to assure
their speedy and just determination.

**733.270-2** Special Procedures Regarding Contract Disputes Appeals
Promulgated Pursuant to Paragraph 2 of the Administrator's Designation.

\(a\) The following rules will apply, in lieu of Rules 3 and 4(a) of the
ASBCA, to contract dispute appeals to the Administrator of the USAID or
his/her authorized representative which are docketed with that Board.

\(b\) Rule 3 (USAID). Forwarding of Appeals. When a notice of appeal in
any form has been received by the contracting officer, he/she shall
endorse thereon the date of mailing (or date of receipt, if otherwise
conveyed) and within 10 days shall forward said notice of appeal to the
Board with a copy to the USAID General Counsel in Washington, D.C.
Following receipt by the Board of the original notice of an appeal
(whether through the contracting officer or otherwise), the contractor,
the contracting officer, and the USAID General Counsel will be promptly
advised of its receipt, and the contractor will be furnished a copy of
these rules.

\(c\) Rule 4 (USAID). Preparation, Contents, Organization, Forwarding,
and Status of Appeal File (Supersedes Rule 4, "Duties of Contracting
Officer" of the ASBCA rules in effect on April 1, 1980).

\(d\) Duties of Contracting Officer. Within 30 days of receipt of an
appeal or advice that an appeal has been filed, the contracting officer
shall assemble and transmit to the USAID General Counsel in Washington,
D.C., two copies of all documents pertinent to the appeal, including:

\(1\) The decision and findings of fact from which appeal is taken;

\(2\) The contract, including specifications and pertinent amendments,
plans and drawings;

\(3\) All correspondence between the parties pertinent to the appeal,
including the letter or letters of claim in response to which the
decision was issued;

\(4\) All transcripts of any testimony taken during the course of
proceedings, and affidavits or statements of any witnesses on the matter
in dispute made prior to the filing of the notice of appeal with the
Board; and

\(5\) Any additional information considered pertinent.

\(e\) The General Counsel will compile the appeal file from such
documents, which file must contain the items enumerated in (d)(1)
through (5) of this section and will promptly, and in any event within
65 days after the appeal is docketed by the Board, transmit the appeal
file to the Board. The General Counsel will notify the appellant when
he/she has compiled the appeal file, will provide him/her with a list of
its contents, and will afford him/her an opportunity to examine the
complete file at the office of the Board and, if the General Counsel
deems it appropriate, at any overseas location, for the purpose of
satisfying himself/herself as to the contents, and furnishing or
suggesting any additional documentation deemed pertinent to the appeal.
After receipt of the foregoing file, as it may be augmented at the time
of receipt, the Board will promptly advise the parties.

######  AIDAR SUBCHAPTER F \-- SPECIAL CATEGORIES OF CONTRACTING

**TABLE OF CONTENTS**

**PART 734 \-- MAJOR SYSTEM ACQUISITION**

**734.002-70** USAID Policy.

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.

**734.002-70** USAID Policy.

In order for an USAID acquisition to be considered a major system
acquisition it must meet the criteria of OMB Circular A-109 and FAR Part
34, and must have an estimated value of \$15 million or more during the
first year of the contract. All major systems acquisition must be
approved in advance by the M/OP Director.

**PART 736 \-- CONSTRUCTION AND ARCHITECT - ENGINEER CONTRACTS**

**TABLE OF CONTENTS**

**SUBPART 736.6 \-- ARCHITECT - ENGINEER SERVICES**

**736.602-2** Evaluation boards.

**736.602-3** Evaluation board functions.

**736.602-4** Selection authority.

**736.602-5** Short selection procedure for procurements not to exceed
the simplified acquisition threshold.

**736.603** Collecting data on and appraising firms' qualifications.

**736.605** Government cost estimate for architect-engineer work.

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.

**SUBPART 736.6 \-- ARCHITECT - ENGINEER SERVICES**

**736.602-2** Evaluation boards.

\(a\) - (b) \[Reserved\]

\(c\) Each evaluation board will include a representative of the
Contracting Officer and, as appropriate, the cognizant bureau.

**736.602-3** Evaluation board functions.

Agency architect-engineer evaluation boards shall perform the following
functions:

\(a\) Prepare a selection memorandum recommending no less than three
firms which are considered most highly qualified to perform the required
services for submission to the head of the contracting activity for
his/her approval. This selection memorandum shall include the
information specified in 736.602-3(c).

\(b\) In evaluating architect-engineer firms, the architect-engineer
evaluation board shall apply the following criteria, other criteria
established by Agency regulations, and any criteria set forth in the
public notice on a particular contract:

\(1\) Specialized experience of the firm (including each member of joint
venture or association) with the type of service required;

\(2\) Capacity of the firm to perform the work (including any
specialized services) within the time limitations;

\(3\) Past record of performance on contracts with USAID or other
Government agencies and private industry with respect to such factors as
control of costs, quality of work, and ability to meet schedules, to the
extent such information is available;

\(4\) Ability to assign an adequate number of qualified key personnel
from the organization, including a competent supervising representative
having considerable experience in responsible positions on work of a
similar nature;

\(5\) The portions of the work the architect-engineer is able to perform
with its own forces when required;

\(6\) Ability of the architect-engineer to furnish or to obtain required
materials and equipment;

\(7\) If the geographical or topographical aspects of the project are
deemed vital, familiarity with the locality where the project is
situated;

\(8\) Financial capacity;

\(9\) Responsibility of the architect-engineer under standards provided
in FAR subpart 9.1. No contract may be awarded to a contractor that does
not meet these standards;

\(10\) Volume of work previously awarded to the firm by the Agency, with
the object of effecting an equitable distribution of architect-engineer
contracts among qualified firms. Each architect-engineer evaluation
board shall give favorable consideration, to the fullest extent
practicable to the most highly qualified firms that have not had prior
experience on Government projects (including small business firms and
firms owned by the socially and/or economically deprived).

\(c\) The evaluation board shall prepare a selection memorandum for the
approval of the head of the contracting activity. The selection
memorandum will be signed by the board chairman and cleared by each
board member. The selection memorandum shall include the following
information:

\(1\) A listing by name of all firms reviewed by the board;

\(2\) A listing of the evaluation criteria applied;

\(3\) An analysis of the selection showing the rationale for the board's
recommendation;

\(4\) The board's recommendation of the three most highly qualified
firms, in order of preference;

\(5\) An independent Government cost estimate. The evaluation board
shall require the project engineer to develop an independent Government
estimate of the cost of the required architect-engineer services.
Consideration shall be given to the estimated value of the services to
be rendered, the scope, complexity, and the nature of the project and
the estimated costs expected to be generated by the work. The
independent Government estimate shall be revised as required during
negotiation to correct noted deficiencies and reflect changes in or
clarification of, the scope of the work to be performed by the
architect-engineer. A cost estimate based on the application of
percentage factors to cost estimates of the various segments of the work
involved, e.g., construction project, may be developed for comparison
purposes, but such a cost estimate shall not be used as a substitute for
the independent Government estimate.

**736.602-4** Selection authority.

\(a\) The head of the contracting activity or his/her authorized
designee shall review the selection memorandum and shall either approve
it or return it to the board for reconsideration for specified reasons.

\(b\) Approval of the selection memorandum by the head of the
contracting activity or his/her authorized designee shall serve as
authorization for the contracting office to commence negotiation.

**736.602-5** Short selection process for procurements not to exceed the
simplified acquisition threshold.

References to FAR 36.602-3 and 36.602-4 contained in FAR 36.602-5 shall
be construed as references to 736.602-3 and 736.602-4 of this subpart.

**736.603** Collecting data on and appraising firms' qualifications.

An USAID Consultant Registry Information System (ACRIS) is maintained in
Washington by the USAID Office of Small and Disadvantaged Business
Utilization. Architect-engineers wishing to perform contracts for USAID
should file the appropriate form with that office, as provided in
section 705.002. Procurements are publicized in the [Commerce Business
Daily]{.underline}, as provided in FAR Part 5.

**736.605** Government cost estimate for architect-engineer work.

See 736.602-3(c)(5).

**PART 737 \-- SERVICE CONTRACTING**

**Reserved**

####### AIDAR SUBCHAPTER G \--

**CONTRACT MANAGEMENT**

**PART 742 \-- CONTRACT ADMINISTRATION**

[**See also CIB 90-12 COTR
Designation**](http://www.usaid.gov/procurement_bus_opp/procurement/cib/)

**TABLE OF CONTENTS**

**SUBPART 742.7 \-- INDIRECT COST RATES**

**742.770** Negotiated Indirect Cost Rate Agreement.

**\*SUBPART 742.15 \-- Contractor Performance Information**

**\*742.1501 \[Reserved\]**

**\*742.1502 Policy.**

**\*742.1503 Procedures.**

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.

**SUBPART 742.7 \-- INDIRECT COST RATES**

**742.770** Negotiated Indirect Cost Rate Agreement.

Except for educational institutions having a cognizant agency (as
defined in OMB Circular A-88, 44 FR 70094, 12/5/79) other than USAID,
USAID may establish negotiated overhead rates in a Negotiated Indirect
Cost Rate Agreement, executed by both parties. The Negotiated Indirect
Cost Rate Agreement is automatically incorporated in each contract
between the parties and shall specify: (a) The final rate(s), (b) the
base(s) to which the rate(s) apply, (c) the period(s) for which the
rate(s) apply, (d) the items treated as direct costs, and (e) the
contract(s) to which the rate(s) apply. The Negotiated Indirect Cost
Rate Agreement shall not change any monetary ceiling, obligation, or
specific cost allowance or disallowance provided for in each contract
between the parties. [**See also CIB 92-17, Indirect Cost
Rates**](http://www.usaid.gov/procurement_bus_opp/procurement/cib/)

**\*SUBPART 742.15 \-- Contractor Performance Information**

> [**See also CIBs 99-04, and supplement;\
> CIB 98-21, Performance Monitoring/Progress
> Reports**](http://www.usaid.gov/procurement_bus_opp/procurement/cib/)

[**\*742.1501
\[Reserved\]**](http://www.usaid.gov/procurement_bus_opp/procurement/cib/)

**\*742. 1502 Policy.**

**\* (a) USAID contracting officers shall report contractor performance
information at least annually, employing the procedures prescribed by
the NIH Contractor Performance System. (Access to the system by USAID
contracting office personnel is authorized by the USAID Past Performance
Coordinator, E-mail address: AIDNET: Past
Performance@op.spu@aidw/Internet: pastperformance@usaid.gov.)**

**\* b) Performance for personal services contracts awarded under AIDAR
Appendices D and J shall not be evaluated under the contractor
performance reporting procedures prescribed in FAR Subpart 42.15.**

**\*742.1503 Procedures.**

**\* (a) \[Reserved\]**

**\* (b) Personal services contractors shall be recognized as Government
personnel for the purposes of the restriction on access to contractor
performance information in FAR 42.1503(b).**

**PART 745\--GOVERNMENT PROPERTY**

**TABLE OF CONTENTS**

**SUBPART 745.1** -- General

745.106 Contract clauses.

Authority: Sec. 621, Pub. L. 787-195, 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.

**SUBPART 745.1\--General**

[**See also CIB 92-25, NXP AID-Owned
Property**](http://www.usaid.gov/procurement_bus_opp/procurement/cib/)

**745.106** Contract clauses.

\(a\) The contracting officer shall insert the clause at 752.245-71 in
all contracts under which the contractor will acquire property for use
overseas and the contract funds were obligated under a Strategic
Objective agreement (or similar agreement) with the cooperating country.

\(b\) The contracting officer shall insert the applicable clause as
required in (48 CFR) FAR 45.106 in all contracts under which the
contractor will acquire property with funds not already obligated under
a Strategic Objective agreement (or similar agreement) with the
cooperating country. **\
**

**PART 747\--TRANSPORTATION**

**TABLE OF CONTENTS**

**SUBPART 747.5 ---- OCEAN TRANSPORTATION BY U.S.-FLAG VESSELS**

**747.507** Contract clauses.

Authority: Sec. 621, Pub. L. 98-195, 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.

**SUBPART 747.5 ---- OCEAN TRANSPORTATION BY U.S.-FLAG VESSELS**

**747.507** Contract clauses.

Contracting officers shall insert the clause at 752.247-70 in
solicitations and contracts solely for ocean transportation services,
and in solicitations and contracts for goods and ocean transportation
services when the ocean transportation will be fixed at the time the
contract is awarded. Contracting Officers shall use (48 CFR) FAR
52.247-64 as prescribed in (48 CFR) FAR 27.507(a) in other situations.

# 

# PART 749 \-- TERMINATION OF CONTRACTS

**TABLE OF CONTENTS**

**SUBPART 749.1 \-- GENERAL PRINCIPLES**

**749.100** Scope of subpart.

**749.111** Review of proposed settlements.

**749.111-70** Termination settlement review boards.

**749.111-71** Required review and approval.

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.

**SUBPART 749.1 \-- GENERAL PRINCIPLES**

**749.100** Scope of subpart.

The Foreign Aid and Related Agencies Appropriation Act, 1963, and
subsequent appropriation Acts, have imposed the following requirement:

None of the funds appropriated or made available pursuant to this Act
for carrying out the Foreign Assistance Act of 1961, as amended, may be
used for making payments on any contract for procurement to which the
United States is a party entered into after the date of enactment of
this Act which does not contain a provision authorizing the termination
of such contract for the convenience of the United States.

See, for example, section 110 of the Foreign Assistance and Related
Agencies Appropriation Act, 1965.

**749.111** Review of proposed settlements.

**749.111-70** Termination settlement review boards.

\(a\) The USAID Settlement Review Board shall be composed of the
following members or their delegates (except as provided under
subsection 749.111-71(b)):

\(1\) M/OP Director;

\(2\) Controller;

\(3\) General Counsel.

\(b\) The M/OP Director or his/her delegate shall be designated as
chairman of the board. Delegate members of the board shall have broad
business and contracting experience and shall be senior USAID officials.
Each member or his/her delegate must be in attendance in order to
conduct business, and the board shall act by majority vote. No
individual shall serve as a member of a board for the review of a
proposed settlement if he/she has theretofore reviewed, approved or
disapproved or recommended approval, disapproval or other action with
respect to any substantive element of such settlement proposal.

\(c\) The chairman shall appoint a nonvoting recorder who shall be
responsible for receiving cases, scheduling and recording the
proceedings at meetings, maintaining a log of all cases received by
him/her for the board, and other duties as assigned by the board.

**749.111-71** Required review and approval.

\(a\) [When required]{.underline}. The USAID Settlement Review Board
shall receive and approve all USAID/W and Mission proposed settlements
or determinations if:

\(1\) The amount of settlement, by agreement or determination, involves
\$100,000 or more;

\(2\) The settlement or determination is limited to adjustment of the
fee of a cost-reimbursement contract or subcontract and: (i) in the case
of complete termination, the fee, as adjusted, with respect to the
terminated portion of the contract or subcontract is \$100,000 or more;
or (ii) in the case of a partial termination, the fee, as adjusted, with
respect to the terminated portion of the contract or subcontract is
\$100,000 or more;

\(3\) The head of the contracting activity concerned determines that a
review of a specific case or class of cases is desirable; or

\(4\) The contracting officer, in his/her discretion, desires review by
the board.

\(b\) [Level of review]{.underline}. Proposed settlements in excess of
\$5 million shall be reviewed and approved by a board consisting of the
M/OP Director, the General Counsel, and the Controller, without power of
redelegation.

\(c\) [Submission of information]{.underline}. The contracting officer
shall submit to the board a statement of the proposed settlement
agreement or determination, supported by such detailed information as is
required for an adequate review. This information should normally
include copies of: (1) the contractor's or subcontractor's settlement
proposal, (2) the audit report, (3) the property disposal report and any
required approvals in connection therewith, and (4) the contracting
officer's memorandum explaining the settlement. The board may, in its
discretion, require the submission of additional information.

**PART 750 \-- EXTRAORDINARY CONTRACTUAL ACTIONS**

**TABLE OF CONTENTS**

**750.000** Scope of part.

**SUBPART 750.70 \-- \[RESERVED\]**

**SUBPART 750.71 \-- EXTRAORDINARY CONTRACTUAL ACTIONS TO PROTECT**

**FOREIGN POLICY INTERESTS OF THE UNITED STATES**

**750.7100** Scope of subpart.

**750.7101** Authority.

**750.7102** General policy.

**750.7103** Definitions.

**750.7104** Types of actions.

**750.7105** Approving authorities.

**750.7106** Standards for deciding cases.

**750.7106-1** General.

**750.7106-2** Amendments without consideration.

**750.7106-3** Mistakes.

**750.7106-4** Informal commitments.

**750.7107** Limitations upon exercise of authority.

**750.7108** Contractual requirements.

**750.7109** Submission of requests by contractors.

**750.7109-1** Filing requests.

**750.7109-2** Form of requests by contractors.

**750.7109-3** Facts and evidence.

**750.7110** Processing cases.

**750.7110-1** Investigation.

**750.7110-2** Intra-agency coordination.

**750.7110-3** Submission of cases to the approving authority.

**750.7110-4** Processing by approving authority.

**750.7110-5** Records.

**750.7110-6** Inter-agency coordination.

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.

**750.000** Scope of part.

USAID is not among the agencies named in the Act or authorized by the
President to take actions under it; however, see Subpart 750.71 \--
Extraordinary Contractual Actions to Protect Foreign Policy Interests of
the United States.

**SUBPART 750.70 \-- \[RESERVED\]**

**SUBPART 750.71 \--**

**EXTRAORDINARY CONTRACTUAL ACTIONS TO**

**PROTECT FOREIGN POLICY INTERESTS OF**

**THE UNITED STATES**

**750.7100** Scope of subpart.

This subpart sets forth the standards and the procedures for disposition
of requests for extraordinary contractual actions under Executive Order
11223.

**750.7101** Authority.

Under section 633 of the Foreign Assistance Act of 1961, 75 Stat. 454
(22 U.S.C.2933), as amended; Executive Order 11223, dated May 12, 1965
(30 FR 6635) as amended, and Executive Order 12163, dated September 29,
1979 (44 FR 56673), as amended, the Administrator of the U.S. Agency for
International Development has been granted authority to provide
extraordinary contractual relief. The authority is set forth in sections
3 and 4 of Executive Order 11223 as follows:

"Section 3. With respect to cost-type contracts heretofore or hereafter
made with nonprofit institutions under which no fee is charged or paid,
amendments or modifications of such contracts may be made with or
without consideration and may be utilized to accomplish the same things
as any original contract could have accomplished, irrespective of the
time or circumstances of the making, or of the form of the contract
amended or modified, or of the amending or modifying contract and
irrespective of rights which may have accrued under the contract or the
amendments or modifications thereof.

Section 4. With respect to contracts heretofore or hereafter made, other
than those described in Section 3 of this order, amendments and
modifications of such contracts may by made with or without
consideration and may be utilized to accomplish the same things as any
original contract could have accomplished, irrespective of the time or
circumstances of the making, or the form of the contract amended or
modified, or of the amending or modifying contract, and irrespective of
rights which may have accrued under the contract or the amendments or
modifications thereof, if the Secretary of State or the Director of the
United States International Development Cooperation Agency (with respect
to functions vested in or delegated to the Director) determines in each
case that such action is necessary to protect the foreign policy
interests of the United States."

**750.7102** General policy.

Extra-contractual claims arising from foreign assistance contracts will
be processed in accordance with this subpart, which is similar to that
utilized to process claims for extraordinary relief under FAR Part 50,
as modified to meet the circumstances involved under the Foreign
Assistance Act and the different authority involved.

**750.7103** Definitions.

\(a\) The term "approving authority" as used in this subpart means an
officer or official having been delegated authority to approve actions
under the Executive Order. This authority is distinguished from
authority to take appropriate contractual action pursuant to such
approval.

\(b\) The term "the Executive Order" shall mean Executive Order 11223
(30 FR 6635) as amended, unless otherwise stated.

\(c\) The term "the Act" shall mean the Foreign Assistance Act of 1961,
as amended.

**750.7104** Types of actions.

Three types of actions may be taken by or pursuant to the direction of
an approving authority under the Executive Order. These are contractual
adjustments such as amendments without consideration, correction of
mistakes, and formalization of informal commitments.

**\
750.7105** Approving authorities.

All authority to approve actions under this subpart has been delegated
to the M/OP Director.

**750.7106** Standards for deciding cases.

**750.7106-1** General.

The mere fact that losses occur under a Government contract is not, by
itself, a sufficient basis for the exercise of the authority conferred
by the Executive Order. Whether, in a particular case, appropriate
action such as amendment without consideration, correction of a mistake
or ambiguity in a contract, or formalization of an informal commitment,
will protect the foreign policy interests of the United States is a
matter of sound judgment to be made on the basis of all of the facts of
such case. Although it is obviously impossible to predict or enumerate
all the types of cases with respect to which action may be appropriate,
examples of certain cases or types of cases where action may be proper
are set forth in subsections 750.7106-2 through 750.7106-4. Even if all
of the factors contained in any of the examples are present, other
factors or considerations in a particular case may warrant denial of the
request. These examples are not intended to exclude other cases where
the approving authority determines that the circumstances warrant
action.

**750.7106-2** Amendments without consideration.

\(a\) Where an actual or threatened loss under a foreign assistance
contract, however caused, will impair the productive ability of a
contractor whose continued performance of any foreign assistance
contract or whose continued operation as a source of supply is found to
be essential to protect the foreign policy interests of the United
States, the contract may be adjusted but only to the extent necessary to
avoid such impairment to the contractor's productive ability.

\(b\) Where a contractor suffers a loss (not merely a diminution of
anticipated profits) on a foreign assistance contract as a result of
Government action, the character of the Government action will generally
determine whether any adjustment in the contract will be made and its
extent. Where the Government action is directed primarily at the
contractor and is taken by the Government in its capacity as the other
contracting party, the contract may be adjusted if fairness so requires;
thus where such Government action, although not creating any liability
on its part, increases the cost of performance, considerations of
fairness may make appropriate some adjustment in the contract.

**750.7106-3** Mistakes.

A contract may be amended or modified to correct or mitigate the effect
of a mistake, including the following examples;

\(a\) A mistake or ambiguity which consists of the failure to express or
to express clearly in the written contract the agreements as both
parties understood them;

\(b\) A mistake on the part of the contractor which is so obvious that
it was or should have been apparent to the contracting officer; and

\(c\) A mutual mistake as to a material fact.

Amending contracts to correct mistakes with the least possible delay
normally will protect the foreign policy interests of the United States
by expediting the procurement program and by giving contractors proper
assurance that such mistakes will be corrected expeditiously and fairly.

**750.7106-4** Informal commitments.

Informal commitments may be formalized under certain circumstances to
permit payment to persons who have taken action without a formal
contract; for example, where any person, pursuant to written or oral
instructions from an officer or official of the Agency and relying in
good faith upon the apparent authority of the officer or official to
issue such instructions, has arranged to furnish or has furnished
property or services to the Agency and/or to a foreign assistance
contractor or subcontractor without formal contractual coverage for such
property or services. Formalization of commitments under such
circumstances normally will protect the foreign policy interests of the
United States by assuring persons that they will be treated fairly and
paid expeditiously.

**750.7107** Limitations upon exercise of authority.

\(a\) The Executive Order is not authority for:

\(1\) The use of the cost-plus-a-percentage-of-cost system of
contracting;

\(2\) The making of any contract in violation of existing law relating
to limitation on profit or fees;

\(3\) The waiver of any bid, payment performance or other bond required
by law.

\(b\) No amendments, or modifications shall be entered into under the
authority of the Executive Order:

\(1\) Unless, with respect to cases falling within Section 4 of the
Executive Order, a finding is made that the action is necessary to
protect the foreign policy interests of the United States;

\(2\) Unless other legal authority in the Agency is deemed to be lacking
or inadequate;

\(3\) Except within the limits of the amounts appropriated and the
statutory contract authorization.

\(c\) No contract shall be amended or modified unless the request
therefor has been filed before all obligations (including final payment)
under the contract have been discharged.

\(d\) No informal commitment shall be formalized unless:

\(1\) A request for payment has been filed within six months after
arranging to furnish or furnishing property or services in reliance upon
the commitment;

\(2\) USAID has received the services satisfactorily

performed, or has accepted property furnished in reliance on the
commitment;

\(3\) The USAID employees alleged to have made the informal commitment
have accepted responsibility for making the informal commitment in
question; and

\(4\) USAID has taken appropriate action to prevent recurrence.

**750.7108** Contractual requirements.

Every contract amended or modified pursuant to this subpart shall
contain:

\(a\) A citation of the Act and Executive Order.

\(b\) A brief statement of the circumstances justifying the

action;

\(c\) A recital of the finding, with respect to cases falling within
Section 4 of the Executive Order, that the action is necessary to
protect the foreign policy interests of the United States.

**750.7109** Submission of requests by contractors.

**750.7109-1** Filing requests.

Any person (hereinafter called the "contractor") seeking an adjustment
under standards set forth in subsection 750.7106 may file a request in
duplicate with the cognizant contracting officer or his/her duly
authorized representative. If such filing is impracticable, requests
will be deemed to be properly filed if filed with the Chief of the
Office of Procurement, Evaluation Division (M/OP/E), for forwarding to
the cognizant contracting officer.

**750.7109-2** Form of requests by contractors.

The contractor's request shall normally consist of a letter to the
contracting officer providing the information specified in FAR 50.303.
**(See [FAR
50.303](http://www.usaid.gov/cgi-bin/goodbye?http://www.arnet.gov/far/))**

**750.7109-3** Facts and evidence.

The contracting officer or the approving authority may, where considered
appropriate, request the contractor to furnish the facts and evidence as
described in FAR 50.304. **(See [FAR
50.304](http://www.usaid.gov/cgi-bin/goodbye?http://www.arnet.gov/far/))**

**750.7110** Processing cases**.**

**750.7110-1** Investigation.

The Evaluation Division of the Office of Procurement (M/OP/E) shall be
responsible for assuring that the case prepared by the cognizant
contracting officer makes a thorough investigation of all facts and
issues relevant to each situation. Facts and evidence shall be obtained
from contractor and Government personnel and shall include signed
statements of material facts within the knowledge of the individuals
where documentary evidence is lacking and audits where considered
necessary to establish financial or cost related facts. The
investigation shall establish the facts essential to meet the standards
for deciding the particular case and shall address the limitations upon
exercise of the authority of the M/OP Director to approve the request.

**750.7110-2** Office of General Counsel coordination.

Prior to the submission of a case to the M/OP Director recommending
extraordinary contractual relief, the claim shall be fully developed by
the cognizant contracting officer and concurrences or comments shall be
obtained from the Office of General Counsel for the proposed relief to
be granted. Such concurrences or comments shall be incorporated in or
accompany the action memorandum submitted for consideration to the M/OP
Director in accordance with 750.7110-3.

**750.7110-3** Submission of cases to the M/OP Director.

Cases to be submitted for consideration by the M/OP Director shall be
prepared and forwarded by the cognizant contracting officer through
M/OP/E to the M/OP Director by means of an action memorandum. M/OP/E
will review the action memorandum for accuracy and completeness. The
action memorandum shall provide for approval or disapproval by the M/OP
Director of the disposition recommended by the contracting officer. The
action memorandum shall address:

\(a\) The nature of the case;

\(b\) The basis for authority to act under subsection 750.7101;

\(c\) The findings of fact essential to the case (see 750.7109-3)
arranged chronologically with cross references to supporting enclosures;

\(d\) The conclusions drawn from applying the standards for deciding
cases, as set forth in 750.7106, to the findings of fact;

\(e\) Compliance with the limitations upon exercise of authority, as set
forth in subsection 750.7107 (for informal commitments, include
statements addressing each of the limitations in paragraph (d) of
750.7107):

\(f\) Concurrences or comments obtained from the Office of General
Counsel;

\(g\) Verification of funds availability and the contracting officer's
determination of cost/price reasonableness when the disposition
recommended requires payment to a contractor;

\(h\) The disposition recommended and, if contractual action is
recommended with respect to cases falling within Section 4 of the
Executive Order, the opinion of the contracting officer that such action
is necessary to protect the foreign policy interest of the United
States; and

\(i\) The action memorandum shall enclose all evidentiary materials,
including the reports and comments of all cognizant Government or other
officials, and a copy of the contractor's request. The action memorandum
should provide the following information related to the contractor's
request, as applicable:

\(1\) Date of request;

\(2\) Date request received by USAID:

\(3\) Contract number;

\(4\) Contractor's name and address;

\(5\) Name, address, and phone number of contractor's representative;

\(6\) Name, office symbol, and phone number of cognizant contracting
officer;

\(7\) Amount of request.

**750.7110-4** Processing by the M/OP Director.

When the action memorandum has been determined to be as accurate and
complete as possible and has been prepared in accordance with this
Subpart, M/OP/E will forward the action memorandum to the M/OP Director.
The M/OP Director will sign and date the action memorandum indicating
approval or disapproval of the disposition recommended by the
contracting officer.

**750.7110-5** Contract files.

The fully executed action memorandum indicating approval/disapproval and
a copy of the contractual document implementing any approved contractual
action shall be placed in the contract file.

**750.7110-6** Inter-agency coordination.

\(a\) [General]{.underline}. Where a case involves matters of interest
to more than one department or agency, USAID should maintain liaison
with other departments and agencies of the Government and take such
joint action as may be proper under the circumstances, including holding
joint meetings.

\(b\) [Cases involving funds of other departments or
agencies]{.underline}. Requests for adjustment within any category,
involving the funds of another department or agency, shall not be
approved by USAID until advice is requested and received from the
department or agency whose funds are involved.

###### AIDAR SUBCHAPTER H \-- CLAUSES AND FORMS

**PART 752 SOLICITATION PROVISIONS AND CONTRACT CLAUSES**

**TABLE OF CONTENTS**

**SUBPART 752.2 \-- TEXTS OF PROVISIONS AND CLAUSES**

**752.200** Scope of subpart.

**752.202-1** Definitions.

**752.204-2** Security Requirements.

**752.209-71** Organizational Conflicts of Interest Discovered After
Award.

[**See also CIB 99-17,
OCI**](http://www.usaid.gov/procurement_bus_opp/procurement/cib/)

**752.211-70** Language and Measurement.

**752.216-70** Award Fee

**752.219-8** Utilization of Small Business Concerns and Small
Disadvantaged Business Concerns.

**752.225-9** Buy American Act \-- Trade Agreements Act \-- Balance of
Payments Program.

**752.225-70** Source, Origin, and Nationality Requirements

**752.225-71** Local Procurement

**752.226-1** Determination of Status as Disadvantaged Enterprise.

**752.226-2** Subcontracting with Disadvantaged Enterprises.

**752.226-3** Limitation on Subcontracting.

**752.228-3** Worker's Compensation Insurance (Defense Base Act).

**752.228-7** Insurance\--Liability to Third Persons.

**752.228-9** Cargo Insurance.

**752.228-70** Medical Evacuation (MEDEVAC) Services

**752.229-70** Federal, State and Local Taxes.

**752.231-71** Salary supplements for HG employees

**752.232-7** Payments under Time-and-Materials and Labor-Hour
Contracts.

**752.232-70** Letter of Credit Advance Payment.

**752.245-70** Government Property \-- USAID Reporting Requirements.

**752.245-71** Title to and Care of Property.

**752.247-70** Preference for Privately Owned U.S.-Flag Commercial
Vessels

**SUBPART 752.70 \-- TEXTS OF USAID** **CONTRACT CLAUSES**

**752.7000** Scope of subpart.

**752.7001** Biographical Data.

**752.7002** Travel and Transportation.

**752.7003** Documentation for Payment.

**752.7004** Emergency Locator Information.

**752.7005** Submission Requirements for Development Experience
Documents.

**752.7006** Notices.

**752.7007** Personnel Compensation.

**752.7008** Use of Government Facilities or Personnel.

**752.7009** Marking.

**752.7010** Conversion of U.S. Dollars to Local Currency.

**752.7011** Orientation and Language Training.

**752.7012** Protection of the Individual as a Research Subject.

**752.7013** Contractor - Mission Relationships.

**752.7014** Notice of Changes in Travel Regulations.

**752.7015** Use of Pouch Facilities.

**752.7016** Family Planning and Population Assistance Activities.

[See also CIB 99-06,\
Population Cert/Tiahrt
Amendment](http://www.usaid.gov/procurement_bus_opp/procurement/cib/)

**752.7018** Health and Accident Coverage for USAID Participant
Trainees.

**752.7019** Participant Training.

**752.7020** \[Reserved\].

**752.7021** Changes in Tuition and Fees.

**752.7022** Conflicts Between Contract and Catalog.

**752.7023** Required Visa Form for USAID Participants.

**752.7024** Withdrawal of Students.

**752.7025** Approvals.

**752.7026** \[Reserved\].

[**See CIB 98-21, Contractor Progress Reports -- new AIDAR
coverage**](http://www.usaid.gov/procurement_bus_opp/procurement/cib/)

**752.7027** Personnel.

**752.7028** Differential and Allowances.

**752.7029** Post privileges.

**752.7030** Inspection Trips by Contractor's Officers and Executives.

**752.7031** Leave and Holidays.

**752.7032** International Travel Approval and Notification
Requirements.

**752.7033** Physical Fitness.

**752.7034** Acknowledgment and Disclaimer

**752.7035** Public Notices.

> **[See also: CIBs 99-19 Patents; 94-20, Communications Products;\
> 98-21, Performance
> Monitoring](http://www.usaid.gov/procurement_bus_opp/procurement/cib/)**

SUBPART 752.3-70 \-- USAID CLAUSE MATRICES \-- \[Reserved\]

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.

**SUBPART 752.2 \-- TEXTS OF**

**PROVISIONS AND CLAUSES**

**752.200** Scope of subpart.

None of the clauses specified in this subpart are for use in USAID
personal services contracts. For personal services contract clauses, see
AIDAR Appendix D \-- Direct USAID Contracts with U.S. Citizens or U.S.
Residents for Personal Services Abroad and AIDAR Appendix J \-- Direct
USAID Contracts with Cooperating Country Nationals and with Third
Country Nationals for Personal Services Abroad.

**752.202-1** Definitions.

a\. As prescribed in 702.270 and in FAR 2.2, USAID contracts use the
Definitions clause in FAR 52.202-1 and its Alternate I, as appropriate,
and the following additional definitions. (See FAR 52.202)

b\. [Alternate 70]{.underline}. For use in all USAID contracts. Use in
addition to the clause in FAR 52.202-1. (See FAR 52.202)

**USAID DEFINITIONS CLAUSE \-- GENERAL SUPPLEMENT FOR USE IN**

**ALL USAID CONTRACTS (JAN 1990)**

\(a\) "USAID" shall mean the U.S. Agency for International Development.

\(b\) "Administrator" shall mean the Administrator or the Deputy
Administrator of USAID.

\(c\) When this contract is with an educational institution "Campus
Coordinator" shall mean the representative of the Contractor at the
Contractor's home institution, who shall be responsible for coordinating
the activities carried out under the contract.

\(d\) When this contract is with an educational institution "Campus
Personnel" shall mean representatives of the Contractor performing
services under the contract at the Contractor's home institution and
shall include the Campus Coordinator.

\(e\) "Consultant" shall mean any especially well qualified person who
is engaged, on a temporary or intermittent basis to advise the
Contractor and who is not an officer or employee of the Contractor who
performs other duties for the Contractor.

\(f\) "Contractor employee" shall mean an employee of the Contractor
assigned to work under this contract.

\(g\) "Cooperating Country or Countries" shall mean the foreign country
or countries in or for which services are to be rendered hereunder.

\(h\) "Cooperating Government" shall mean the government of the
Cooperating Country.

\(i\) "Federal Acquisition Regulations (FAR)", when referred to herein
shall include Agency for International Development Acquisition
Regulations (AIDAR).

\(j\) "Government" shall mean the United States Government.

\(k\) "Mission" shall mean the United States USAID Mission to, or
principal USAID office in, the Cooperating Country.

\(l\) "Mission Director" shall mean the principal officer in the Mission
in the Cooperating Country, or his/her designated representative.

c\. [Alternate 71]{.underline}. For use in USAID contracts with an
educational institution for participant training. Use in addition to the
clauses in FAR 52.202-1 and in 752.202-1(b) of this chapter. (See FAR
52.202)

USAID DEFINITIONS CLAUSE \-- SUPPLEMENT FOR CONTRACTS WITH AN

EDUCATIONAL INSTITUTION FOR PARTICIPANT TRAINING (APR 1984)

\(a\) "Catalog" shall mean any medium by which the Institution publicly
announces terms and conditions for enrollment in the Institution,
including tuition and fees to be charged. This includes "bulletins,"
"announcements," or any other similar word the Institution may use.

\(b\) "Director" shall mean the individual who fills the USAID position
of Director, Center for Human Capacity Development, or his/her
authorized representative acting within the limits of his/her authority.

\(c\) "Fees" shall mean those applicable charges directly related to
enrollment in the Institution. This shall not include any permit charge
(e.g., parking, vehicle registration), or charges for services of a
personal nature (e.g., food, housing, laundry) unless specifically
called for in this contract.

\(d\) "Institution" shall mean the educational institution providing
services hereunder. The terms "Institution" and "Contractor" are
synonymous.

\(e\) "Tuition" shall mean the amount of money charged by an institution
for instruction, not including fees as described in this section.

d\. [Alternate 72]{.underline}. For use in all USAID contracts which
involve any performance overseas. Use in addition to the clauses in FAR
52.202-1 and in 752.202-1(b). (See FAR 52.202)

**USAID DEFINITIONS CLAUSE \-- SUPPLEMENT FOR USAID CONTRACTS**

**INVOLVING PERFORMANCE OVERSEAS (DEC 1986)**

\(a\) "Contractor's Chief of Party" shall mean the representative of the
Contractor in the Cooperating Country who shall be responsible for
supervision of the performance of all duties undertaken by the
Contractor in the Cooperating Country.

\(b\) "Cooperating Country National (CCN) employee" means an individual
who meets the citizenship requirements of 48 CFR 702.170-5 and is hired
while residing outside the United States for work in a cooperating
country.

\(c\) "Dependents" shall mean:

\(1\) Spouse;

\(2\) Children (including step and adopted children) who are unmarried
and under 21 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.

**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 section 704.404,
paragraph (a) of the clause is revised as follows: (See 52.204)

"(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."

**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 9.507-2,
establishing a restraint on the contractor's eligibility for future
contracts. (See FAR 52.209)

**Organizational Conflicts of Interest Discovered**

**After Award (June 1993)**

\(a\) 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
interests of the Government.

**752.211-70** Language and measurement.

The following clause shall be used in all USAID-direct contracts.

**Language and Measurement (June 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.

**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.

**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): (See FAR 19.708)

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, D.C. 20523-1414, at least 45 days prior to placing
any order in excess of the simplified acquisition threshold, except
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.

**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 No. 11223, dated May 12,
1965, 30 FR 6635.) The clause setting forth USAID's source restrictions
is shown in section 752.225-70.

**752.225-70** Source, Origin and Nationality Requirements

The following clause is required as prescribed in 725.704.

**Source, Origin and Nationality Requirements (FEB 1997)**

\(a\) 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

\(5\) Luxury goods and gambling equipment, or

\(6\) Weather modification equipment.

\(c\) Restricted goods. The Contractor shall not procure any of the
following goods or services without the prior written approval of the
Contracting Officer:

\(1\) Agricultural commodities,

\(2\) Motor vehicles,

\(3\) Pharmaceuticals and contraceptive items

\(4\) Pesticides,

\(5\) Fertilizer,

\(6\) Used equipment, or

\(7\) U.S. government-owned excess property.

