76660 Federal Register / Vol. 69, No. 245 / Wednesday, December 22, 2004 / Proposed Rules 

Methyl Chloroform, Ozone, Reporting 

and recordkeeping requirements.

Dated: December 16, 2004. 

Michael O. Leavitt, 

Administrator.

40 CFR Part 82 is proposed to be 

amended as follows:

PART 82—PROTECTION OF 

STRATOSPHERIC OZONE 

1. The authority citation for part 82 

continues to read as follows:

Authority: 42 U.S.C. 7414, 7601, 7671–

7671q.

Subpart A—Production and 

Consumption Controls 

2. Section 82.4 is amended by revising 

the table in paragraph (n)(2) to read as 

follows:

§ 82.4 Prohibitions for class I controlled 

substances.

* * * * *

(n) * * * 

(2) * * *

TABLE I.—ESSENTIAL USE ALLOCATION FOR CALENDAR YEAR 2005 

Company Chemical Quantity

(metric tons) 

(i) Metered Dose Inhalers (for oral inhalation) for Treatment of Asthma and Chronic Obstructive Pulmonary Disease 

Armstrong Pharmaceuticals ..................................................... CFC–11, or CFC–12, or CFC–114 ......................................... 29 

Aventis Pharmaceutical Products ............................................ CFC–11, or CFC–12, or CFC–114 ......................................... 57 

Boehringer Ingelheim Pharmaceuticals ................................... CFC–11, or CFC–12, or CFC–114 ......................................... 480 

Schering-Plough Corporation .................................................. CFC–11, or CFC–12, or CFC–114 ......................................... 816 

3M Pharmaceuticals ................................................................ CFC–11, or CFC–12, or CFC–114 ......................................... 69.18 

Wyeth ....................................................................................... CFC–11, or CFC–12, or CFC–114 ......................................... 73.40 

* * * * *

[FR Doc. 04–27994 Filed 12–21–04; 8:45 am] 

BILLING CODE 6560–50–P

DEPARTMENT OF STATE

48 CFR Parts 619, 625, 628, and 652 

[Public Notice 4938] 

RIN 1400–AB90 

Department of State Acquisition 

Regulation

AGENCY: State Department.

ACTION: Proposed rule.

SUMMARY: This proposed rule makes 

three changes to the DOSAR. It revises 

the DOSAR to: Formalize Department 

policy regarding the application of the 

Small Business Act to contracts 

awarded by domestic contracting 

activities where contract performance 

takes place overseas; add language to 

deal with U.S. Government support to 

contractors performing overseas; and, 

revise the coverage regarding Defense 

Base Act insurance.

DATES: The Department will accept 

comments from the public up to 60 days 

from December 22, 2004.

ADDRESSES: You may submit comments, 

identified by any of the following 

methods: 

• E-mail: ginesgg@state.gov. You 

must include the RIN in the subject line 

of your message. 

• Mail (paper, disk, or CD–ROM 

submissions): Gladys Gines, 

Procurement Analyst, Department of 

State, Office of the Procurement 

Executive, 2201 C Street, NW., Suite 

603, State Annex Number 6, 

Washington, DC 20522–0602. 

• Fax: 703–875–6155. 

Persons with access to the Internet 

may also view this notice and provide 

comments by going to the 

regulations.gov Web site at: http://

www.regulations.gov/index.cfm.

FOR FURTHER INFORMATION CONTACT:

Gladys Gines, Procurement Analyst, 

Department of State, Office of the 

Procurement Executive, 2201 C Street, 

NW., Suite 603, State Annex Number 6, 

Washington, DC 20522–0602; e-mail 

address: ginesgg@state.gov.

