LSSSsolMOSCOW.docx

SF-33

SECTION B

SUPPLIES OR SERVICES AND PRICES/COSTS

B.1 Scope of Services

The Contractor shall provide the advisory and assistance services for the Embassy of the United States of America in Moscow, Russian Federation, with regard to payroll and tax withdrawal requirements implemented by the Embassy on behalf of its Russian employees. Services required under this contract are described in Section C and Exhibits in Section J. The groups of employees who shall be receiving these services are listed in paragraph C.16.

B.1.1. OFFERS AND PAYMENT IN U.S. DOLLARS - U.S. firms are eligible to be paid in U.S. Dollars. U.S. firms desiring to be paid in U.S. dollars should submit their offers in U.S. dollars. A U.S. firm is defined as a company which operates as a corporation incorporated under the laws of a state within the United States.

FOREIGN FIRMS - Any firm, which is not a U.S. firm, is a foreign firm. Any firm that does not meet the above definition of U.S. firm shall submit its prices and receive payment in local currency.

B.2 Type of Contract

The contract type shall be a fixed price requirements type contract under which will be issued firm, fixed-price task orders. The fixed prices for advisory and assistance services are as follows:

B.3 Prices for Services. Prices for services shall include all labor, material, overhead and profit. Value Added Tax (VAT) shall be specified on a separate line item, if applicable.

B.3.1 BASE YEAR OF THE CONTRACT STARTING ON THE DATE STATED IN THE NOTICE TO PROCEED AND CONTINUING FOR A PERIOD OF 12 MONTHS.

Line Item 001:

to register new Russian employees of the U.S. Embassy Moscow and three constituent posts located in St. Petersburg, Vladivostok and Yekaterinburg with the Pension Fund (See Section C.4 for details).

A. Total Price for Line Item #001 for Base Year (Price per person x 36): ___________

Line Item 002:

Month for all Employees

Calculate monthly 900 _______ ___________ contributions to three Social Security Funds (Medical Insurance Fund, Social Insurance Fund and Pension Fund) and Trauma contributions to be paid by the U.S. Government as an Employer (See Section C.5 for details).

B. Total Price for Line Item #002 for Base Year (Total Estimated Price per Month x 12): ________

Line Item 003:

Month for all Employees

Calculate monthly income taxes 900 _______ __________ for all Russian employees based on salary information and net amounts payable to each employee (See Section C.6 for details).

C. Total Price for Line Item # 003 for Base Year (Total Estimated Price per Month x 12): ___________

Line Item 004 :

Consultation services for Embassy 24 _______ __________ Personnel with duration 60 minutes each Consultation (See Section C.7 for details).

D. Subtotal for Line Item #004 for Base Year (Consultation Price x 24): ____________

Line Item 005:

Preparation and submission 26 ________ _________ of seven (7) management/financial biweekly Reports for the internal use of the U.S. Embassy (see Section C.8 for details).

E. Total Price for Line Item #005 for Base Year (Unit Price x 26): ___________

Line Item 006:

Preparation and submission 12 ______ _________ of one (1) management/financial Monthly Report for the internal use of the U.S. Embassy (see Section C.9 for details).

F. Total Price for Line Item #006 for Base Year (Unit Price x 12): _________

Line Item 007

Preparation and submission of four (4) Quarterly Reports 4 ________ __________ to the Social Insurance Fund and Pension Fund (see Section C.10 for details).

G. Subtotal for Line Item #007 for Base Year (Unit Price x 4): _________

Line Item 008

Preparation and submission 1 ________ _________ of one (1) management/financial Annual Report for the internal use of the U.S. Embassy (see Section C.11 for details).

H. Subtotal for Line Item #008 for Base Year (Unit Price x 1): _________

Preparation and Submission 900 _______ _________ of annual employees salary Statements (est. 900) to the Russian Tax Inspectorate (Form №2-NDFL). See Section C.12 for details.

I. Subtotal for Line Item #009 for Base Year (900 x Unit Price): _________

Line Item 010:

Preparation and Submission of 1 _______ _________ One (1) annual Report on Average Number of Employees to the Russian Tax Inspectorate.

See Section C.13 for details

J. Subtotal for Line Item #010 for Base Year (Unit Price x 1): _________

Line Item 011:

Preparation and Submission 1 _________ _________ of Report in Confirmation of the main type of Activity to the Social Insurance Fund. See Section C.14 for details.

B.3.2. OPTION YEAR ONE OF CONTRACT COMMENCING THE NEXT DAY UPON EXPIRATION OF BASE YEAR AND CONTINUING FOR A PERIOD OF 12 MONTHS

Line Item 001:

to register new Russian employees of the U.S. Embassy Moscow and three constituent posts located in St. Petersburg, Vladivostok and Yekaterinburg with the Pension Fund (See Section C.4 for details).

A. Total Price for Line Item #001 for Option Year One (Price per person x 36): ________ Line Item 002:

Month for all Employees

Calculate monthly 900 _______ ___________ contributions to three Social Security Funds (Medical Insurance Fund, Social Insurance Fund and Pension Fund) and Trauma contributions to be paid by the U.S. Government as an Employer (See Section C.5 for details).

