[Federal Register Volume 72, Number 75 (Thursday, April 19, 2007)]
[Rules and Regulations]
[Pages 19668-19670]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-7437]
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AGENCY FOR INTERNATIONAL DEVELOPMENT
48 CFR Parts 731 and 752
[USAID Acquisition Regulation Acquisition Circular (AIDAC) 2007-1]
RIN 0412-AA60
Various Administrative Changes to the USAID Acquisition
Regulations (AIDAR)
AGENCY: United States Agency for International Development.
ACTION: Final rule.
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SUMMARY: The U.S. Agency for International Development (USAID) is
amending its Agency for International Development Acquisition
Regulation (AIDAR) to: Remove all references to Office of Personnel
Management's (OPM) obsolete Executive Service (ES-6) as the contract
employee salary threshold and replace with revised terminology; revise
the Medical Evacuation (MEDEVAC) Services clause and provisions by
deleting the requirement for contractors to purchase MEDEVAC services
insurance through a USAID centrally awarded contract; remove clause
752.7016 FAMILY PLANNING AND POPULATION ASSISTANCE ACTIVITIES (AUG
1986); and update the title of Office of Procurement (OP) to Office of
Acquisition and Assistance (OAA) throughout.
DATES: This rule is effective July 18, 2007 without further action,
unless adverse comment is received by May 21, 2007. If adverse comment
is received, USAID will publish a timely withdrawal of the rule in the
Federal Register. Submit comments on or before May 21, 2007.
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.
Fax: 202-216-3395.
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 or fax number listed above (all
comments must be in writing to be reviewed). All comments will be made
available for public review without change, including any personal
information provided, from 3 workdays after receipt to finalization of
action at http://www.Regulations.gov.
A. Background
The AIDAR reflects agency policy regarding the maximum annual rate
of personnel compensation for contractor employees. The threshold
beyond which contract employees' salaries require contracting officer
approval is currently stated as being equivalent to OPM's ES-6 level.
In 2003, Public Law 108-136 replaced the SES grade structure with a
single, open-range ``payband''; therefore, the use of the ES-6 level as
the threshold for contracting officer approval is no longer possible.
USAID has established a new threshold, the ``USAID Contractor Salary
Threshold'' or ``USAID CST,'' which is set forth in the agency's ADS
Chapter 302 on Direct Contracting. The change to the AIDAR deletes all
references to OPM's obsolete Executive Service (ES-6) level or ``ES-6
policy'' and replaces it with this updated terminology.
Emergency medical evacuation services are for individuals involved
in accidents or suffering a sudden illness at a time when adequate
medical facilities are not available at post. USAID implemented AIDAR
752.228-70 ``Medical Evacuation (MEDEVAC) Services (Mar 1993)'',
Appendix D--General Provision 25 ``Medical Evacuation (MEDEVAC)
Services (Jul 1993)'', and Appendix J--General Provision 21 ``Medical
Evacuation (MEDEVAC) Services (Jul 1993)'' which required contractors
use USAID's central contract to purchase MEDEVAC
[[Page 19669]]
insurance for employees. The central contract incorporated a volume
discount for these services, thereby saving insurance costs to the
Agency. However, after more than ten years' experience with the
centrally-awarded MEDEVAC contract, we have concluded that the
difference in rates the Agency obtained through the competitive
contracting process and the rates the insurance providers were offering
to the general public was negligible and that continuing the central
MEDEVAC contract was no longer in the Agency's best interest. USAID did
not re-compete a new contract when the last MEDEVAC contract expired in
2003; therefore, the requirement is obsolete. The entire clause and
general provisions are revised both to remove the reference to the
USAID central MEDEVAC services contract and to update the language
overall.
The clause AIDAR 752.7016 FAMILY PLANNING AND POPULATION ASSISTANCE
ACTIVITIES (AUG 1986) is removed and the section reserved as the clause
was made obsolete by guidance issued under Public Law 105-277 (FY 1999
Foreign Operations Appropriations Act). The Act established new
statutory requirements for voluntary family planning projects, known as
the Tiahrt Amendment. The Tiahrt Amendment has been included in all
subsequent Foreign Operations Appropriations Acts and its requirements
will be incorporated by a proposed rule at a later date.
This document also amends the AIDAR to make editorial changes
deleting all references to Office of Procurement (M/OP) and replacing
with Office of Acquisition and Assistance (M/OAA).
B. Regulatory Planning and Review
This is not a significant regulatory action and, therefore, is not
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 Parts 731 and 752
Government procurement.
0
For the reasons set forth in the preamble under the authority at 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, the U.S.
