ORIENTATION AND LANGUAGE TRAINING (JUNE 1973)

(a) Regular employees shall receive a maximum of 2 weeks AID sponsored orientation before travel overseas. The dates of orientation shall be selected by the contractor from the orientation schedule provided by AID.

(b) Participation in AID sponsored orientation in no way relieves the contractor of his responsibility for assuring that all employees, regular and short term, are properly oriented. As an addition to or substitution for AID's sponsored orientation for regular employees, the following types of orientation may be authorized taking into consideration specific job requirements, the employee's prior overseas experience, or unusual circumstances:

(1) Modified orientation.

(2) Language training, particularly when significant for operating capabilities.

(3) Orientation and language training for regular employee's dependents.

(4) Institution-sponsored orientation. (5) Orientation in all matters related to the administrative, logistical, and technical aspects of the employee's movement to, and tour of duty in the cooperating country.

(c) Authorization for an additional or alternate orientation program, if any, shall be either set forth in the schedule or provided in writing by the Contracting Officer.

(d) Travel expenses not to exceed one (1) round trip from regular employee's residence to place of orientation and return will be reimbursed, pursuant to the general provision of this contract entitled "travel expenses”. Allowable salary costs during the period of orientation are also reimbursable.

§ 7-7.5502-6 Leave and holidays.

LEAVE AND HOLIDAYS (JUNE 1973)

(a) Vacation leave.-The contractor may grant to his employees working Overseas under this contract vacations of reasonable duration in accordance with the contractor's on-campus practice for his employees, but in no event shall such vacation leave be earned at a rate exceeding 26-work days per annum. It is understood that vacation leave is provided under this contract primarily for the purposes of affording necessary rest and recreation to regular employees during their tour of duty in the cooperating country and the contractor will use his best efforts to arrange that earned vacation leave will be used for the above stated purpose during the tour of duty unless the interest of the project dictates otherwise. Lump-sum payment for vacation leave earned but not taken may be made at the end of an employee's service under the contract, provided that such lump-sum payment shall be limited to leave earned by the employee during a 12-month period (not to exceed 26-working days).

(b) Sick leave.-Sick leave is earned by regular and short-term employees in accordance with the contractor's usual on-campus practice but not to exceed 13work days per annum or 4 hours every 2 weeks. Additional sick leave after use of accrued vacation leave may be advanced in accordance with contractor's usual practice, if in the judgment of the contractor's chief of party, it is determined that such additional leave is in the best interest of the project. In no event shall such additional leave exceed 30 days. The contractor agrees to reimburse AID for leave used in excess of the amount earned during the employee's assignment under this contract. Sick leave earned and unused at the end of a regular tour of duty may be carried over to an immediately succeeding tour of duty under this contract. The taking of authorized home leave shall not constitute a break in service for the purpose of sick leave carry-over. Contractor employees will not be compensated for unused sick leave at the completion of their duties under this contract.

(c) Home leave.-(1) Home leave is leave earned for service abroad for use only in the United States, in the Commonwealth of Puerto Rico, or in the possessions of the United States.

(2) A regular employee who is a U.S. citizen or resident and has served at least 2 years overseas, as defined in paragraph (c) (4) of this section, under this contract and has not taken more than 30-work days leave (vacation, sick, or leave without pay) in the United States, may be granted home leave of not more than 15 calendar days for each such year of service overseas: Provided, That such regular employees agree to return overseas upon completion of home leave under an additional 2-year appointment, or for such shorter period of not less than 1 year of overseas service under the contract as the Mission Director may approve in advance. Home leave must be taken in the United States, the Commonwealth of Puerto Rico or the possessions of the United States and any days spent elsewhere will be charged to vacation leave or leave without pay.

(3) Notwithstanding the requirement in paragraph (c) (2), immediately above, that the contractor's regular employee must have served 2 years overseas under this contract to be eligible for home leave, contractor may grant advance home leave to such regular employee subject to all of the following conditions:

(i) Granting of advance home leave would in each case serve to advance the attainment of the objectives of this contract;

(ii) The regular employee shall have served a minimum of 18 months in the cooperating country on his current tour of duty under this contract; and

(iii) The regular employee shall have agreed to return to the Cooperating Country to serve out the remainder of his current tour of duty and an additional 2-year appointment under this contract, or such other additional appointment of not less than 1 year of overseas service as the Mission Director may approve.

