[Federal Register Volume 74, Number 122 (Friday, June 26, 2009)]
[Proposed Rules]
[Pages 30494-30499]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-15012]


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AGENCY FOR INTERNATIONAL DEVELOPMENT

48 CFR Parts 704, 713, 714, 715, 744, and 752

RIN 0412-AA63


Partner Vetting in USAID Acquisitions

AGENCY: United States Agency for International Development.

ACTION: Proposed rule.

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SUMMARY: The U.S. Agency for International Development (USAID) is 
considering implementation of a Partner Vetting System for USAID 
assistance and acquisition awards. The purpose of the Partner Vetting 
System is to help ensure that USAID funds and other resources do not 
inadvertently benefit individuals or entities that are terrorists, 
supporters of terrorists or affiliated with terrorists, while also 
minimizing the impact on USAID programs and its implementing partners. 
In order to apply the Partner Vetting System to USAID acquisitions, 
USAID is proposing to amend 48 CFR Chapter 7. The agency will not apply 
the Partner Vetting System to USAID acquisitions until after review of 
the public comments submitted under this proposed rule and promulgation 
of a final rule by USAID.

DATES: Submit comments on or before August 25, 2009.

ADDRESSES: You may submit comments, identified by RIN number 0412-AA63, 
by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     E-mail: AIDARPartnerVetting@usaid.gov. Include RIN number 
0412-AA63 in the subject line of the message.
     Fax: 202-216-3135.
     Mail: U.S. Agency for International Development, Office of 
Acquisition & Assistance, Policy Division, 1300 Pennsylvania Avenue, 
NW., Room 7.9-8, Washington, DC 20523-0001.
    Instructions: All submissions received must include the agency name 
and docket number or Regulatory Information Number (RIN) for this 
rulemaking. All comments received will be included in the public docket 
without change and will be made available online at http://www.regulations.gov, including any personal information provided. For 
detailed instructions on submitting comments and additional information 
on the rulemaking process, see the ``Public Participation'' heading of 
the SUPPLEMENTARY INFORMATION section of this document.

FOR FURTHER INFORMATION CONTACT: Jennifer Norling, Telephone: 202-712-
1807, E-mail: AIDARPartnerVetting@usaid.gov.

SUPPLEMENTARY INFORMATION:
    Public Participation: USAID welcomes all comments on this proposed 
rule, but would most particularly appreciate comments addressing the 
proposed process for separating source selection from vetting. 
Additionally, we would appreciate comments on the proposed timing for 
vetting.
    Because security screening precautions have slowed the delivery and 
dependability of surface mail and hand delivery to USAID/Washington, 
USAID recommends sending all comments to the Federal eRulemaking 
Portal. The e-mail address and fax number listed above are provided in 
the event that submission to the Federal eRulemaking Portal is not 
convenient (all comments must be in writing to be reviewed). You may 
submit comments by electronic mail, avoiding the use of any special 
characters and any form of encryption.

A. Background

    In accordance with the Privacy Act of 1974, 5 U.S.C. 552a, USAID 
established a new system of records (see 72 FR 39042), entitled the 
``Partner Vetting System'' (PVS) to support the vetting of key 
individuals of non-governmental organizations (NGOs) who apply for 
USAID contracts, grants, cooperative agreements, or other funding and 
of NGOs who apply for registrations with USAID as Private and Voluntary 
Organizations. In January 2009, USAID published a final rule (74 FR 9) 
to add PVS to its Privacy Act regulation, 22 CFR 215, and to exempt 
portions of this system of records from one or more provisions of the 
Privacy Act. The supplementary information to this final rule provided 
a comprehensive discussion of the legal basis for partner vetting.
    The effective date for the PVS Privacy Act final rule has been 
extended three times, most recently on May 4, 2009 (see 74 FR 20871) 
and at this time, USAID