If USAID determines that the Contractor has procured any of these
specific restricted goods under this contract without the prior written
authorization of the Contracting Officer, and has received payment for
such purposes, the Contracting Officer may require the contractor to
refund the entire amount of the purchase.

**752.225-71** Local Procurement

For use in any USAID contract involving performance overseas.

**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.

**752.226-1** Determination of status as disadvantaged enterprise.

As prescribed in 726.7006(a), insert the following provision:

**DISADVANTAGED ENTERPRISE REPRESENTATION (APRIL 1991)**

The offeror/contractor shall submit a representation in the following
form to the contracting officer:

\(a\) [Representation]{.underline}. 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]{.underline}.

\(1\) "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 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]{.underline}. 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.

**752.226-2** Subcontracting with Disadvantaged Enterprises.

As prescribed in 726.7007, insert the following clause:

**SUBCONTRACTING WITH DISADVANTAGED ENTERPRISES (JULY 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; (See FAR 19.001)

\(2\) 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 controlled by one
or more such individuals.

\(2\) "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.

\(3\) "Socially and economically disadvantaged individuals" has the same
meaning as in FAR 19.001, except that the term also includes women. (See
FAR 19.001)

\(d\) Contractors should require representations from their
subcontractors regarding their status as a disadvantaged enterprise.
Contractors acting in good faith may rely on such representations by
their subcontractors.

**752.226-3** Limitation on Subcontracting.

As prescribed in 726.7008, insert the following clause:

**LIMITATIONS ON SUBCONTRACTING (JUNE 1993)**

By submission of an offer and execution of a contract, the
Offeror/Contractor agrees 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.

**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. (See FAR 52.228)

\(a\) 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.

**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]{.underline} is not used) or (i) (if FAR 52.228-7
Alternate I is used): (See FAR 52.228)

( ) [Insurance on private automobiles]{.underline}. 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.

**752.228-9** Cargo Insurance.

As prescribed in 728.313 (a), the following preface is to be used
preceding the text of the clause at FAR 52.228-9:

(FAR 52.228)

[Preface]{.underline}: To the extent that marine insurance is necessary
or appropriate under this contract, the contractor shall ensure that
U.S. marine insurance companies are offered a fair opportunity to bid
for such insurance. This requirement shall be included in all
subcontracts under this contract.

**752.228-70** Medical Evacuation (MEDEVAC) Services

As prescribed in 728.307-70, for use in all contracts requiring
performance overseas:

**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 sufficient 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.

**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. (See FAR 29.401)

**752.231-71** Salary supplements for HG employees.

As prescribed in 731.205-71, for use in all contracts with a possible
need for services of a HG employee. The clause should also be inserted
in all subsequent sub-contracts.

**SALARY SUPPLEMENTS FOR HG EMPLOYEES (OCT 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/her 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.

**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 AIDAR 716.501(c). (See FAR 52.232) When this provision is used the
following preamble will be included:

For the purposes of this clause certain terms shall be interpreted as
follows:

The term "contract(s)" includes "delivery order(s)"; "hour(s)", or
"hourly" may be calculated in terms of "day(s)" or "daily (8 hours)";
and "materials" includes "other direct costs".

**752.232-70** Letter of Credit Advance Payment.

As required by 732.406.73, insert the following clause in contracts
being paid by Letter of Credit.

**LETTER OF CREDIT ADVANCE PAYMENT (OCT 1989)**

\(a\) Payment under this contract shall be by means of a Letter of
Credit (LOC) in accordance with the terms and conditions of the LOC and
any instructions issued by the USAID Office of Financial Management,
Cash Management and Payment Division (FM/CMP).

\(b\) As long as the LOC is in effect, the terms and conditions of the
LOC and any instructions issued by FM/CMP constitute the payment
conditions of this contract, superseding and taking precedence over any
other clause of this contract concerning payment.

\(c\) If the LOC is revoked, payment may be made on a cost-reimbursement
basis, in accordance with the other clauses of this contract concerning
payment.

\(d\) Revocation of the LOC is at the discretion of FM/CMP after
consultation with the contracting officer. Notification to the
contractor of revocation must be in writing and must specify the reasons
for such action. The contractor may appeal any such revocation to the
contracting officer, in accordance with the Disputes clause of this
contract. Pending final decision, payments under the contract will be in
accordance with paragraph (c) of this clause.

**752.245-70** Government Property \-- USAID Reporting Requirements.

In response to a GAO audit recommendation, USAID contracts, except for
those for commercial items, must contain the following preface and
reporting requirement as additions to the appropriate Government
Property clause prescribed by FAR 45.106.

(See FAR 45.106)

[Preface]{.underline}: to be inserted preceding the text of the FAR
clause.

The term "Government furnished property" wherever it may appear in the
following clause, shall mean (1) non-expendable personal property owned
by or leased to the U.S. Government and furnished to the contractor
[and]{.underline} (2) personal property furnished either prior to or
during the performance of this contract by any U.S. Government
accountable officer to the contractor for use in connection with
performance of this contract and identified by such officer as
accountable. The term "government property", wherever it may appear in
the following clause, shall mean government-furnished property and
non-expendable personal property title to which vests in the U.S.
Government under this contract. Non-expendable property, for purposes of
this contract, is defined as property which is complete in itself, does
not lose its identity or become a component part of another article when
put into use; is durable, with an expected service life of two years or
more; and which has a unit cost of more than \$500.

[Reporting Requirement]{.underline}: to be inserted following the text
of the FAR clause.

[Reporting Requirements]{.underline}: The contractor will submit an
annual report on all non-expendable property in a form and manner
acceptable to USAID substantially as follows:

  --------------------------- ------------ --------------- ------------ ----------------
  **ANNUAL REPORT OF                                                    
  GOVERNMENT PROPERTY\                                                  
  IN CONTRACTOR'S CUSTODY**                                             

  (Name of Contractor)                                                  

  As of (End of Contract                                                
  Year), 19xx                                                           

                              **Motor      **Furniture and              **Other
                              Vehicles**   furnishings**                non-expendable
                                                                        property**

                                           **Office**      **Living     
                                                           quarters**   

  A. Value of property as of                                            
  last report.                                                          

  B. Transactions during this                                           
  reporting period.                                                     

  1\. Acquisitions (add):                                               

  a\. Purchased by contractor                                           
  [1]{.underline}/                                                      

  b\. Transferred from USAID                                            
  [2]{.underline}/                                                      

  c\. Transferred from                                                  
  others- Without                                                       
  reimbursement                                                         
  [3]{.underline}/                                                      

  2\. Disposals (deduct):                                               

  a\. Returned to USAID                                                 

  b\. Transferred to                                                    
  USAID-Contractor Purchased                                            

  c\. Transferred to other                                              
  Government agencies                                                   
  [3]{.underline}/                                                      

  d\. Other disposals                                                   
  [3]{.underline}/                                                      

  C. Value of property as of                                            
  reporting date.                                                       

  D. Estimated average age of Years        Years           Years        Years
  contractor held property                                              
  --------------------------- ------------ --------------- ------------ ----------------

1/ Property which is complete in itself, does not lose its identity or
become a component part of another article when put into use; is
durable, with an expected service life of two years or more; and which
has a unit cost of more than \$500.

[2]{.underline}/ Government furnished property listed in this Contract
as non-expendable.

[3]{.underline}/ Explain if transactions were not processed through or
otherwise authorized by USAID

**PROPERTY INVENTORY VERIFICATIONS**

I attest that (1) physical inventories of Government property are taken
not less frequently than annually; (2) the accountability records
maintained for Government property in our possession are in agreement
with such inventories; and (3) the total of the detailed accountability
records maintained agrees with the property value shown opposite line C
above, and the estimated average age of each category of property is as
cited opposite line D above.

Authorized Signature.

**752.245-71** Title to and Care of Property.

As prescribed in 745.106(a), the following clause shall be included in
all contracts when the contractor will acquire property under the
contract for use overseas and the contract funds were obligated under a
Strategic Objective agreement (or similar agreement) with the
Cooperating Country.

**TITLE TO AND CARE OF PROPERTY (APR 1984)**

\(a\) Title to all non-expendable property purchased with contract funds
under this contract and used in the Cooperating Country, shall at all
times be in the name of the Cooperating Government, or such public or
private agency as the Cooperating Government may designate, unless title
to specified types or classes of non-expendable property is reserved to
USAID under provisions set forth in the schedule of this contract; but
all such property shall be under the custody and control of Contractor
until the owner of title directs otherwise, or completion of work under
this contract or its termination, at which time custody and control
shall be turned over to the owner of title or disposed of in accordance
with its instructions. All performance guaranties and warranties
obtained from suppliers shall be taken in the name of the title owner.
(Non-expendable property is property which is complete in itself, does
not lose its identity or become a component part of another article when
put into use; is durable, with an expected service life of two years or
more; and which has a unit cost of \$500 or more.

\(b\) Contractor shall prepare and establish a program, to be approved
by the Mission, for the receipt, use, maintenance, protection, custody,
and care of non-expendable property for which it has custodial
responsibility, including the establishment of reasonable controls to
enforce such program.

\(c\) (1) For non-expendable property to which title is reserved to the
U.S. Government under provisions set forth in the schedule of this
contract, Contractor shall submit an annual report on all non-expendable
property under its custody as required in the clause of this contract
entitled "Government Property".

\(2\) For non-expendable property titled to the Cooperating Government,
the Contractor shall, within 90 days after completion of this contract,
or at such other date as may be fixed by the Contracting Officer, submit
an inventory schedule covering all items of non-expendable property
under its custody, which have not been consumed in the performance of
this contract. The Contractor shall also indicate what disposition has
been made of such property.

**752.247-70** Preference for privately owned U.S.-flag commercial
vessels.

As prescribed in 747.507, insert the following clause:

**PREFERENCE FOR PRIVATELY OWNED U.S.-FLAG**

**COMMERCIAL VESSELS (OCT 1996)**

\(a\) Under the provisions of the Cargo Preference Act of 1954 (46
U.S.C. 1241(b)) at least 50 percent of the gross tonnage of equipment,
materials, or commodities financed by USAID, or furnished without
provision for reimbursement, or at least 75 percent of the gross tonnage
of cargo moving under P.L. 480 financed by the U.S. Department of
Agriculture, that may be transported in ocean vessels (computed
separately for dry bulk carriers, dry cargo liners, and tankers) shall
be transported in privately owned U.S.-flag commercial vessels.

\(b\) In accordance with USAID regulations and consistent with the
regulations of the Maritime Administration, USAID applies Cargo
Preference requirements on the basis of programs or activities that
generally include more than one contract. Thus, the amount of cargo
fixed on privately owned U.S.-flag vessels under this contract may be
more or less than the required 50 or 75 percent, depending on current
compliance with Cargo Preference requirements. If freight under the
contract is fixed on a U.S. flag vessel, Alternate I of this clause
shall apply.

\(c\) (1) The contractor shall submit one legible copy of a rated
on-board ocean bill of lading for each shipment to both the Division of
National Cargo, Office of Cargo Preference, Maritime Administration,
U.S. Department of Transportation, Washington, DC 20590, and the
Transportation Division, Office of Procurement, USAID, Washington, DC
20523-7900.

\(2\) The contractor shall furnish these bill of lading copies within 20
working days of the date of loading for shipments originating in the
United States, or within 30 working days for shipments originating
outside the United States. Each bill of lading copy shall contain the
following information:

> \(i\) Sponsoring U.S. Government agency.

\(ii\) Name of vessel.

> \(iii\) Vessel flag registry.
>
> \(iv\) Date of loading.
>
> \(v\) Port of loading.
>
> \(vi\) Port of final discharge.
>
> \(vii\) Description of commodity
>
> \(viii\) Gross weight in pounds and cubic feet if available.
>
> \(ix\) Total ocean freight revenue in U.S. dollars.

Alternate I

\(d\) If freight is fixed on a U.S. flag vessel, except as provided in
paragraph (e) of this clause, the contractor shall use privately owned
U.S. flag commercial vessels, and no others, in the ocean transportation
of any supplies to be furnished under this contract.

\(e\) If such vessels are not available, or not available at rates that
are fair and reasonable for privately owned U.S. flag commercial
vessels, the Contractor shall notify the contracting officer and request
either authorization to ship in foreign-flag vessels or designation of
available U.S.-flag vessels. If the Contractor is authorized in writing
by the Contracting Officer to ship the supplies in foreign-flag vessels,
the contract price shall be equitably adjusted to reflect the difference
in costs of shipping the suppliers in privately owned U.S.-flag
commercial vessels and foreign-flag vessels.

**SUBPART 752.70 \-- TEXTS OF USAID CONTRACT CLAUSES**

**752.7000** Scope of subpart.

Subpart 752.70 contains the text of USAID-specific contract clauses for
which there is no FAR equivalent. The clauses in this Subpart do not
apply to contracts for personal services. For personal service contract
clauses see AIDAR Appendix D \-- Direct USAID Contracts with U.S.
Citizens or U.S. Residents for Personal Services Abroad and AIDAR
Appendix J \-- Direct USAID Contracts with Cooperating Country Nationals
and with Third Country Nationals for Personal Services Abroad.

**752.7001** Biographical Data.

This following clause is to be included in all USAID cost reimbursement
contracts.

**BIOGRAPHICAL DATA (JULY 1997)**

The Contractor agrees to furnish to the Contracting Officer on AID Form
1420-17, "Contractor Employee Biographical Data Sheet", biographical
information on the following individuals to be employed in the
performance of the contract: (1) All individuals to be sent outside of
the United States, or (2) any employees designated as "key personnel".
Biographical data in the form usually maintained by the Contractor on
the other individuals employed under the contract shall be available for
review by USAID at the Contractor's headquarters. A supply of AID Form
1420-17 will be provided with this contract. The Contractor may
reproduce additional copies as necessary.

**752.7002** Travel and Transportation.

For use in cost reimbursement contracts performed in whole or in part
overseas.

**TRAVEL AND TRANSPORTATION (JAN 1990)**

\(a\) [General]{.underline}. The Contractor will be reimbursed for
reasonable, allocable and allowable travel and transportation expenses
incurred under and for the performance of this contract. Determination
of reasonableness, allocability and allowability will be made by the
Contracting Officer based on the applicable cost principles, the
Contractor's established policies and procedures, USAID's established
policies and procedures for USAID direct-hire employees, and the
particular needs of the project being implemented by this contract. The
following paragraphs provide specific guidance and limitations on
particular items of cost.

\(b\) [International travel]{.underline}. For travel to and from post of
assignment the Contractor shall be reimbursed for travel costs and
travel allowances of travelers from place of residence in the United
States (or other location provided that the cost of such travel does not
exceed the cost of the travel from the employee's residence in the
United States) to the post of duty in the Cooperating Country and return
to place of residence in the United States (or other location provided
that the cost of such travel does not exceed the cost of travel from the
post of duty in the Cooperating Country to the employee's residence)
upon completion of services by the individual. Reimbursement for travel
will be in accordance with the applicable cost principles and the
provisions of this contract, and will be limited to the cost of travel
by the most direct and expeditious route. If a regular employee does not
complete one full year at post of duty (except for reasons beyond
his/her control), the costs of going to and from the post of duty for
that employee and his/her dependents are not reimbursable hereunder. If
the employee serves more than one year but less than the required
service in the Cooperating Country (except for reasons beyond his/her
control) the costs of going to the post of duty are reimbursable
hereunder but the costs of going from post of duty to the employee's
permanent, legal place of residence at the time he or she was employed
for work under this contract or other location as approved by the
Contracting Officer are not reimbursable under this contract for the
employee and his/her dependents. When travel is by economy class
accommodations, the Contractor will be reimbursed for the cost of
transporting up to 22 pounds of accompanied personal baggage per
traveler in addition to that regularly allowed with the economy ticket
provided that the total number of pounds of baggage does not exceed that
regularly allowed for first class travelers. Travel allowances for
travelers shall not be in excess of the rates authorized in the
Standardized Regulations (Government Civilians, Foreign Areas) \--
hereinafter referred to as the Standardized Regulations \-- as from time
to time amended, for not more than the travel time required by scheduled
commercial air carrier using the most expeditious route. One stopover en
route for a period of not to exceed 24 hours is allowable when the
traveler uses economy class accommodations for a trip of 14 hours or
more of scheduled duration. Such stopover shall not be authorized when
travel is by indirect route or is delayed for the convenience of the
traveler. Per diem during such stopover shall be paid in accordance with
the established practice of the Contractor but not to exceed the amounts
stated in the Standardized Regulations.

\(c\) [Local travel]{.underline}. Reimbursement for local travel in
connection with duties directly referable to the contract shall not be
in excess of the rates established by the Mission Director for the
travel costs of travelers in the Cooperating Country. In the absence of
such established rates the Contractor shall be reimbursed for actual
travel costs of travelers in the Cooperating Country, if not provided by
the Cooperating Government or the Mission, including travel allowances
at rates not in excess of those prescribed by the Standardized
Regulations.

\(d\) [Travel for consultation]{.underline}. The Contractor shall be
reimbursed for the round trip of the Contractor's Chief of Party in the
Cooperating Country or other designated Contractor employee or
consultant in the Cooperating Country performing services required under
this Contract, for travel from the Cooperating Country to the
Contractor's office in the United States or to USAID/Washington for
consultation and return on occasions deemed necessary by the Contractor
and approved in advance, in writing, by the Contracting Officer or the
Mission Director.

\(e\) [Special international travel and third country
travel]{.underline}. For special travel which advances the purpose of
the contract, which is not otherwise provided by the Cooperating
Government, and with the prior written approval of the Contracting
Officer or the Mission Director, the Contractor shall be reimbursed for
(i) the travel cost of travelers other than between the United States
and the Cooperating Country and for local travel within other countries
and (ii) travel allowance for travelers while in travel status and while
performing services hereunder in such other countries at rates not in
excess of those prescribed by the Standardized Regulations.

\(f\) [Indirect travel for personal convenience]{.underline}. When
travel is performed by an indirect route for the personal convenience of
the traveler, the allowable costs of such travel will be computed on the
basis of the cost of allowable air fare via the direct usually traveled
route. If such costs include fares for air or ocean travel by foreign
flag carriers, approval for indirect travel by such foreign flag
carriers must be obtained from the Contracting Officer or the Mission
Director before such travel is undertaken, otherwise only that portion
of travel accomplished by United States-flag carriers will be
reimbursable within the above limitation of allowable costs.

\(g\) [Limitation on travel by dependents]{.underline}. Travel costs and
allowances will be allowed only for dependents of regular employees and
such costs shall be reimbursed for travel from place of abode to
assigned station in the Cooperating Country and return, only if
dependent remains in the country for at least 9 months or one-half of
the required tour of duty of the regular employee responsible for such
dependent, whichever is greater. If the dependent is eligible for
educational travel pursuant to the "Differential and Allowances" clause
of this contract, time spent away from post resulting from educational
travel will be counted as time at post.

\(h\) [Delays en route]{.underline}. The Contractor may grant to
travelers under this contract reasonable delays en route while in travel
status when such delays are caused by events beyond the control of such
traveler or Contractor. It is understood that if delay is caused by
physical incapacitation, personnel shall be eligible for such sick leave
as provided under the "Leave and Holidays" clause of this contract.

\(i\) [Travel by privately owned automobile.]{.underline} The Contractor
shall be reimbursed for the cost of travel performed by a regular
employee in his/her privately owned automobile at a rate not to exceed
that authorized in the Federal Travel Regulations plus authorized per
diem for the employee and for each of the authorized dependents
traveling in the automobile, if the automobile is being driven to or
from the Cooperating Country as authorized under the contract, provided
that the total cost of the mileage and the per diem paid to all
authorized travelers shall not exceed the total constructive cost of
fare and normal per diem by all authorized travelers by surface common
carrier or authorized air fare, whichever is less.

\(j\) [Emergency and irregular travel and transportation]{.underline}.
Emergency transportation costs and travel allowances while en route, as
provided in this section will also be reimbursed not to exceed amounts
authorized by the Foreign Service Travel Regulations for USAID-direct
hire employees in like circumstances under the following conditions:

\(1\) The costs of going from post of duty in the Cooperating Country to
the employee's permanent, legal place of residence at the time he or she
was employed for work under this contract or other location for
Contractor employees and dependents and returning to the post of duty,
when the Contractor's Chief of Party, with the concurrence of the
Contracting Officer or Mission Director makes a written determination
that such travel is necessary for one of the reasons specified in
subparagraphs (j)(1)(i) and (ii) of this section. A copy of the written
determination shall be furnished to the Contracting Officer.

\(i\) Need for medical care beyond that available within the area to
which the employee is assigned, or serious effect on physical or mental
health if residence is continued at assigned post of duty, subject in
either case, to the limitations stated in the clause of this contract
entitled "Personnel - Physical Fitness of Employee and Dependents." The
Mission Director may authorize a medical attendant to accompany the
employee at contract expense if, based on medical opinion, such an
attendant is necessary.

\(ii\) Death, or serious illness or injury of a member of the immediate
family of the employee or the immediate family of the employee's spouse.

\(2\) When, for any reason, the Mission Director determines it is
necessary to evacuate the Contractor's entire team (employees and
dependents) or Contractor dependents only, the Contractor will be
reimbursed for travel and transportation expenses and travel allowance
while en route, for the cost of the individuals going from post of duty
in the Cooperating Country to the employee's permanent, legal place of
residence at the time he or she was employed for work under this
contract or other approved location. The return of such employees and
dependents may also be authorized by the Mission Director when, in
his/her discretion, he/she determines it is prudent to do so.

\(3\) The Mission Director may also authorize emergency or irregular
travel and transportation in other situations, when in his/her opinion,
the circumstances warrant such action. The authorization shall include
the kind of leave to be used and appropriate restrictions as to time
away from post, transportation of personal and/or household effects,
etc. Requests for such emergency travel shall be submitted through the
Contractor's Chief of Party.

\(k\) [Home leave travel]{.underline}. To the extent that home leave has
been authorized as provided in the "Leave and Holidays" clause of this
contract, the cost of travel for home leave is reimbursable for travel
costs and travel allowances of travelers from the post of duty in the
Cooperating Country to place of residence in the United States (or other
location provided that the cost of such travel does not exceed the cost
of travel to the employee's residence in the United States) and return
to the post of duty in the Cooperating Country. Reimbursement for travel
will be in accordance with the applicable cost principles and the
provisions of this contract, and will be limited to the cost of travel
by the most direct and expeditious route. When travel is by economy
class accommodations, the Contractor will be reimbursed for the cost of
transporting up to 22 pounds of accompanied personal baggage per
traveler in addition to that regularly allowed with the economy ticket
provided that the total number of pounds of baggage does not exceed that
regularly allowed for first class travelers. Travel allowances for
travelers shall not be in excess of the rates authorized in the
Standardized Regulations as from time to time amended, for not more than
the travel time required by scheduled commercial air carrier using the
most expeditious route. One stopover en route for a period of not to
exceed 24 hours is allowable when the traveler uses economy class
accommodations for a trip of 14 hours or more of scheduled duration.
Such stopover shall not be authorized when travel is by indirect route
or is delayed for the convenience of the traveler. Per diem during such
stopover shall be paid in accordance with the established practice of
the Contractor but not to exceed the amounts stated in the Standardized
Regulations.

\(l\) [Rest and recuperation travel]{.underline}. The Contractor shall
be reimbursed for the cost of travel performed by regular employees and
dependents for purposes of rest and recuperation provided that such
reimbursement does not exceed that authorized for USAID direct hire
employees, and provided further that no reimbursement will be made
unless approval is given by the Contractor's Chief of party.

\(m\) [Transportation of motor vehicles, personal effects and household
goods]{.underline}.

\(1\) Transportation, including packing and crating costs, will be paid
for shipping from the point of origin in the United States (or other
location as approved by the Contracting Officer) to post of duty in the
Cooperating Country and return to point of origin in the United States
(or other location as approved by the Contracting Officer) of one
privately-owned vehicle for each regular employee, personal effects of
travelers and household goods of each regular employee not to exceed the
limitations in effect for such shipments for USAID direct hire employees
in accordance with the Foreign Service Travel Regulations as in effect
when shipment is made.

\(2\) If a regular employee does not complete one full year at post of
duty (except for reasons beyond his/her control), the costs for
transportation of vehicles, effects and goods to and from the post of
duty are not reimbursable hereunder. If the employee serves more than
one year but less than the required service in the Cooperating Country
(except for reasons beyond his/her control) the costs for transportation
of vehicles, effects and goods to the post of duty are reimbursable
hereunder but the costs for transportation of vehicles, effects and
goods from post of duty to the employee's permanent, legal place of
residence at the time he or she was employed for work under this
contract or other location as approved by the Contracting Officer are
not reimbursable under this contract.

\(3\) The cost of transporting motor vehicles and household goods shall
not exceed the cost of packing, crating and transportation by surface.
In the event that the carrier does not require boxing or crating of
motor vehicles for shipment to the Cooperating Country, the cost of
boxing or crating is not reimbursable. The transportation of a
privately-owned motor vehicle for a regular employee may be authorized
by the Contractor as replacement of the last such motor vehicle shipped
under this contract for the employee when the Mission Director or
his/her designee determines in advance and so notifies the Contractor in
writing that the replacement is necessary for reasons not due to the
negligence or malfeasance of the regular employee. The determination
shall be made under the same rules and regulations that apply to Mission
employees.

\(n\) [Unaccompanied baggage]{.underline}. Unaccompanied baggage is
considered to be those personal belongings needed by the traveler
immediately upon arrival at destination. To permit the arrival of
effects to coincide with the arrival of regular employees and
dependents, consideration should be given to advance shipments of
unaccompanied baggage. The Contractor will be reimbursed for costs of
shipment of unaccompanied baggage (in addition to the weight allowance
for household effects) not to exceed the limitations in effect for USAID
direct hire employees in accordance with the Foreign Service Travel
Regulations as in effect when shipment is made.

This unaccompanied baggage may be shipped as air freight by the most
direct route between authorized points of origin and destination
regardless of the modes of travel used. This provision is applicable to
home leave travel and to short-term employees when these are authorized
by the terms of this contract.

\(o\) [Storage of household effects]{.underline}. The cost of storage
charges (including packing, crating, and drayage costs) in the U.S. of
household goods of regular employees will be permitted in lieu of
transportation of all or any part of such goods to the Cooperating
Country under paragraph (m) above provided that the total amount of
effects shipped to the Cooperating Country or stored in the U.S. shall
not exceed the amount authorized for USAID direct hire employees under
the Uniform Foreign Service Travel Regulations.

\(p\) [International ocean transportation]{.underline}.

\(1\) Flag eligibility requirements for ocean carriage are covered by
the "Source and Nationality Requirements" clause of this contract.

\(i\) Transportation of things. Where U.S. flag vessels are not
available, or their use would result in a significant delay, the
Contractor may obtain a release from this requirement from the
Transportation Division, Office of Procurement, U.S. Agency for
International Development, Washington, D.C. 20523-1419, or the Mission
Director, as appropriate, giving the basis for the request.

\(ii\) Transportation of persons. Where U.S. flag vessels are not
available, or their use would result in a significant delay, the
Contractor may obtain a release from this requirement from the
Contracting Officer or the Mission Director, as appropriate.

\(2\) Transportation of foreign-made vehicles. Reimbursement of the
costs of transporting a foreign-made motor vehicle will be made in
accordance with the provisions of the Foreign Service Travel
Regulations.

\(3\) Reduced rates on U.S. flag carriers. Reduced rates on United
States flag carriers are in effect for shipments of household goods and
personal effects of USAID contract personnel. These reduced rates are
available provided the shipper states on the bill of lading that the
cargo is "Personal property-not for resale-payment of freight charges is
at U.S. Government (USAID) expense and any special or diplomatic
discounts accorded this type cargo are applicable." The Contractor will
not be reimbursed for shipments of household goods or personal effects
in an amount in excess of the reduced rates available in accordance with
the foregoing.

**752**.**7003** Documentation for Payment.

The following clause is required in all USAID direct contracts,
excluding fixed price contracts:

**DOCUMENTATION FOR PAYMENT (NOV 1998)**

\(a\) Claims for reimbursement or payment under this contract must be
submitted to the Paying Office indicated in the schedule of this
contract. The cognizant technical officer (CTO) is the authorized
representative of the Government to approve vouchers under this
contract. The Contractor must submit either paper or fax versions of the
SF-1034 --Public Voucher for Purchases and Services Other Than Personal.
Each voucher shall be identified by the appropriate USAID contract
number, in the amount of dollar expenditures made during the period
covered.

\(1\) The SF 1034 provides space to report by line item for products or
services provided. The form provides for the information to be reported
with the following elements:

  --------------------- ----------------------------- --------------- ----------------
  **TOTAL EXPENDITURES\                                               
  (Document Number:                                                   
  XXX-X-XX-XXXX-XX)**                                                 

  *Line Item*           *Description*                 *Amt. Vouchered *Amt. Vouchered
                                                      To Date*        This Period*

  0001                  Product/Service Desc. for     \$XXXX.XX       \$XXXX.XX
                        Line Item 0001                                

  0002                  Product/Service Desc. for     \$XXXX.XX       \$XXXX.XX
                        Line Item 0002                                

  **Total**                                           **\$XXXX.XX**   **\$XXXX.XX**
  --------------------- ----------------------------- --------------- ----------------

\(2\) The fiscal report shall include a certification, signed by an
authorized representative of the Contractor, as follows:

The undersigned hereby certifies to the best of my knowledge and belief
that the fiscal report and any attachments have been prepared from the
books and records of the Contractor in accordance with the terms of this
contract and are correct: the sum claimed under this contract is proper
and due, and all the costs of contract performance (except as herewith
reported in writing) have been paid, or to the extent allowed under the
applicable payment clause, will be paid currently by the Contractor when
due in the ordinary course of business; the work reflected by these
costs has been performed, and the quantities and amounts involved are
consistent with the requirements of this Contract; all required
Contracting Officer approvals have been obtained; and appropriate refund
to USAID will be made promptly upon request in the event of disallowance
of costs not reimbursable under the terms of this contract.

BY:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

TITLE:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

DATE:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\(b\) [Local currency payment]{.underline}. The Contractor is fully
responsible for the proper expenditure and control of local currency, if
any, provided under this contract. Local currency will be provided to
the Contractor in accordance with written instruction provided by the
Mission Director. The written instructions will also include accounting,
vouchering, and reporting procedures. A copy of the instructions shall
be provided to the Contractor's Chief of Party and to the Contracting
Officer. The costs of bonding personnel responsible for local currency
are reimbursable under this contract.

\(c\) Upon compliance by the Contractor with all the provisions of this
contract, acceptance by the Government of the work and final report, and
a satisfactory accounting by the Contractor of all Government-owned
property for which the Contractor had custodial responsibility, the
Government shall promptly pay to the Contractor any moneys (dollars or
local currency) due under the completion voucher. The Government will
make suitable reduction for any disallowance or indebtedness by the
Contractor by applying the proceeds of the voucher first to such
deductions and next to any unliquidated balance of advance remaining
under this contract.

\(d\) The Contractor agrees that all approvals of the Mission Director
and the Contracting Officer which are required by the provisions of this
contract shall be preserved and made available as part of the
Contractor's records which are required to be presented and made
available by the clause of this contract entitled "Audit and Records --
Negotiation".

**752.7004** Emergency locator information.

The following clause is required to be included in all contracts
requiring travel overseas.

**EMERGENCY LOCATOR INFORMATION (July 1997)**

The Contractor agrees to provide the following information to the
Mission Administrative Officer on or before the arrival in the host
country of every contract employee or dependent:

\(1\) The individual's full name, home address, and telephone number.

\(2\) The name and number of the contract, and whether the individual is
an employee or dependent.

\(3\) The contractor's name, home office address, and telephone number,
including any after-hours emergency number(s), and the name of the
contractor's home office staff member having administrative
responsibility for the contract.

\(4\) The name, address, and telephone number(s) of each individual's
next of kin.

\(5\) Any special instructions pertaining to emergency situations such
as power of attorney designees or alternate contact persons.

**752.7005** Submission Requirements for Development Experience
Documents

The following clause shall be included in all USAID
professional/technical contracts in which development experience
documents are likely to be produced.

**SUBMISSION REQUIREMENTS FOR DEVELOPMENT**

**EXPERIENCE DOCUMENTS (OCT 1997)**

\(a\) Contract Reports and Information/Intellectual Products.

\(1\) The Contractor shall submit to the Development Experience
Information Division of the Center for Development Information and
Evaluation (PPC/DCIE/DI) in the Bureau for Policy and Program
Coordination, copies of reports and information products which describe,
communicate or organize program/project development assistance
activities, methods, technologies, management, research, results and
experience as outlined in the Agency\'s ADS Chapter 540, section
E540.5.2b(3). Information may be obtained from the Cognizant Technical
Officer (CTO). These reports include: assessments, evaluations, studies,
development experience documents, technical reports and annual reports.
The Contractor shall also submit to PPC/CDIE/DI copies of information
products including training materials, publications, databases, computer
software programs, videos and other intellectual deliverable materials
required under the Contract Schedule. Time-sensitive materials such as
newsletters, brochures, bulletins or periodic reports covering periods
of less than a year are not to be submitted.

\(2\) Upon contract completion, the contractor shall submit to
PPC/CDIE/DI an index of all reports and information/intellectual
products referenced in paragraph (a)(1) of this clause.

\(b\) Submission requirements.

\(1\) Distribution. (i) The contractor shall submit contract reports and
information/intellectual products (referenced in paragraph (a)(1) of
this clause) in electronic format and hard copy (one copy) to U.S.
Agency for International Development PPC/CDIE/DI, Attn: ACQUISITIONS,
Washington D.C. 20523 at the same time submission is made to the CTO.

\(ii\) The contractor shall submit the reports index referenced in
paragraph (a)(2) of this clause and any reports referenced in paragraph
(a)(1) of this clause that have not been previously submitted to
PPC/CDIE/DI, within 30 days after completion of the contract to the
address cited in paragraph (b)(1)(i) of this clause.

\(2\) Format. (i) Descriptive information is required for all Contractor
products submitted. The title page of all reports and information
products shall include the contract number(s), contractor name(s), name
of the USAID cognizant technical office, the publication or issuance
date of the document, document title, author name(s), and strategic
objective or activity title and associated number. In addition, all
materials submitted in accordance with this clause shall have attached
on a separate cover sheet the name, organization, address, telephone
number, fax number, and Internet address of the submitting party.

\(ii\) The hard copy report shall be prepared using non-glossy paper
(preferably recycled and white or off-white) using black ink. Elaborate
art work, multicolor printing and expensive bindings are not to be used.
Whenever possible, pages shall be printed on both sides.

\(iii\) The electronic document submitted shall consist of only one
electronic file which comprises the complete and final equivalent of the
hard copy submitted.

\(iv\) Acceptable software formats for electronic documents include
WordPerfect, Microsoft Word, ASCII, and Portable Document Format (PDF).
Submission in Portable Document Format is encouraged.

\(v\) The electronic document submission shall include the following
descriptive information:

\(A\) Name and version of the application software used to create the
file, e.g., WordPerfect Version 6.1 or ASCII or PDF.

\(B\) The format for any graphic and/or image file submitted, e.g.,
TIFF-compatible.

\(C\) Any other necessary information, e.g. special backup or data
compression routines, software used for storing/retrieving submitted
data, or program installation instructions.

**752.7006** Notices.

The following clause shall be used in all USAID contracts.

**NOTICES (APR 1984)**

Any notice given by any of the parties hereunder shall be sufficient
only if in writing and delivered in person or sent by telegraph, cable,
or registered or regular mail as follows:

[To USAID]{.underline}: Administrator, U.S. Agency for International
Development, Washington, D.C. 20523-0061. Attention: Contracting Officer
(the name of the cognizant Contracting Officer with a copy to the
appropriate Mission Director).

[To Contractor]{.underline}: At Contractor's address shown on the cover
page of this contract, or to such other address as either of such
parties shall designate by notice given as herein required. Notices
hereunder shall be effective when delivered in accordance with this
clause or on the effective date of the notice, whichever is later.

**752.7007** Personnel Compensation.

The following clause shall be used in all USAID cost-reimbursement
contracts.

**PERSONNEL COMPENSATION (July 1996)**

\(a\) Direct compensation of the Contractor's personnel will be in
accordance with the Contractor's established policies, procedures, and
practices, and the cost principles applicable to this contract.

\(b\) Compensation (i.e., the employee's base annual salary plus
overseas recruitment incentive, if any) which exceeds the maximum
payable annual or daily rate for an Executive Service level ES-6, as
published in the Federal Register, will be reimbursed only with the
approval of the Contracting Officer, as prescribed in 731.205-6(d) or
731.371(b), as applicable.

**752.7008** Use of Government Facilities or Personnel.

The following clause is for use in all USAID non-commercial contracts.

**USE OF GOVERNMENT FACILITIES OR PERSONNEL (APR 1984)**

\(a\) The Contractor and any employee or consultant of the Contractor is
prohibited from using U.S. Government facilities (such as office space
or equipment) or U.S. Government clerical or technical personnel in the
performance of the services specified in the contract, unless the use of
Government facilities or personnel is specifically authorized in the
contract, or is authorized in advance, in writing, by the Contracting
Officer.

\(b\) If at any time it is determined that the Contractor, or any of its
employees or consultants have used U.S. Government facilities or
personnel without authorization either in the contract itself, or in
advance, in writing, by the Contracting Officer, then the amount payable
under the contract shall be reduced by an amount equal to the value of
the U.S. Government facilities or personnel used by the Contractor, as
determined by the Contracting Officer.

\(c\) If the parties fail to agree on an adjustment made pursuant to
this clause, it shall be considered a dispute, and shall be dealt with
under the terms of the clause of this contract entitled "Disputes".

**752.7009** Marking.

The following clause is for use in all USAID contracts performed in
whole or in part overseas.

**MARKING (JAN 1993)**

\(a\) It is USAID policy that USAID-financed commodities and shipping
containers, and project construction sites and other project locations
be suitably marked with the USAID emblem. Shipping containers are also
to be marked with the last five digits of the USAID financing document
number. As a general rule, marking is not required for raw materials
shipped in bulk (such as coal, grain, etc.), or for semifinished
products which are not packaged.

\(b\) Specific guidance on marking requirements should be obtained prior
to procurement of commodities to be shipped, and as early as possible
for project construction sites and other project locations. This
guidance will be provided through the cognizant technical office
indicated on the cover page of this contract, or by the Mission Director
in the Cooperating Country to which commodities are being shipped, or in
which the project site is located.

\(c\) Authority to waive marking requirements is vested with the
Regional Assistant Administrators, and with Mission Directors.

\(d\) A copy of any specific marking instructions or waivers from
marking requirements is to be sent to the Contracting Officer; the
original should be retained by the Contractor.

**752.7010** Conversion of U.S. Dollars to Local Currency.

For use in all USAID non-commercial contracts involving performance
overseas.

**CONVERSION OF U.S. DOLLARS TO LOCAL CURRENCY (APR 1984)**

Upon arrival in the Cooperating Country, and from time to time as
appropriate, the Contractor's Chief of Party shall consult with the
Mission Director who shall provide, in writing, the procedure the
Contractor and its employees shall follow in the conversion of United
States dollars to local currency. This may include, but is not limited
to, the conversion of said currency through the cognizant U.S.
Disbursing Officer or Mission Controller, as appropriate.

**752.7011** Orientation and Language Training.

For use in all USAID cost-reimbursement contracts involving performance
overseas.

**ORIENTATION AND LANGUAGE TRAINING (APR 1984)**

\(a\) Regular employees shall receive a maximum of 2 weeks USAID
sponsored orientation before travel overseas. The dates of orientation
shall be selected by the Contractor from the orientation schedule
provided by USAID.