(4) The period of service overseas required under paragraph (c) (2), or paragraph (c)(3), of this section, shall include the actual days in orientation in the United States (less language training) and the actual days overseas beginning on the date of departure from the United States port of embarkation on international travel and continuing, inclusive of authorized delays en route, to the date of arrival at the United States port of debarkation from international travel. Allowable vacation and sick leave

taken while overseas, but not leave without pay, shall be included in the required period of service overseas. An amount equal to the number of days of vacation and sick leave taken in the United States, the Commonwealth of Puerto Rico, or the possessions of the United States will be added to the required period of service overseas.

(5) Salary during travel to and from the United States for home leave will be limited to the time required for travel by the most expeditious air route. The contractor will be responsible for reimbursing AID for salary payments made during home leave, if in spite of the undertaking of the new appointment, the regular employee, except for reasons beyond his control as determined by the Contracting Officer, does not return overseas and complete the additional required service. Unused home leave is not reimbursable under this contract.

(6) To the extent deemed necessary by the contractor, regular employees in the United States on home leave may be authorized to spend not more than 5 days in work status for consultation oncampus or at AID/Washington before returning to their post of duty. Consultation at locations other than AID/ Washington or oncampus, as well as any time in excess of 5 days spent for consultation, must be approved by the Mission Director or the Contracting Officer.

(7) Except as provided in the schedule or approved by the Mission Director or the Contracting Officer, home leave is not authorized for third country nationals

(d) Holidays.-Holidays for contractor employees serving overseas should take into consideration local practices and shall be established in collaboration with the Mission Director.

§ 7-7.5502-7 Post privileges.

POST PRIVILEGES (SEPTEMBER 1974)

(a) Health room services are generally available for Contractor employees at the post of duty. These services do not include hospitalization, or predeparture or end of tour medical examinations. The services do include such medications as may be available; immunizations and preventive health measures; diagnostic examinations and advice; emergency treatment; and home visits as medically indicated.

(b) Privileges such as the use of APO, PX's, commissaries, and officer's clubs are established at posts abroad pursuant to

Insert the clause set forth in AIDPR 7-7.5002-15.

[39 FR 21132, June 19, 1974]

§ 7-7.5502-11 Inspection trips by con

tractor's officers and executives. INSPECTION TRIPS BY CONTRACTOR'S OFFICERS AND EXECUTIVES (JUNE 1973)

Provided it is approved by the Mission Director, the contractor may send the campus coordinator, a professional member of his staff as an alternate to the campus coordinator, or such of his senior officials (e.g., president, vice presidents, deans, or department heads) to the cooperating country as may be required to review the progress of the work under this contract. Except for the campus coordinator or his alternate, no direct salary charges will be paid hereunder with respect to any such officials. § 7-7.5502-12 Notice of changes in regulations.

NOTICE OF CHANGES IN REGULATIONS (JUNE 1973)

Changes in travel, differential, and allowance regulations shall be effective on either the beginning of the contractor's next pay period following receipt of the notice or the effective date of such notice, whichever is later. Notice of changes shall be sent by the Contracting Officer or Mission Director pursuant to the clause of the general provisions of this contract entitled "Notices".

§ 7-7.5502-13 Documentation for mission.

DOCUMENTATION FOR MISSION (JUNE 1973)

(a) When submitting U.S. Dollar Voucher Form SF 1034 to the paying office listed on the cover page of this contract, the contractor shall at the same time airmail to the Mission Controller one copy of SF 1034(a) and fiscal report. The Mission Controller's copy shall be accompanied by one copy of vendor's invoice for all items of commodities, equipment, and supplies (except magazines, pamphlets and newspapers) procured and shipped overseas and for which the cost is reimbursable under this contract. (For items shipped from contractor's stocks where vendors' invoices are not available, a copy of the documents used for posting to contractor's account shall be furnished).

(b) A separate and complete set of Voucher Form SF 1034 (original and SF 1034(a)) (three copies) representing expenditures of local currency funds shall be sent directly to the cognizant Mission Controller. Documentation required in support of local currency expenditures shall be established by the cognizant Mission Controller.

§ 7-7.5502-15

Facilities and services to

be arranged by A.I.D.