[[Page 30495]]

has not yet made a final decision whether to implement PVS. If and when 
USAID decides to implement PVS, it will be implemented incrementally, 
with an initial pilot program in several USAID locations worldwide.
    USAID intends to apply PVS to both assistance and acquisitions. In 
order to apply PVS to USAID acquisitions, USAID must amend 48 CFR 
Chapter 7, which is USAID's procurement regulation. As required by 41 
U.S.C. Chapter 7, Section 418b, agencies must publish a notice in the 
Federal Register when a proposed procurement regulation has a 
significant effect beyond the internal operating procedures of the 
agency and provide for a public comment period for receiving and 
considering the views of all interested parties.
    USAID seeks comments through this proposed rule to help ensure 
successful implementation of PVS to USAID acquisitions that minimizes 
the impact on our programs and contractors while still protecting 
against the possibility that USAID funds could benefit terrorist 
groups. USAID will only finalize this rule if USAID approves PVS and 
after reviewing public comments received in response to this proposed 
rule.
    Need for partner vetting. Consistent with applicable law and agency 
policy, USAID already has taken a number of steps to help ensure that 
agency funds and other resources do not inadvertently benefit 
individuals or entities that are terrorists, supporters of terrorists 
or affiliated with terrorists. USAID recognizes, however, that more can 
be done to ensure adequate due diligence in certain situations. 
Accordingly, to complement its requirements for terrorist financing 
clauses, terrorist financing certifications, and review of public lists 
of designated groups and individuals, USAID established PVS.
    Among other things, PVS will facilitate the management and 
collection of information from individuals, officers, employees, or 
other officials of organizations that seek to receive USAID funding. 
The information will be used to conduct national security screening of 
such individuals and organizations to ensure that USAID funds do not 
inadvertently or otherwise provide support to entities or individuals 
associated with terrorism. To properly conduct this screening, it is 
necessary to collect information on ``key individuals''--the principal 
officers and other key employees and personnel of USAID contractors.
    To minimize the risk that USAID funds will be diverted to 
terrorists or for terrorist activities, USAID must take into account 
the range of activities it carries out and the range of circumstances 
under which those activities are implemented. Safeguards and scrutiny 
should be correlated with risk. Accordingly, USAID will perform a risk 
based assessment to determine the likelihood that the funds, goods, 
services, or other benefits to be provided could intentionally or 
inadvertently benefit terrorists or their supporters, including people 
or organizations who are not specifically designated by the U.S. 
Government but who may nevertheless be linked to terrorist activities. 
Key factors that USAID will consider in this assessment will include, 
but are not limited to, the nature of what is being provided (e.g., 
cash, goods, services), the type of entity that will be implementing 
the activity (e.g., U.S. Non-Governmental Organization (NGO), U.S. 
contractor, foreign NGO, foreign contractor, international 
organization), the geographic location of the activity, the safeguards 
available and how easily funds could be diverted or misused. Other 
considerations, while not necessarily factors in the risk assessment, 
include the urgency of the activity and the foreign policy importance 
of the activity.
    Vetting and source selection. If PVS is approved and if this rule 
is finalized, USAID intends to apply PVS to acquisitions in a manner 
that protects the integrity of the source selection process and also 
ensures that USAID's Office of Security (SEC) is able to obtain 
information necessary to vet key individuals and protect that 
information from unnecessary disclosure. To accomplish this, no 
individual involved in the source selection process, including the 
contracting officer, will have access to the information offerors 
submit for partner vetting, other than to confirm the key individuals 
the offerors have submitted.
    When an acquisition is subject to vetting, a provision in the 
solicitation will notify offerors of the vetting requirements and 
procedures. The contracting officer will instruct offerors when to 
submit the completed USAID Partner Information Form, USAID Form 500-13 
(``the Form''), to the vetting official identified in the solicitation. 
Each Mission or office will have flexibility in determining the 
appropriate individual to be the vetting official, but the vetting 
official will be a U.S. citizen employee of USAID who is not involved 
in the source selection process. In addition to receiving the completed 
Forms, the vetting official will be responsible for responding to 
questions from offerors about information to be included on the Form, 
coordinating with SEC, and conveying the vetting determination to each 
vetted offeror and the contracting officer.
    The Form identifies the information required for the key 
individuals of the offeror and required subcontractors. Key individuals 
include principal officers of the organization's governing body (e.g., 
chairman, vice chairman, treasurer and secretary of the board of 
directors or board of trustees), the principal officer and deputy 
principal officer of the organization (e.g., executive director, deputy 
director, president, vice president), the program manager or chief of 
party for the USG-financed program, and any other person with 
significant responsibilities for administration of the USG-financed 
activities or resources, including key personnel. The terms ``key 
individual'' and ``key personnel'' are not synonymous; all key 
personnel will be key individuals, but not vice versa.
    Key personnel are those personnel directly responsible for 
management of the contract or whose professional/technical skills are 
certified by the requiring office as being essential for successful 
implementation of the activity. They are designated in the contract and 
require USAID approval as described in Automated Directives System 
Chapter 302--USAID Direct Contracting. All key personnel, whether or 
not they are employees of the offeror, are considered key individuals 
and must be vetted.
    The contracting officer determines the appropriate stage of the 
acquisition cycle for offerors to submit the Form to the vetting 
official as specified in the solicitation. For negotiated procurements 
using FAR Part 15, this stage will typically be when the contracting 
officer establishes the competitive range (48 CFR 15.306(c)). For other 
acquisitions including those under FAR Part 13--Simplified Acquisition 
Procedures, FAR Part 14--Sealed Bidding, and task orders issued under 
Indefinite Quantity Contracts (IQCs) under FAR Part 16, this stage will 
most likely be just prior to award. Regardless of the point at which 
vetting begins, source selection proceeds separately from vetting. An 
offeror must pass vetting in order to be eligible for a USAID award, 
but this is not a source selection factor, nor a standard for 
determining the offeror's responsibility.
    When vetting at the competitive range stage, after all vetting 
determinations are received from SEC, the vetting official notifies 
offerors that they either have passed or have not passed vetting. For 
offerors who have not passed, the vetting official will include in the 
notification as detailed a written

