81_FR_55566 81 FR 55405 - Agency for International Development Acquisition Regulation (AIDAR): Agency Warrant Program for Individual Cooperating Country National Personal Services Contractors (CCNPSCs)

81 FR 55405 - Agency for International Development Acquisition Regulation (AIDAR): Agency Warrant Program for Individual Cooperating Country National Personal Services Contractors (CCNPSCs)

AGENCY FOR INTERNATIONAL DEVELOPMENT

Federal Register Volume 81, Issue 161 (August 19, 2016)

Page Range55405-55408
FR Document2016-19709

The U.S. Agency for International Development (USAID) proposes to amend the Agency for International Development Acquisition Regulation (AIDAR) to incorporate a warrant program for cooperating country national personal service contractors (CCN PSCs) into the regulation. The purpose of the CCN PSC warrant program is not only to address a shortage of U.S. direct-hire contracting officers by delegating limited contracting officer authorities to a select number of Cooperating Country National personal services contractors, but also to bolster the Agency to succeed in terms of building long-term, host country technical capacity to materially assist the Missions with procurement responsibility. In addition, USAID is proposing to clarify that third country nationals (TCNs) and cooperating country nationals (CCNs) employment requirements, contained in section 722.170, do not apply to consultants.

Federal Register, Volume 81 Issue 161 (Friday, August 19, 2016)
[Federal Register Volume 81, Number 161 (Friday, August 19, 2016)]
[Proposed Rules]
[Pages 55405-55408]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-19709]


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AGENCY FOR INTERNATIONAL DEVELOPMENT

48 CFR Parts 701, 722 and Appendix J

RIN 0412-AA80


Agency for International Development Acquisition Regulation 
(AIDAR): Agency Warrant Program for Individual Cooperating Country 
National Personal Services Contractors (CCNPSCs)

AGENCY: U.S. Agency for International Development.

ACTION: Proposed rule.

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SUMMARY: The U.S. Agency for International Development (USAID) proposes 
to amend the Agency for International Development Acquisition 
Regulation (AIDAR) to incorporate a warrant program for cooperating

[[Page 55406]]

country national personal service contractors (CCN PSCs) into the 
regulation. The purpose of the CCN PSC warrant program is not only to 
address a shortage of U.S. direct-hire contracting officers by 
delegating limited contracting officer authorities to a select number 
of Cooperating Country National personal services contractors, but also 
to bolster the Agency to succeed in terms of building long-term, host 
country technical capacity to materially assist the Missions with 
procurement responsibility. In addition, USAID is proposing to clarify 
that third country nationals (TCNs) and cooperating country nationals 
(CCNs) employment requirements, contained in section 722.170, do not 
apply to consultants.

DATES: Comments must be received no later than October 18, 2016.

ADDRESSES: Address all comments concerning this notice to Lyudmila 
Bond, Bureau for Management, Office of Acquisition and Assistance, 
Policy Division (M/OAA/P), Room 867, SA-44, Washington, DC 20523-2052. 
Submit comments, identified by title of the action and Regulatory 
Information Number (RIN) by any of the following methods:
    1. Through the Federal eRulemaking Portal at http://www.regulations.gov by following the instructions for submitting 
comments.
    2. By Mail addressed to: USAID, Bureau for Management, Office of 
Acquisition & Assistance, Policy Division, Room 867J, SA-44, 1300 
Pennsylvania Ave. NW., Washington, DC 20523-2052.

FOR FURTHER INFORMATION CONTACT: Lyudmila Bond, Telephone: 202-567-4753 
or Email: [email protected].

SUPPLEMENTARY INFORMATION: 

A. Instructions

    All comments must be in writing and submitted through one of the 
methods specified in the Addresses section above. All submissions must 
include the title of the action and RIN for this rulemaking. Please 
include your name, title, organization, postal address, telephone 
number, and email address in the text of the message.
    Please note that USAID recommends sending all comments to the 
Federal eRulemaking Portal because security screening precautions have 
slowed the delivery and dependability of surface mail to USAID/
Washington.
    After receipt of a comment and until finalization of the action, 
all comments will be made available at http://www.regulations.gov for 
public review without change, including any personal information 
provided. We recommend you do not submit information that you consider 
Confidential Business Information (CBI) or any information that is 
otherwise protected from disclosure by statute. USAID will only address 
substantive comments on the rule. Comments that are insubstantial or 
outside the scope of the rule may not be considered.

B. Background

    USAID is seeking comments on the proposed rule as described below:

(1) 722.170 Employment of Third Country Nationals (TCN's) and 
Cooperating Country Nationals (CCN's)

    In response to numerous inquiries, USAID is proposing a revision of 
this section of the AIDAR to clarify that employment requirements for 
TCN and CCN employees of a contractor do not apply to consultants. It 
is the responsibility of a contractor to determine whether an 
individual being hired is an employee or a consultant.