SUPPLEMENTARY INFORMATION: As 

indicated in the Summary, the proposed 

rule makes three changes to the DOSAR, 

as follows: 

• DOSAR 619.000 is added to 

formalize the Department’s policy 

regarding the application of the Small 

Business Act to contracts awarded by 

domestic contracting activities (i.e., 

those located in the United States) 

where contract performance takes place 

overseas. Currently, FAR 19.000(b) 

states that part 19, with the exception of 

subpart 19.6, applies ‘‘only in the 

United States or its outlying areas.’’ This 

language is ambiguous and subject to 

interpretation. While the application is 

clear with respect to contracts both 

awarded and performed in the United 

States (it applies) and to contracts both 

awarded and performed outside the 

United States (it does not apply), the 

gray area is its applicability to contracts 

awarded by contracting offices located 

in the United States but where contract 

performance takes place overseas. The 

Department has subsequently followed 

an informal policy of applying part 19 

to such contracts. This DOSAR change, 

therefore, states this policy in explicit 

terms. 

• A new DOSAR subpart 625.71 is 

added to address the issue of the 

Department’s administrative, logistical, 

and security support of contractor 

personnel performing overseas in 

locations where a contingency operation 

is ongoing or in high-risk locations. 

Essentially, the policy requires that 

contractors furnish their own in-country 

non-U.S. Government administrative, 

logistical, and security support. If the 

Department authorizes the use of U.S. 

Government-provided support, that 

support shall be set forth in the 

Statement of Work. An associated 

contract clause is added at 652.225–72. 

The clause is mandatory in Department 

contracts when the contract is in 

support of the operations/missions at 

one or more U.S. diplomatic or consular 

missions, and the location of the U.S. 

diplomatic or consular mission at which 

the work is to be performed is 

designated as a contingency operation, 

as defined in FAR 2.101. The clause is 

optional for use in contracts in support 

of the operations/missions at one or 

more U.S. diplomatic or consular 

missions in situations where a military 

contingency operation does not exist, 

but a high risk to personnel or property 

is known or anticipated. 

• Subpart 628.3 is revised to clarify 

the application of Defense Base Act 

(DBA) insurance to local and third 

country nationals. The Department of 

Federal Register / Vol. 69, No. 245 / Wednesday, December 22, 2004 / Proposed Rules 76661

Labor (DOL) has granted the Department 

of State (DOS) waivers to cover local 

and third country nationals. These 

waivers state that DOS contractors need 

not provide DBA insurance for those 

DOS contractor employees who are local 

or third country nationals. However, the 

DOL waivers state that in lieu of DBA 

insurance, the DOS contractors must 

provide workers’ compensation benefits 

to local and third country nationals in 

accordance with local law. The 

Department of State did not interpret 

the waivers as a DOL requirement for 

DOS contractors to provide DBA 

insurance to local or third country 

national contractor employees in 

countries where no workers’

compensation law existed. Nevertheless, 

DOL recently stated that the absence of 

local workers’ compensation laws in 

certain countries renders the DOL 

waivers ‘‘ineffective’’, and that where 

there is no local workers’’ compensation 

law, DOS contractors must provide local 

and third country national employees 

with the DBA insurance. As a result, the 

Department is revising Subpart 628.3 to 

clarify this issue. In addition, the 

revision includes language regarding a 

statutory exemption from the DBA for 

contractor employees who perform work 

on an intermittent basis for not more 

than 90 days in a calendar year. This 

exemption is stated in Section 16 of the 

State Department Basic Authorities Act 

(22 U.S.C. 2680a), as amended. The 

DOSAR clause at 652.228–71 is revised 

accordingly. In addition, a new 

solicitation provision is added at 

652.228–70. The purpose of the 

provision is to request information from 

prospective contractors on whether or 

not any covered contractor employees 

will be employed on the resultant 

contract. Finally, in looking at 

appropriate revisions to the DOSAR 

provisions at 652.228–74 and 652.228–

76, it was determined that one provision 

to cover all types of contracts could be 

used. DOSAR 652.228–76 is therefore 

removed and 652.228–74 is revised to 

cover all contract types as opposed to 

just fixed-price. 

Regulatory Findings 

Administrative Procedure Act 

In accordance with provisions of the 

Administrative Procedure Act governing 

rules promulgated by federal agencies 

that affect the public (5 U.S.C. 552), the 

Department is publishing this proposed 

rule and inviting public comment. 