\(b\) Participation in USAID sponsored orientation in no way relieves
the Contractor of its responsibility for assuring that all employees,
regular and short-term, are properly oriented. As an addition to or
substitution for USAID's sponsored orientation for regular employees,
the following types of orientation may be authorized taking into
consideration specific job requirements, the employee's prior overseas
experience, or unusual circumstances:

\(1\) Modified orientation.

\(2\) Language training, particularly when significant for operating
capabilities.

\(3\) Orientation and language training for regular employee's
dependents.

\(4\) Contractor-sponsored orientation.

\(5\) Orientation in all matters related to the administrative,
logistical, and technical aspects of the employee's movement to, and
tour of duty in, the Cooperating Country.

\(c\) Authorization for an additional or alternate orientation program,
if any, shall be either set forth in the schedule or provided in writing
by the Contracting Officer.

\(d\) Travel expenses not to exceed one round trip from regular
employee's residence to place of orientation and return will be
reimbursed, pursuant to the cost principles applicable to this contract.
Allowable salary costs during the period of orientation are also
reimbursable.

**752.7012** Protection of the Individual as a Research Subject.

This clause is for use in any USAID contract, which involves research
using human subjects.

PROTECTION OF THE INDIVIDUAL AS A RESEARCH SUBJECT (August 1995)

\(a\) Safeguarding the rights and welfare of human subjects in research
conducted under a USAID contract is the responsibility of the
contractor. USAID has adopted the Common Federal Policy for the
Protection of Human Subjects. USAID's Policy is found in Part 225 of
Title 22 of the Code of Federal Regulations (the "Policy"). Additional
interpretation, procedures, and implementation guidance of the Policy
are found in USAID General Notice entitled "Procedures for the
Protection of Human Subjects in Research Supported by USAID", issued
April 19, 1995, as from time to time amended (a copy of which is
attached to this contract). USAID's Cognizant Human Subjects Officer
(CHSO) and USAID/W has oversight, guidance, and interpretation
responsibility for the Policy.

\(b\) Contractors must comply with the Policy when humans are the
subject of research, as defined in 22 CFR 225.102(d), performed as part
of the contract, and contractors must provide "assurance", as required
by 22 CFR 225.103, that they follow and abide by the procedures in the
Policy. See also Section 5 of the April 19, 1995, USAID General Notice
which sets forth activities to which the Policy is applicable. The
existence of a bona fide, applicable assurance approved by the
Department of Health and Human Services (HHS) such as the "multiple
project assurance" (MPA) will satisfy this requirement. Alternatively,
contractors can provide an acceptable written assurance to USAID as
described in 22 CFR 225.103. Such assurances must be determined by the
CHSO to be acceptable prior to any applicable research being initiated
or conducted under the contract. In some limited instances outside the
U.S., alternative systems for the protection of human subjects may be
used provided they are deemed "at least equivalent" to those outlined in
Part 225 (see 22 CFR 225.101(h)). Criteria and procedures for making
this determination are described in the General Notice cited in the
preceding paragraph.

\(c\) Since the welfare of the research subject is a matter of concern
to USAID as well as to the contractor, USAID staff, consultants and
advisory groups may independently review and inspect research, and
research processes and procedures involving human subjects, and based on
such findings, the CHSO may prohibit research which presents
unacceptable hazards or otherwise fails to comply with USAID procedures.
Informed consent documents must include the stipulation that the
subject's records may be subject to such review.

**752.7013** Contractor-Mission Relationships.

For use in all USAID contracts involving performance overseas. Note that
paragraph (f) of this clause is applicable only in contracts with an
educational institution.

**CONTRACTOR-MISSION RELATIONSHIPS** **(OCT 1989)**

\(a\) The Contractor acknowledges that this contract is an important
part of the United States Foreign Assistance Program and agrees that its
operations and those of its employees in the Cooperating Country will be
carried out in such a manner as to be fully commensurate with the
responsibility, which this entails.

\(b\) The Mission Director is the chief representative of USAID in the
Cooperating Country. In this capacity, he/she is responsible for the
total USAID program in the cooperating country including certain
administrative responsibilities set forth in this contract and for
advising USAID regarding the performance of the work under the contract
and its effect on the United States Foreign Assistance Program. Although
the Contractor will be responsible for all professional, technical, and
administrative details of the work called for by the contract, it shall
be under the guidance of the Mission Director in matters relating to
foreign policy. The Chief of Party shall keep the Mission Director
currently informed of the progress of the work under the contract.

\(c\) In the event the conduct of any Contractor employee is not in
accordance with the preceding paragraphs, the contractor's Chief of
Party shall consult with the Mission Director and the employee involved
and shall recommend to the Contractor a course of action with regard to
such employee.

\(d\) The parties recognize the right of the U.S. Ambassador to direct
the removal from a country of any U.S. citizen or the discharge from
this contract of any third country national or cooperating country
national when, at the discretion of the Ambassador, the interests of the
United States so require. Under these circumstances termination of an
employee and replacement by an acceptable substitute shall be at no cost
to USAID.

\(e\) If it is determined that the services of such employee shall be
terminated, the Contractor shall use its best efforts to cause the
return of such employee to the United States or point of origin as
appropriate.

(The following paragraph (f) is applicable if the contract is with an
educational institution:)

\(f\) It is understood by the parties that the Contractor's
responsibilities shall not be restrictive of academic freedom.
Notwithstanding these academic freedoms, the Contractor's employees,
while in the Cooperating Country, are expected to show respect for its
conventions, customs, and institutions, to abide by applicable laws and
regulations, and not to interfere in its internal political affairs.

**752.7014** Notice of Changes in Travel Regulations.

The following clause is for use in cost-reimbursement contracts
involving work overseas.

**NOTICE OF CHANGES IN TRAVEL REGULATIONS (JAN 1990)**

\(a\) Changes in travel, differential, and allowance regulations shall
be effective on the beginning of the contractor's next pay period
following the effective date of the change as published in the
applicable travel regulations (the Standardized Regulations (Government
Civilians, Foreign Areas), the Uniform State/USAID/USIA Foreign Service
Travel Regulations, and the Federal Travel Regulations).

\(b\) The Standardized Regulations (Government Civilians Foreign Areas),
and the Federal Travel Regulations are available from the Superintendent
of Documents, U.S. Government Printing Office, Washington, D.C. 20402.

\(c\) Information regarding the Uniform State/USAID/USIA Foreign Service
Travel Regulations as referenced in the "Travel and Transportation"
clause of this contract may be obtained from the Contracting Officer.

**752.7015** Use of Pouch Facilities.

For use in all USAID non-commercial contracts exceeding the simplified
acquisition threshold and involving performance overseas.

**USE OF POUCH FACILITIES (JULY 1997)**

\(a\) Use of diplomatic pouch is controlled by the Department of State.
The Department of State has authorized the use of pouch facilities for
USAID contractors and their employees as a general policy, as detailed
in paragraphs (a)(1) through (a)(7) of this section; however, the final
decision regarding use of pouch facilities rests with the Embassy or
USAID Mission. In consideration of the use of pouch facilities as
hereinafter stated, the Contractor and its employees agree to indemnify
and hold harmless the Department of State and USAID against loss or
damage occurring in pouch transmission.

\(1\) Contractors and their employees are authorized use of the pouch
for transmission and receipt of up to a maximum of 2 pounds per shipment
of correspondence and documents needed in the administration of foreign
assistance programs.

\(2\) U.S. citizen employees of U.S. contractors are authorized use of
the pouch for personal mail up to a maximum of one pound per shipment
(but see paragraph (a)(3) of this section).

\(3\) Merchandise, parcels, magazines, or newspapers are not considered
to be personal mail for purposes of this clause, and are not authorized
to be sent or received by pouch.

\(4\) Official mail as authorized by paragraph (a)(1) of this clause
should be addressed as follows: Individual or Organization Name,
followed by the symbol "C", city Name of Post, U.S. Agency for
International Development, Washington, D.C. 20523-0001.

\(5\) Personal mail pursuant to paragraph (a)(2) of this section should
be sent to the address specified in paragraph (a)(4) of this section,
but without the name of the organization.

\(6\) Mail sent via the diplomatic pouch may not be in violation of U.S.
Postal laws and may not contain material ineligible for pouch
transmission.

\(7\) USAID contractor personnel are not authorized use of military
postal facilities (APO/FPO). This is an Adjutant General's decision
based on existing laws and regulations governing military postal
facilities and is being enforced worldwide. Posts having access to
APO/FPO facilities and using such for diplomatic pouch dispatch, may,
however, accept official mail from Contractors and letter mail from
their employees for the pouch, provided of course, adequate postage is
affixed.

\(b\) The Contractor shall be responsible for advising its employees of
this authorization and these guidelines and limitations on use of pouch
facilities.

\(c\) Specific additional guidance on use of pouch facilities in
accordance with this clause is available from the Post Communication
Center at the Embassy or USAID Mission.

**752.7016** Family Planning and Population Assistance Activities.

The following clause is applicable to all contracts involving any aspect
of family planning or population activities.

FAMILY PLANNING AND POPULATION ASSISTANCE ACTIVITIES (AUG 1986)

\(a\) [Voluntary Participation]{.underline}.

\(1\) The Contractor agrees to take any steps necessary to ensure that
funds made available under this contract will not be used to coerce any
individual to practice methods of family planning inconsistent with such
individual's moral, philosophical, or religious beliefs. Further, the
Contractor agrees to conduct its activities in a manner which safeguards
the rights, health and welfare of all individuals who take part in the
program.

\(2\) Activities which provide family planning services or information
to individuals, financed in whole or in part under this contract, shall
provide a broad range of family planning methods and services available
in the country in which the activity is conducted or shall provide
information to such individuals regarding where such methods and
services may be obtained.

\(b\) [Prohibition on Abortion-related Activities]{.underline}. No funds
made available under this Contract shall be used to finance, support, or
be attributed to the following activities: (i) procurement or
distribution of equipment intended to be used for the purposes of
inducing abortions as a method of family planning: (ii) special fees or
incentives to women to coerce or motivate them to have abortions; (iii)
payments to persons to perform abortions or to solicit persons to
undergo abortions; (iv) information, education, training, or
communication programs that seek to promote abortion as a method of
family planning; (v) any biomedical research which relates, in whole or
in part, to methods of, or the performance of, abortions or involuntary
sterilization as a means of family planning (epidemiologic or
descriptive research to assess the incidence, extent or consequences of
abortion is not precluded); or (vi) lobbying for abortion.

\(c\) [Voluntary Participation Requirements for Sterilization
Programs]{.underline}.

\(1\) None of the funds made available under this contract shall be used
to pay for the performance of involuntary sterilizations or to coerce or
provide any financial incentive to any person to practice
sterilizations.

\(2\) The Contractor shall insure that any surgical sterilization
procedures supported in whole or in part by funds from the contract are
performed only after the individual has voluntarily come to the
treatment facility and has given an informed consent to the
sterilization procedure. Informed consent means the voluntary knowing
assent from the individual given after being advised of the surgical
procedures to be followed, the attendant discomforts and risks, the
benefits to be expected, the availability of alternative methods of
family planning, the purpose of the operation and its irreversibility,
and the fact that the consent can be withdrawn at any time prior to the
operation. An individual's consent is considered voluntary if it is
based upon the exercise of free choice and is not obtained by any
special inducement or any element of force, fraud, deceit, duress or
other forms of coercion or misrepresentation.

\(3\) Further, the Contractor shall document the patient's informed
consent by: (i) A written consent document in a language the patient
understands and speaks, which explains the basic elements of informed
consent, as set out above, and which is signed by the individual and by
the attending physician or by the authorized assistant of the attending
physician; or (ii) when a patient is unable to read adequately a written
certification signed by the attending physician or by the authorized
assistant of the attending physician that the basic elements of informed
consent above were orally presented to the patient, and that the patient
thereafter consented to the performance of the operation. The receipt of
the oral explanation shall be acknowledged by the patient's mark on the
certification and by the signature or mark of a witness who shall be of
the same sex and speak the same language as the patient.

\(4\) Copies of informed consent forms and certification documents for
each voluntary sterilization (VS) procedure must be retained by the
performing Contractor or subcontractor for a period of three years after
the performance of the sterilization procedure.

\(d\) The Contractor shall insert the substance of this clause in any
subgrants, subcontracts, purchase orders, and other subordinate
agreements hereunder whenever appropriate to the goods and services to
be provided under such agreements.

**752.7017** \[Reserved\]

**752.7018** Health and Accident Coverage for USAID Participant
Trainees.

For use in any USAID contract under which USAID participants are
trained.

**HEALTH AND ACCIDENT COVERAGE FOR**

**USAID PARTICIPANT TRAINEES (JAN 1999)**

\(a\) In accordance with the requirements of USAID Automated Directive
System (ADS) 253.5.6b, the Contractor shall enroll all non-U.S. trainees
(hereinafter referred to as \`\`participants\'\'), whose training in the
U.S. is financed by USAID under this contract, in USAID\'s Health and
Accident Coverage (HAC) program. Sponsored trainees enrolled in
third-country or in-country training events are not eligible for
USAID\'s HAC program, but the Contractor may obtain alternative local
medical and accident insurance at contract expense, provided the cost is
consistent with the cost principles in FAR 31.2

\(b\) When enrollment in the HAC program is required per paragraph (a)
of this clause, the Contractor must enroll each participant in the HAC
program through one of two designated contractors prior to the
initiation of travel by the participant. USAID has developed an
Agency-wide database training management system, the Training Results
and Information Network ("TraiNet"), which is the preferred system for
managing USAID\'s participant training program, including enrollment in
the HAC program. However, until such time as the USAID sponsoring unit
(as defined in ADS 253) has given the Contractor access to USAID\'s
\`\`TraiNet\'\' software for trainee tracking and HAC enrollment, the
Contractor must fill out and mail the Participant Data Form (PDF) (Form
USAID 1381-4) to USAID. The Contractor can obtain information regarding
each HAC program contractor, including contact information, and a supply
of the PDF forms and instructions for completing and submitting them, by
contacting the data base contractor serving the Global Center for Human
Capacity Development (G/HCD).

\(c\) The Contractor must ensure that HAC enrollment begins immediately
upon the participant\'s departure for the United States for the purpose
of participating in a training program financed by USAID, and that
enrollment continues in full force and effect until the participant
returns to his/her country of origin, or is released from USAID\'s
responsibility, whichever is the sooner.

\(1\) The HAC insurance provider, not the Contractor, shall be
responsible for paying all reasonable and necessary medical
reimbursement charges not otherwise covered by student health service or
other insurance programs, subject to the availability of funds for such
purposes, in accordance with the standards of coverage established by
USAID under its HAC program and by the HAC providers\' contracts.

\(2\) After HAC enrollment, upon receipt of HAC services invoice from
the selected HAC provider, the Contractor shall submit payment directly
to the HAC provider.

\(3\) The Contractor is responsible for ensuring that participants and
any stakeholders (as defined in ADS 253) are advised that USAID is not
responsible for any medical claims in excess of the coverages provided
by the HAC program, or for medical claims not eligible for coverage
under the HAC program, or not otherwise covered in this section.

\(d\) The Contractor, to the extent that it is an educational
institution with a mandatory student health service program, shall also
enroll participants in that institution\'s student health service
program. Medical costs which are covered under the institution\'s
student health service shall not be eligible for payment under USAID\'s
HAC program.

\(e\) If the Contractor has a mandatory, non-waivable health and
accident insurance program for students, the costs of such insurance
will be allowable under this contract. Any claims eligible under such
insurance will not be payable under USAID\'s HAC plan or under this
contract. Even though the participant is covered by the Contractor\'s
mandatory, non-waivable health and accident insurance program, the
participant MUST be enrolled in USAID\'s more comprehensive HAC program.

\(f\) Medical conditions pre-existing to the participant\'s sponsorship
for training by USAID, discovered during the required pre-departure
medical examination, are grounds for ineligibility for sponsorship
unless specifically waived by the sponsoring unit, and covered through a
separate insurance policy maintained by the participant or his employer,
or a letter of guarantee from the participant or the employer (which
thereby assumes liability for any related charges that might
materialize. (See ADS 253).

**752.7019** Participant Training.

For use in any USAID direct contract involving training of USAID
participants.

**PARTICIPANT TRAINING (Jan 1999)**

\(a\) Definitions.

\(1\) Participant training is the training of any foreign national
outside of his or her home country, using USAID funds.

\(2\) A Participant is any foreign national being trained under this
contract outside of his or her country.

\(b\) Applicable regulations. Participant training conducted under this
contract shall comply with the policies and essential procedures
pertaining to training-related services contained in USAID Automated
Directive System (ADS) Ch. 253 \`\`Training for Development Impact\'\'.
Any exceptions to ADS 253 requirements are specified as such within this
contract. The current version of Chapter 253 may be obtained directly
from the USAID website at http://www.info.usaid.gov/pubs/ads/200.

\(c\) The contractor shall be reimbursed for the reasonable and
allocable costs incurred in providing training to participants in the
United States or other approved location provided such costs do not
exceed the limitations in, or have been waived in accordance with, ADS
253.5.5.

Note: Academic rates are available through a special website monitored
by the United States Information Agency. The website for academic
programs is: http://www.iie.org/fulbright/posts/restrict. U.S.-based
participants receive the standardized U.S. travel per diem rates
maintained by GSA for short-term training
(website:http://policyworks.gov).

**752.7020** \[Reserved\].

**752.7021** Changes in Tuition and Fees.

For use in contracts for participant training with an educational
institution.

**CHANGES IN TUITION AND FEES (APR 1984)**

While educational programs for participants will be established
utilizing the Contractor's currently applicable tuition and fee
schedule, the parties understand that such standard tuition and fees may
be subject to change during the course of the program. If such event
results in an increase in the cost of the program, USAID agrees to pay
such increased standard tuition and fees in the next applicable academic
term as a condition for the continuation of the program. If such change
results in a decrease in the cost of the program, the Contractor agrees
to charge to USAID only the amount of such revised standard tuition and
fees in the next applicable academic term. The Contractor shall
undertake to keep USAID currently advised as to changes in its standard
tuition and fees. At such time as increases in the amounts of tuition
and fees results in there being inadequate funds remaining in this
contract to meet the costs of the next academic term, the Contractor
will so advise USAID. USAID may then provide such additional funds as
required to complete the program.

**752.7022** Conflicts Between Contract and Catalog.

For use in contracts for participant training with an educational
institution.

**CONFLICTS BETWEEN CONTRACT AND CATALOG (APR 1984)**

In the event of any inconsistency between the provisions of this
contract and any catalog, or other document incorporated in this
contract by reference or otherwise or any of the Contractor's rules and
regulations, the provisions of this contract shall govern.

**752.7023** Required Visa Form for USAID Participants.

For use in any USAID direct contract which involves training of USAID
participants.

**REQUIRED VISA FORM FOR USAID PARTICIPANTS (APR 1984)**

The Contractor shall insure that any foreign student brought to the
United States for training under this contract uses visa form IAP 66A
"Certificate for Exchange Visitor (J-1) Status".

**752.7024** Withdrawal of Students.

For use in contracts for participant training with an educational
institution.

**WITHDRAWAL OF STUDENTS (APR 1984)**

\(a\) The Government may, at its option and at any time, withdraw any
student.

\(b\) The Contractor may request withdrawal by the Government of any
student for academic or disciplinary reasons.

\(c\) If such withdrawal occurs prior to the end of a term, the
Government shall pay any tuition and fees due for the current term in
which the student may be enrolled, and the Contractor shall credit the
Government with any charges eligible for refund under the Contractor's
standard procedures for civilian students in effect on the effective
date of such withdrawal.

\(d\) Withdrawal of students by the Government shall not be the basis
for any special charge or claim by the Contractor other than as provided
by the Contractor's standard procedures.

**752.7025** Approvals.

For use in all USAID contracts.

**APPROVALS (APR 1984)**

All approvals required to be given under the contract by the Contracting
Officer or the Mission Director shall be in writing and, except when
extraordinary circumstances make it impracticable, shall be requested by
the Contractor sufficiently in advance of the contemplated action to
permit approval, disapproval or other disposition prior to that action.
If, because of existing conditions, it is impossible to obtain prior
written approval, the approving official may, at his discretion, ratify
the action after the fact.

**752.7026** \[Reserved\].

[**See CIB 98-21, Contractor Progress Reports -- new AIDAR
coverage**](http://www.usaid.gov/procurement_bus_opp/procurement/cib/)

**752.7027** Personnel.

For use in all USAID services contracts involving performance overseas.
Note that paragraphs (f) and (g) of this clause are for use only in cost
reimbursement contracts.

**PERSONNEL (DEC 1990)**

\(a\) [Clearance]{.underline}.

\(1\) [Individuals Engaged or Assigned Within the United
States]{.underline}. The contractor will obtain written notification
from the Contracting Officer of Cooperating Country clearance of any
employee sent outside the United States to perform duties under this
contract.

\(2\) [Individuals Engaged or Assigned When Outside the United
States]{.underline}. No individual shall be engaged or assigned when
outside the United States to perform work outside the United States
under this contract unless authorized in the schedule or otherwise
approved by the Contracting Officer or Mission Director. However, when
services are performed in the Cooperating Country on a casual or
irregular basis or in an emergency, exception to this provision can be
made in accordance with instructions or regulations established by the
Mission Director.

\(b\) [Physical fitness of employees and dependents]{.underline}. See
the clause of this contract entitled Physical Fitness.

\(c\) [Conformity to laws and regulations of Cooperating
Country]{.underline}. Contractor agrees to use its best efforts to
assure that its employees and their dependents, while in the Cooperating
Country, abide by all applicable laws and regulations of the Cooperating
Country and political subdivisions thereof.

\(d\) [Importation or sale of personal property or
automobiles]{.underline}. To the extent permitted by Cooperating Country
laws, the importation and sale of personal property or automobiles by
contractor employees and their dependents in the Cooperating Country
shall be subject to the same limitations and prohibitions which apply to
U.S. nationals employed by the Mission. This provision does not apply to
employees or consultants who are citizens or legal residents of the
Cooperating Country.

\(e\) [Economic and Financial Activities]{.underline}. Other than work
to be performed under this contract for which an employee or consultant
is assigned by the contractor, no such employee or consultant of the
contractor shall engage, directly or indirectly, either in his/her own
name or in the name or through the agency of another person, in any
business, profession or occupation in the Cooperating Country or other
foreign countries to which he/she is assigned, nor shall he make loans
or investments to or in any business, profession or occupation in the
Cooperating Country or other foreign countries in which he/she is
assigned. This provision does not apply to employees or consultants who
are citizens or legal residents of the Cooperating Country.

\[The following paragraphs (f) and (g) are applicable only to cost
reimbursement contracts.\]

\(f\) [Duration of Appointments]{.underline}.

\(1\) Regular employees will normally be appointed for a minimum of 2
years which period includes orientation (less language training) in the
United States and authorized international travel under the contract
except:

\(i\) An appointment may be made for less than 2 years if the contract
has less than 2 years but more than 1 year to run provided that if the
contract is extended the appointment shall also be extended to the full
2 years. This provision shall be reflected in the employment agreement
prior to employment under this contract.

\(ii\) When a 2-year appointment is not required, appointment may be
made for less than 2 years but in no event less than 1 year.

\(iii\) When the normal tour of duty established for USAID personnel at
a particular post is less than 2 years, then a normal appointment under
this contract may be of the same duration.

\(iv\) When the contractor is unable to make appointments of regular
employees for a full 2 years, the contractor may make appointments of
less than 2 but not less than 1 year, provided that such appointment is
approved by the Contracting Officer.

\(2\) Services required for less than 1 year will be considered
short-term appointments and the employee will be considered a short-term
employee.

\(g\) [Employment of Dependents]{.underline}. If any person who is
employed for services in the Cooperating Country under this contract is
either (1) a dependent of an employee of the U.S. Government working in
the Cooperating Country, or (2) a dependent of a contractor employee
working under a contract with the U.S. Government in the Cooperating
Country, such person shall continue to hold the status of a dependent.
He or she shall be entitled to salary for the time services are actually
performed in the Cooperating Country, and differential and allowances as
established by the Standardized Regulations (Government Civilians,
Foreign Areas).

**752.7028** Differential and Allowances.

The following clause is for use in all USAID cost reimbursement
contracts performed in whole or in part overseas.

**DIFFERENTIALS AND ALLOWANCES (July 1996)**

(This clause does not apply to TCN and CCN employees. TCN and CCN
employees are not eligible for differentials and allowances, unless
specifically authorized by the cognizant Assistant Administrator or
Mission Director. A copy of such authorization shall be retained 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.)

\(a\) [Post differential]{.underline}. Post differential is an
additional compensation for service at places in foreign areas where
conditions of environment differ substantially from conditions of
environment in the continental United States and warrant additional
compensation as a recruitment and retention incentive. In areas where
post differential is paid to USAID direct-hire employees, post
differential not to exceed the percentage of salary as is provided such
USAID employees in accordance with the Standardized Regulations
(Government Civilians, Foreign Areas), Chapter 500 (except the
limitation contained in Section 552, "Ceiling on Payment")
Tables-Chapter 900, as from time to time amended, will be reimbursable
hereunder for employees in respect to amounts earned during the time
such employees actually spend overseas on work under this contract. (See
Standardized Regulation 510) When such post differential is provided to
regular employees of the Contractor, it shall be payable beginning on
the date of arrival at the post of assignment and continue, including
periods away from post on official business, until the close of business
on the day of departure from post of assignment en route to the United
States. Sick or vacation leave taken at or away from the post of
assignment will not interrupt the continuity of the assignment or
require a discontinuance of such post differential payments, provided
such leave is not taken within the United States or the territories of
the United States. Post differential will not be payable while the
employee is away from his/her post of assignment for purposes of home
leave. Short-term employees shall be entitled to post differential
beginning with the forty-third (43rd) day at post.

\(b\) [Living quarters allowance]{.underline}. Living quarters allowance
is an allowance granted to reimburse an employee for substantially all
of his/her cost for either temporary or residence quarters whenever
Government-owned or Government-rented quarters are not provided to
him/her at his/her post without charge. Such costs are those incurred
for temporary lodging (temporary quarters subsistence allowance) or one
unit of residence quarters (living quarters allowance) and include rent,
plus any costs not included therein for heat, light, fuel, gas,
electricity and water. The temporary quarters subsistence allowance and
the living quarters allowance are never both payable to an employee for
the same period of time. The Contractor will be reimbursed for payments
made to employees for a living quarters allowance for rent and utilities
if such facilities are not supplied. Such allowance shall not exceed the
amount paid USAID employees of equivalent rank in the Cooperating
Country, in accordance with either the Standardized Regulations
(Government Civilians, Foreign Areas), Chapter 130, as from time to time
amended, or other rates approved by the Mission Director. (See
Standardized Regulation 130) Subject to the written approval of the
Mission Director, short-term employees may be paid per diem (in lieu of
living quarters allowance) at rates prescribed by the Federal Travel
Regulations, as from time to time amended, during the time such
short-term employees spend at posts of duty in the Cooperating Country
under this contract. In authorizing such per diem rates, the Mission
Director shall consider the particular circumstances involved with
respect to each such short-term employee including the extent to which
meals and/or lodging may be made available without charge or at nominal
cost by an agency of the United States Government or of the Cooperating
Government, and similar factors.

\(c\) Temporary quarters subsistence allowance. Temporary quarters
subsistence allowance is a quarters allowance granted to an employee for
the reasonable cost of temporary quarters incurred by the employee and
his family for a period not in excess of (i) 90 days after first arrival
at a new post in a foreign area or a period ending with the occupation
of residence (permanent) quarters, if earlier, and (ii) 30 days
immediately preceding final departure from the post subsequent to the
necessary vacating of residence quarters, unless an extension is
authorized in writing by the Mission Director. The Contractor will be
reimbursed for payments made to employees and authorized dependents for
temporary quarters subsistence allowance, in lieu of living quarters
allowance, not to exceed the amount set forth in the Standardized
Regulations (Government Civilians, Foreign Areas), Chapter 120, as from
time to time amended.

\(d\) [Post allowance]{.underline}. Post allowance is a cost-of-living
allowance granted to an employee officially stationed at a post where
the cost of living, exclusive of quarters cost, is substantially higher
than in Washington, D.C. The Contractor will be reimbursed for payments
made to employees for post allowance not to exceed those paid USAID
employees in the Cooperating Country, in accordance with the
Standardized Regulations (Government Civilians, Foreign Areas), Chapter
220, as from time to time amended. (See Standardized Regulation 220)

\(e\) [Supplemental post allowance]{.underline}. Supplemental post
allowance is a form of post allowance granted to an employee at his/her
post when it is determined that assistance is necessary to defray
extraordinary subsistence costs. The Contractor will be reimbursed for
payments made to employees for supplemental post allowance not to exceed
the amount set forth in the Standardized Regulations (Government
Civilians, Foreign Areas), Chapter 230, as from time to time amended.
(See Standardized Regulation 230)

\(f\) [Educational allowance]{.underline}. Educational allowance is an
allowance to assist an employee in meeting the extraordinary and
necessary expenses, not otherwise compensated for, incurred by reason of
his/her service in a foreign area in providing adequate elementary and
secondary education for his/her children. The Contractor will be
reimbursed for payments made to regular employees for educational
allowances for their dependent children in amounts not to exceed those
set forth in the Standardized Regulations (Government Civilians, Foreign
Areas), Chapter 270, as from time to time amended. (See Standardized
Regulation 270)

\(g\) [Educational travel]{.underline}. Educational travel is travel to
and from a school in the United States for secondary education (in lieu
of an educational allowance) and for college education. The Contractor
will be reimbursed for payments made to regular employees for
educational travel for their dependent children provided such payment
does not exceed that which would be payable in accordance with the
Standardized Regulations (Government Civilians, Foreign Areas), Chapter
280, as from time to time amended.

(See Standardized Regulation 280) Educational travel shall not be
authorized for regular employees whose assignment is less than two
years.

\(h\) [Separate maintenance allowance]{.underline}. Separate maintenance
allowance is an allowance to assist an employee who is compelled, by
reason of dangerous, notably unhealthful, or excessively adverse living
conditions at his/her post of assignment in a foreign area, or for the
convenience of the Government, to meet the additional expense of
maintaining his/her dependents elsewhere than at such post. The
Contractor will be reimbursed for payments made to regular employees for
a separate maintenance allowance not to exceed that made to USAID
employees in accordance with the Standardized Regulations (Government
Civilians, Foreign Areas), Chapter 260, as from time to time amended.
(See Standardized Regulation 260)

\(i\) [Payments during evacuation]{.underline}. The Standardized
Regulations (Government Civilians, Foreign Areas) provide the authority
for efficient, orderly, and equitable procedure for the payment of
compensation, post differential and allowances in the event of an
emergency evacuation of employees or their dependents, or both, from
duty stations for military or other reasons or because of imminent
danger to their lives. If evacuation has been authorized by the Mission
Director the Contractor will be reimbursed for payments made to
employees and authorized dependents evacuated from their post of
assignment in accordance with the Standardized Regulations (Government
Civilians, Foreign Areas), Chapter 600, and the Federal Travel
Regulations, as from time to time amended. (See Standardized Regulation
600)

\(j\) Danger pay allowance.

\(1\) The contractor will be reimbursed for payments made to its
employees for danger pay not to exceed that paid USAID employees in the
cooperating country, in accordance with the Standardized Regulations
(Government Civilians, Foreign Areas), Chapter 650, as from time to time
amended. (See Standardized Regulation 650)

\(2\) Danger pay is an allowance that provides additional compensation
above basic compensation to an employee in a foreign area where civil
insurrection, civil war, terrorism or wartime conditions threaten
physical harm or imminent danger to the health or well-being of the
employee. The danger pay allowance is in lieu of that part of the post
differential which is attributable to political violence. Consequently,
the post differential may be reduced while danger pay is in effect to
avoid dual crediting for political violence.

**752.7029** Post Privileges.

For use in all USAID non-commercial contracts involving performance
overseas.

**POST PRIVILEGES (JULY 1993)**

\(a\) Routine health room services may be available, subject to post
policy, to U.S. citizen contractors and their authorized dependents
(regardless of citizenship) at the post of duty. These services do not
include hospitalization, or predeparture or end of tour medical
examinations. The services normally include such medications as may be
available, immunizations and preventive health measures, diagnostic
examinations and advice, and home visits as medically indicated.
Emergency medical treatment is provided to U.S. citizen employees and
dependents, whether or not they may have been granted access to routine
health room services, on the same basis as it would be to any U.S.
citizen in an emergency medical situation in the country.

\(b\) 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. These facilities are
intended for and usually limited to members of the official U.S.
establishment including the Embassy, USAID Mission, U.S. Information
Service, and the Military. Normally, the agreements do not permit these
facilities to be made available to nonofficial Americans.

**752.7030** Inspection Trips by Contractor's Officers and Executives.

For use in cost reimbursement contracts with an educational institution
involving performance overseas.

**INSPECTION TRIPS BY CONTRACTOR'S**

**OFFICERS AND EXECUTIVES (APR 1984)**

Provided it is approved by the Mission Director, the Contractor may send
the Campus Coordinator, a professional member of its staff as an
alternate to the Campus Coordinator, or such of its senior officials
(e.g., president, vice presidents, deans, or department heads) to the
Cooperating Country as may be required to review the progress of the
work under this contract. Except for the Campus Coordinator or his/her
alternate, no direct salary charges will be paid hereunder with respect
to any such officials.

**752.7031** Leave and Holidays.

For use in all USAID cost-reimbursement contracts for technical or
professional services.

**LEAVE AND HOLIDAYS (OCT 1989)**

\(a\) Vacation leave.

\(1\) The Contractor may grant to its employees working under this
contract vacations of reasonable duration in accordance with the
Contractor's practice for its employees, but in no event shall such
vacation leave be earned at a rate exceeding 26 work days per annum.
Reimbursement for vacation leave is limited to the amount earned by
employees while serving under this contract.

For regular employees during their tour of duty in the Cooperating
Country, vacation leave is provided under this contract primarily for
purposes of affording necessary rest and recreation. The Contractor's
Chief of Party, the employee and the Cooperating Country institution
associated with this project shall develop vacation leave schedules
early in the employee's tour of duty taking into consideration project
requirements, employee preference and other factors.

\(2\) Leave taken during the concluding weeks of an employee's tour
shall be included in the established leave schedule and be limited to
that amount of leave which can be earned during a twelve-month period
unless approved in accordance with paragraph (a)(3) of this clause.

\(3\) Vacation leave earned but not taken by the end of the employee's
tour pursuant to paragraphs (a)(1) and (2) of this clause will be
forfeited unless the requirements of the project precluded the employee
from taking such leave, and the Contracting Officer (with the
endorsement of the Mission) approves one of the following as an
alternative:

\(i\) Taking, during the concluding weeks of the employee's tour, leave
not permitted under (a)(2) of this section, or

\(ii\) Lump-sum payment for leave not taken provided such leave does not
exceed the number of days which can be earned by the employee during a
twelve-month period.

\(b\) Sick Leave. Sick leave is earned by employees in accordance with
the Contractor's usual practice but not to exceed 13 work days per annum
or 4 hours every 2 weeks. Additional sick leave after use of accrued
vacation leave may be advanced in accordance with Contractor's usual
practice, if in the judgment of the Contractor's Chief of Party it is
determined that such additional leave is in the best interest of the
project. In no event shall such additional leave exceed 30 days. The
Contractor agrees to reimburse USAID for leave used in excess of the
amount earned during the employee's assignment under this contract. Sick
leave earned and unused at the end of a regular tour of duty may be
carried over to an immediately succeeding tour of duty under this
contract. The use of home leave authorized under this clause shall not
constitute a break in service for the purpose of sick leave carry-over.
Contractor employees will not be compensated for unused sick leave at
the completion of their duties under this contract.

\(c\) Home leave.

\(1\) Home leave is leave earned for service abroad for use only in the
United States, in the Commonwealth of Puerto Rico, or in the possessions
of the United States.

\(2\) A regular employee who is a U.S. citizen or resident and has
served at least 2 years overseas, as defined in paragraph (c)(4) of this
clause, under this contract and has not taken more than 30 workdays
leave (vacation, sick, or leave without pay) in the United States, may
be granted home leave of not more than 15 workdays for each such year of
service overseas, provided that such regular employee agrees to return
overseas upon completion of home leave under an additional 2 year
appointment, or for a shorter period of not less than 1 year of overseas
service under the contract if the Mission Director has approved in
advance. Home leave must be taken in the United States, the Commonwealth
of Puerto Rico, or the possessions of the United States; any days spent
elsewhere will be charged to vacation leave or leave without pay.

\(3\) Notwithstanding the requirement in paragraph (c)(2), of this
clause, that the Contractor's regular employee must have served 2 years
overseas under this contract to be eligible for home leave, Contractor
may grant advance home leave to such regular employee subject to all of
the following conditions:

\(i\) Granting of advance home leave would in each case serve to advance
the attainment of the objectives of this contract;

\(ii\) The regular employee shall have served a minimum of 18 months in
the Cooperating Country on his/her current tour of duty under this
contract; and

\(iii\) The regular employee shall have agreed to return to the
Cooperating Country to serve out the remainder of his/her current tour
of duty and an additional 2 year appointment under this contract, or
such other additional appointment of not less than 1 year of overseas
service as the Mission Director may approve.

\(4\) The period of service overseas required under paragraph (c)(2) or
paragraph (c)(3) of this clause shall include the actual days spent in
orientation in the United States (less language training) and the actual
days overseas beginning on the date of departure from the United States
port of embarkation on international travel and continuing, inclusive of
authorized delays en route, to the date of arrival at the United States
port of debarkation from international travel. Allowable vacation and
sick leave taken while overseas, but not leave without pay, shall be
included in the required period of service overseas. An amount equal to
the number of days vacation sick leave taken in the United States, the
Commonwealth of Puerto Rico, or the possessions of the United States
will be added to the required period of service overseas.

\(5\) Salary during travel to and from the United States for home leave
will be limited to the time required for travel by the most expeditious
air route. The Contractor will be responsible for reimbursing USAID for
salary payments made during home leave if in spite of the undertaking of
the new appointment the regular employee, except for reasons beyond
his/her control as determined by the Contracting Officer, does not
return overseas and complete the additional required service. Unused
home leave is not reimbursable under this contract.

\(6\) To the extent deemed necessary by the Contractor, regular
employees in the United States on home leave may be authorized to spend
not more than 5 days in work status for consultation at home
office/campus or at USAID/Washington before returning to their post of
duty. Consultation at locations other than USAID/Washington or home
office/campus, as well as any time in excess of 5 days spent for
consultation, must be approved by the Mission Director or the
Contracting Office.

\(7\) Except as provided in the schedule or approved by the Mission
Director or the Contracting Officer, home leave is not authorized for
TCN or CCN employees.

\(d\) Holidays. Holidays for Contractor employees serving in the United
States shall be in accordance with the Contractor's established policy
and practice. Holidays for Contractor employees serving overseas should
take into consideration local practices and shall be established in
collaboration with the Mission Director.

\(e\) Military leave. Military leave of not more than 15 calendar days
in any calendar year may be granted in accordance with the Contractor's
usual practice to each regular employee whose appointment is not limited
to 1 year or less and who is a reservist of the United States Armed
Forces, provided that such military leave has been approved in advance
by the cognizant Mission Director or Assistant Administrator. A copy of
any such approval shall be provided to the Contracting Officer.

\(f\) Leave Records. The Contractor's leave records 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.

**752.7032** International Travel Approval and Notification
Requirements.

For use in any USAID contract requiring international travel.