(2) Cooperating Country National (CCN) Warrant Program

Background
    In 2011, the U.S. Agency for International Development (USAID) 
approved a two-year Worldwide CCN Administrative Contracting and 
Agreement Officer (ACO/AAO) Pilot Warrant Program. The purpose of this 
program was to address the shortage of USAID contracting officers and 
build long-term, host country technical capacity to materially assist 
the Missions with procurement responsibility.
    USAID is located in offices in over 80 countries with programs in 
over 100 nations. USAID operates in a fluid environment responding to a 
myriad of crises such as war, natural disasters, epidemics, as well as 
its long term mission of ending extreme poverty, promoting resilient, 
democratic societies while advancing our security and prosperity. The 
warranted contracting force to manage this effort consists of 150 US 
direct hire foreign service contracting officers overseas, 105 direct 
hire civil service contract officers, 83 warranted foreign service 
executive officers, 3 warranted US personal service contractors 
managing mission's acquisition portfolio, and 4 warranted US personal 
service contractors serving as executive officers. In addition to, and 
perhaps partially because of having such a relatively small warranted 
work force to manage a portfolio that is large and varied with a global 
footprint, the foreign service contracting staff has one of the highest 
attrition rates in USAID's work force.
    USAID made a strategic decision to create a cadre of highly 
qualified Cooperating Country Nationals, who have demonstrated high 
potential for assuming responsibilities to serve as administrative 
contracting officers within designated Missions. The purpose was to 
alleviate some of the workload of our contracting officer staff. During 
the two phases of the program, USAID added 6 warranted CCN 
administrative contracting officers. Currently, by the end of fiscal 
year 2016, we anticipate that there will be approximately 12 warranted 
CCN contracting officers. While a seemingly small number, that would 
represent an 8 percent increase of our overseas US direct hire 
warranted contracting officer staff.
    When designing the CCN Pilot Warrant Program, USAID consulted with 
the Senior Procurement Executive at the State Department and the 
unions. The State Department's SPE advised that State conducted a 
similar pilot several years ago, to great success. They now have a 
permanent program that extends limited authority to their locally-
employed staff in selected countries. The vice president of the 
American Foreign Service Association concurred with the Pilot, and was 
pleased by several of its protections.
    Based on that two-year pilot program, revisions were made to the 
program structure to better suit the Agency's needs before the 
permanent program was launched in September 2014. USAID eliminated the 
portion of the program that allowed for third country nationals to 
receive warrants. A comprehensive review of the CCN Pilot Warrant 
Program underscored a need to broaden participation through among other 
things, revision of qualifications and inclusion of full obligation 
warrant authority up to $150,000 per transaction and an annual 
cumulative amount of $1 million at the CCN Grade 13 Level to assist the 
Missions' procurement function. A better understanding of CCN grades 
and the grading process allowed for better clarity of expectations for 
Missions and warrant applicants. To help mitigate CCN inexperience from 
leading to mistakes or malfeasance, the revised CCN Warrant Program 
includes several levels of obligation authority and non-monetary 
administrative responsibility correlating to CCN grade/experience 
within the acquisition backstop. Increasing degrees of responsibility 
and/or obligation authority, as applicable, are granted.
    The permanent CCN Warrant Program currently establishes three 
levels of

[[Page 55407]]

contracting officer responsibilities that can be designated to a CCN 
personal services contractor depending on the needs of each mission, 
complexity and dollar value of the acquisitions, and the individual's 
experience, training, education, business acumen, judgment, reputation 
and grade level.
    At the first level, a CCN PSC may be delegated authority for select 
contract administration functions listed in (48 CFR) FAR 42.302(a), 
including, for example, conducting post-award orientation conferences, 
approving contractors' requests for payments under the progress 
payments or performance-based payments clauses.
    At the second level, in addition to performing the administrative 
functions discussed above, a CCN PSC contracting officer may be 
delegated authority to obligate incremental funding of any amount 
within the scope and total estimated cost of a contract (to include 
task orders and purchase orders).
    At the third and highest participating grade level, in addition to 
the incremental funding obligation authority and post-award 
administration duties described in levels one and two above, a CCN PSC 
contracting officer may be delegated authority to execute new awards 
for a total award amount not to exceed one hundred fifty thousand 
dollars ($150,000). This authority is further subject to a new award 
cumulative obligation limit of one million dollars ($1 million) per 
Fiscal Year. No deviation from these limitations is authorized.

Regulatory Authorities and Limitations

    (48 CFR) FAR part 1 establishes the authority for Agency heads to 
select and appoint contracting officers and it does not specify that 
contracting officers must be U.S. citizen direct-hire employees of the 
Federal government. (48 CFR) FAR part 7.5 includes contracting officer 
duties in the list of inherently governmental functions or functions 
that must be treated as such, but does not exclude personal services 
contractors hired under a statutory authority from performing such 
functions.
    (48 CFR) AIDAR 701.603-70 currently limits delegations of 
contracting officer authorities to U.S. citizen direct-hire employees 
of the U.S. Government as a matter of Agency policy. However, section 
4(b)(3) of (48 CFR) AIDAR Appendix D and the corresponding section of 
Appendix J contain an exception for PSCs to be delegated contracting 
officer authority with approval from the Assistant Administrator for 
the Bureau of Management.
    In September 2014, USAID issued a two-year class deviation from 48 
CFR) AIDAR 701.603-70 to establish the permanent CCN PSC warrant 
program to allow a limited number of selected and qualified CCN PSCs to 
be delegated contracting officer authorities. In conjunction with the 
approval of the class deviation described above, the Assistant 
Administrator for the Bureau for Management approved a class exception 
to the limitations in (48 CFR) AIDAR Appendix J 4(b)(3). By this rule 
USAID is proposing to revise (48 CFR) AIDAR to permanently authorize 
delegation of contracting officer authorities to a limited number of 
selected and qualified CCN PSCs.