Regulatory Flexibility Act

The Department of State, in 

accordance with the Regulatory 

Flexibility Act (5 U.S.C. 605(b)), has 

reviewed this regulation and, by 

approving it, certifies that this rule will 

not have a significant economic impact 

on a substantial number of small 

entities. 

Unfunded Mandates Act of 1995

This rule will not result in the 

expenditure by State, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

in any year and it will not significantly 

or uniquely affect small governments. 

Therefore, no actions were deemed 

necessary under the provisions of the 

Unfunded Mandates Reform Act of 

1995. 

Small Business Regulatory Enforcement 

Fairness Act of 1996

This rule is not a major rule as 

defined by section 804 of the Small 

Business Regulatory Enforcement Act of 

1996. This rule will not result in an 

annual effect on the economy of $100 

million or more; a major increase in 

costs or prices; or significant adverse 

effects on competition, employment, 

investment, productivity, innovation, or 

on the ability of United States-based 

companies to compete with foreign 

based companies in domestic and 

import markets. 

Executive Order 13132

This regulation will not have 

substantial direct effects on the States, 

on the relationship between the national 

government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. Therefore, in 

accordance with section 6 of Executive 

Order 13132, it is determined that this 

rule does not have sufficient federalism 

implications to require consultations or 

warrant the preparation of a federalism 

summary impact statement. 

Paperwork Reduction Act 

Information collection requirements 

have been approved under the 

Paperwork Reduction Act of 1980 by 

OMB, and have been assigned OMB 

control number 1405–0050.

List of Subjects in 48 CFR Parts 619, 

625, 628, 652

Government procurement.

Accordingly, for the reasons set forth 

in the preamble, title 48, chapter 6 of 

the Code of Federal Regulations is 

proposed to be amended as follows: 

1. The authority citation for 48 CFR 

parts 619, 625, 628, and 652 continues 

to read as follows:

Authority: 40 U.S.C. 486(c); 22 U.S.C. 

2658.

Subchapter D—Socioeconomic Programs

PART 619—SMALL BUSINESS 

PROGRAMS 

2. A new section 619.000 is added to 

read as follows:

619.000 Scope of part. 

(b) Notwithstanding FAR 19.000(b), it 

is the Department’s policy to provide 

maximum opportunities for U.S. small 

businesses in all legislatively specified 

categories to participate in the 

acquisition process. Therefore, DOS 

contracts that are awarded domestically 

for performance overseas shall be 

subject to the Small Business Act as a 

matter of policy. Contracts awarded 

overseas should comply on a voluntary 

basis, where practicable.

PART 625—FOREIGN ACQUISITION 

3. A new Subpart 625.71, consisting 

of sections 625.7101, 625.7101–1, and 

625.7101–2, is added to read as follows:

Subpart 625.71—Contractor Personnel 

Performing Under Department of State 

Contracts Outside the United States

Sec. 

625.7101 Government administrative, 

logistical, and security support of 

contractor personnel. 

625.7101–1 Policy. 

625.7101–2 Contract clause.

Subpart 625.71—Contractor Personnel 

Performing Under Department of State 

Contracts Outside the United States

625.7101 Government administrative, 

logistical, and security support of 

contractor personnel.

625.7101–1 Policy. 

(a) This subpart does not apply to 

personal services contracts with 

individuals. 

(b) Contractors shall provide their 

own in-country administrative, 

logistical, and security support for their 

personnel who are performing work at 

a diplomatic or consular mission 

outside the United States, unless 

otherwise specified in the contract (see

paragraph (c) of this section). For the 

purposes of this subpart, ‘‘at a 

diplomatic or consular mission’’ is 

defined as any location under the span 

of influence of a specific diplomatic or 

consular mission.

(c) If the Government authorizes the 

use of Government-provided support, 

the Government shall set forth the exact 

support to be authorized in the 

Statement of Work. 

(d) Contracting officers shall 

document the contract file with the 

basis for the decision to provide 

support.

76662 Federal Register / Vol. 69, No. 245 / Wednesday, December 22, 2004 / Proposed Rules 

625.7101–2 Contract clause. 

