3 FAM 9110 GENERAL PROVISIONS

UNCLASSIFIED (U)

3 FAM 9000
PERSONAL sERVICES contractors (PSC)

3 FAM 9100
general provisions

3 FAM 9110

General Provisions

(CT:PER-1128; 05-23-2023)
(Office of Origin: GTM/PC)

(CT:PER-834; 02-16-2017)
(Uniform State)
(Applies to American Personal Services Contractors)

a. A personal services contract may be used for certain work of a continuing nature as well as for temporary or intermittent services.

b. No individual who is a direct-hire employee of the U.S. Government may concurrently have a personal services contract with the U.S. Government unless the Department’s Office of the Procurement Executive (A/OPE) grants a special and specific exception.

3 FAM 9112 Authority

(CT:PER-834; 02-16-2017)
(Uniform State)
(Applies to American Personal Services Contractors)

a. Section 2(c) of the State Department Basic Authorities Act of 1956, as amended, (22 U.S.C. 2669 (c)), grants the authority for American personal service contracts overseas and provides that the Department may employ individuals or organizations, by contract, for services abroad. The Department’s Procurement Executive is the only official who can delegate PSC authority to posts. Individuals employed by contract to perform such services shall not, by virtue of such employment, be considered to be employees of the United States Government for purposes of any law administered by the Office of Personnel Management (except that the Secretary may determine the applicability to such individuals of subsection (f) and of any other law administered by the Secretary concerning the employment of such individuals abroad).

b. Therefore, personal services contractors employed pursuant to 22 U.S.C. 2669 (c) will not be considered Civil Service or Foreign Service employees, but may be deemed Federal employees for the purposes of other Federal statutes; such as the tort claims settlement authority of 22 U.S.C. 2669 (f).

3 FAM 9113 Other Department Bureaus/Offices/Programs with PSC Authority

(CT:PER-834; 02-16-2017)
(Uniform State)
(Applies to American Personal Services Contractors)

a. For the Bureau of Population, Refugees, and Migration, Section 5(a)(6) of the Migration and Refugee Assistance Act of 1962, as amended (22 U.S.C. 2605);

b. For the Bureau of International Narcotics and Law Enforcement Affairs, Section 636(a)(3) of the Foreign Assistance Act of 1961, as amended (22 U.S.C. 2396);

c. For the Foreign Service Institute, Section 704(a)(4of the Foreign Service Act of 1980, as amended (22 U.S.C. 4024);

d. For the Office of Foreign Missions, Section 208(d) of Title II – Authorities Relating to the Regulation of Foreign Missions, of the State Department Basic Authorities Act of 1956, as amended (22 U.S.C. 4308);

e. For the Bureau of International Organization Affairs, the separate Department of State appropriation acts;

f. For the Bureau of Overseas Buildings Operations, Section 5 of the Foreign Service Buildings Act, 1926, as amended (22 U.S.C. 296)

g. For the U.S. Mission to the United Nations, Section 7 of the United Nations Participation Act of 1945, as amended (22 U.S.C. 287e); and

h. For the Bureau of Diplomatic Security, section 206 of Public Law 99-399 (22 U.S.C. 4824), as amended by the Emergency Supplemental Appropriations Act of 1998.

i. Questions on the application of 3 FAM 9000 to the above listed offices and authorities should be referred to the specific office and coordinated through A/OPE.

3 FAM 9114 Basic Requirements for Employment

(CT:PER-834; 02-16-2017)
(Uniform State)
(Applies to American Personal Services Contractors)

a. Personal Services Contractors (PSCs) must be U.S. citizens.

b. The minimum age is 18, except for high school or equivalent secondary school graduates; then the minimum age is 16.

c. PSCs are selected on the basis of their education, experience, and suitability for the particular contract to be filled.

d. PSCs are subject to background security investigations and clearance.

3 FAM 9114.1 Application Requirement

(CT:PER-834; 02-16-2017)
(Uniform State)
(Applies to American Personal Services Contractors)

Each PSC applicant must complete an SF-171, Application for Federal Employment.