Discussion

    Prior to establishing the permanent CCN warrant program, the Agency 
reviewed the risks associated with issuing CO warrants to Non-U.S. 
citizens who are not direct-hire employees of USAID. In particular, 
such factors as proper accountability, adequate security 
considerations, conflicts of interest, and appropriate legal 
jurisdiction over the employee were considered. Adequate management 
controls and warrant limitations established under the CCN PSC warrant 
program, as discussed below, were established to mitigate such risks.
    To address the risks associated with adequate accountability and 
conflict of interest, the warrant program requires candidates for the 
CCN PSC warrant program to show commitment to the profession by meeting 
stringent acquisition competencies, education and training 
requirements. In addition to meeting these requirements, potential 
candidates must have extensive experience in Direct U.S. Federal 
Government Contracting and clearly demonstrate professional and ethical 
behavior. When reviewing applications for a CCN PSC warrant, the agency 
contacts past performance references (typically, the candidate's last 
three Supervisory Contracting Officers) and any other sources deemed 
appropriate for signs of potential risks or cautions that may be 
detrimental to the responsibilities inherent in this Program. The 
candidate's supervisor must also attest to the candidate's education, 
training, experience, business acumen, judgment, character, reputation 
and ethical behavior.
    Additionally, the Program requires the CCN contracting officer's 
supervisor to closely and frequently monitor the CCN PSC's work and 
review performance and progress every six months. This review is 
followed by periodic reviews conducted by the Bureau for Management, 
Office of Acquisition and Assistance, Evaluation Division, which is 
responsible for the program implementation.
    CCN PSC contracting officers will support the functions of the 
overseas Mission's Office of Acquisition & Assistance (A&A), which 
typically include acquisition and assistance awards implementing the 
Agency's foreign assistance programs and activities. CCN PSC 
contracting officers are currently not delegated authority to award any 
personal services contracts. The program also limits delegated 
authority for select contract administration functions listed in (48 
CFR) FAR 42.302(a), specifically, the contracting officer functions in 
which disputes or possible legal challenges may arise due to decisions 
of the contracting officer, functions related to novation and 
contractor name changes, which may be a result of changes in a 
contractor's business structure as governed under applicable U.S. state 
law and other functions based on U.S. state laws, functions related to 
small business contracting matters and those requiring extensive 
knowledge of specific U.S. laws and government-wide policies not 
specifically related to contracting. Accordingly, the functions 
specified in items 5-7, 9-12, 18, 21-26, 29, 32,50, 52-55, 62-63, 66 
and 68-71 of (48 CFR) FAR 42.302(a) will not be redelegated to CCN PSC 
contracting officers.
    To address conflict of interest concerns, the program relies on the 
standard clause entitled ``Compliance with Laws and Regulations 
Applicable Abroad'', included in all personal services contracts with 
CCNs, that mandates compliance with the Standards of Conduct for 
Executive Branch Employees. These standards, available at https://www2.oge.gov/web/oge.nsf/All%20Documents/5D633072D0B2DB5085257E96006A90E7?opendocument, contain two provisions 
addressing financial interests that conflict with an individual's 
official duties. The first provision, entitled ``Disqualifying 
financial interests,'' prohibits an employee from participating in an 
official government capacity in a matter in which he has a financial 
interest or in which his spouse, minor child, employer, or any one of 
several other specified persons has a financial interest. The second 
provision, entitled ``Prohibited financial interests,'' contains 
authority by which agencies may prohibit employee from acquiring or 
retaining certain financial interests. To address the security 
concerns, the Program uses the current process, in which the USAID 
Office of

[[Page 55408]]

Security and Department of State, Office of Security conduct background 
checks on potential personal service contractors. Recognizing the fact 
that some countries may not have adequate legal systems or may be 
unwilling to provide assistance in prosecuting their citizens for U.S. 
procurement infractions, the CCN PSC Warrant Program established the 
following management controls designed to minimize the risk that such 
legal actions might be necessary:

--Stringent eligibility criteria,
--Reasonable single purchase and cumulative annual limits for new 
awards.
--CCN participation in this program is limited to one candidate per 
contracting officer warrant level per overseas mission. This limitation 
may be expanded only if it is deemed by the Senior Procurement 
Executive to be in the best interest of the Agency.
--Ongoing risk assessments are performed throughout the Program 
implementation to assure compliance with the program requirements.

    USAID is seeking public comments on the proposed changes to the 
AIDAR to implement the agency CCN PSC Warrant Program.

C. Impact Assessment

    (1) Regulatory Planning and Review. Under E.O. 12866, USAID must 
determine whether a regulatory action is ``significant'' and therefore 
subject to the requirements of the E.O. and subject to review by the 
Office of Management and Budget (OMB). USAID has determined that this 
Rule is not an ``economically significant regulatory action'' under 
Section 3(f)(1) of E.O. 12866. This proposed rule is not a major rule 
under 5 U.S.C. 804.
    (2) Regulatory Flexibility Act. The rule will not have an impact on 
a substantial number of small entities within the meaning of the 
Regulatory Flexibility Act, 5 U.S.C. 601, et seq. Therefore, an Initial 
Regulatory Flexibility Analysis has not been performed.
    (3) Paperwork Reduction Act. The proposed rule does not establish a 
new collection of information that requires the approval of the Office 
of Management and Budget under the Paperwork Reduction Act (44 U.S.C. 
chapter 35).

List of Subjects in 48 CFR Chapter 7 Parts 701, 722 and Appendix J

    Government procurement.

    For the reasons discussed in the preamble, USAID amends 48 CFR 
Chapter 7 as set forth below:

0
1. The authority citation for 48 CFR Chapter 7 parts 701, 722 and 
Appendix J continues to read as follows:

    Authority: Sec. 621, Pub. L. 87-195, 75 Stat. 445, (22 U.S.C. 
2381) as amended; E.O. 12163, Sept. 29, 1979, 44 FR 56673; and 3 CFR 
1979 Comp., p. 435.

PART 701--FEDERAL ACQUISITION REGULATION SYSTEM

Subpart 701.6--Career Development, Contracting Authority, And 
Responsibilities

0
2. Amend 701.603-70 by adding two sentences to the end to read as 
follows:


701.603-70  Designation of contracting officers.

     * * * However, upon approval of an exception by the Assistant 
Administrator for the Bureau for Management (AA/M), in accordance with 
the limitations in AIDAR Appendix D, the Senior Procurement Executive 
may designate a USPSC as a Contracting Officer or delegate the USPSC 
authority to sign obligating and subobligating documents. The Senior 
Procurement Executive may also delegate limited contracting officer 
authority to Cooperating Country National personal service contractors 
(CCN PSCs) who meet the requirements in the Agency's warrant program 
for CCN PSCs, as specified in Appendix J.

PART 722--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITION

Subpart 722.1--Basic Labor Policies

0
3. Amend 722.170 by adding two sentences at the end of paragraph(a) to 
read as follows:


722.170  Employment of third country nationals (TCN's) and cooperating 
country nationals (CCN's).

    (a) * * * This policy does not apply to consultants, as defined in 
AIDAR Clause 752.202-1(e), who are engaged to advise the contractor on 
a temporary or intermittent basis and do not receive standard benefits 
available to the contractor's employees. It is the contractor's 
responsibility to identify if the individual being hired is an employee 
or a consultant.
* * * * *
0
4. Revise paragraphs (b)(3)b. and (b)(4) to read as follows:

Appendix J to Chapter 7--Direct USAID Contracts With a Cooperating 
Country National and With a Third Country National for Personal 
Services Abroad

4--Policy

* * * * *
    (b) Limitations on Personal Services Contracts.
    (3) * * *
    b. They may not be designated as Contracting Officers or 
delegated authority to sign obligating or subobligating documents, 
unless specifically delegated limited contracting officer authority 
by the Senior Procurement Executive. In order to be delegated 
limited contracting officer authority, Cooperating Country National 
PSCs (CCN PSCs) must meet the requirements in the Agency's warrant 
program for CCN PSCs.
* * * * *
    (4) Exceptions. Exceptions to the limitations in (b)(3)(a), (c), 
(d) and (e) must be approved by the Assistant Administrator for 
Management (AA/M).
* * * * *

    Dated: July 27, 2016.
Roy Plucknett,
Chief Acquisition Officer.