B. Total Price for Line Item #002 for Option Year One (Total Estimated Price per Month x 12): ______

Line Item 003:

Month for all Employees

Calculate monthly income taxes 900 _______ __________ for all Russian employees based on salary information and net amounts payable to each employee (See Section C.6 for details).

C. Total Price for Line Item # 003 for Option Year One (Total Estimated Price per Month x 12): ______

Line Item 004 :

Consultation services for Embassy 24 _______ __________ Personnel with duration 60 minutes each

D. Subtotal for Line Item #004 for Option Year One (Consultation Price x 24): __________

Preparation and submission 26 ________ _________ of seven (7) management/financial biweekly Reports for the internal use of the U.S. Embassy (see Section C.8 for details).

E. Total Price for Line Item #005 for Option Year One (Unit Price x 26): ___________

Line Item 006:

Preparation and submission 12 ______ _________ of one (1) management/financial Monthly Report for the internal use of the U.S. Embassy (see Section C.9 for details).

F. Total Price for Line Item #006 for Option Year One (Unit Price x 12): _________

Line Item 007

Preparation and submission of four (4) Quarterly Reports 4 ________ __________ to the Social Insurance Fund and Pension Fund (see Section C.10 for details).

G. Subtotal for Line Item #007 for Option Year One (Unit Price x 4): _________

Line Item 008

Preparation and submission 1 ________ _________ of one (1) management/financial Annual Report for the internal use

H. Subtotal for Line Item #008 for Option Year One (Unit Price x 1): ____________

Preparation and Submission 900 _______ _________ of annual employees salary Statements (est. 900) to the Russian Tax Inspectorate (Form №2-NDFL). See Section C.12 for details.

I. Subtotal for Line Item #009 for Option Year One (900 x Unit Price): _________

Line Item 010:

One (1) annual Report on Average Number of Employees to the Russian Tax Inspectorate.

See Section C.13 for details

J. Subtotal for Line Item #010 for Option Year One (Unit Price x 1): _________

Line Item 011:

Preparation and Submission 1 _________ _________ of Report in Confirmation of the main type of Activity to the Social Insurance Fund. See Section C.14 for details.

K. Subtotal for Line Item #011 for Option Year One (Unit Price x 1): _________

TOTAL PRICE FOR OPTION YEAR ONE

(sum of A+B+C+D+E+F+G+H+I+J+K): _______________

B.3.3. OPTION YEAR TWO OF CONTRACT COMMENCING THE NEXT DAY UPON EXPIRATION OF OPTION YEAR ONE AND CONTINUING FOR A PERIOD OF 12 MONTHS

Line Item 001:

to register new Russian employees of the U.S. Embassy Moscow and three constituent posts located in St. Petersburg, Vladivostok and Yekaterinburg with the Pension Fund (See Section C.4 for details).

A. Total Price for Line Item #001 for Option Year Two (Price per person x 36): ________ Line Item 002:

Month for all Employees

Calculate monthly 900 _______ ___________ contributions to three Social Security Funds (Medical Insurance Fund, Social Insurance Fund and Pension Fund) and Trauma contributions to be paid by the U.S. Government as an Employer (See Section C.5 for details).

B. Total Price for Line Item #002 for Option Year Two (Total Estimated Price per Month x 12): ______

Line Item 003:

Month for all Employees

Calculate monthly income taxes 900 _______ __________ for all Russian employees based on salary information and net amounts payable to each employee (See Section C.6 for details).

C. Total Price for Line Item # 003 for Option Year Two (Total Estimated Price per Month x 12): ______

Line Item 004 :

Consultation services for Embassy 24 _______ __________ Personnel with duration 60 minutes each

D. Subtotal for Line Item #004 for Option Year Two (Consultation Price x 24): __________

Preparation and submission 26 ________ _________ of seven (7) management/financial biweekly Reports for the internal use of the U.S. Embassy (see Section C.8 for details).

E. Total Price for Line Item #005 for Option Year Two (Unit Price x 26): ___________

Line Item 006:

Preparation and submission 12 ______ _________ of one (1) management/financial Monthly Report for the internal use of the U.S. Embassy (see Section C.9 for details).

F. Total Price for Line Item #006 for Option Year Two (Unit Price x 12): _________

Line Item 007

Preparation and submission of four (4) Quarterly Reports 4 ________ __________ to the Social Insurance Fund and Pension Fund (see Section C.10 for details).

G. Subtotal for Line Item #007 for Option Year Two (Unit Price x 4): _________

Line Item 008

Preparation and submission 1 ________ _________ of one (1) management/financial Annual Report for the internal use

H. Subtotal for Line Item #008 for Option Year Two (Unit Price x 1): ____________

Preparation and Submission 900 _______ _________ of annual employees salary Statements (est. 900) to the Russian Tax Inspectorate (Form №2-NDFL). See Section C.12 for details.

I. Subtotal for Line Item #009 for Option Year Two (900 x Unit Price): _________

Line Item 010:

Preparation and Submission of 1 _______ _________ One (1) annual Report on Average Number of Employees to the Russian Tax Inspectorate.

