Attachment J.1

 

 

APPENDIX A

 

PERSONNEL APPENDIX

 

INTRODUCTION

 

I.                     LABOR RELATIONS

 

A.                 Bargaining Objectives

B.                 Notification of Labor Activity

C.                Allowable Costs

D.                Reports

 

II.                   LABOR STANDARDS

 

A.                 Requests for Davis-Bacon Determinations of Coverage

B.                 Job Site Audits and Payroll Validation

C.                Recordkeeping

D.                Posters

E.                 Request for Service Contract Act Determination of Coverage

F.                 Reports

 

III.                  REDUCTIONS IN CONTRACTOR EMPLOYMENT

 

A.                 Workforce Planning

            B.        Involuntary Separations

            C.        Displaced Worker Medical Benefit

            D.        Discharge for Cause or Voluntary Resignation

            E.        Completion of Term Appointment

 

IV.               COMPENSATION PROGRAM

 

A.                 Objectives

B.                 Job Evaluation/Job Classifications/Salary Structure

C.                Employee Performance Recognition Award Program

D.                Salary Actions

E.                 Compensation Increase Plan

F.                 Basis of Payment

G.                Performance Evaluation System

H.                 Overtime

I.                     Shift Premiums

J.                  Special Allowances

K.                 Uniform Allowance for Fire and Security Officers

L.                  Fire Department Provisions - Overtime and Accrual Systems for Fire

Fighters and Fire Lieutenants

M.                Twelve Hour Shift Provisions

 

V.                 EMPLOYEE BENEFITS

 

A.        Benefit Value and Cost Comparison Studies

B.        Value Study Comparison Requirements

            C.        Group Life and Accidental Death and Dismemberment

            D.        Medical

            E.        Long Term Disability

            F.         Travel Insurance

            G.        Dependent Life Insurance

            H.        Group Dental

I.          Workers Compensation

J.         Post-Contractor Employee Benefit Costs

 

VI.               DOE CONTRACTOR PENSION PLANS

 

A.                 Plan Conditions

B.                 Contributions

C.                Eligibility

D.                Discontinuance, Modification or Amendments

E.                 Repurchase

F.                 Termination of Operations

G.                Terminating Plans

H.                 Annual Reports

 

VII.              RISK MANAGEMENT AND LIABILITY PROGRAMS

 

A.        Requirements

B.        Terminating Operations

C.        Successor Contractor or Insurance Policy Cancellation

D.        Reports

 

VIII.            CONTRACTOR WORKPLACE SUBSTANCE ABUSE PROGRAMS

 

A.        Requirements

B.        Reports

 

IX.        EMPLOYEE PROGRAMS

 

A.                 Recreation and Morale Benefits

B.                 Health

C.                Employee Assistance Program

D.                Day Care

E.                 Patent and Copyright Awards

F.                 Service Awards

G.                Other Awards

 

IX.               PROGRAM INVOLVING EMPLOYEE ABSENCE FROM THE WORKPLACE

 

A.                 Vacations

B.                 Holidays

C.                Holiday Pay

D.                Disability and Sick Leave

E.                 Other Excused Absences

F.                 Leave Without Pay

G.                Part-time Leave of Absence

 

XI.        EMPLOYEE TRAINING, EDUCATION AND DEVELOPMENT

 

XII.       EMPLOYMENT AND RECRUITMENT EXPENSES

 

            A.        Employment and Recruiting Expenses

            B.        Physics Program Appointments

 

XIII.            TRAVEL

 

XIV.          SPECIAL PROFESSIONAL SERVICES

 

EXHIBIT I - DEFINITIONS

 

EXHIBIT II – JOB TITLES, GRADES AND SALARY SCHEDULES

                        [URA Business Confidential]

 

 

PERSONNEL APPENDIX

 

INTRODUCTION

 

This Personnel Appendix sets forth those contractor human resource management policies, procedures, practices and those employee related costs (e.g., salaries, fringe benefits, travel, relocation, etc.) deemed reasonable and allowable for reimbursement when incurred in the performance of the contract.

 

The Contractor shall select, manage, and direct the work force, to maintain satisfactory standards for employee competency, conduct and integrity, and be responsible for taking such action as may be necessary to maintain such standards.  The Contractor shall use effective management review procedures and internal controls to assure that all costs are allowable and that actions which require prior approval of the Department of Energy (DOE) Contracting Officer or designated representative are reviewed and approved prior to incurrence of costs.

 

The Personnel Appendix is adopted for the exclusive benefit and convenience of the Parties hereto and nothing contained herein shall be construed as conferring any right or benefit upon past, present or future employees of the Contractor, or upon any third party.

 

Either Party may request that this Personnel Appendix be revised in accordance with the understandings outlined in Federal Acquisition Regulations (FAR) 31.205-6, Department of Energy Acquisition Regulation (DEAR) 970.3102-05-6, and the parties hereto agree to give consideration in good faith to any such request.  The Contractor will advise DOE of any proposed changes in any matters covered by these policies, practices or plans, which relate to personnel costs.  The personnel appendix may be modified from time to time in writing by mutual agreement of the contractor and DOE without execution of an amendment to the contract. Such modifications shall be evidenced by execution of written numbered approval letters from the Contracting Officer or his representative.  Modified pages will be issued reflecting such changes and will bear the effective modification number and date of such changes in the upper left-hand corner of each page.

 

The Contractor shall promptly furnish all reports and information required or otherwise indicated in this Appendix to the Contracting Officer or other Parties identified by the Contracting Officer. The Contractor and the DOE recognize that other data requests may be made from time to time and the parties agree to cooperate in meeting such requests.

 

The Contractor shall submit its written personnel policies, procedures and practices and any revisions thereto that implement the Personnel Appendix to the Contracting Officer for informational purposes.

 

Should conflicts arise between the written provisions of Appendix A of this contract and DOE 350.1, Appendix A will take precedence.

 

 

I.  LABOR RELATIONS

 

 

A.        Bargaining Objectives

 

1.                  The Contractor agrees to develop and implement labor relations policies that will promote orderly collective bargaining relationships, equitable resolution of disputes, efficiency and economy in operations, and the judicious expenditure of public funds. 

 

2.                  The Contractor will inform the Contracting Officer of the progress of negotiations with the labor unions and of their conclusion. During the term of labor contracts, the Contractor will also inform the Contracting Officer of issues, which may have a significant economic effect, may cause significant change from past work rules, customs or practices, and of the outcome of make-or-buy decisions.

 

B.        Notification of Labor Activity

 

            The Contractor shall keep the Contracting Officer advised of significant developments during any negotiation and shall promptly advise (within 24 hours) the Contracting Officer of labor relations developments which involve or appear to include such matters as:

·        Possible strike situations or other job actions affecting the continuity of operations,

 

·        Formal action of the National Labor Relations Board or Federal Mediation and Conciliation Service(copies of the Board correspondence shall be provided to the Contracting Officer),

 

·        Recourse to procedures under the Labor-Management Relations Act of 1947, as amended, or any other Federal or State labor law,

 

·        Any grievance that is potentially precedent setting or of anticipated high cost scheduled for arbitration under a collective bargaining agreement that has the potential for significant economic or other impact, or

 

·        Any significant issues that may involve review by other Federal or State agencies.

 

 

C.        Allowable Costs

 

Costs of wages, and benefits, afforded to employees represented by collective bargaining units, not in excess of those provided in the Collective Bargaining Agreements or afforded to all other Contractor employees shall be allowable.  All other costs, such as expenses relating to the grievance processing and settlements, arbitration and arbitration awards and other costs and expenses incurred pursuant to the provisions of the Collective Bargaining Agreements and revisions thereto are also allowable

 

D.        Reports

 

The Contractor will provide the Contracting Officer with a settlement summary within 30 to 60 calendar days after formal ratification of the collective bargaining agreement, using the "Report of Settlement" form.

 

 

LABOR STANDARDS

 

 

A.        Requests for Davis-Bacon Determinations of Coverage

 

The Contractor agrees to request Davis-Bacon coverage determinations from the Contracting Officer by submitting proposed work authorizations for contracts in excess of $2,000 for construction, alteration, or repair, including painting and decorating, of public buildings and public works that involve the employment of laborers and mechanics.

 

The Contractor agrees to accomplish the work tasks in accordance with the labor standards determination.

 

B.        Job Site Audits and Payroll Validation

 

The Contractor agrees to ensure that subcontractors comply with the Davis-Bacon Act and conduct payroll and job-site audits, as requested or authorized by the Contracting Officer.

 

C.        Recordkeeping

 

The Contractor agrees to maintain accurate and complete Davis-Bacon Act payrolls for 3 years from completion of contract for construction work that is performed on site.

