COMPARISON CHART OF LOCAL HIRE FULL-TIME STAFF AT OVERSEAS POSTS

(Please note: this comparison chart covers most staff at post. However, it does not cover U.S. Direct Hire staff, staff working for Peace Corps
under the auspices of an institutional contract or on detail and it does not cover staff who are under short term contracts, e.g., trainers for PreService Training.)
FSN DIRECT HIRE

DEFINITIONS

GOVERNING
AUTHORITIES AND
REGULATIONS

ESTABLISHING
THE POSITION

HCR PSC

A Foreign Service National (FSN) is a

direct hire employee of the U.S.
Government hired in the host country.
The Cashier is always an FSN. If not a
USDH, the Administrative Officer is
also always a direct hire, FSN or UShire. Financial Assistants, who have
Procurement Authority are also FSNs.

A Host Country Resident (HCR)

Personal Services Contractor (PSC) is
hired to fulfill a service contract. For
PC purposes, resident is defined as
dwelling in a country permanently or
continuously, regardless of
citizenship. Most non-supervisory
positions at post are HCR PSCs. PSCs
are now considered employees, except
for any law administered by OPM.
Local labor law, Foreign Service Act of Local labor law, Peace Corps Act, MS
1980, Manual Section (MS) 602
743, Federal Acquisition Regulations
Foreign Service National Personnel
(FAR). The Embassy and the DOS
Administration, 3 Foreign Affairs
have no authority over Peace Corps
Manual (FAM) 7000, Local Employees HCR PSCs. Regional approval may be
Position Classification Handbook
needed.
(LEPCH-3FAH). The embassy/
Department of State (DOS) have
authority over FSN personnel
management. For posts without
embassies, a remote embassy will
assist posts in FSN personnel
management.
New position needs regional approval Statement of Work (SOW) is written
and National Security Decision
by post management as is obligation
Directive (NSDD) 38 approval by
of funds. SOWs are not classified as
DOS. Position Description (PD)
PDs. Local Compensation Plans
written by post and classified by
(LCPs) are used as guides and grades
Embassy via CAJE/ M Class.
are determined for comparability.

US AND THIRD-COUNTRY PSC

Contractors that are not residents of

the host country. PSCs are now
considered employees, except for any
law administered by OPM.

Peace Corps Act, MS 744, FAR, Local

Labor Law. Regional approval may be
needed.

SOW written by post or region and

commitment of funds by PC at the
post for obligation by the Office of
Acquisitions and Contract
Management (OACM) in
headquarters, unless OACM grants
authority to post.

FILLING THE
POSITION

Selection process (vacancy

announcement, etc.) mostly handled
by embassy. For posts without an
embassy the process is handled by the
Country Director or designate. Remote
embassies may participate. Medical
clearance and background
investigation required.

COMPENSATION

Grade of position delineates salary

range allowable under Local
Compensation Plan (LCP). Embassy
responsible for setting salary within
that range usually at first step of
grade. For posts without embassies a
remote embassy will assist with
compensation setting. Final Regional
approval may be required.
Time and attendance submitted
through embassy. Biweekly pay is
administered by one of the Financial
Service Centers (FSC).

PAY ADMINISTRATION

LEAVE

Local Labor Law and the post LCP

delineate types of leave and amounts.

COMPENSATORY TIME

Post LCP defines the compensatory

time benefit, if any.

Post advertises and competes in

accordance with the Peace Corps
Manual & OACM guidance. DMO as
warranted contracting officer at post,
or Financial Assistant, if so warranted,
officially selects contractor.
Background investigation is requiredcheck with embassy security
personnel.
DMO as contracting officer is
responsible official for determining
fair and reasonable compensation.
FSN direct hire equivalency should be
attempted, using the LCP as guidance,
but contract amount is
administratively determined by PC.
Final Regional approval may be
required.
Payment for services of HCR PSC by
HRMS. One pay period in advance,
Administrative Officer certifies
payment and submits any changes in
pay to HRMS. Bi-weekly paid from
HQ by check or EFT. For periods of
performance shorter than 6 months,
post initiates payment through OGAP.
As determined by contract and local
labor law. Wherever possible, leave
plan should mirror that for FSN direct
hires.
Country Directors may implement a
written policy. HCR PSCs may not
exceed 24 hours of compensatory time,
as outlined in MS 743.

PC advertises and competes in

accordance with the Peace Corps
Manual. Regional and/or post
management make staff selection but
Contracting Officer at PC/HQ signs
contract for contractors hired from the
U.S. Background investigation
required.
Party responsible for compensation
setting varies. The PC Office of
Acquisition and Contract Management
negotiates salaries for contractors
hired from headquarters using set
parameters for appropriate per day
amounts. Final Regional approval
may be required.
Contractor submits voucher to
Administrative Officer who certifies
that services were received and
forwards to PC/HQ via Office of
Global Accounts Payable (OGAP) for
payment.
As determined by contract. Usually
four hours per period of annual leave
and four hours per period of sick leave
per year.
Country Directors may implement a
written policy. HCR PSCs may not
exceed 24 hours of compensatory time,
as outlined in MS 744.