**INTERNATIONAL TRAVEL APPROVAL AND NOTIFICATION**

**REQUIREMENTS (JAN 1990)**

Prior written approval by the Contracting Officer is required for all
international travel directly and identifiably funded by USAID under
this contract. The Contractor shall therefore present to the Contracting
Officer an itinerary for each planned international trip, showing the
name of the traveler, purpose of the trip, origin/destination (and
intervening stops), and dates of travel, as far in advance of the
proposed travel as possible, but in no event less than three weeks
before travel is planned to commence. The Contracting Officer's prior
written approval may be in the form of a letter or telegram or similar
device or may be specifically incorporated into the schedule of the
contract. At least one week prior to commencement of approved
international travel, the Contractor shall notify the cognizant Mission,
with a copy to the Contracting Officer, of planned travel, identifying
the travelers and the dates and times of arrival.

**752.7033** Physical Fitness.

For use in all USAID contracts involving performance overseas.

**PHYSICAL FITNESS (JULY 1997)**

(The requirements of this provision do not apply to employees hired in
the Cooperating Country or to authorized dependents who were already in
the Cooperating Country when their sponsoring employee was hired.)

\(a\) [Assignments of less than 60 days in the Cooperating
Country]{.underline}. The contractor shall require employees being
assigned to the Cooperating Country for less than 60 days to be examined
by a licensed doctor of medicine. The contractor shall require the
doctor to provide to the contractor a written statement that in his/her
medical opinion, the employee is physically qualified to engage in the
type of activity for which he/she is employed and the employee is
physically able to reside in the country to which he/she is assigned.
Under a cost reimbursement contract, if the contractor has no such
written statement of medical opinion on file prior to the departure for
the Cooperating Country of any employee and such employee is unable to
perform the type of activity for which he is employed or cannot complete
his/her tour of duty because of any physical disability (other than
physical disability arising from an accident while employed under this
contract), the contractor shall be responsible for returning the
disabled employee to his/her point of hire and providing a replacement
at no additional cost to the Government. In addition, in the case of a
cost reimbursement contract, the contractor shall not be entitled to
reimbursement for any additional costs attributable to delays or other
circumstances caused by the employee's inability to complete his/her
tour of duty.

\(b\) [Assignments of 60 days or more in the Cooperating
Country]{.underline}.

\(1\) The Contracting Officer shall provide the contractor with a
reproducible copy of the "USAID Contractor Employee Physical Examination
Form".\*\* This form is for collection of information; it has been
reviewed and approved by OMB. Information required by the Paperwork
Reduction Act for reporting the burden estimate, the points of contact
regarding burden estimate, and the OMB approval expiration date (see
701.105(a)), are printed on the form. The contractor shall reproduce the
form as required, and provide a copy to each employee and authorized
dependent proposed for assignments of 60 days or more in the Cooperating
Country. The contractor shall have the employee and all authorized
dependents obtain a physical examination from a licensed physician, who
will complete the form for each individual. The employee will deliver
the physical examination form(s) to the embassy health unit in the
Cooperating Country.

\*\* The USAID Contractor Employee Physical Examination Form appears at
the end of the AIDAR as an attachment. It is not part of the AIDAR. It
appears as an attachment only for the reader's convenience.

\(2\) (The following information is provided for two purposes: to assist
fixed price offerors to develop their price proposal, and to provide
cost reimbursement contractors with guidance in determining reasonable
and allowable costs.) As a contribution to the cost of medical
examinations, USAID shall reimburse the contractor for the physical
examination authorized in paragraph (a) of this section in an amount not
to exceed \$100 for the physical examination, plus reimbursement of
charges for immunizations to the extent not covered by the contractor's
health insurance policy. For physical examinations authorized in
paragraph (b)(1) above, the USAID contribution to the cost of the
examination shall be as follows:

\(i\) For the employee and authorized dependents 12 years of age and
over, one half of the cost of each examination up to a maximum USAID
share of \$300 per individual, plus reimbursement of charges for
immunizations to the extent not covered by the contractor's health
insurance policy.

\(ii\) For authorized dependents under 12 years of age, one half of the
cost of each examination up to a maximum USAID share of \$120 per
individual, plus reimbursement of charges for immunizations to the
extent not covered by the contractor's health insurance policy.

\(iii\) The contractor must obtain the prior written approval of the
Contracting Officer to receive any USAID contributions higher than these
limits.

**752.7034** Acknowledgment and Disclaimer.

For use in any USAID contract which funds or partially funds
publications, videos, or other information/media products.

**ACKNOWLEDGMENT AND DISCLAIMER (DEC 1991)**

\(a\) USAID shall be prominently acknowledged in all publications,
videos or other information/media products funded or partially funded
through this contract, and the product shall state that the views
expressed by the author(s) do not necessarily reflect those of USAID.
Acknowledgments should identify the sponsoring USAID Office and Bureau
or Mission as well as the U.S. Agency for International Development
substantially as follows:

"This \[publication, video or other information/media product
(specify)\] was made possible through support provided by the Office of
\_\_\_\_\_\_\_\_\_\_\_\_ , Bureau for \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ ,
U.S. Agency for International Development, under the terms of Contract
No.\_\_\_\_\_\_\_\_\_\_\_ . The opinions expressed herein are those of
the author(s) and do not necessarily reflect the views of the U.S.
Agency for International Development."

\(b\) Unless the contractor is instructed otherwise by the cognizant
technical office publications, videos or other information/media
products funded under this contract and intended for general readership
or other general use will be marked with the USAID logo and/or U.S.
AGENCY FOR INTERNATIONAL DEVELOPMENT appearing either at the top or at
the bottom of the front cover or, if more suitable, on the first inside
title page for printed products, and in equivalent/appropriate location
in videos or other information/media products. Logos and markings of
co-sponsors or authorizing institutions should be similarly located and
of similar size and appearance.

**752.7035** Public Notices.

The following clause is for use when the cognizant technical office
determines that the contract is of public interest, and that both the
public and the Government would benefit from public notices concerning
the contract, and requests that the Contracting Officer include the
clause in the contract.

PUBLIC NOTICES (DEC 1991)

It is USAID's policy to inform the public as fully as possible of its
programs and activities. The contractor is encouraged to give public
notice of the receipt of this contract and, from time to time, to
announce progress and accomplishments. Press releases or other public
notices should include a statement substantially as follows: "The U.S.
Agency for International Development administers the U.S. foreign
assistance program providing economic and humanitarian assistance in
more than 80 countries worldwide." The contractor may call on USAID's
Office of Legislative and Public Affairs (LPA) for advice regarding
public Notices. The contractor is requested to provide copies of notices
or announcements to the cognizant technical officer and to USAID's
Office of Legislative and Public Affairs (LPA) as far in advance of
release as possible.

(See also Interim Update Dataset, Major Functional Series 300, Interim
Update #2

####### APPENDICES

###### Appendix A: \[Reserved\]

###### Appendix B: \[Reserved\]

**Appendix C: \[Reserved\]**

**Appendix D: Direct USAID Contracts With U.S. Citizens or U.S.
Residents for Personal Services Abroad.**

1\. [General]{.underline}

2\. [Legal Basis]{.underline}

3\. [Applicability]{.underline}

4\. [Policy]{.underline}

5\. [Soliciting for Personal Services Contracts]{.underline}.

6\. [Negotiating a Personal Services Contract]{.underline}.

7\. [Executing a Personal Services Contract]{.underline}.

8\. [Post Audit]{.underline}.

9\. [Contracting Format]{.underline}.

10\. [Form USAID 1420-36, "Cover Page" and "Schedule"]{.underline}

Cover

Schedule

11\. [Optional Schedule With a U.S. Citizen or U.S. Resident
Alien]{.underline}

12\. [General Provisions.]{.underline}

Index of Clauses

1\. DEFINITIONS (JUNE 1990)

2\. COMPLIANCE WITH LAWS AND REGULATIONS APPLICABLE ABROAD (JULY 1993)

3\. PHYSICAL FITNESS AND HEALTH ROOM PRIVILEGES (APR 1997)

4\. WORKWEEK AND COMPENSATION (PAY COMPARABILITY ADJUSTMENTS) (DEC 1985)

5\. LEAVE AND HOLIDAYS (APR 1997)

6\. DIFFERENTIAL AND ALLOWANCES (JUNE 1990)

7\. SOCIAL SECURITY, FEDERAL INCOME TAX, AND FOREIGN EARNED INCOME (JUNE
1990)

8\. ADVANCE OF DOLLAR FUNDS (APR 1997)

9\. INSURANCE (APR 1997)

10\. TRAVEL AND TRANSPORTATION EXPENSES (JULY 1993)

11\. PAYMENT (AUGUST 1996)

12\. CONVERSION OF U.S. DOLLARS TO LOCAL CURRENCY (DEC 1985)

13\. POST OF ASSIGNMENT PRIVILEGES (JULY 1993)

14\. SECURITY REQUIREMENTS (JUNE 1990)

15\. CONTRACTOR-MISSION RELATIONSHIPS (DEC 1985)

16\. TERMINATION (NOV 1989)

17\. RELEASE OF INFORMATION (DEC 1985)

18\. NOTICES (DEC 1985)

19\. REPORTS (JUNE 1987)

20\. USE OF POUCH FACILITIES (JULY 1993)

21\. BIOGRAPHICAL DATA (JUNE 1990)

22\. RESIDENT HIRE PERSONAL SERVICES CONTRACTOR (JUNE 1990)

23\. ORIENTATION AND LANGUAGE TRAINING (JULY 1993)

24\. CONDITIONS FOR CONTRACTING PRIOR TO RECEIPT OF SECURITY CLEARANCE
(JULY 1993)

25\. MEDICAL EVACUATION (MEDEVAC) SERVICES (JULY 1993)

26\. GOVERNING LAW (NOV 1996)

13\. [FAR Clauses to be Incorporated in Full Text in Personal Services
Contracts]{.underline}.

14\. [FAR Clauses to be Incorporated by reference in Personal Services
Contracts]{.underline}.

###### Appendix E: \[Reserved\]

**Appendix F: Use of Collaborative Assistance Method for Title XII
Activities.**

1\. [Introduction]{.underline}

2\. [Purpose]{.underline}

3\. [Policy]{.underline}

4\. [Implementation Procedures]{.underline}

Attachment: Guidelines for Requests for Expressions of

Interests

###### Appendix G: \[Reserved\]

###### Appendix H: \[Reserved\]

**Appendix I: USAID's Academic Publication Policy.**

1\. [Statement of Policy]{.underline}

2\. [Underlying Principles]{.underline}

3\. [Operational Definitions]{.underline}

4\. [Policy Statements]{.underline}

5\. [Implementation]{.underline}

**Appendix J: Direct USAID Contracts With Cooperating Country Nationals
and With Third Country Nationals for Personal Services Abroad.**

1\. [General]{.underline}

2\. [Legal Basis]{.underline}.

3\. [Applicability]{.underline}.

4\. [Policy]{.underline}.

5\. [Soliciting for Personal Services Contracts]{.underline}.

6\. [Negotiating a Personal Services Contract]{.underline}.

7\. [Executing a Personal Services Contract]{.underline}.

8\. [Contracting Format]{.underline}.

9\. [Cover Page]{.underline}

10\. [Schedule]{.underline}

11\. [Optional Schedule]{.underline}

12: [General Provisions \-- Contract With A Cooperating Country National
Or Third Country National For Personal Services]{.underline}

Index of Clauses

1\. Definitions

2\. Compliance With Laws and Regulations Applicable Abroad (July 1993)

3\. Physical Fitness (July 1993)

4\. Security (JULY 1993)

5\. Workweek (OCT 1987)

6\. Leave and Holidays (OCT 1987)

7\. Social Security and Cooperating Country Taxes (DEC 1986)

8\. Insurance (JULY 1993)

9\. Travel and Transportation Expenses (JULY 1993)

10\. Payment (MAY 1997) \[For use in both CCN and TCN Contracts\]

11\. CONTRACTOR-MISSION RELATIONSHIPS (DEC 1986)

\[For use in both CCN and TCN Contracts\].

12\. TERMINATION (NOV 1989) \[For use in both CCN and TCN Contracts\].

13\. ALLOWANCES (DEC 1986) \[For TCNs only\].

14\. ADVANCE OF DOLLAR FUNDS (DEC 1986) \[For TCNs only\].

15\. CONVERSION OF U.S. DOLLARS TO LOCAL CURRENCY (DEC 1986) \[For TCNs
only\].

16\. POST OF ASSIGNMENT PRIVILEGES (DEC 1986) \[For TCNs only\].

17\. RELEASE OF INFORMATION (DEC 1986) \[For use in both CCN and TCN
Contracts\].

18\. NOTICES (DEC 1986) \[For use in both CCN and TCN Contracts\].

19\. INCENTIVE AWARDS (DEC 1996)

20\. TRAINING (JULY l993)

21\. MEDICAL EVACUATION (MEDEVAC) SERVICES (JULY 1993) \[For TCN
Contracts Only\].

13\. [FAR Clauses to be incorporated in full text as well as by
reference in Personal Services Contracts]{.underline}.

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.

######  APPENDIX A \-- \[RESERVED\]

######  APPENDIX B \-- \[RESERVED}

######  APPENDIX C \-- \[RESERVED}

**APPENDIX D\--DIRECT USAID CONTRACTS WITH\
A U.S. CITIZEN OR A U.S. RESIDENT ALIEN\
FOR PERSONAL SERVICES ABROAD**

1\. [General]{.underline}.

\(a\) [Purpose]{.underline}. This appendix sets forth the authority,
policy, and procedures under which USAID contracts with a U.S. citizen
or U.S. resident alien for personal services abroad.

\(b\) [Definitions]{.underline}.

\(1\) Personal services contract (PSC) means a contract that, by its
express terms or as administered, make the contractor personnel appear,
in effect, Government employees (see FAR 37.104).

\(2\) Employer-employee relationship means an employment relationship
under a service contract with an individual, which occurs when, as a
result of the contract's terms or the manner of its administration
during performance, the contractor is subject to the relatively
continuous supervision and control of a Government officer or employee.

\(3\) Non-person services contract means a contract under which the
personnel rendering the services are not subject either by the
contract's terms or by the manner of its administration, to the
supervision and control usually prevailing in relationships between the
Government and its employees.

\(4\) 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 this relationship, the Government does not normally supervise the
performance of the work, control 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 of hire as a
PSC, resides in the cooperating country 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 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.

\(6\) 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.

\(8\) USAID direct-hire employees means civilian employees appointed
under USAID Handbook 25 procedures or superseding Automated Directive
System (ADS) Chapters.

2\. [Legal Basis]{.underline}.

\(a\) Section 635(b) of the Foreign Assistance Act of 1961, as amended
(hereinafter referred to as the "FAA") provides the Agency's contracting
authority.

\(b\) 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\\

\\1\\ The Civil Service Commission is now the Federal Office of

Personnel Management.

3\. [Applicability]{.underline}.

\(a\) 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:

\(1\) Non-personal services contracts with U.S. citizens or U.S.
resident aliens; such contracts are covered by the basic text of the FAR
(48 CFR Chapter 1) and the AIDAR (48 CFR Chapter 7).

\(2\) 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 USAID Handbook
25\--Employment and Promotion or superseding ADS Chapters.

\(4\) Interagency agreements (e.g., PASAs and RSSAs covered by ADS
306\--Interagency Agreements.

4\. [Policy]{.underline}.

\(a\) [General]{.underline}. USAID may finance, with either program or
operating expense (OE) funds, the cost of personal services contracts 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. Under the authority of Section 635(h) of the FAA,
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. Pursuant to USAID budget policy, OE
funded salaries and other recurrent cost items may be forward funded for
a period of up to three (3) months beyond the fiscal year in which these
funds were obligated. Non-recurring cost items may be forward funded for
periods not to exceed twenty-four (24) months where necessary and
appropriate to accomplishment of the work.\\2\\

\(b\) [Limitations on Personal Services Contracts]{.underline}. (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.

\(3\) Notwithstanding any other provision of USAID directives,
regulations or delegations, U.S. citizen personal services contractors
(USPSCs) may be delegated or assigned any authority, duty or
responsibility delegable to U.S. citizen direct-hire

employees (USDH employees) except that:

a\. They may not supervise U.S. direct-hire employees of USAID or other
U.S. Government agencies. They may supervise USPSCs and non-U.S. citizen
employees.

b\. They may not be designated as Contracting Officers or delegated
authority to sign obligating or sub-obligating documents.

c\. They may represent the agency, except that communications that
reflect a final policy, planning or budget decision of the agency must
be cleared by a USDH employee.

d\. They may participate in personnel selection matters, but may not be
delegated authority to make a final decision on personnel selection.

e\. Exceptions to the limitations in this paragraph (b)(3) must be
approved by the Assistant Administrator for Management (AA/M).

\(c\) [Withholdings and Fringe Benefits]{.underline}. (1) Personal
services contractors (PSCs) are Government employees for purposes of the
Internal Revenue Code (Title 26 of the United States Code) and are,
therefore, subject to social security (FICA) and Federal income tax
(FIT) withholdings. As employees, they are ineligible for the "foreign
earned income" exclusion under the Internal Revenue Service (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 cost of the PSC's annual health
and life insurance costs. Proof of health and life insurance coverage
and its actual cost to the PSC shall be submitted to the Contracting
Officer before any contribution is made. (See also paragraph 4(c)(3) of
this Appendix.)

\(A\) The contribution for health insurance shall not exceed 50% of the
actual cost to the PSC for his/her annual health insurance, or the
maximum U.S. Government contribution for a direct-hire employee, as
announced annually by the Office of Personnel Management, whichever is
less. If the PSC is covered under a spouse's health insurance plan,
where the spouse's employer pays some or all of the health insurance
costs, the cost to the PSC for annual health insurance shall be
considered to be zero.

\(B\) The contribution for life insurance shall be up to 50% of the
actual annual costs to the PSC for life insurance, not to exceed
\$500.00 per year.

\(iii\) PSCs shall receive the same percentage pay comparability
adjustment as U.S. Government employees subject to the availability of
funds.

\(iv\) PSCs shall receive a 3% annual salary increase subject to
satisfactory performance documented in their annual written

evaluation. Such increase may not exceed 3% without a deviation. This 3%
limitation also applies to extensions of the same service or
negotiations for a new contract for the same or similar services unless
a deviation has been approved.

\(v\) 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 U.S. Government employees
(except for U.S. resident hires, see paragraph 4(d) and Section 12,
General Provisions, Clause 22, "U.S. Resident Hire Personal Services
Contractors"):

\(A\) Temporary lodging allowance (Section 120),\\3\\

\(B\) Living quarters allowance (Section 130),\\3\\

\(C\) Post allowance (Section 220),\\3\\

\(D\) Supplemental post allowance (Section 230),\\3\\

\\2\\ If there is a need, these contracts may be written for 5

years also but funded only as outlined in paragraph 4(a) of this

Appendix.

\\3\\ Mission Directors may authorize per diem in lieu of these
allowances.

\(E\) Separate maintenance allowance (Section 260),\\4\\

\(F\) Education allowance (Section 270),\\4\\

\(G\) Educational travel (Section 280),\\4\\

\(H\) Post differential (Section 500),

\(I\) Payments during evacuation/authorized departure (Section 600), and

\(J\) Danger pay (Section 650).

\(vi\) Any allowance or differential that is not expressly stated in
paragraph 4(c)(2)(v) is not authorized for any PSC unless a deviation is
approved. The only exception is a consumables allowance if authorized
for the post under Handbook 22 or superseding ADS Chapter.

\(vii\) Health room services may be provided in accordance with the
clause of this contract entitled "Physical Fitness and Health Room
Privileges."

\(viii\) 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
Management.

\(ix\) 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 (including 10 hours annual
leave for the final pay period of a calendar year), or eight hours of
annual leave for each two week period if their previous PSC service
exceeds 15 years.

\(3\) A PSC who is a spouse of a current or retired Civil Service,
Foreign Service, or Military Service member and who is covered by their
spouse's Government health or life insurance policy is ineligible for
the contribution under paragraph 4(c)(2)(ii) of this appendix.

\(4\) Retired U.S. Government employees shall not be paid additional
contributions for health or life insurance under their contract (since
the Government will normally have already paid its contribution for the
retiree) unless the employee can prove to the satisfaction of the
Contracting Officer that his/her health and life insurance does not
provide or specifically excludes coverage overseas. If coverage overseas
is excluded, then eligibility as cited in paragraph 4(c)(3) applies.

\(5\) Retired U.S. Government employees may be awarded Personal Services
Contracts without any reduction in or offset against their Government
annuity.

\(d\) [U.S. Resident Hire Personal Services Contractors]{.underline}.
U.S. resident-hire PSCs are not eligible for any fringe benefits (except

contributions 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.

\(e\) [Determining Salary for Personal Services
Contractors]{.underline}. (1) There are two separate and distinct
methods of establishing a salary for personal services contractors. Use
of method number 1 is required unless justified and approved as provided
for in paragraph (e)(1)(ii).

\\4\\ These allowances are not authorized for short tours (i.e.,

less than a year).

\(i\) Method 1: Salaries for Personal Services Contractors shall be
established based on the market value in the United States of the
position being recruited for. This requires the Contracting Officer in
coordination with the Technical Officer to determine the correct market
value (a salary range) of the position to be filled. This method is
required in establishing salary for all PSCs unless method 2 is
authorized as provided for in paragraph (e)(1)(ii). Contract Information
Bulletin (CIB) 96-8 dated February 23, 1996 provides a guide, which
contains information concerning Preparation of Scopes of Work,
Determination of Salary Class Grade, Salary Class Bench Marks and Salary
Class Review. The market value of the position then becomes the basis
along with the applicants' certified salary history on the SF 171,
"Personal Qualifications Statement" for salary negotiations by the
Contracting Officer. The SF 171 must be retained in the permanent
contract file. Any position, which is determined to be above the GS-13
equivalent and exceeds six months in duration must be classified by
M/HR/POD. The crucial point is the establishment of a realistic and
reasonable market value for a job. The final determination regarding the
reasonableness of a salary level rests with the Contracting Officer.
Paying salaries using this method avoids "rank in person" salaries,
which are in excess of the value of the job being contracted for.

\(ii\) Method 2: If approved in writing by the Mission Director or the
cognizant Assistant Administrator, based on written justification,
salary may be negotiated based on the applicant's current earnings
adjusted in accordance with the factors set out in paragraphs (e)(1)(ii)
(A) through (C). This approval requirement cannot be redelegated.
Current earnings must be certified by the contractor on the SF 171, (see
paragraph 6(b)(3) of this appendix). This is guidance for establishing
initial salaries, not subsequent increases, for the same contractor
performing the same function.

\(A\) 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.

\(B\) 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 may be awarded. Education related to the area of
specialization and above the minimum qualification required may warrant
an additional 1 percent, and those specialties for which there is keen
competition in the employment market or a serious shortage category
nationwide may be awarded an additional 2 percent. In addition, related
technical experience over 5 years may increase the percentage by 1 and
over ten years by 3.

\(C\) All requests for an initial rate of pay above 10 percent over
current earnings must be approved in writing by the appropriate
Assistant Administrator or Mission Director. Current earnings are actual
earnings for work reasonably related to the position for which the
applicant is being considered. Paragraphs 4(e)(1)(ii) (A) through (C)
apply only to salary setting method number 2 in paragraph 4 (e)(1)(ii).

\(2\) 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), every
effort should be made to establish a market value for the position as a
basis for negotiation, 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.

\(3\) Salaries in excess of the ES-6 level must also be approved by the
M/OP Director based upon a memorandum through the appropriate Assistant
Administrator or Mission Director and Contracting Officer, as provided
for in internal guidelines on "Approval Procedures for Contractor
Salaries". This approval level cannot be redelegated.

\(f\) [Incentive Awards]{.underline}. U.S. PSCs are not eligible to
receive monetary awards. They are eligible for non-monetary awards such
as certificates.

\(g\) [Annual Salary Increase]{.underline}. PSC contracts written for
more than one year should provide for a 3% annual increase based on
satisfactory performance documented in their annual written evaluations.

\(h\) [Pay Comparability Adjustment]{.underline}. PSCs shall receive the
same percentage pay comparability adjustment as that received by U.S.
Government employees subject to the availability of funds.

\(i\) [Subcontracting]{.underline}. PSCs are U.S. Government employees
and may not be called upon (or permitted) to subcontract out any part of
their work. Funds for subcontracting have no place in the budget of a
personal services contract. Support services, equipment, and supplies
(e.g., typing and report preparation, paper, pens, computers, and
furniture) should be furnished to PSCs just as they would be to
direct-hire employees. To the extent that direct-hire personnel may be
authorized to purchase supporting services or supplies under a travel
authorization, so may PSCs; otherwise, contracts for personal services
should not contain any funds for procurement.

5\. [Soliciting for Personal Services Contracts]{.underline}.

\(a\) [Technical Officer's Responsibilities]{.underline}. The Technical
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 (the Acquisition &amp; Assistance Request Document) e.g., 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 equivalent position should
cost, including basic salary, allowances, and differentials, if
appropriate; and

\(5\) A list of Government or host country furnished items (e.g.,
housing).

\(b\) [Contracting Officer's Responsibilities]{.underline}. (1) The
Contracting

Officer will prepare the solicitation for personal services, which shall
contain:

\(i\) Three sets of SF 171s and SF 171As. (Upon receipt, one copy of
each SF 171 and SF 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 as appropriate, as well as the FAR Clauses to be
incorporated in full text and by reference.

\(iv\) A copy of the USAID General Notice entitled "Employee Review of
the New Standards of Conduct".

\(2\) The Contracting Officer shall comply with the requirements of (48
CFR) AIDAR 706.302-70(c) as detailed in paragraph 5(c) except those
recruited from the U.S.

\(c\) [Competition]{.underline}. (1) Under (48 CFR) AIDAR
706.302-70(b)(1), Personal Services Contracts (except those recruited
from the U.S.)

are exempt from the requirements for full and open competition with two
limitations that must be observed by Contracting Officers:

\(i\) Offers are to be requested from as many potential offerors as is
practicable under the circumstances, and

\(ii\) A justification supporting less than full and open competition
must be prepared in accordance with FAR 6.303.

\(2\) PSCs With Untied States Citizens or Resident Aliens Recruited from
Outside the Cooperating Country. Solicitations for PSCs recruited
outside the cooperating country must be publicized via the Agency's
External Home Page on the Internet under the caption "Business &
Procurement, USAID Procurements." Instructions regarding how to access
the External Internet and the information to be provided have been
approved and included in a CIB. A justification under FAR 6.303 is not
required when this procedure is followed.

\(3\) A class justification was approved by the USAID Procurement
Executive to satisfy the requirements of (48 CFR) AIDAR 706.302-70(c)(2)
for a justification in accordance with FAR 6.303. This

class justification for Personal Services Contracts with U.S. Citizens
may only be used for those who are recruited locally subject to the
following conditions:

\(i\) The position was publicized locally in accordance with established
Mission policy or procedure, or the procedures in paragraph 5(c)(ii) was
followed;

\(ii\) As an alternative to the procedures in paragraphs 5(c) (i) and
(ii), at least 3 individuals were considered by consulting source lists
(e.g., applications or resumes on hand) or conducting other informal
solicitation.

\(iii\) Extensions or renewals with the same individual for continuing
services do not need to be publicized.

\(iv\) A copy of the class justification (which was distributed to all
USAID Contracting Officers via Contract Information Bulletin) must be
included in the contract file, together with a written statement, signed
by the Contracting Officer, that the contract is being awarded pursuant
to (48 CFR) AIDAR 706.302-70(b)(1); that the conditions for use of this
class justification have been met; and that the cost of the contract is
fair and reasonable.

\(4\) If the appropriate competitive procedure in paragraph 5(3) is not
followed, the Contracting Officer must prepare a separate

justification as required under (48 CFR) AIDAR 706.302-70(c)(2).

\(5\) Since the award of a Personal Services Contract is based on
technical qualifications, not price, and since the SF 171, "Personal
Qualifications Statement", and SF 171A, "Continuation Sheet for Standard
Form 171", are used to solicit for such contracts, FAR subparts 15.4 and
15.5 and FAR parts 52 and 53 are inappropriate and shall not be used.
Instead, the solicitation and selection procedures outlined in this
Appendix shall govern.

6\. [Negotiating a Personal Services Contract]{.underline}.

Negotiating a Personal Services Contract is significantly different from
negotiating a non-personal services contract because it establishes an
employer-employee relationship; therefore, the selection procedures are
more akin to the personnel selection procedures.

\(a\) [Technical Officer's Responsibilities]{.underline}. The Technical
Officer shall be responsible for reviewing and evaluating the
applications (i.e., SF 171s) received in response to the solicitation
issued by the Contracting Officer. If deemed appropriate, interviews may
be conducted with the applicants before the final selection is submitted
to the Contracting Officer.

\(b\) [Contracting Officer's Responsibilities]{.underline}. (1) The
Contracting Officer shall forward a copy of each SF 171 received under
the solicitation to the Project Officer for evaluation.

\(2\) On receipt of the Technical Officer's recommendation, the
Contracting Officer shall conduct negotiations with the recommended
applicant. Normally, the Contracting Officer shall negotiate only the
salary (see the salary setting coverage in paragraph 4(e) of this
Appendix). The terms and conditions of the contract, including
differentials and allowances, are not negotiable or waivable without a
properly approved deviation (see (48 CFR) AIDAR 701.470). If the
Contracting Officer can negotiate a salary that is fair and reasonable,
then the award shall be made.

\(3\) The Contracting Officer shall use the certified salary history on
the SF 171 as the basis for salary negotiations, along with the market
value of the position being recruited for (unless approval not to use
market value has been granted under paragraph 4(e)(1)(ii)), and the
Technical Officer's cost estimate.

\(4\) The Contracting Officer will obtain two copies of IRS Form W-4,
"Employee's Withholding Allowance Certificate", from the successful
applicant. (Upon receipt, the Contracting Officer will forward one copy
of the W-4 to the Office of the Controller.)

\(5\) Security clearance is required for all U.S. citizens entering into
USAID PSCs. The Contracting Officer will obtain four sets of SF 86,
"Security Investigation Data for Sensitive Position", from the
successful applicant and forward them to the Office of Security. PSCs
may receive a preliminary clearance and be placed under contract prior
to receipt of clearance provided the appropriate paper work has been
completed, reviewed by IG/SEC/PSI and acknowledged as a "no objection"
to the appropriate Mission. See General Provision 24 in section 12 of
this Appendix.

7\. [Executing a Personal Services Contract]{.underline}.

Contracting Officers or Heads of Contracting Activities, whether USAID/W
or Mission, may execute Personal Services Contracts, provided that the
amount of the contract does not exceed the contracting authority that
has been redelegated to them. In executing a Personal Services Contract,
the Contracting Officer is responsible for insuring that:

\(a\) The proposed contract is within his/her delegated authority;

\(b\) A Request Number covering the proposed contract has been received;

\(c\) The position has been classified by either the Mission or M/HR/POD
(see CIB 96-8) and the classification is in the contract file;

\(d\) The proposed Statement of Duties is contractible, contains a
statement of minimum qualifications from the technical office requesting
the services, and is suitable to the use of a Personal Services Contract
in that:

\(1\) Performance of the proposed work requires or is best suited for an
employer-employee relationship, and is thus not suited to the use of a
non-personal services contract;

\(2\) The Statement of Duties does not require performance of any
function normally reserved for Federal employees (see paragraph 4(b) of
this Appendix); and

\(3\) There is no apparent conflict of interest involved (if the
Contracting Officer believes that a conflict of interest may exist,

the question should be referred to the cognizant legal counsel);

\(e\) Selection of the contractor is documented and justified. (48 CFR)
AIDAR 706.302-70(b)(1) provides an exception to the requirement for full
and open competition for Personal Services Contracts abroad (see
paragraph 5(c) of this Appendix);\
(f) The standard contract format prescribed for Personal Services
Contracts (Sections 10, 11, 12 and 13 to this Appendix) is used; or that
any necessary deviations are processed as required by (48 CFR) AIDAR
701.470.

(Note: The prescribed contract format is designed for use with
contractors who are residing in the U.S. when hired. If the contract is
with a U.S. citizen residing in the cooperating country when hired,
contract provisions governing physical fitness and travel/transportation
expenses, and home leave, allowances, and orientation should be suitably
modified (see paragraph 4(d) of this Appendix)). These modifications are
not considered deviations subject to (48 CFR) AIDAR 701.470.
(Justification and explanation of these modifications is to be included
in the contract file);

\(g\) Orientation is arranged in accordance with General Provision

23 in section 12 of this Appendix;

\(h\) The contractor has submitted the names, addresses, and telephone
numbers of at least two persons who may be notified in the event of an
emergency (this information is to be retained in the contract file);

\(i\) The contract is complete and correct and all information required
on the contract Cover Page (USAID Form 1420-36A) has been entered;

\(j\) The contract has been signed by the Contracting Office and the
contractor, and fully executed copies are properly distributed;

\(k\) The following clearances, approvals and forms have been obtained,
properly completed, and placed in the contract file before the contract
is signed by both parties;

\(1\) Evidence of job classification in the file by the Mission except
for grade equivalents above GS-13. For those positions with grade
equivalent above GS-13, evidence of job classification done by M/HR/POD;

\(2\) Security clearance, including the completed SF 86, to the extent
required by USAID Handbook 6, Security or superseding ADS Chapter, (see
General Provisions 14 and 24 in section 12 of this Appendix);

\(3\) Mission, host country, Human Resources Office, and technical
office clearance, as appropriate;

\(4\) Medical examinations and certifications as required by the
contract general provision entitled "Physical Fitness and Health Room
Privileges";

\(5\) One original executed IRS Form W-4 entitled "Employee's
Withholding Allowance Certificate", and one copy, shall be obtained. The
original shall be sent to the Controller of the paying office and one
shall be placed in the contract file;

\(6\) Evidence of DAA/HR clearance that the position may be filled by
PSC.

\(7\) The approval for any salary in excess of ES-6, in accordance with
Appendix G of this chapter;

\(8\) A copy of the class justification or other appropriate

explanation and support required by (48 CFR) AIDAR 706.302-70, if
applicable;

\(9\) Any deviation to the policy or procedures of this appendix,
processed and approved under (48 CFR) AIDAR 701.470;

\(10\) A fully executed SF 171, and a copy of the position
classification, and approved deviation, if appropriate;

\(11\) The Memorandum of Negotiation; and

\(12\) The Contracting Officer's signed certification that competition
requirements have been satisfied as described in paragraph 5(c) of the
policy text of this Appendix. The certification shall be a part of the
Memorandum of Negotiations.

\(l\) Funds for the contract are properly obligated to preclude
violation of the Anti-Deficiency Act, 31 U.S.C. 1341 (the Contracting
Officer ensures that the contract has been properly recorded by the
appropriate accounting office prior to its release for the signature of
the selected contractor);

\(m\) The contractor receives and understands the USAID General Notice
entitled "Employee Review of the New Standards of Conduct" and a copy is
attached to each contract as provided for in paragraph (c) of General
Provision 1, section 12;

\(n\) Agency conflict of interest requirements as set out in the General
Notice "Employee Review of the New Standards of Conduct" are met by the
contractor prior to his/her reporting for duty;

\(o\) A copy of a Checklist for Personal Services contractors which may
be in the format set out in this section or another format convenient
for the Contracting Officer, provided that a memorandum containing all
of the information described in this section 7 shall be prepared for
each PSC and placed in the contract file;

\(p\) The contractor understands that he/she is an employee of the
United States for purposes of the Foreign Assistance Act of 1961, as
amended, and the Internal Revenue Code (Title 26 of the United States
Code). This subjects the employee to withholding for both FICA and
Federal Income Tax and precludes the employee from receiving the Federal
Earned Income Tax exclusion of 26 U.S.C. Section 911. See Special Note
on the Cover Page of USAID Form 1420-36.

\(q\) The contractor also understands that he/she may commence work
prior to the completion of the security clearance. However, until such
time as clearance is received, the contractor may not have access to
classified or administratively controlled materials. Failure to obtain
clearances will constitute cause for termination.

8\. [Post Audit]{.underline}.

The Inspector General, or his/her designee, audits the Personal Services
Contracts of all contracting activities for the purpose of ensuring
conformance to applicable policy and regulations.

9\. [Contracting Format]{.underline}.

The prescribed Contract Cover Page, Contract Schedule, General
Provisions, and appropriate Federal Acquisition Regulations (FAR)
clauses for Personal Services Contracts covered by this appendix are
included as follows:

10\. Form USAID 1420-36, "Cover Page" and "Schedule".

11\. Optional Schedule With a U.S. Citizen or U.S. Resident Alien.

12\. General Provisions.

13\. FAR Clauses to be Incorporated in Full Text in Personal Services
Contracts.

14\. FAR Clauses to be incorporated by reference in Personal Services
Contracts.

10\. [Form USAID 1420-36, "Cover Page" and "Schedule"]{.underline}.

Contract With a U.S. Citizen or U.S. Resident Alien for Personal
Services Abroad\--Form AID 1420-36A (11/96) (Cover Page)

PRIVACY ACT STATEMENT

This information is provided pursuant to Public Law 93-579 (Privacy Act
of 1974), December 31, 1974, for individuals who complete this form.

The Executive Office of the President, Office of Management and Budget
has required that all departments and agencies comply with the reporting
requirements of Section 6041 of the Internal Revenue Code, Section 6041
states that all departments and agencies making payments totaling \$600
or more in one year to a recipient for services provided must be
reported to the Internal Revenue Service (IRS). The SSN and all
financial numbers will be disclosed to U.S. Agency for International
Development (USAID) payroll office personnel and personnel in the
Department of the Treasury, Division of Disbursements. USAID will use
this SSN to complete Form W-2 of the Code on employee compensation.
Disclosure by the personal services contractor of the SSN is necessary
to obtain the services, benefits or processes provided by this contract.
Disclosure of the SSN may be made outside USAID (a) pursuant to any
applicable routine use listed in USAID's Notice for implementing the
Privacy Act as published in the Federal Register or (b) when disclosure
by virtue of a contract being a public document after signatures is
authorized under the Freedom of Information Act.

SCHEDULE

(The Illustrated Schedule consists of this Table of Contents\--

Articles I-VI, and the General Provisions.)

TABLE OF CONTENTS

Article I \-- Statement of Duties

Article II \-- Period of Service Overseas

Article III \-- Contractor's Compensation and Reimbursement in U.S.
Dollars

Article IV \-- Costs Reimbursable and Logistic Support

Article V \-- Precontract Expenses

Article VI \-- Additional Clauses

GENERAL PROVISIONS

The following provisions numbered as shown below omitting number(s)
\_\_\_\_\_\_, are the General Provisions (GPs) of this Contract:

1\. Definitions

2\. Laws and Regulations Applicable Abroad

3\. Physical Fitness and Health Room Privileges

4\. Workweek and Compensation (Pay Comparability Adjustments)

5\. Leave and Holidays

6\. Differential and Allowances

7\. Social Security, Federal Income Tax and Foreign Earned Income

8\. Advance of Dollar Funds

9\. Insurance

10\. Travel and Transportation Expenses

11\. Payment

12\. Conversion of U.S. Dollars to Local Currency

13\. Post of Assignment Privileges

14\. Security Requirements

15\. Contractor-Mission Relationships

16\. Termination

17\. Release of Information

18\. Notices

19\. Reports

20\. Use of Pouch Facilities

21\. Biographical Data

22\. Resident Hire PSC

23\. Orientation and Language Training

24\. Conditions for Contracting Prior to Receipt of Security Clearance

25\. Medical Evacuation Services

26\. Governing Law

For each tour of duty, attach the applicable General Provisions.