[[Page 30496]]

explanation of the basis of the vetting determination as SEC determines 
releasable. In determining what information may be released, SEC will 
take into consideration the classification or sensitivity of the 
information, the need to protect sources and methods, and status of 
ongoing law enforcement and intelligence community investigations or 
operations.
    Concurrently, the vetting official also notifies the contracting 
officer that all vetting determinations have been provided to the 
offerors. The vetting official indicates to the contracting officer 
whether or not all offerors have passed vetting but will not provide 
the contracting officer with specific vetting information. The 
contracting officer may then request final revised proposals when 
discussions are completed. If not all offerors have passed vetting, 
then the contracting officer may provide as much time as is practicable 
for offerors to submit their revised final proposals. The additional 
time is intended to allow offerors to make changes to their proposals 
to accommodate any changes in key individuals and to request 
reconsideration of the vetting determination if appropriate. Offerors 
who change any key individuals for any reason, including but not 
limited to failure to pass vetting or for reasons related to their 
technical proposals, must submit their revised Form to the vetting 
official as soon as possible to allow for vetting of individuals not 
previously vetted.
    The contracting officer makes the source selection decision 
independently from the vetting process. The contracting officer then 
confirms with the vetting official that the apparently successful 
offeror has passed vetting and proceeds with award. Only offerors who 
have passed the vetting process are eligible for award. When the 
contracting officer is ready to make award but the vetting official is 
unable to confirm that the apparently successful offeror has passed 
vetting, the contracting officer will wait as long as is practicable 
for the vetting official's confirmation. However, at such time as the 
Government's need for the contract precludes delaying the award any 
longer, the contracting officer will proceed with award to the next 
offeror(s) who represents the best value in accordance with the 
evaluation criteria of the solicitation and passes vetting.
    Subcontracts. Partner vetting would also apply to subcontractors. 
In most circumstances, only those subcontracts for which consent is 
required in accordance with FAR clause 52.244-2 will be vetted. The 
contracting officer will not consent to a subcontract until the 
subcontractor's key individuals have passed vetting. When the agency 
considers it appropriate, additional subcontracts for certain classes 
of items (supplies and services) that are considered higher risk will 
also be vetted, even if consent is not required. The contracting 
officer will identify these classes of items in the solicitation and 
the contractor will be responsible for ensuring that these subcontracts 
at any tier are vetted before placing the subcontracts.
    In the pre-award stage, offerors may instruct their prospective 
subcontractors who are subject to vetting to begin the process at any 
time after the contracting officer notifies them to submit their Form. 
After contract award, the contractor is responsible for directing 
prospective subcontractors to submit the Form as soon as possible after 
selecting them, in order to have the vetting determination from the 
vetting official in time to place the subcontract. Subcontractors will 
submit their Form directly to the vetting official, who will notify the 
subcontractor of the vetting determination and provide any releasable 
information from SEC. The vetting official will inform the contractor, 
or a subcontractor entering into a lower tier subcontract subject to 
vetting, of the vetting determination only. The prospective 
subcontractor may choose to share the information provided by the 
vetting official to the contractor.
    Post-award vetting. As stated in the proposed clause at section (48 
CFR) 752.204-71(c), contractors must resubmit the Form annually or when 
they replace key individuals with individuals who have not been 
previously vetted for that contract.
    In order to implement partner vetting, USAID proposes to add a new 
subpart 704.70 to (48 CFR) AIDAR, with an associated solicitation 
provision and contract clause in (48 CFR) AIDAR part 752. Additionally, 
USAID proposes to amend (48 CFR) AIDAR parts 713, 714, and 715, and add 
new part 744 to include reference to the requirements at (48 CFR) AIDAR 
subpart 704.70.