 

D.        Posters

 

The Contractor agrees to post in a prominent job-site location the following Department of Labor Publications:

 

WH-1321, Notice to Employees Working on Federal or Federally Financed Construction Projects

 

WH-1313, Notice to Employees Working on Government Contracts

 

E.        Request for Service Contract Act Determination of Coverage

 

The Contractor agrees to prepare Standard Form 98, "Notice of Intention to Make a Service Contract and Response to Notice" for all subcontracts subject to the Service Contract Act and forward them to the Contracting Officer.

 

 

F.         Reports

 

The Contractor shall prepare and submit the Davis-Bacon Semi-Annual Enforcement Report to the Contracting Officer by April 15 and October 15 of each year.

 

 

III.        REDUCTIONS IN CONTRACTOR EMPLOYMENT

 

 

A.        Workforce Planning

 

            The Contractor will work with DOE to ensure that ongoing and effective workforce planning takes place consistent with guidance provided by the Office of Worker and Community Transition.

 

B.        Involuntary Separations

 

            1.         The Contractor will advise the Contracting Officer of all Reductions-In-Force prior to their initiation. A reduction-in-force action is a separation of an employee (other than for cause) due to a planned action.

 

            2.         The Contractor will provide unemployment insurance for Contractor employees in accordance with the Illinois Unemployment Compensation Act.

 

            3.         In the event of a reduction in force, it is the intent of the Contractor to provide two weeks notice to all employees impacted.  In those instances where the Contractor is unable to give timely notification, pay in lieu of this notice may be given.

 

                        In addition to the notice provision, a non-exempt employee laid off by the Contractor after completion of the entry probation period will be eligible for severance pay based on the following schedule:

 

                                    NON-EXEMPT SEVERANCE SCHEDULE

 

Less than 1 year

2 weeks

1 years to 5 years

3 weeks

5 years to 10 years

5 weeks

10 years to 15 years

7 weeks

15 years to 20 years

9 weeks

20 years to 25 years

11 weeks

25 years to 30 years

13 weeks

 

                        In addition to the notice provision, an exempt employee laid off by the Contractor after completion of the entry probation period will be eligible for severance pay based on the following schedule:

 

 

                                    EXEMPT SEVERANCE SCHEDULE

 

Less than 1 year

1 month

1 year to 5 years

2 months

5 years to 10 years

3 months

10 years to 15 years

4 months

15 years to 20 years

5 months

20 years to 30 years

6 months

30 years to 35 years

7 months

 

            Any employee who volunteers for layoff or retirement during a time period in which the Contractor has an active reduction in force plan will be eligible for severance pay provided the termination is accepted by Laboratory management and results in the retention of an employee who otherwise would have been laid off.

 

            4.         No employee (1) who accepts transfer to another facility, subsidiary, or affiliate of the Contractor, (2) who is offered employment at comparable pay and benefits by a successor Contractor, (3) who resigns, or (4) who is discharged for cause will be eligible for severance pay.

 

            5.         The Contractor, to the extent practicable, shall provide outplacement services to those employees who are involuntarily separated due to a layoff.

                       

C.        Displaced Worker Medical Benefit

           

            Employees placed on layoff status who have completed the entry probation period are eligible for continued participation in the health benefits program with premiums supplemented by the Contractor based on the following schedule:

                                   

            1.         First Year:  The Contractor's contribution for an active employee

            2.         Second Year:  One half of the Contractor's Cobra premium

            3.         Third and subsequent years:  Reasonable administrative costs that exceed the two percent administrative fee paid by the displaced worker.

 

            D.        Discharge for Cause or Voluntary Resignation

 

            No severance pay will be given any employee who is discharged for cause.  Voluntary resignations are not eligible for severance unless the provisions of  III.B.3. are applicable.

 

E.        Completion of Term Appointment

 

            1.         A term employee whose appointment is not renewed or converted to a continuing appointment at the end of the term shall be given no severance pay.

 

            2.         The Contractor may, however, pay travel in accordance with FAR 31.205-46 supplemented by DEAR 970.3102-05-46 and relocation expenses in accordance with FAR 31.205-35 for the employee and family for return to point of origin (or for an equivalent distance), when reimbursement of such expenses is provided for in the terms of the employment agreement or required by law.  When a term employee who has been employed less than a year is involuntarily separated, approval of the Laboratory Director is required for payment of these travel and relocation costs.  No travel or relocation allowances will be given to any term employee who is discharged for cause or voluntarily resigns.

 

                        a.         The rules for business travel shall be applicable except that the per diem rate for the employee's spouse and for each other member of the family over six (6) years of age shall be three-fourths (3/4) of that of the employee, and for each child six (6) years old or younger, it shall be one-half (1/2) that of the employee.

 

                        b.         Relocation expenses shall be reimbursed in accordance with Section XIII, Travel.  Lease termination costs (the costs necessarily incurred by the employee for terminating a residence lease) may be reimbursed only with the approval of the Contracting Officer.

 

F.         Changes to the Contractor's severance pay plan are subject to Contracting Officer approval.

 

 

IV.       COMPENSATION PROGRAM

 

 

A.        Objectives

 

            1.         The Contractor has developed and maintains a formal compensation program, which will be appraised at least once during the term of the contract.  Any modifications to compensation program policies affecting reimbursable costs shall be submitted to the Contracting Officer for approval and shall not be binding for reimbursement purposes until approved by the Contracting Officer.

 

            2.         The Contractor's objectives in the administration of compensation are to provide compensation for each employee that will reflect the value of the position to the Contractor and to relate salary increases to an individual's performance.

 

            3.         Within the limits of fiscal resources available annually, every effort is made to maintain staff member compensation at levels that will attract and retain a well-qualified and productive work force to successfully perform the contract work.  Salary structure adjustments will be based upon measured market movement and the Contractor's market position.  Employee salary increases must be based on merit for proficiency and effectiveness or external or internal  pay equity.

 

            4.         All positions administered under the Contractor's Salary Administration Program will be evaluated and classified into job grades which reflect the relative level of difficulty of the individual position determined by the knowledge, skill, effort and responsibility of the position.

 

            5.         The Contractor will use its best efforts to comply with any special compensation policies established by the Secretary of Energy affecting the Contractor.

 

B.        Job Evaluation/Job Classifications/Salary Structures

                       

            1.         The Contractor has developed and maintains a formal job evaluation system, which evaluates duties of positions consistent with the external and internal value of jobs and places them in a grade in the appropriate schedule.

 

            2.         The Contracting Officer shall be provided copies of all job descriptions and any revisions thereto.

 

           

 

            3.         The salary ranges contained in Exhibit II of this Personnel Appendix will be adjusted periodically to reflect changes in economic conditions in the Contractor's labor market and to maintain proper compensation relationships within the Contractor's work force.  Survey data shall be sufficiently comprehensive to permit a representative finding for firms competing with the Contractor for labor.  Any changes to the salary ranges will be approved by the Contracting Officer.

 

C.        Employee Performance Recognition Award Program

 

            The Contractor has an incentive award program for all employees who make significant scientific, technical or administrative contributions and whose performance is clearly beyond job expectations.  Award increases which exceed the larger of $10,000 or 15% of the awardee's base salary require prior written approval of DOE.  The dollar amounts available for the award pool will be an identified maximum dollar limit, determined by the Contractor, of the DOE approved annual merit fund.  The Contractor shall submit to DOE an annual report of the utilization of this program.

 

D.        Salary Actions

 

            Each individual salary action (including deferred compensation if applicable) resulting in a total annual compensation of $125,000 or more shall require the prior written approval of the Contracting Officer.  Salary increases which exceed the larger of $15,000 or 15% of the employee's base salary require prior written approval of the Contracting Officer.  The Contractor shall support each such request with pertinent data upon which the justification is based for the proposed salary action.

 

E.        Compensation Increase Plan

 

1.                  For each salary review year, the Contractor shall develop and support a Compensation Increase Plan for Contracting Officer review and approval, which conforms to the annual approval procedures for Compensation Increase Plans, issued by DOE-Headquarters.  In developing this Compensation Increase Plan, the Contractor will make a study of salary levels for comparable positions at other organizations acceptable to the Contracting Officer.  This Plan will be based on such factors as national and local surveys, area rates, retention and other such criteria as may be pertinent in establishing competitive salaries for each occupational group, i.e., scientists and engineers, administrative, technical and clerical.  The Compensation Increase Plan should include data which measures average pay to market pay; information regarding surveys, aging factors used in escalating survey data, projection of escalation in the market and supporting information and analysis to support special adjustment requests.

 

            2.         The Compensation Increase Plan will be derived as a percentage of base payroll at the end of the prior salary review year.  The portion of the Increase Plan that is attributed to promotions will be separately identified. Subsequent increases to the Compensation Increase Plan may be obtained with prior written approval of the Contracting Officer based on exceptional circumstances. 

