contractor100 Posted December 20, 2012 Report Share Posted December 20, 2012 Please see AIDAR722.170, copied below for convenience. Here is the question: Is a USAID contractor limited in what it can pay subcontractors, hired abroad, by sections (a) and ( of AIDAR722.170, or do those sections only apply to the USAID contractor's employees A Some argue sections (a) and ( B ) apply to any person "hired abroad for work in a cooperating country &c" and therefore apply to subcontractors' employees. Note that sections (d ) and (e) refer to "employees" and sections (a) and ( B ) do not. B Some argue the clause only applies to contractor's employees. because 1 there is no explicit requirement to flow the clause down and 2 "USAID-direct contracts" in clause (a) refers to the prime USAID contract and thus excludes subcontracts under USAID contracts. Some say, however, that "USAID-direct contracts" in this context, means USAID direct contracts as opposed to host country contracts, see ADS 301.3.1.1 copied below for convenience. 301.3.1.1 Distinction Between USAID-Direct Contracts and Host Country Contracts Effective Date: 08/18/1997 Mission Directors and staff must bear clearly in mind the distinction between USAID-direct and host country contracts. USAID-direct contracts follow the Federal Acquisition Regulation (and AID Acquisition Regulation) and maximize USAID control over the activity in question. When USAID decides to use host country contracting procedures, on the other hand, it acts as a financier and not a contracting party, reserving certain rights of approval and activity monitoring. [b 722.170 Employment of third country nationals (TCN’s) and cooperating country nationals (CCN’s). (a) General. It is USAID policy that cooperating country nationals (CCN’s) and third country nationals (TCN’s), who are hired abroad for work in a cooperating country under USAID-direct contracts, generally be extended the same benefits, and be subject to the same restrictions as TCN’s and CCN’s employed as direct hires by the USAID Mission. Exceptions to this policy may be granted either by the Mission Director or the Assistant Administrator having program responsibility for the project. (TCN’s and CCN’s who are hired to work in the United States shall be extended benefits and subject to restrictions on the same basis as U.S. citizens who work in the United States.) ( Compensation. Compensation, including merit or promotion increases paid to TCN’s and CCN’s may not, without the approval of the Mission Director or the Assistant Administrator having program responsibility for the project, exceed the prevailing compensation paid to personnel performing comparable work in the cooperating country as determined by the USAID Mission. Unless otherwise authorized by the Mission Director or the Assistant Administrator having program responsibility for the project, the compensation of such TCN and CCN employees shall be paid in the currency of the cooperating country. © Allowances and differentials. TCN’s and CCN’s, hired abroad for work in a cooperating country, are not eligible for allowances or differentials under USAID-direct contracts, unless authorized by the Mission Director or the Assistant Administrator having program responsibility for the project. (d) Country and security clearances. The contractor shall insure that the necessary clearances, including security clearances, if required, have been obtained for TCN and CCN employees in accordance with any such requirements set forth in the contract or required by the USAID Mission, prior to the TCN or CCN starting work under the contract. (e) Physical fitness. Contractors are required to insure that prospective TCN and CCN employees are examined prior to employment to determine whether the prospective employee meets the minimum physical requirements of the position and is free from any contagious disease. (f) Workweek, holidays, and leave. The workweek, holidays, and leave for TCN and CCN employees shall be the same as for all other employees of the contractor, under the terms of the contract; however, TCN and CCN employees are not eligible for home leave or military leave unless authorized by the Mission Director or the Assistant Administrator having program responsibility for the project. (g) Travel and transportation for TCN’s and CCN’s. Travel and transportation shall be provided TCN and CCN employees on the same basis as for all other employees of the contractor, under the terms of the contract. (h) Household effects and motor vehicles. USAID will not provide household effects to TCN and CCN employees; such employees may ship their household effects and motor vehicles to their place of employment on the same basis as for all other employees of the contractor, under the terms of the contract unless they are residents of the cooperating country. Link to comment Share on other sites More sharing options...
Boof Posted December 21, 2012 Report Share Posted December 21, 2012 I believe the intent is to limit the cost of labor and avoid contract hires making more than TCN's and CCNs working in the USAID offices. They probably meant it to cover sub-contractors too but you should contact the USAID office that publishes the AIDAR and have them clarify the meaning of the clause. Point out that they seem to have forgot to require a flow down clause. Link to comment Share on other sites More sharing options...
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