[FR Doc. 2016-19709 Filed 8-18-16; 8:45 am]
 BILLING CODE 6116-01-P



                                                                            Federal Register / Vol. 81, No. 161 / Friday, August 19, 2016 / Proposed Rules                                                55405

                                                    deficient.1 The approval of Rule 432 is                 impose additional requirements beyond                 H. Executive Order 13211: Actions That
                                                    limited because EPA is simultaneously                   those imposed by state law.                           Significantly Affect Energy Supply,
                                                    proposing a limited disapproval of Rule                                                                       Distribution, or Use
                                                                                                            C. Regulatory Flexibility Act (RFA)
                                                    432 under section 110(k)(3). If this                                                                            This action is not subject to Executive
                                                    limited disapproval is finalized, it will                  I certify that this action will not have           Order 13211, because it is not a
                                                    trigger sanctions under CAA section 179                 a significant economic impact on a                    significant regulatory action under
                                                    and 40 CFR 52.31 unless the EPA                         substantial number of small entities                  Executive Order 12866.
                                                    approves subsequent SIP revisions that                  under the RFA. This action will not
                                                    correct the rule deficiencies within 18                 impose any requirements on small                      I. National Technology Transfer and
                                                    months of the effective date of the final               entities beyond those imposed by state                Advancement Act (NTTAA)
                                                    action.                                                 law.                                                     Section 12(d) of the NTTAA directs
                                                       Note that Rule 432 has been adopted                                                                        the EPA to use voluntary consensus
                                                    by the BCAQMD, and the EPA’s final                      D. Unfunded Mandates Reform Act                       standards in its regulatory activities
                                                    limited disapproval would not prevent                   (UMRA)                                                unless to do so would be inconsistent
                                                    the local agency from enforcing it. The                                                                       with applicable law or otherwise
                                                                                                              This action does not contain any
                                                    limited disapproval also would not                                                                            impractical. The EPA believes that this
                                                                                                            unfunded mandate as described in
                                                    prevent any portion of the rule from                                                                          action is not subject to the requirements
                                                                                                            UMRA, 2 U.S.C. 1531–1538, and does
                                                    being incorporated by reference into the                                                                      of section 12(d) of the NTTAA because
                                                                                                            not significantly or uniquely affect small
                                                    federally enforceable SIP as discussed in                                                                     application of those requirements would
                                                                                                            governments. This action does not
                                                    a July 9, 1992 EPA memo found at:                                                                             be inconsistent with the CAA.
                                                                                                            impose additional requirements beyond
                                                    http://www.epa.gov/nsr/ttnnsr01/gen/
                                                                                                            those imposed by state law.                           J. Executive Order 12898: Federal
                                                    pdf/memo-s.pdf.
                                                                                                            Accordingly, no additional costs to                   Actions To Address Environmental
                                                       We will accept comments from the
                                                                                                            State, local, or tribal governments, or to            Justice in Minority Populations and
                                                    public on the proposed limited approval
                                                                                                            the private sector, will result from this             Low-Income Population
                                                    and limited disapproval for the next 30
                                                                                                            action.
                                                    days.                                                                                                            The EPA lacks the discretionary
                                                                                                            E. Executive Order 13132: Federalism                  authority to address environmental
                                                    III. Incorporation by Reference
                                                                                                                                                                  justice in this rulemaking.
                                                      In this rule, the EPA is proposing to                   This action does not have federalism
                                                    include in a final EPA rule regulatory                  implications. It will not have substantial            List of Subjects in 40 CFR Part 52
                                                    text that includes incorporation by                     direct effects on the states, on the                    Environmental protection, Air
                                                    reference. In accordance with                           relationship between the national                     pollution control, Incorporation by
                                                    requirements of 1 CFR 51.5, the EPA is                  government and the states, or on the                  reference, Intergovernmental relations,
                                                    proposing to finalize the incorporation                 distribution of power and                             New Source Review, Ozone, Particulate
                                                    by reference the BCAQMD rules                           responsibilities among the various                    matter, Reporting and recordkeeping
                                                    described in Table 1 of this preamble.                  levels of government.                                 requirements, Volatile organic
                                                    The EPA has made, and will continue                                                                           compounds.
                                                                                                            F. Executive Order 13175: Coordination
                                                    to make, these materials available                      With Indian Tribal Governments                          Authority: 42 U.S.C. 7401 et seq.
                                                    electronically through
                                                                                                                                                                    Dated: August 9, 2016.
                                                    www.regulations.gov and at the EPA                        This action does not have tribal
                                                                                                                                                                  Alexis Strauss,
                                                    Region IX Office (please contact the                    implications, as specified in Executive
                                                    person identified in the FOR FURTHER                    Order 13175, because the SIP is not                   Acting Regional Administrator, Region IX.
                                                    INFORMATION CONTACT section of this                     approved to apply on any Indian                       [FR Doc. 2016–19766 Filed 8–18–16; 8:45 am]
                                                    preamble for more information).                         reservation land or in any other area                 BILLING CODE 6560–50–P