 

            3.         All increases are charged to the fund on an annualized basis.  The exception to this is the cost associated with a posted promotion to the minimum of the new salary range.  If a promotion is above the minimum of the new salary range, the difference between the minimum of the range and the actual salary will be charged to the promotion piece of the Compensation Increase Plan.  Once an individual's salary increase is charged to the fund, reuse of that amount, i.e., recovery, for any other purpose during the salary year is unallowable.  If an individual terminates before receiving an increase, the portion of the fund allocated for that increase may remain in the Plan.

 

            4.         The Contractor shall provide to the Contracting Officer a copy of the annually developed salary guidelines prepared for supervisory use, indicating the parameters for granting various increases based on employee performance and current salary.

 

F.         Basis of Payment

 

            1.         A full-time nonexempt employee is paid on an hourly basis, or a weekly basis, the rate representing compensation for five (5) regularly scheduled eight (8) hour days in each Work Week, or a monthly basis, the rate representing compensation for all hours worked in a calendar month, except as otherwise provided in this Appendix A.

 

            2.         A full-time exempt employee is paid a biweekly or monthly salary as full compensation for all work performed regardless of the hours actually worked.  However, it is considered that the regular weekly work schedule will be forty (40) hours.

 

            3.         A part-time employee is paid on the basis established by the terms of his/her employment or appointment.

 

 

G.        Performance Evaluation System

 

            The Contractor shall maintain an effective performance evaluation system, which appraises each employee on an annual basis against performance criteria appropriate to specific job requirements and job level.

 

H.        Overtime

 

            A nonexempt employee shall be paid at one and one-half (1-1/2) times his/her regular base rate for all work performed in excess of forty (40) hours in any Work Week.

 

            If a nonexempt employee at the direction of the Contractor performs emergency work or performs work on either of his/her scheduled days off and the overtime payment for such work amounts to less than four (4) hours pay at his/her regular base rate, the employee may be paid four (4) hours pay at this regular base rate (plus shift premium, if any) as full compensation for such work.

           

I.          Shift Premiums

 

            The Contractor may pay to nonexempt employees a shift premium of 7% of hourly rate when one-half or more of their shift falls between 6:00 p.m. and 12 midnight.  A shift premium of 10% of hourly rate may be paid to employees who are scheduled to work a shift in which one-half or more of the regular hours of work fall between 12 midnight and 6:00 a.m.  The Contractor may pay a shift premium of one hundred dollars ($100) per month to staff persons regularly assigned to evening and night operations for the purpose of supervising off shift activities or providing technical management.  Evening operations are defined as those where half or more of the scheduled shift hours fall between 6:00 p.m. and 6:00 a.m.  Where shift assignment changes occur during a payroll period, the premium will be prorated for the appropriate portion of the pay period.  Staff persons on short-term project related schedules, emergency call-ins or Fire Department staff on twenty-four hour schedules are not covered by this policy.

 

J.         Special Allowances

 

            1.         Reporting Allowances

 

            A nonexempt employee who reports for scheduled work at the direction of the Contractor and who is prevented from working all or part of such scheduled work by conditions beyond his/her control, may be paid a reporting allowance up to the amount he/she would have received if such scheduled work had been performed.

 

 

            2.         An employee who is late to work because of widespread fire, storm or flood, or because of some other cause acceptable to the Contractor and beyond the control of the employee, may be considered to have reported for work on time provided that he/she shall have reported for work during the first half of his/her scheduled work period.

 

            3.         Overtime Meal Period

 

            A nonexempt employee working more than ten (10) consecutive hours may be allowed a thirty (30) minute paid meal period.  If, due to operational requirements, an employee is prohibited from taking the full thirty (30) minute meal period, the lost meal time may, for pay purposes, be considered additional time worked.

 

K.        Uniform Allowance for Fire and Security Officers

 

            The Contractor may pay a uniform allowance to the exempt fire and security officers.  The allowance will be made in lieu of certain uniform items being furnished and maintained by the Contractor.  Each individual will be responsible for fitting, obtaining, and maintenance of required uniform items on his/her own time. 

 

L.         Fire Department Provisions - Overtime and Accrual Systems for Fire Fighters and Fire Lieutenants

 

            These arrangements are covered under a collective bargaining agreement with the International Association of Fire Fighters AFL-CIO, Local No. I-21.

 

M.        Twelve Hour Shift Provisions

 

            Employees assigned to a 12-hour shift schedule will be covered by regular Laboratory policy, with the following exceptions:

 

            1.         For work on any scheduled day in the workweek, hours worked after 8 will be paid at time and one-half (1-1/2).  For work on any nonscheduled day in the workweek, an employee will receive one and one-half (1-1/2) times base rate.

 

            2.         No shift premium will be paid employees for all hours worked when assigned as a permanent member of a 12-hour shift.

 

 

 

            3.         An employee will receive three (3) times base rate for hours worked on a day recognized as a holiday, or the day of national recognition.  This rate includes pay for the holiday.  If an employee is scheduled to work a 12-hour day on a holiday and is not required to work, he/she will receive twelve (12) hours of straight time pay as holiday pay.

 

            4.         Vacation and sick leave will be charged and paid for at the employee's straight time rate.

 

            5.         Authorized absences with pay:

 

                        a.         Funeral Leave.  Employees will be allowed up to twenty-four (24) hours absence with pay at base rate for a death in the immediate family (as defined by Section X.E.5.).

 

                        b.         Jury Duty.  Employees who have served jury duty during a week will be compensated for the difference between daily jury pay and twelve (12) hours at their regular base rate for every scheduled work day during that week.

 

                        c.         Military Leave.  For purposes of computing military leave pay, the employee's base salary for the period of leave is defined as the base straight time rate an employee would earn on his/her regularly scheduled 12-hour shift (12 hours per day at base straight time hourly rate).

 

            6.         For the purpose of determining premiums, contributions, and benefits payable under the Contractor's retirement and insurance programs, an employee's base rate will be considered to be his/her regular straight time hourly rate times (x) two thousand eighty (2,080) hours for an annual rate.

 

            7.         In order to establish and maintain an efficient shift operation, employees who are assigned to the 12-hour shift schedule will normally remain on this schedule for a minimum of ten (10) consecutive weeks.

 

            8.         Contractor policies regarding overtime meal periods for employees working after ten (10) consecutive hours are not applicable to employees assigned to a 12-hour shift.

 

            9.         General rules for "relief" or "fill-in" for absent 12-hour shift employees:

 

                        a.         "Relief" or "fill-in" for employees who are absent due to illness or other nonscheduled absences (where supervisors cannot normally be provided at least 36 hours notice) will normally be made by other 12-hour shift employees on their nonscheduled day.

 

                        b.         Employees assigned to a 12-hour shift will not be permitted to work more than twelve (12) consecutive hours in a 24-hour period.

 

 

V.        EMPLOYEE BENEFITS

 

 

The Contractor shall develop and implement welfare benefit programs that meet the tests of allowability and reasonableness established by FAR 31.205-6, supplemented by DEAR 970-3102-05-6.

 

A.        Benefit Value and Cost Comparison Studies

 

The Contractor shall submit to the Contracting Officer for approval an evaluation of its benefit programs using professionally recognized measures to compare its benefit programs to other organizations.  The evaluation shall consist of a Benefit Value Study and a U. S. Chamber of Commerce (COC) Employee Benefit Survey Comparison or a comparable Contracting Officer approved Cost Study.  The contractor's Value Study and Cost Study results must fall within the range of acceptability (i.e., no more than 5 percent above the comparator for other organizations). 

           

If the contractor uses the COC survey, it should include a comparative analysis to the COC survey data, utilizing data agreed to by the Contracting Officer.  The calculated per capita benefits cost per full-time equivalent employee shall be compared to the most recently published COC survey and contractor benefits data from the same benefit year as the survey benefit year.

 

            When both the contractor's cost or value are greater than 5 percent above the comparator for other organizations, an in-depth study to analyze the specific benefit plans that are above and below the comparator must be performed.  A corrective action plan to achieve conformance with the range of acceptability is required.

 

            When only the contractor's per capita benefit cost per full-time equivalent employee exceeds the range of acceptability, the requirement for a corrective action plan to achieve conformance with the per capita cost range of acceptability is at the discretion of the Contracting Officer.

 

When only the contractor's value is greater than 5 percent above the comparator for other organizations, a corrective action plan to achieve conformance with the range of acceptability is required.

 

The Benefit Value Study and the approved Cost Study shall be conducted at the mid-term of the Contract and be submitted to the Contracting Officer for approval.  If the COC

 

survey is utilized it shall be conducted every two years and submitted to the Contracting Officer for approval.