See Section C.13 for details

J. Subtotal for Line Item #010 for Option Year Two (Unit Price x 1): _________

Line Item 011:

Preparation and Submission 1 _________ _________ of Report in Confirmation of the main type of Activity to the Social Insurance Fund. See Section C.14 for details.

K. Subtotal for Line Item #011 for Option Year Two (Unit Price x 1): _________

TOTAL PRICE FOR OPTION YEAR TWO

(sum of A+B+C+D+E+F+G+H+I+J+K): _______________

B.3.4. OPTION YEAR THREE OF CONTRACT COMMENCING THE NEXT DAY UPON EXPIRATION OF OPTION YEAR TWO AND CONTINUING FOR A PERIOD OF 12 MONTHS Line Item 001:

to register new Russian employees of the U.S. Embassy Moscow and three constituent posts located in St. Petersburg, Vladivostok and Yekaterinburg with the Pension Fund (See Section C.4 for details).

A. Total Price for Line Item #001 for Option Year Three (Price per person x 36): ________ Line Item 002:

Month for all Employees

Calculate monthly 900 _______ ___________ contributions to three Social Security Funds (Medical Insurance Fund, Social Insurance Fund and Pension Fund) and Trauma contributions to be paid by the U.S. Government as an Employer (See Section C.5 for details).

B. Total Price for Line Item #002 for Option Year Three (Total Estimated Price per Month x 12): _________

Line Item 003:

Month for all Employees

Calculate monthly income taxes 900 _______ __________ for all Russian employees based on salary information and net amounts payable to each employee (See Section C.6 for details).

C. Total Price for Line Item # 003 for Option Year Three (Total Estimated Price per Month x 12): __________

Line Item 004 :

Consultation services for Embassy 24 _______ __________ Personnel with duration 60 minutes each

D. Subtotal for Line Item #004 for Option Year Three (Consultation Price x 24): __________

Preparation and submission 26 ________ _________ of seven (7) management/financial biweekly Reports for the internal use of the U.S. Embassy (see Section C.8 for details).

E. Total Price for Line Item #005 for Option Year Three (Unit Price x 26): ___________

Line Item 006:

Preparation and submission 12 ______ _________ of one (1) management/financial Monthly Report for the internal use of the U.S. Embassy (see Section C.9 for details).

F. Total Price for Line Item #006 for Option Year Three (Unit Price x 12): _________

Line Item 007

Preparation and submission of four (4) Quarterly Reports 4 ________ __________ to the Social Insurance Fund and Pension Fund (see Section C.10 for details).

G. Subtotal for Line Item #007 for Option Year Three (Unit Price x 4): ________

Line Item 008

Preparation and submission 1 ________ _________ of one (1) management/financial Annual Report for the internal use

H. Subtotal for Line Item #008 for Option Year Three (Unit Price x 1): _________

Preparation and Submission 900 _______ _________ of annual employees salary Statements (est. 900) to the Russian Tax Inspectorate (Form №2-NDFL). See Section C.12 for details.

I. Subtotal for Line Item #009 for Option Year Three (900 x Unit Price): _________

Line Item 010:

Preparation and Submission of 1 _______ _________ One (1) annual Report on Average Number of Employees to the Russian Tax Inspectorate.

See Section C.13 for details

J. Subtotal for Line Item #010 for Option Year Three (Unit Price x 1): _________

Line Item 011:

Preparation and Submission 1 _________ _________ of Report in Confirmation of the main type of Activity to the Social Insurance Fund. See Section C.14 for details.

K. Subtotal for Line Item #011 for Option Year Three (Unit Price x 1): _________

TOTAL PRICE FOR OPTION YEAR THREE

(sum of A+B+C+D+E+F+G+H+I+J+K): _______________

B.3.5. OPTION YEAR FOUR OF CONTRACT COMMENCING THE NEXT DAY UPON EXPIRATION OF OPTION YEAR THREE AND CONTINUING FOR A PERIOD OF 12 MONTHS Line Item 001:

to register new Russian employees of the U.S. Embassy Moscow and three constituent posts located in St. Petersburg, Vladivostok and Yekaterinburg with the Pension Fund (See Section C.4 for details).

A. Total Price for Line Item #001 for Option Year Four (Price per person x 36): ________ Line Item 002:

Month for all Employees

Calculate monthly 900 _______ ___________ contributions to three Social Security Funds (Medical Insurance Fund, Social Insurance Fund and Pension Fund) and Trauma contributions to be paid by the U.S. Government as an Employer (See Section C.5 for details).

B. Total Price for Line Item #002 for Option Year Four (Total Estimated Price per Month x 12): _________

Line Item 003:

Month for all Employees

Calculate monthly income taxes 900 _______ __________ for all Russian employees based on salary information and net amounts payable to each employee (See Section C.6 for details).

C. Total Price for Line Item # 003 for Option Year Four (Total Estimated Price per Month x 12): __________

Line Item 004 :

Consultation services for Embassy 24 _______ __________ Personnel with duration 60 minutes each

D. Subtotal for Line Item #004 for Option Year Four (Consultation Price x 24): __________

Preparation and submission 26 ________ _________ of seven (7) management/financial biweekly Reports for the internal use of the U.S. Embassy (see Section C.8 for details).

