(a) The Contractor shall provide and thereafter maintain workmen's compensation insurance as required by United States Public Law 208, 77th Congress, as amended (42 U.S.C. 1651, se seq.), with respect to and prior to the departure for overseas employment under this contract of all employees who are hired in the United States or who are American citizens or bona fide residents of the United States.

(b) The Contractor shall further provide for all employees who are nationals or permanent residents of the country in which services are being rendered, if the contract authorizes their employment, security for compensation benefits pursuant to the applicable law of such country for injury or death in the course of such employment, or in the absence of such law, employer's liability insurance. For all other authorized employees not hired in the United States or who are not American citizens or bona fide residents of the United States, Contractor shall provide the necessary employer's liability insurance.

(c) The Contractor agrees to insert the provisions of this or a similar Clause, including this sentence, in all subcontracts or subordinate contracts hereunder except subcontracts or subordinate contracts exclusively for furnishing materials or supplies.

(d) The Contractor agrees, as evidence of compliance with this clause, to provide the Contracting Officer within a reasonable period of time after the effective date of this

contract with a copy of the actual insurance policy indicating the coverage provide for employees assigned by the Contractor to overseas employment under this contract and the Contractor agrees to provide the Contracting Officer with a similar copy of the insurance policy within a reasonable time after each renewal of this coverage, so long as this contract remains in effect. All such insurance policies shall be subject to the written approval of the Contracting Officer.

(e) The Contractor further agrees to provide the Contracting Officer with three copies of Department of Labor Form BEC239-1 or US-240 "Certificate That Employer Has Secured Payment of Compensation," herein identified as a "Certificate of Compliance". The Contractor can obtain this Certificate from the insurance carrier through the Deputy Commissioner, Bureau of Employees' Compensation, Department of Labor, for the appropriate Compensation District.

7-12.101-1.50

7-12.102

7-12.102-1

7-12.102-1.50

7-12.102-1.51

7-12.102-2

7-12.102-4

7-12.105

7-12.105-2

Labor relations.
General.

Overseas employment.

AUTHORITY: The provisions of this Part 712 issued under sec. 621, 75 Stat. 445, as amended; 12 U.S.C. 2381.

SOURCE: The provisions of this Part 7-12 appear at 30 F.R. 12979, Oct. 12, 1965, unless otherwise noted.

Subpart 7-12.1-Basic Labor Policies § 7-12.101 Labor relations. § 7-12.101-1 General.

§ 7-12.101-1.50 Overseas employment.

AID Contractors who employ cooperating country nationals or other local labor are expected to consult with the appropriate Mission Director, or such official as he designates, concerning local labor laws, regulations, and standards with a view to adopting and demonstrating good employment practices.

§ 7-12.102-1.51 Compensatory time off.

"Compensatory time off" means leave equal to overtime worked, which, unless otherwise authorized in a contract or approved by a Contracting Officer, must be taken not later than the end of the calendar month following that in which the overtime is worked.

§ 7-12.102-2 Policy.

Most contracts covered by this regulation call for the performance of professional or technical services overseas on a cost-reimbursement basis. The compensation for employees performing such services is normally ixed on a monthly or annual basis, and the contracts usually state minimum work week hours. It is not expected that these employees will receive additional pay, overtime or shift premiums, or compensatory time off. When the Contracting Officer determines it is in the best interest of the Government, specific provision may be made in contracts to permit such benefits for non-technical and non-professional employees serving overseas, subject to approvals to be required in the contract. § 7-12.102-4 Approvals.

The heads of procuring activities and the chiefs of contract offices in AID/ Washington procuring activities may make the determinations referred to in FPR 1-12.102-4.

§ 7-12.105 Location allowances at unfavorable sites.

"Predominant Interest Agency" means the Federal agency which has primary responsibility, as designated by the President's Committee, for the administration of a Contractor's obligations under the Orders. See instructions attached to Standard Form 40 (FPR 1-16.901-40). § 7-12.805 Administration.

§ 7-12.805-1 Duties of agencies.

(a) Each head of a procuring activity is responsible for carrying out and assuring adherence to the equal employment opportunity policy set forth in FPR 112.801.

(b) Under the immediate supervision of the Administrator, the AID Contracts Compliance Officer is responsible for the administration of the AID contracts compliance program, including reporting systems, training of personnel, maintenance of records, development of policies, standards, and guides, review and coordination of AID compliance activities, reporting to the President's Committee, and liaison with the Executive Chairman. All communications regarding any phase of the AID equal opportunity program which are received from or require transmittal to the President's Committee will be coordinated with or handled by the AID Contracts Compliance Officer. As required by the AID Contracts Compliance Officer, the Associate Assistant Administrator for Material Resources (Procurement) maintains central records for the contracts compliance program. These records include:

(1) A roster of predominant interest agency assignments;

(2) A roster of predominant interest agency assignments that have been made to AIL;

(3) A contract compliance card file; (4) Copies of compliance reports; (5) Copies of questionnaires and replies; and

(6) On-site survey files.

If AID is the predominant interest agency, the Contracting Officer will review a prospective Contractor's current compliance report before an award is made. See FPR 1-1.310-5 (a) (5). § 7–12.805–5 Compliance reviews.