3 FAM 9114.2 Duration of Contract

(CT:PER-834; 02-16-2017)
(Uniform State)
(Applies to American Personal Services Contractors)

Personal services contracts may not exceed one year. A PSC contract may be renewed annually, but the total of the basic contract plus all renewals (options) may not exceed five years. After the five-year period of extending a PSC, bureau Executive Directors may authorize the contracting officer to enter into a new personal services contract with the same American, but only after determining that entering into a new personal services contract with the same individual is essential to the achievement of the mission.

3 FAM 9115 COMPENSATION

(CT:PER-1049; 07-16-2021)
(Uniform State)
(Applies to American Personal Services Contractors)

a. Compensation ranges for PSC levels of work are based upon comparable class levels of the Civil Service pay schedule for domestic PSCs; or comparable class levels of the Foreign Service pay schedule for PSCs working overseas. Compensation paid under a personal services contract may not exceed the maximum payable rate of class FS-01 or GS-15 (step 14 or step 10, respectively), or be below the minimum established for class EE of the Extended Foreign Service pay schedule. Total compensation paid under a PSC shall be subject to limitation at the same rate as federal employees who are subject to the Federal Employee’s Pay Comparability Act pay limitations as outlined in 5 U.S.C. 5307. All initial PSC salaries will be set at Step 1 of the grade classification unless the recommending official can demonstrate to the bureau Executive Director that the candidate has superior qualifications or there is a special need of the agency for the candidate’s services that justify a higher minimum rate of pay. For domestically hired PSCs, bureaus will follow the pay setting guidelines in the Office of Civil Service Talent Management’s (GTM/CSTM) Policy Memorandum 10-10, Standard Operating Procedures on Superior Qualifications and Special Needs Pay Setting. For PSCs hired domestically for overseas assignments, bureaus will follow GTM/OTA’s guidance on superior qualifications and special needs pay setting.

b. The following should be taken into account in establishing and setting pay for the life of a personal services contract:

(1) Recruitment factors influencing availability of suitable candidates for PSC services;

(2) The qualifications of the individual who will perform the PSC services;

(3) The salary history of the individual or Highest Previous Rate earned for civilian service in any branch of the Federal Government;

(4) The financial resources available for individual personal services contracts;

(5) The individual policies of posts and their regional bureaus;

(6) Compensation practices established by U.S. private sector organizations for employing U.S. citizens in the particular host country; and

(7) Comparability with FTE salaries/grades for FTE performing similar tasks.

c. Premium Pay and Pay Limitations – the PSC’s salary, premium pay, and any allowance, differential, bonus, award, or other similar cash payments shall be subject to limitation at the same rate as other federal employees who are subject to the Federal Employee’s Pay Comparability Act pay limitations as outlined in 5 U.S.C. 5307. Premium pay will be determined as specified in the contract.

(1) If authorized in Schedule B, the PSC, with prior supervisor approval, will be entitled to premium compensation (overtime pay, compensatory time off, Sunday Pay, Holiday Pay, and Night Differential), subject to the bi-weekly premium pay cap and annual aggregate pay limit at the same rate as other federal employees who are subject to the Federal Employee’s Pay Comparability Act limitations as outlined in 5 U.S.C. 5307 and the limitation on premium pay as outlined in 5 U.S.C. 5547.

(2) Bureaus must include the PSC’s status under the Fair Labor Standards Act (FLSA, exempt or non-exempt) in the comments section of the JF-62. If FLSA non-exempt, the PSC will be compensated for overtime as provided in the contract, consistent with FLSA requirements. Any overtime work must be authorized and reported according to employing office premium pay policy and guidance.

d. Bureaus and offices may provide optional base-rate adjustments depending on the nature of the contract and work to be performed. The optional adjustments, if any, are negotiated by the Executive Director or other designated senior level responsible officer and depend upon many factors including those listed in paragraph b. above. These adjustments may be categorized as a recruitment/retention incentive, bonus or allowance but may not exceed 25 percent of the annual rate of basic pay of the employee. This 25 percent cap on optional base-rate adjustments does not include post specific allowances such as danger pay and post hardship differential. Each incentive, bonus, and allowance made to augment agency recruitment and retention efforts must be approved by the Director General before it can be offered to a PSC.

e. Personal services contracts with U.S. citizens payable in local currency may be authorized under this subsection in exceptional cases, but generally only if: (1) the contractor is a permanent resident eligible to work in the host country; (2) the contractor is not the spouse or dependent of a U.S. citizen Foreign Service or Civil Service employee of the United States Government; and (3) the contractor will be paid in accordance with the Locally Employed (LE) staff compensation plan subject to any specific approved exceptions. Justification for an exception must be submitted and approved in advance by the regional bureau.

f. Retired U.S. Government employees may be awarded personal services contracts without any reduction in or offset against their Government annuity since the time worked as a PSC is not recognized as creditable service.