(a) The contracting officer shall insert 

the clause at 652.625–72, Contractor 

Personnel Performing Under 

Department of State Contracts Outside 

the United States, in solicitations and 

contracts for services or construction, 

when the following conditions are met: 

(1) The contract is in support of the 

operations/missions at one or more 

United States diplomatic or consular 

missions; and 

(2) The location of the United States 

diplomatic or consular mission at which 

the work is to be performed is 

designated as a contingency operation, 

as defined in FAR 2.101. 

(b) The contracting officer may insert 

the clause at 652.625–72 in contracts in 

support of the operations/missions at 

one or more United States diplomatic or 

consular missions in situations where a 

military contingency operation does not 

exist but a high risk to personnel or 

property is known or anticipated.

Subchapter E—General Contracting 

Requirements

PART 628—BONDS AND INSURANCE 

4. Subpart 628.3 is revised to read as 

follows:

Subpart 628.3—Insurance

628.305 Overseas workers’ compensation 

and war-hazard insurance. 

(b)(1) It is the Department’s policy 

that acquisitions for services, including 

construction but excluding personal 

services contracts, that require 

contractor personnel to perform work 

outside of the United States, shall 

include the contractual obligation for 

coverage under the Defense Base Act (42 

U.S.C. 1651–1654, as amended), for 

covered contractor employees. For the 

purposes of this section, ‘‘covered 

contractor employees’’ includes the 

following individuals: 

(i) United States citizens or residents; 

(ii) Individuals hired in the United 

States or its possessions, regardless of 

citizenship; and 

(iii) Local nationals and third country 

nationals where contract performance 

takes place in a country where there are 

no local workers’ compensation laws. 

(2) Exceptions are discussed in 

paragraphs (e)(1) and (f) of this section. 

(c) The Department of State has 

entered into a contract with an 

insurance broker and carrier to provide 

Defense Base Act insurance, at a fixed 

rate for services and construction, to 

cover DOS contracts that require 

performance overseas by covered 

contractor employees. Upon award of a 

contract that requires Defense Base Act 

insurance, the contracting officer shall 

notify the contractor of the name of the 

insurance broker from which the 

contractor must acquire the Defense 

Base Act insurance. 

(d) The authority to request a waiver 

from the Secretary of Labor of a 

particular country, as set forth in FAR 

28.305(d), is reserved to the Secretary of 

State. 

(e)(1) The Secretary of Labor has 

waived the applicability of the Defense 

Base Act for all DOS service contracts, 

including construction, for contractor 

employees who are local nationals or 

third country nationals. This waiver is 

conditioned on the requirement for the 

contractor to provide workers’

compensation benefits against the risk 

of work injury or death and assume 

liability toward the employees and their 

beneficiaries for war-hazard injury, 

death, capture, or detention as 

prescribed by the applicable local laws. 

(2) If contract performance takes place 

in a country where there are no local 

workers’ compensation laws, any local 

and third country national contractor 

employees are considered to be 

‘‘covered contractor employees’’, and 

the contractor shall acquire Defense 

Base Act insurance for those employees 

pursuant to the contract between the 

Department of State and the Defense 

Base Act insurance broker. 

(f) Section 16 of the State Department 

Basic Authorities Act (22 U.S.C. 2680a), 

as amended, provides that the Defense 

Base Act shall not apply with respect to 

such contracts as the Secretary of State 

determines are contracts with persons 

employed to perform work for the 

Department of State on an intermittent 

basis for not more than 90 days in a 

calendar year. The Department of State 

has established that ‘‘persons’’ includes 

individuals hired by companies under 

contract with the Department. The 

Procurement Executive has the 

authority to issue the waivers for these 

individuals. However, as required by 

FAR 28.305(e), the contractor shall 

provide workers’ compensation 

coverage against the risk of work injury 

or death and assume liability toward the 

employees and their beneficiaries for 

war-hazard injury, death, capture, or 

detention.

628.309 Contract clauses for workers’

compensation insurance.

628.309–70 DOSAR provisions and clause. 

(a) The contracting officer shall insert 

the provision at 652.228–70, Defense 

Base Act—Covered Contractor 

Employees, in all solicitations for 

services and construction to be 

performed outside of the United States. 