                                                    IV. Statutory and Executive Order                       where the EPA or an Indian tribe has
                                                    Reviews                                                 demonstrated that a tribe has
                                                                                                            jurisdiction, and will not impose                     AGENCY FOR INTERNATIONAL
                                                      Additional information about these                    substantial direct costs on tribal                    DEVELOPMENT
                                                    statutes and Executive Orders can be                    governments or preempt tribal law.
                                                    found at http://www2.epa.gov/laws-                      Thus, Executive Order 13175 does not                  48 CFR Parts 701, 722 and Appendix J
                                                    regulations/laws-and-executive-orders.                  apply to this action.                                 RIN 0412–AA80
                                                    A. Executive Order 12866: Regulatory                    G. Executive Order 13045: Protection of
                                                    Planning and Review and Executive                                                                             Agency for International Development
                                                                                                            Children From Environmental Health                    Acquisition Regulation (AIDAR):
                                                    Order 13563: Improving Regulation and                   Risks and Safety Risks
                                                    Regulatory Review                                                                                             Agency Warrant Program for Individual
                                                                                                              The EPA interprets Executive Order                  Cooperating Country National
                                                      This action is not a significant                                                                            Personal Services Contractors
                                                                                                            13045 as applying only to those
                                                    regulatory action and was therefore not                                                                       (CCNPSCs)
                                                                                                            regulatory actions that concern
                                                    submitted to the Office of Management
                                                                                                            environmental health or safety risks that             AGENCY:  U.S. Agency for International
                                                    and Budget (OMB) for review.
                                                                                                            the EPA has reason to believe may
jstallworth on DSK7TPTVN1PROD with PROPOSALS




                                                                                                                                                                  Development.
                                                    B. Paperwork Reduction Act (PRA)                        disproportionately affect children, per               ACTION: Proposed rule.
                                                      This action does not impose an                        the definition of ‘‘covered regulatory
                                                    information collection burden under the                 action’’ in section 2–202 of the                      SUMMARY:  The U.S. Agency for
                                                    PRA because this action does not                        Executive Order. This action is not                   International Development (USAID)
                                                                                                            subject to Executive Order 13045                      proposes to amend the Agency for
                                                      1 If this proposed rule is finalized, Butte County    because it does not impose additional                 International Development Acquisition
                                                    Rules 400, 401 and 432, will supersede the existing     requirements beyond those imposed by                  Regulation (AIDAR) to incorporate a
                                                    SIP approved rules listed in Table 2.                   state law.                                            warrant program for cooperating


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                                                    55406                   Federal Register / Vol. 81, No. 161 / Friday, August 19, 2016 / Proposed Rules

                                                    country national personal service                       information provided. We recommend                    contracting staff has one of the highest
                                                    contractors (CCN PSCs) into the                         you do not submit information that you                attrition rates in USAID’s work force.
                                                    regulation. The purpose of the CCN PSC                  consider Confidential Business                           USAID made a strategic decision to
                                                    warrant program is not only to address                  Information (CBI) or any information                  create a cadre of highly qualified
                                                    a shortage of U.S. direct-hire contracting              that is otherwise protected from                      Cooperating Country Nationals, who
                                                    officers by delegating limited                          disclosure by statute. USAID will only                have demonstrated high potential for
                                                    contracting officer authorities to a select             address substantive comments on the                   assuming responsibilities to serve as
                                                    number of Cooperating Country                           rule. Comments that are insubstantial or              administrative contracting officers
                                                    National personal services contractors,                 outside the scope of the rule may not be              within designated Missions. The
                                                    but also to bolster the Agency to                       considered.                                           purpose was to alleviate some of the
                                                    succeed in terms of building long-term,                                                                       workload of our contracting officer staff.
                                                                                                            B. Background                                         During the two phases of the program,
                                                    host country technical capacity to
                                                    materially assist the Missions with                       USAID is seeking comments on the                    USAID added 6 warranted CCN
                                                    procurement responsibility. In addition,                proposed rule as described below:                     administrative contracting officers.
                                                    USAID is proposing to clarify that third                                                                      Currently, by the end of fiscal year 2016,
                                                                                                            (1) 722.170 Employment of Third                       we anticipate that there will be
                                                    country nationals (TCNs) and                            Country Nationals (TCN’s) and
                                                    cooperating country nationals (CCNs)                                                                          approximately 12 warranted CCN
                                                                                                            Cooperating Country Nationals (CCN’s)                 contracting officers. While a seemingly
                                                    employment requirements, contained in
                                                    section 722.170, do not apply to                          In response to numerous inquiries,                  small number, that would represent an
                                                    consultants.                                            USAID is proposing a revision of this                 8 percent increase of our overseas US
                                                                                                            section of the AIDAR to clarify that                  direct hire warranted contracting officer