3 FAM 9116 BENEFITS

(CT:PER-1049; 07-16-2021 )
(Uniform State)
(Applies to American Personal Services Contractors)

a. This section lists the benefits that all American PSCs working abroad, those hired at post and those hired from the United States or a third country and sent to post, are eligible/ineligible to receive. American PSCs hired from the United States or a third country and sent to post shall be provided certain additional benefits/allowances that must be written into the contract (see section 3 FAM 9117). American PSCs hired at post are ineligible to receive those additional benefits/allowances.

b. Where the contractor is hired from the host country and also has residency status in that country, that individual may accrue additional benefits under local labor laws. Posts are responsible for identifying such benefits in those situations.

c. All benefits and/or allowances must be written into the contract for the PSC to receive them.

d. While personal services contractors are ineligible to participate in the federal life insurance and health benefits programs, PSCs may receive a contribution, with limitations, toward the actual costs of their health insurance and life insurance premiums.

3 FAM 9116.1 Eligibility

(CT:PER-1128; 05-23-2023)
(Uniform State)
(Applies to American Personal Services Contractors)

a. PSCs are eligible for:

(1) Paid Leave – as authorized in 3 FAM 3410 Annual Leave, 3 FAM 3420 Sick Leave, and 3 FAM 3535 Paid Parental Leave (NOTE: Any reference to Title II of the Family Medical Leave Act (FMLA) for direct hires in 3 FAM 3535 does not apply to PSCs. PSCs may be eligible for this leave under Title I of FMLA). Leave entitlements must be specifically provided for under the terms of the contract.

(a) Annual Leave – All PSCs will follow OPM standards for federal employees stationed in the United States with regard to an annual leave ceiling; a maximum of 30 days or 240 hours will be allowed to carry over into the new leave year. (3 FAM 3410):

Employee Type	Less than 3 years of service *	3 years but less than 15 years of service *	15 or more years of service *
Full-time employees	½ day (4 hours) for each pay period	¾ day (6 hours) for each pay period, except 1¼ day (10 hours) in last pay period	1 day (8 hours) for each pay period
Part-time employees	1 hour for each 20 hours in a pay status	1 hour for each 13 hours in a pay status	1 hour for each 10 hours in a pay status

Bureaus and offices may capture any prior federal service in determining the Employee Type by selecting a Service Computation Date (SCD) to reflect prior federal service of the contractor. For example, if an employee hired on a personal services contract served in the military for 20 years, the hiring bureau will establish the SCD at 20 years prior to the effective date of the PSC so the employee will accrue leave at the rate of 8 hours per pay period in accordance with the above chart.

(b) Sick Leave – Sick leave accrual shall be in accordance with 3 FAM 3420. PSCs working on a full-time basis shall accrue 4 hours of sick leave per pay period, regardless of length of service. PSCs working on a part-time basis will earn leave proportionate to hours worked. Intermittent contractors do not accrue sick leave. No payment is made upon termination or expiration of the contract for unused cumulative sick leave. Unused sick leave accrued under the contract may be carried from one leave year to the next, or to a follow-on PSC contract. Accrued sick leave will not be carried over in conversion to direct-hire status. A copy of the approved "Request for Leave or Approved Absence" Form DS-7100 should accompany the PSC's time and attendance record for the pay period during which sick leave is taken.

(c) Paid Parental Leave (PPL) – PSCs who, with a federal agency, have at least 12 months of employment and worked at least 1,250 hours in those 12 months may be granted up to 12 administrative workweeks of paid parental leave in connection with the birth of a child of the PSC or a new placement of a child with the PSC for adoption or foster care. This leave is taken under and in accordance with Title 1 of the Family Medical Leave Act. Paid parental leave may be taken intermittently or on a reduced leave schedule, subject to the mutual agreement of the PSC and their supervisor. The entitlement to paid parental leave is triggered by the birth or placement. The paid parental leave is available only if the PSC has a continuing parental role with respect to the child whose birth or placement triggered the leave entitlement. The 12 weeks of paid parental leave may be used only during the 12-month period beginning on the date of the birth or placement involved. Paid parental leave will not be granted in the last 90 days of the fifth/final year of the contract, however, unpaid FMLA leave is available during this time.