(b) The contracting officer shall insert 

the clause at 652.228–71, Workers’

Compensation Insurance (Defense Base 

Act)—Services, in solicitations and 

contracts for services to be performed 

outside of the United States when there 

is a reasonable expectation that offers 

will include covered contractor 

employees, as defined in 628.305(b)(1). 

If the contracting officer is unsure as to 

whether offers will include covered 

contractor employees, the contracting 

officer shall insert the clause. If the 

contract is for construction, the 

contracting officer shall insert the clause 

with its Alternate I. 

(c) The contracting officer shall insert 

the provision at 652.228–74, Defense 

Base Act Insurance Rates—Limitation, 

in solicitations for services or 

construction to be performed outside of 

the United States when there is a 

reasonable expectation that offers will 

include covered contractor employees, 

as defined in 628.305(b)(1). If the 

contracting officer is unsure as to 

whether offers will include covered 

contractor employees, the contracting 

officer shall insert the provision.

Subchapter H—Clauses and Provisions

PART 652—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

5. Section 652.225–72 is added to 

read as follows:

652.225–72 Contractor Personnel 

Performing Under Department of State 

Contracts Outside the United States. 

As prescribed in 625.7101–2, insert 

the following clause:

Contractor Personnel Performing Under 

Department of State Contracts Outside the 

United States (MO/YR) 

(a) Definition. For the purposes of this 

clause, ‘‘at a diplomatic or consular mission’’

is defined as any location under the span of 

influence of a specific diplomatic or consular 

mission. 

(b) General. Performance of this contract 

may require that contractor personnel work 

at locations outside the United States in 

support of one or more United States 

diplomatic or consular missions. Contract 

performance in support of such missions may 

be inherently dangerous. 

(c) Support. (1) Unless specified elsewhere 

in the contract or as provided in paragraph 

(c)(2) of this clause, the Contractor is 

responsible for all administrative, logistical, 

and security support required for contractor 

personnel engaged in this contract. 

(2) The Government may authorize or may 

require the use of certain Governmentprovided administrative, logistical, security, 

or in-country support. 

(d) Personnel data. If requested by the 

contracting officer, the Contractor shall 

maintain and provide to the designated 

Government official(s) a current list of all

Federal Register / Vol. 69, No. 245 / Wednesday, December 22, 2004 / Proposed Rules 76663

employees in the area of performance. The 

contracting officer shall indicate if this list 

must also contain each employee’s next-ofkin notification information. The contracting 

officer shall designate the Government 

official to receive this data and the method 

for submission. 

(e) Pre-performance requirements. The 

Contractor shall ensure that the following 

requirements are met before sending an 

employee to the work site. Specific 

requirements for each category will be set 

forth in the Statement of Work. The 

Contractor shall ensure that—

(1) All applicable specified security and 

background checks are completed; 

(2) All personnel are medically and 

physically fit to endure the rigors of 

performance and have received all required 

vaccinations; 

(3) All personnel possess the required 

licenses to operate all vehicles or equipment 

necessary to perform the contract, if required 

by the position; 

(4) All personnel have all necessary 

passports, visas, entry permits, and other 

documents required for contractor personnel 

to enter and exit the foreign country, 

including those required for in-transit 

countries; 

(5) All personnel have received a country 

clearance, if required by the Chief of Mission; 

(6) All personnel have received personal 

security training. The training must at a 

minimum cover safety and security issues 

facing employees overseas; identify safety 

and security contingency planning activities; 

and identify ways to utilize safety and 

security personnel and other resources 

appropriately; and, 

(7) All personnel who are U.S. citizens are 

registered with the U.S. Embassy or 

Consulate with jurisdiction over the area of 

operations. Personnel shall register on-line at 

http://www.travel.state.gov. 

(f) Processing and departure points. The 

Contractor and its employees shall use a 

point of departure and transportation mode 

when directed by the contracting officer. 

(g) Military clothing and protective 

equipment. Contractor personnel are 

prohibited from wearing military clothing 

unless specifically authorized by the 

contracting officer. However, contractor 

personnel may wear specific items required 

for safety and security such as ballistic, 

nuclear, biological, or chemical protective 

clothing. 

