[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: 48CFR731.371] [Page 40-41] TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM CHAPTER 7--AGENCY FOR INTERNATIONAL DEVELOPMENT PART 731_CONTRACT COST PRINCIPLES AND PROCEDURES--Table of Contents Subpart 731.3_Contracts With Educational Institutions Sec. 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. [[Page 41]] (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 and compensation of third country national or cooperating country national employees are set forth in AIDAR 722.170. [57 FR 5236, Feb. 13, 1992, as amended at 60 FR 11913, Mar. 3, 1995; 62 FR 40469, July 29, 1997; 64 FR 5008, Feb. 2, 1999]