Work Obligation – a PSC may not use paid parental leave in connection with a birth or placement unless the PSC agrees in writing, before the commencement of such leave, to work for the employing Bureau for not less than 12 administrative workweeks, beginning on the PSC’s first scheduled workday after such leave concludes. If an otherwise eligible PSC is physically or mentally incapable of entering into such agreement prior to the period of leave, such leave may be temporarily authorized or retroactively invoked upon return to duty, consistent with the provisions, in relevant part, in 3 FAM 3535.6.

(i) If a PSC fails to return for the required 12 weeks of work with the Bureau after paid parental leave concludes, the PSC will be required to repay the total amount of health insurance premium costs the Department paid toward the PSC’s individual or family policy per 3 FAM 9116.1c.(1) for coverage during the period(s) when paid parental leave was used. Reimbursement will not be required if, in the Bureau’s judgement, the PSC is unable to return to work because of:

(A) The continuation, recurrence, or onset of a serious health condition (including mental health) of the employee or the child whose birth or placement was the basis for the paid parental leave, but, in the case of the employee’s serious health condition, only if the condition is related to the applicable birth or placement; or

(B) The Department’s termination of or failure to renew the contract during the period of paid parental leave or period of the work obligation; or

(C) Circumstances beyond the PSC’s control: These circumstances must be ones that truly preclude an employee from returning to work with the Department.

· Examples of situations beyond a PSC’s control include, but are not limited to: Situations where a parent chooses to stay home because a child has a serious health condition, or a PSC moves because the PSC’s spouse is unexpectedly transferred to a job location more than 75 miles from the PSC’s worksite.

· Matters of PSC preference or convenience will not suffice. For example, a situation where a PSC chooses not to return to work to stay home with a well, newborn child would not constitute a circumstance beyond the PSC's control for purposes of this exception.

(ii) Reimbursement Obligation: A PSC who learns that he or she will not complete the 12-week work obligation following a period of paid parental leave must notify his or her supervisor and contracting officer as soon as possible after learning of the situation. The Bureau Representative and/or Contracting Officer is responsible for coordinating with the PSC and bureau executive office to determine whether reimbursement is required consistent with paragraph (c)(i).

(iii) Treatment of unused leave: If a PSC has any unused balance of paid parental leave remaining at the end of the 12-month period following the birth or placement involved, the entitlement to the unused leave lapses at that time. No payment may be made for unused paid parental leave or paid parental leave that has expired. Paid parental leave may not be considered annual leave for purposes of making a lump-sum payment for annual leave or for any other purpose.

(d) Overtime or Compensatory Time Off – PSCs are eligible to receive overtime pay or compensatory time off in lieu of overtime subject to limitations at the same rates as federal employees who are subject to premium pay limitations as outlined in 5 U.S.C. 5547 and so long as the premium pay is defined, including the overtime funding limit, and written into the contract. In addition, PSCs are eligible to receive compensatory time off for travel as long as this is written into the contract. The determination of overtime, compensatory time, or compensatory time off for travel will be consistent with overtime/compensatory time policies applied to FTEs, however PSCs are not covered by Title 5 concerning premium compensation. Any accrued compensatory time must be used within 26 pay periods/52 weeks from the date of accrual. There will be no conversion to premium pay of any unused compensatory time. Compensatory time not used within 52 weeks from the date of accrual will be lost.

(e) Leave Without Pay (LWOP) – PSCs are eligible to request leave without pay. Careful consideration should be given to any request in excess of 80 hours of unpaid leave. Posts must examine each request to assure the needs of the post or employing office are not jeopardized by granting an excessive amount of LWOP in relation to the anticipated length of the contract. Any request for LWOP in excess of 30 days must be approved by the bureau executive director. LWOP will affect leave accruals in the same manner as outlined in 3 FAH-1 H-3412.3. (3 FAM 3510 Unpaid Leave)

(2) Medical Program – The PSC shall be eligible for the Department of State Medical Program, which includes Travel Health and Immunization consultation (including immunizations), health unit access, and medical evacuation services, provided the contractor has a valid medical clearance for the post of assignment and has submitted proof of agency participation ICASS cost center codes (4 FAH-1 H-526 (6000)). Accompanying family members on the PSC’s travel orders are also eligible for Medical Program benefits if they have a valid medical clearance for the PSC’s post of assignment.