(h) Weapons. (1) Contractor personnel may 

not possess privately owned firearms unless 

specifically authorized by the contracting 

officer. 

(2) If the contracting officer authorizes the 

carrying of firearms in accordance with the 

Statement of Work, the Regional Security 

Officer may issue weapons and ammunition 

to the Contractor for issuance to specified 

contractor employees. The Contractor shall 

ensure that its personnel who receive 

weapons are adequately trained, are not 

barred from possession of a firearm by 18 

U.S.C. 922(d)(9) or (g)(9), and adhere to all 

guidance and orders issued by the Regional 

Security Officer regarding possession, use, 

safety, and accountability of weapons and 

ammunition. Upon a revocation by the 

contracting officer of a contractor’s 

authorization to issue firearms, the 

Contractor shall ensure that all Governmentissued weapons and unexpended 

ammunition are returned as directed by the 

contracting officer. Whether or not weapons 

are Government-issued, all liability for the 

use of any weapon by contractor personnel 

rests solely with the Contractor. 

(i) Next of kin notification. The Contractor 

shall be responsible for in-person notification 

of the employee-designated next of kin and 

notification as soon as possible to the U.S. 

consul responsible for the area in which the 

event occurred in the following 

circumstances: 

(1) Death of the employee; 

(2) An injury to the employee requiring 

evacuation; 

(3) The employee is missing, i.e., the 

employee’s location is unknown after a 

reasonable amount of time and search efforts 

are unsuccessful; or, 

(4) The employee is captured.

(j) Return of remains. In the event of the 

death of a contractor employee, the 

Contractor is responsible for the return of the 

remains from the point of identification to 

the location specified by the employee or 

next of kin, as applicable. The Contractor 

shall also be responsible for the return of all 

personal effects of deceased or missing 

contractor personnel, if appropriate, to next 

of kin. 

(k) Evacuation. If the Chief of Mission 

orders a mandatory evacuation of some or all 

personnel, the level of assistance provided to 

employees of the Contractor shall be the 

same as the level of assistance provided to 

other private United States citizens. In the 

event of a non-mandatory evacuation order, 

the Contractor shall maintain personnel on 

location sufficient to meet contractual 

obligations under this contract until 

instructed to evacuate by the contracting 

officer, Contracting Officer’s Representative, 

or Chief of Mission. 

(l) Changes in emergencies. The 

contracting officer or the Contracting 

Officer’s Representative may issue oral 

instructions to the Contractor in cases of 

emergencies, e.g., enemy or terrorist activity 

or natural disaster that causes an immediate 

possibility of death or serious injury to 

contractor personnel. Such oral instructions 

shall be confirmed in writing in 48 hours, or 

as soon as practicable after the emergency 

incident has subsided. 

(m) Subcontracts. The Contractor shall 

incorporate the substance of this clause, 

including this paragraph (m), in all 

subcontracts that require subcontractor 

employees to provide services at a United 

States diplomatic or consular mission outside 

the United States. 

(End of clause)

6. Section 652.228–70 is added to 

read as follows:

652.228–70 Defense Base Act—Covered 

Contractor Employees. 

As prescribed in 628.309–70(a), insert 

the following provision:

Defense Base Act—Covered Contractor 

Employees (MO/YR) 

(a) Bidders/Offerors shall indicate below 

whether or not any of the following 

categories of employees will be employed on 

the resultant contract, and, if so, the number 

of such employees:

Category Yes/No Number 

(1) United States citizens or residents 

(2) Individuals hired in the United States, regardless of citizenship 

(3) Local nationals or third country nationals where contract performance takes place in a 

country where there are no local workers’ compensation laws.

..................... Local nationals: ______. 

Third Country Nationals: ______. 

(4) Local nationals or third country nationals where contract performance takes place in a 

country where there are local workers’ compensation laws.

..................... Local nationals: ______. 

Third Country Nationals: ______. 