E. Total Price for Line Item #005 for Option Year Four (Unit Price x 26): ___________

Line Item 006:

Preparation and submission 12 ______ _________ of one (1) management/financial Monthly Report for the internal use of the U.S. Embassy (see Section C.9 for details).

F. Total Price for Line Item #006 for Option Year Four (Unit Price x 12): _________

Line Item 007

Preparation and submission of four (4) Quarterly Reports 4 ________ __________ to the Social Insurance Fund and Pension Fund (see Section C.10 for details).

G. Subtotal for Line Item #007 for Option Year Four (Unit Price x 4): ________

Line Item 008

Preparation and submission 1 ________ _________ of one (1) management/financial Annual Report for the internal use

H. Subtotal for Line Item #008 for Option Year Four (Unit Price x 1): _________

Preparation and Submission 900 _______ _________ of annual employees salary Statements (est. 900) to the Russian Tax Inspectorate (Form №2-NDFL). See Section C.12 for details.

I. Subtotal for Line Item #009 for Option Year Four (900 x Unit Price): _________

Line Item 010:

Preparation and Submission of 1 _______ _________ One (1) annual Report on Average Number of Employees to the Russian Tax Inspectorate.

See Section C.13 for details

J. Subtotal for Line Item #010 for Option Year Four (Unit Price x 1): _________

Line Item 011:

Preparation and Submission 1 _________ _________ of Report in Confirmation of the main type of Activity to the Social Insurance Fund. See Section C.14 for details.

K. Subtotal for Line Item #011 for Option Year Four (Unit Price x 1): _________

TOTAL PRICE FOR OPTION YEAR FOUR

(sum of A+B+C+D+E+F+G+H+I+J+K): _______________

GRAND TOTAL PRICE FOR BASE YEAR AND FOUR OPTION YEARS: _________

B.3.6 Economic Price Adjustment-Advisory and Assistance Services

B.3.6(1) DOSAR 652.216-71 PRICE ADJUSTMENT (AUG 1999)

(a) The contract price may be increased or decreased in actual costs of direct service labor which result directly from laws enacted and effective during the term of this contract by the Government of the Russian Federation. Direct service labor costs include only the cost of wages and direct benefits (such as social security, health insurance, unemployment compensation insurance) paid to or incurred for the direct benefit of personnel performing services under one of the categories listed in Section H of this contract. Price adjustments will include only changes in direct service labor costs incurred in order to comply with the requirements of the law. No adjustment will be made under this clause with respect to labor costs of personnel not performing direct service labor under the categories of Section H, nor for overhead, profit, general and administrative (G&A) costs, taxes or any other costs whatsoever.

(b) For the contracting officer to consider any request for adjustment, the contractor shall demonstrate in writing:

(1) That the change in the law occurred during the term of this contract and subsequent to the award date of the contract; and,

(2) That the change in the law could not have been reasonably anticipated prior to contract award; and,

(3) How the change in the law directly affects the contractor’s costs under this contract.

(c) The contractor shall present data that clearly supports any request for adjustment. This data shall be submitted no later than 30 calendar days after the changes in the law have been made public. This data shall include, but not be limited to, the following:

(1) The calculation of the amount of adjustment requested; and,

(2) Documentation which identifies and provides the appropriate portions of the text of the particular law from which the request is derived.

(d) In order to establish the change between the requested adjusted rate and the original rate, the contractor shall support the appropriate data and composition of the original rate and the requested adjusted rate. This shall include details regarding specific hourly rates paid to individual employees. For contracts paid in U.S. dollars, the contractor’s request for price adjustment shall present data reflecting:

(1) The exchange rate in effect on the date of the contractor’s proposal that was accepted for the basic contract; and,

(2) The current exchange rate and its effect on payment of workers in local currency.

The allowable adjustment shall be limited to the extent to which increases in direct service labor costs due to host country law changes are not offset by exchange rate gains.

(e) Only direct cost changes mandated by enacted laws shall be considered for adjustment under this contract. Changes for purposes of maintaining parity of pay between employees at the minimum mandated levels and employees already paid at levels above the newly mandated minimums shall not be considered. Therefore, if the contractor elects to increase payments to employees who are already being paid at or above the mandated amounts, such increased costs shall be borne solely by the contractor and shall not be justification for an increase in the hourly and monthly rates under this contract.

(f) Any request for adjustment shall be presented by signature of an officer or general partner of the contractor having overall responsibility for the conduct of the contractor’s affairs.

(g) No adjustment shall be made to the contract price that relates to any indirect, overhead, or fixed costs, profit or fee. Only the changes in direct service labor wages (and any benefits based directly on wages) shall be considered by the U.S. Government as basis for contract price changes.

(h) No request by the contractor for an adjustment under this clause shall be allowed if asserted after final payment has been made under this contract.

(i) This clause shall only apply to laws enacted by the Russian Federation’s Government meeting the criterion set forth above in paragraph (b). No adjustments shall be made due to currency fluctuations in exchange rates.