(a) Medical Clearances – For all assignments outside of the United States the PSC and any accompanying family members on the PSC’s travel orders shall be required to undergo a medical examination and submit the required medical clearance form DS-6561, Non-Foreign Service Personnel and Their Family Members. The PSC shall submit the forms and the results of any additional tests or examinations requested by the Bureau of Medical Services (MED) to the Office of Medical Clearances for a determination of medical clearance for the post of assignment. If PSCs receive worldwide availability clearance (Class 1 Medical Clearance), they can travel to any of the Department’s posts overseas. If they receive Class 2 Medical Clearance, the PSC and bureau human resources office will receive a list of MED-approved posts to which Class 2-cleared PSCs and eligible family members can travel.

Failure to obtain a medical clearance will constitute cause for contract termination. At the end of contract performance, the PSC is authorized a separation medical examination. The separating PSC must schedule the examination prior to separating and must complete the examination within 90 days after contract completion.

(b) As a contribution to the cost of the medical examinations required under this provision, the employing organization shall reimburse the PSC for a physical examination, plus reimbursement of charges for immunizations not to exceed $500 total. The PSC must obtain the written approval of the Contracting Officer prior to receiving any State obligations higher than these limits.

(c) Medical Evacuation (Medevac) Services – Medevac benefits are provided by the Department (MED) in accordance with 16 FAM 300 Medical Travel. In order to be covered by the Medevac program, PSCs must maintain international health insurance coverage that includes overseas hospitalization insurance for self and eligible family members, and must provide proof of such insurance to the Contracting Officer prior to overseas deployment.

(d) New Child Emergency Visitation Travel (New Child EVT) – a non-birth parent may be authorized to depart post to care for his or her spouse or domestic partner, as defined in 3 FAM 1610, who is giving birth in another country, in accordance with 3 FAM 3746.6. New Child EVT acknowledges the special hardships that PSC families would endure when a birth parent and non-birth parent are separated during childbirth. Travel may be authorized under this section in connection with childbirth regardless of whether the birth parent is on OB medevac travel orders. New Child EVT travelers are eligible for one round-trip ticket per birth. There are no lifetime or yearly caps on the number of New Child EVTs a traveler may take. New Child EVT may occur in two variations:

(i) New Child EVT in Connection with OB Medevac: The birth parent departed post on OB medevac and the traveler is visiting the birth parent at the medevac location; or

(ii) New Child EVT for Non-Medevac Births: The birth parent and non-birth parent are in different locations and the birth parent is not on OB medevac travel orders. The New Child EVT traveler is visiting the birth parent at the birth location.

(3) Social Security Coverage – required.

(4) Workmen’s Compensation Eligibility (FECA) - subject to adjudication by Department of Labor of particular claims.

(5) Death Benefits – survivors of any PSC employees who die as a result of injuries sustained in the performance of duty outside the United States may be eligible for payment of death benefits as provided in 3 FAM 3650. Although not required by law, reference to the death benefits provided under 3 FAM 3650 should be specified under the terms of the contract.

(6) Per Diem – In accordance with Federal Travel Regulations, per diem will be paid to the PSC for authorized TDY.

(7) Home Leave for Qualifying Posts –

(a) Home leave is leave earned for service abroad for use only in the United States, its commonwealths and territories. In order to be eligible, the PSC must have completed a 24-month assignment at a qualifying post or a 12-month assignment at a Priority Staffing Post (PSP), and will return overseas for at least 12 months either at the same post or another overseas post. There is no requirement to take home leave.