Schedule: (Note: Use of the following Schedule Articles are not
mandatory. They are intended to serve as guidelines for contracting
offices in drafting contract schedules. Article language may be changed
to suit the needs of the particular contract).

Article I\--Statement of Duties

(The statement of duties shall include:

A. General statement of the purpose of the contract.

B. Statement of duties to be performed.

C. Any USAID consultation or orientation.)

Article II\--Period of Service Overseas

Within \_\_\_\_\_\_ days after written notice from the Contracting
Officer that all clearances, including the doctor's statement of medical
opinion required under General Provision Clause 4, have been received or
unless another date is specified by the Contracting Officer in writing,
the contractor shall proceed to \_\_\_\_\_\_ where he/she shall promptly
commence performance of the duties specified above. The contractor's
period of service overseas shall be approximately \_\_\_\_\_\_ in
\_\_\_\_\_\_. (Specify time of duties in each location as well as
authorized stopovers with purpose of each.)

Article III\--Contractor's Compensation and Reimbursement in U.S.
Dollars

A. Except to the extent reimbursement is payable in the currency of the
Cooperating Country pursuant to Article IV, USAID shall pay the
contractor compensation after it has accrued and reimburse him/her in
U.S. dollars for necessary and reasonable costs actually incurred by
him/her in the performance of this contract within the categories listed
in paragraph C, below, and subject to the conditions and limitations
applicable thereto as set out herein and in the attached General
Provisions (GP).

B. The amount budgeted and available as personal compensation to the
contractor is calculated to cover a calendar period of approximately
\_\_\_\_\_\_ (days) (weeks) (months) (years) which is to include:

\(1\) vacation, sick, and home leave which may be earned during the
contractor's tour of duty (GP Clause 5);

\(2\) \_\_\_\_\_\_ days for authorized travel (GP Clause 10); and

\(3\) \_\_\_\_\_\_ days for orientation and consultation in the United
States (GP Clause 23).

C. Allowable Costs: 1. Compensation at the rate of \$\_\_\_\_\_\_ per
(year) (month) (week) (day). Adjustments in compensation (pay) for
periods when the contractor is not in compensable pay status shall be
calculated as follows:

Rate of \$\_\_\_\_\_\_ per (day) (hour).

Contingency for Compensation (Pay Comparability) Adjustments.
\$\_\_\_\_\_\_.

Annual Salary increase (3%) \$\_\_\_\_\_\_.

2\. Overtime (Unless specifically authorized in the Schedule of this
contract, no overtime hours shall be allowed hereunder.)\$\_\_\_\_\_\_.

\* 3. Overseas Differential (Ref. GP Clause No. 6.)

Rate \$\_\_\_\_\_\_ and Contingency \$\_\_\_\_\_\_ = Total\$
\_\_\_\_\_\_.

\*\* 4. Allowances in Cooperating Country (Ref. GP Clause 6.)

\$\_\_\_\_\_\_.

\*\* 5. Travel and Transportation (Ref. GP Clause 10.) (Includes the
value of GTRs furnished by the Government, not payable to contractor).

a\. United States \$\_\_\_\_\_\_

b\. International \$\_\_\_\_\_\_

c\. Cooperating and Third Country \$\_\_\_\_\_\_ Subtotal Item 5
\$\_\_\_\_\_\_

\*\* 6. Subsistence or Per Diem (Ref. GP Clause 10.)

a\. United States \$\_\_\_\_\_\_

b\. International \$\_\_\_\_\_\_

c\. Cooperating and Third Country \$\_\_\_\_\_\_.

Subtotal Item 6 \$\_\_\_\_\_\_

7\. Other Direct Costs.

a\. Health and Life Insurance \$\_\_\_\_\_\_

b\. Precontract Costs, passport, visa, inoculations, etc. (Ref. GP
Clause 8.) \$\_\_\_\_\_\_

c\. Physical Examination (Ref. GP Clause 3.)\$\_\_\_\_\_\_

d\. Communications, Miscellaneous. \$\_\_\_\_\_\_ Subtotal Item 7
\$\_\_\_\_\_\_

8\. F.I.C.A.-U.S.G. Contribution (not payable to contractor).
\$\_\_\_\_\_\_

D. Maximum U.S.-Dollar Obligation:

In no event shall the maximum U.S.-dollar obligation under this contract
exceed \$\_\_\_\_\_\_. Contractor shall keep a close account of all
obligations he/she incurs and accrues hereunder and promptly notify the
Contracting Officer whenever in his/her opinion the said maximum is not
sufficient to cover all compensation and costs reimbursable in U.S.
dollars, which he/she anticipates under the contract.

Article IV\--Costs Reimbursable and Logistic Support

A. General: The contractor shall be provided with or reimbursed in local
currency (\_\_\_\_\_\_) for the following:

\[Complete\]

B. Method of Payment of Local Currency Costs: Those contract costs which
are specified as local currency costs in paragraph A above, if not
furnished in kind by the cooperating government or the Mission, shall be
paid to the contractor in a manner adapted to the local situation, based
on vouchers submitted in accordance with General Provision Clause 11.
The documentation for such costs shall be on such forms and in such
manner as the Mission Director shall prescribe.

\* If post differential is applicable to the assigned post, a
contingency for the adjusted amount of differential resulting from
compensation (pay comparability) adjustment should be included.

\*\* Do not include the value of any costs to be paid or reimbursed in
local currency.

Article V---Pre-contract Expenses

No expense incurred before execution of this contract will be reimbursed
unless such expense was incurred after receipt and acceptance of a
pre-contract expense letter issued to the contractor by the Contracting
Officer, and then only in accordance with the provisions and limitations
contained in such letter. The rights and obligations created by such
letter shall be considered as merged into this contract.

Article VI\--Additional Clauses

(Additional Schedule Clauses may be added such as the implementation of
General Provisions or Additional Clauses.)

11\. [Optional Schedule With a U.S. Citizen or U.S. Resident
Alien]{.underline}

A U.S. Citizen or a U.S. Resident Alien PSC Contract No.
\_\_\_\_\_\_\_\_\_\_\_\_\_\_

TABLE OF CONTENTS

(Optional Schedule)

(Use of the Optional Schedule is not mandatory. It is intended to serve
as an alternate procedure for OE funded U.S. PSCs or U.S. Resident Alien
PSCs. The Schedule is for use when the Contracting Officer anticipates
incremental recurring cost funded contracts.

Use of the Optional Schedule eliminates the need to amend the contract
each time funds are obligated. However, the Contracting Officer is
required to amend each contract not less than twice during a 12 month
period to ensure that the contract record of obligations is up to date
and agrees with the figures in the master funding document.)

The Schedule on pages \_\_\_\_\_\_ thru \_\_\_\_\_\_ consists of this
Table of Contents and the following Articles:

Article I \-- Statement of Duties

Article II \-- Period of Service Overseas

Article III \-- Contractor's Compensation and Reimbursement in U.S.
Dollars

Article IV \-- Costs Reimbursable and Logistic Support

Article V -- Pre-contract Expenses

Article VI \-- Additional Clauses

General Provisions:

The following provisions, numbered as shown below, omitting number(s)
\_\_\_\_\_\_, are the General Provisions (GP) of this Contract:

1\. Definitions

2\. Laws and Regulations Applicable Abroad

3\. Physical Fitness and Health Room Privileges

4\. Workweek and Compensation (Pay Comparability Adjustments)

5\. Leave and Holidays

6\. Differential and Allowances

7\. Social Security and Federal Income Tax

8\. Advance of Dollar Funds

9\. Insurance

10\. Travel and Transportation Expenses

11\. Payment

12\. Conversion of U.S. Dollars of Local Currency

13\. Post of Assignment Privileges

14\. Security Requirements

15\. Contractor-Mission Relationships

16\. Termination

17\. Release of Information

18\. Notices

19\. Reports

20\. Use of Pouch Facilities

21\. Biographical Data

22\. Resident Hire PSC

23\. Orientation and Language Training

24\. Conditions for Contracting Prior to Receipt of Security Clearance

25\. Medical Evacuation Services

26\. Governing Law

For each tour of duty, attach the applicable General Provisions.

Article I\--Statement of Duties.

(The statement of duties shall include:

A. General statement of the purpose of the contract.

B. Statement of duties to be performed.

C. Any USAID consultation or orientation.)

Article II\--Period of Service Overseas.

Within \_\_\_\_\_\_ days after written notice form the Contracting
Officer that all clearances, including the doctor's statement of medical
opinion required under General Provision Clause 3, have been received or
unless another date is specified by the Contracting Officer in writing,
the contractor shall proceed to \_\_\_\_\_\_ where he/she shall promptly
commence performance of the duties specified above. The contractor's
period of service overseas shall be approximately \_\_\_\_\_\_ in
\_\_\_\_\_\_. (Specify time of duties in each location as well as
authorized stopovers with purpose of each.)

Article III\--Contractor's Compensation and Reimbursement in U.S.

Dollars.

A. Except to the extent reimbursement is payable in the currency of the
Cooperating Country pursuant to Article IV, USAID shall pay the
contractor compensation after it has accrued and reimburse him/her in
U.S. dollars for necessary and reasonable costs actually incurred by
him/her in the performance of this contract within the categories listed
in paragraph C, below, and subject to the conditions and limitations
applicable thereto as set out herein and in the attached General
Provisions (GP).

B. The amount budgeted and available as personal compensation to the
contractor is calculated to cover a calendar period of approximately
\_\_\_\_\_\_ (days) (weeks) (months) (years), which is to include:

1\. Vacation, sick, and home leave that may be earned during the
contractor's tour of duty (GP Clause 5);

2\. \_\_\_\_\_\_ days for authorized travel (GP Clause 10); and

3\. \_\_\_\_\_\_ days for orientation and consultation in the United
States (GP Clause 23).

C. Allowable Costs: 1. The following illustrative budget details
allowable costs under this contract and provides estimated incremental
recurrent cost funding in the total amount shown. Additional funds for
the full term of this contract will be provided by the preparation of a
master PSC funding document issued by the Mission Controller for the
purpose of providing additional funding for a specific period. The
master PSC funding document will be attached to this contract and will
form a part of the executed contract while also serving to amend the
budget.

2\. Compensation at the rate of \$\_\_\_\_\_\_ per
(year)(month)(week)(day). Adjustments in compensation (pay) for periods
when the contractor is not in compensable pay status shall be calculated
as follows:

Rate of \$\_\_\_\_\_\_ per (day) (hour).

Contingency for Compensation (Pay Comparability Adjustments.)
\$\_\_\_\_\_\_

Annual Salary increase (3%) \$\_\_\_\_\_\_

3\. Overtime (Unless specifically authorized in the Schedule of this
contract, no overtime hours shall be allowed hereunder.)\$\_\_\_\_\_\_

\* 4. Overseas Differential (Ref. GP Clause No. 6.)

Rate \$\_\_\_\_\_\_ and Contingency \$\_\_\_\_\_\_ = Total
\$\_\_\_\_\_\_.

\*\* 5. Allowances in Cooperating Country (Ref. GP Clause 6.)

\$\_\_\_\_\_\_.

\*\* 6. Travel and Transportation (Ref. GP Clause 10.) (Includes the
value of GTRs furnished by the Government, not payable to contractor).

a\. United States \$\_\_\_\_\_\_

b\. International \$\_\_\_\_\_\_

c\. Cooperating and Third Country \$\_\_\_\_\_\_ Subtotal Item 6
\$\_\_\_\_\_\_

\*\* 7. Subsistence or Per Diem (Ref. GP Clause 10.)

a\. United States \$\_\_\_\_\_\_

b\. International \$\_\_\_\_\_\_

c\. Cooperating and Third Country \$\_\_\_\_\_\_ Subtotal Item 7
\$\_\_\_\_\_\_

\*\* 8. Other Direct Costs

a\. Health and Life Insurance (Ref. GP Clause 9.) \$\_\_\_\_\_\_

b\. Pre-contract Costs, passport, visa, inoculations, etc. (Ref. GP
Clause 8.) \$\_\_\_\_\_\_

c\. Physical Examination (Ref. GP Clause 3.) \$\_\_\_\_\_\_

d\. Communications, Miscellaneous \$\_\_\_\_\_\_ Subtotal Item 8
\$\_\_\_\_\_\_

9\. F.I.C.A.\--U.S.G. contribution (not payable to contractor). \$
\_\_\_\_\_\_

D. Maximum U.S.-Dollar Obligation: In no event shall the maximum
U.S.-dollar obligation under this contract exceed \$\_\_\_\_\_\_.

E. Salary changes and personnel-related contract actions will be made by
processing the same forms as used in making such changes and actions for
direct-hire employees. When issued by the Contracting Officer, the forms
utilized will be attached to the contract and will form a part of the
contract terms and conditions.

\* If post differential is applicable to the assigned post, a
contingency for the adjusted amount of differential resulting from
compensation (pay comparability) adjustment should be included.

\*\* Do not include the value of any costs to be paid or reimbursed in
local currency.

F. Any adjustment or increase in the compensation granted to direct-hire
employees will be allowed for in PSCs subject to the availability of
funds. Such an adjustment will be effected by a mass pay adjustment
notice from the Contracting Officer, which will be attached to the
contract and form a part of the executed contract.

G. At the end of each year of satisfactory service, PSC contractors will
be eligible to receive an increase equal to 3% pending availability of
funds provided their services have been satisfactory. Such increase will
be effected by the execution of an SF-1126, payroll change slip which is
to be attached to each contract and each action forms a part of the
official contract file.

H. The master PSC funding document may not exceed the term or estimated
total cost of this contract. Notwithstanding that additional funds are
obligated under this contract through the issuance and attachment of the
master PSC funding document, all other contract terms and conditions
remain in full effect.

Article IV\--Costs Reimbursable and Logistic Support

A. General: The contractor shall be provided with or reimbursed in local
currency (\_\_\_\_\_\_) for the following:

\[Complete\]

B. Method of Payment of Local Currency Costs: Those contract costs which
are specified as local currency costs in paragraph A above, if not
furnished in kind by the cooperating government or the Mission, shall be
paid to the contractor in a manner adapted to the local situation, based
on vouchers submitted in accordance with General Provision Clause 12.
The documentation for such costs shall be on such forms and in such
manner as the Mission Director shall prescribe.

Article V---Pre-contract Expenses

No expense incurred before execution of this contract will be reimbursed
unless such expense was incurred after receipt and acceptance of a
pre-contract expense letter issued to the contractor by the Contracting
Officer, and then only in accordance with the provisions and limitations
contained in such letter. The rights and obligations created by such
letter shall be considered as merged into this contract.

Article VI\--Additional Clauses

(Additional Schedule Clauses may be added such as the implementation of
General Provisions or Additional Clauses.)

12\. [General Provisions]{.underline}

Contract With a U.S. Citizen or a U.S. Resident Alien

for Personal Services Abroad

The following clauses are to be used (when applicable), for both tours
of duty of less than 1 year as well as 1 year or more.

INDEX OF CLAUSES

1\. Definitions

2\. Compliance with Laws and Regulations Applicable Abroad

3\. Physical Fitness and Health Room Privileges

4\. Workweek and Compensation (Pay Comparability Adjustments)

5\. Leave and Holidays

6\. Differential and Allowances

7\. Social Security, Federal Income Tax, and Foreign Earned Income

8\. Advance of Dollar Funds

9\. Insurance

10\. Travel and Transportation Expenses

11\. Payment

12\. Conversion of U.S. Dollars to Local Currency

13\. Post of Assignment Privileges

14\. Security Requirements

15\. Contractor-Mission Relationships

16\. Termination

17\. Release of Information

18\. Notices

19\. Reports

20\. Use of Pouch Facilities

21\. Biographical Data

22\. U.S. Resident Hire Personal Services Contractor

23\. Orientation and Language Training

24\. Conditions for Contracting Prior to Receipt of Security Clearance

25\. Medical Evacuation (MEDEVAC) Services

26\. Governing Law

1\. DEFINITIONS (June 1990)

\(a\) "USAID" shall mean the Agency for International Development.

\(b\) "Administrator" shall mean the Administrator or the Deputy
Administrator of USAID.

\(c\) "Contracting Officer" shall mean a person with the authority to
enter into, administer, and/or terminate contracts and make related
determinations and findings. The term includes certain authorized
representatives of the Contracting Officer acting within the limits of
their authority as delegated by the Contracting Officer.

\(d\) "Contractor" shall mean the individual engaged to serve under this
contract.

\(e\) "Cooperating Country" shall mean the foreign country in or for
which services are to be rendered hereunder.

\(f\) "Cooperating Government" shall mean the government of the
Cooperating Country.

\(g\) "Government" shall mean the United States Government.

\(h\) "Local currency" shall mean the currency of the Cooperating
Country.

\(i\) "Mission" shall mean the United States USAID Mission, or principal
USAID office, in the Cooperating Country, or USAID/Washington (USAID/W).

\(j\) "Mission Director" shall mean the principal officer in the Mission
in the Cooperating Country, or his/her designated representative.

\(k\) "Technical Officer" shall mean the USAID official to whom the
contractor reports, and who is responsible for monitoring the
contractor's performance.

\(l\) "Tour of duty" shall mean the contractor's period of service under
this contract and shall include orientation in the United States (less
language training), authorized leave, and international travel.

\(m\) "Traveler" shall mean\--

\(1\) The contractor in authorized travel status or

\(2\) Dependents of the contractor who are in authorized travel status.

\(n\) "Dependents" means:

(1)Spouse.

\(2\) Children (including step and adopted children) who are unmarried
and under 21 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 contractor for support.

\(4\) Sisters and brothers (including step or adoptive sisters or
brothers) of the contractor, or of the spouse, when such sisters and
brothers are at least 51 percent dependent on the contractor for
support, unmarried and under 21 years of age, or regardless of age, are
incapable of self-support.

\(o\) "U.S. Resident Alien", as used in this contract, shall mean an
alien immigrant, legally resident in the United States, the Commonwealth
of Puerto Rico, or the possessions of the United States, and having a
valid "Alien Registration and Receipt Card" (Immigration and
Naturalization Service forms I-151 or I-551).

\(p\) "U.S. Resident Hire Personal Services Contractor" ("PSC") means a
U.S. citizen who, at the time of hiring as a PSC, resides in the
Cooperating Country:

\(1\) 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

\(2\) 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 a person who
at the time of contracting, is a lawfully admitted permanent resident of
the United States.

2\. COMPLIANCE WITH LAWS AND REGULATIONS APPLICABLE ABROAD (July 1993)

\(a\) [Conformity to Laws and Regulations of the Cooperating
Country]{.underline}. Contractor agrees that, while in the cooperating
country, he/she as well as authorized dependents will abide by all
applicable laws and regulations of the cooperating country and political
subdivisions thereof.

\(b\) [Purchase or Sale of Personal Property or
Automobiles]{.underline}. To the extent permitted by the cooperating
country, the purchase, sale, import, or export of personal property or
automobiles in the cooperating country by the contractor shall be
subject to the same limitations and prohibitions which apply to Mission
U.S.-citizen direct-hire employees.

\(c\) [Code of Conduct]{.underline}. The contractor shall, during
his/her tour of duty under this contract, be considered an "employee"
(or if his/her tour of duty is for less than 130 days, a "special
Government employee") for the purposes of, and shall be subject to, the
provisions of 18 U.S.C. 202(a) and the USAID General Notice entitled
"Employee Review of the New Standards of Conduct" pursuant to 5 CFR part
2635. The contractor acknowledges receipt of a copy of these documents
by his/her acceptance of this contract.

3\. PHYSICAL FITNESS AND HEALTH ROOM PRIVILEGES (Apr 1997)

\(a\) [Physical Fitness]{.underline}.

\(1\) For all assignments outside of the United States the contractor
and any authorized dependents shall be required to be examined by a
licensed doctor of medicine, and the contractor shall obtain from the
doctor a statement of medical opinion that, in the doctor's opinion, the
contractor is physically able to engage in the type of activity for
which he/she is to be employed under the contract, and the contractor
and any dependents are physically able to reside in the Cooperating
Country. A copy of the statement(s) shall be provided to the Contracting
Officer prior to the contractor's departure for the Cooperating Country,
or for a U.S. resident hire, before he/she starts work under the
contract.

\(2\) For assignments of 60 days or more in the Cooperating Country, the
Contracting Officer shall provide the contractor and all

authorized dependents copies of the "USAID Contractor Employee Physical
Examination Form". This form is for collection of information; it has
been reviewed and approved by OMB, and assigned Control No. 0412-0536.
Information required by the Paperwork Reduction Act (burden estimate,
points of contract, and OMB approval expiration date) is printed on the
form. The contractor and all authorized dependents shall obtain a
physical examination from a licensed physician, who will complete the
form for each individual. The contractor will deliver the physical
examination form(s) to the Embassy health unit in the Cooperating
Country. A copy of the doctor's statement of medical opinion at the end
of the form which identifies the contractor or dependent by name may be
used to meet the requirement in (a)(1) above.

\(3\) For end-of-tour the contractor and his/her authorized dependents
are authorized physical examinations within 60 days after completion of
the contractor's tour-of-duty.

\(b\) [Reimbursement]{.underline}.

\(1\) As a contribution to the cost of medical examinations required by
paragraph (a)(1) of this clause, USAID shall reimburse the contractor
not to exceed \$100 for each physical examination, plus reimbursement of
charges for immunizations.

\(2\) As a contribution to the cost of medical examinations required by
paragraph (a)(2) of this clause the contractor shall be reimbursed in an
amount not to exceed half of the cost of the examination up to a maximum
USAID share of \$300 per examination plus reimbursement of charges for
immunizations for himself/herself and each authorized dependent 12 years
of age or over. The USAID contribution for authorized dependents under
12 years of age shall not exceed half of the cost of the examination up
to a maximum share of \$120 per individual plus reimbursement of charges
for immunizations. The contractor must obtain the prior written approval
of the Contracting Officer to receive any USAID obligations higher than
these limits.

\(c\) [Health Room Privileges]{.underline}. Routine health room services
may be available, subject to post policy and in accordance with the
requirements of paragraph (a) of this clause, to U.S. citizen
contractors and their authorized dependents (regardless of citizenship)
at the post of duty. These services do not include hospitalization or
pre-departure examinations. The services normally include such
medications, as may be available, immunizations and preventive health
measures, diagnostic examinations and advice, and home visits as
medically indicated. Emergency medical treatment is provided to U.S.
citizen contractor employees and dependents, whether or not they may
have been granted access to routine health room services, on the same
basis as it would be to any U.S. citizen in an emergency medical
situation in the country.

4\. WORKWEEK AND COMPENSATION (PAY COMPARABILITY ADJUSTMENTS) (Dec 1985)

\(a\) [Workweek]{.underline}. The contractor's workweek shall not be
less than 40 hours, unless otherwise provided in the Contract Schedule,
and shall coincide with the workweek for those employee of the Mission
or the Cooperating Country agency most closely associated with the work
of this contract. If the contract is for less than full time (40 hours
weekly), the annual and sick leave earned shall be prorated (see the
General Provision of this contract entitled Leave and Holidays).

\(b\) [Compensation (Pay Comparability) Adjustments]{.underline}. The
contractor's compensation shall be adjusted to reflect the pay
comparability adjustments, which are granted from time to time to U.S.
direct-hire employees by Executive Order for the statutory pay systems.
Any adjustments authorized are subject to the availability of funds and
shall not exceed that percentage stated in the Executive Order granting
the adjustment. Further, the adjusted compensation may not exceed the
maximum ES-6 annual compensation (or the equivalent daily rate).

5\. LEAVE AND HOLIDAYS (APR 1997)

\(a\) [Vacation Leave]{.underline}.

\(1\) The contractor shall earn vacation leave at the rate of 13
workdays per annum or 4 hours every 2 weeks. However, no vacation shall
be earned if the tour of duty is less than 90 days.

\(2\) Notwithstanding paragraph (a)(1) above, if the contractor has had
previous PSC service (i.e., has served under other personal services
contracts (PSCs) covered by Sec. 636(a)(3) of the FAA), he/she shall
earn vacation leave at the rate of either 6 hours every two weeks (10
hours for the final pay period of a calendar year) cumulative PSC
service exceeding 3 years, or 8 hours every two weeks for cumulative PSC
service exceeding 15 years. Former Civil Service, Foreign Service, or a
Military Service experience is not creditable towards PSC service for
annual leave purposes.

\(3\) It is understood that vacation leave is provided under this
contract primarily for the purposes of affording necessary rest and
recreation during the tour of duty in the Cooperating Country. The
Contractor in consultation with the USAID Mission shall develop a
vacation leave schedule early in his/her tour of duty taking into
consideration project requirements, employee preference and other
factors. All vacation leave earned by the contractor must be used during
his/her tour of duty. All vacation leave earned by the contractor but
not taken by the end of his/her tour of duty will be forfeited unless
the requirements of the activity precluded the employee from taking such
leave and the Contracting Officer, with the endorsement of the Mission
Director, approves one of the following as an alternative:

\(i\) Taking leave during the concluding weeks of the employee's tour,
or

\(ii\) Lump-sum payment for leave not taken provided such leave does not
exceed the number of days, which can be earned by the employee during a
twelve-month period.

\(4\) With the approval of the Mission Director, and if the
circumstances warrant, a contractor may be granted advance vacation
leave in excess in that earned, but in no case shall a contractor be
granted advance vacation leave in excess of that which he/she will earn
over the life of the contract. The contractor agrees to reimburse USAID
for leave used in excess of the amount earned during the contractor's
assignment under the contract.

\(b\) [Sick Leave]{.underline}. Sick leave is earned at a rate not to
exceed 13 work-days per annum or 4 hours every 2 weeks. Unused sick
leave may be carried over under an extension of this contract for the
same or similar services at the same Mission, but the contractor will
not be compensated for unused sick leave at the completion of this
contract. No leave my be carried over from one post to another.

\(c\) [Home Leave]{.underline}.

\(1\) Home leave is leave earned for service abroad for use only in the
United States, in the Commonwealth of Puerto Rico, or in the possessions
of the United States.

\(2\) A contractor who is a U.S. citizen or U.S. resident alien and has
served as least 2 years overseas, as defined in paragraph (c)(4) below,
under personal services contract in this Mission, and has not taken more
than 30 workdays leave (vacation, sick, or leave without pay) in the
United States, may be granted home leave of not more than 15 work days
for each such year of service overseas; provided, that the contractor
agrees to return overseas upon completion of home leave under an
additional 2 year appointment, or for such shorter period of not less
than 1 year of overseas service under the contract as the Mission
Director may approve in advance. Home leave must be taken in the United
States, the Commonwealth of Puerto Rico, or the possessions of the
United States, and any days spent elsewhere will be charged to vacation
leave or leave without pay.

\(3\) Notwithstanding the requirement in paragraph (c)(2) above that the
contractor must have served 2 years overseas under personal services
contract with this Mission to be eligible for home leave, the contractor
may be granted advance home leave subject to all of the following
conditions:

\(i\) Granting of leave home leave would in each case serve to advance
the attainment of the objectives of this contract;

\(ii\) The contractor has served a minimum of 18 months in the
Cooperating Country on his/her current tour of duty under this contract;
and

\(iii\) The contractor agrees to return to the Cooperating Country to
serve out the remainder of his/her current tour of duty and an
additional 2-year appointment under this or subsequent contract, or such
other additional appointment of not less than 1 year of overseas service
as the Mission Director may approve.

\(4\) The period of service overseas required under paragraph (c)(2), or
paragraph (c)(3) above, shall include the actual days in orientation in
the United States (less language training) and the actual days overseas
beginning on the date of departure from the U.S. port of embarkation on
international travel and continuing, inclusive of authorized delays
enroute, to the date of arrival at the U.S. port of debarkation from
international travel. Allowable vacation and sick leave taken while
overseas, but not leave without pay, shall be included in the required
period of service overseas. An amount equal to the number of days of
vacation and sick leave taken in the United States, the Commonwealth of
Puerto Rico, or the possessions of the United States will be added to
the required period of service overseas.

\(5\) Salary during the travel to and from the United States for home
leave will be limited to the time required for travel by the most
expeditious air route. The contractor will be responsible for
reimbursing USAID for payments made during home leave, if, in spite of
the undertaking of the new appointment, the contractor, except for
reasons beyond his/her control as determined by the Contracting Officer,
does not return overseas and complete the additional required service.
Unused home leave is not reimbursable under this contract.

\(6\) To the extent deemed necessary by the Contracting Officer, a
contractor in the United States on home leave may be authorized to spend
not more than 5 days in work status for consultation at USAID/Washington
before returning to post duty. Consultation at locations other than
USAID/Washington as well as any time in excess of 5 days spent for
consultation, must be approved by the Mission Director or the
Contracting Officer.

\(d\) [Holidays]{.underline}. The contractor, while serving abroad,
shall be entitled to all holidays granted by the Mission to U.S.-citizen
direct-hire employees.

\(e\) [Military Leave]{.underline}. Military leave of not more than 15
calendar days in any calendar year may be granted to a contractor who is
a reservist of the Armed Forces, provided that military leave has been
approved in advance by the Contracting Officer or the Mission Director.
A copy of any such approval shall be part of the contract file.

\(f\) [Leave Without Pay]{.underline}. Leave without pay may be granted
only with the written approval of the Contracting Officer or Mission
Director.

\(g\) [Compensatory Time]{.underline}. Compensatory leave may be granted
only with the written approval of the Contracting Officer or Mission
Director in rare instances when it has been determined absolutely
essential and used under those guidelines, which apply to direct-hire
employees.

\(h\) [Leave Records]{.underline}. The contractor shall maintain current
leave records for himself/herself and make them available, as requested
by the Mission Director or the Contracting Officer.

6.DIFFERENTIAL AND ALLOWANCES (June 1990)

\(a\) The following differential and allowances will be granted to the
contractor and his/her authorized dependents to the same extent and on
the same basis as they are granted to U.S. citizen direct-hire employees
at the Mission by the Standardized Regulations (Government Civilians,
Foreign Areas), as from time to time amended, except as noted to the
contrary below:

  ---------------------------------- ------------------------------------
  **Applicable Reference to          
  Standardized Regulations**         

  \(1\) Post Differential            Chapter 500 and Tables in Chapter
                                     900.

  \(2\) Living Quarters Allowance    Section 130.

  \(3\) Temporary Lodging Allowance  Section 120.

  \(4\) Post Allowance               Section 220.

  \(5\) Supplemental Post Allowance  Section 230.

  \(6\) Payments During Evacuation   Section 600.

  \(7\) Education Allowance          Section 270.

  \(8\) Separate Maintenance         Section 260.
  Allowance                          

  \(9\) Danger Pay Allowance         Section 650.

  \(10\) Education Travel            Section 280.
  ---------------------------------- ------------------------------------

\(1\) [Post Differential]{.underline}. Post differential is an
additional compensation for service at places in foreign areas where
conditions of environment differ substantially from conditions of
environment in the continental United States and warrant additional
compensation as a recruitment and retention incentive. In areas where
post differential is paid to USAID direct-hire employees, post
differential not to exceed the percentage of salary as is provided such
USAID employees in accordance with the Standardized Regulations
(Government Civilians, Foreign Areas) Chapter 500 (except the limitation
contained in Section 552, "Ceiling on Payment") Tables\--Chapter 900, as
from time to time amended, will be reimbursable hereunder for employees
in respect to amounts earned during the time such employees actually
spend overseas on work under this contract. When such post differential
is provided to the contractor, it shall be payable beginning on the date
of arrival at the post of assignment and continue, including periods
away from post on official business, until the close of business on the
day of departure from post of assignment enroute to the United States.
Sick or vacation leave taken at or away from the post of assignment will
not interrupt the continuity of the assignment or require a
discontinuance of such post differential payments, provided such leave
is not taken within the United States or the territories of the United
States. Post differential will not be payable while the employee is away
from his/her post of assignment for purposes of home leave. Short-term
employees shall be entitled to pose

differential beginning with the forty-third (43rd) day at post.

\(2\) [Living Quarters Allowance]{.underline}. Living quarters allowance
is an allowance granted to reimburse an employee for substantially all
of his/her cost for either temporary or residence quarters whenever
Government-owned or Government-rented quarters are not provided to
him/her at his/her post without charge. Such costs are those incurred
for temporary lodging (temporary lodging allowance) or one unit of
residence quarters (living quarters allowance) and include rent, plus
any costs not included therein for heat, light, fuel, gas, electricity
and water. The temporary lodging allowance and the living quarters
allowance are never both payable to an employee for the same period of
time. The contractor will receive living quarters allowance for payment
of rent and utilities if such facilities are not supplied. Such
allowance shall not exceed the amount paid USAID employees of equivalent
rank in the Cooperating Country, in accordance with either the
Standardized Regulations (Government Civilians, Foreign Areas), Chapter
130, as from time to time amended, or other rates approved by the
Mission Director. Subject to the written approval of the Mission
Director, short-term employees may be paid per diem (in lieu of living
quarters allowance) at rates prescribed by the Federal Travel
Regulations, as from time to time amended, during the time such
short-term employees spend at posts of duty in the Cooperating Country
under this contract. In authorizing such per diem rates, the Mission
Director shall consider the particular circumstances involved with
respect to each such short-term employee including the extent to which
meals and/or lodging may be made available without charge or at nominal
cost by an agency of the United States Government or of the Cooperating
Government, and similar factors.

\(3\) [Temporary Lodging Allowance]{.underline}. Temporary lodging
allowance is a quarters allowance granted to an employee for the
reasonable cost of temporary quarters incurred by the employee and
his/her family for a period not in excess of (i) three months after
first arrival at a new post in a foreign area or a period ending with
the occupation of residence (permanent) quarters, if earlier, and (ii)
one month immediately preceding final departure from the post subsequent
to the necessary vacating of residence quarters. The contractor will
receive temporary lodging allowance for himself/herself and authorized
dependents, in lieu of living quarters allowance, not to exceed the
amount set forth in the Standardized Regulations (Government Civilians,
Foreign Areas), Chapter 120, as from time to time amended.

\(4\) [Post Allowance]{.underline}. Post allowance is a cost-of-living
allowance granted to an employee officially stationed at a post where
the cost of living, exclusive of quarters cost, is substantially higher
than in Washington, D.C. The contractor will receive post allowance
payments not to exceed those paid USAID employees in the Cooperating
Country, in accordance with the Standardized Regulations (Government
Civilians, Foreign Areas), Chapter 220, as from time to time amended.

\(5\) [Supplemental Post Allowance]{.underline}. Supplemental post
allowance is a form of post allowance granted to an employee at his/her
post when it is determined that assistance is necessary to defray
extraordinary subsistence costs. The contractor will receive
supplemental post allowance payments not to exceed the amount set forth
in the Standardized Regulations (Government Civilians, Foreign Areas),
Chapter 230, as from time to time amended.

\(6\) [Payments During Evacuation]{.underline}. The Standardized
Regulations (Government Civilians, Foreign Areas) provide the authority
for efficient, orderly, and equitable procedure for the payment of

compensation, post differential and allowances in the event of an
emergency evacuation of employees or their dependents, or both, from
duty stations for military or other reasons or because of imminent
danger to their lives. If evacuation has been authorized by the Mission
Director, the contractor will receive payments during evacuation for
himself/herself and authorized dependents evacuated from their post of
assignment in accordance with the Standardized Regulations (Government
Civilians, Foreign Areas), Chapter 600, and the Federal Travel
Regulations, as from time to time amended.

\(7\) [Educational Allowance]{.underline}. Educational allowance is an
allowance to assist the contractor in meeting the extraordinary and
necessary expenses, not otherwise compensated for, incurred by reason of
his/her service in a foreign area in providing adequate elementary and

secondary education for his/her children. The contractor will receive
educational allowance payments for his/her dependent children in amounts
not to exceed those set forth in Standardized Regulations (Government
Civilians, Foreign Areas), Chapter 270, as from time to time amended.

\(8\) [Separate Maintenance Allowance]{.underline}. Separate maintenance
allowance is an allowance to assist an employee who is compelled by
reason of dangerous, notably unhealthful, or excessively adverse living
conditions at his/her post of assignment in a foreign area, or for the
convenience of the Government, to meet the additional expense of
maintaining his/her dependents elsewhere than at such post. The
contractor will receive separate maintenance allowance payments not to
exceed that made to USAID employees in accordance with the Standardized
Regulations (Government Civilians, Foreign Areas), Chapter 260, as from
time to time amended.

\(9\) [Danger Pay Allowance]{.underline}. Danger pay allowance is an
allowance to provide additional compensation above basic compensation to
employees in foreign areas where civil insurrection, civil war,
terrorism or wartime conditions threaten physical harm or imminent
danger to the health or well-being of the employee. The danger pay
allowance is in lieu of that part of the post differential, which is
attributable to political violence. Consequently, the post differential
may be reduced while danger pay is in effect to avoid dual crediting for
political violence. The contractor shall be allowed danger pay allowance
not to exceed that paid USAID employees in the Cooperating Country, in
accordance with the Standardized Regulations (Government Civilians,
Foreign Areas), Chapter 650, as from time to time amended.

\(10\) [Educational Travel]{.underline}. Educational travel is travel to
and from a school in the United States for secondary education (in lieu
of an educational allowance) and for college education. The contractor
will receive educational travel payments for his/her dependent children
provided such payment does not exceed that which would be payable in
accordance with the Standardized Regulations (Government Civilians,
Foreign Areas), Chapter 280, as from time to time amended. Educational
travel shall not be authorized for contractors whose assignment is less
than two years.

\(b\) The allowances provided in paragraphs (a) (1) through (10) of this
provision shall be paid to the contractor in dollars or in the currency
of the Cooperating Country in accordance with practice prevailing at the
Mission, or the Mission Director may direct that the contractor be paid
a per diem in lieu thereof as prescribed by the Standardized Regulations
(Government Civilians, Foreign Areas), as from time to time amended.

7\. SOCIAL SECURITY, FEDERAL INCOME TAX, AND

FOREIGN EARNED INCOME (June 1990)

\(a\) Since the contractor is an employee, F.I.C.A. contributions and
U.S. Federal Income Tax withholding shall be deducted in accordance with
regulations and rulings of the Social Security Administration and the
U.S. Internal Revenue Service, respectively.

\(b\) As an employee, the contractor is not eligible for the

"foreign earned income" exclusion under the IRS Regulations (see

26 CFR 1.911-3(c)(3)).

8\. ADVANCE OF DOLLAR FUNDS (Apr 1997)

If requested by the contractor and authorized in writing by the
Contracting Officer, USAID will arrange for an advance of funds to
defray the initial cost of travel, travel allowances, authorized
pre-contract expenses, and shipment of personal property. The advance
shall be granted on the same basis as to a USAID U.S.-citizen
direct-hire employee in accordance with USAID Handbook 22, Chapter 4 or
superseding ADS Chapter.

9\. INSURANCE (Apr 1997)

\(a\) [Worker's Compensation Benefits]{.underline}. The contractor shall
be provided worker's compensation benefits in accordance with the
Federal Employees' Compensation Act.

\(b\) [Health and Life Insurance]{.underline}.

\(1\) The contractor shall be provided a maximum contribution of up to
50% against the actual costs of the contractor's annual health insurance
costs, provided that such costs may not exceed the maximum U.S.
Government contribution for direct-hire personnel as announced annually
by the Office of Personnel Management.

\(2\) The contractor shall be provided a contribution of up to 50%
against the actual costs of annual life insurance not to exceed \$500.00
per year.

\(3\) Retired U.S. Government employees shall not be paid additional
contributions for health or life insurance under their contracts. The
Government will normally have already paid its contribution for the
retiree unless the employee can prove to the satisfaction of the
Contracting Officer that his/her health and life insurance does not
provide or specifically excludes coverage overseas. In such case, the
contractor would be eligible for contributions under paragraphs (b)(1)
or (2) as appropriate.