 

B.        Value Study Comparison Requirements

 

The Value Study shall meet the following requirements:

 

The Contractor shall determine a list of no less than 15 participants to be a part of the study and obtain Contracting Officer approval of the list prior to the performance of the study.

 

The Value Study shall include major non-statutory benefit plans offered by the Contractor, including qualified defined benefit, defined contribution retirement, and capital accumulation plans, and death, disability, health, and paid time-off welfare benefit programs.

 

The Value Study must be performed by a national consulting firm with expertise in benefit value studies.

 

To the extent the Value Study does not address post-retirement benefit programs, the contractor shall provide separate cost and plan design data on post-retirement benefits other than pensions compared to external benchmarks of a nationally recognized survey source at least once every three years.

 

C.        Group Life and Accidental Death and Dismemberment

 

            The Contractor provides Basic Group Life Insurance equal to one times annual base salary and up to a maximum of twelve thousand five hundred dollars ($12,500) Accidental Death and Dismemberment Insurance.  Employees will be eligible to purchase additional amounts at full cost (premium rate set by the carrier) to either double or triple the total life insurance.

 

            For employees who elect to continue employment beyond normal retirement age, the following schedule of life insurance coverage applies:

 

                                                Basic                          Supplemental I           Supplemental II

                        Age                 100% base salary     200% base salary     300% base salary

                        65                    .92 x base salary       .92 x base salary       .92 x base salary

                        66                    .84 x base salary       .84 x base salary       .84 x base salary

                        67                    .76 x base salary       .76 x base salary       .76 x base salary

                       

                        68                    .68 x base salary       .68 x base salary       .68 x base salary

                        69                    .60 x base salary       .60 x base salary       .60 x base salary

                        70+                 .60% x base salary   .60 x base salary       .60 x base salary

                                                or $45,000, which-    or $45,000, which-    or $45,000, which-

                                                ever is lesser             ever is lesser             ever is lesser

 

D.        Medical

 

            The Contractor makes available to its employees Medical Insurance options, which include a preferred provider plan and several health maintenance organizations. Employees who elect single PPO coverage currently pay $36.60 per month, and employees who elect PPO family coverage currently pay $125.60 per month.   Employees who elect single POS coverage currently pay $32.34, and employees who elect family POS coverage currently pay $112.25.  Employees who elect single HMO coverage currently pay $33.04, and employees who elect family HMO coverage currently pay $112.30.  Immediately prior to the time the policy and contracts covering these medical benefits is renewed, the Contractor will review with the Contracting Officer for approval, the monthly amount to be charged employees for health plan participation.  The Contractor and Contracting Officer will, within 10 working days after the Contractor informs the Contracting Officer of the proposed new rates, reach an agreement as to the monthly amount to be charged.  The Contractor will provide the Contracting Officer with a copy of the certificate of coverage issued by the indemnity carrier and any subsequent modifications.

 

            Where active employees and/or their dependents reach age sixty-five (65) and become eligible for Medicare benefits, the Contractor will coordinate benefits with Medicare coverage following federal regulations.

 

            Participants in the retiree program eligible for Medicare will receive URA benefits as carve-out coverage to Medicare up to the level paid under the schedule of benefits in the URA plan.  This benefit can be extended to early retirees, subsequent to their fifty-fifth (55) birthday.  In all early retirement cases, the sum of unbroken years of service plus age must equal sixty-five (65).  Early retirees otherwise eligible who are subsequently employed elsewhere will become ineligible for retiree coverage if the new employer makes available a group medical plan (including a contributor plan).  Such subsequent employment will not preclude the retiree from again being eligible if he/she becomes ineligible for coverage under any other plan.  In the event a retiree with dependent coverage dies, the dependent coverage will be continued for a surviving spouse.

 

            Effective January 1 2002, all employees subsequently electing early retirement will continue to pay the premium amount agreed upon for active employees following the annual group insurance review.

 

            Effective January 1, 2002, and every year thereafter, all employees who subsequently retire and are eligible for Medicare coverage and elect the URA carve-out medical coverage will, in addition to their Medicare premium, pay URA that amount, if any, by which the URA premium amount agreed upon for active employees following the annual group insurance review (the elected single or family premium), exceeds the prevailing Medicare premium. The minimum premium that Medicare eligible retirees will pay for URA's medical plan will be $2.50 per month for single coverage and $5.34 for family coverage.  Premiums for Medicare eligible retirees will be considered every January coincidental with the announcement of the new Medicare rate starting with January 1,2002.  Plan design and retiree rates will be reconsidered if Congress passes a new law affording prescription coverage to Medicare recipients.

 

            The Contractor will make available, at cost, medical insurance for Fermilab foreign visitors and their families from countries without applicable insurance programs.  Visitors are defined as persons who come to the Laboratory to work on research experiments or to participate in other types of collaboration; or whose visits are coordinated by Fermilab personnel.  Visitors who can obtain applicable medical insurance from their own countries will not be eligible for coverage.  Participants will be charged the current full premium equivalent of the coverage.  Coverage for medical and major medical insurance will be at the same benefit level as established for active employees.

 

E.        Long Term Disability

 

            The Contractor provides all Laboratory employees with Long-Term Disability insurance. .277 of one percent (1%) of the employee's salary is deducted to partially defray the cost. The Contractor pays the balance.  Benefits are payable after one hundred eighty (180) days of disability at an amount equal to sixty percent (60%) of basic salary subject to a maximum benefit of ten thousand dollars ($10,000) per month.  Benefits payable will be reduced by any amount the employee receives from Worker's Compensation and/or Family Social Security.  If disability occurs before age sixty (60), benefits will continue until the employee recovers or attains age sixty-five (65), whichever shall occur first.  If disability occurs after age sixty (60), but prior to attaining age 68, benefits will continue for five (5) years after disability or until age seventy (70), whichever occurs first.  For employees disabled within two years of their seventieth birthday or at a later age, benefits will continue for two years.

 

            For employees who were disabled before March 1, 1989, the insurance carrier will pay to the employee's TIAA-CREF Retirement Contract(s) the same amount of money that the employee and the Contractor were contributing at the time the disability commenced.  For employees who became disabled after March 1, 1989, the insurance carrier will contribute an amount equal to URA's contribution at the time of disability.

 

F.         Travel Insurance

 

            The Contractor provides travel accident insurance to all Laboratory employees and certain others, when they are traveling on Contractor business, at no cost to the traveler.  All employees have coverage equal to five times the basic annual salary up to a maximum of $300,000.

 

G.        Dependent Life Insurance

 

            The Contractor makes available on a voluntary basis dependent life insurance.  Participation in one of the Supplemental Group Life Benefit Plans is a requirement for eligibility.  Employees pay the full cost of premium.  Coverage (Option A or B) provided is:  Spouse, five thousand dollars ($5,000) or ten thousand dollars ($10,000). Children, two thousand dollars ($2,000) or four thousand dollars ($4,000).  Children under fifteen (15) days of age are not covered; between fifteen (15) days and under six (6) months, the insurance in effect is two hundred dollars ($200) or four hundred dollars ($400).

 

H.        Group Dental

 

            The Contractor provides group dental insurance through a combined indemnity and dental maintenance organization program.  There is a $6.56 per month charge to the employees who elect single coverage under the Preferred Provider Option part of the program.  There is a $7.30 per month charge to the employees who elect single coverage under the dental maintenance organization part of the program.  Employees electing family coverage are charged one half of the monthly dependent rate in effect for family coverage. The premium is to be reviewed annually for adjustment based on plan experience.

 

I.                     Worker's Compensation

 

1.         The Contractor shall submit to the Contracting Officer for approval all new workers' compensation policies.  The Contractor shall provide copies to the Contracting Officer of all renewal policies for workers' compensation.

 

2.         The Contractor shall have a claims management program that establishes specific guidelines and practices, and ensures:

 

                        a.         The Contractor shall perform a regular review of its workers' compensation program and provide the Contracting Officer with annual status reports on all claims reserves over $25,000, as well as reserves established on all new claims.

 

                        b.         The Contractor shall conduct an annual review of all claims over $25,000 in reserves and claims over 2 years old, regardless of reserve amount.

 

                        c.         The Contractor shall establish reserves on all open claims at the end of each policy year but prior to the valuation of claims for the interim premium adjustment report to determine their appropriateness.

 

                        d.         That all of the Contractor’s programs contain provisions for reviewing and conducting medical cost containment programs, such as managed care networks where allowed by statutes.

 

                        e.         The Contractor conducts a sample claims review of open and closed claims during the first 3 years of a contract period for both active and canceled policies with existing claims activity and files a written report to the Contracting Officer.

 

            3.         The Contractor shall review and verify the accuracy of interim premium adjustment reports and make payment of adjusted premium or request a credit from carrier.