(b) A PSC who is a U.S. citizen or U.S. resident alien and has served at least 2 years overseas at the same Embassy, under the same contract, as defined in paragraph 4) below, and has not taken more than 30 work days leave (vacation, sick or leave without pay in the United States) may be granted home leave in accordance with the following:

(i) if the contractor returns to the same overseas post upon completion of home leave for an additional 2 years under the same contract, or for such shorter period of not less than one year, as approved in writing by the Chief of Mission prior to the PSC’s departure on home leave, the contractor will receive home leave, to be taken at one time, for a period of not more than 30 work days;

(ii) if the contractor is returning to a different Embassy under a personal services contract immediately following completion of the PSC's home leave, for an additional 2 years under contract, or for such shorter period of not less than one year, as approved by the Chiefs of Mission of the "losing" and "gaining" Embassies, the contractor will receive home leave, to be taken at one time, for a period of not more than 20 work days. When the PSC is returning to a different Embassy, the former Embassy will pay for the home leave regardless of what country the PSC will be working in following the home leave;

(iii) if home leave eligibility is based on b) ii. above, the PSC must submit written verification to the losing Embassy at the time home leave is requested that the employee has accepted a personal services contract at another Embassy following completion of the home leave. Travel time by the most direct route is authorized in addition to the number of work days authorized for home leave; home leave must be taken in the United States, the Commonwealth of Puerto Rico or other territories of the United States, and any days spent elsewhere will be charged to annual leave. If the PSC does not have accrued annual leave, the PSC will be placed on leave without pay;

(iv) if the PSC does not complete the additional service required under b) i. or ii., that the Contracting Officer finds are other than for reasons beyond the PSC's control, the cost of home leave, travel and transportation, and any other related costs must be repaid by the PSC to the Government.

(c) Notwithstanding the requirement in paragraph b) ii. above that the PSC must have served 2 years overseas under personal services contract with the same U.S. mission to be eligible for home leave, the PSC may be granted advance home leave subject to the conditions specified in the contract.

(d) The period of service overseas required under b) or c) above, will include the actual days in orientation in the United States (less language training). The actual days overseas begin on the date of arrival in the country of assignment inclusive of authorized delays en-route. Allowable annual and sick leave taken while overseas, but not leave without pay, shall be included in the required period of service overseas. An amount equal to the number of days of annual and sick leave taken in the United States, the Commonwealth of Puerto Rico, or other territories of the United States will be added to the required period of service overseas.

(e) Salary during the travel to and from the United States for home leave will be limited to the time required for travel by the most expeditious air route. Except for reasons beyond the PSC's control as determined by the Contracting Officer, the PSC must return to duty after home leave and complete the additional required service or be responsible for reimbursing the Department of State for payments made during home leave. Unused home leave is not reimbursable under this contract, nor can it be taken incrementally in separate time periods.

(f) Home leave must be taken at one time, and to the extent deemed necessary by the Contracting Officer, a PSC in the United States on home leave may be authorized to spend no more than 5 days in work status for consultation at Department of State/Washington, DC before returning to post. Consultation at locations other than Department of State/Washington, DC, as well as any time in excess of 5 days spent for consultation, must be approved by the Chief of Mission or the Contracting Officer.

(8) Home Leave Travel –

(a) To the extent that home leave has been authorized, the cost of travel for home leave is reimbursable for travel costs and travel allowances of travelers from the post of duty in the country of assignment to place of residence in the United States (or other location provided that the cost of such travel does not exceed the cost of travel to the PSC’s residence in the United States) and return to the post of duty in the country of assignment.

(b) Reimbursement for travel will be conducted in accordance with 14 FAM 500, as amended, and will be limited to the cost of travel by the most direct and expeditious route.

(c) Allowances for travelers shall be in accordance with the rates authorized in14 FAM 531, as amended, for not more than the travel time required by scheduled commercial air carrier using the most expeditious route. One stopover en-route for a period of not to exceed 24 hours is allowable when the traveler uses economy class accommodations for a trip of 14 hours or more of scheduled duration. Such stopover shall not be authorized when travel is by indirect route or is delayed for the convenience of the traveler. Per diem during such stopover shall be paid in accordance with the Federal Travel Regulations.

(9) Rest and Recuperation (R&R) Travel – If approved in writing by the Chief of Mission or Supervisor, the PSC and his/her dependents shall be allowed rest and recuperation travel on the same basis as authorized U.S.-citizen direct-hire Embassy employees and their dependents.

b. PSCs are ineligible for:

(1) Foreign Service or Civil Service Disability and Retirement Systems, Federal Employee’s Retirement System (FERS).

(2) Federal Group Life Insurance (FEGLI) - Federal group life insurance is a law administered by the Office of Personnel Management. 22 U.S.C. 2669(c) specifically provides that personal services contractors employed under that authority are not employees of the USG for purposes of any law administered by OPM.