BENEFITS

SUPERVISION

PERFORMANCE
EVALUATION

AWARDS

INCREASES IN BASIC
COMPENSATION

Usually there is Host Country Social

Insurance (HCSI). Supplemental
benefits may be provided under LCP
which should be in compliance with
local labor law and prevailing practice.

Post should attempt to provide

equivalent benefits between FSN
direct hire and HCR PSC staff, by
using LCP as guide..

As determined by contract. Note:

Non-HCR PSCs are not eligible for
DOS medical program, education
allowance, educational travel,
Household Effects shipments, or
pouch/APO privileges.
Supervisor must be a Direct Hire (DH) May not supervise staff, unless
May not supervise staff, unless
employee. FSN may supervise others. previously authorized to do so and
previously authorized to do so and
must be expressly stated in the SOW.
must be expressly stated in the SOW.
May coordinate other PSCs.
May coordinate other PSCs.
FSN evaluation system through
As provided in contract - internal to
As determined by contract. Template
embassy. Four -tier system
PC. Template performance evaluation performance evaluation provided in
unsatisfactory through outstanding
provided in MS 743. HCR PSC staff
MS 744. Short-term contractors are
levels.
are evaluated by CD, or designated
evaluated by CD, or designated direct
direct hire or authorized PSC staff
hire staff member, at the end of the
member, with input of the
contract period. Evaluations of
coordinator, if any, during and at the
medical contractors are also done
end of the contract period.
annually by OMS, as outlined in OMS
Technical Guideline 112.
Embassy awards program. If there is
May not be included in Embassy
May not be included in Embassy
no Embassy award program
awards program for direct hire FSNs. awards program for direct hire FSNs.
submissions are sent to PC/HQ.
CDs are encouraged to implement a
Amount of award must be added to
Awards are usually granted only after local awards program for HCR PSCs.
total amount of contract and contract
fifty two weeks of the previous one.
Amount of award must be added to
amended.
total amount of contract and contract
amended.
1. Increase due to change in LCP. 2.
Option years with increases. Contract Option years with increases possible.
Yearly within-grade increase (PSI)
modifications with increases may be
Basis for increases in each option year
based on fully satisfactory
made due to extraordinary
must be negotiated and written into
performance, until an employee
circumstances, following guidance in
the basic contract at the beginning of
maxes out at the highest step in
MS 743. Increases in basic
the initial award of the contract.
their grade. 3. Promotion to a new
compensation should mirror the types
position, or, due to accretion of duties of increases available for FSN direct
(rare) as approved by the Region. If
hire staff wherever possible. Cost of
position is deemed to have changed
living adjustments may be given
considerably, new position requires re- before the end of the contract year, if
competition.
previously authorized.

TENURE

Unlimited (no five year rule.) Could

be hired as a temporary or part time,
but this is unusual.

HOUSING

Refer to LCP. An allowance might be

provided, but not the direct payment
to a landlord by PC.

LOCATION OF RECORDS

Embassy maintains all official

employee records.

Duration of contract. Options

possible. Maximum allowable
contract length is 5 years. Contractor
may be rehired under a new contract.
PSCs may be terminated at any time
with 15 days notice, provided this
does not violate local law. Termination
may have budget implication of
severance pay, according to LCP.
Confer with OACM and GC prior to
termination action.
Not provided.

Duration of contract. Option years

possible. Maximum allowable
contract length is 5 years. Contractor
may be rehired under a new contract.
PSCs may be terminated at any time
with 15 days notice.

Maintained at post by Administrative

Officer.

Maintained by OACM in PC/HQ.

Refer to contract.

LIMITATIONS

May be delegated procurement

authority by OACM after becoming
Certified Procurement Officer. Can be
delegated limited budget authority by
the CD, as well supervisory functions
over other staff. Cannot be Acting CD
in other management capacities.

May be delegated any Contracting

Officer, or Sub-Cashier, Property
Officer, Receiving Officer or
Supervisory authorization, functions,
only when specifically authorized by
HQ and properly trained and
warranted. The PSDC May:

May be delegated any Contracting

Officer, or Sub-Cashier, Property
Officer, Receiving Officer or
Supervisory authorization, functions,
only when specifically authorized by
HQ and properly trained and
warranted. The PSDC May:

Perform these functions, in which case

present contract SOW must be
amended to include authorities, or if
new PSC, authorities must be expressly
stated in SOW.

Perform these functions, in which case

present contract SOW must be
amended to include authorities, or if
new PSC, authorities must be expressly
stated in SOW.

Perform managerial or supervisory

work, to make final decisions on
substantive policies, or to otherwise
function in the agency chain of
command (e. g., to approve financial
transactions, personnel actions, etc.),
specifically authorized to do so in the
SOW.

Perform managerial or supervisory

work, to make final decisions on
substantive policies, or to otherwise
function in the agency chain of
command (e. g., to approve financial
transactions, personnel actions, etc.),
specifically authorized to do so in the
SOW.

Occupy a position requiring U.S.

Presidential appointment.

Occupy a position requiring U.S.

Presidential appointment..