SECTION C

DESCRIPTION/SPECIFICATION/WORK STATEMENT

C.1 General. The Embassy of the United States of America in Moscow requires advisory and assistance services for Foreign Service Nationals (FSN), who work at the U.S. Embassy Moscow and three constituent posts in St. Petersburg, Vladivostok and Yekaterinburg and who are citizens of the Russian Federation; or who are citizens of other countries who must pay Russian income taxes and contributions to the Social Funds, as further described below. The Russian Federation's legislation prescribes that the Employer is responsible for registration of all employees with three Social Security Funds: the Medical Insurance Fund, the Social Insurance Fund and the Pension Fund. Also the law requires that the Employer is responsible for withholding of local income tax from employee's salary and transferring appropriate amounts to Russian Tax Authorities. The U.S. Government has determined that the U.S. Embassy in Moscow should comply with the Russian law and implement local requirements. For this purpose the U.S. Embassy in Moscow needs a contractor capable to perform services, described herein.

C.2 Several FSNs are not citizens of the Russian Federation. In such a situation Russian law prescribes that the employer must make contributions to the Medical Insurance and Social Insurance Funds on behalf of these employees. Employees who are not Russian citizens are responsible for paying income taxes to the Russian government. The Embassy will provide a list of such employees to the Contractor before the contract comes into effect.

C.3 DEFINITIONS (as used in this contract).

Contributions: Payment (as a levy or tax) imposed by the Russian government for special purposes.

COR: Contracting Officer's Representative.

Employee: An individual employed by the U.S. Government, under a direct-hire appointment, personal services contract, or personal services agreement.

Employer: The United States Government.

FMO: The Financial Management Office or the paying office for all U.S. Government Agencies except AID.

GFSC Charleston: The Global Financial Service Center in Charleston. SC provides U.S. missions with a comprehensive set of payroll data processing instructions and prescribes forms or formats for payroll data reporting telegraphically or by mail.

Foreign Service National Employee (FSN): a non-U.S. citizen directly hired by the U.S. Mission, including third-country nationals (TCNs) but excludes official residence staff as well as consular agents.

Foreign Service National Payroll System-Payroll systems operated by the GFSC to pay Foreign Service National employees, personal services contractors, and American citizens.

Foreign Service National Salary: Beginning 2007 the salary of all FSNs working with the U.S. Embassy and the Consulates is nominated in local currency.

Local Currency: National currency of the Russian Federation – ruble.

Miscellaneous & Incidental Expenses (M&IE): Expenses incurred by U.S. Government employees during official travel. Normally miscellaneous expenses include three meals a day: breakfast, lunch and dinner and related tips and taxes (excluded are alcoholic beverage and entertainment expenses, and any expenses incurred for personal items). Incidental expenses covered by per diem are laundry, dry-cleaning, and pressing; fans, air conditioning, heating, radio, or television in rooms; and transportation between place of lodging or business and places where meals are taken, and are given to official travelers in U.S. Dollars.

Pay day: A regular day on which wages are paid. In the U.S. Embassy Moscow and three constituent posts it is currently every other Friday.

Pay period: time period which covers two administrative workweeks for all employees except those hired on an other-than-annual basis, for which a pay period is in accordance with the terms of the appointment.

Payroll: Employer’s list of those employees entitled to pay and the amounts due to each.

Project Manager: Contractor’s employee assigned for the purpose to supervise the work on the work site with authority to act for the contractor.

Social Security Funds: Medical Insurance Fund, Social Insurance Fund and Pension Fund.

Social Security Funds contributions: federal taxes for accumulating funds for further realization of civil rights of Russian citizens for social security, medical security and state pensions. These taxes are accumulated in the state off-budget funds: the Medical Insurance Fund, the Social Insurance Fund and the Pension Fund. Tax collection is regulated by the Tax Code of the Russian Federation (ch.24, p. II).

The overall control over Tax collection is vested on the Russian Tax Inspectorate.

C.4 Registration of new FSNs with the Pension Fund. Currently, all FSNs in U.S. Embassy Moscow and three constituent posts in St. Petersburg, Vladivostok and Yekaterinburg are registered with the Pension Fund. However, when a new FSN is hired by the Embassy or the Consulate, he or she must be registered with this Fund within 14 days after commencing employment, if not already registered.

C.4.1. The Embassy shall provide the Contractor with the employee's personal data, which the Russian Government requires for registration. This information shall include: employee's first, last and patronymic name, date and place of birth, his/her labor history and ID number, if applicable. Upon completion of the registration, the Contractor shall provide the Embassy with the certificate of enrollment from the Pension Fund. The Contractor shall be compensated for these services in accordance with Line Item 001, Section B of this contract.

C.5 Calculation of monthly Social Security Funds contributions and Trauma contributions to be paid by the U.S. Government as an employer.

To complete this task the Contractor shall:

C.5.1. Create the FSN payroll database reflecting all personal information including employees’ names, their current job status, transfers, resignations, and current salaries;

C.5.2. Enter personal income data into the database on a biweekly basis (pay period);

C.5.3. Convert all employees’ M&IE incurred during official trips (within Russia and abroad) in a local currency. The currency exchange rate in effect shall be the rate set by the State Department for the previous pay period payroll calculations.