(3) Federal Employee Health Benefits Program (FEHBP) - Federal employee health coverage is a law administered by the Office of Personnel Management. 22 U.S.C. 2669(c) specifically provides that personal services contractors employed under that authority are not employees of the USG for purposes of any law administered by OPM.

(4) Incentive Awards - Bureaus and offices can recognize and reward PSC employees under 3 FAM 9200 provisions. PSCs are not eligible to participate in any special awards programs established pursuant to chapters 45 and 54 of Title 5, U.S. Code, since these programs are administered by OPM. See 5 CFR Part 451 and Part 531, Subpart E.

(5) Labor Union Representation - Section 1002(8) of the Foreign Service Act of 1980, 22 U.S.C. 4102(8), defines “employee” for purposes of Foreign Service labor-management relations to include only members of the Foreign Service. A contractor is, therefore, not covered in the Foreign Service bargaining unit and may not be represented by a labor union or employee organization.

(6) Foreign Service Grievance System.

(7) Premium Pay regulations administered by OPM.

c. While all PSCs are ineligible to participate in the federal life insurance and health benefits programs, the following fringe benefits are provided as a matter of policy:

(1) The PSC shall be provided a contribution of 72 percent against the contractor’s health insurance premium costs toward either an individual or family policy, provided that such costs may not exceed the maximum U.S. Government contribution for direct-hire personnel as announced annually by the Office of Personnel Management. The Contracting Officer will confirm the individual’s contribution is compliant with the above requirements prior to submitting for reimbursement.

(2) The contractor shall be provided a contribution of 50 percent against the actual costs of an individual annual life insurance policy not to exceed $500.00 per year. The Contracting Officer will confirm the individual’s contribution is compliant with the above requirements prior to submitting for reimbursement.

(3) A contractor who is a retired Civil Service, Foreign Service, or Military Service member who is covered by a Government health or life insurance policy; or a contractor who is listed as a spouse or dependent of a current or retired Civil Service, Foreign Service, or Military Service member and who is covered by a federal employee’s Government health or life insurance policy; or a contractor who is covered by any group health or life insurance policy is ineligible for these contributions unless the employee can prove to the satisfaction of the Contracting Officer that his/her health and life insurance does not provide or specifically excludes coverage overseas. If coverage overseas is excluded, and the contractor will perform contractual duties overseas, s/he is eligible for the health and life insurance contributions in (3)(a) and (b) above.

(4) Proof of health and life insurance coverage, including a receipt showing the individual’s payment for coverage, shall be submitted to the Contracting Officer before any contribution is paid.

(5) PSCs must submit health and life insurance reimbursement claims within the contract year of the claim.

(6) 401(k) – Bureaus may offer PSCs a non-matching, privately administered 401(k) plan offered by the Department. Participating bureaus will pay a proportional share of the administrative costs of the 401(k) plan.

(7) PSC Awards Program – Bureaus and offices can recognize and reward PSC employees as outlined in 3 FAM 9120.

3 FAM 9117 BENEFITS FOR AMERICAN PSCS HIRED FROM THE UNITED STATES OR THIRD COUNTRIES AND SERVING AT POST

(CT:PER-1049; 07-16-2021)
(Uniform State)
(Applies to American Personal Services Contractors)

In addition to eligibility for benefits listed in Benefits section, American personal services contractors hired from the United States or third countries and serving at post shall be provided additional benefits/allowances comparable to those provided to members of the Foreign Service. These additional benefits/allowances are:

(1) For PSCs hired domestically and assigned to Washington, DC that are on TDY to post, the following may apply (as determined by post of assignment and/or length of TDY):

(a) Mandatory Department training, when necessary for the assignment, is provided by the Department. Prior to visiting a high threat/high risk post, the PSC is required to contact the employing office or bureau to register for appropriate training/briefings. At that time, the PSC will be advised of the circumstances, if any, under which a post visit debriefing will be required. A list of these posts is maintained in the PSC employing office or bureau.

(b) Housing.

(d) Use of domestic medical services.

(e) Use of post’s medical services and facilities.

(f) Medical Evacuation (Medevac) and Hospitalization – The Bureau of Medical Services (MED) will provide Medevac and overseas hospitalization case management services. Medevac benefits are provided by the Department in accordance with 16 FAM 300 Medical Travel.

