Determination and Findings.pdf

Tab 1: Determination and Findings

ADMINISTRATOR FOR THE U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT

DETERMINATION AND FINDINGS (D&F)

Implementing the Foreign Service Pay Schedule and Overseas Comparability Pay for Contract

Awards with U.S. Personal Services Contractors (USPSCs) Stationed Abroad

1. Nature and description of the action being approved:

This request seeks the approval for the use of other than full and open competition to authorize the bilateral modifications of the class of contract awards for USPSC incumbents with a place of performance at one or more posts “abroad,” meaning outside the United States and its territories and possessions (aka hereafter, “USPSCs stationed abroad”). This class also equates to an existing USPSC procured under the statutory authority of the Foreign Assistance Act of 1961, as amended (FAA), in section 636(a)(3), or within the scope of any other statutory authority that allows performance abroad, and the contractual place of performance is only abroad, whether at one or multiple posts.1 The purpose of the bilateral modification, subject to the contractor’s agreement, would be to materially change the terms of existing awards to provide compensation for USPSCs stationed abroad using comparable class levels of the Foreign Service (FS) pay and step schedule, including overseas comparability pay (OCP) and related policies including step increase waiting periods, overall aggregate pay caps, and establishing premium pay caps with biweekly premium pay cap waiver authority. USPSCs in the class who are Resident Hire USPSCs are included in the class for FS-based pay; however they are ineligible for the OCP component.

2. Citation of the Authority upon which this D&F is based:

Pursuant to USAID Acquisition Regulation (AIDAR) 706.302-70(b)(3)(ii), full and open competition need not be obtained for awards for countries, regions, projects, or programs for which the Administrator or Deputy Administrator of USAID, as appropriate, makes a formal written Determination and Findings (D&F), that compliance with full and open competition procedures would impair foreign assistance objectives and would be inconsistent with the fulfillment of foreign assistance programs.

3. Findings:

1 This does not apply to USPSCs with a worldwide place of performance or U.S. Resident Hires.

USAID relies on USPSCs stationed abroad to meet critical technical requirements in delivering its development and humanitarian assistance. Without their support, the Agency would face challenges in fully executing its foreign assistance programs and managing key development initiatives. This gap is already evident in regions where USAID has been unable to fill essential USPSC positions.

In October 2023, the USAID Administrator decided that contracts for USPSCs stationed abroad will use the Foreign Service (FS) compensation plan instead of the Civil Service (CS) plan. This decision reflects the Agency’s commitment to fostering parity across hiring mechanisms, recognizing that the overseas USPSC work environment aligns more closely with the FS context.

Adopting the FS salary schedule for these positions also aligns with State Department policy established in 3 FAM 9000 in 2017, which applies comparable class levels of the FS pay schedule for PSCs working overseas. By using the FS schedule for USPSCs performing abroad, including applicable overseas comparability pay (OCP), step increases, pay caps, and premium pay waivers, USAID aims to reduce compensation disparities across its overseas workforce and to attract and retain critical staff needed to carry out its development and humanitarian missions.

4. Determination:

As USAID begins hiring new USPSCs under the FS compensation package, a gap will emerge between the current overseas USPSC workforce and the new hires. The current contracts were awarded under USAID’s AIDAR Appendix D policies, using the Civil Service (CS) General Schedule for compensation. Transitioning these positions to the Foreign Service (FS) Schedule would be a significant change, requiring competition. Recompeting the contracts for the current workforce would be complex and disruptive, creating operational, programmatic, and reputational risks for the Agency. USAID would have to initiate approximately 500 new contract solicitations globally to procure the same services we have already, increasing the workload of an already critically under-resourced contracting staff, and; USPSCs would be required to recompete for their current positions, distracting them from their mission-critical work and creating unnecessary job uncertainty, which increases the risk of losing staff. Delaying recompete until contract periods end (which could be one to five years) would risk losing current staff to more competitive opportunities, leading to a prolonged cycle of filling vacancies, further disrupting operations. Neither of these options is beneficial to the USG; rather they will be costly to implement (resources needed to recompete the contracts, onboard, etc.), increase the risk of losing critical staff, and create a global disruption of services across USAID Missions and impair the delivery of foreign assistance.

Modifying contracts for incumbent USPSCs stationed abroad is the least disruptive option to USAID’s operations and would not impair its ability to deliver foreign assistance. USAID contracting officers will offer all USPSCs stationed abroad a bilateral contract modification, allowing them to transition to the FS pay schedule, if they choose to do so. Instructions for this process will be provided to the contracting officers through an Acquisition and Assistance Policy Directive (AAPD), which will include a class deviation from the AIDAR Appendix D regulation authorizing FS-based pay for these contractors. The contract modifications will be made without full and open competition due to the determination that following full competition procedures would be so disruptive to current overseas operations that it would impair the delivery of foreign assistance.

5. Expiration

This D&F is effective immediately upon my authorization and will remain valid for 12 months from the date of approval.

DETERMINATION AND FINDINGS BY THE ACTING DEPUTY ADMINISTRATOR FOR

MANAGEMENT AND RESOURCES FOR USAID

As the authorized official, based on the findings described above, I have determined that the proposed action is justified in accordance with AIDAR 706.302-70(b)(3)(ii).

_____________________________________ 12/6/24________________ Samantha Power Date Administrator