 

4.                  The Contractor shall ensure that workers' compensation insurance policies contain the following provisions:

 

a.                  A provision that excludes any claim on the part of the insurance company to be subrogated on payment of loss or otherwise to any claim against the United States.

 

b.                  A provision that, in the event of cancellation or non-renewal by the insurance company, 60 days advance notice shall be given to the Contractor and the Contracting Officer.

 

c.                  A provision limiting the insurance company's right of inspection of the Contractor's records and premises as necessary to comply with DOE's security requirements.

 

d.                  A provision for the right of assignment of the policy to DOE, with payment of all return premiums, premium refunds dividends, or other moneys due or to become due, to be payable to the Government.

 

e.                  Employer's liability coverage, except in cases where the Contractor has an acceptable self-insurance program.

 

f.                    Workers' compensation and employer's liability coverage for its employees in those states that allow statutory immunity for certain types of employers (e.g., nonprofit educational institutions).

 

g.                  A Voluntary Compensation Endorsement (if not automatically provided) that allows for coverage of employees or volunteers who would not otherwise be covered for accidental injury (e.g., employees participating in an athletic event or volunteers at the work site).  An additional amendment is necessary to extend Voluntary Compensation Coverage to occupational disease.

 

5.                  Workers' compensation loss income benefit payments, when supplemented by other programs (such as salary continuation, short-term disability) are to be administered so that total benefit payments from all sources shall not exceed 100 percent of the employee's net pay.

 

6.                  Workers' compensation settlement claims up to $100,000 may be settled without DOE Contracting Officer approval.  Claims settlement proposals above that amount need to be submitted to the Contracting Officer for approval.

 

7.                  The Contractor must accept a valid workers' compensation claim for work-related illness or injury as compensable when such a valid claim is initially presented.  Furthermore, to the extent permitted by State law, a contractor must consider a claim for state workers' compensation as valid if the claim is based on an occupational illness or injury that is so diagnosed in accordance with any applicable criteria under State law by physicians associated with the site occupational medicine clinics or the current and former worker medical monitoring programs sponsored by DOE.  In addition, if the Secretary directs a contractor not to contest a state workers' compensation claim or award in accordance with section 3661 of the Energy Employees Occupational Illness Compensation Program Act of 2000, the contractor must comply with this direction to the extent permitted by law

 

            8.         The contractor must provide the Contracting Officer with copies of all letters sent to State workers' compensation officials accepting or denying a compensation claim for work-related illness or injury. 

 

J.         Post-Contractor Employee Benefit Costs

 

Upon contract termination or expiration, the Contractor shall submit to the Contracting Officer for approval a proposed plan for settling post-contract employee benefit liabilities in accordance with generally accepted accounting principles.

 

 

VI.       DOE CONTRACTOR PENSION PLANS

 

 

A.        Plan Conditions

 

Universities Research Association will provide employee retirement benefits under the terms and conditions of:

           

            1.         The provisions of the TIAA-CREF Retirement Plan authorized by URA's Board of Trustees, on September 21, and 22, 1978.

 

            2.         The TIAA-CREF Supplemental Retirement Plan authorized by URA's Board of Trustees, on July 11, 1975, as amended in August 1983.

 

The Contractor will provide the Contracting Officer with two copies of the Retirement Plan and Supplemental Retirement Plan.  DOE approval is required prior to implementing any changes to these pension plans.  Any modifications to these plans will be forwarded to the Contracting Officer within thirty days of their authorization by URA's Board of Trustees.

 

B.        Contributions

 

Contributions to the retirement plan for participants shall be made at a rate of 10% of base salary.

 

C.        Eligibility

 

Those eligible for participation are all paid officers and all employees who work for the Contractor 1,000 hours or more per year who have reached the age of twenty one years.  Such persons become eligible for participation upon completion of two years of employment except that immediate prior service with a URA member institution or a federally funded research and development center will count in meeting the waiting period for eligibility.

 

D.        Discontinuance, Modification or Amendments

 

While it is expected that the retirement plan and supplemental retirement plan will continue indefinitely, URA's Board of Trustees reserves the right to modify or discontinue the plan at any time.  The Board may also delegate any of its powers and duties with respect to the plan, or amendments, to one or more officers or other employees of the Contractor.  Any such delegations shall be set forth in writing.  Any discontinuance or modification of the plan shall not adversely affect the benefits accrued by participants prior to the date of discontinuance or modifications.  Costs resulting from any amendments to the plan are unallowable hereunder unless such amendments are approved by the Contracting Officer provided, however, that costs resulting from amendments which do not provide discretionary plan subsidies and are required to comply with the Employee Retirement Income Security Act of 1974 as amended (ERISA) or to obtain continuing Internal Revenue Service approval of the plan are allowable.  A discontinuation of the plan shall cause reimbursement to DOE with interest of any funds appropriated and received but unallocated.

 

E.        Repurchase

 

In the event a participant in this plan leaves the employ of Universities Research Association, Inc., for reasons other than retirement or disability and requests that TIAA-CREF repurchase his or her annuity, the Contractor will approve such repurchase, provided it meets the conditions under which TIAA-CREF will repurchase annuities.  If these conditions are satisfied, the total contribution accumulated in the annuities (less any repurchase charge) will be payable by TIAA-CREF to the participant.

 

The conditions under which TIAA-CREF will repurchase the annuities of a participant, and the applicable charges for repurchase are set forth in the booklet, Your Retirement Annuity.  Amounts paid to the participant upon repurchase shall be in full satisfaction of the participant's rights to retirement and/or death benefits.

 

F.                 Termination of Operations

 

Should operations at the Contractor be terminated, DOE and the Contractor shall establish an effective date for spin off or plan termination and no further work will occur under the prime contract.  The Contractor agrees that no further contributions shall be made after this established date.

 

G.        Terminating Plans

 

The Contractor agrees that it shall not terminate any pension plan (commingled or site-specific) without notifying the Department at least 60 days prior to the scheduled date of plan termination.

 

 

H.        Annual Reports

 

The Contractor shall submit to the Contracting Officer the following reports annually:

 

            Copies of IRS Forms 5500 with Schedules for each DOE-funded pension plan

 

            Forms 5300

 

Copies of all forms in the 5300 series submitted to the IRS that document the establishment, amendment, termination, spin-off, or merger of a plan.

 

 

VII.      RISK MANAGEMENT AND LIABILITY PROGRAMS

 

 

A.        Requirements

 

For the management and operation of the Laboratory, the Contractor shall:

 

1.         Maintain commercial insurance or self-insurance programs required by law, regulation, and the requirements of the contract.

 

2.         Not purchase insurance to cover liability for nuclear incidents without DOE authorization.

 

3.         Demonstrate that insurance program costs comply with cost limitations and exclusions at FAR 31.205-19, Insurance and Indemnification, as supplemented by DEAR 970.5228-1, Insurance-Litigation and Claims, and will ensure that the liability insurance program is being conducted in the Government's best interest and at reasonable cost.

 

4.         Provide current copies of all insurance policies or insurance arrangements, throughout the contract term, to the Contracting Officer.

 

B.        Terminating Operations

 

The Contractor agrees that if operations terminate, responsible officials shall ensure:

 

1.         That the Government's interests are protected through proper recording of cancellation credits due to policy terminations and/or experience rating.

 

2.         Continuing policy administration requirements are identified and provided by the terminated Contractor, another DOE Contractor, or a DOE Operations/Field Office.

 

3.         Insurance policies are transferred to DOE through an "assignment" of policies after all claims are closed.

 

C.        Successor Contractor or Insurance Policy Cancellation

 

The Contractor agrees that unless otherwise determined by DOE to be in the Government's best interests, the Contractor shall ensure:

 

            1.         that insurance policies of a former DOE Contractor are assumed by the successor.

 

2.         the contractor protects the government’s interests through proper recording of all cancellation credits, due to policy terminations and/or experience rating.

 

3.                  that a successor contractor assumes any continued claims administration relating to the former DOE contractor operation.

 

            4.         that all incurred but not reported claims, at the time of termination, will be reported to and handled by the appropriate insurer.

 

            5.         that any successor contractors obtain the written approval from the Contracting Officer before any change in program direction; and insurance coverage replacement is implemented.

 

D.        Reports

 

            1.         The Contractor shall each year of the contract provide the Contracting Officer with annual experience reports for each type of liability (i.e., automobile and commercial general liability) listing the following for each category:

 

                        a.         The amount paid for each claim

                        b.         The amount reserved for each claim

                        c.         The direct expenses related to each claim

                        d.         A summary for the year showing total number of claims

                        e.         A total amount for claims paid

                        f.          A total amount reserved for claims

                        g.         The total amount of direct expenses

 

            2.         When applicable, separately identify total policy expenses e.g., commissions, premiums, and costs for claims servicing) and major claims during the year including those expected to become major claims (e.g., those valued at $100,000 or greater).

