[Federal Register Volume 64, Number 65 (Tuesday, April 6, 1999)]
[Rules and Regulations]
[Pages 16647-16649]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-6609]


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AGENCY FOR INTERNATIONAL DEVELOPMENT

48 CFR Parts 701, 703, 715, 731, and 752

[AIDAR Notice 98-1]


Miscellaneous Amendments to Acquisition Regulations

AGENCY: Internatinal Development Cooperation 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 the USAID Acquisition Regulation (AIDAR) to make various 
administrative modifications in accordance with the changes to Part 15 
of the Federal Acquisition Regulation published in Federal Acquisition 
Circular 97-02, to designate an additional level for concurrence before 
the Contracting Officer confers with the Head of Contracting Activity 
on matters concerning procurement integrity violations or other 
possible violations, and to add coverage on payment of

[[Page 16648]]

salary supplements for Host Government employees.

EFFECTIVE DATE: May 6, 1999.

FOR FURTHER INFORMATION CONTACT:
M/OP/P,  Ms. Kathleen O'Hara,  Room 7.08-92, 1300 Pennsylvania Ave., 
N.W., U.S. Agency for International Development, Washington, D.C. 
20523-7801. Telephone: (202) 712-4759.

SUPPLEMENTARY INFORMATION: The AIDAR is being amended to make various 
administrative changes to conform with revised Part 15 of the Federal 
Acquisition Regulation published in Federal Acquisition Circular 97-02. 
This Notice updates the expiration dates of the Office of Management 
and Budget (OMB) approval under the Paperwork Reduction Act. This 
Notice also adds an additional level for concurrence before the 
Contracting Officer confers with the Head of Contracting Activity on 
matters concerning procurement integrity violations or other possible 
violations. Allowing for concurrence by the person who is one above the 
Contacting Officer simplifies the procedure to release information. 
Finally, this Notice adds coverage in Part 731 and a clause which, in 
accordance with USAID policy, provides that salary supplements for host 
government employees are not allowable costs without approval. This 
implements long standing Agency policy.
    The changes made by this Notice are mostly administrative and not 
considered major rules as defined in E.O. 12866. This Notice will 
neither impact a substantial number of small entities, nor will it 
establish information collection as contemplated by the Regulatory 
Flexibility Act and the Paperwork Reduction Act. Because of the nature 
of this Notice, use of the proposed rule/public comment approach was 
not considered necessary. USAID decided to issue this Notice as a final 
rule; however, the Agency welcomes public comment on the material 
covered by this Notice or any part of the AIDAR at any time. Comments 
or questions may be addressed as specified in the FOR FURTHER 
INFORMATION CONTACT section of the preamble.

List of Subjects in 48 CFR Parts 701, 703, 715, 731, and 752

    Government procurement.
    Accordingly for the reasons set out in the Preamble, 48 CFR Chapter 
7 is amended as follows:

    1. The authority citations in Parts 701, 703, 715, 731, and 752 
continue to read as follows:

    Authority: Sec. 621, Pub. L. 87-195, Stat. 445 (22 U.S.C. 2381), 
as amended; E.O. 12163, Sept. 29, 1979, 44 FR 56673, CFR 1979 Comp., 
p. 435.

PART 701--FEDERAL ACQUISITION REGULATION SYSTEM

Subpart 701.1--Purposes, Authority, Issuance


701.105  [Amended]

    2. Section 701.105 is amended by removing ``06/30/97'' everywhere 
it appears in paragraph (a) and adding ``08/31/2000'' in its place and 
by revising paragraph (c) to read as follows:


701.105  OMB approval under the Paperwork Reduction Act.

* * * * *
    (c) Public reporting burden for these collections of information is 
estimated as shown in paragraph (a) of this section. The estimated 
burden includes the time for reviewing instructions, searching existing 
data sources, gathering and maintaining the data needed, and completing 
and reviewing the collection of information. Send comments regarding 
the burden estimates or any other aspects of these collections of 
information, including suggestions for reducing the burden, to: U.S. 
Agency for International (USAID), Office of Procurement, Policy 
Division (M/OP/P), Room 7.08-082U, 1300 Pennsylvania Avenue, N.W. 
Washington, D.C. 20523-7801; and Office of Management and Budget (OMB), 
Paperwork Reduction Project (0412-0520), Washington, D.C. 20503.

PART 703--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST

Subpart 703.1--Safeguards


703.104  [Amended]

    3. Section 703.104-5 is revised to read as follows:


703.104  Disclosure, protection, and marking of proprietary and source 
information.

    A Contracting Office may authorize release of proprietary and/or 
source selection information outside the Government for evaluation 
purposes pursuant to FAR 15.305(c) and (AIDAR) 48 CFR 715.305(c).
    4. Section 703.104-10 is added to read as follows:


703.104-10.1  Violations or possible violations.

    Requests for concurrence under paragraph (a)(1) of FAR 3.104-10 
shall be forwarded to one level above the Contracting Officer.

PART 715--CONTRACTING BY NEGOTIATION

    5. Part 715 is amended by removing Subpart 715.4, Solicitation and 
Receipt of Proposals and Quotations; by redesignating Subpart 715.6, 
Source Selections, as Subpart 715.3; and redesignating Subpart 715.5, 
Unsolicited Proposals, as Subpart 715.6; by redesignating 715.502 as 
715.602, 715.504 as 715.604, 715.604-70 as 715.303-70, 716.613-70 as 
715.370-, and 715.613-71 as 715.370-2; and by removing 715.506, 
715.506-1, and 715.605.
    6. In newly designated 715.303-70, paragraph (b)(3) is revised to 
read as follows:


715.303-70  Responsibilities of USAID evaluation committees.