(g) Death Benefits – Survivors of any PSC employees who die as a result of injuries sustained in the performance of duty outside the United States may be eligible for payment of death benefits as provided under 3 FAM 3650.

(h) Danger pay.

(i) Hardship pay.

(j) Unaccompanied Air Baggage (UAB) – UAB is considered to be personal belongings needed immediately by the PSC upon arrival at his/her permanent duty station. UAB is not authorized for TDY travel unless the employing organization specifically authorizes it in the travel orders. When authorized, UAB weight allowance will not exceed 250 pounds. (14 FAM 613.3-1)

(2) For PSCs assigned to an overseas post, the following may apply (as determined by post of assignment):

(a) Mandatory Department or post training, when necessary for the assignment, is provided by the Department or post. Prior to visiting a high threat/high risk post, the PSC is required to contact the employing office or bureau to register for appropriate training/briefings. At that time, the PSC will be advised of the circumstances, if any, under which a post visit debriefing will be required. A list of these posts is maintained in the PSC employing office or bureau.

(b) Housing.

(d) Use of domestic medical services.

(e) Use of post’s medical services and facilities.

(g) Educational Allowance and/or education travel allowance (only if the contract terms include family members accompanying the PSC to post).

(h) Separate Maintenance Allowance (only if the contract terms include family members accompanying the PSC to post).

(i) Death Benefits – survivors of any PSC employees who die as a result of injuries sustained in the performance of duty outside the United States may be eligible for payment of death benefits as provided under 3 FAM 3650.

(j) Danger pay.

(k) Hardship pay.

(l) Home Leave and Home Leave Travel – where applicable.

(m) Unaccompanied Air Baggage (UAB) – UAB is considered to be personal belongings needed immediately by the PSC upon arrival at his/her permanent duty station. When authorized, UAB weight allowance will not exceed 250 pounds. (14 FAM 613.3-1)

(n) Consumables – The PSC shall be allowed up to a limit of 1,250 pounds for a one time shipment of food and other consumables for each year served under the same contract, provided post of assignment is one designated for this benefit in accordance with 14 FAM 613.6. For contract extensions of up to 6 months beyond this period, an additional 625 pounds of consumables may be shipped at U.S. Government expense.

(o) Shipment of a Privately Owned Vehicle (POV) – If applicable, the employing organization shall authorize the cost associated with the shipment of one POV, owned by the employee or an eligible family member, when such transportation has been determined to be necessary or expedient, unless prohibited by regulation or administrative action. The PSC is authorized reimbursement not to exceed $300.00 per month for storage of one POV.

3 FAM 9118 DISCIPLINARY ACTION

(CT:PER-834; 02-16-2017)
(Uniform State)
(Applies to American Personal Services Contractors)

Personal Services Contractors shall be subject to admonishment and the full range of disciplinary actions described in 3 FAM 4300 based on any of the grounds listed in 3 FAM 4314. The procedures and requirements of 3 FAM 4300 shall not be applicable, but the PSC shall be given written notice by the Contracting Officer of the grounds for any proposed disciplinary action other than admonishment and shall have an opportunity to reply before the disciplinary action is taken. Suspension shall not exceed 30 days.

3 FAM 9119 SECURITY INFRACTIONS AND VIOLATIONS

(CT:PER-834; 02-16-2017)
(Uniform State)
(Applies to American Personal Services Contractors)

a. The Department of State has an enhanced security incident program designed to improve employee awareness, to remind employees of their personal responsibility to safeguard classified information, and to include disciplinary action against employees found to be responsible for security incidents. The enhanced security incidents program is included in the regulations at 12 FAM 550. This program applies to all PSCs.

b. A history of security infractions or violations can preclude an individual from receiving a special clearance and from being considered for a specific position regardless of other qualifications.

c. A record of repeat offenses may result in the temporary suspension or revocation of the PSC’s security clearance.

d. Effect on award nominations:

(1) Proper safeguarding of classified information and material is critical for all Department of State employees. The Bureau of Diplomatic Security believes those Security issues in relation to an employee’s eligibility for an award should be restricted.

(2) Any nominees who have received a security violation during the current performance rating period will not be eligible to receive an award.

UNCLASSIFIED (U)