 

            3.         Additional claim and financial experience data may be requested from the policyholder on a case by case basis.

 

 

VIII.     CONTRACTOR WORKPLACE SUBSTANCE ABUSE PROGRAMS

 

 

A.        Requirements

 

The Contractor shall maintain a program that complies with the requirements of 10 CFR Part 707, Workplace Substance Abuse Programs at DOE Sites.  The Contractor's program is documented in Section 30 of the Personnel Policy Guide.  Positions that fall within the scope of other agency requirements shall, in addition, comply with the substance abuse program requirements of those agencies.  These include the Department of Transportation (DOT), the Nuclear Regulatory Commission (NRC), and the Department of Defense (DOD).

 

B.        Reports

 

The Contractor shall submit reports and maintain records as required in 10 CFR Part 707 and DOE Order 350.1.

 

 

IX.       EMPLOYEE PROGRAMS

           

 

A.        Recreation and Morale Benefits

 

            Recreation and morale benefits shall be in accordance with FAR 31.205-13.

 

B.        Health

 

            In addition to pre-employment physical examinations, the Contractor gives other examinations on a scheduled basis for certain job classifications and upon request. Employees are consulted regarding their health upon their request and contact with private physicians is maintained in Worker's Compensation cases as well as other long-term illnesses.  Preventative health programs are scheduled as well as first aid tendered.

 

C.        Employee Assistance Program

 

The Contractor shall (1) maintain a program of preventive services, education, short-term counseling, coordination with and referrals to outside agencies, and follow-up upon return to work that conforms to the requirements of 10 CFR 707.6, Employee Assistance, Education, and Training; (2) submit for approval by the Contracting Officer any changes to the employee assistance program implementation plan; (3) prepare and submit information to DOE concerning Employee Assistance Program services as requested by the Contracting Officer.  Such reports shall not include individual identifiers.

 

D.        Day Care

 

            The Contractor is authorized to operate a child care center, by subcontract or otherwise; however, the Contractor shall not reimburse the salaries of the teachers/caregivers with funds provided under this contract.  Furthermore, the costs for labor, materials, and supplies expended for the operation of the childcare center (e.g., teachers, caregivers, instructional materials, and equipment) shall be fully recovered from the participants.  The contractor shall provide adequate property damage liability and bodily injury liability insurance naming DOE as additional named insured in order to hold the Contractor and DOE harmless for all liability arising out of operation of the center.  The Contractor shall use its best efforts to add the Department of Energy, at no additional premium or cost, as an additional named insured under the Contractor's existing liability policy covering the Fermilab Day Care Center.  Should the insurer be unwilling to add DOE at no additional cost, the Contractor shall notify the Contracting Officer.  The Contracting Officer shall in turn advise the Contractor on whether or not DOE desires such coverage.  If desired by DOE, the costs are allowable under the contract.

 

The Contractor agrees that its day care benefit programs will meet both DOE and Fermilab employee needs and their respective management objectives based on valid day care needs.

 

In addition, the Contractor agrees that support costs associated with the operation of a day care facility for exclusive use of DOE, contractor, and subcontractor employees and users may include reasonable costs for communication of the program to employees and all or a portion of such expense items as utilities and maintenance, as well as food and medical services or supplies already used in support of site operations and which are readily available to additionally support the facility.  Such use shall be approved by the Contracting Officer in advance. 

 

The Contractor and day care (program) provider organizations must ensure that the provider organizations operate, maintain, and upgrade any proposed workplace day care facility in compliance with applicable Federal, State, and local policies, regulations, and requirements for environment, safety, and health.

           

E.        Patent and Copyright Awards

 

            An employee may be awarded a payment in accordance with the following schedule of activities and participants in the project:

 

                                                            NUMBER         OF            INVENTORS

 

                        Event                           1               2              3        4 or More

 

                        Record of Invention

                        (hardware or software)      $100          $  75       $  50        $  25

 

                        Award of Patent                 $500         $350       $250        $150

 

                        Software Registration        $250         $175       $125        $  75

 

F.         Service Awards

 

            Service awards not to exceed an average cost of one hundred dollars ($100) may be given to employees who complete ten, twenty, twenty five, thirty and thirty-five years of service.  Employees who retire prior to award ceremonies are eligible to receive the respective award.

 

G.        Other Awards

 

            An employee may be awarded a payment for an idea submitted and adopted by the Contractor in accordance with policies established by the Contractor and approved by the Contracting Officer.  The determination of awards requires the Laboratory Director's approval within the policies on awards approved by the Contracting Officer.  A report of each such award will be submitted to the Contracting Officer.

 

 

X.                 PROGRAM INVOLVING EMPLOYEE ABSENCE

FROM THE WORK PLACE

 

 

A.        Vacations

 

1.         Nonexempt Employees

 

                        a.         Full-time nonexempt employees hired prior to January 1, 1997, will earn vacation credit based on the following:

 

                                    Nonexempt employees may be allowed to earn vacation from the date of employment until the fifth anniversary of employment at a monthly accrual rate of ten (10) hours.  From the fifth to the seventh anniversary, the monthly accrual will be increased to thirteen and one-third (13-1/3) hours. Commencing with the seventh anniversary, and every two (2) year anniversary thereafter up to and including the twenty-fifth, the monthly accrual rate will be increased by two-thirds (2/3) of an hour.

 

                        b.         Full-Time nonexempt employees hired on or after January 1, 1997, will earn vacation credit based on the following:

 

                                                Length of Service                  Rate of Accrual

 

                                                Less than 5 years                  1-1/4 working days for

                                                                                                each month of service

 

                                                5 but less than 10 years       1-1/2 working days for

                                                                                                each month of service

 

                                                10 but less than 15 years     1-3/4 working days for

                                                                                                each month of service

 

                                                15 or more years                   2 working days for

                                                                                                each month of service

 

                        c.         If an employee's anniversary of employment falls on or before the fifteenth of a month, that month's accrual shall be determined as though the anniversary was the first of that month.  If an employee's anniversary of employment falls after the fifteenth of a month, that month's accrual shall be determined as though the anniversary date were the first of the following month.

 

                        d.         For the purposes of this section, if an employee is laid off and is subsequently re-employed within eighteen (18) months or if an employee enters and returns from military service, his/her employment will be considered to be continuous during the period of such layoff or military service, except that vacation shall not accrue during the period of absence.

 

e.                  Vacation may be paid at an employee's basic hourly rate.

 

                        f.          When an employee is terminated, he/she may be paid for any unused vacation earned up to and including the month of termination at the same rate as if he/she had used it.

 

                        g.         Accrued vacation may not exceed more than twenty-four (24) times the employee's current monthly accrual rate.

                       

                        h.         Nonexempt employees, hired before January 1, 1997, and who are promoted to an exempt position will accrue vacation at the same rate as exempt employees hired prior to January 1, 1997.

 

            2.         Exempt Employees

 

                        a.         Exempt employees hired prior to January 1, 1997, will earn vacation credit based on the following schedule:

 

                                    Exempt employees may earn two (2) working days vacation credit for each calendar month during which the employee is in pay status at least eleven (11) working days.

 

                        b.         Exempt employees hired on or after January 1, 1997, will earn vacation credit based on the following schedule:

 

                                                Length of Service                  Rate of Accrual

 

                                                Less than 5 years                  1-1/2 working days for

                                                                                                Each month of service

 

 

                                                5 but less than 10 years       1-3/4 working days for

                                                                                                each month of service

 

                                                10 or more years                   2 working days for

                                                                                                each month of service

 

                        c.         A newly hired employee shall not be considered as having any accrued vacation credits until he/she has completed three (3) months of continuous service with the Contractor.  Upon completion of such three (3) months' service, the employee shall be credited with vacation which otherwise would have been earned during that period.

 

                        d.         Accrued vacation may not exceed more than 24 times the employee's current monthly accrual rate.

 

                        e.         Vacation pay for each day of vacation used shall be on the basis of the employee's basic monthly rate.

 

                        f.          Upon termination, an employee may be paid for any unused vacation credits earned up to and including the month of termination.

 

                        g.         Under certain compelling circumstances, the Contracting Officer may approve in writing, on a case-by-case basis, exceptions to the vacation schedule for employees hired on or after January 1, 1997.

 

            3.         Vacation Accrual During Leave of Absence

 

                        In cases of authorized leave of absence, time spent on leave of absences may, within the Contractor's discretion, be counted toward vacation credit.

 

            4.         New hires on or after January 1, 1997, with immediate prior service at a URA member institution or an FFRDC, if approved by the Contracting Officer, will be eligible for the applicable vacation accrual schedule under the schedules used for employees hired prior to January 1, 1997.