C.5.4. Group payable contributions by agencies and consulates;

C.5.5. Calculate tax base for each contribution to be paid to the Tax Inspectorate and the Social Security Funds for each pay period based on the comprehensive report;

C.5.6. Make all necessary calculations of Social Security Funds contributions as prescribed by the Russian Tax Regulation;

C.5.7. Make all necessary calculations of Trauma contributions as prescribed by Russian Tax regulations;

C.5.8. Transfer biweekly figures into monthly figures as required by Russian law;

C.5.9. Carefully check all data to avoid mistakes.

This task shall be completed by every other Friday on the pay day of the current pay period.

The Embassy shall:

C.5.10. Provide a file in text format with the Comprehensive Payroll Report issued by GFSC Charleston;

C.5.11. Provide a spreadsheet in MS Excel format with Miscellaneous & Incidental Expenses (M&IE) incurred by FSNs during business trips outside and inside the Russian Federation;

C.5.12. Provide originals of physician’s certificates;

C.5.13. Provide copies of documents with tax exemptions which are subject to tax withdrawals/additions.

The information specified in C.5.10 shall be provided no later than Tuesday preceding the pay day. The information specified in C.5.11-13 shall be provided to the Contractor when it becomes known by the Embassy. The Contractor shall be compensated for these services in accordance with the Line Item 002, Section B of this contract.

C.6 Calculation of income tax withholding

To complete this task the Contractor shall:

C.6.1. Enter personal income data into the database on a biweekly basis (pay period);

C.6.2. Match this data with employees current status;

C.6.3. Convert all employees’ M&IE incurred during official trips (within Russia and abroad) into local currency. The currency exchange rate in effect shall be the rate set by the State Department for the previous pay period payroll calculations.C.6.4. Group payable contributions by agencies and consulates;

C.6.5. Calculate the exact amount that must be withheld from each employee's salary on a biweekly basis (pay period) based on the current tax scale;

C.6.6. Calculate the exact net amount to be paid by each FSN on a biweekly basis.

C.6.7. Transfer biweekly figures into monthly figures as required by Russian law;

C.6.8. Carefully check all data to avoid mistakes.

This task shall be completed no later than Tuesday following the pay day for the previous pay period.

The Embassy shall:

C.6.9. Provide a file in text format with the Comprehensive Payroll Report issued by GFSC Charleston;

C.6.10. Provide a spreadsheet in MS Excel format with all relevant changes in employees status C.6.11. Provide a spreadsheet in MS Excel format with Miscellaneous & Incidental Expenses (M&IE) incurred by FSNs during business trips outside and inside the Russian Federation;

C.6.12. Provide originals of physician’s certificates;

C.6.13. Provide copies of documents with tax exemptions which are subject to tax withdrawals/additions.

The information specified in C.6.9 shall be provided no later than Tuesday preceding the pay-day. The information specified in C.6.10-13 shall be provided to the Contractor when it becomes known by the Embassy. The Contractor shall be compensated for these services in accordance with the Line Item 003, Section B of this contract. Information calculated under paragraph C.6 shall be generated as Exhibit A, Section J, see C.8.1 below.

C.7 Consultations. The Embassy may require additional information which may include, but is not limited to: Russian Social and Tax regulation, clarification of certain issues, changes in Russian Legislation which affect Embassy’s social fund contributions and income tax withholding; training of Financial Management Office employees; personal questions of the FSNs about tax withholding and tax exemption, etc. Such consultations shall be held on U.S. Embassy facilities and shall last no more than 60 minutes each. The following Embassy officials shall be authorized to set up the dates and time of consultations: Senior Human Resources Officer, Human Resources Officer, Senior Financial Management Officer, and Financial Management Officer. The Contractor shall be compensated for these services in accordance with the Line Item 004, Section B of this contract.

C.8 Preparation and Submission of 7 (seven) Management/financial BIWEEKLY Reports for the internal use by the U.S. Embassy

Every Monday following each pay period, the Contractor shall submit to the Financial Management Office of the Embassy four (4) reports for exclusive use by the Embassy. These reports shall be generated by the Contractor as a result of work specified in Sections C.5 and C.6 as explained above. The reports shall be submitted as hard copies as well as electronically.

The reports shall include:

C.8.1. Consolidated Income Tax Report for Current Pay Period. The form of this report is shown in Exhibit A, Section J.

C.8.2. Final Earnings Statements for employees who performed business trips outside their posts.

The form of this report is shown in Exhibit B, Section J.

C.8.3. Statutory Sick Leave Pay Calculation for the current pay period.

The form of this report is shown in Exhibit C, Section J.

C.8.4. Taxable Per Diem Calculation for the current pay period.

The form of this report is shown in Exhibit D (pages 1 and 2), Section J.

C.8.5. Employer Contributions Reconciliation Report. The form of this report is shown in Exhibit E (page 1 and 2), Section J.

C.8.6. Consolidated Tax Reconciliation Report. The form of this report is shown in Exhibit F, Section J.

C.8.7. Bank Payment Orders for taxes/social fund contributions transfers. The form of this report is shown in Exhibit H (pages 1-6), Section J.

The Contractor shall be compensated for these services in accordance with the Line Item 005, Section B of this contract.