\(4\) Proof of health and life insurance coverage shall be submitted to
the Contracting Officer before any contribution is paid. On assignments
of less than one year, costs for health and life insurance shall be
prorated and paid accordingly.

\(5\) A contractor who is a spouse of a current or retired Civil
Service, Foreign Service, or Military Service member and who is covered
by their spouse's Government health or life insurance policy is
ineligible for the contribution under paragraphs (b)(1) or (b)(2) of
this provision.

\(c\) [Insurance on Private Automobiles]{.underline}. If the contractor
or his/her dependents transport, or cause to be transported, privately
owned automobile(s) to the Cooperating Country, or any of them purchase
an automobile within the Cooperating Country, the contractor agrees to
ensure that all such automobile(s) during such ownership within the
Cooperating Country will be covered by a current, i.e., not in arrears,
insurance policy issued by a reliable company providing the following
minimum coverage, or such other minimum coverage as may be set by the
Mission Director, payable in U.S. dollars or its equivalent in the
currency of the Cooperating Country: injury to persons,
\$10,000/\$20,000; property damage, \$5,000. The contractor further
agrees to deliver, or cause to be delivered to the Mission Director, the
insurance policies required by this clause or satisfactory proof of the
existence thereof,

before such automobile(s) operated within the Cooperating Country. The
premium costs for such insurance shall not be a reimbursable cost under
this contract.

10\. TRAVEL AND TRANSPORTATION EXPENSES (July 1993)

\(a\) [General]{.underline}.

\(1\) USAID/Washington Office of Administrative Services, or such other
office as may be designated by that office, may furnish Transportation
Requests (TR's) to the contractor for transportation authorized by this
contract originating in the United States, and the executive or
administrative officer at the Mission may furnish TR's for such
authorized transportation which is payable in local currency or is to
originate overseas. When transportation is not provided by the
Government-issued TR, the contractor shall procure his/her own
transportation, the costs of which will be reimbursed in accordance with
the terms of this contract.

\(2\) The contractor will be reimbursed for reasonable, allocable and
allowable travel and transportation expenses incurred under and for the
performance of this contract. Determination of reasonableness,
allocability and allowability will be made by the Contracting Officer in
accordance with USAID's established policies and procedures for USAID
direct-hire employees, and the particular needs of the activity being
implemented by this contract. The following paragraphs provide specific
guidance and limitations on particular items of cost.

\(b\) [U.S. Travel and Transportation]{.underline}. The contractor shall
be reimbursed for actual transportation costs and travel allowances in
the United States as authorized in the Contract Schedule or approved in
advance by the Contracting Officer or the Mission Director.
Transportation costs and travel allowances shall not be reimbursed in
any amount greater than the cost of, and time required for,
Economy-class commercially scheduled air travel by the most expeditious
route except as otherwise provided in paragraph (g) of this provision
unless economy air travel is not available and the contractor certifies
to this in his/her voucher or other documents submitted for
reimbursement.

\(c\) [International Travel]{.underline}. For travel to and from post of
assignment, the contractor shall be reimbursed for travel costs and
travel allowances from place of residence in the United States (or other
location provided that the cost of such travel does not exceed the cost
of the travel from the contractor's residence in the United States) to
the post of duty in the Cooperating Country and return to place of
residence in the United States (or other location provided that the cost
of such travel does not exceed the cost of travel from the post of duty
in the Cooperating Country to the contractor's residence) upon
completion of services by the individual. Reimbursement for travel will
be in accordance with USAID's established policies and procedures for
its direct-hire employees and the provisions of this contract, and will
be limited to the cost of travel by the most direct and expeditious
route. If the contract is for longer than one year and the contractor
does not complete one full year at post of duty (except for reasons
beyond his/her control), the costs of going to and from the post of duty
for the contractor and his/her dependents are not reimbursable
hereunder. If the contractor serves more than one year but less than the
required service in the Cooperating Country (except for reasons beyond
his/her control) the costs of going to the post of duty are reimbursable
hereunder but the costs of going from post of duty to the contractor's
permanent, legal place of residence at the time he or she was employed
for work under this contract, or other location as approved by the
Contracting Officer, are not reimbursable under this contract for the
contractor and his/her dependents. When travel is by economy class
accommodations, the contractor will be reimbursed for the cost of
transporting up to 10 kilograms/22 pounds of accompanied personal
baggage per traveler in addition to that regularly allowed with the
economy ticket provided that the total number of pounds of baggage does
not exceed that regularly allowed for first class travelers. Travel
allowances for travelers shall not be in excess of the rates authorized
in the Standardized Regulations (Government Civilians, Foreign
areas)-hereinafter referred to as the Standardized Regulations\--as from
time to time amended, for not more than the travel time required by
scheduled commercial air carrier using the most expeditious route. One
stopover enroute for a period of not to exceed 24 hours is allowable
when the traveler uses economy class accommodations for a trip of 14
hours or more of scheduled duration. Such stopover shall not be
authorized when travel is by indirect route or is delayed for the
convenience of the traveler. Per diem during such stopover shall be paid
in accordance with the Federal Travel Regulations as from time to time
amended.

\(d\) [Local Travel]{.underline}. Reimbursement for local travel in
connection with duties directly referable to the contract shall not be
in excess of the rates established by the Mission Director for the
travel costs of travelers in the Cooperating Country. In the absence of
such established rates the contractor shall be reimbursed for actual
travel costs in the Cooperating Country or the Mission, including travel
allowances at rates not in excess of those prescribed by the
Standardized Regulations.

\(e\) [Indirect Travel for Personal Convenience]{.underline}. When
travel is performed by an indirect route for the personal convenience of
the traveler, the allowable costs of such travel will be computed on the
basis of the cost of allowable air fare via the direct usually traveled
route. If such costs include fares for air or ocean travel by foreign
flag carriers, approval for indirect travel by such foreign flag
carriers must be obtained from the Contracting Officer or the Mission
Director before such travel is undertaken, otherwise only that portion
of travel accomplished by the United States-flag carriers will be
reimbursable within the above limitation of allowable costs.

\(f\) [Limitation on Travel by Dependents]{.underline}. Travel costs and
allowances will be allowed for authorized dependents of the contractor
and such costs shall be reimbursed for travel from place of abode to
assigned station in the Cooperating Country and returned, only if the
dependent remains in the Cooperating Country for at least 9 months or
one-half of the required tour of duty of the contractor, whichever is
greater, except as otherwise authorized hereunder for education, medical
or emergency visitation travel. If the dependent is eligible for
educational travel pursuant to the "Differential and Allowances" clause
of this contract, time spent away from post resulting from educational
travel will be counted as time at post.

\(g\) [Delays Enroute]{.underline}. The contractor may be granted
reasonable delays enroute while in travel status when such delays are
caused by events beyond the control of the contractor and are not due to
circuitous routine. It is understood that if delay is caused by physical
incapacitation, he/she shall be eligible for such sick leave as provided
under the "Leave and Holidays" clause of this contract.

\(h\) [Travel by Privately Owned Automobile (POV)]{.underline}. If
travel by POV is authorized in the contract schedule or approved by the
Contracting Officer, the contractor shall be reimbursed for the cost of
travel performed in his/her POV at a rate not to exceed that authorized
in the Federal Travel Regulations plus authorized per diem for the
employee and for each of the authorized dependents traveling in the POV,
if the POV is being driven to or from the Cooperating Country as
authorized under the contract, provided that the total cost of the
mileage and the per diem paid to all authorized travelers shall not
exceed the total constructive cost of fare and normal per diem by all
authorized travelers by surface common carrier or authorized air fare,
whichever is less.

\(i\) [Emergency and Irregular Travel and Transportation]{.underline}.
Emergency transportation costs and travel allowances while enroute, as
provided in this section, will be reimbursed not to exceed amounts
authorized by the Foreign Service Travel Regulations for USAID-direct
hire employees in like circumstances under the following conditions:

\(1\) The costs of going from post of duty in the Cooperating Country to
the employee's permanent, legal place of residence at the time he or she
was employed for work under this contract or other location for
contractor employees and dependents and returning to the post of duty,
subject to the prior written approval of the Mission Director that such
travel is necessary for one of the following reasons.

\(i\) Need for medical care beyond that available within the area to
which the employee is assigned, or serious effect on physical or mental
health if residence is continued at assigned post of duty. The Mission
Director may authorize a medical attendant to accompany the employee at
contract expense if, based on medical opinion, such an attendant is
necessary.

\(ii\) Death, or serious illness or injury of a member of the immediate
family of the employee or the immediate family of the employee's spouse.

\(2\) When, for any reason, the Mission Director determines it is
necessary to evacuate the contractor or contractor's dependents, the
contractor will be reimbursed for travel and transportation expenses and
travel allowance while enroute, for the cost of the individuals going
from post of duty in the Cooperating Country to the employee's
permanent, legal place of residence at the time he or she was employed
for work under this contract or other approved location. The return of
such employees and dependents may also be authorized by the Mission
Director when, in his/her discretion, he/she determines it is prudent to
do so.

\(3\) The Mission Director may also authorize emergency or irregular
travel and transportation in other situations, when in his/her opinion,
the circumstances warrant such action. The authorization shall include
the kind of leave to be used and appropriate restrictions as to time
away from post, transportation of personal and household effects, etc.

\(j\) [Home Leave Travel]{.underline}. To the extend that home leave has
been authorized as provided in the "Leave and Holidays" clause of this
contract, the cost of travel for home leave is reimbursable for travel
costs and travel allowances of travelers from the post of duty in the
Cooperating Country to place of residence in the United States (or other
location provided that the cost of such travel does not exceed the cost
of travel to the contractor's residence in the United States) and return
to the post of duty in the Cooperating Country. Reimbursement for travel
will be in accordance with the Uniform State/USAID/USIA Foreign Service
Travel Regulations, as from time to time amended, and will be limited to
the cost of travel by the most direct and expeditious route. Travel
allowances for travelers shall be in accordance with the rates
authorized in the Standardized Regulations as from time to time amended,
for not more than the travel time required by scheduled commercial air
carrier using the most expeditious route using economy class. One
stopover enroute for a period of not to exceed 24 hours is allowable
when the traveler uses economy class accommodations for a trip of 14
hours or more of scheduled duration. Such stopover shall not be
authorized when travel is by indirect route or is delayed for the
convenience of the traveler or the traveler uses other than economy
class. Per diem during such stopover shall be paid in accordance with
the Standardized Regulations.

\(k\) [Rest and Recuperation Travel]{.underline}. If approved in writing
by the Mission Director, the contractor and his/her dependents shall be
allowed rest and recuperation travel on the same basis as authorized
USAID direct-hire Mission employees and their dependents.

\(l\) [Transportation of Motor Vehicles, Personal Effects
and]{.underline}

[Household Goods]{.underline}.

\(1\) Transportation costs will be paid on the same basis as for USAID
direct-hire employees serving the same length tour of duty, as
authorized in the schedule. Transportation, including packing and
crating costs, will be paid for shipping from the point of origin in the
United States (or other location as approved by the Contracting Officer)
to post of duty in the Cooperating Country and return to point of origin
in the United States (or other location as approved by the Contracting
Officer) of one privately-owned vehicle for the contractor, personal
effects of the contractor and authorized dependents, and household goods
of the contractor not to exceed the limitations in effect for such
shipments for USAID direct-hire employees in accordance with the Foreign
Service Travel Regulations in effect at the time shipment is made. These
limitations may be obtained from the Contracting Officer.

\(2\) The cost of transporting motor vehicles and household goods shall
not exceed the cost of packing, crating, and transportation by surface
common carrier. In the event that the carrier does not require boxing or
crating of motor vehicles for shipment to the Cooperating Country, the
cost of boxing or crating is not reimbursable. The transportation of a
privately owned motor vehicle for a contractor may be authorized as a
replacement of the last such motor vehicle shipped under this contract
for such contractor when the Mission Director determines, in advance,
and so notifies the contractor in writing, that the replacement is
necessary for reasons not due to the negligence or malfeasance of the
contractor. The determination shall be made under the same rules and
regulations that apply to authorized Mission U.S. citizen direct-hire
employees.

\(m\) [Unaccompanied Baggage]{.underline}. Unaccompanied baggage is
considered to be those personal belongings needed by the traveler
immediately upon arrival of the contractor and dependents, and
consideration should be given to advance shipments of unaccompanied
baggage. The contractor will be reimbursed for costs of shipment of
unaccompanied baggage (in addition to the weight allowance for household
effects) not to exceed the limitations in effect for USAID direct-hire
employees in accordance with the Foreign Service Travel Regulations as
in effect when shipment is made. These limitations are available from
the Contracting Officer. This unaccompanied baggage may be shipped as
air freight by the most direct route between authorized points of origin
and destination regardless of the modes of travel used. This provision
is applicable to home leave travel when authorized by the terms of this
contract.

\(n\) [International Ocean Transportation]{.underline}.

(1)(i) Transportation of things. Where U.S. flag vessels are not
available, or their use would result in a significant delay, the
contractor may obtain a release from the requirement to use U.S. flag
vessels from the Transportation Division, Office of Procurement, U.S.
Agency for International Development, Washington, D.C. 20523-1419, or
the Mission Director, as appropriate, giving the basis for the request.

\(ii\) Transportation of persons. Where U.S. flag vessels are not
available, or their use would result in a significant delay, the
contractor may obtain a release from the requirement to use U.S. flag
vessels from the Contracting Officer or the Mission Director,

as appropriate.

\(2\) Transportation of foreign-made vehicles. Reimbursement of the
costs of transporting a foreign-made motor vehicle will be made

in accordance with the provisions of the Foreign Service Travel
Regulations.

\(3\) Reduced rates on U.S.-flag carriers are in effect for shipments of
household goods and personal effects of USAID contractors between
certain locations. These reduced rates are available provided the
shipper furnishes to the carrier at the time of the issuance of the Bill
of Lading documentary evidence that the shipment is for the account of
USAID. The Contracting Officer will, on request, furnish to the
contractor current information concerning the availability of a reduced
rate with respect to any proposed shipment. The contractor will not be
reimbursed for shipments of household goods or personal effects in
amounts in excess of the reduced rates, which are available in
accordance with the foregoing.

\(o\) [Storage of household effects]{.underline}. The cost of storage
charges (including packing, crating, and drayage costs) in the U.S. of
household goods of the contractor will be permitted in lieu of
transportation of all or any part of such goods to the Cooperating
Country under paragraph (l) above provided that the total amount of
effects shipped to the Cooperating Country or stored in the U.S. shall
not exceed the amount authorized for USAID direct-hire employees under
the Uniform Foreign Service Travel Regulations. These amounts are
available from the Contracting Officer.

11\. PAYMENT (Aug 1996)

\(a\) Once each month, or at more frequent intervals, if approved by the
paying office indicated on the Cover Page, the contractor may submit to
such office form SF 1034 "Public Voucher for Purchases and Services
Other Than Personal" (original) and SF 1034-A (three copies), or
whatever other form is locally required or accepted. Each voucher shall
be identified by the USAID contract number and properly executed in the
amount of dollars claimed during the period covered. The voucher forms
shall be supported by:

\(1\) The contractor's detailed invoice, in original and two copies,
indicating for each amount claimed the paragraph of the contract under
which payment is to be made, supported when applicable as follows:

\(i\) For compensation\--a statement showing period covered, days
worked, and days when contractor was in authorized travel, leave, or
stopover status for which compensation is claimed. All claims for
compensation will be accompanied by, or will incorporate, a
certification signed by the Project Officer covering days or hours
worked, or authorized travel or leave time for which compensation is
claimed.

\(ii\) For travel and transportation\--a statement of itinerary with
attached carrier's receipt and/or passenger's coupons, as appropriate.

\(iii\) For reimbursable expenses\--an itemized statement supported by
original receipts.

\(2\) The first voucher submitted shall account for, and liquidate the
unexpended balance of any funds advanced to the contractor.

\(b\) A final voucher shall be submitted by the contractor promptly
following completion of the duties under this contract but in no event
later than 120 days (or such longer period as the Contracting Officer
may in his/her discretion approve in writing) from the date of such
completion. The contractor's claim, which includes his/her final
settlement of compensation, shall not be paid until after the
performance of the duties required under the terms of this contract has
been approved by USAID. On receipt and approval of the voucher
designated by the contractor as the "final voucher" submitted on Form SF
1034 (original) and SF 1034-A (three copies), together with a refund
check for the balance remaining on hand of any funds which may have been
advanced to the contractor, the Government shall pay any amounts due and
owing the contractor.

\(c\) If approved by the paying office time and attendance may be
submitted for PSCs in the same manner as is approved for direct-hire
personnel.

12\. CONVERSION OF U.S. DOLLARS TO LOCAL CURRENCY (Dec 1985)

Upon arrival in the Cooperating Country, and from time to time as
appropriate, the contractor shall consult with the Mission Director or
his/her authorized representative who shall provide, in writing, the
policy the contractor shall follow in the conversion of U.S. dollars to
local currency. This may include, but not be limited to the conversion
of said currency through the cognizant U.S. Disbursing Officer, or
Mission Controller, as appropriate.

13\. POST OF ASSIGNMENT PRIVILEGES (July 1993)

Privileges such as the use of APO, PX's, commissaries and officers clubs
are established at posts abroad under agreements between the U.S. and
host governments. These facilities are intended for and usually limited
to members of the official U.S. establishment including the Embassy,
USAID Mission, U.S. Information Service and the Military. Normally, the
agreements do not permit these facilities to be made available to
non-official Americans. However, in those cases where facilities are
open to non-official Americans, they may be used.

14\. SECURITY REQUIREMENTS (June 1990)

\(a\) This entire provision shall apply to the extent that this contract
involves access to classified information ("Confidential", "Secret", or
"Top Secret") or access to administratively controlled information
("Limited Official Use"). Contractors that are not U.S. citizens shall
not have access to classified or administratively controlled
information.

\(b\) The contractor (1) shall be responsible for safeguarding all
classified or administratively controlled information in accordance with
appropriate instructions furnished by the USAID Office of Security
(IG/SEC), as referenced in paragraph (d) of this provision and shall not
supply, disclose, or otherwise permit access to classified information
or administratively controlled information to any unauthorized person;
(2) shall not make or permit to be made any reproductions of classified
information or administratively controlled information except with the
prior written authorization of the Contracting Officer or Mission
Director; (3) shall submit to the Contracting Officer, at such times as
the Contracting Officer may direct, an accounting of all reproductions
of classified or administratively controlled information; and (4) shall
not incorporate in any other project any matter which will disclose
classified and/or administratively controlled information except with
the prior written authorization of the Contracting Officer.

\(c\) The contractor shall follow the procedures for classifying,
marking, handling, transmitting, disseminating, storing, and destroying
official material in accordance with the regulations in the Foreign
Affairs Manual, Chapter 5 (5 FAM 900), a copy of which will be furnished
by the Contracting Officer or Mission Director.

\(d\) The contractor agrees to submit immediately to the Mission
Director or Contracting Officer a complete detailed report,
appropriately classified, of any information which the contractor may
have concerning existing or threatened espionage, sabotage, or
subversive activity.

\(e\) The Government agrees that, when necessary, it shall indicate by
security classification or administratively controlled designation, the
degree of importance to the national defense of information to be
furnished by the contractor to the Government or by the Government to
the contractor, and the Government shall give written notice of such
security classification or administratively controlled designation to
the contractor and of any subsequent changes thereof. The contractor is
authorized to rely on any letter or other written instrument signed by
the Contracting Officer changing a security classification or
administratively controlled designation of information.

\(f\) The contractor agrees to certify after completion of his/her
assignment under this contract that he/she has surrendered or disposed
of all classified and/or administratively controlled information in
his/her custody in accordance with applicable security instructions.

15\. CONTRACTOR-MISSION RELATIONSHIPS (Dec 1985)

\(a\) The contractor acknowledges that this contract is an important
part of the U.S. Foreign Assistance Program and agrees that his/her
duties will be carried out in such a manner as to be fully commensurate
with the responsibilities, which this entails.

\(b\) While in the Cooperating Country, the contractor is expected to
show respect for the conventions, customs, and institutions of the
Cooperating Country and not interfere in its political affairs.

\(c\) If the contractor's conduct is not in accordance with paragraph
(b) of this provision, the contract may be terminated under General
Provision 16 of this contract. The Contractor recognizes the right of
the U.S. Ambassador to direct his/her immediate removal from any country
when, in the discretion of the Ambassador, the interests of the United
States so require.

\(d\) The Mission Director is the chief representative of USAID in the
Cooperating Country. In this capacity, he/she is responsible for the
total USAID Program in the Cooperating Country including certain
administrative responsibilities set forth in this contract and for
advising USAID regarding the performance of the work under the contract
and its effect on the U.S. Foreign Assistance Program. The contractor
will be responsible for performing his/her duties in accordance with the
statement of duties called for by the contract. However, he/she shall be
under the general policy guidance of the Mission Director, and shall
keep the Mission Director or his/her designated representative currently
informed of the progress of the work under this contract.

16\. TERMINATION (Nov 1989)

(This is an approved deviation to be used in place of the clause
specified in FAR 52.249-12.)

\(a\) The Government may terminate performance of work under this
contract in whole or, from time to time, in part:

\(1\) For cause, which may be effected immediately after establishing
the facts warranting the termination, by giving written notice and a
statement of reasons to the contractor in the event (i) the Contractor
commits a breach or violation of any obligations herein contained, (ii)
a fraud was committed in obtaining this contract, or (iii) the
contractor is guilty (as determined by USAID) of misconduct in the
Cooperating Country. Upon such a termination, the contractor's right to
compensation shall cease when the period specified in such notice
expires or the last day on which the contractor performs services
hereunder, whichever is earlier. No costs of any kind incurred by the
contractor after the date such notice is delivered shall be reimbursed
hereunder except the cost of return transportation (not including travel
allowances), if approved by the Contracting Officer. If any costs
relating to the period subsequent to such date have been paid by USAID,
the contractor shall promptly refund to USAID any such prepayment as
directed by the Contracting Officer.

\(2\) For the convenience of USAID, by giving not less than 15 calendar
days advance written notice to the contractor. Upon such a termination,
contractor's right to compensation shall cease when the period specified
in such notice expires except that the contractor shall be entitled to
any unused vacation leave, return transportation costs and travel
allowances and transportation of unaccompanied baggage costs at the rate
specified in the contract and subject to the limitations which apply to
authorized travel status.

\(3\) For the convenience of USAID, when the contractor is unable to
complete performance of his/her services under the contract by reason of
sickness or physical or emotional incapacity based upon a certification
of such circumstances by a duly qualified doctor of medicine approved by
the Mission. The contract shall be deemed terminated upon delivery to
the Contractor of a termination notice. Upon such a termination, the
contractor shall not be entitled to compensation except to the extent of
any unused vacation or sick leave but shall be entitled to return
transportation, travel allowances, and unaccompanied baggage costs at
rates specified in the contract and subject to the limitations which
apply to authorized travel status.

\(b\) The contractor, with the written consent of the Contracting
Officer, may terminate this contract upon at least 15 days' written
notice to the Contracting Officer.

17\. RELEASE OF INFORMATION (Dec 1985)

All rights in data and reports shall become the property of the U.S.
Government. All information gathered under this contract by the
Contractor and all reports and recommendations hereunder shall be
treated as confidential by the Contractor and shall not, without the
prior written approval of the Contracting Officer, be made available to
any person, party, or government, other than USAID, except as otherwise
expressly provided in this contract.

18\. NOTICES (Dec 1985)

Any notice, given by any of the parties hereunder, shall be sufficient
only if in writing and delivered in person or sent by telegraph,
telegram, registered, or regular mail as follows:

To USAID:

Administrator

U.S. Agency for International Development,

Washington, D.C. 20523-0001,

Attention: Contracting Officer (name of the cognizant Contracting
Officer with a copy to the appropriate Mission Director).

To Contractor:

At his/her post of duty while in the Cooperating Country and at the
Contractor's address shown on the Cover Page of this contract or to such
other address as either of such parties shall designate by notice given
as herein required. Notices hereunder shall be effective in accordance
with this clause or on the effective date of the notice, whichever is
later.

19\. REPORTS (June 1987)

\(a\) The Contractor shall prepare and submit 2 copies of each technical
report required by the schedule of this contract to the Bureau for
Program and Policy Coordination, Center for Development Information and
Evaluation, Development Information Division (PPC/CDIE/DI). All
documents should be mailed to:

PPC/CDIE/DI, Acquisitions, Room 209, SA-18, U.S. Agency for
International Development, Washington, D.C. 20523-1802.

The title page of all reports forwarded to PPC/CDIE/DI pursuant to this
paragraph shall include a descriptive title, the author's Name(s),
contract number, project number and title, contractor's name, name of
the USAID project office, and the publication or insurance date of the
report.

\(b\) When preparing reports, the contractor shall refrain from using
elaborate art work, multicolor printing and expensive paper/

binding, unless it is specifically authorized in the Contract Schedule.
Wherever possible, pages should be printed on both sides using single
spaced type.

20\. USE OF POUCH FACILITIES (July 1993)

\(a\) Use of diplomatic pouch is controlled by the Department of State.
The Department of State has authorized the use of pouch facilities for
USAID contractors and their employees as a general policy, as detailed
in paragraphs (a)(1) through (a)(6) of this provision. However, the
final decision regarding use of pouch facilities rests with the Embassy
or USAID Mission. In consideration of the use of pouch facilities as
hereinafter stated, the Contractor agrees to indemnify and hold harmless
the Department of State and USAID for loss or damage occurring in pouch
transmission.

\(1\) Contractors are authorized use of the pouch for transmission and
receipt of up to a maximum of 0.90 kilogram/2 pounds per shipment of
correspondence and documents needed in the administration of foreign
assistance programs.

\(2\) U.S. citizen contractors are authorized use of the pouch for
personal mail up to a maximum of 0.45 kilogram/one pound per shipment
(but see (a)(3) below). Non-U.S. citizen Contractors are not permitted
use of the pouch for personal mail except to the extent that such use
may be authorized by the Chief of Mission.

\(3\) Merchandise, parcels, magazines, or newspapers are not considered
to be personal mail for purpose of this clause, and are not authorized
to be sent or received by pouch.

\(4\) Official and personal mail under paragraphs (a) (1) and (2) of
this provision, sent by pouch, should be addressed as follows:

Individual's Name (C), U.S. Agency for International Development,
Washington, D.C. 20523-0001.

\(5\) Mail sent via the diplomatic pouch may not be in violation of U.S.
Postal laws and may not contain material ineligible for pouch
transmission.

\(6\) Use of military postal facilities (APO/FPO) is authorized to U.S.
contractors on the same basis as approved for direct-hire employees at
the USAID Mission. Posts having access to APO/FPO facilities and using
such for diplomatic pouch dispatch, may, however, accept official and
personal mail for the pouch provided, of course, adequate postage is
affixed when onward transmission (mail to other than USAID/W) through
U.S. postal channels is required.

\(b\) The contractor shall be responsible for compliance with these
guidelines and limitations on use of pouch facilities.

\(c\) Specific additional guidance on use of pouch facilities in
accordance with this clause is available from the Post Communication
Center at the Embassy or USAID Mission.

21\. BIOGRAPHICAL DATA (June 1990)

\(a\) The contractor agrees to furnish biographical information to the
Contracting Officer on forms (SF 171 and 171As) provided for that
purpose.

\(b\) Emergency locator information. The contractor agrees to provide
the following information to the Mission Administrative Officer on
arrival in the host country regarding himself/herself and dependents:

\(1\) Contractor's full name, home address, and telephone number
including any after-hours emergency number(s).

\(2\) The name and number of the contract, and whether the individual is
the contractor or the contractor's dependent.

\(3\) The name, address, and home and office telephone number(s) of each
individual's next of kin.

\(4\) Any special instructions pertaining to emergency situations such
as power of attorney designees or alternate contact persons.

22\. U.S. RESIDENT HIRE PERSONAL SERVICES CONTRACTOR (June 1990)

A contractor meeting the definition of a U.S. Resident Hire PSC
contained in Section 12, General Provisions, Clause 1, Definitions,
shall be subject to U.S. Federal Income Tax, but shall not be eligible
for any fringe benefits (except contributions for FICA, health insurance
and life insurance), allowances, or differentials, including but not
limited to travel and transportation, medical, orientation, home leave,
etc., unless such individual can demonstrate to the satisfaction of the
Contracting Officer that he/she has received similar benefits/allowances
from their immediately previous employer in the Cooperating Country, or
the Mission Director determines that payment of such benefits would be
consistent with the Mission's policy and practice and would be in the
best interest of the U.S. Government.

23\. ORIENTATION AND LANGUAGE TRAINING (July 1993)

\(a\) Except as set forth in paragraph (b)(4) below, the Contractor
shall receive a maximum of 2 weeks USAID orientation before travel
overseas. The dates of orientation shall be selected by the Contractor
and approved by the Contracting Officer from the orientation schedule
provided by USAID.

\(b\) As either set forth in the Contract Schedule, or provided in
writing by the Contracting Officer, the following may be authorized
taking into consideration specific job requirements, contractor's prior
overseas experience, or unusual circumstances, in connection with
orientation of individual Contractors:

\(1\) Modified orientation,

\(2\) Language training,

\(3\) Orientation for Contractor's dependents at contract expense.

\(4\) Waiver of orientation for individual contractor.

\(c\) Transportation costs and travel allowances not to exceed one round
trip from the Contractor's residence to place of orientation and return
will be reimbursed, pursuant to Clause 10 of the General Provisions,
entitled "Travel and Transportation Expenses," if the orientation is
more than 80 kilometers/50 miles from the contractor's residence.
Allowable salary costs during the period of orientation are also
reimbursable.

24\. CONDITIONS FOR CONTRACTING PRIOR TO RECEIPT OF SECURITY CLEARANCE
(July 1993)

\(a\) U.S. Resident Hire PSC. The contractor may commence work prior to
the completion of the security clearance. However, until such time as
clearance is received, the contractor shall have no access to classified
or administratively controlled materials. Further, failure to obtain
clearance will constitute cause for contract termination in accordance
with paragraph (a)(2) of General Provision 16 of this contract.

\(b\) U.S. PSC\--Non-Resident Hire. The contractor may elect to commence
travel to post immediately to begin work prior to completion of the
security clearance. However, until such time as security clearance is
received, the contractor shall:

\(1\) Have no access to classified or administratively controlled
materials;

\(2\) Be authorized to travel to post himself/herself only; and

\(3\) Be authorized no entitlements other than those normally authorized
for short term (less than a year) employees at post. Even if the
contract is for one year or more, dependents may not accompany
contractor unless at his/her expense, and transportation/storage of
household/personal effects and motor vehicle will not be financed by
USAID prior to the receipt of the security clearance. Upon receipt of
clearance, the Contracting Officer will authorize reimbursement of any
such costs borne at contractor's expense prior to clearance provided
they are reasonable, allocable and allowable. If appropriate given the
length of time remaining, the Contracting Officer will authorize
dependent travel and shipment/storage of motor vehicle and effects.
Allowances which would not be provided to short term employees will be
authorized after clearance is received provided that the contractor is
otherwise entitled to such benefits. Failure to obtain the security
clearance will constitute cause for contract termination in accordance
with paragraph (a)(2) of General Provision 16 of this contract.

25\. MEDICAL EVACUATION (MEDEVAC) SERVICES (July 1993)

\(a\) The contractor agrees to obtain medevac service coverage for
himself/herself and his/her authorized dependents while performing
personal services abroad. 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).

\(b\) The following are exempted from the requirements in paragraph (a):

\(1\) Contractors and their dependents with a health insurance

program that includes sufficient medevac coverage as approved by the
Contracting Officer.

\(2\) Contractors 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.

\(c\) Information on the current medevac service provider, including
application procedures, is available from the Contracting Officer.

26\. GOVERNING LAW (Nov 1996)

This contract is established under the procurement authorities of the
United States Government and shall be interpreted in accordance with the
body of Federal Procurement Law in the United States. This contract is a
complete statement of the duties, compensation, benefits, leave, notice,
termination, and the like; therefore, the laws of the country of
performance with respect to labor and contract matters shall not apply
to either the carrying out of the obligations of the parties or to the
interpretation of this agreement.

13\. [FAR Clauses to be Incorporated in Full Text in
Personal]{.underline}

[Services Contracts]{.underline}.

The following FAR Clauses are always to be used along with the General
Provisions. They are required in full text.

1\. Covenant Against Contingent Fees 52.203-5

2\. Electronic Funds Transfer Payment Methods 52.232-28

3\. Disputes 52.233-1 (Alternate 1)

4\. Preference for U.S. Flag Air Carriers 52.247-63

14\. [FAR Clauses to be Incorporated by Reference in]{.underline}

[Personal Services Contracts]{.underline}

The following FAR Clauses are to be used along with the General
Provisions, and when appropriate, be incorporated in each personal
services contract by reference:

1\. Anti-Kickback Procedures 52.203-7

2\. Limitation on Payments to Influence Certain Federal Transactions
52.203-12

3\. Audit and Records\--Negotiation 52.215-2

4\. Privacy Act Notification 52.224-1

5\. Privacy Act 52.224-2

6\. Taxes\--Foreign Cost Reimbursement Contracts 52.229-8

7\. Interest 52.232-17

8\. Limitation of Cost 52.232-20

9\. Limitation of Funds 52.232-22

10\. Assignment of Claims 52.232-23

11\. Protection of Government Buildings, Equipment, and Vegetation
52.237-2

12\. Notice of Intent to Disallow Costs 52.242-1

13\. Inspection 52.246-5

14\. Limitation of Liability\--Services 52.246-25

######  APPENDIX E\--\[RESERVED\]

**APPENDIX F\--USE OF COLLABORATIVE ASSISTANCE METHOD**

**FOR TITLE XII ACTIVITIES**

1\. [Introduction]{.underline}

This Appendix provides a detailed description of the collaborative
assistance method of contracting. This is a specialized contracting
system which may be used for contracting with educational institutions
eligible under, and for activities authorized under, Title XII of the
Foreign Assistance Act of 1961, as amended, under the circumstances
described in AIDAR 715.613-71."

2\. [Purpose]{.underline}

The collaborative assistance system is designed to:

\(a\) Increase the joint implementation authority and responsibility of
the contractor and the LDC;

\(b\) Encourage more effective collaboration between all participating
parties (USAID, host country, and contractor) at important stages,
including the design stage of a technical assistance project."

3\. [Policy]{.underline}

The collaborative assistance approach represents an alternative method
for long-term technical assistance which involves professional
collaboration with eligible Title XII institutions and LDC counterparts
for a problem-solving type activity to develop new institutional forms
and capabilities, to devise operating systems and policies, and to
conduct joint research and development \-- including training. In such
an activity, the difficulty in defining, in advance, precise and
objectively verifiable contractor inputs and long-term project content
as a basis for payment usually requires a flexible approach to project
design, contracting, and project implementation. Such flexibility is
also essential to the collaborative style, which is responsive to LDC
desires in problem areas of great complexity and varying uncertainty.
Other types of technical assistance, which are usually shorter in term
are amenable to more precise definition in advance, or involve closely
defined and relatively standardized services, or are otherwise more
analogous to commodity resource transfers, may be suitable for other
contracting methods, e.g., certain forms of institution building,
on-the-job training, resource surveys, etc. The collaborative assistance
method is an approved method for providing technical assistance when
used in accordance with the circumstances outlined above, and with the
guidelines set forth in paragraph 4, below.

4\. [Implementation Procedures]{.underline}

\(a\) [Introduction]{.underline}. This paragraph 4, provides background
information, guidelines and procedures to effect the implementation of
the policy set forth in paragraph 3 of this section.

\(b\) [Conditions and practices]{.underline}. In order for this policy
to work effectively even when the proposed activity fits the criteria
described under Policy, there must also be:

\(1\) Acceptance of the notion that the host country, in consultation
with the contractor, is in the best position to make tactical,
day-to-day decisions on project inputs within agreed-upon limitations
and output expectations;

\(2\) Sufficient trust and respect between the Agency and the contractor
to allow this flexible implementation authority;

\(3\) A direct-hire project monitor with appropriate background to be
knowledgeable of progress and to assist in an advisory and facilitative
capacity, both during and between periodic reviews. In addition, the
following important conditions must be met:

\(i\) Adequate pre-project communication between, and identification of
assistance required by, the host government and USAID;

\(ii\) Full joint planning and improved project design ("Joint" as used
herein refers to the primary parties, i.e., the collaborating
institutions, as well as the host government and USAID. In some
instances, it can also include other donors.);

\(iii\) Careful contractor selection, i.e., matching of the contractor's
technical and managerial capabilities to the anticipated requirements of
the overseas activity;

\(iv\) Establishment of relationships between host country, USAID and
contractor staff to include host country leadership, flexible
implementation authority, and effective management by the contractor;

\(v\) Improved joint project evaluation, feedback, and replanning; and

\(vi\) Simplified administrative procedures and greater reliance on
in-country logistical support.

\(c\) [Project Stages and Contractor Involvement]{.underline}. In the
long-term technical assistance projects as described above, there are
four discrete but sometimes overlapping decision stages which take
place\--with the principal contractor usually involved in the last
three.

\(1\) [Problem analysis and project identification]{.underline}. After
the host government has indicated a desire for U.S. collaboration on a
particular problem and the USAID field mission has determined that the
proposed activity is consistent with its program goals and priorities,
considerable effort is usually necessary to refine further the project
purpose and type of assistance required and provide a basis for
contractor selection. This is a crucial step and is focused on results
sought \-- on what the prospective contractor is expected to produce in
relation to resources to be used and to project purpose. It should
result in a clear understanding of what the LDC wants, and an overall
plan which includes agreement on specific objectives or outputs,
acceptable types of activities and inputs and an initial budget \--
resulting in project documentation. At this step, USAID makes decisions
it cannot delegate on what it will support and at what cost. If needed
to supplement its direct-hire expertise, USAID can use outside
consultants for analysis and advice but retains the ultimate decision
for itself in collaboration with, but independent of, the requesting
host government. (Normally, the proposed contractor for project
definition and subsequent implementation should not have been involved
in the problem analysis and project identification stage as a consultant
to either the host country government, host institution, or USAID. If a
potential contractor has been so involved, particular care must be taken
to prevent actual or apparent organizational conflicts of interest in
the procurement that follows. This could require at a minimum, a careful
assessment and complete documentation of reasons for selection.)

Normally, there will need to be some mutual interaction between the
overall planning stage outlined here and the detailed planning and
design work which follows in the next phase. There will usually be some
overlap, with preliminary decisions in this stage providing a basis for
selection of implementing agents for stage (2) which in turn proceeds
through some preliminary planning to guide completion of stage (1) as a
basis for long-term contracting.

\(2\) [Project definition]{.underline}. At this stage, having selected
the implementing agent, the U.S. and LDC organizations which will be
collaborating in carrying out the project are encouraged to work out, to
their mutual satisfaction, the particulars of what to do and how to do
it (i.e., detailed project design) within the context of LDC leadership
and responsibility and the general agreements and budget reached in
stage (1). The emphasis here is on the technical approach to be utilized
and the scheduling and management of project inputs. This may involve a
short-term reconnaissance and/or an extensive period of detailed joint
planning and feeling out of what is feasible during a preliminary
operating phase of the project, possibly lasting as much as a year or
more. This stage recognizes the importance, for the problem- solving or
ground breaking types of technical assistance, of involving the U.S. and
LDC implementing organizations together as soon as the detailed design
work begins. USAID's role here is to facilitate, not direct, the joint
planning, assure consistency with prior agreements or concur in changes,
affirm that the implementing parties have agreed on a reasonable project
design, and prepare or cause to be prepared the documentation required
for stage (3), including any amendments that might be required to the
project documentation. If and when a decision is made by the host
government and USAID to proceed into the operating phase with the same
contractor, the U.S. intermediary should be treated as a cooperating
partner in the negotiation of the subsequent long-term operating
agreement(s) with the host government, host institution and USAID.

