2702.1 It is the policy of the District government to utilize personnel exchange agreements sparingly to assign private sector employees to District agencies to meet highly specialized needs for professional services on a temporary basis.2702.2 Nothing in this chapter shall be interpreted to mean that in every personnel exchange agreement between a District government agency and a private sector organization the District government agency shall be the party paying any or all of the costs of the professional services to be provided by the private sector employee.2702.3 A personnel exchange agreement to assign a private sector employee to a District government agency covered by this chapter shall contain the terms and conditions for the payment or the reimbursement of salary, fringe benefits and, if appropriate, general and administrative expenses.2702.4 When a District government agency is reimbursing a private sector organization, the private sector organization shall not receive compensation in a manner to earn a profit from the assignment of the private sector employee to the District government agency.2702.5 A private sector employee assigned to a District government agency shall not receive compensation and fringe benefits greater than those he or she would have received in the absence of the agreement assigning the individual to the District government agency.2702.6 Any reimbursement by a District government agency entering into a personnel exchange agreement shall be limited to the cost of documented salary, applicable fringe benefits including payroll taxes, social security, unemployment insurance, worker's compensation insurance, health insurance, pensions, Federal Insurance Compensation Act payments, and, if appropriate, general and administrative expenses.2702.7 Prior to entering into a personnel exchange agreement and commencing the assignment of a private sector employee to a District government agency pursuant to this chapter, the agency head shall prepare a written determination and findings explaining the reasons the required professional services cannot be secured through standard recruitment practices or procurement procedures.2702.8 The written determination and findings pursuant to section 2702.7 of this section shall include but not be limited to the following:1. (a) A detailed justification explaining the need for the professional services;

(b) The qualification requirements for the professional services;

(c) A detailed statement and documentation demonstrating the specific outreach and recruitment efforts undertaken by the agency to secure the professional services needed through standard recruitment practices;

(d) A statement signed by the Chief Procurement Officer (or his or her designee) certifying that the agency has demonstrated that it cannot utilize procurement procedures to secure the professional services needed, and stating the basis for that conclusion; and

(e) A statement signed by the agency head to attest that the agency has demonstrated that it cannot secure the required professional services through standard recruitment practices or procurement procedures, and stating the basis for that conclusion.

2702.9 The written determination and findings and supporting documentation, and the signed procurement certification described in section 2702.8 (d) of this section shall be presented to the Director of the D.C. Department of Human Resources (DCHR) or independent personnel authority, as applicable. The Director of the DCHR or independent personnel authority shall certify, in writing, that:

(a) The agency has exhausted every effort to secure the professional services through standard recruitment practices; and

(b) The Chief Procurement Officer (or his or her designee) has certified that the agency has exhausted every effort to secure the professional services through standard procurement procedures.

2702.10 Notwithstanding the provisions of section 2702.9 of this section, the Chief Technology Officer shall certify all determinations and findings in the case of the Office of the Chief Technology Officer.

2702.11 The Director of the DCHR and each independent personnel authority, as appropriate, shall develop and publish appropriate procedures for the preparation and submission of written determinations and findings.

2702.12 When the District government agency is reimbursing the private sector organization, the private sector organization shall prepare a written reimbursement agreement for the cost of the salary, fringe benefits, and any general and administrative expenses to be reimbursed. The reimbursement agreement prepared by the private sector organization shall include all of the following:

(a) A detailed explanation of each category of costs and the actual amounts to be reimbursed by the District government agency;

1. (b) A certification of the accuracy of each category of costs and the actual amounts to be reimbursed by the District government agency; and
2. (c) A certification that any general and administrative expenses presented for reimbursement are actual costs, the reasons for incurring such general and administrative expenses and their justification, that those costs are allowable and reasonable, and that they were calculated using the standards and principles specified in section 2702.13 of this section.2702.13 Any general and administrative expenses to be reimbursed by a District government agency for off-site employees shall be:- (a) Calculated using the standards in the Federal Acquisition Regulations (FAR) System, Title 48 of the Code of Federal Regulations, in particular, the standards and contract costs principles and procedures to calculate indirect costs in 48 CFR 31.203 (2000); and
3. (b) Based on and be consistent with the results of audited off-site overhead rates for a period of three (3) years prior to submission of the reimbursement agreement by the private sector organization.2702.14 When general and administrative costs are to be reimbursed by the District government agency, the results of audited off-site overhead rates as described in section 2702.13 of this section shall be presented to the District government agency as supporting documentation to the reimbursement agreement.2702.15 Prior to signing a personnel exchange agreement, the District government agency shall concur with all the terms and conditions of the assignment, particularly the terms of a reimbursement agreement prepared by the private sector organization under section 2702.12 of this section, when applicable, and sign the reimbursement agreement.2702.16 The agency head shall submit the signed personnel exchange agreement and any supporting documentation, including the certified determination and findings in the case of the Office of the Chief Technology Officer, and the signed reimbursement agreement when applicable, to the Director of the DCHR or independent personnel authority. The Director of the DCHR or independent personnel authority shall review the personnel exchange agreement and any supporting documentation, and sign the personnel exchange agreement to concur in the assignment.2702.17 The District government agency shall be encouraged and shall reserve the right to audit the reimbursable costs in a personnel exchange agreement under the circumstances and methods the District government agency deems appropriate and require the private sector organization to reimburse the District

government agency for any unauthorized fees paid.

2702.18 A former District government employee working for a private sector organization shall be prohibited, for a period of two (2) years after his or her separation from District government employment, from participating in a personnel exchange agreement between the District government and the employing private sector organization.

SOURCE: Final Rulemaking published at 49 DCR 1272 (February 15, 2002); as Final Rulemaking published at 49 DCR 4871 (May 24, 2002); as amended by Final Rulemaking published at 57 DCR 5745, 5747 (July 2, 2010).