(b) If the bidder/offeror has indicated ‘‘yes’’

in block (a)(4) of this provision, the bidder/

offeror shall submit, as part of its offer, a 

statement that indicates that such local 

nationals and/or third country nationals will 

be provided workers’ compensation coverage 

against the risk of work injury or death under 

a local workers’ compensation law. For those 

employees, the bidder/offeror shall also 

assume liability toward the employees and 

their beneficiaries for war-hazard injury, 

death, capture, or detention, in accordance 

with the clause at FAR 52.228–4. 

(c) If the bidder/offeror has indicated ‘‘yes’’

in blocks (a)(1), (2), or (3) of this provision, 

the bidder/offeror shall compute Defense 

Base Act insurance costs covering those 

employees pursuant to the terms of the 

contract between the Department of State and 

the Department’s Defense Base Act insurance 

carrier at the rates specified in DOSAR 

652.228–74, Defense Base Act Insurance 

Rates ‘‘Limitation. If DOSAR provision 

652.228–74 is not included in this 

solicitation, the bidder/offeror shall notify 

the contracting officer before the closing date 

so that the solicitation can be amended 

accordingly. 

(End of provision)

7. Section 652.228–71 is revised to 

read as follows:

76664 Federal Register / Vol. 69, No. 245 / Wednesday, December 22, 2004 / Proposed Rules 

652.228–71 Workers’ Compensation 

Insurance (Defense Base Act)—Services. 

As prescribed in 628.309–70(b), insert 

the following clause:

Workers’ Compensation Insurance (Defense 

Base Act)—Services (MO/YR)

(a) This clause supplements FAR 52.228–

3. For the purposes of this clause, ‘‘covered 

contractor employees’’ includes the following 

individuals: 

(1) United States citizens or residents; 

(2) Individuals hired in the United States 

or its possessions, regardless of citizenship; 

and 

(3) Local nationals and third country 

nationals where contract performance takes 

place in a country where there are no local 

workers’ compensation laws. 

(b) The Contractor shall procure Defense 

Base Act (DBA) insurance pursuant to the 

terms of the contract between the Department 

of State and the Department’s DBA insurance 

carrier for covered contractor employees, 

unless the Contractor has a DBA selfinsurance program approved by the 

Department of Labor. The Contractor shall 

submit a copy of the Department of Labor’s 

approval to the contracting officer upon 

contract award, if applicable. 

(c) The current rate under the Department 

of State contract is [contracting officer insert 

rate] of compensation for services. 

(d) The Contractor shall insert a clause 

substantially the same as this in all 

subcontracts. The Contractor shall require 

that subcontractors insert a similar clause in 

any of their subcontracts. 

(e) Should the rates for DBA insurance 

coverage increase or decrease during the 

performance of this contract, the contracting 

officer shall modify this contract accordingly. 

(f) The Contractor shall demonstrate to the 

satisfaction of the contracting officer that the 

equitable adjustment as a result of the 

insurance increase or decrease does not 

include any reserve for such insurance. 

Adjustment shall not include any overhead, 

profit, general and administrative expenses, 

etc. 

(g) Section 16 of the State Department 

Basic Authorities Act (22 U.S.C. 2680a), as 

amended, provides that the Defense Base Act 

shall not apply with respect to such contracts 

as the Secretary of States determines are 

contracts with persons employed to perform 

work for the Department of State on an 

intermittent basis for not more than 90 days 

in a calendar year. ‘‘Persons’’ includes 

individuals hired by companies under 

contract with the Department. The 

Procurement Executive has the authority to 

issue the waivers for these Contractor 

employees. For those employees, the 

Contractor shall provide workers’

compensation coverage against the risk of 

work injury or death and assume liability 

toward the employees and their beneficiaries 

for war-hazard injury, death, capture, or 

detention. 

(End of clause) 

Alternate I. (MO/YR) If the contract is for 

construction, as prescribed in 628.309–70(a), 

substitute the following paragraph (c) for 

paragraph (c) of the basic clause:

(c) The current rate under the Department 

of State contract is [contracting officer insert 

rate] of compensation for construction.

8. Section 652.228–74 is revised to 

read as follows:

652.228–74 Defense Base Act Insurance 

Rates—Limitation. 