\(3\) [Implementation]{.underline}. The results of the approach outlined
in the stage above should include, in addition to a better understanding
and more meaningful commitment by all parties, the following specific
products:

\(i\) A jointly developed life-of-project design which reflects the
commitment of all parties and includes clear statements of purpose,
principal outputs, eligible types of activity and expenditure limits,
critical assumptions, and major progress indicators;

\(ii\) A work plan and input schedule for the first two years or at
least as long as the expenditure period for the next obligation of
project funds;

\(iii\) Provisions for any administrative support, special services or
other inputs by the host country, contractor, and/or USAID; and

\(iv\) A plan for periodic joint evaluation and review or progress and
subsequent work plans, normally annually, with the participation of all
parties.

Appropriate elements of these agreements and understandings are now
embodied in a contract for project implementation, as described in
paragraph (d)(3)(i) of the section on Contracting Implications. This
contract allows the U.S. intermediary to apply its judgment, reflecting
close collaboration with its LDC colleagues, in adjusting the flow of
USAID-financed inputs and in making other operational decisions with a
minimum of requirements for prior USAID approvals or contract amendments
as long as the contractor stays within the bounds of the approved
overall plan and budget. In this phase, USAID will give technical
assistance contractors the authority and responsibility for using their
specialized expertise to the fullest extent in the scheduling and
managing of project inputs.

\(4\) [Monitoring, joint evaluation and replanning]{.underline}. With
increased flexibility and responsibility for implementation placed with
the technical assistance contractor, the host government, and/or
institutional collaborator, improved and timely progress reporting and
periodic, joint, and structured reviews of results and evolving plans
are imperative as a basis for monitoring and evaluating contractor
performance, revalidating or adjusting project design, and for
determining future funding levels and commitments.

Both the contractor's annual report and the joint review should be
structured within the framework of purpose, outputs, performance
indicators, etc., originally established in the project identification
phase \-- as modified by detailed project design \-- and reflected in
the Project Agreement and other pertinent documentation. The field
review will normally serve as the occasion for discussing changes in or
additions to previously agreed-to work plans as well as proposing
changes in purpose, types of activities authorized and budgets which
require contract amendment. Obviously, the appropriate host government,
host institution, and senior contractor officials should be thoroughly
involved in the process, which will have to be adapted to the conditions
within specific projects and countries. An important USAID
responsibility is to assure that there is appropriate host country
participation in developing and improving project plans prior to new
obligations of funds. The special requirements and responsibilities of
the various parties shall also be reflected in the project agreement and
contract terms and in guidelines on the content of annual reports,
evaluation procedures, etc.

Standard checking on services actually delivered as a basis for
reimbursement will be continued including appropriate audit of
expenditures.

\(d\) [Contracting implications]{.underline}. The principal elements of
change in present contracting practices, as detailed below, are earlier
selection and involvement of the prime contractor, contracting by major
stages of project design and operations, minimizing the need for
pre-contract negotiations and contract amendments and USAID approvals,
and providing technical assistance contractors with the authority and
responsibility needed to manage implementation within the approved
program bounds.

\(1\) [Selection]{.underline}. The early involvement of the contractor
in the definition stage of a long-term technical assistance project,
after USAID decides what it wants to undertake in stage (1), does not
alter the Agency's responsibility to select its contractors carefully
and in full compliance with appropriate contracting regulations and
selection procedures. What is required here is that contractor selection
be carried out at an earlier stage than has sometimes been the Agency
practice in the past or with other types of contracts and in
anticipation that the contractor, assuming adequate performance, will
participate in all subsequent phases until final completion.

\(2\) [Contracting stages]{.underline}. In contracting, the initial
design stage should be separated from the longer term implementation
stage without any USAID commitment to undertake the second until it has
exercised its independent judgment based on the product of the first
plus any outside expert appraisal it and the host country want to use.

The long-term implementation stage itself may be further subdivided into
contract periods which permit time between predetermined events for
analysis, determination of new project requirements, and evaluation of
performance prior to initiating the next phase by contract
amendment/extension. If, for any reason, such an examination does not
appear to warrant project continuation, then termination of the project
and/or contract would be the next step.

\(3\) [Flexible implementation authority]{.underline}. While good
project design will eliminate or diminish many operational problems, the
very nature of long-term technical assistance requires flexible
implementation within agreed purposes, ultimate outputs, types of
activity and available financing. With these key variables for USAID
management control established, contracts should be written so as to
minimize the need for amendments and USAID approval of changes in input
particulars. This can be facilitated, both for the USAID, host country,
institution, and the contractor by:

\(i\) [Retention of operational plan in contract and removal of work
plan]{.underline}. The contract narrative will contain the life-of
the-project Operational Plan, consistent with the project design as
developed in stage (2) and reflected in the project documentation (and
subsequent amendments thereto). The Operational Plan includes a
statement of the purpose to be achieved, the outputs to be produced by
the contractor and the types of activities to be undertaken, the more
significant indicators of progress, a general description of the type of
inputs that are authorized and intended to be provided during the life
of the project, and the overall budget.

In order to allow adjustments at the implementation level without going
through the contract amendment process, the detailed but short-term work
plan containing specific descriptions and scheduling of all inputs such
as numbers and types of staff, participants, commodities, etc., and
specific activities, will not be a part of the contract. It is a working
document to be modified in the field when the situation demands. The
latest version will be available as a supporting document to justify
proposed new obligation levels. Normally, the work plan and derived
budget will cover a rolling two year period, i.e., each year another
yearly increment is added after review and approval.

\(ii\) [Budget flexibility]{.underline}. To support this implementation
flexibility, contract budget or fiscal controls will be shifted from
fixed line items for each input category to program categories,
permitting the technical assistance contractor to adjust amounts and
timing to achieve previously approved types of activity. This same type
of flexibility should apply to any local currency supplied for project
operations and/or contractor staff support. While an essential corollary
to eliminating the work plan from the contract, this is not a unique
procedure under cost reimbursement type contracts when the contractor
has demonstrated adequate management capability. (iii) [Negotiation of
advance understandings]{.underline}. To permit university and
international research center contractors to manage their activities in
accordance with their own policies and procedures and thereby sharpen
their management responsibility while achieving substantial savings in
time and reduced documentation, USAID may negotiate advance
understandings with its technical assistance contractors on dollar costs
and administrative procedures that would be included by reference in its
subsequent contracts. Upon receipt of a request from the contractor that
their policies be reviewed and approved for usage in their contract in
lieu of the standard terms and conditions, OP/PS/OCC, USAID/W will
initiate negotiations of such policies in an expeditious manner. The
approved policies will be used in all relevant relations involving the
Agency and respective contractors in lieu of traditional contract
standard provisions, whenever this may be appropriate. This does not
apply to local currency costs and host government procedures which must
be negotiated in each case.

The purpose of the practices listed above is not only to give a
qualified contractor the authority to adjust the composition and timing
of inputs but to assign to it clear responsibility for managing such
resources, as the evolving circumstances require, to achieve the
agreed-upon outputs on a cost efficient basis. It should also reduce the
delay and paperwork involved in frequent but minor contract amendments,
and approvals. For the agency as a whole, both in the Mission and in
USAID/W, these have involved a large workload and cost.

\(e\) [Role of USAID]{.underline}. Nothing in this appendix is intended
to delegate, diminish or otherwise modify USAID's final responsibility
for the prudent management of public funds and its own programs. Rather,
in withdrawing from the day-to-day involvement in and responsibility for
the management of adjustment of the flow of inputs during the
implementation, the best use of limited agency staff and time can be
devoted to protecting the public interest in gaining maximum results
from the funds appropriated for technical assistance by:

\(1\) Seeking optimum identification in terms of LDC priorities and U.S.
capabilities;

\(2\) Mobilizing and selecting the best U.S. professional talent to
design and carry out the project;

\(3\) Monitoring what is happening to assure adequacy of processes, get
a feel of results, assure actual delivery of inputs being financed;

\(4\) Assuring that the attention of USAID's implementation agents and
LDC colleagues stay well focused on project purpose and results to be
achieved (outputs) and the relation to these of what is being done and
actual results;

\(5\) Providing intermediaries adequate authority and responsibility to
adjust inputs promptly and sensitively to the evolving project
situations.

Attention to these considerations, and to achievements of the
pre-implementation conditions prescribed above, should greatly increase
the chances for successful project completion and impact on a cost
effective basis, which is the final measurement of prudent management.

Attachment to Appendix F:

Guidelines for Requests for

Expressions of Interest

A. [Length and Level of Detail]{.underline}

A Request for Expression of Interest (REI) should include more than just
a short letter expressing interest, but should not be in the detail of a
technical proposal (RFTP). The REI is not the only source of information
that can or should be used for selection, but at least a minimum level
of information should be contained in each document. A ten page paper
that responds to the selection criteria included in every REI should be
sufficient for evaluation purposes. The selection criteria should
specify the technical inputs required for successful execution of the
project and normally require a response in three general areas:

1\. A description of the institution's capability to Address the problem
described in the REI.

2\. Any related experience, whether in the country or region or in the
problem area.

3\. A demonstrable commitment of the institution to support the project.

The responses should address the capability, experience, and commitment
to the particular project.

B. [Specific Personnel Information]{.underline}

The response should specify within the areas set out in the selection
criteria the following planning and personnel factors.

1\. The design team plan and the scope of work for each member.

2\. A list of candidates for the design team and their credentials.

3\. A list of possible candidates for long-term assignment to the
project. (Since there has been no project design, the specific technical
assistance slots and technical responsibilities are vague. But it is
expected that at least half of the personnel needs can be estimated
early in the project. The institution should make its best guess for the
team and present to the Agency the persons or types of persons with whom
they are likely to contract.)

C. [Multiple Institution Submissions]{.underline}

Joint effort on the part of several institutions is encouraged when
appropriate. A single institution may submit an expression of interest
for part of the project without knowledge of other collaborators or it
may submit information in response to A and B of this attachment as part
of a suggested collection of institutions. In either case, a proposed
plan for cooperation is necessary.

However, such joint efforts must specify the division of
responsibilities for the planning and personnel factors indicated in B
of this attachment. Often USAID will identify the need for cooperation
and suggest such an effort in the REI. Even if USAID does not suggest
collaboration, joint efforts with a description of the cooperation would
be an appropriate way to respond to an REI.

######  APPENDICES G AND H \-- \[RESERVED\]

######  APPENDIX I\--USAID's ACADEMIC PUBLICATION POLICY

1\. [Statement of Policy]{.underline}

This is a statement of USAID policy on publication, or release to
parties other than those specifically authorized, of unclassified
materials gathered or developed under contracts with academic
institutions.

2\. [Underlying Principles]{.underline}

USAID favors and encourages the publication of scholarly research as
well as the maximum availability, distribution, and use of knowledge
developed in its program.

This policy statement does not deal with material that is classified for
security reasons. It does deal with considerations of national interest,
not of sufficient gravity to warrant security classification, but
serious enough to affect adversely the conduct of U.S. assistance
programs. Consequently, in addition to the requirements of courtesy,
propriety, and confidence which normally guide scholars in their work,
there should also be consideration of the potential repercussions of
publication on the successful execution of development and other
cooperative programs in which the United States and foreign countries
are involved.

3\. [Operational Definitions]{.underline}

The Agency draws a distinction between two kinds of manuscripts, which a
scholar may wish to publish:

\(a\) A report which is prepared and delivered to the Agency under the
terms of the contract (a "contract manuscript"); and

\(b\) An article or book based upon experience and information gained
under an USAID contract but not prepared or delivered under the contract
(a "non-contract manuscript").

There are two kinds of actions, to be specified in the contract, which
the Agency can take upon notification of a contractor's desire to
publish:

\(a\) Comment only, under which USAID and the foreign government
involved may review the manuscript, and have their comments considered
seriously by the contractor prior to publication; and

\(b\) Authorization for release, which USAID may withhold if
reconciliation between the national interest and the author's interest
is impossible.

4\. [Policy Statements]{.underline}

\(a\) USAID, as a general rule, will not require an academic institution
to obtain permission to publish the written work produced under a
contract. It will ask for the opportunity to review the manuscript for
comment only, prior to publication.

In the case of a contract manuscript, USAID reserves the right to
disclaim endorsement of the opinions expressed; if it is a non-contract
manuscript, USAID reserves the right to dissociate itself from
sponsorship or publication.

\(b\) On the other hand, USAID may reserve the right of authorization
for release in those exceptional cases where conditions exist making it
reasonably foreseeable, in light of the contract's scope of work and the
manner and place of performance, that the written work to be prepared
and delivered under the contract may have adverse repercussions on the
relations and programs of the United States. Where this right is
reserved, it must be so specified in the contract. In determining where
to reserve such right, USAID will consider all relevant factors,
including:

\(1\) The extent to which prompt and full performance of the contract
will require access, facilitated by reason of the contract, to
information not generally available to scholars;

\(2\) The extent to which the work involves matters of political concern
to foreign countries, particularly where any substantial part of the
work is to be performed therein;

\(3\) The extent to which, by reason of USAID's close involvement and
cooperation in the performance of the contract, the work product may be
so identified with USAID itself as to prevent effective disclaimer of
USAID endorsement thereof;

\(4\) The extent to which the objective of the contract is to provide
advice to USAID or to a foreign government of immediate operational
significance in the conduct of the USAID program or the implementation
of governmental programs in the host country;

\(5\) The desires of the host country.

5\. [Implementation]{.underline}

The successful implementation of this policy on publication rests on a
thorough understanding and acceptance of these principles by USAID and
the prospective contractor. The actual publications provision for a
particular contract, then, would be so worded as to reflect the
agreement reached in the contract negotiations.

USAID's concern with non-contract manuscripts is related to the
identification of a manuscript with the U.S. Government. This concern
will be modified by the passage of time following termination of the
contract.

In the normal case of prepublication review for USAID comment, the
institution will submit a copy of the manuscript not later than the date
of submission to the publisher. This gives the Agency time to comment if
it is deemed appropriate. However, in the case of review for
authorization, timely notification of USAID's response will be given,
consistent with the size of the manuscript and the number and location
of the parties involved.

The Agency will make every effort to expedite this review procedure in
accordance with the underlying principle described at the beginning of
this policy statement.

**Appendix J\--Direct USAID Contracts With a Cooperating**

**Country National and With a Third Country National for**

**Personal Services Abroad**

1\. [General]{.underline}

\(a\) [Purpose]{.underline}. This appendix sets forth the authority,
policy, and procedures under which USAID contracts with cooperating
country nationals or third country nationals for personal services
abroad.

\(b\) [Definitions]{.underline}. For the purpose of this appendix:

\(1\) "Personal services contract" ("PSC") means a contract that, by its
express terms or as administered, make the contractor personnel appear,
in effect, Government employees (see FAR 37.104).

\(2\) "Employer-employee relationship" means an employment relationship
under a service contract with an individual, which occurs when, as a
result of (i) the contract's terms or (ii) the manner of its
administration during performance, the contractor is subject to the
relatively continuous supervision and control of a Government officer or
employee.

\(3\) "Non-personal services contract" means a contract under which the
personnel rendering the services are not subject either by the
contract's terms or by the manner of its administration, to the
supervision and control usually prevailing in relationships between the
Government and its employees.

\(4\) "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, or the manner in which it is to
be performed, control the days of the week or hours of the day in which
it is to be performed, or the location of performance.

\(5\) "Contractor" means a cooperating country national or a third
country national who has entered into a contract pursuant to this
appendix.

\(6\) "Cooperating country" means the country in which the employing
USAID Mission is located.

\(7\) "Cooperating country national" ("CCN") means an individual who is
a cooperating country citizen or a non-cooperating country citizen
lawfully admitted for permanent residence in the cooperating country.

\(8\) "Third Country National" ("TCN") means an individual

\(i\) who is neither a citizen nor a permanent legal resident alien of
the United States nor of the country to which assigned for duty, and

\(ii\) who is eligible for return to his/her home country or country of
recruitment at U.S. Government expense \[see Section 12, General
Provision 9 paragraph (n)\].

2\. [Legal Basis]{.underline}

\(a\) Section 635(b) of the Foreign Assistance Act of 1961, as amended,
hereinafter referred to as the "FAA", provides the Agency's contracting
authority.

\(b\) Section 636(a)(3) of the FAA 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\\

\\1\\ The Civil Service Commission is now the Federal Office of

Personnel Management.

3\. [Applicability]{.underline}

\(a\) This appendix applies to all personal services contracts with CCNs
or TCNs to provide assistance abroad under Section 636(a)(3) of the FAA.

\(b\) This appendix does not apply to:

\(1\) Contracts for non-personal services with TCNs or CCNs; such
contracts are covered by the basic text of the FAR and AIDAR.

\(2\) Personal services contracts with U.S. citizens or U.S. resident
aliens for personal services abroad; such contracts are covered by
Appendix D of this chapter.

\(3\) Appointments of experts and consultants as USAID direct-hire
employees; such appointments are covered by USAID Handbook 25,
Employment and Promotion or superseding Chapters of the Automated
Directive System (ADS).

4\. [Policy]{.underline}

\(a\) [General]{.underline}. USAID 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 a CCN or a TCN for personal services abroad.

\(1\) Program funds. Under the authority of Section 636(h) of the FAA,
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. Pursuant to USAID budget policy, OE
funded salaries and other recurrent cost items may be forward funded for
a period of up to three (3) months beyond the fiscal year in which these
funds were obligated. Non-recurring cost items may be forward funded for
periods not to exceed twenty-four (24) months where

necessary and appropriate to accomplishment of the work.\\2\\

\(b\) [Limitations on Personal Services Contracts]{.underline}.

\(1\) 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.

\(3\) Notwithstanding any other provision of USAID directives,
regulations or delegations, Cooperating Country or Third Country
Nationals may be delegated or assigned any authority, duty or
responsibility, delegated or assigned U.S. citizen direct-hire employees
(USDH employees) except that:

a\. They may not supervise USDH employees of USAID or other U.S.
Government agencies. They may supervise USPSCs and non-U.S. citizen
employees.

b\. They may not be designated a Contracting Officer or delegated
authority to sign obligating or sub-obligating documents.

c\. They may represent the agency, except that communications that
reflect a final policy, planning or budget decision of the agency must
be cleared by a USDH employee.

d\. They may participate in personnel selection matters but may not be
delegated authority to make a final decision on personnel selection.

e\. Services, which involve security, classified material.

\\2\\ If there is a need, these contracts may be written for 5

years but only funded as outlined above.

\(4\) [Exceptions]{.underline}. Exceptions to the limitations in (b)(3)
must be approved by the Assistant Administrator for Management (AA/M).

\(c\) [Conditions of Employment]{.underline}.

\(1\) [General]{.underline}. For the purpose of any law administered by
the U.S. Office of Personnel Management, USAID PSC contractors are not
to be regarded as employees of the U.S. Government, are not included
under any retirement or pension program of the U.S. Government, and are
not eligible for the Incentive Awards Program covered by Uniform
State/USAID/USIA regulations. Each USAID Mission is expected to
participate in the Joint Special Embassy Incentive Awards Program. The
program is administered by a joint committee which establishes
procedures for submission, review and approval of proposed awards. Other
than these exceptions, CCNs and TCNs who are hired for work in a
cooperating country under PSCs generally will be extended the same
benefits and be subject to the same restrictions as Foreign Service
Nationals (FSNs) employed as direct-hires by the USAID Mission.

\(2\) [Compensation]{.underline}.

\(i\) It is USAID's general policy (see AIDAR 722.170) that PSC
compensation may not, without the approval of the Mission Director or
Assistant Administrator, exceed the prevailing compensation paid to
personnel performing comparable work in the cooperating country.
Compensation for TCN or CCN personal services contractors set in
accordance with the provisions of 4c(2)(ii) below satisfies this
requirement.

\(ii\) In accordance with Section 408(a)(1) of the Foreign Service Act
of 1980, a local compensation plan forms the basis for all compensation
payments to FSNs which includes CCNs and TCNs. The plan is each post's
official system of position classification and pay, consisting of the
local salary schedule which includes salary rates, statements
authorizing fringe benefit payments, and other pertinent facets of
compensation for TCNs and CCNs, and the local position classification
system as reflected in the Local Employee Position Classification
Handbook (LEPCH) or equivalent in effect at the Mission. Compensation
for PSCs will be in accordance with the local compensation plan, to the
extent that it covers employees of the type or category being employed,
unless the Mission Director determines otherwise. If the Mission
Director determines that compensation in accordance with the local plan
would be inappropriate in a particular instance, then compensation will
be set in accordance with (in order of preference):

\(A\) Any other Mission policies on foreign national employee
compensation; or

\(B\) Paragraphs 4(c) (d), (e), (g), (h), and (i) of Appendix D. When
compensation is set in accordance with this exception, the record shall
be documented in writing with a justification prepared by the requesting
office and approved by the Mission Director.

\(iii\) The earning of leave (annual and sick), allowances and
differential (if applicable), salaries and all other related benefits
cannot be enumerated in this Appendix as they vary from Mission to
Mission and are based upon the compensation plan for each.

\(iv\) Unless otherwise authorized, the currency in which compensation
is paid to contractors shall be in accordance with the prevailing local
compensation practice of the post.

\(v\) CCN and TCN contractors are eligible for allowances and
differential on the same basis as direct-hire FSN employees under the
post compensation plan.

\(vi\) A USAID PSC who is a spouse of a current or retired U.S. Civil
Service, U.S. Foreign Service, or U.S. military service member, and who
is covered by their spouse's government health or life insurance policy,
is ineligible for a contribution towards the costs of annual health and
life insurance.

\(vii\) Retired CCNs and TCNs may be awarded personal services contracts
without any reduction in or offset against their Government annuity.

\(3\) [Incentives Awards]{.underline}.

\(i\) All Cooperating Country Nationals direct-hire and Personal
Services Contractors (PSCs) and Third Country Nationals (PSCs) of the
Foreign Affairs Community are eligible for the Joint Special Embassy
Incentive Awards Program.

\(ii\) Meritorious Step Increases for USAID FSN PSCs may be authorized
provided the granting of such increases is the general practice locally.

\(iii\) The Joint Country Awards Committee administers each post's
(Embassy) award program, including establishment of procedures for
submission, review and approval of proposed awards.

\(4\) [Training]{.underline}. CCN and TCN PSCs are eligible for most of
the training courses offered in the Training Course Schedule. However,
applications will be processed on a case-by-case basis and are required
to be approved by the Contracting Officer.

5\. [Soliciting for Personal Services Contracts]{.underline}

\(a\) [Technical Officer's Responsibilities]{.underline}. The Technical
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. The procurement 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;

\(4\) A certification from the officer in the Mission responsible for
the LEPCH or equivalent that the position has been reviewed and is
properly classified as to a title, series and grade in accordance with
the LEPCH. If the position does not fall within the LEPCH or equivalent
system, and estimate of compensation based on subparagraphs 4(c)(2)(ii)
(A) or (B) of this Appendix after consultations or in coordination with
the contract officer or executive officer;

\(5\) A list of Government or host country furnished items (e.g.,
housing).

\(b\) [Contracting Officer's Responsibilities]{.underline}.

\(1\) The Contracting Officer will prepare the solicitation for personal
services which shall contain:

\(i\) Three sets of certified biographical data and salary history.
(Upon receipt, one copy of the above information 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,
and General Provisions as well as the FAR Clause to be included in full
text and a list of those to be incorporated by reference; and

\(iv\) A copy of General Notice entitled "Employee Review of the New
Standards of Conduct" dated October 30, 1992.

\(2\) The Contracting Officer shall comply with the limitations of AIDAR
706.302-70(c) as detailed in paragraph 5(c) below.

\(c\) [Competition]{.underline}.

\(1\) Under AIDAR 706.302-70(b)(1), Personal Services Contracts are
exempt from the requirements for full and open competition with two
limitations that must be observed by Contracting Officers:

\(i\) Offers are to be requested from as many potential offerors as is
practicable under the circumstances, and

\(ii\) a justification supporting less than full and open competition
must be prepared in accordance with FAR 6.303.

\(2\) A class justification was approved by the USAID Procurement
Executive to satisfy the requirements of AIDAR 706.302-70(c)(2) for a
justification in accordance with FAR 6.303. Use of this class
justification for Personal Services Contracts with Cooperating Country
Nationals and Third Country Nationals is subject to the following
conditions:

\(i\) New contracts are publicized consistent with Mission/Embassy
practice on announcement of direct hire FSN positions. Renewals or
extensions with the same individual for continuing service do not need
to be publicized.

\(ii\) A copy of the class justification (which was distributed to all
USAID Contracting Officers via Contract Information Bulletin) must be
included in the contract file, together with a written statement, signed
by the Contracting Officer, that the contract is being awarded pursuant
to AIDAR 706.302-70(b)(1); that the conditions for use of this class
justification have been met; and that the cost of the contract is fair
and reasonable. If the conditions in paragraphs (2)(i) and (ii) are not
followed, the Contracting Officer must prepare a separate justification
as required under AIDAR 706.302-70(c)(2).

\(3\) Since the award of a personal services contract is based on
technical qualifications, not price, and since the biographical data and
salary history are used to solicit for such contracts, FAR Subparts 15.4
and 15.5 are inappropriate and shall not be used. Instead, the
solicitation and selection procedures outlined in this Appendix shall
govern.

6\. [Negotiating a Personal Services Contract]{.underline}

Negotiating a Personal Services Contract is significantly different from
negotiating a non-personal services contract because it establishes an
employer-employee relationship; therefore, the selection and
negotiations procedures are more akin to the personal selection
procedures.

\(a\) [Technical Officer's Responsibilities]{.underline}. The Technical
Officer shall be responsible for reviewing and evaluating the
applications received in response to the solicitation issued by the
Contracting Officer. If deemed appropriate, interviews may be conducted
with the applicants before the final selection is submitted to the
Contracting Officer.

\(b\) [Contracting Officer's Responsibilities]{.underline}.

\(1\) The Contracting Officer shall forward a copy of biographical data
and salary history received under the solicitation to the Technical
Officer for evaluation.

\(2\) On receipt of the Technical Officer's recommendation, the
Contracting Officer shall conduct negotiations with the recommended
applicant. The terms and conditions of the contract will normally be in
accordance with the local compensation plan which forms the basis for
all compensation on payments paid to FSNs which includes CCNs and TCNs.

\(3\) The Contracting Officer shall use the certified salary history on
the certified statement of biographical data and salary history as the
basis for salary negotiations, along with the Technical Officer's cost
estimate.

\(4\) The Contracting Officer will obtain necessary data for a security
and suitability clearance to the extent required by USAID Handbook 6,
Security or superseding ADS Chapters.

7\. [Executing a Personal Services Contract]{.underline}

Contracting activities, whether USAID/W or Mission, may execute Personal
Services Contracts, provided that the amount of the contract does not
exceed the contracting authority that has been redelegated to them. See
AIDAR 701.601. In executing a personal service contract, the Contracting
Officer is responsible for insuring that:

\(a\) The proposed contract is within his/her delegated authority;

\(b\) A written detailed statement of duties covering the proposed
contract has been received;

\(c\) The proposed scope of work is contractible, contains a statement
of minimum qualifications from the technical office requesting the
services, and is suitable for a personal services contract in that:

\(1\) Performance of the proposed work requires or is best suited for an
employer-employee relationship, and is thus not suited to the use of a
non-personal services contract;

\(2\) The scope of work does not require performance of any function
normally reserved for direct-hire Federal employees (under paragraph
4(b) of this Appendix); and

\(3\) There is no apparent conflict of interest involved (if the
Contracting Officer believes that a conflict of interest may exist, the
question should be referred to the cognizant legal counsel);

\(d\) Selection of the contractor is documented and justified (AIDAR
706.302-70(b)(1) provides an exception to the requirement for full and
open competition for Personal Services Contracts abroad; see paragraph
5(c) of this Appendix);

\(e\) The standard contract format prescribed for a Cooperating Country
National and a Third Country National personal services contract
(Sections 9, 10, 11, 12, and 13 of this Appendix as appropriate) is
used, or that any necessary deviations are processed as required by
AIDAR 701.470;

\(f\) The contractor has submitted the names, addresses, and telephone
numbers of at least two persons who may be notified in the event of an
emergency (this information is to be retained in the contract file);

\(g\) The contract is complete and correct and all information required
on the contract Cover Page (USAID form 1420-36B) has been entered;

\(h\) The contract has been signed by the Contracting Officer and the
contractor, and fully executed copies are properly distributed;

\(i\) The following clearances, approvals and forms have been obtained,
properly completed, and placed in the contract file before the contract
is signed by both parties:

\(1\) Security clearance to the extent required by USAID Handbook 6,
Security or other superseding Chapters of the Automated Directives
System;

\(2\) Mission, host country, and technical office clearance, as
appropriate;

\(3\) Medical clearance(s) based on a full medical examination(s) and
statement of medical opinion by a licensed physician. The physician's
medical opinion must be in the possession of the Contracting Officer
prior to signature of contract. If a TCN is recruited, medical clearance
requirements apply to the contractor and each dependent who is
authorized to accompany the contractor;

\(4\) The approval for any salary in excess of ES-6, in accordance with
Appendix G of this chapter;

\(5\) A copy of the class justification or other appropriate explanation
and support required by AIDAR 706.302-70, if applicable;

\(6\) Any deviation to the policy or procedures of this Appendix,
processed and approved under AIDAR 701.470;

\(7\) The memorandum of negotiation;

\(j\) The position description is classified in accordance with the
LEPCH, and the proposed salary is consistent with the local compensation
plan or the alternate procedures established in 4(c)(2)(ii) above;

\(k\) Funds for the contract are properly obligated to preclude
violation of the Anti-Deficiency Act, 31 U.S.C. 134 (the Contracting
Officer ensures that the contract has been properly recorded by the
appropriate accounting office prior to its release for the signature of
the selected contractor);

\(l\) The contractor receives and understands USAID General Notice
entitled "Employee Review of the New Standards of Conduct" dated October
30, 1992 and a copy is attached to each contract, as provided for in
paragraph (c) of General Provision 2, Section 12;

\(m\) Agency conflict of interest requirements, as set out in the above
notice are also met by the contractor prior to his/her reporting for
duty;

\(n\) A copy of a Checklist for Personal Services Contractors which may
be in the form set out above or another form convenient for the
contracting officer, provided that a form containing all of the
information described in this paragraph 7 shall be prepared for each PSC
and placed in the contract file;

\(o\) In consultation with the regional legal advisor and/or the
regional contracting officer, the contract is modified by deleting from
the General Provisions (Sections 12 and 13 of this Appendix) the
inapplicable clause(s) by a listing in the Schedule; and

\(p\) The block entitled, "Acquisition and Assistance Request Document"
on the Cover Page of the contract format is completed by inserting the
four-segment technical number as prescribed in USAID Handbook 18, the
USAID Code Book Appendix D or superseding ADS Chapter if the PSC is
project-funded.

8\. [Contracting Format]{.underline}

The prescribed Contract Cover Page, Contract Schedules, General
Provisions and FAR Clauses for personal service contracts for TCNs and
CCNs covered by this Appendix are included as follows:

9\. "Cover Page" for a Contract with a Cooperating Country National or
with a Third Country National for Personal Services.

10\. "Schedule" for a Contract with a Cooperating Country National or
Third Country National Personal Services Contracts.

11\. "Optional Schedule" for a Contract with a Cooperating Country
National or Third Country National Personal Services Contracts.

\[Use of the Optional Schedule is intended to serve as an alternate
procedure for OE funded Foreign Service National PSCs. The schedule was
developed for use when the Contracting Officer anticipates incremental
recurring cost funded contracts. It should be noted that the Optional
Schedule eliminates the need to amend the contract each time funds are
obligated. However, the Contracting Officer is required to amend each
contract not less than twice during a 12 month period to ensure that the
contract record of obligations is up to date and agrees with the figures
in the master funding document.\]

12\. "General Provisions" for a Contract With a Cooperating Country
National or With a Third Country National for Personal Services.

13\. FAR Clauses to be incorporated in full text as well as by reference
in Personal Services Contracts.

9\. ["Cover page" for a Contract With a Cooperating Country]{.underline}

[National or With a Third Country National for Personal Services - Form
AID 1420-36B (11/96)]{.underline}.

10\. ["Schedule" for a Contract With a Cooperating Country
National]{.underline}

[or Third Country National Personal Services Contracts]{.underline}

Contract No. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

TABLE OF CONTENTS

The Schedule on pages \_\_\_\_ through \_\_\_\_ consists of this Table
of Contents, the following Articles, and General Provisions:

Article I \-- Statement of Duties

Article II \-- Period of Service

Article III \-- Contractor's Compensation and Reimbursement

Article IV \-- Costs Reimbursable and Logistic Support

Article V \-- Precontract Expenses

Article VI \-- Additional Clauses

GENERAL PROVISIONS

The following provisions, numbered as shown below, omitting number(s)
\_\_\_\_\_\_, are the General Provisions (GPs) of this Contract:

1\. Definitions

2\. Compliance with Applicable Laws and Regulations

3\. Physical Fitness

4\. Security

5\. Workweek

6\. Leave and Holidays

7\. Social Security and Cooperating Country Taxes

8\. Insurance

9\. Travel and Transportation

10\. Payment

11\. Contractor-Mission Relationships

12\. Termination

13\. Allowances

14\. Advance of Dollar Funds

15\. Conversion of U.S. Dollars to Local Currency

16\. Post of assignment Privileges

17\. Release of Information

18\. Notices

19\. Incentive Awards

20\. Training

21\. Medical Evacuation Services

SCHEDULE

Note: Use of the following Schedule is not mandatory.

The Schedule is intended to serve as a guideline and as a checklist for
contracting offices in drafting contract schedules. Article language
shall be changed to suit the needs of the particular contract. Special
attention should be given to the financial planning sections where
unnecessary line items should be eliminated.

Article I\--Statement of Duties

\[The statement of duties shall include:

A. General statement of the purpose of the contract.

B. Statement of duties to be performed.

C. Orientation or training to be provided by USAID.\]

Article II\--Period of Service

Within \_\_\_\_ days after written notice from the Contracting Officer
that all clearances, including the statement of medical opinion required
under General Provision Clause 3, have been received, unless another
date is specified by the contracting officer in writing, the contractor
shall proceed to \_\_\_\_ and shall promptly commence performance of the
duties specified above. The contractor's period of service shall be
approximately \_\_\_\_ in \_\_\_\_. (Specify time of duties in each
location.)

Article III\--Contractor's Compensation and Reimbursement

A. Except as reimbursement may be specifically authorized by the Mission
Director or contracting officer, USAID shall pay the contractor
compensation after it has accrued and make reimbursements, if any are
due, in currency of the post or for necessary and reasonable costs
actually incurred in the performance of this contract within the
categories listed in Paragraph D, below, and subject to the conditions
and limitations applicable thereto as set out herein and in the attached
General Provisions (GPs).

B. The amount budgeted and available as personal compensation to the
contractor is calculated to cover a calendar period of approximately
\_\_\_\_ (days) (weeks) (months) (years) (which is to include) (1)
vacation and sick leave which may be earned during contractor's tour of
duty (GP Clause No. 6), (2) \_\_\_\_ days for authorized travel (GP
Clause 9), and (3) \_\_\_\_ days for orientation and consultation if
required by the Statement of Duties.

C. The contractor shall earn vacation leave at the rate of \_\_\_\_ days
per year under the contract (provided the contract is in force for at
least 90 days) and shall earn sick leave at the rate of \_\_\_\_ days
per year under the contract.

D. [Allowable Costs]{.underline}.

1\. Compensation at the rate of LC \_\_\_\_ per (year) (month) (week)
(day), equivalent to Grade FSN-\_\_\_\_ / \_\_\_\_, in accordance with
the Mission's Local Compensation Plan. If during the effective period of
this contract the Local Compensation Plan is revised, contractor's
compensation will be revised accordingly and contractor will be notified
in writing by the contracting officer. Adjustments in compensation for
periods when the contractor is not in compensable pay status shall be
calculated as follows: Rate of LC \_\_\_\_ per (day) (hour). LC
\_\_\_\_\_\_\_

2\. Overtime (Unless specifically authorized in the Schedule of this
contract, no overtime hours shall be allowed hereunder.)

3\. Travel and Transportation (Ref. GP Clause 9). (Includes the value of
TRs furnished by the Government, not payable to contractor).

a\. United States\--\$\_\_\_\_\_\_

b\. International\--\$\_\_\_\_\_\_

c\. Cooperating and Third Country\--\$\_\_\_\_\_\_, LC \_\_\_\_\_\_

Subtotals Item 3 \-- \$ \_\_\_\_\_\_, LC \_\_\_\_\_\_

4\. Subsistence or Per Diem (Ref. GP Clause 9).

a\. United States\--\$\_\_\_\_\_\_

b\. International\--\$\_\_\_\_\_\_

c\. Cooperating and Third Country\--\$\_\_\_\_\_\_, LC \_\_\_\_\_\_\_

Subtotals Item 4 \-- \$ \_\_\_\_\_, LC \_\_\_\_\_\_\_

5\. Other Direct Costs

a\. Physical Examination (Ref. GP Clause 3)\--LC\_\_\_\_\_\_

b\. Miscellaneous\--LC\_\_\_\_\_\_

Subtotal Item 5 \--LC \_\_\_\_\_\_

Total Estimated Costs (Lines 1 thru 5) \$\_\_\_\_\_\_ LC \_\_\_\_\_\_

E. [Maximum U.S. Dollar and Local Currency Obligation]{.underline}.

In no event shall the maximum U.S. Dollar obligation under this contract
exceed \$\_\_\_\_ nor shall the maximum local currency obligation exceed
LC \_\_\_\_. Contractor shall keep a close account of all obligations
incurred and accrued hereunder and promptly notify the contracting
officer whenever it appears that the said maximum is not sufficient to
cover all compensation and costs reimbursable which are anticipated
under the contract.

F. Under the Joint Incentive Awards Program for FSN monetary awards will
be made pending availability of funds. The increase for the award will
be effected by the execution of an SF-1126 which will be attached to the
contract and will form a part of the contract. In no event may costs
under the contract exceed the total amount obligated.

Meritorious Step Increases for FSN PSCs may be authorized provided the
granting of such increase is the general practice locally.

Article IV\--Costs Reimbursable And Logistic Support

A. [General]{.underline}.

The contractor shall be provided with or reimbursed in local currency
(\_\_\_\_) for the following: \[Complete\]

B. [Method of Payment of Local Currency Costs]{.underline}.

Those contract costs which are specified as local currency costs in
Paragraph A, above, if not furnished in kind by the cooperating
government or the Mission, shall be paid to the contractor in a manner
adapted to the local situation, based on vouchers submitted in
accordance with GP Clause 10. The documentation for such costs shall be
on such forms and in such manner as the Mission Director shall
prescribe.

C. [Cooperating or U.S. Government Furnished Equipment and
Facilities]{.underline}.

\[List any logistical support, equipment, and facilities to be provided
by the cooperating government or the U.S. Government at no cost to this
contract; e.g., office space, supplies, equipment, secretarial support,
etc., and the conditions, if any, for use of such equipment.\]

Article V\--Precontract Expenses

No expense incurred before signing of this contract will be reimbursed
unless such expense was incurred after receipt and acceptance of a
precontract expense letter issued to the contractor by the Contracting
Officer, and then only in accordance with the provisions and limitations
contained in such letter. The rights and obligations created by such
letter shall be considered as merged into this contract.