B. Regulatory Planning and Review

    Under Executive Order (E.O.) 12866, USAID must determine whether a 
regulatory action is ``significant'' and therefore subject to the 
requirements of the E.O. and subject to review by the Office of 
Management and Budget (OMB). USAID has determined that this Proposed 
Rule is not an ``economically significant regulatory action'' under 
Section 3(f)(1) of E.O.12866. The application of the Partner Vetting 
System to USAID acquisitions will not have an economic impact of $100 
million or more. The regulation will not adversely affect the economy 
or any sector thereof, productivity, competition, jobs, the 
environment, nor public health or safety in a material way. However, as 
this proposed rule is a ``significant regulatory action'' under Section 
3(f)(4) of the E.O., USAID will submit it to OMB for review.

C. Regulatory Flexibility Act

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601 et seq.), USAID has considered the economic 
impact of the rule and has determined that its provisions would not 
have a significant economic impact on a substantial number of small 
entities.

D. Paperwork Reduction Act

    The proposed changes to the (48 CFR) AIDAR use information 
collected via USAID Partner Information Form, USAID Form 500-13, which 
was approved in accordance with 44 U.S.C. 3501 by the Office of 
Management and Budget on August 19, 2008 (OMB Control Number 0412-
0577).

List of Subjects in 48 CFR Parts 704, 713, 714, 715, 744, and 752

    Government procurement.

    For the reasons set forth in the preamble, the U.S. Agency for 
International Development proposes to amend 48 CFR chapter 7 as 
follows:
    1. The authority citation for 48 CFR parts 704, 713, 714, 715, and 
752 continues to read as follows:

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

PART 704--ADMINISTRATIVE MATTERS

    2. Add Subpart 704.70 to read as follows:
Subpart 704.70--Partner Vetting
Sec.
704.7001 Scope of subpart.
704.7002 Definitions.
704.7003 Policy.
704.7004 Procedures.
704.7004-1 Preaward requirements.
704.7004-2 Post award requirements.
704.7004-3 Subcontracts.
704.7005 Solicitation provision and contract clause.

Subpart 704.70--Partner Vetting


Sec.  704.7001  Scope of subpart.

    This subpart prescribes the policies and procedures to apply 
partner vetting to USAID acquisitions.

[[Page 30497]]

704.7002  Definitions.

    As used in this subpart--
    Key individual means:
    (1) Principal officers of the organization's governing body (e.g., 
chairman, vice chairman, treasurer and secretary of the board of 
directors or board of trustees);
    (2) The principal officer and deputy principal officer of the 
organization (e.g., executive director, deputy director, president, 
vice president);
    (3) The program manager or chief of party for the USG-financed 
program; and
    (4) Any other person with significant responsibilities for 
administration of the USG-financed activities or resources, such as key 
personnel as described in Automated Directives System Chapter 302. Key 
personnel, whether or not they are employees of the prime contractor, 
must be vetted.
    Vetting official means the USAID employee identified in the 
solicitation or contract as having responsibility for receiving vetting 
information, responding to questions about information to be included 
on the Partner Information Form, coordinating with the USAID Office of 
Security (SEC), and conveying the vetting determination to each 
offeror, potential subcontractors subject to vetting, and the 
contracting officer. The vetting official is not part of the 
contracting office and has no involvement in the source selection 
process.


704.7003  Policy.

    In the interest of national security, USAID may determine that a 
particular acquisition is subject to partner vetting. In that case, 
USAID will require vetting of the key individuals of certain offerors, 
including key personnel whether or not they are employees of the 
offeror, and first tier subcontractors. When USAID conducts partner 
vetting, it will not award a contract to any offeror who does not pass 
vetting.