                                                    DATES: Comments must be received no
                                                                                                            employment requirements for TCN and                   staff.
                                                    later than October 18, 2016.                                                                                     When designing the CCN Pilot
                                                                                                            CCN employees of a contractor do not
                                                    ADDRESSES: Address all comments                         apply to consultants. It is the                       Warrant Program, USAID consulted
                                                    concerning this notice to Lyudmila                      responsibility of a contractor to                     with the Senior Procurement Executive
                                                    Bond, Bureau for Management, Office of                  determine whether an individual being                 at the State Department and the unions.
                                                    Acquisition and Assistance, Policy                      hired is an employee or a consultant.                 The State Department’s SPE advised
                                                    Division (M/OAA/P), Room 867, SA–44,                                                                          that State conducted a similar pilot
                                                    Washington, DC 20523–2052. Submit                       (2) Cooperating Country National (CCN)                several years ago, to great success. They
                                                    comments, identified by title of the                    Warrant Program                                       now have a permanent program that
                                                    action and Regulatory Information                       Background                                            extends limited authority to their
                                                    Number (RIN) by any of the following                                                                          locally-employed staff in selected
                                                    methods:                                                  In 2011, the U.S. Agency for                        countries. The vice president of the
                                                       1. Through the Federal eRulemaking                   International Development (USAID)                     American Foreign Service Association
                                                    Portal at http://www.regulations.gov by                 approved a two-year Worldwide CCN                     concurred with the Pilot, and was
                                                    following the instructions for submitting               Administrative Contracting and                        pleased by several of its protections.
                                                    comments.                                               Agreement Officer (ACO/AAO) Pilot                        Based on that two-year pilot program,
                                                       2. By Mail addressed to: USAID,                      Warrant Program. The purpose of this                  revisions were made to the program
                                                    Bureau for Management, Office of                        program was to address the shortage of                structure to better suit the Agency’s
                                                    Acquisition & Assistance, Policy                        USAID contracting officers and build                  needs before the permanent program
                                                    Division, Room 867J, SA–44, 1300                        long-term, host country technical                     was launched in September 2014.
                                                    Pennsylvania Ave. NW., Washington,                      capacity to materially assist the                     USAID eliminated the portion of the
                                                    DC 20523–2052.                                          Missions with procurement                             program that allowed for third country
                                                    FOR FURTHER INFORMATION CONTACT:                        responsibility.                                       nationals to receive warrants. A
                                                    Lyudmila Bond, Telephone: 202–567–                        USAID is located in offices in over 80              comprehensive review of the CCN Pilot
                                                    4753 or Email: lbond@usaid.gov.                         countries with programs in over 100                   Warrant Program underscored a need to
                                                    SUPPLEMENTARY INFORMATION:                              nations. USAID operates in a fluid                    broaden participation through among
                                                                                                            environment responding to a myriad of                 other things, revision of qualifications
                                                    A. Instructions                                         crises such as war, natural disasters,                and inclusion of full obligation warrant
                                                       All comments must be in writing and                  epidemics, as well as its long term                   authority up to $150,000 per transaction
                                                    submitted through one of the methods                    mission of ending extreme poverty,                    and an annual cumulative amount of $1
                                                    specified in the Addresses section                      promoting resilient, democratic                       million at the CCN Grade 13 Level to
                                                    above. All submissions must include the                 societies while advancing our security                assist the Missions’ procurement
                                                    title of the action and RIN for this                    and prosperity. The warranted                         function. A better understanding of CCN
                                                    rulemaking. Please include your name,                   contracting force to manage this effort               grades and the grading process allowed
                                                    title, organization, postal address,                    consists of 150 US direct hire foreign                for better clarity of expectations for
                                                    telephone number, and email address in                  service contracting officers overseas,                Missions and warrant applicants. To
                                                    the text of the message.                                105 direct hire civil service contract                help mitigate CCN inexperience from
                                                       Please note that USAID recommends                    officers, 83 warranted foreign service                leading to mistakes or malfeasance, the
                                                    sending all comments to the Federal                     executive officers, 3 warranted US                    revised CCN Warrant Program includes
                                                    eRulemaking Portal because security                     personal service contractors managing                 several levels of obligation authority
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                                                    screening precautions have slowed the                   mission’s acquisition portfolio, and 4                and non-monetary administrative
                                                    delivery and dependability of surface                   warranted US personal service                         responsibility correlating to CCN grade/
                                                    mail to USAID/Washington.                               contractors serving as executive officers.            experience within the acquisition
                                                       After receipt of a comment and until                 In addition to, and perhaps partially                 backstop. Increasing degrees of
                                                    finalization of the action, all comments                because of having such a relatively                   responsibility and/or obligation
                                                    will be made available at http://                       small warranted work force to manage a                authority, as applicable, are granted.
                                                    www.regulations.gov for public review                   portfolio that is large and varied with a                The permanent CCN Warrant Program
                                                    without change, including any personal                  global footprint, the foreign service                 currently establishes three levels of