 

B.        Holidays

 

            Ten (10) days may be recognized as holidays each calendar year by the Contractor, including the following:

 

 

 

                        New Year's Day                     Friday After Thanksgiving Day

                        Martin Luther King Day         One-half day before Christmas Day

                        Memorial Day                                    Christmas Day

                        Independence Day                One -half day before New Year's Day

                        Labor Day                              Floater

                        Thanksgiving Day

 

            If any of the above days fall on a Saturday or Sunday, either the preceding Friday or the following Monday may be recognized as the holiday.  The Contractor may determine the manner of use of the floater holiday and may vary it from year to year; e.g., it might be used as two half-day holidays.

 

C.        Holiday Pay

 

            For exempt employees, no deduction will be made from salary for reason of absence on any day recognized as a holiday.  Nonexempt employees may be paid for each day recognized by the Contractor as a holiday an amount not exceeding eight (8) times the regular hourly rate (such rate to include shift premium if applicable) whether or not the holiday falls outside of a scheduled work week.

 

            In addition to the eight (8) hours pay specified above, nonexempt employees may be paid two (2) times their regular hourly rate (double time) for all hours worked on a day recognized by the Contractor as a holiday.  They may be paid double time for any work on a day of national holiday observance preceding or following (as the case may be) the day recognized by the Contractor as the holiday; such payment will be made only in cases where they will not have performed work on the recognized holiday.  The twenty-four (24) hour period commencing with an employee's scheduled starting time on the calendar day recognized as a holiday may be deemed to be the holiday for purposes of computing holiday pay.

 

D.        Disability and Sick Leave

 

            1.         Occupational Disability Leave

 

                        a.         Nonexempt Employees

 

                                    A nonexempt employee who is unable to perform work for the Contractor due to an occupational illness or accidental injury arising out of and in the course of employment for the Contractor may be entitled to benefits under Worker's Compensation or Occupational Diseases Statutes.  The

 

                                    Contractor may pay occupational disability leave as a supplement to any payments under these laws so that the total received will equal what the employee would have received at his/her basic hourly rate for scheduled work time aggregating not in excess of seven hundred twenty (720) hours for each disability.

 

                        b.         Exempt Employees

 

                                    An exempt employee who is unable to perform work for the Contractor due to an occupational illness or accidental injury arising out of and in the course of his/her employment for the Contractor may be entitled to benefits under Worker's Compensation or Occupational Diseases Statutes. The Contractor may pay occupational disability leave as a supplement to any payments under these laws so that the total received will equal what the employee would normally have received, for such period of time as in the judgment of the Contractor is deemed advisable.  No individual shall be granted occupational disability leave in excess of six (6) calendar months in any one (1) calendar year or for any one period of disability, or in excess of the total time actually worked prior to the time at which the leave is granted. 

 

            2.         Sick Leave

 

                        a.         Nonexempt Employees

 

                                    (1)       A nonexempt employee who is unable to perform work for the Contractor due to illness or injury arising otherwise than out of and in the course of employment for the Contractor may be granted sick leave as herein provided.

 

                                    (2)       An employee may receive pay at his/her basic hourly rate, beginning with the first day of each absence from scheduled hours of work for scheduled work time aggregating not in excess of the number of hours of sick leave which the employee has accrued.

 

                                    (3)       The number of hours of sick leave which a nonexempt employee has accrued at any one time shall be computed as follows:

 

                                                An employee shall accrue sick leave at the rate of one hundred forty-four (144) hours per anniversary year, to a total not to exceed

 

                                                one hundred thirty (130) working days. Accrual will be on a monthly basis for each calendar month during which the employee is in pay status at least eleven (11) working days.

 

                        b.         Exempt Employees

 

                                    An exempt employee who is unable to perform work for the Contractor due to illness or injury arising otherwise than out of and in the course of his/her employment for the Contractor may be granted sick leave. All exempt employees shall accrue sick leave at a rate of 1.5 days per month to a maximum of one hundred thirty days (130).

 

 

            3.         Release for Health Reasons

 

                        An employee who is terminated for health reasons may be paid at his/her basic hourly rate for all hours accumulated in his/her sick leave account as of the date of the release.

 

            4.         Short Term Disability

 

Short-term disability will be available to employees after a waiting period of 7 working days. The benefit under short-term disability will be 50% of pay after all sick leave and vacation accrual are exhausted. The use of sick leave or vacation satisfies the 7-day waiting period. The maximum benefit will be 26 weeks to provide a bridge to long term disability.

 

E.        Other Excused Absences

 

            1.         Civic Responsibility and Other Absence

 

                        Excused absence with pay at their regular rate to a maximum of normally scheduled work hours for employees may be permitted for the following reasons:

 

                        a.         Absence caused by being called to serve as a juror or witness in any of the various courts of law.  Employee must turn in his/her fee, but is entitled to retain any allowance given him/her for transportation costs.

 

                        b.         Absence caused by preinduction processing required prior to entering the Armed Forces or by physical examination requirements of reserve programs.

 

                        c.         Absence from work by employees acting in the capacity of union stewards and committeemen for time spent in handling grievances, negotiating with the Contractor and serving on labor-management (Laboratory) committees.

 

                        d.         Absence caused by employee voting in public office elections. Work schedules will be changed as needed to ensure that work either starts at least two hours after the polls open or ends at least two hours before the polls close.

 

            2.         Military Leave

 

                        An employee may be granted leave with pay not to exceed fifteen (15) calendar days per year for active training duty in the Armed Forces Reserve or the Coast Guard Reserve of the United States, The National Guard, or the Air National Guard.  Pay allowed for such leave will not exceed the difference between the employee's base pay for the period of leave and military pay (base and longevity pay, but excluding special pay and allowances) for the same period.

 

                        Employees who are members of military reserve organizations, including the National Guard and Coast Guard who are ordered to active duty for an emergency duty call-up by the President or the State Governor may be paid the difference between the employee's rate of pay based on a 40 hour week and basic military pay, excluding special allowances or premium pay such as subsistence, travel and uniform allowance for a period of up to180 calendar days. 

 

            3.         Leave for Professional Advancement

 

                        It is the policy of the Contractor to assist employees in their professional advancement.  A leave of absence may be granted, by the Director, to a professional staff member when, in the opinion of the Directorate, such a leave would be to the advantage of the Contractor.  For the purpose of the application of these leave of absence practices, a professional staff member is typically defined to be a scientist, an engineer or a person with major administrative responsibility. The types of leave which may be granted include assignment to other institutions for teaching, for research and for otherwise furthering professional capability.  Such leaves may coincide with a fellowship or other similar award.

 

                        Salary payment may be made to a professional staff member during a leave of absence only if such payment is recommended by the Director and approved by the URA Board of Trustees.  Leaves with pay will normally be limited so as not to exceed one month for each year of service (not including periods of leave.)  In evaluating a recommendation for leave with pay, any stipend, grant or other income which the employee may receive or derive from others in connection with the leave will be taken into account.  Vacation and sick leave credits will be accorded to an employee on leave of absence in proportion to the fraction of normal salary that is being paid by the Contractor.  The employee will be permitted to continue participation in Contractor group insurance plans.

 

                        An employee granted a leave of absence will be required to sign a statement indicating an intention to return to the Contractor as an employee for a period at least equal to the leave granted.  In the statement, the employee will acknowledge recognition of the Contractor's right to require compensation for the leave if the employee does not return.  There will normally be no more than seven staff members on leaves of absence with pay concurrently.

 

            4.         Personal Absences

 

                        a.         Nonexempt

 

                                    Excused absences with pay for nonexempt employees in addition to those made under other provisions of this Appendix A may be granted by the Laboratory Director or his/her designee to meet unusual personal situations, provided a record is maintained reflecting the nature of such personal situations in each instance.

 

                        b.         Exempt

 

                                    Excused absences without loss of pay may be granted to exempt employees for reasons deemed sufficient by the Laboratory Director or his/her designee, including but not limited to the reasons indicated above in this section.

 

            5.         Funeral Leave

 

                        Employees suffering a death in their immediate family (defined as spouse, child, parent or "foster" parent, brother, sister, parent-in-law, grandparent, grandchild) shall, if necessary, be excused from work to make arrangements for the funeral and to attend the funeral.  Pay will be at the employee's regular hourly rate for any work time lost solely because of such activities, to a maximum of three (3) days and not to exceed eight (8) hours per day.

 

            6.         Time Off Due to Public Emergency

 

                        Employees may be granted time off with pay during a public emergency which effectively prevents their attendance at work or the continuance of work in a normal and orderly manner.  A public emergency includes a natural disaster (such as fire, flood, earthquake), a manmade disaster (such as a demonstration, riot or act of sabotage), or inclement weather.  Authorization for time off with pay for such emergencies will be made by the Director of the Laboratory or authorized designee with notice to the Contracting Officer.

