Ertan and Susan Eren - Page 3

                                                   -3-                                                     
            Petitioner's Contracts with FBO                                                                
                  During the late 1970's and early 1980's, petitioner rendered                             
            architectural services to FBO on an "as needed" basis under a labor                            
            hour contract for various FBO projects in Brazil.  He signed his                               
            first personal service contract (PSC) with FBO in 1983, and has                                
            been performing services solely for FBO since that time.  His                                  
            subsequent contracts with FBO have been renewed, modified, or                                  
            renegotiated on an annual basis.                                                               
                  On March 6, 1984, petitioner and FBO signed a contract                                   
            designating petitioner as the project manager2 with respect to the                             
            improvements and repairs at the U.S. Embassy in Ankara, Turkey, and                            
            other U.S. foreign service posts.  Petitioner worked in Turkey for                             
            a number of years under modified versions of this PSC.   In July                               
            1988, he was transferred from Turkey to Bogota.                                                
                  Petitioner's contract with FBO, as in effect during 1989,                                
            states in part: "The Project Manager will inspect construction,                                
            improvements and/or repairs at project sites and will be directly                              
            responsible to FBO in the performance of his duties under this                                 
            contract." The contract provides that petitioner will "Perform                                 
            appropriate functions and obligations in accordance with procedures                            
            or other directives issued by the Contracting Officer or his                                   
            designee."                                                                                     

            2            The term "project manager" and "project director" are                             
            used interchangeably herein.                                                                   





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