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                                                                            Federal Register / Vol. 81, No. 161 / Friday, August 19, 2016 / Proposed Rules                                          55407

                                                    contracting officer responsibilities that                  In September 2014, USAID issued a                  Bureau for Management, Office of
                                                    can be designated to a CCN personal                     two-year class deviation from 48 CFR)                 Acquisition and Assistance, Evaluation
                                                    services contractor depending on the                    AIDAR 701.603–70 to establish the                     Division, which is responsible for the
                                                    needs of each mission, complexity and                   permanent CCN PSC warrant program to                  program implementation.
                                                    dollar value of the acquisitions, and the               allow a limited number of selected and                   CCN PSC contracting officers will
                                                    individual’s experience, training,                      qualified CCN PSCs to be delegated                    support the functions of the overseas
                                                    education, business acumen, judgment,                   contracting officer authorities. In                   Mission’s Office of Acquisition &
                                                    reputation and grade level.                             conjunction with the approval of the                  Assistance (A&A), which typically
                                                      At the first level, a CCN PSC may be                  class deviation described above, the                  include acquisition and assistance
                                                    delegated authority for select contract                 Assistant Administrator for the Bureau                awards implementing the Agency’s
                                                    administration functions listed in (48                  for Management approved a class                       foreign assistance programs and
                                                    CFR) FAR 42.302(a), including, for                      exception to the limitations in (48 CFR)              activities. CCN PSC contracting officers
                                                    example, conducting post-award                          AIDAR Appendix J 4(b)(3). By this rule                are currently not delegated authority to
                                                    orientation conferences, approving                      USAID is proposing to revise (48 CFR)                 award any personal services contracts.
                                                    contractors’ requests for payments                      AIDAR to permanently authorize                        The program also limits delegated
                                                    under the progress payments or                          delegation of contracting officer                     authority for select contract
                                                    performance-based payments clauses.                     authorities to a limited number of                    administration functions listed in (48
                                                      At the second level, in addition to                   selected and qualified CCN PSCs.                      CFR) FAR 42.302(a), specifically, the
                                                    performing the administrative functions                                                                       contracting officer functions in which
                                                    discussed above, a CCN PSC contracting                  Discussion                                            disputes or possible legal challenges
                                                    officer may be delegated authority to                      Prior to establishing the permanent                may arise due to decisions of the
                                                    obligate incremental funding of any                     CCN warrant program, the Agency                       contracting officer, functions related to
                                                    amount within the scope and total                       reviewed the risks associated with                    novation and contractor name changes,
                                                    estimated cost of a contract (to include                issuing CO warrants to Non-U.S.                       which may be a result of changes in a
                                                    task orders and purchase orders).                       citizens who are not direct-hire                      contractor’s business structure as
                                                      At the third and highest participating                employees of USAID. In particular, such               governed under applicable U.S. state
                                                    grade level, in addition to the                         factors as proper accountability,                     law and other functions based on U.S.
                                                    incremental funding obligation                          adequate security considerations,                     state laws, functions related to small
                                                    authority and post-award administration                 conflicts of interest, and appropriate                business contracting matters and those
                                                    duties described in levels one and two                  legal jurisdiction over the employee                  requiring extensive knowledge of
                                                    above, a CCN PSC contracting officer                    were considered. Adequate management                  specific U.S. laws and government-wide
                                                    may be delegated authority to execute                   controls and warrant limitations                      policies not specifically related to
                                                    new awards for a total award amount                     established under the CCN PSC warrant                 contracting. Accordingly, the functions
                                                    not to exceed one hundred fifty                         program, as discussed below, were                     specified in items 5–7, 9–12, 18, 21–26,
                                                    thousand dollars ($150,000). This                       established to mitigate such risks.                   29, 32,50, 52–55, 62–63, 66 and 68–71
                                                    authority is further subject to a new                      To address the risks associated with               of (48 CFR) FAR 42.302(a) will not be
                                                    award cumulative obligation limit of                    adequate accountability and conflict of               redelegated to CCN PSC contracting
                                                    one million dollars ($1 million) per                    interest, the warrant program requires                officers.
                                                    Fiscal Year. No deviation from these                    candidates for the CCN PSC warrant                       To address conflict of interest
                                                    limitations is authorized.                              program to show commitment to the                     concerns, the program relies on the
                                                                                                            profession by meeting stringent                       standard clause entitled ‘‘Compliance
                                                    Regulatory Authorities and Limitations                  acquisition competencies, education                   with Laws and Regulations Applicable
                                                      (48 CFR) FAR part 1 establishes the                   and training requirements. In addition                Abroad’’, included in all personal
                                                    authority for Agency heads to select and                to meeting these requirements, potential              services contracts with CCNs, that
                                                    appoint contracting officers and it does                candidates must have extensive                        mandates compliance with the
                                                    not specify that contracting officers                   experience in Direct U.S. Federal                     Standards of Conduct for Executive
                                                    must be U.S. citizen direct-hire                        Government Contracting and clearly                    Branch Employees. These standards,
                                                    employees of the Federal government.                    demonstrate professional and ethical                  available at https://www2.oge.gov/web/
                                                    (48 CFR) FAR part 7.5 includes                          behavior. When reviewing applications                 oge.nsf/All%20Documents/5D6330
                                                    contracting officer duties in the list of               for a CCN PSC warrant, the agency                     72D0B2DB5085257E96006A90E7?open
                                                    inherently governmental functions or                    contacts past performance references                  document, contain two provisions
                                                    functions that must be treated as such,                 (typically, the candidate’s last three                addressing financial interests that
                                                    but does not exclude personal services                  Supervisory Contracting Officers) and                 conflict with an individual’s official
                                                    contractors hired under a statutory                     any other sources deemed appropriate                  duties. The first provision, entitled
                                                    authority from performing such                          for signs of potential risks or cautions              ‘‘Disqualifying financial interests,’’
                                                    functions.                                              that may be detrimental to the                        prohibits an employee from
                                                      (48 CFR) AIDAR 701.603–70 currently                   responsibilities inherent in this                     participating in an official government
                                                    limits delegations of contracting officer               Program. The candidate’s supervisor                   capacity in a matter in which he has a
                                                    authorities to U.S. citizen direct-hire                 must also attest to the candidate’s                   financial interest or in which his
                                                    employees of the U.S. Government as a                   education, training, experience,                      spouse, minor child, employer, or any
                                                    matter of Agency policy. However,                       business acumen, judgment, character,                 one of several other specified persons
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                                                    section 4(b)(3) of (48 CFR) AIDAR                       reputation and ethical behavior.                      has a financial interest. The second
                                                    Appendix D and the corresponding                           Additionally, the Program requires                 provision, entitled ‘‘Prohibited financial
                                                    section of Appendix J contain an                        the CCN contracting officer’s supervisor              interests,’’ contains authority by which
                                                    exception for PSCs to be delegated                      to closely and frequently monitor the                 agencies may prohibit employee from
                                                    contracting officer authority with                      CCN PSC’s work and review                             acquiring or retaining certain financial
                                                    approval from the Assistant                             performance and progress every six                    interests. To address the security
                                                    Administrator for the Bureau of                         months. This review is followed by                    concerns, the Program uses the current
                                                    Management.                                             periodic reviews conducted by the                     process, in which the USAID Office of


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                                                    55408                   Federal Register / Vol. 81, No. 161 / Friday, August 19, 2016 / Proposed Rules