* * * * *
    (b) * * *
    (3) The chair shall prepare and provide to the Contracting Officer 
written documentation summarizing the results of the evaluation of each 
proposal, including an assessment of past performance information in 
accordance with FAR 15.305(a)(2). The documentation shall include 
narrative justification of the evaluation results.
* * * * *


715.305  [Added]

    7. Section 715.305 is added to read as follows:


715.305  Proposal evaluation.

    (a) [Reserved]
    (b) A justification is to be written by the Contracting Officer and 
placed in the official file to support the decision to reject all 
proposals and to cancel the procurement.
    (c) The Contracting Office may authorized release of proposals 
outside the Government for evaluation--
    (1) When an Evaluation Assistance Contract (EAC) is required to 
provide technical advisory or other services relating to the evaluation 
of proposals; or
    (2) When an individual other than a government employee, known as a 
Non-Government Evaluator (NGE), is selected to serve as a member of a 
USAID technical evaluation committee, the Contracting Officer shall 
obtain a signed and dated certification and agreement from each NGE and 
EAC that they will safeguard the proposals and information therein and 
that they perceive no actual or potential conflict of interests. (An 
acceptable certification appears under ADS Chapter 302).

[[Page 16649]]

715.370  [Added]

    8. Section 715.370 is added to read as follows:


715.370  Alternative source selection procedures.

    The following selection procedures may be used, when appropriate, 
for activities covered under Title XII of the Foreign Assistance Act of 
1961, as amended.
    9. Newly redesignated 715.602 is amended by revising paragraphs (b) 
and (c) to read as follows:


715.602  Policy.

* * * * *
    (B) USAID's basic policies and procedures regarding unsolicited 
proposals are those established in FAR subpart 15.6 and this subpart.
    (c) For detailed information on unsolicited proposals, see 715.604; 
for initial contact point within USAID, see 715.604(c).
    10. Newly redesignated 715.604 is amended by revising the section 
heading and paragraph (a) and adding paragraph (c) to read as follows:


715.604  Agency points of contact.

    (a) Information concerning USAID's policies for unsolicited 
proposals is available from the U.S. Agency for International 
Development, Evaluation Division, Room 7.08-005, 1300 Pennsylvania 
Avenue, NW, Washington, D.C. 20523-7803.
* * * * *
    (c) Initial inquiries and subsequent unsolicited proposals should 
be submitted to the address specified in paragraph (a) of this section.

PART 731--CONTRACT COST PRINCIPLES AND PROCEDURES

Subpart 731.2--Contracts With Commercial Organizations


731.205-71  [Added]

    11. Section 731.205-71 is added as follows:


731.205-71  Salary supplements for Host Government employees.

    (a) Definitions. (1) A Host Government (HG) employee is a person 
paid by the HG, occupying an established position, either temporary or 
permanent, part-time or full-time, within a HG institution.
    (2) An HG institution is an organization in which the government 
owns at least a fifty percent share or receives at least fifty percent 
of its financial support from the government.
    (b) General. Salary supplement occurs when payments are made that 
augment an HG employee's base salary or premiums, overtime, extra 
payments, incentive payment and allowances for which the HG employee 
would qualify under HG rules or practices for the performance of his/
hers regular duties or work performed during his/hers regular office 
hours. Per diem, invitational travel, honoraria and payment for work 
carried out outside of normal working hours are not considered to be 
salary supplements subject to the provisions in USAID policy referenced 
in paragraph (c) of this section.
    (c) Salary supplements are eligible for USAID financing only when 
authorized in accordance with USAID policy established in the cable 
State 119780 dated April 15, 1988 (on ADS-CD under USAID Handbooks, 
Handbook 1). If salary supplements have been authorized in a particular 
case, the Contracting Officer shall provide written approval to the 
contractor in order for such costs to be eligible. Any specific 
requirements or limitations shall be specified in the approval.
    (d) Contracting Officers shall insert the Clause at 752.231-71 in 
all contracts in which there is a possibility of the need of HG 
employees. It should also be inserted in all subsequent subcontracts.

PART 752--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

Subpart 752.2--Texts of Provisions and Clauses

    12. Section 752.231-71 is added to read as follows:


752.231-71  Salary supplements for HG employees.

    As prescribed in 731.205-71, for use in all contracts with a 
possible need or services of a HG employee. The clause should also be 
inserted in all subsequent sub-contracts.

SALARY SUPPLEMENTS FOR HG EMPLOYEES (OCT 1998)

    (a) Salary supplements are payments made that augment an 
employee's base salary or premiums, overtime, extra payments, 
incentive payment and allowances for which the HG employee would 
qualify under HG rules or practice for the performance of his/hers 
regular duties or work performed during his/hers regular office 
hours. Per diem, invitational travel, honoraria and payment for work 
carried out outside of normal working hours are not considered to be 
salary supplements.
    (b) Salary supplements to HG Employees are not allowable without 
the written approval of the Contracting Officer.

    Dated: March 8, 1999.
Marcus L. Stevenson,
Procurement Executive.
[FR Doc. 99-6609 Filed 4-5-99; 8:45 am]
BILLING CODE 6116-01-M