Agency for International Development proposes to amend 48 CFR Chapter 7
as follows:
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1. The authority citation for 48 CFR parts 731 and 752 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 731--CONTRACT COST PRINCIPLES AND PROCEDURES
Subpart 731.2--Contracts With Commercial Organizations
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2. Amend section 731.205-6 by revising paragraph (b) to read as
follows:
731.205-6 Compensation for personal services.
* * * * *
(b) Salaries and wages. It is USAID policy that if an employee's
base salary plus overseas recruitment incentive, if any (see AIDAR
731.205-70) exceeds the USAID Contractor Salary Threshold (USAID CST),
as stated in USAID's Automated Directives System (ADS) Chapter 302
USAID Direct Contracting (available at http://www.usaid.gov/policy/ads/300/302.pdf), it will be allowable only if approved in writing by the
contracting officer. The contracting officer shall only provide such
approval after internal Agency procedures for review/approval of
salaries in excess of the USAID CST in ADS 302 have been followed.
USAID policies on compensation of third country national or cooperating
country national employees are set forth in AIDAR 722.170.
* * * * *
Subpart 731.3--Contracts With Educational Institutions
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3. Amend section 731.371 by revising paragraph (b)(1) to read as
follows:
731.371 Compensation for personal services.
* * * * *
(b) * * *
(1) The policies set forth in AIDAR 731.205-6(b) are also
applicable to contracts with a nonprofit organization.
* * * * *
PART 752--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
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4. Amend section 752.228-70 by revising the clause to read as follows:
752.228-70 Medical Evacuation (MEDEVAC) Services.
* * * * *
Medical Evacuation (MEDEVAC) Services (JUL 2007)
(a) Contractor must provide MEDEVAC service coverage to all U.S.
citizen, U.S. resident alien, and Third Country National employees and
their authorized dependents (hereinafter ``individual'') while overseas
under a USAID-financed direct contract. USAID will reimburse
reasonable, allowable, and allocable costs for MEDEVAC service coverage
incurred under the contract. The Contracting Officer will determine the
reasonableness, allowability, and allocability of the costs based on
the applicable cost principles and in accordance with cost accounting
standards.
(b) Exceptions. (i) The Contractor is not required to provide
MEDEVAC insurance to eligible employees and their dependents with a
health program that includes sufficient MEDEVAC coverage as approved by
the Contracting Officer.
(ii) The Mission Director may make a written determination to waive
the requirement for such coverage. The determination must be based on
findings that the quality of local medical services or other
circumstances obviate the need for such coverage for eligible employees
and their dependents located at post.
(c) Contractor must insert a clause similar to this clause in all
subcontracts that require performance by contractor employees overseas.
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5. Amend section 752.7007 by revising the date of the clause and
paragraph (b) to read as follows:
752.7007 Personnel Compensation.
* * * * *
Personnel Compensation (JUL 2007)
* * * * *
(b) Reimbursement of the employee's base annual salary plus
overseas recruitment incentive, if any, which exceed the USAID
Contractor Salary Threshold (USAID CST) stated in USAID Automated
Directives System
[[Page 19670]]
(ADS) Chapter 302 USAID Direct Contracting, must be approved in writing
by the Contracting Officer, as prescribed in 731.205-6(b) or
731.371(b), as applicable.
* * * * *
752.7016 [Removed and Reserved]
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6. Remove and reserve section 752.7016.
Subpart 753.3--Illustration of Forms
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7. Amend Appendix D to Chapter 7 as follows:
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A. Revise Section 4, paragraph (e)(3).
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B. Revise Section 7, paragraph (k)(7).
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C. Amend Section 12, General Provision 4 by revising the heading and
paragraph (b).
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D. Amend Section 12 by revising General Provision 25.
The revisions read as follows:
Appendix D to Chapter 7--Direct USAID Contracts With a U.S. citizen or
a U.S. Resident Alien for Personal Services Abroad
* * * * *
4. * * *
* * * * *
(e) * * *
(3) This Appendix applies the ``USAID Contractor Salary
Threshold (USAID CST)'' policy in Automated Directives System (ADS)
Chapter 302.3.6.8 to salaries for U.S. PSCs. Salaries in excess of
the USAID CST, which is equivalent to the maximum rate for Federal
agencies without a certified SES performance appraisal system, must
be approved by the M/OAA Director in accordance with the approval
procedures in ADS 302.3.6.8(e). This approval cannot be re-
delegated.