704.7004  Procedures.


704.7004-1  Preaward requirements.

    (a) When USAID determines an acquisition to be subject to vetting, 
the contracting officer determines the appropriate stage of the 
acquisition cycle to require offerors to submit the completed USAID 
Partner Information Form, USAID Form 500-13, to the vetting official 
identified in the solicitation. The contracting officer must specify in 
the solicitation the stage at which the offerors will be required to 
submit the vetting Form.
    (b) For negotiated procurements using FAR Part 15, this stage will 
typically be when the contracting officer establishes the competitive 
range (48 CFR 15.306(c)). However, the contracting officer may 
determine that vetting is more appropriate immediately prior to award 
and require only the apparently successful offeror to submit the 
completed Form.
    (c) For other acquisitions including those under FAR Parts 13 and 
14, and task orders issued under Indefinite Quantity Contracts under 
FAR Part 16, the contracting officer determines the appropriate time to 
require potential awardee(s) to submit the completed Partner 
Information Form to the vetting official.
    (d) The source selection authority makes the source selection 
determination separately from the vetting process and without knowledge 
of vetting-related information other than that the apparently 
successful offeror has passed or not passed vetting.
    (e) The contracting officer may only award to an offeror who has 
passed partner vetting.


704.7004-2  Post-award requirements.

    For those acquisitions the agency has determined are subject to 
vetting, the contractor must submit the completed Form annually and any 
time it changes:
    (a) Key individuals, including all key personnel, and
    (b) Subcontractors for which vetting is required.


704.7004-3  Subcontracts.

    (a) Vetting is required for all subcontracts for which consent is 
required under FAR clause 52.244-2, Subcontracts.
    (b) The contracting officer must not consent to a subcontract with 
any subcontractor subject to partner vetting until that subcontractor 
has passed vetting.
    (c) Vetting may be required for subcontracts at any tier for 
certain classes of items (supplies and services). The contracting 
officer must identify these classes of items in the solicitation.
    (d) The contractor may instruct prospective subcontractors who are 
subject to partner vetting to submit the Form to the vetting official 
as soon as the contractor submits the Partner Information Form for its 
key individuals.


704.7005  Solicitation provision and contract clause.

    (a) The contracting officer will insert the provision at 752.204-70 
Partner Vetting Pre-Award Requirements, in all solicitations USAID 
identifies as subject to Partner Vetting.
    (b)(1) The contracting officer will insert the clause at 752.204-71 
Partner Vetting, in all solicitations and contracts USAID identifies as 
subject to partner vetting.
    (2) The contracting officer will use the clause with its Alternate 
I when USAID determines that subcontracts at any tier for certain 
classes of supplies or services are subject to vetting.

PART 713--SIMPLIFIED ACQUISITION PROCEDURES

    3. Add Section 713.106-370 to Subpart 713.1 to read as follows:


713.106-370  Partner Vetting.

    If an acquisition is identified as subject to Partner Vetting, see 
(48 CFR) AIDAR 704.70 for the applicable procedures and requirements.

PART 714--SEALED BIDDING

    4. Add Section 714.408-170 to Subpart 714.4 to read as follows:


714.408-170  Partner Vetting.

    If an acquisition is identified as subject to Partner Vetting, see 
(48 CFR) AIDAR 704.70 for the applicable procedures and requirements.

PART 715--CONTRACTING BY NEGOTIATION

    5. Add Subpart 715.70 to read as follows:
* * * * *

Subpart 715.70--Partner Vetting


715.70  Partner Vetting.

    If an acquisition is identified as subject to Partner Vetting, see 
(48 CFR) AIDAR 704.70 for the applicable procedures and requirements.
    6. Add Part 744 to read as follows:

PART 744--SUBCONTRACTING POLICIES AND PROCEDURES

Subpart 744.2--Consent to Subcontracts


744.202-170  Partner Vetting.

    If an acquisition is identified as subject to Partner Vetting, see 
(48 CFR) AIDAR 704.70 for the applicable procedures and requirements.

PART 752--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    7. Amend part 752 by adding sections 752.204-70 and 752.204-71, to 
read as follows:


752.2  Texts of Provisions and Clauses.

* * * * *

[[Page 30498]]

752.204-70  Partner Vetting Pre-Award Requirements.