FACILITIES AND SERVICES TO BE
ARRANGED BY A.I.D. (JUNE 1973)

(a) In order to assure full local benefits from the work as well as its expeditious conduct, AID agrees to arrange with appropriate authorities in the cooperating country for a clear assignment of responsibility to the appropriate officials for the development of this undertaking and a clear assignment of responsibilities to the contractor.

(b) AID will arrange with the officials of the cooperating country to develop, to the extent permitted by their available resources, their own personnel, facilities, programs, and activities to permit the early and effective accomplishment of the objectives of the contract. § 7-7.5502-16 Title to and care of prop

erty.

In lieu of the clause required by AIDPR 7-7.5501-18, insert the clause set forth in AIDPR 7-13.706.

§ 7-7.5503-1 Alterations in contract. Insert the clause set forth in AIDPR 7-7.5003-1.

§ 7-7.5503-2 Advance of funds.

When an advance of funds is to be made (other than by means of a Federal Reserve Letter of Credit), insert the following clause:

ADVANCE OF FUNDS (JUNE 1973)

(a) AID will, upon request from the contractor, in accordance with paragraph (b) of this section, make an initial advance to the contractor in the amount stated in the contract schedule pursuant to the provisions of FPR 1-30.4 as it applies to educational institutions for research and development work, AID will thereafter reimburse the contractor an amount equal to reported expenditures in order to replenish the advance fund on an imprest basis. AID will replenish the fund on a quarterly basis (or other agreed interval) upon submission of documents prescribed in the general provisions clause entitled "Allowable Cost and Payment" until such time as the total amount of reimbursements together with the initial advance equals the amount of the AID commitment stated in the schedule. Thereafter, vouchers for expenditures submitted by the contractor will not be reimbursed but will be applied to liquidate the remaining outstanding advance. In the event the total amount of subsequent vouchers are insufficient to liquidate the amount of the outstanding advance, the contractor will refund the difference to AID in accordance with FPR 130.414-2(d).

(b) The contractor will submit to the paying office indicated on the cover page voucher form SF 1034 (original) and SF 1034(a) in three copies, properly executed,

requesting advance of funds in the agreed amount required to establish a working fund.

(c) The contractor shall make a repayment to AID of all unexpended portions of the advanced dollar funds not obligated under the contract for a legally binding transaction. If appropriate, the contractor shall also make a repayment to the mission of all unexpended portions of the advaced local currency funds not otherwise obligated under the contract for a legally binding transaction. In the event there are any outstanding obligations at the time of filing the final voucher required by the "Allowable Cost and Payment" clause, a subsequent accounting pertaining thereto will be made in the same manner as required by said provisions.

(d) Refund of excess funds. (1) If all costs have been settled under the contract and the contractor fails to comply with the Contracting Officer's request for repayment of excess advance funds, the Government shall have the right, on other agreements, grants, or contracts held with the contractor, to withhold payment of advances and/or reimbursements due the contractor in the amount of the excess being held by the contractor.

(2) If the contractor is still holding excess advance funds under the contract and the work has been completed or terminated but all costs have not been settled, the contractor agrees to:

(1) Provide within 30 days after requested to do so by the contracting officer, a breakdown of the dollar amounts which have not been settled between the Government and the contractor. (The Contracting Officer will assume no costs are in dispute if the contractor fails to reply within 30 days.);

(ii) Upon written request of the Contracting Officer, return to the Government the sum of dollars, if any, which represents the difference between (a) the contractor's maximum position on claimed costs which have not been reimbursed and (b) the total amount of unexpended funds which have been advanced under the contract; and

(iii) If the contractor fails to comply with the Contracting Officer's request for repayment of excess advance funds, the Government shall have the right on other agreements, grants, or contracts held with the contractor, to withhold payment of advances and/or withhold reimbursement due the contractor in the amount of the excess being held by the contractor.

(e) The contractor agrees that all interest earned on funds advanced will be promptly repaid to the Government. At no time may any such interest be retained by the contractor or used for any purpose. § 7-7.5503-3

credit.

Federal Reserve letter of

If an advance of funds is to be made by means of a Federal Reserve letter of

credit, insert the clause set forth in AIDPR 7-30.4502.