* * * * *
7. * * *
* * * * *
(k) * * *
(7) The approval for any salary in excess of the ``USAID
Contractor Salary Threshold (USAID CST)'', which is equivalent to
the maximum rate for Federal agencies without a certified SES
performance appraisal system, in accordance with approval procedures
in ADS 302.3.6.8(e) as required in Section 4.(e)(3);
* * * * *
12. * * *
4. Workweek And Compensation (Pay Comparability Adjustments)
(JUL 2007)
* * * * *
(b) Compensation (Pay Comparability) Adjustments. The PSC'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 (usually
in January). 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 annual ``USAID Contractor Salary
Threshold (USAID CST)'', which is equivalent to the maximum rate for
agencies without a certified SES performance appraisal system (or
the equivalent hourly rate).
* * * * *
25. Medical Evacuation (MEDEVAC) Services (JUL 2007)
(a) The PSC must obtain MEDEVAC service coverage including
coverage for authorized dependents while performing personal
services abroad.
USAID will reimburse the total cost of MEDEVAC insurance to the
PSC. The PSC must provide proof of coverage to the CO in order to
receive reimbursement.
(b) Exceptions. (1) A PSC and authorized dependents with a
health insurance program that includes sufficient MEDEVAC coverage
as approved by the Contracting Officer are not required to obtain
MEDEVAC service coverage.
(2) The Mission Director at the post of assignment may make a
written determination to waive the requirement for such coverage.
The determination must be based on findings that the quality of
local medical services or other circumstances obviate the need for
such coverage for PSCs and their dependents located at post.
0
8. Amend Appendix J to Chapter 7 in Section 12 by revising General
Provision 21 to read as follows:
Appendix J to Chapter 7: Direct USAID Contracts With Cooperating
Country Nationals and With Third Country Nationals for Personal
Services Abroad
* * * * *
12. * * *
21. MEDICAL EVACUATION (MEDEVAC) SERVICES (JUL 2007)
* * * * *
(a) The PSC must obtain MEDEVAC service coverage including
coverage for authorized dependents while performing personal
services abroad.
(b) Exceptions. (1) A PSC and authorized dependents with a
health insurance program that includes sufficient MEDEVAC coverage
as approved by the Contracting Officer are not required to obtain
MEDEVAC service coverage.
(2) The Mission Director at the post of assignment may make a
written determination to waive the requirement for such coverage.
The determination must be based on findings that the quality of
local medical services or other circumstances obviate the need for
such coverage for PSCs and their dependents located at post.
* * * * *
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9. In Chapter 7:
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I. Remove the words ``Office of Procurement'' and add, in their place,
``Office of Acquisition and Assistance'' each time they appear in the
following locations:
a. 701.105(c).
b. 701.301(a) introductory text.
c. 701.303(c).
d. 701.470 (a)(2).
e. 702.170-3(a).
f. 702.170-10(a)(1)(i).
g. 728.105-1(b)(4).
h. 731.109.
i. 731.770(a).
j. 750.7109-1
k. 750.7110-1.
l. 752.247-70(c)(1).
m. 752.7002(p)(1)(i).
n. Appendix D to Chapter 7, Section 12, General Provision 10,
paragraph (n)(1)(i).
o. Appendix J to Chapter 7, Section 12, General Provision 9,
paragraph (m).
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II. In addition to the amendments above, remove ``M/OP'', and add, in
its place, ``M/OAA'' each time they appear.
a. 701.105(c).
b. 701.301(a) introductory text.
c. 701.303(c).
d. 701.470(a)(2).
e. 701.470(b)(1).
f. 701.470(b)(2).
g. 701.470(b)(3)(i).
h. 701.470(e).
i. 701.470(f)(1).
j. 701.601(a)(1).
k. 701.601(a)(2) introductory text.
l. 701.601(c)(2).
m. 701.602-3(b)(2).
n. 702.170-9.
o. 705.502(a).
p. 706.501.
q. 709.403.
r. 709.503.
s. 714.406-3.
t. 714.406-4.
u. 716.303(c).
v. 726.7005.
w. 728.105-1(b)(4).
x. 733.103-71(a).
y. 733.103-71(c).
z. 733.103-72(a).
aa. 733.103-73(h).
bb. 733.103-73(i).
cc. 734.002-70.
dd. 749.111-70(a)(1).
ee. 749.111-70(b).
ff. 749.111-71(b).
gg. 750.7105.
hh. 750.7109-1.
ii. 750.7110-1.
jj. 750.7110-2.
kk. 750.7110-3 introductory text.
ll. 750.7110-4.
mm. Appendix D to Chapter 7, Section 4, paragraph (e)(3).
Michael F. Walsh,
Procurement Executive.
[FR Doc. E7-7437 Filed 4-18-07; 8:45 am]
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