    As prescribed in (48 CFR) AIDAR 704.7005(a), insert the following 
provision in all solicitations subject to vetting:

Partner Vetting Pre-Award Requirements (XXXX 2009)

    (a) USAID has determined that any contract resulting from this 
solicitation is subject to partner vetting. Terms used in this 
provision are defined in paragraph (b) of the AIDAR clause at 
752.204-71 Partner Vetting, of this solicitation. An offeror that 
has not passed vetting is ineligible for award.
    (b) The following are the vetting procedures for this 
solicitation:
    (1) Prospective offerors review the attached USAID Partner 
Information Form, USAID Form 500-13, and submit any questions about 
the Form or these procedures to the contracting officer by the 
deadline for questions in the solicitation.
    (2) The contracting officer notifies the offeror when to submit 
the Form. For this solicitation, USAID will vet at [insert in the 
provision the applicable stage of the source selection process at 
which the Contracting Officer will notify the offeror(s) who must be 
vetted]. Within the timeframe set by the contracting officer in the 
notification, the offeror must complete and submit the Form to the 
vetting official named in paragraph (d) of the AIDAR clause at 
752.204-71 Partner Vetting, of this solicitation. Note: Offerors who 
submit using non-secure methods of transmission do so at their own 
risk.
    (3) The offerors must notify proposed subcontractors of this 
requirement when the subcontractors are subject to vetting.
    (c) Vetting is conducted independently from any discussions the 
contracting officer may have with an offeror. The offeror and any 
subcontractor subject to vetting must not provide vetting 
information to other than the vetting official. The offeror and any 
subcontractor subject to vetting will communicate only with the 
vetting official regarding their vetting submission(s) and not with 
any other USAID or USG personnel, including the contracting officer 
or his/her representatives. Exchanges between the Government and an 
offeror about vetting information submitted by the offeror or any 
proposed subcontractor are clarifications in accordance with FAR 
15.306(a). The contracting officer designates the vetting official 
as the only individual authorized to clarify the offeror's and 
proposed subcontractor's vetting information.
    (d)(1) The vetting official notifies the offeror that it:
    (i) Has passed vetting,
    (ii) Has not passed vetting, or
    (iii) Must provide additional information, and resubmit the 
Partner Information Form with the additional information within the 
number of days the vetting official specified in the notification.
    (2) The vetting official will include in the notification any 
information that USAID's Office of Security determines releasable. 
In its determination, SEC will take into consideration the 
classification or sensitivity of the information, the need to 
protect sources and methods, or status of ongoing law enforcement 
and intelligence community investigations or operations.
    (e) Reconsideration. (1) Within 7 calendar days after the date 
of the vetting official's notification, an offeror that has not 
passed vetting may request in writing to the vetting official that 
the Agency reconsider the vetting determination. The request should 
include any written explanation, legal documentation and any other 
relevant written material for reconsideration.
    (2) Within 7 calendar days after the vetting official receives 
the request for reconsideration, the Agency will determine whether 
the offeror's additional information warrants a revised decision.
    (3) The Agency's determination of whether reconsideration is 
warranted is final.
    (f) Revisions to vetting information. (1) Offerors who change 
key individuals, whether the offeror has previously passed vetting 
or not, must submit a revised Partner Information Form to the 
vetting official. This includes changes to key personnel resulting 
from revisions to the technical proposal.
    (2) The vetting official will follow the vetting process in 
paragraph (d) of this clause for any revision of the offeror's Form.
    (g) Award. At the time of award, the contracting officer will 
confirm with the vetting official that the apparently successful 
offeror has passed vetting. The contracting officer may award only 
to an apparently successful offeror that has passed vetting.


752.204-71  Partner Vetting.