C.9 Preparation and Submission of one (1) Management/financial MONTHLY Report for the internal use by the U.S. Embassy

Within five working days after the end of each month, the Contractor shall submit to the Financial Management Office of the Embassy one (1) report for exclusive use by the Embassy. This report shall be generated by the Contractor as a result of work specified in Sections C.5 and C.6 as explained above. The report shall be submitted as a hard copy and signed by the Project Manager. The report shall include:

C.9.1. Consolidated Payroll Report. The form of this report is shown in Exhibit G, Section J.

The Contractor shall be compensated for these services in accordance with the Line Item 006, Section B of this contract.

C.10 Preparation and submission of four (4) Quarterly Reports to Social Security Funds

The Russian legislation states that quarterly reports on contributions to the Medical Insurance Fund, the Social Insurance Fund and the Pension Fund have to be submitted by the 15th day of the month following the reporting quarter. The Contractor shall generate these reports in Russian and ensure delivery to appropriate Funds in a timely manner.

The reports shall be signed by the Project Manager no later than one week prior to the submission day. The reports shall be submitted to the Embassy Financial Management Officer for review, approval, signature and stamp. The forms of these reports are shown in Exhibits I, J, K, and L, Section J. The Contractor shall be compensated for these services in accordance with the Line Item 007, Section B of this contract.

C.10.1. Quarterly Report to the Social Insurance Fund (Форма-4 ФСС РФ). This report shall be generated in Russian and submitted to the Social Insurance Fund no later than the 15th of the month following the reporting quarter. The form of this report is shown in Exhibit I, Section J.

C.10.2 Quarterly Report to the Pension Fund on all contributions to the Social Security Funds (Форма РСВ-1 ПФР). This report shall be generated in Russian and submitted to the Pension Fund no later than the 15th of the second month following the reporting quarter. The form of this report is shown in Exhibit J, Section J.

C.10.3 Quarterly Report on Individual Employee’s Contributions to the Pension Fund (Формы АДВ-6-2, СЗВ-6-1, СЗВ-6-2). The forms shall be generated in Russian and submitted to the Pension Fund no later than the 15th of the second month following the reporting quarter. The form of this report is shown in Exhibit K (pages 1-3), Section J.

C.10.4 Quarterly Report on Individual Employee’s Taxable Base to the Pension Fund (Формы АДВ-6-4, СЗВ-6-3). The forms shall be generated in Russian and submitted to the Pension Fund no later than the 15th of the second month following the reporting quarter. The form of this report is shown in Exhibit L (pages 1-2), Section J.

C.11 Preparation and submission of the Annual Report for internal use by the U.S. Embassy

Within five working days after the end of each calendar year of the contract, the Contractor shall submit to the Financial Management Office of the Embassy One (1) Consolidated Payroll Tax Exemptions Report. The form of this report is shown in Exhibit M, Section J. The Contractor shall be compensated for these services in accordance with Line Item 008, Section B of this contract.

C.12 Preparation and Submission of the Annual employees income statements for filing in the state-stipulated electronic file format and the required printed accompanying documents to the Russian Tax Inspectorate (Register and Форма 2-НДФЛ). These documents shall be submitted to the Financial Management Officer for review, approval, signature, and stamp. After the documents have been approved, they shall be delivered by the Contractor to the Russian Tax Inspectorate (electronic version only) no later than the 31st of March following the reporting year. Additionally, the Contractor shall print hard copies of form 2-NDFL upon request by the Financial Management Office. The form of the register is shown in Exhibit N, Section J. The form of 2-NDFL is shown in Exhibit O, Section J. The Contractor shall be compensated for these services in accordance with Line Item 009, Section B of this contract.

C.13 Preparation and Submission of annual Report on Average Number of Employees to the Russian Tax Inspectorate This document (форма KHД 1110018) shall be submitted to the Financial Management Officer for review, approval, signature, and stamp. After the document has been approved, signed and stamped, it shall be delivered by the Contractor to the Tax Inspectorate Office no later than the 20th of January following the reporting year. The form of this report is shown in Exhibit P, Section J. The Contractor shall be compensated for these services in accordance with Line Item 010, Section B of this contract.

C.14 Preparation and Submission of Report in Confirmation of the main type of Activity to the Social Insurance Fund. This report shall be generated in Russian and submitted to the Social Insurance Fund no later than the 15th of April following the reporting year. The form of this report is shown in Exhibit Q, Section J.

The Contractor shall be compensated for these services in accordance with Line Item 011, Section B of this contract.

C.15 The Contractor shall keep updated all information issued by the Russian Government as related to the services required under this contract. Should the Russian regulation regarding taxes or contributions change, the Contractor shall inform the Embassy about such a change within 10 days and shall adjust withholding amounts as required by the relative new Russian law.

C.16. Eligibility

C.16.1. FSNs employed by the U.S. Government agencies affiliated with the U.S. Embassy Moscow and three consulates in Russia.