Article VI\--Additional Clauses

\[Additional Schedule Clauses may be added to meet specific requirements
of an individual contract.\]

11\. [Optional Schedule for a Contract With a Cooperating
Country]{.underline}

[National or Third Country National Personal Services
Contracts]{.underline}

Contract No. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

TABLE OF CONTENTS

(Optional Schedule)

\[Use of the Optional Schedule is not mandatory. It is intended to serve
as an alternate procedure for OE funded Cooperating Country National and
Third Country National PSCs. The schedule was developed for use when the
Contracting Officer anticipates incremental recurring cost funded
contracts. It should be noted that use of the Optional Schedule
eliminates the need to amend the contract each time funds are obligated.
However, Contracting Officer is required to amend each contract not less
than twice during a 12 month period to ensure that the contract record
of obligations is up to date and agrees with the figures in the master

funding document.\]

The Schedule on pages \_\_\_\_ through \_\_\_\_ consists of this Table
of Contents and the following Articles:

Article I \-- Statement of Duties

Article II \-- Period of Service

Article III \-- Contractor's Compensation and Reimbursement

Article IV \-- Costs Reimbursable and Logistic Support

Article V \-- Precontract Expenses

Article VI \-- Additional Clauses

GENERAL PROVISIONS

The following provisions, numbered as shown below, omitting number(s)
\_\_\_\_, are the General Provisions (GPs) of this contract.

1\. Definitions

2\. Compliance with Applicable Laws and Regulations

3\. Physical Fitness

4\. Security

5\. Workweek

6\. Leave and Holidays

7\. Social Security and Cooperating Country Taxes

8\. Insurance

9\. Travel and Transportation

10\. Payment

11\. Contractor-Mission Relationships

12\. Termination

13\. Allowances

14\. Advance of Dollar Funds

15\. Conversion of U.S. Dollars to Local Currency

16\. Post of Assignment Privileges

17\. Release of Information

18\. Notices

19\. Incentive Awards

20\. Training

21\. Medical Evacuation Services

Article I\--Statement of Duties

\[The statement of duties shall include:

A. General statement of the purpose of the contract.

B. Statement of duties to be performed.

C. Orientation or training to be provided by USAID.\]

Article II\--Period of Service

Employment under this contract is of a continuing nature. Its duration
is expected to be part of a series of sequential contracts; all contract
provisions and clauses and regulatory requirements concerning
availability of funds and the specific duration of this contract shall
apply.

Within 10 days after written notice from the Contracting Offices that
all clearances have been received, unless another date is specified by
the Contracting Officer in writing, the contractor shall proceed to
(name place) and shall promptly commence performance of the duties
specified in Article I of this contract. The contractor's period of
service shall be approximately (specify duration from date to date).

Article III\--Contractor's Compensation and Reimbursement

A. Except as reimbursement may be specifically authorized by the Mission
Director or Contracting Officer, USAID shall pay the contractor
compensation after it has accrued and make reimbursements, if any are
due in currency of the cooperating country (LC) in accordance with the
prevailing practice of the post or for necessary and reasonable costs
actually incurred in the performance of this contract within the
categories listed in paragraph E, below, and subject to the conditions
and limitations applicable thereto as set out herein and in the attached
General Provisions (GPs).

B. The amount budgeted and available as personal compensation to the
contractor is calculated to cover a calendar period of approximately
\_\_\_\_ (days) (weeks) (months) (years) (which is to include) (1)
vacation and sick leave which may be earned during the contractor's tour
of duty (GP Clause No. 6), (2) \_\_\_\_ days for authorized travel (GP
Clause 9), and (3) \_\_\_\_ days for orientation and consultation if
required by the Statement of Duties.

C. The contractor shall earn vacation leave at the rate of \_\_\_\_ days
per year under the contract (provided the contract is in force for at
least 90 days) and shall earn sick leave at the rate of \_\_\_\_ days
per year under the contract.

D. All employee rights and benefits from the previous contract or
employment, i.e., accumulated annual and sick leave balances, original
service computation dates, reserve fund contributions, accumulated
compensatory time, social security contributions, seniority and
longevity bonuses are considered allowable costs and as a continuation
as long as the break in service does not exceed three days.

E. [Allowable Costs]{.underline}.

1\. The following illustrative budget details allowable costs under this
contract and provides estimated incremental recurrent cost funding in
the total amount shown. Additional funds for the full term of this
contract will be provided by the preparation of a master PSC funding
document issued by the Mission Controller for the purpose of providing
additional funding for a specific period. The master PSC funding
document will be attached to this contract and will form a part of the
executed contract while also serving to amend the budget.

2\. Overtime (Unless specifically authorized in the Schedule of this
contract, no overtime hours shall be allowed hereunder.) LC\_\_\_\_\_\_

3\. Travel and Transportation (Ref. GP Clause 9). (Includes the value of
TRs furnished by the Government, not payable to contractor).

a\. United States\--\$\_\_\_\_

b\. International\--\$\_\_\_\_

c\. Cooperating and Third Country\--\$\_\_\_\_, LC \_\_\_\_

Subtotals Item 3\--\$\_\_\_\_\_\_, LC\_\_\_\_\_\_

4\. Subsistence or Per Diem (Ref. GP Clause 9.)

a\. United States\--\$\_\_\_\_

b\. International\--\$\_\_\_\_

c\. Cooperating and Third Country\--\$\_\_\_\_, LC \_\_\_\_

Subtotals Item 4\--\$\_\_\_\_\_\_, LC\_\_\_\_\_\_

5\. Other Direct Costs.

a\. Physical Examination (Ref. GP Clause 3)\--\$\_\_\_\_,

LC \_\_\_\_

b\. Miscellaneous\--\$\_\_\_\_, LC \_\_\_\_

Subtotals Item 5\--\$\_\_\_\_\_\_, LC\_\_\_\_\_\_

Total Estimated Costs (Lines 1 thru 5) \$\_\_\_\_\_\_\_, LC
\_\_\_\_\_\_\_

F. Allowable costs compensation and all terms and benefits of employment
under this contract will be in accordance with the Mission's local
compensation plan. Salary changes and personnel-related contract actions
will be made by processing the same forms as used in making such changes
and actions for direct-hire FSN employees. When issued by the
Contracting Officer, the forms utilized will be attached to the contract
and will form a part of the contract terms and conditions.

Any adjustment or increase in the compensation granted to direct-hire
employees under the local compensation plan will be allowed for in PSCs
subject to the availability of funds. Such an adjustment will be
effected by a mass pay adjustment notice from the Contracting Officer,
which will be attached to the contract and form a part of the executed
contract.

At the end of each year of satisfactory service, PSC contractors will be
eligible to receive an increase equal to one annual step increase as
shown in the local compensation plan, pending availability for funds.
Such increase will be effected by the execution of an SF-1126, Payroll
Change Slip which is to be attached to each contract and each action
forms a part of the official contract file.

Under the Joint Inventive Awards Program for FSNs, monetary awards will
be made pending availability of funds. The increase for the award will
be effected by the execution of an SF-1126 which will be attached to the
contract and will form a part of the contract. In no event may costs
under the contract exceed the total amount obligated.

Meritorious Step Increases for FSN PSCs may be authorized provided the
granting of such increase is the general practice locally.

The master PSC funding document may not exceed the term or estimated
total cost of this contract. Notwithstanding that additional funds are
obligated under this contract through the issuance and attachment of the
master PSC funding document, all other contract terms and conditions
remain in full effect.

Article IV\--Costs Reimbursable and Logistic Support

A. [General]{.underline}.

The contractor shall be provided with or reimbursed in local currency
\_\_\_\_\_\_\_ for the following: \[Complete\]

B. [Method of Payment of Local Currency Costs]{.underline}.

Those contract costs which are specified as local currency costs in
Paragraph A, above, if not furnished in kind by the cooperating
government or the Mission, shall be paid to the contractor in a manner
adapted to the local situation, based on vouchers submitted in
accordance with GP Clause 10. The documentation for such costs shall be
on such forms and in such manner as the Mission Director shall
prescribe.

C. [Cooperating or U.S. Government Furnished Equipment and
Facilities]{.underline}.

\[List any logistical support, equipment, and facilities to be provided
by the cooperating government or the U.S. Government at no cost to this
contract; e.g., office space, supplies, equipment, secretarial support,
etc., and the conditions, if any, for use of such equipment.\]

Article V\--Precontract Expenses

No expense incurred before signing of this contract will be reimbursed
unless such expense was incurred after receipt and acceptance of a
precontract expense letter issued to the contractor by the Contracting
Officer, and then only in accordance with the provisions and limitations
contained in such letter. The rights and obligations created by such
letter shall be considered as merged into this contract.

Article VI\--Additional Clauses

\[Additional Schedule Clauses may be added to meet specific requirements
of an individual contract.\]

12\. [General Provisions for a Contract With a Cooperating
Country]{.underline}

[National or With a Third Country National for Personal
Services]{.underline}

To be used to contract with cooperating country nationals or third
country nationals for personal services.

INDEX OF CLAUSES

1\. Definitions

2\. Compliance with Applicable Laws and Regulations

3\. Physical Fitness

4\. Security

5\. Workweek

6\. Leave and Holidays

7\. Social Security and Cooperating Country Taxes

8\. Insurance

9\. Travel and Transportation

10\. Payment

11\. Contractor-Mission Relationships

12\. Termination

13\. Allowances

14\. Advance of Dollar Funds

15\. Conversion of U.S. Dollars to Local Currency

16\. Post of Assignment Privileges

17\. Release of Information

18\. Notices

19\. Incentive Awards

20\. Training

21\. Medical Evacuation Services

1\. DEFINITIONS (July 1993)

\[For use in both Cooperating Country National (CCN)

and Third Country National (TCN) Contracts\].

\(a\) "USAID" shall mean the U.S. Agency for International Development.

\(b\) "Administrator" shall mean the Administrator or the Deputy
Administrator of the U.S. Agency for International Development.

\(c\) "Contracting Officer" shall mean a person with the authority to
enter into, administer, and/or terminate contracts and make related
determinations and findings. The term includes certain authorized
representatives of the Contracting Officer acting within the limits of
their authority as delegated by the Contracting Officer.

\(d\) "Cooperating Country National" shall mean the individual engaged
to serve in the Cooperating Country under this contract.

\(e\) "Cooperating Country" shall mean the foreign country in or for
which services are to be rendered hereunder.

\(f\) "Cooperating Government" shall mean the government of the
Cooperating Country.

\(g\) "Government" shall mean the United States Government.

\(h\) "Economy Class" air travel shall mean a class of air travel which
is less than business or first class.

\(i\) "Local Currency" shall mean the currency of the cooperating
country.

\(j\) "Mission" shall mean the United States USAID Mission to, or
principal USAID office in, the Cooperating Country.

\(k\) "Mission Director" shall mean the principal officer in the Mission
in the Cooperating Country, or his/her designated representative.

\(l\) "Third Country National" shall mean an individual (i) who is
neither a citizen of the United States nor of the country to which
assigned for duty, and (ii) who is eligible for return travel to the
TCN's home country or country from which recruited at U.S. Government
expenses, and (iii) who is on a limited assignment for a specific period
of time.

\(m\) "Tour of Duty" shall mean the contractor's period of service under
this contract and shall include, authorized leave and international
travel.

\(n\) "Traveler" shall mean the contractor or dependents of the
contractor who are in authorized travel status.

\(o\) "Dependents" shall mean spouse and children (including step and
adopted children who are unmarried and under 21 years of age or,
regardless of age, are incapable of self-support.

2\. COMPLIANCE WITH LAWS AND REGULATIONS APPLICABLE ABROAD (July 1993)

\[For use in both CCN and TCN Contracts\].

\(a\) [Conformity to Laws and Regulations of the Cooperating
Country]{.underline}.

Contractor agrees that, while in the cooperating country, he/she as well
as authorized dependents will abide by all applicable laws and
regulations of the cooperating country and political subdivisions
thereof.

\(b\) [Purchase or Sale of Personal Property or
Automobiles]{.underline}. \[For TCNs Only\].

To the extent permitted by the cooperating country, the purchase, sale,
import, or export of personal property or automobiles in the cooperating
country by the contractor shall be subject to the same limitations and
prohibitions which apply to Mission U.S.-citizen direct-hire employees.

\(c\) [Code of Conduct]{.underline}.

The contractor shall, during his/her tour of duty under this contract,
be considered an "employee" (or if his/her tour of duty is for less than
130 days, a "special Government employee") for the purposes of, and
shall be subject to, the provisions of 18 U.S.C. 202(a) the AID General
Notice entitled Employee Review of the New Standards of Conduct. The
contractor acknowledges receipt of a copy of these documents by his/her
acceptance of this contract.

3\. PHYSICAL FITNESS (July 1993)

\[For use in both CCN and TCN Contracts\].

\(a\) [Cooperating Country National]{.underline}.

The contractor shall be examined by a licensed doctor of medicine,

and shall obtain a statement of medical opinion that, in the doctor's
opinion, the contractor is physically qualified to engage in the type of
activity for which he/she is to be employed under the contract. A copy
of the medical opinion shall be provided to the Contracting Officer
before the contractor starts work under the contract. The contractor
shall be reimbursed for the cost of the physical examination based on
the rates prevailing locally for such examinations in accordance with
Mission practice.

\(b\) [Third Country National]{.underline}.

\(i\) The contractor shall obtain a physical examination for
himself/herself and any authorized dependents by a licensed doctor of
medicine. The contractor shall obtain a statement of medical opinion
from the doctor that, in the doctor's opinion, the contractor is
physically qualified to engage in the type of activity for which he/she
is to be employed under the contract, and the contractor's authorized
dependents are physically qualified to reside in the cooperating
country. A copy of that medical opinion shall be provided to the
Contracting Officer prior to the dependents' departure for the
cooperating country.

\(ii\) The contractor shall be reimbursed for the cost of the physical
examinations mentioned above as follows: (1) based on those rates
prevailing locally for such examinations in accordance with Mission
practice or (2) if not done locally, not to exceed \$100 per examination
for the contractor's dependents of 12 years of age and over and not to
exceed \$40 per examination for contractor's dependents under 12 years
of age. The contractor shall also be reimbursed for the cost of all
immunizations normally authorized and extended to FSN employees.

4\. SECURITY (July 1993)

\[For use in both CCN and TCN Contracts\].

\(a\) The contractor is obligated to notify immediately the Contracting
Officer if the contractor is arrested or charged with any offense during
the term of this contract.

\(b\) The contractor shall not normally have access to classified or
administratively controlled information and shall take conscious steps
to avoid receiving or learning of such information. However, based on
contractor's need to know, Mission may authorize access to
administratively controlled information for performance of assigned
scope of work on a case-by-case basis in accordance with USAID Handbook
6 or superseding ADS Chapters.

\(c\) The contractor agrees to submit immediately to the Mission
Director or Contracting Officer a complete detailed report, marked
"Privileged Information", of any information which the contractor may
have concerning existing or threatened espionage, sabotage, or
subversive activity against the United States of America or the USAID
Mission or the cooperating country government.

5\. WORKWEEK (Oct 1987)

\[For use in both CCN and TCN Contracts\].

The contractor's workweek shall not be less than 40 hours, unless
otherwise provided in the Schedule, and shall coincide with the workweek
for those employees of the Mission or the cooperating country agency
must closely associated with the work of this contract. If approved in
advance in writing, overtime worked by the contractor shall be paid in
accordance with the procedures governing premium compensation applicable
to direct-hire foreign service national employees. If the contract is
for less than full time (40 hours weekly), the leave earned shall be
prorated.

6\. LEAVE AND HOLIDAYS (Oct 1987)

\[For use in both CCN and TCN Contracts\].

\(a\) [Vacation Leave]{.underline}.

The contractor may accrue, accumulate, use and be paid for vacation
leave in the same manner as such leave is accrued, accumulated, used and
paid to foreign service national direct-hire employees of the Mission.
No vacation leave shall be earned if the contract is for less than 90
days. Unused vacation leave may be carried over under an extension or
renewal of the contract as long as it conforms to Mission policy and
practice. With the approval of the Mission Director, and if the
circumstances warrant, a contractor may be granted advance vacation
leave in excess of that earned, but in no case shall a contractor be
granted advance vacation leave in excess of that which he/she will earn
over the life of the contract. The contractor agrees to reimburse USAID
for leave used in excess of the amount earned during the contractor's
assignment under the contract.

\(b\) [Sick Leave]{.underline}.

The contractor may accrue, accumulate, and use sick leave in the same
manner as such leave is accrued, accumulated and used by foreign service
national direct-hire employees of the Mission. Unused sick leave may be
carried over under an extension of the contract. The contractor will not
be paid for sick leave earned but unused at the completion of this
contract.

\(c\) [Leave Without Pay]{.underline}.

Leave without pay may be granted only with the written approval of the
Contracting Officer or Mission Director.

\(d\) [Holidays]{.underline}.

The contractor shall be entitled to all holidays granted by the Mission
to direct-hire cooperating country national employees who are on
comparable assignments.

7\. SOCIAL SECURITY AND COOPERATING COUNTRY TAXES (Dec 1986)

\[For use in both CCN and TCN Contracts\].

Funds for Social Security, retirement, pension, vacation or other
cooperating country programs as required by local law shall be deducted
and withheld in accordance with laws and regulations and rulings of the
cooperating country or any agreement concerning such withholding entered
into between the cooperating government and the United States
Government.

8\. INSURANCE (July 1993)

\[For use in both CCN and TCN Contracts\].

\(a\) [Worker's Compensation Benefits]{.underline}.

The contractor shall be provided worker's compensation benefits under
the Federal Employees Compensation Act.

\(b\) [Health and Life Insurance]{.underline}.

The contractor shall be provided personal health and life insurance
benefits on the same basis as they are granted to direct-hire CCNs and
TCN employees at the post under the Post Compensation Plan.

\(c\) [Insurance on Private Automobiles\--Contractor
Responsibility]{.underline}. \[For use in TCN contracts\].

If the contractor or dependents transport, or cause to be transported,
any privately owned automobile(s) to the cooperating country, or any of
them purchase an automobile within the cooperating country, the
contractor agrees to ensure that all such automobile(s) 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 U.S. dollars or its equivalent in the
currency of the cooperating country: injury to persons,
\$10,000/\$20,000; property damage, \$5,000. The contractor further
agrees to deliver, or cause to be delivered to the Mission Director,
copies of the insurance policies required by this clause or satisfactory
proof of the existence thereof, before such automobile(s) is operated
within the cooperating country. The premium costs for such insurance
shall not be a reimbursable cost under this contract.

\(d\) [Claims for Private Personal Property Losses]{.underline}. \[For
use in TCN contracts\]. The contractor shall be reimbursed for private
personal property losses in accordance with USAID Handbook 23, "Overseas
Support", Chapter 10, or superseding ADS Chapter.

9\. TRAVEL AND TRANSPORTATION EXPENSES (July 1993)

\[For use in both CCN and TCN Contracts as appropriate\].

\(a\) [General]{.underline}.

The contractor will be reimbursed in currency consistent with the
prevailing practice at post and at the rates established by the Mission
Director for authorized travel in the cooperating country in connection
with duties directly referable to work under this contract. In the
absence of such established rates, the contractor shall be reimbursed
for actual costs of authorized travel in the cooperating country if not
provided by the cooperating government or the Mission in connection with
duties directly referable to work hereunder, including travel allowances
at rates prescribed by USAID Handbook 22, "Foreign Service Travel
Regulations" or superseding ADS Chapters as from time to time amended.
The Executive or Administrative Officer at the Mission may furnish
Transportation Requests (TR's) for transportation authorized by this
contract which is payable in local currency or is to originate outside
the United States. When transportation is not provided by Government
issued TR, the contractor shall procure the transportation, and the
costs will be reimbursed. The following paragraphs provide specific
guidance and limitations on particular items of cost.

\(b\) [International Travel]{.underline}. For travel to and from post of
assignment the TCN contractor shall be reimbursed for travel costs and
travel allowances from place of residence in the country of recruitment
(or other location provided that the cost of such travel does not exceed
the cost of the travel from the place of residence) to the post of duty
in the cooperating country and return to place of residence in the
country of recruitment (or other location provided that the cost of such
travel does not exceed the cost of travel from the post of duty in the
cooperating country to the contractor's residence) upon completion of
services by the individual. Reimbursement for travel will be in
accordance with USAID's established policies and procedures for its CCN
and TCN direct-hire employees and the provisions of this contract, and
will be limited to the cost of travel by the most direct and expeditious
route. If the contract is for longer than one year and the contractor
does not complete one full year at post of duty (except for reasons
beyond his/her control), the cost of going to and from the post of duty
for the contractor and his/her dependents are not reimbursable
hereunder. If the contractor serves more than one year but less than the
required service in the cooperating country (except for reasons beyond
his/her control) costs of going to the post of duty are reimbursable
hereunder but the cost of going from post of duty to the contractor's
permanent, legal place of residence at the time he or she was employed
for work under this contract are not reimbursable under this contract
for the contractor and his/her dependents. When travel is by economy
class accommodations, the contractor will be reimbursed for the cost of
transporting up to 10 kilograms/22 pounds of accompanied personal
baggage per traveler in addition to that regularly allowed with the
economy ticket provided that the total number of pounds of baggage does
not exceed that regularly allowed for first class travelers. Travel
allowances for travelers shall not be in excess of the rates authorized
in the Standardized Regulations (Government Civilians, Foreign Areas)
hereinafter referred to as the Standardized Regulations\--as from time
to time amended, for not more than the travel time required by scheduled
commercial air carrier using the most expeditious route. One stopover
enroute for a period of not to exceed 24 hours is allowable when the
traveler uses economy class accommodations for a trip of 14 hours or
more of scheduled duration. Such stopover shall not be authorized when
travel is by indirect route or is delayed for the convenience of the
traveler. Per diem during such stopover shall be paid in accordance with
the Federal Travel Regulations as from time to time amended.

\(c\) [Local Travel]{.underline}.\--Reimbursement for local travel in
connection with duties directly referable to the contract shall not be
in excess of the rates established by the Mission Director for the
travel costs of travelers in the Cooperating Country. In the absence of
such established rates the contractor shall be reimbursed for actual
travel costs in the Cooperating Country by the Mission, including travel
allowances at rates not in excess of those prescribed by the
Standardized Regulations.

\(d\) [Indirect Travel for Personal Convenience of a TCN]{.underline}.
When travel is performed by an indirect route for the personal
convenience of the traveler, the allowable costs of such travel will be
computed on the basis of the cost of allowable air fare via the direct
usually traveled route. If such costs include fares for air or ocean
travel by foreign flag carriers, approval for indirect travel by such
foreign flag carriers must be obtained from the Contracting Officer or
the Mission Director before such travel is undertaken, otherwise only
that portion of travel accomplished by the United States-flag carriers
will be reimbursable within the above limitation of allowable costs.

\(e\) [Limitation on Travel by TCN Dependents]{.underline}. Travel costs
and allowances will be allowed for authorized dependents of the
contractor and such costs shall be reimbursed for travel from place of
abode in the country of recruitment to the assigned station in the
Cooperating Country and return, only if the dependent remains in the
Cooperating Country for at least 9 months or one-half of the required
tour of duty of the contract, whichever is greater, except as otherwise
authorized hereunder for education, medical, or emergency visitation
travel. Dependents of the TCN contractor must return to the country of
recruitment or home country within thirty days of the termination or
completion of the contractor's employment, otherwise such travel will
not be reimbursed under this contract.

\(f\) [Delays Enroute]{.underline}. The contractor may be granted
reasonable delays enroute while in travel status when such delays are
caused by events beyond the control of the contractor and are not due to
circuitous routing. It is understood that if delay is caused by physical
incapacitation, he/she shall be eligible for such sick leave as provided
under the "Leave and Holidays" clause of this contract.

\(g\) [Travel by Privately Owned Automobile (POV)]{.underline}. If
travel by POV is authorized in the contract schedule or approved by the
Contracting Officer, the contractor shall be reimbursed for the cost of
travel performed in his/her POV at a rate not to exceed that authorized
in the Federal Travel Regulations plus authorized per diem for the
employee and, if the POV is being driven to or from the cooperating
country as authorized under the contract, for each of the authorized
dependents traveling in the POV, provided that the total cost of the
mileage and per diem paid to all authorized travelers shall not exceed
the total constructive cost of fare and normal per diem by all
authorized travelers by surface common carrier or authorized air fare,
whichever is less.

\(h\) [Emergency and Irregular Travel and Transportation]{.underline}.
\[For TCNs only\]. Emergency transportation costs and travel allowances
while enroute, as provided in this section, will be reimbursed not to
exceed amounts authorized by the Foreign Service Travel Regulations for
FSN direct-hire employees in like circumstances under the following
conditions:

\(1\) The costs of going from post of duty in the cooperating country to
another approved location for the contractor and authorized dependents
and returning to post of duty, subject to the prior written approval of
the Mission Director, when such travel is necessary for one of the
following reasons:

\(i\) Need for medical care beyond that available within the area to
which contractor is assigned.

\(ii\) Serious effect on physical or mental health if residence is
continued at assigned post of duty.

\(iii\) Serious illness, injury, or death of a member of the
contractor's immediate family or a dependent, including preparation and
return of the remains of a deceased contractor or his/her dependents.

\(2\) Emergency evacuation when ordered by the principal U.S. Diplomatic
Officer in the cooperating country. Transportation and travel allowances
at safe haven and the transportation of household effects and automobile
or storage thereof when authorized by the Mission Director, shall be
payable in accordance with established Government regulations.

\(3\) The Mission Director may also authorize emergency or irregular
travel and transportation in other situations when in his/her opinion
the circumstances warrant such action. The authorization shall include
the kind of leave to be used and appropriate restrictions as to time
away from post, transportation of personal and household effects, etc.

\(i\) [Country of Recruitment Travel and Transportation]{.underline}.
\[For TCNs only\]. The contractor shall be reimbursed for actual
transportation costs and travel allowances in the country of recruitment
as authorized in the Schedule or approved in advance by the Contracting
Officer or the Mission Director. Transportation costs and travel
allowances shall not be reimbursed in any amount greater than the cost
of, and time required for, economy-class commercial-scheduled air travel
by the most expeditious route except as otherwise provided in paragraph
(h) above, unless economy air travel is not available and the contractor
adequately documents this to the satisfaction of the Contracting Officer
in documents submitted with the voucher.

\(j\) [Rest and Recuperation Travel]{.underline}. \[For TCNs only\].

If approved in writing by the Mission Director, the contractor and
his/her dependents shall be allowed rest and recuperation travel on the
same basis as direct-hire TCN employees and their dependents at the post
under the local compensation plan.

\(k\) [Transportation of Personal Effects (Excluding Automobiles
and]{.underline}

[Household Goods)]{.underline}. \[For TCNs only\].

\(1\) General. Transportation costs will be paid on the same basis as
for direct-hire employees at post serving the same length tour of duty,
as authorized in the schedule. Transportation, including packing and
crating costs, will be paid for shipping from contractor's residence in
the country of recruitment or other location, as approved by the
Contracting Officer (provided that the cost of transportation does not
exceed the cost from the contractor's residence) to post of duty in the
cooperating country and return to the country of recruitment or other
location provided the cost of transportation of the personal effects of
the contractor not to exceed the limitations in effect for such
shipments for USAID direct-hire employees in accordance with the Foreign
Service Travel Regulations in effect at the time shipment is made. These
limitations may be obtained from the Contracting Officer. The cost of
transporting household goods shall not exceed the cost of packing,
crating, and transportation by surface common carrier.

\(2\) Unaccompanied Baggage. Unaccompanied baggage is considered to be
those personal belongings needed by the traveler immediately upon
arrival of the contractor and dependents. To permit the arrival of
effects to coincide with the arrival of the contractor and dependents,
consideration should be given to advance shipments of unaccompanied
baggage. The contractor will be reimbursed for costs of shipment of
unaccompanied baggage (in addition to the weight allowance for household
effects) not to exceed the limitations in effect for USAID direct-hire
employees in accordance with the Foreign Service Travel Regulations in
effect when shipment is made. These limitations are available from the
Contracting Officer. This unaccompanied baggage may be shipped as air
freight by the most direct route between authorized points of origin and
destination regardless of the modes of travel used.

\(l\) [Reduced Rates on U.S.-Flag Carriers]{.underline}. Reduced rates
on U.S.-flag carriers are in effect for shipments of household goods and
personal effects of USAID contractors between certain locations. These
reduced rates are available provided the shipper furnishes to the
carrier at the time of the issuance of the Bill of Lading documentary
evidence that the shipment is for the account of USAID. The Contracting
Officer will, on request, furnish to the contractor current information

concerning the availability of a reduced rate with respect to any
proposed shipment. The contractor will not be reimbursed for shipments
of household goods or personal effects in amounts in excess of the
reduced rates which are available in accordance with the foregoing.

\(m\) [Transportation of things]{.underline}. \[For TCNs Only\]. Where
U.S. flag vessels are not available, or their use would result in a
significant delay, the contractor may obtain a release from the
requirement to use U.S. flag vessels from the Transportation Division,
Office of Procurement, U.S. Agency for International Development,
Washington, DC 20523-1419, or the Mission Director, as appropriate,
giving the basis for the request.

\(n\) [Repatriation Travel]{.underline}. \[For TCNs Only\].
Notwithstanding other provisions of this Clause 9, a TCN must return to
the country of recruitment or to the TCN's home country within 30 days
after termination or completion of employment or forfeit all right to
reimbursement for repatriation travel. The return travel obligation
\[repatriation travel\] assumed by the U.S. Government may have been the
obligation of another employer in the area of assignment if the employee
has been in substantially continuous employment which provided for the
TCN's return to home country or country from which recruited.

\(o\) [Storage of household effects]{.underline}. \[For TCNs Only\]. The
cost of storage charges (including packing, crating, and drayage costs)
in the country of recruitment of household goods of regular employees
will be permitted in lieu of transportation of all or any part of such
goods to the Cooperating Country under paragraph (k) above provided that
the total amount of effects shipped to the Cooperating Country or stored
in the country of recruitment shall not exceed the amount authorized for
USAID direct-hire employees under the Foreign Service Travel
Regulations. These amounts are available from the Contracting Officer.

10\. PAYMENT (May 1997)

\[For use in both CCN and TCN Contracts\].

\(a\) Payment of compensation shall be based on written documentation
supporting time and attendance which may be (1) maintained by the
Mission in the same way as for direct-hire CCNs and TCNs or (2) the
contractor may submit such written documentation in a form acceptable to
Mission policy and practice as required for other personal services
contractors and as directed by the Mission Controller or paying office.
The documentation will also provide information required to be filed
under cooperating country laws to permit withholding by USAID of funds,
if required, as described in the clause of these General Provisions
entitled Social Security and Cooperating Country Taxes.

\(b\) Any other payments due under this contract shall be as prescribed
by Mission policy for the type of payment being made.

11\. CONTRACTOR-MISSION RELATIONSHIPS (Dec. 1986)

\[For use in both CCN and TCN Contracts\].

\(a\) The contractor acknowledges that this contract is an important
part of the U.S. Foreign Assistance Program and agrees that his/her
duties will be carried out in such a manner as to be fully commensurate

with the responsibilities which this entails. Favorable relations
between the Mission and the Cooperating Government as well as with the
people of the cooperating country require that the contractor shall show
respect for the conventions, customs, and institutions of the
cooperating country and not become involved in any illegal political
activities.

\(b\) If the contractor's conduct is not in accordance with paragraph
(a), the contract may be terminated pursuant to the General Provision of
this contract, entitled "Termination." If a TCN, the contractor
recognizes the right of the U.S. Ambassador to direct his/her immediate
removal from any country when, in the discretion of the Ambassador, the
interests of the United States so require.

\(c\) The Mission Director is the chief representative of USAID in the
cooperating country. In this capacity, he/she is responsible for the
total USAID Program in the cooperating country including certain
administrative responsibilities set forth in this contract and for
advising USAID regarding the performance of the work under the contract
and its effect on the U.S. Foreign Assistance Program. The contractor
will be responsible for performing his/her duties in accordance with the
statement of duties called for by the contract. However, he/she shall be
under the general policy guidance of the Mission Director and shall keep
the Mission Director or his/her designated representative currently
informed of the progress of the work under this contract.

12\. TERMINATION (Nov. 1989)

\[For use in both CCN and TCN Contracts\].

(This is an approved deviation to be used in place of the clause

specified in FAR 52.249-12.)

\(a\) The Government may terminate performance of work under this
contract in whole or, from time to time, in part:

\(1\) For cause, which may be effected immediately after establishing
the facts warranting the termination, by giving written notice and a
statement of reasons to the contractor in the event (i) the contractor
commits a breach or violation of any obligations herein contained, (ii)
a fraud was committed in obtaining this contract, or (iii) the
contractor is guilty (as determined by USAID) of misconduct in the
cooperating country. Upon such a termination, the contractor's right to
compensation shall cease when the period specified in such notice

expires or the last day on which the contractor performs services
hereunder, whichever is earlier. No costs of any kind incurred by the
contractor after the date such notice is delivered shall be reimbursed
hereunder except the cost of return transportation (not including travel
allowances), if approved by the Contracting Officer. If any costs
relating to the period subsequent to such date have been paid by USAID,
the contractor shall promptly refund to USAID any such prepayment as
directed by the Contracting Officer.

\(2\) For the convenience of USAID, by giving not less than 15 calendar
days advance written notice to the contractor. Upon such a termination,
contractor's right to compensation shall cease when the period specified
in such notice expires except that the contractor shall be entitled to
any accrued, unused vacation leave, return transportation costs and
travel allowances and transportation of unaccompanied baggage costs at
the rates specified in the contract and subject to the limitations which
apply to authorized travel status.

\(3\) For the convenience of USAID, when the contractor is unable to
complete performance of his/her services under the contract by reason of
sickness or physical or emotional incapacity based upon a certification
of such circumstances by a duly qualified doctor of medicine approved by
the Mission. The contract shall be deemed terminated upon delivery to
the contractor of a termination notice. Upon such a termination, the
contractor shall not be entitled to compensation except to the extent of
any accrued, unused vacation leave, but shall be entitled to return
transportation, travel allowances, and unaccompanied baggage costs at
rates specified in the contract and subject to the limitations which
apply to authorized travel status.

\(b\) The contractor, with the written consent of the Contracting
Officer, may terminate this contract upon at least 15 days' written
notice to the Contracting Officer.

13\. ALLOWANCES (Dec. 1986)

\[For TCNs only\].

Allowances will be granted to the contractor and authorized dependents
on the same basis as to direct-hire TCN employees at the post under the
Post Compensation Plan. The allowances provided shall be paid to the
contractor in the currency of the cooperating country or in accordance
with the practice prevailing at the Mission.

14\. ADVANCE OF DOLLAR FUNDS (Dec 1986)

\[For TCNs only\].

If requested by the contractor and authorized in writing by the
Contracting Officer, USAID will arrange for an advance of funds to
defray the initial cost of travel, travel allowances, authorized
precontract expenses, and shipment of personal property. The advance
shall be granted on the same basis as to an USAID U.S.-citizen direct-

hire employee in accordance with USAID Handbook 22, Chapter 4 or
superseding ADS Chapters.

15\. CONVERSION OF U.S. DOLLARS TO LOCAL CURRENCY (Dec 1986)

\[For TCNs only\].

Upon arrival in the cooperating country, and from time to time as
appropriate, the contractor shall consult with the Mission Director or
his/her authorized representative who shall provide, in writing, the
policy the contractor shall follow in the conversion of one currency to
another currency. This may include, but not be limited to, the
conversion of said currency through the cognizant U.S. Disbursing
Officer, or Mission Controller, as appropriate.

16\. POST OF ASSIGNMENT PRIVILEGES (Dec 1986)

\[For TCNs only\].

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 host governments. These facilities are intended for and usually
limited to U.S. citizen members of the official U.S. Mission including
the Embassy, USAID, Peace Corps, U.S. Information Services and the
Military. Normally, the agreements do not permit these facilities to be
made available to non-U.S. citizens if they are under contract to the
United States Government. However, in those cases where the facilities
are open to TCN contractor personnel, they may be used.

17\. RELEASE OF INFORMATION (Dec 1986)

\[For use in both CNN and TCN Contracts\].

All rights in data and reports shall become the property of the U.S.
Government. All information gathered under this contract by the
contractor and all reports and recommendations hereunder shall be
treated as privileged information by the contractor and shall not,
without the prior written approval of the Contracting Officer, be made
available to any person, party, or government, other than USAID, except
as otherwise expressly provided in this contract.

18\. NOTICES (Dec 1986)

\[For use in both CNN and TCN Contracts\].

Any notice, given by any of the parties hereunder, shall be sufficient
only if in writing and delivered in person or sent by telegraph,
telegram, registered, or regular mail as follows:

\(a\) TO USAID: To the Mission Director of the Mission in the
Cooperating Country with a copy to the appropriate Contracting Officer.

\(b\) TO THE CONTRACTOR: At his/her post of duty while in the
Cooperating Country and at the contractor's address shown on the Cover
Page of this contract or to such other address as either of such parties
shall designate by notice given as herein required.

Notices hereunder shall be effective when delivered in accordance with
this clause or on the effective date of the notice, whichever is later.

19\. INCENTIVE AWARDS (Dec 1996)

\[For CNN and TCN Contracts\].

\(a\) All Cooperating Country National (CCN) Personal Services
Contractors (PSCs) and Third Country Nationals (TCNs) of the Foreign
Affairs Community are eligible for the Joint Embassy Incentive Awards
Program. The program is administered by each post's (Embassy) Joint
Country Awards Committee.

\(b\) [Meritorious Step Increases]{.underline}. Meritorious step
increases may be granted to CNNs and TCNs paid under the local
compensation plan provided the granting of such increases is the general
practice locally.

20\. TRAINING (July 1993)

\[For CNN and TCN Contracts\].

The contractor may be provided job related training to develop growth
potential, expand capabilities and increase knowledge and skills. The
training may be funded under the personal services contract.

21\. MEDICAL EVACUATION (MEDEVAC) SERVICES (July 1993)

\[For TCN Contracts Only\].

\(a\) The contractor agrees to obtain medevac service coverage for
himself/herself and his/her authorized dependents while performing
personal services abroad. 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).

\(b\) The following are exempted from the requirements in paragraph (a):

\(i\) Contractors and their dependents with a health insurance program
that includes sufficient medevac coverage as approved by the Contractor
Officer.

\(ii\) Contractors 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.

\(c\) Information on the current medevac service provider, including
application procedures, is available from the Contracting Officer.

13\. [FAR Clauses]{.underline}

The following FAR Clauses are always to be used along with the General
Provisions. They are required in full text.

1\. Covenant Against Contingent Fees 52.203-5

2\. Disputes 52.233-1 (Alternate 1)

3\. Preference for U.S. Flag Air Carriers 52.247-63

The following FAR Clauses are to be used along with the General

Provisions, and when appropriate, be incorporated in each personal

services contract by reference:

1\. Anti-Kickback Procedures 52.203-7

2\. Limitation on Payments to Influence Certain Federal Transactions
52.203-12

3\. Audit and Records\--Negotiation 52.215-2

4\. Privacy Act Notification 552.224-1

5\. Privacy Act 52.224-2

6\. Taxes\--Foreign Cost Reimbursement Contracts 52.229-8

7\. Interest 52.232-17

8\. Limitation of Cost 52.232-20

9\. Limitation of Funds 52.232-22

10\. Assignment of Claims 52.232-23

11\. Protection of Government Buildings, Equipment, and Vegetation
52.237-2

12\. Notice of Intent to Disallow Costs 52.242-1

13\. Inspection 52.246-5

14\. Limitation of Liability\--Services 52.246-25