                                                    Security and Department of State, Office                ■  1. The authority citation for 48 CFR                  (b) Limitations on Personal Services
                                                    of Security conduct background checks                   Chapter 7 parts 701, 722 and Appendix                  Contracts.
                                                    on potential personal service                           J continues to read as follows:                          (3) * * *
                                                    contractors. Recognizing the fact that                                                                           b. They may not be designated as
                                                                                                              Authority: Sec. 621, Pub. L. 87–195, 75              Contracting Officers or delegated authority to
                                                    some countries may not have adequate                    Stat. 445, (22 U.S.C. 2381) as amended; E.O.           sign obligating or subobligating documents,
                                                    legal systems or may be unwilling to                    12163, Sept. 29, 1979, 44 FR 56673; and 3              unless specifically delegated limited
                                                    provide assistance in prosecuting their                 CFR 1979 Comp., p. 435.                                contracting officer authority by the Senior
                                                    citizens for U.S. procurement                                                                                  Procurement Executive. In order to be
                                                    infractions, the CCN PSC Warrant                        PART 701—FEDERAL ACQUISITION                           delegated limited contracting officer
                                                    Program established the following                       REGULATION SYSTEM                                      authority, Cooperating Country National
                                                    management controls designed to                                                                                PSCs (CCN PSCs) must meet the
                                                                                                            Subpart 701.6—Career Development,                      requirements in the Agency’s warrant
                                                    minimize the risk that such legal actions               Contracting Authority, And
                                                    might be necessary:                                                                                            program for CCN PSCs.
                                                                                                            Responsibilities                                       *        *   *      *     *
                                                    —Stringent eligibility criteria,
                                                                                                            ■ 2. Amend 701.603–70 by adding two                      (4) Exceptions. Exceptions to the
                                                    —Reasonable single purchase and                                                                                limitations in (b)(3)(a), (c), (d) and (e) must
                                                       cumulative annual limits for new                     sentences to the end to read as follows:
                                                                                                                                                                   be approved by the Assistant Administrator
                                                       awards.                                              701.603–70        Designation of contracting           for Management (AA/M).
                                                    —CCN participation in this program is                   officers.                                              *        *   *      *     *
                                                       limited to one candidate per                           * * * However, upon approval of an                     Dated: July 27, 2016.
                                                       contracting officer warrant level per                exception by the Assistant
                                                       overseas mission. This limitation may                                                                       Roy Plucknett,
                                                                                                            Administrator for the Bureau for                       Chief Acquisition Officer.
                                                       be expanded only if it is deemed by                  Management (AA/M), in accordance
                                                       the Senior Procurement Executive to                  with the limitations in AIDAR                          [FR Doc. 2016–19709 Filed 8–18–16; 8:45 am]
                                                       be in the best interest of the Agency.               Appendix D, the Senior Procurement                     BILLING CODE 6116–01–P
                                                    —Ongoing risk assessments are                           Executive may designate a USPSC as a
                                                       performed throughout the Program                     Contracting Officer or delegate the
                                                       implementation to assure compliance                  USPSC authority to sign obligating and                 DEPARTMENT OF COMMERCE
                                                       with the program requirements.                       subobligating documents. The Senior
                                                       USAID is seeking public comments on                  Procurement Executive may also                         National Oceanic and Atmospheric
                                                    the proposed changes to the AIDAR to                    delegate limited contracting officer                   Administration
                                                    implement the agency CCN PSC                            authority to Cooperating Country
                                                    Warrant Program.                                        National personal service contractors                  50 CFR Parts 300 and 679
                                                    C. Impact Assessment                                    (CCN PSCs) who meet the requirements                   [Docket No. 151001910–6690–01]
                                                                                                            in the Agency’s warrant program for
                                                       (1) Regulatory Planning and Review.                                                                         RIN 0648–BF42
                                                                                                            CCN PSCs, as specified in Appendix J.
                                                    Under E.O. 12866, USAID must
                                                    determine whether a regulatory action is                PART 722—APPLICATION OF LABOR                          Fisheries of the Exclusive Economic
                                                    ‘‘significant’’ and therefore subject to                LAWS TO GOVERNMENT                                     Zone Off Alaska; Allow the Use of
                                                    the requirements of the E.O. and subject                ACQUISITION                                            Longline Pot Gear in the Gulf of Alaska
                                                    to review by the Office of Management                                                                          Sablefish Individual Fishing Quota
                                                    and Budget (OMB). USAID has                             Subpart 722.1—Basic Labor Policies                     Fishery; Amendment 101
                                                    determined that this Rule is not an                     ■ 3. Amend 722.170 by adding two                       AGENCY:  National Marine Fisheries
                                                    ‘‘economically significant regulatory                   sentences at the end of paragraph(a) to                Service (NMFS), National Oceanic and
                                                    action’’ under Section 3(f)(1) of E.O.                  read as follows:                                       Atmospheric Administration (NOAA),
                                                    12866. This proposed rule is not a major                                                                       Commerce.
                                                    rule under 5 U.S.C. 804.                                722.170 Employment of third country                    ACTION: Proposed rule; request for
                                                       (2) Regulatory Flexibility Act. The                  nationals (TCN’s) and cooperating country
                                                                                                            nationals (CCN’s).
                                                                                                                                                                   comments.
                                                    rule will not have an impact on a
                                                    substantial number of small entities                      (a) * * * This policy does not apply                 SUMMARY:   NMFS issues a proposed rule
                                                    within the meaning of the Regulatory                    to consultants, as defined in AIDAR                    to implement Amendment 101 to the
                                                    Flexibility Act, 5 U.S.C. 601, et seq.                  Clause 752.202–1(e), who are engaged to                Fishery Management Plan for
                                                    Therefore, an Initial Regulatory                        advise the contractor on a temporary or                Groundfish of the Gulf of Alaska (GOA
                                                    Flexibility Analysis has not been                       intermittent basis and do not receive                  FMP) for the sablefish individual fishing
                                                    performed.                                              standard benefits available to the                     quota (IFQ) fisheries in the Gulf of
                                                       (3) Paperwork Reduction Act. The                     contractor’s employees. It is the                      Alaska (GOA). This proposed rule
                                                    proposed rule does not establish a new                  contractor’s responsibility to identify if             would authorize the use of longline pot
                                                    collection of information that requires                 the individual being hired is an                       gear in the GOA sablefish IFQ fishery.
                                                    the approval of the Office of                           employee or a consultant.                              This proposed rule would establish
                                                    Management and Budget under the                         *     *     *    *     *                               management measures to minimize
                                                    Paperwork Reduction Act (44 U.S.C.                      ■ 4. Revise paragraphs (b)(3)b. and (b)(4)             potential conflicts between hook-and-
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                                                    chapter 35).                                            to read as follows:                                    line and longline pot gear used in the
                                                    List of Subjects in 48 CFR Chapter 7                    Appendix J to Chapter 7—Direct USAID                   sablefish IFQ fisheries in the GOA. This
                                                    Parts 701, 722 and Appendix J                           Contracts With a Cooperating Country                   proposed rule also includes proposed
                                                                                                            National and With a Third Country                      regulations developed under the
                                                      Government procurement.                                                                                      Northern Pacific Halibut Act of 1982
                                                                                                            National for Personal Services Abroad
                                                      For the reasons discussed in the                                                                             (Halibut Act) to authorize harvest of
                                                    preamble, USAID amends 48 CFR                           4—Policy                                               halibut IFQ caught incidentally in
                                                    Chapter 7 as set forth below:                           *      *      *       *       *                        longline pot gear used in the GOA


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Document Created: 2016-08-19 01:35:17
Document Modified: 2016-08-19 01:35:17
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received no later than October 18, 2016.
ContactLyudmila Bond, Telephone: 202-567-4753 or Email: [email protected]
FR Citation81 FR 55405 
RIN Number0412-AA80
CFR Citation48 CFR 701
48 CFR 722

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