April 28, 1992
Subject: Agency for International Development Personnel Compensation Limit: Update
The Agency for International Development (AID) continues to have a maximum compensation limit for contractor employees and consultants which is tied to the maximum payable annual or daily rate for a Foreign Service Officer Class FS-1. The compensation limit is applicable to all AID contracts that include AID Acquisition Regulation 752.7007, Personnel Compensation. (Copy attached.)
The current maximum compensation (employee's base annual salary plus overseas recruitment incentive, if any) for an FS-1 is $83,502 annually or $321.16 per day ($83,502/260 days). For consultants, this limit is exclusive of indirect costs and expenses. This rate changes in accordance with changes in the federal government employees' pay schedule.
According to AID contract administration staff, proposal budgets should reflect applicable contractor and consultant salaries, whether or not they exceed the current allowable AID maximum. When AID decides to award a contract, compensation above the limit is either negotiated or a waiver of the AID compensation limit is approved. A contract signed on behalf of AID does not by itself constitute a waiver of the compensation limit. Either waiver language must be in the contract or a separate waiver form signed by an AID Assistant Administrator or other delegated authority, not the Contracting Officer, must be provided. The waiver should state to which budgeted positions it applies. For any additional consultants or personnel added after the contract is signed whose compensation is over the limit, a separate waiver is needed.
Justification for a waiver is based on AID's analysis that the position is key for completing a task or project and that the work cannot be done by someone with lesser skills.
Samuela A. Evans (510) 987-9849
Subject Index: 07
Organization Index: F-645
David F. Mears
cc: Accounting Officers