§ 7-7.5503-4 Negotiated overhead

rates—predetermined.

If predetermined overhead rates have been established, substitute the following clause for the clause set forth in 7-7.5501-9.

NEGOTIATED OVERHEAD RATES-PREDETERMINED (JUNE 1973)

(a) Notwithstanding the provisions of the clause of this contract entitled "Allowable Cost and Payment", the allowable indirect cost under this contract shall be obtained by applying predetermined overhead rates to bases agreed upon by the parties, as specified below.

(b) The contractor, as soon as possible but not later than 3 months after the close of each of his fiscal years during the term of this contract, shall submit to the Contracting Officer with copies to the cognizant audit activity, the AID Auditor General, and the AID Overhead and Special Cost Branch, a proposed predetermined overhead rate or rates based on the contractor's actual cost experience during that fiscal year, together with supporting cost data. Negotiation of predetermined overhead rates by the contractor and the Contracting Officer shall be undertaken as promptly as practicable after receipt of the contractor's proposal.

(c) Allowability of costs and acceptability of cost allocation methods shall be determined in accordance with the provisions of subpart 1-15.3 (principles for determining costs applicable to research and development under grants and contracts with educational institutions) and the Federal procurement regulations as in effect on the date of this contract.

(d) Predetermined rates appropriate for the work under this contract, in effect on the effective date of this contract shall be incorporated into the contract schedule. Rates for subsequent periods shall be negotiated and the results set forth in a written overhead rate agreement executed by both parties. Such agreement shall be automatically incorporated into this contract upon execution and shall specify (1) the agreed predetermined overhead rates, (2) the bases to which the rates apply, (3) the fiscal year unless the parties agree to a different period for which the rates apply, and (4) the specific items treated as direct costs or any changes in the items previously agreed to be direct costs. The overhead rate agreement shall not change any monetary ceiling, contract obligation, or specific cost allowance or disallowance provided for in this contract.

(e) Pending establishment of predetermined overhead rates for any fiscal year or different period agreed to by the parties, the contractor shall be reimbursed either at the rates fixed for the previous fiscal year or

other period or at billing rates acceptable to the Contracting Officer subject to appropriate adjustment when the final rates for that fiscal year or other period are established.

(f) Any failure by the parties to agree on any predetermined overhead rate or rates under this clause shall not be considered a dispute within the meaning of the “Disputes" clause of this contract. If for any fiscal year or other period specified in the schedule of this contract the parties fail to agree to a predetermined overhead rate or rates, it is agreed that the allowable indirect costs under this contract shall be obtained by applying negotiated final overhead rates in accordance with the terms of the "Negotiated Overhead Rates-Postdetermined" clause set forth in § 7-7.5501-9 of the AID procurement regulations as in effect on the date of this contract.

[38 FR 15602, June 14, 1973, as amended at 38 FR 28676, Oct. 16, 1973]

§ 7-7.5503-5 Limitation of cost.

If the contract is fully funded, substitute the following clause for the clause set forth in § 7-7.5501-10:

LIMITATION OF COST (JUNE 1973)

(a) It is estimated that the total cost to the Government for the performance of this contract will not exceed the estimated cost set forth in the schedule, and the contractor agrees to use his best efforts to perform the work specified in the Schedule and all obligations under this contract within such estimated cost. If at any time the contractor has reason to believe that the cost which he expects to incur in the performance of this contract in the next succeeding 60 days, when added to all costs previously incurred, will exceed 75 percent of the estimated cost then set forth in the schedule, or if at any time, the contractor has reason to believe that the total cost to the Government for the performance of this contract will be greater or substantially less than the then estimated cost thereof, the contractor shall notify the Contracting Officer in writing to that effect, giving the revised estimate of such total cost for the performance of this Contract.

(b) Except as required by other provisions of this contract specifically citing and stated to be an exception from this clause, the Government shall not be obligated to reimburse the contractor for costs incurred in excess of the estimated cost set forth in the schedule, and the contractor shall not be obligated to continue performance under the contract (including actions under the termination clause) or otherwise to incur costs in excess of the estimated cost set forth in the schedule, unless and until the Contracting Officer shall have notifed the contractor in writing that such estimated cost has been increased and shall have specified in such notice a revised estimated cost which shall thereupon constitute the estimated cost of