 

            7.         Parental Leave

 

                        Employees may be granted up to eight hours (no more than four in any one day) of unpaid leave during any 12 -month period to attend or participate in school related events for his or her child.

 

F.         Leave Without Pay

 

                        The Contractor may grant leave without pay for up to two (2) years, to an employee, without loss of employee status, for such time and upon such terms and conditions as the Contractor shall determine; provided, however, that in no case shall the vacation accrual of an employee on leave without pay for more than fifteen (15) consecutive calendar days in any one (1) calendar year be based upon time spent on such leave in excess of fifteen (15) calendar days.

 

G.        Part-time Leave of Absence

 

                        A full-time employee who is granted a part-time leave of absence may be deemed a full-time employee for all purposes of this Appendix A, except that during such leave:

 

                        1.         Contributions pursuant to the Retirement Plan are determined on the basis of the adjusted salary of such employee. 

 

                        2.         The employee may be required to make contributions to basic group life insurance coverage proportional to the amount by which his/her salary as a full-time employee exceeds his/her adjusted salary.

 

                        3.         The employee may be required to make contributions for disability income insurance coverage.

 

                        4.         The rate at which the employee accrues a vacation credit is reduced on a pro-rata basis to the nearest one-half (1/2) day per month, and such accrual is recalculated and adjusted at the end of the leave of absence to correct for inaccuracies resulting from the rounding off which occurred each month during the leave of absence.

 

                        5.         The employee accrues sick leave credit on a pro-rata basis [one and one-half (1-1/2)] days sick leave credit per month being considered the accrual of a full-time employee) calculated monthly to the nearest half (1/2) day, and such accrual is recalculated and adjusted at the end of the leave of absence to correct for inaccuracies resulting from the rounding off which occurred each month during the leave of absence.

 

 

XI.               EMPLOYEE TRAINING, EDUCATION

AND DEVELOPMENT

 

 

Training costs are subject to the requirements and limitations of FAR 31.205-44 and Clause H.4.(d).  To the extent, consistent with these requirements:

 

A.        The Contractor may reimburse any employee who successfully completes a formal course and/or a course leading to an earned academic degree which the Contractor approves as pertinent to the employee's Contractor career or to work of the Contractor or who with Contractor approval, successfully completes a vocational training course approved by the Contractor for the cost of tuition, fees, text books, and like expenses.  The Contractor will not duplicate payments for educational expenses supported by sources outside the contract including but not limited to Veteran's benefits payable for education, scholarships, and tuition discounts.  The Contractor may prepay allowable education expenses when deemed appropriate.

 

B.        The Contractor will limit payment of benefits under this section to those instances where the research or the course of instruction or training may reasonably be expected to benefit the Contractor either directly or indirectly through the employee's advancement in his/her profession or skill.  Where appropriate, the Contractor will ascertain that proper scholastic standings are maintained before authorizing such research, instruction, or training to continue from term to term.

 

C.        Employee training programs may be conducted to increase employee skills and efficiency; to develop techniques for solution of operating programs; and to prepare participating employees for increased responsibility.  Training programs may include but are not limited to orientation, supervisory training, executive development, employee development, professional organizations and seminars.

 

D.        The Contractor may pay appropriate fees to Contractor employees who conduct classes for Contractor employees.  Such fees will not exceed fifty dollars ($50) per class hour of instruction.  Payment is limited to courses provided under Contractor training programs and requiring outside preparation and not considered a normal part of the recipient's job assignment.

           

E.        The Contractor may sponsor undergraduate and graduate fellowship programs for students representing underutilized groups in technical employment fields normally sought through the Contractor's recruiting program.  Students in the program will be employed by the Contractor during the summer and will be on leave of absence during the school year.  A fellowship will be paid for the leave of absence, which will supplement any university financial support, if, any, up to a predetermined maximum amount.  On an annual basis, the Contractor will submit for Contracting Officer approval, a request for approval of expenditures stating the total estimated cost, projected number of participants and the maximum level for individual fellowships during the year.  Increases in total cost, number of participants or maximum level for individual fellowships must have Contracting Officer approval.

 

            Students will be admitted to the universities by the respective institution's usual policies and procedures.  Each fellowship student will have a technical staff member from the Contractor assigned as an advisor to aid the student's academic progress, as appropriate.

 

 

XII.      EMPLOYMENT AND RECRUITMENT EXPENSES

 

 

A.        Employment and Recruiting Expenses

 

Employment and recruitment expenses will be in accordance with FAR 31.205-34, Recruitment Costs. 

 

The Contractor may pay a sign-on bonus to recruit employees with critical skills or an annual retention bonus to retain employees with critical skills or whose expertise is critical to the completion of a specific project.

 

B.        Physics Program Appointments

 

The Contractor may offer temporary guest appointments to Physicists for work as required for the Contractor in the High Energy Physics Program.  Appointees may be reimbursed as follows:

 

            1.         Appointee may elect home institution fringe benefit coverage.

 

            2.         Payment of costs for transportation of appointee and family in accordance with FAR 31.205-46 supplemented by DEAR 970.3102-05-46 and Clause H.4.(c).

 

            3.         If an appointee retains, with the approval of the Contractor, his/her established residence void of rental or other income, he/she may be reimbursed for the cost of equivalent and reasonable housing for himself/herself and family for the term of the appointment.

 

            4.         If an appointee rents or obtains other income from his/her established residence, he/she may be reimbursed for the cost of the difference in equivalent and reasonable housing for himself/herself and family for the term of the appointment.

 

            In the event the appointee becomes a regular employee, he/she will be entitled to reimbursement for relocation expenses in accordance with FAR 31.205-35, Relocation Costs.

 

 

XIII.     TRAVEL

 

 

Travel expenditures shall be reimbursed in accordance with FAR 31.205-46, supplemented by DEAR 970.3102-05-46, Clause H.4.(c), and Clause H.20. Relocation expenditures shall be reimbursed in accordance with FAR 31.205-35, Relocation Costs. 

 

 

XIV.     SPECIAL PROFESSIONAL SERVICES

 

 

A.                 The Contractor may pay fees or honoraria to persons, other than full-time employees of

            another DOE Contractor, who deliver lectures, conduct scientific or engineering courses or symposia, or perform similar professional services for the Contractor.  The fee per day of services shall not exceed four hundred dollars ($400) and shall be based upon the individual's professional standing, the value of his/her services, the degree of inconvenience to the individual, amount of time devoted to the service, and other relevant factors.  In the case of persons from nearby institutions or organizations, the fee may include an amount in lieu of reasonable expenses.  In other cases, travel expenses, in accordance with FAR 31.205-46 supplemented by DEAR 970-3102-05-46 and Clause H.4.(c), may be reimbursed separately from the fee.

 

B.        The Contractor may pay a fee of two hundred fifty ($250) per day to each member of the Fermilab Physics Advisory Committee for work done in connection with their committee assignment.  The person serving as chairperson of the committee may be paid at a rate of three hundred fifty ($350) per day.  Excepted from this provision are those committee members who are full time employees of another DOE Contractor.  Travel expenses will be reimbursed in accordance with FAR 31.205-46 supplemented by DEAR 970-3102-05-46 and Clause H.4.(c). in addition to the fee.

 

 

 

 

 

EXHIBIT I

 

DEFINITIONS

 

 

Director - the administrative head of the Laboratory, including any person duly authorized and serving as Acting Director.

 

Employee - a person employed by the Laboratory to carry out work under Contract No. DE-AC02-76CH03000.

 

Exempt Employee - an employee exempt from the overtime provisions of the Fair Labor Standards Act.

 

Nonexempt Employee - an employee subject to the overtime provisions of the Fair Labor Standards Act.

 

Full-time Employee - an employee who is regularly scheduled to work at least forty (40) hours per week.

 

Part-time Employee - an employee who is regularly scheduled to work less than forty (40) hours per week.

 

Regular Employee - an employee whose employment is intended to extend beyond six (6) months but is not limited to a stated period of time and who has not been given a continuing appointment.

 

Term Employee - a regular employee whose employment is for a stated period of time greater than six months.

 

Temporary Employee - any employee whose employment is intended not to extend beyond six (6) months.

 

Work Day (of an employee) - the period of twenty-four (24) hours, commencing with the time the employee commences work.

 

Work Week (of an employee) - the period extending from Sunday midnight to the following Sunday midnight.

 

Promotional Increase - A salary increase granted upon assignment to a position with increased responsibility and normally higher salary grade and salary rate.

 

Adjustment Increase - A special salary increase that is granted to correct salary inequities due to internal and/or external factors.

 

Merit Increase - A salary increase that is granted to an employee based upon performance in the current position to which the employee is assigned and is based upon performance during the most current performance appraisal period.