(a) The AID Contracts Compliance Officer conducts on-site compliance reviews and prepares and signs reports on them. He advises the President's Committee when a review has been conducted. One copy of the report is forwarded to the Associate Assistant Administrator for Material Resources (Procurement) and other copies to such other addressees as he deems appropriate. The original and appropriate attachments are maintained by the AID Contracts Compliance Officer.

(b) On-site compliance reports are divided into 4 parts, as follows:

Part I:

a. Name and Address of Contractor. b. Predominant Interest Agency.

c. Reporting Status of Contractor (Prime, sub. etc.).

d. Facilities Visited (Address).

e. Date of Visits.

f. Persons Interviewed and Titles.
g. Subcontracts (if any).
Part II:

a. Employment Policy (Brief summary of employment policies, and exhibits, if any, of equal employment policies in use by Contractor).

b. Educational and Training Programs.

c. Recruitment Sources and Advertising (discussion of sources and exhibits, if any). d. Organization of Workers (bargaining agreements with labor unions, desegregated facilities in office and field installations, etc.).

Part III-Personnel Distribution

a. Home Office (number of minority group members in executive positions as compared to total executive positions).

b. Field (number of minority group members in executive positions as compared to total executive positions). Part IV-Remarks

None of the funds appropriated or made available by this or any predecessor Act for the year subsequent to fiscal year 1962 for carrying out the Foreign Assistance Act of 1961, as amended, may be used on or after 60 days from the date of enactment of this Act to make payments with respect to any contract for the performance of services outside the United States by U.S. citizens unless the President shall have promulgated regulations that provide for the investigation of such citizens for loyalty and security to the extent necessary to protect the security and other interests of the United States: Provided, That such regulations shall require that any such U.S. citizen who will have access, in connection with the performance of such services, to information or material classified for security reasons shall be subject to such investigation as may otherwise be provided by law and executive order. [31 F.R. 11030, Aug. 19, 1966] § 7-12.5101 Contract provision.

AID contracts provide for necessary approvals of contract personnel. § 7-12.5102 AID Directives.

(a) Regulations have been issued under the statutory provision cited in AIDPR S7-12.5100 and are set out in AID Regulation 10, published in part 210, Title 22 of the Code of Federal Regulations.

(b) See also Manual Order 610.2, entitled "Security Clearance for Contractors and Contractor Personnel under AID Financed Contracts". [31 F.R. 11030, Aug. 19, 1966]

Subpart 7-12.52-Foreign Nationals § 7-12.5201 Construction work. § 7-12.5201-1 Legislation.

Beginning with the Foreign Assistance and Related Agencies Appropriation Act, 1964, the appropriation Acts governing AID have imposed the following requirement:

None of the funds made available by this Act for carrying out the Foreign Assistance

Act of 1961, as amended, may be obligated on or after April 30, 1964, for financing, in whole or in part, the direct costs of any contract for the construction of facilities and installations in any underdeveloped country, unless the President shall, on or before such date, have promulgated regulations designed to assure, to the maximum extent consistent with the national interest and the avoidance of excessive costs to the United States, that none of the funds made available by this Act and thereafter obligated shall be used to finance the direct costs under such contracts for construction work performed by persons other than qualified nationals of the recipient country or qualified citizens of the United States: Provided, however, That the President may waive the application of this amendment if it is important to the national interest.

See, for example, section 117 of the Foreign Assistance and Related Agencies Appropriation Act, 1965.

§ 7-12.5201-2 Regulations.

Regulations have been issued under the statutory provision cited in AIDPR 7-12.5201-1. They are set out in AID Regulation 7, published in Part 207, Title 22 of the Code of Federal Regulations, and reproduced in AID Manual Order 1412.1.2.

Subpart 7-12.53—Workmen's Com

pensation (Defense Base Act) and War Hazards Compensation for Overseas Employees

66-090 O-67-6

AUTHORITY: The provisions of this Part 7-15 issued under sec. 621, 75 Stat. 445, as amended; 22 U.S.C. 2381.

SOURCE: The provisions of this Part 7-15 appear at 30 F.R. 12981, Oct. 12, 1965, unless otherwise noted.

Subpart 7-15.1-Applicability

§ 7-15.103 Cost-reimbursement research contracts with educational institutions.

This category is applied to contracts with educational institutions for technical assistance services provided to or for another country. See AIDPR 7-15.151. § 7-15.107 Advance understandings on particular cost items.

AID contracts generally spell out rules and principles governing the reimbursement of compensation, travel, transportation, and a number of "fringe benefit" costs associated with overseas operations.

§ 7-15.205-6 Compensation for personal services.

(a) Specific limitations on compensation for personal services, including fringe benefits, may be spelled out or incorporated by reference in AID contracts. Where the provisions of the contract are inconsistent with this section, such provisions will govern. Where approvals are required by this section for salaries, allowances, or other matters specifically spelled out and agreed to in the contract, the Contracting Officer's signature on the contract will be sufficient evidence of approval.

(b) Salaries and wages: Within the meaning of this paragraph (AIDPR 715.205-6(b)) and the subparagraphs under it, salaries and wages exclude overseas differential and other allowances associated with overseas service, except as otherwise stated, but include payments for personal services (including fees and honoraria) computed on a daily or other time basis different from an an-, nual rate. Daily rates of compensation are computed on the basis of a 260-daywork year made up of 5-day (8-hour) work weeks.

Reimbursement (1) Salary ceiling. will not be allowed with respect to any salary or wage charged as a direct cost which exceeds $24,500 per year (or a