The employees eligible for the services, as required by this contract, include the following:

C.16.1.1. All current active employees of the United States Government, employed within the geographic boundaries of the Russian Federation paid under the Local Compensation Plan, and certified by the Contracting Officer. Covered employees include:

C.16.2. Location of Employment

The individuals covered by C.16.1 must be employed within the geographic boundaries of the Russian Federation by:

Center for Disease Control (CDC) Department of Commerce (DOC);

Department of Defense (DOD);

Department of Energy (DOE);

Department of Homeland Security (DHS);

Department of Justice (DOJ);

Department of State (DOS);

Drug Enforcement Administration (DEA);

Federal Aviation Administration (FAA);

Foreign Agricultural Service (FAS);

International Broadcasting Bureau (Voice of America);

National Aeronautics and Space Administration (NASA).

C.16.3. Term of Eligibility. Each current active employee is eligible for services under this contract upon the award and thereafter during the performance period of this contract. Each new employee will be eligible upon entering employment with the United States Government. An employee is considered active ("on the payroll") whenever such employee is on annual or sick leave, with or without pay.

C.16.4. If Embassy employees have tax privileges as recognized by Russian law, the Contractor shall update employee's personal information and correct amounts that should be withheld from his/her salary.

C.17. The Contractor may also be requested to prepare FSN’s annual income statements upon FSN’s individual requests.

SECTION D

PACKAGING AND MARKING

This Section is not applicable in this contract

SECTION E

INSPECTION AND ACCEPTANCE

E.1 FAR 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

This contract incorporates the following clause by reference, with the same force and effect as if they were given in full text. Upon request, the Contracting Officer will make their full text available. Also, the full text of a clause may be accessed electronically at this address:

http://www.arnet.gov/far or, http://farsite.hill.af.mil/search.htm These addresses are subject to change. If the Federal Acquisition Regulation (FAR) is not available at the locations indicated above, use the Dept. of State Acquisition Website at http://www.statebuy.gov/home.htm to see the links to the FAR. You may also use a network "search engine" (e.g., Yahoo, Excite, Alta Vista, etc.) to obtain the latest location of the most current FAR.

FEDERAL ACQUISITION REGULATION (48 CFR CH. 1)

52.246-4 Inspection of Services - Fixed Price (AUG 1996)

E.2. QUALITY ASSURANCE AND SURVEILLANCE PLAN (QASP)

This plan is designed to provide an effective surveillance method to promote effective contractor performance. The QASP provides a method for the Contracting Officer's Representative (COR) to monitor contractor performance, advise the contractor of unsatisfactory performance, and notify the Contracting Officer of continued unsatisfactory performance. The contractor, not the Government, is responsible for management and quality control to meet the terms of the contract. The role of the Government is to conduct quality assurance to ensure that contract standards are achieved.

Services.

Performs all the insurance services set forth in the performance work statement (PWS)

C.1.0 thru C.3.0

All required services are performed and no more than one (1) customer complaint is received per month

E.2.1 Surveillance. The COR will receive and document all complaints from Government personnel regarding the services provided. If appropriate, the COR will send the complaints to the Contractor for corrective action.

E.2.2 Standard. The performance standard is that the Government receives no more than one (1) customer complaint per month. The COR shall notify the Contracting Officer of the complaints so that the Contracting Officer may take appropriate action to enforce the inspection clause (FAR 52.246-4, Inspection of Services – Fixed Price (AUG 1996) or the appropriate Inspection of Services clause), if any of the services exceed the standard.

E.2.3 Procedures

(a) If any Government personnel observe unacceptable services, either incomplete work or required services not being performed, they should immediately contact the COR.

(b) The COR will complete appropriate documentation to record the complaint.

(c) If the COR determines the complaint is invalid, the COR will advise the complainant. The COR will retain the annotated copy of the written complaint for his/her files.

(d) If the COR determines the complaint is valid, the COR will inform the Contractor and give the Contractor additional time to correct the defect, if additional time is available. The COR shall determine how much time is reasonable.

(e) The COR shall, as a minimum, orally notify the Contractor of any valid complaints.

(f) If the Contractor disagrees with the complaint and challenges the validity of the complaint, the Contractor will notify the COR. The COR will review the matter to determine the validity of the complaint.

(g) The COR will consider complaints as resolved unless notified otherwise by the complaint.

(h) Repeat customer complaints are not permitted for any services. If a repeat customer complaint is received for the same deficiency during the service period, the COR will contact the Contracting Officer for appropriate action under the Inspection clause.

SECTION F

DELIVERIES OR PERFORMANCE

F.1 FAR 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

This contract incorporates the following clauses by reference, with the same force and effect as if they were given in full text. Upon request, the Contracting Officer will make their full text available. Also, the full text of a clause may be accessed electronically at this address:

http://www.arnet.gov/far or, http://farsite.hill.af.mil/search.htm These addresses are subject to change. If the Federal Acquisition Regulation (FAR) is not available at the locations indicated above, use the Dept. of State Acquisition Website at http://www.statebuy.gov/home.htm to see the links to the FAR. You may also use a network "search engine" (e.g., Yahoo, Excite, Alta Vista, etc.) to obtain the latest location of the most current FAR.

FEDERAL ACQUISITION REGULATION (48 CFR CH. 1)

52.242-15 Stop Work Order (AUG 1989) 52.242-17 Government Delay of Work (APR 1984)

F.2 Period of Performance.