    As prescribed in (48 CFR) AIDAR 704.7005(b), insert the following 
clause in all contracts subject to vetting:

Partner Vetting (XXXXX 2009)

    (a) The contractor must comply with the vetting requirements for 
key individuals under this contract.
    (b) Definitions. As used in this provision--
    Key individual means:
    (1) Principal officers of the organization's governing body 
(e.g., chairman, vice chairman, treasurer and secretary of the board 
of directors or board of trustees);
    (2) The principal officer and deputy principal officer of the 
organization (e.g., executive director, deputy director, president, 
vice president);
    (3) The program manager or chief of party for the USG-financed 
program; and
    (4) Any other person with significant responsibilities for 
administration of the USG-financed activities or resources, such as 
key personnel as described in Automated Directives System Chapter 
302. Key personnel, whether or not they are employees of the prime 
contractor, must be vetted.
    Vetting official means the USAID employee identified in 
paragraph (e) of this clause as having responsibility for receiving 
vetting information, responding to questions about information to be 
included on the USAID Partner Information Form, USAID Form 500-13, 
coordinating with the USAID Office of Security, and conveying the 
vetting determination to each offeror, potential subcontractors 
subject to vetting, and to the contracting officer. The vetting 
official is not part of the contracting office and has no 
involvement in the source selection process.
    (c) The Contractor must submit a USAID Partner Information Form, 
USAID Form 500-13, to the vetting official identified below during 
the contract period--
    (1) Annually by the anniversary date of contract award, and
    (2) When the Contractor replaces key individuals with 
individuals who have not been previously vetting for this contract. 
Note: USAID will not approve any key personnel who have not passed 
vetting.
    (d) The designated vetting official is:

Vetting official:------------------------------------------------------
Address:---------------------------------------------------------------
-----------------------------------------------------------------------
E-mail:----------------------------------------------------------------
(for inquiries only)

    (e)(1) The vetting official will notify the Contractor that it--
    (i) Has passed vetting,
    (ii) Has not passed vetting, or
    (iii) Must provide additional information, and resubmit the 
Partner Information Form with the additional information within the 
number of days the vetting official specifies.
    (2) The vetting official will include in the notification any 
information that USAID's Office of Security determines releasable. 
In its determination, SEC will take into consideration the 
classification or sensitivity of the information, the need to 
protect sources and methods, or status of ongoing law enforcement 
and intelligence community investigations or operations.
    (f) Reconsideration. (1) Within 7 calendar days after the date 
of the vetting official's notification, the contractor or 
prospective subcontractor that has not passed vetting may request in 
writing to the vetting official that the Agency reconsider the 
vetting determination. The request should include any written 
explanation, legal documentation and any other relevant written 
material for reconsideration.
    (2) Within 7 calendar days after the vetting official receives 
the request for reconsideration, the Agency will determine whether 
the Contractor's additional information warrants a revised decision.
    (3) The Agency's determination of whether reconsideration is 
warranted is final.
    (g) A notification that the Contractor has passed vetting does 
not constitute any other approval under this contract.
    (h) When the Contractor anticipates awarding a subcontract for 
which consent is required under FAR clause 52.244-2, Subcontracts, 
the subcontract is subject to vetting. The prospective subcontractor 
must submit a USAID Partner Information Form, USAID Form 500-13, to 
the vetting official identified in paragraph (d) of this clause. The 
contracting officer must not consent to award of a subcontract to 
any organization that has not passed vetting when required.
    (i) The Contractor agrees to incorporate the substance of 
paragraphs (a) through (g) of this clause in all subcontracts under 
this contract.


(End of clause)


Alternate I (XXX 2009). As prescribed in 704.7005(b)(2), substitute 
paragraphs (h) and (i) below for paragraphs (h) and (i) of the basic 
clause:


[[Page 30499]]


    (h)(1) When the Contractor anticipates awarding a subcontract 
for which consent is required under FAR clause 52.244-2, 
Subcontracts, the subcontract is subject to vetting. The prospective 
subcontractor must submit a USAID Partner Information Form, USAID 
Form 500-13, to the vetting official identified in paragraph (d) of 
this clause. The contracting officer must not consent to award of a 
subcontract to any organization that has not passed vetting when 
required.
    (2) In addition, prospective subcontractors at any tier 
providing the following classes of items (supplies and services):

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must pass vetting. Contractors must not place subcontracts for these 
classes of items until they receive confirmation from the vetting 
official that the prospective subcontractor has passed vetting.
    (i) The Contractor agrees to incorporate the substance of this 
clause in all subcontracts under this contract.

Maureen A. Shauket,
Director, Office of Acquisition and Assistance, U.S. Agency for 
International Development.
[FR Doc. E9-15012 Filed 6-25-09; 8:45 am]
BILLING CODE 6116-01-P