[Code of Federal Regulations]

[Title 48, Volume 5]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR731.205-70]



[Page 39-40]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

             CHAPTER 7--AGENCY FOR INTERNATIONAL DEVELOPMENT

 

PART 731_CONTRACT COST PRINCIPLES AND PROCEDURES--Table of Contents

 

          Subpart 731.2_Contracts With Commercial Organizations

 

Sec. 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



[[Page 40]]



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.



[57 FR 5236, Feb. 13, 1992]