[Federal Register Volume 71, Number 205 (Tuesday, October 24, 2006)]
[Proposed Rules]
[Pages 62229-62230]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-17543]
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AGENCY FOR INTERNATIONAL DEVELOPMENT
48 CFR Part 7
[USAID Acquisition Regulation ``AIDAR'']
RIN 0412-AA56
Application of Post Differential and Danger Pay Allowances To
Extended Workweeks Under Cost-Reimbursement Type Contracts
AGENCY: United States Agency for International Development.
ACTION: Proposed rule.
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SUMMARY: The U.S. Agency for International Development (USAID) is
proposing to amend its regulations by adding how Post-differential and
Danger pay allowances will be applied to extended workweeks under cost-
reimbursement type contracts.
DATES: Submit comments on or before December 26, 2006.
ADDRESSES: Submit comments, identified by title of the Proposed Action,
and RIN number by any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov. Follow the
instructions for submitting comments.
E-mail: [email protected]. Include title of the
proposed action, and RIN number in the subject line of the message.
Fax: 202-216-3135.
Mail: U. S. Agency for International Development, Office of
Acquisition & Assistance, Policy Division, 1300 Pennsylvania Avenue,
NW., Room 7.9-18, Washington, DC 20523-0001.
Instructions: All submissions must include the title of the
proposed action, and Regulatory Information Number (RIN) for this
rulemaking. Please include your name, title, organization, postal
address, telephone number, and e-mail address in the text of the
message.
FOR FURTHER INFORMATION CONTACT: Carol Ketrick, Telephone: 202-712-
1382, E-mail: [email protected].
SUPPLEMENTARY INFORMATION:
Public Participation: Because security screening precautions have
slowed the delivery and dependability of surface mail to USAID/
Washington, USAID recommends sending all comments to the Federal
eRulemaking Portal, e-mail address, or fax number listed above (all
comments must be in writing to be reviewed). You may submit comments by
electronic mail avoiding the use of any special characters and any form
of encryption. All comments will be made available for public review
without change, including any personal information provided, from three
days after receipt to finalization of rule at http://www.usaid.gov/policy/regulations/index.html.
A. Background
Based on a recent surge in requests to interpret the applicable
regulations for Post differential and Danger pay allowances associated
with contract awards in Iraq and Afghanistan, we feel it prudent to
amend 48 CFR 752.7028 of the USAID Acquisition Regulations (the
``AIDAR'') to clarify the existing policy. This clarification brings
the policy in line with that applied to direct-hire employees. The
Department of State's Standardized Regulations (DSSR) provide those
regulations governing allowances, differentials and defraying of
official residence expenses for employees in foreign areas. The DSSR
provides the following definitions for the allowances noted above as
follows: ``Post allowance'' is ``a cost-of-living allowance granted to
an employee officially stationed at a post in a foreign area where the
cost of living, exclusive of quarters costs, is substantially higher
than in Washington, DC''. It is additional compensation for service at
places in foreign areas where conditions of environment differ
substantially from conditions of environment in the continental U.S.
and warrant additional compensation as a recruitment and retention
incentive. ``Danger Pay Allowance'' means the ``additional compensation
of up to 35 percent over basic compensation granted to employees for
service at designated danger pay posts.'' Direct hire employees are
compensated in accordance with the DSSR which defines basic
compensation as the rate of compensation fixed by statute for the
position held by an employee: administratively in conformity with rates
paid by the Government for work of a comparable level of difficulty and
responsibility in the continental United States, before any deduction
is made and without taking into consideration any additional
compensation such as overtime pay, night pay differential, hazard
differential, extra pay for work on holidays, post differential, and
allowances * * *''. Further, the Department of State Foreign Affairs
Manual, (FAM) 3 FAM-2333.1-1 establishes the basic workweek for full-
time employees as being a 40-hour workweek.
Recent contract awards in Iraq and Afghanistan have resulted in
circumstances where the contractor may be authorized to work in excess
of a 40-hour workweek. Mission direct-hire employees have, in some
instances, worked more than a 40-hour workweek; however, for purposes
of calculating Danger pay allowance, these additional hours are not
included in the amount defined as ``basic compensation''. In order to
clarify USAID policy aligning payment of allowances with that of
direct-hire employees, the Proposed Rule would amend 48 CFR 752.7028 to
reflect USAID's policy that Post-differential and Danger Pay allowances
are to be calculated by applying the percentage rates to a maximum 40-
hour workweek, regardless of whether the contractor has been authorized
a workweek in excess of 40 hours. The proposed amendments made under
this case are intended to be applicable only to USAID cost
reimbursement type contracts; however, the policy would also apply to
contracts or task orders using other than a cost-reimbursement pricing
structure but that allow for the reimbursement of costs for these
allowances. USAID is interested in hearing from contractors regarding
the effect on contractors' standard policies regarding employee
benefits.
USAID also seeks comment on the inclusion of an exception to the
above limitation which would allow Mission Directors to authorize
calculation of post-differential and danger percentages applied to a
workweek in excess of 40 hours as approved by a contracting officer.
In addition to the clarification of the policy, the applicable
clause is modified to delete reference to the Supplemental
[[Page 62230]]
post allowance to reflect the elimination of that allowance from the
Department of States' Standardized Regulations (Government Civilians,
Foreign Areas), Chapter 230.
B. Regulatory Planning and Review
This is not a significant regulatory action and, therefore, is
subject to review under Section 6(b) of Executive Order 12866,
Regulatory Planning and Review, dated September 30, 1993. This rule is
not a major rule under 5 U.S.C. 804.
C. Regulatory Flexibility Act
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601 et seq.), USAID has considered the economic
impact of the rule and has determined that its provisions would not
have a significant economic impact on a substantial number of small
entities.
D. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the proposed
changes to the AIDAR do not impose information collection requirements
that require the approval of the Office of Management and Budget under
44 U.S.C. 3501 et seq.
List of Subjects in 48 CFR Part 7
Government procurement.
For the reasons set forth in the preamble, the U. S. Agency for
International Development proposes to amend 48 CFR part 7 as follows:
1. The authority citation for 48 CFR part 7 continues to read as
follows:
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 752--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
2. Amend Section 752.7028 by revising paragraph (a), removing and
reserving paragraph (e), and adding a sentence at the end of paragraph
(j)(1) to read as follows:
Sec. 752.7028 Differential and allowances.
* * * * *
(a) Post differential. 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.
(1) In areas where post differential is paid to USAID direct-hire
employees, post differentials 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). Payments for post differential are
limited to that percentage rate applied to a maximum 40-hour work week,
regardless of whether the contracting officer has authorized a work
week in excess of 40 hours. Exceptions to this policy may be granted
either by the Mission Director or the Assistant Administrator having
program responsibility for the project.
(2) 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.
* * * * *
(e) Reserved.
* * * * *
(j) (1) * * * Payments for danger pay are limited to that
percentage of basic compensation as established by the Standardized
Regulations applied to a maximum 40-hour work week, regardless of
whether the contracting officer has authorized a work week in excess of
40 hours. Exceptions to this policy may be granted either by the
Mission Director or the Assistant Administrator having program
responsibility for the project.
Dated: October 12, 2006.
Michael F. Walsh,
Procurement Executive.
[FR Doc. E6-17543 Filed 10-23-06; 8:45 am]
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