As prescribed in 628.309–70(c), insert 

the following provision:

Defense Base Act Insurance Rates—

Limitation (MO/YR) 

(a) The Department of State has entered 

into a contract with an insurance carrier to 

provide Defense Base Act (DBA) insurance to 

Department of State covered contractor 

employees at a contracted rate. For the 

purposes of this provision, ‘‘covered 

contractor employees’’ includes the following 

individuals: 

(1) United States citizens or residents; 

(2) Individuals hired in the United States 

or its possessions, regardless of citizenship; 

and 

(3) Local nationals and third country 

nationals where contract performance takes 

place in a country where there are no local 

workers’ compensation laws. 

(b) In preparing the cost proposal, the 

bidder/offeror shall use the following rates in 

computing the cost for DBA insurance: 

Services @ [contracting officer insert 

current rate] of compensation; or 

Construction @ [contracting officer insert 

current rate] of compensation. 

(c) Bidders/offerors shall compute the total 

compensation (direct salary plus differential, 

but excluding per diem, housing allowance 

and other miscellaneous allowances) to be 

paid to covered contractor employees and the 

cost of the DBA insurance in their bid/offer 

using the foregoing rate. The DBA insurance 

cost shall be included in the total fixed price 

or estimated cost. The Department shall 

reimburse the DBA insurance costs directly 

to the Contractor. 

(End of provision)

9. Section 652.228–76 is removed.

Corey M. Rindner, 

Procurement Executive, Bureau of 

Administration, Department of State.

[FR Doc. 04–27990 Filed 12–21–04; 8:45 am] 

BILLING CODE 4710–24–P

DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety 

Administration 

49 CFR Part 371 

[Docket No. FMCSA–2004–17008] 

RIN 2126–AA84 

Brokers of Household Goods by Motor 

Vehicle

AGENCY: Federal Motor Carrier Safety 

Administration (FMCSA), DOT.

ACTION: Advance notice of proposed 

rulemaking (ANPRM); request for 

comments on petition for rulemaking. 

SUMMARY: FMCSA seeks comments on 

whether additional regulations for 

property brokers of household goods 

(HHG) in interstate or foreign commerce 

are necessary and, if so, what these 

regulations should include. We have 

granted a petition from the American 

Moving and Storage Association to 

initiate this ANPRM. HHG property 

brokers sell, offer for sale, negotiate for, 

or hold themselves out by solicitation, 

advertisement, or otherwise as selling, 

providing, or arranging for, 

transportation of HHG in interstate 

commerce by motor carriers for 

compensation. This action is necessary 

to help determine whether the general 

property broker regulations have failed 

to adequately protect consumers during 

HHG transportation.

DATES: You must submit comments 

concerning this ANPRM on or before 

February 22, 2005.

ADDRESSES: You may submit general 

comments identified by DOT Docket 

Management System Number FMCSA–

2004–17008 by any of the following 

methods: 

• Web site: http://dms.dot.gov.

Follow the instructions for submitting 

comments on the DOT electronic docket 

site. 

• Fax: 1–202–493–2251. 

• Mail: Docket Management Facility; 

U.S. Department of Transportation, 400 

Seventh Street, SW., Nassif Building, 

Room PL–401, Washington, DC 20590–

0001. 

• Hand Delivery: Room PL–401 on 

the plaza level of the Nassif Building, 

400 Seventh Street, SW., Washington, 

DC, between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

online instructions for submitting 

comments. 

Instructions: All submissions must 

include the agency name and docket 

number or Regulatory Identification 

Number for this potential regulatory 

action. Note that all comments received 

will be posted without change to

http://dms.dot.gov, including any 

personal information provided. Please 

see the Privacy Act heading for further 

information.

FOR FURTHER INFORMATION CONTACT: Mr. 

Jim Keenan, (202) 385–2400, 

Commercial Enforcement Division (MC–

ECI), FMCSA, 400 Seventh Street, SW., 

Washington, DC 20590.

SUPPLEMENTARY INFORMATION: Docket:

For access to the docket to read