96-32001. Federal Acquisition Regulation; FASA and the Walsh-Healey Public Contracts Act  

  • [Federal Register Volume 61, Number 246 (Friday, December 20, 1996)]
    [Rules and Regulations]
    [Pages 67409-67411]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-32001]
    
    
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    DEPARTMENT OF DEFENSE
    48 CFR Parts 1, 9, 14, 19, 22, 33, and 52
    
    [FAC 90-43, FAR Case 96-601, Item I]
    RIN 9000-AH31
    
    
    Federal Acquisition Regulation; FASA and the Walsh-Healey Public 
    Contracts Act
    
    AGENCIES: Department of Defense (DOD), General Services Administration 
    (GSA), and National Aeronautics and Space Administration (NASA).
    
    ACTION: Interim rule with request for comment.
    
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    SUMMARY: The Civilian Agency Acquisition Council and the Defense 
    Acquisition Regulations Council have agreed to an interim rule amending 
    the Federal Acquisition Regulation (FAR) to eliminate the requirement 
    that covered contractors under the Walsh-Healey Public Contracts Act 
    must be either the manufacturer of or a regular dealer in the 
    materials, supplies, articles, or equipment to be manufactured or used 
    in the performance of the contract. Section 7201 of the Federal 
    Acquisition Streamlining Act of 1994 (Public Law 103-355) amended the 
    Walsh-Healey Public Contracts Act to repeal the ``manufacturer'' or 
    ``regular dealer'' requirement. This regulatory action was not subject 
    to Office of Management and Budget review under Executive Order 12866, 
    dated September 30, 1993, and is not a major rule under 5 U.S.C. 804.
    
    DATES: Effective Date: December 20, 1996.
        Comment Date: Comments should be submitted to the FAR Secretariat 
    at the address shown below on or before February 18, 1997 to be 
    considered in the formulation of a final rule.
    
    ADDRESSES: Interested parties should submit written comments to: 
    General Services Administration, FAR Secretariat (MVRS), 18th & F 
    Streets, NW, Room 4035, Attn: Ms. Beverly Fayson, Washington, DC 20405. 
    Please cite FAC 90-43, FAR case 96-601, in all correspondence related 
    to this case.
    
    FOR FURTHER INFORMATION CONTACT: Mr. Jack O'Neill at (202) 501-3856 in 
    reference to this FAR case. For general information, contact the FAR 
    Secretariat, Room 4035, GS Building, Washington, DC 20405 (202) 501-
    4755. Please cite FAC 90-43, FAR case 96-601.
    
    SUPPLEMENTARY INFORMATION:
    
    A. Background
    
        On August 5, 1996 (61 FR 40714), the Department of Labor (DOL) 
    published a final rule implementing the changes
    
    [[Page 67410]]
    
    made by the Federal Acquisition Streamlining Act of 1994 (FASA) to the 
    Walsh-Healey Public Contracts Act (PCA). The FAR is being revised at 
    this time, consistent with the DOL final rule.
    
    B. Regulatory Flexibility Act
    
        The interim rule is not expected to have a significant economic 
    impact on a substantial number of small entities within the meaning of 
    the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the rule 
    merely amends the FAR to conform to revisions to DOL regulations 
    reflecting repeal of the ``manufacturer'' and ``regular dealer'' 
    requirements under the PCA. DOL has determined that the revisions to 
    its regulations will not have a significant economic impact on a 
    substantial number of small entities. Accordingly, these conforming FAR 
    amendments are not expected to have a significant economic impact. An 
    Initial Regulatory Flexibility Analysis has, therefore, not been 
    performed. Comments are invited from small businesses and other 
    interested parties. Comments from small entities concerning the 
    affected FAR parts also will be considered in accordance with 5 U.S.C. 
    610. Such comments must be submitted separately and cite 5 U.S.C 601, 
    et seq. (FAR case 96-601), in correspondence.
    
    C. Paperwork Reduction Act
    
        The Paperwork Reduction Act does not apply because the changes to 
    the FAR do not impose recordkeeping or information collection 
    requirements, or collections of information from offerors, contractors, 
    or members of the public which require the approval of the Office of 
    Management and Budget under 44 U.S.C. 3501, et seq. 
    
    D. Determination to Issue an Interim Rule
    
        A determination has been made under the authority of the Secretary 
    of Defense (DOD), the Administrator of General Services (GSA), and the 
    Administrator of the National Aeronautics and Space Administration 
    (NASA) that urgent and compelling reasons exist to promulgate this 
    interim rule without prior opportunity for public comment, because 
    implementation of this change is required by Section 7201 of the 
    Federal Acquisition Streamlining Act of 1994 and Department of Labor 
    regulations. However, pursuant to Public Law 98-577 and FAR 1.501, 
    public comments received in response to this interim rule will be 
    considered in the formulation of the final rule.
    
    List of Subjects in 48 CFR Parts 1, 9, 14, 19, 22, 33, and 52
    
        Government procurement.
    
        Dated: December 11, 1996.
    Edward C. Loeb,
    Director, Federal Acquisition Policy Division.
        Therefore, 48 CFR Parts 1, 9, 14, 19, 22, 33, and 52 are amended as 
    set forth below:
        1. The authority citation for 48 CFR Parts 1, 9, 14, 19, 22, 33, 
    and 52 continues to read as follows:
    
        Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
    U.S.C. 2473(c).
    
    PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM
    
    
    1.106  [Amended]
    
        2. The table in section 1.106 is amended under the ``FAR Segment'' 
    and ``OMB Control Number'' columns by removing the entry for ``22.606-
    2(b)''.
    
    PART 9--CONTRACTOR QUALIFICATIONS
    
    
    9.103  [Amended]
    
        3. Section 9.103 paragraph (b) is amended in the third sentence by 
    removing ``and Determinations of Eligibility''.
    
    
    9.104-1  [Amended]
    
        4. Section 9.104-1 is amended in paragraphs (a), (e), and (f) by 
    revising the citation ``9.104-3(b)'' to read ``9.104-3(a)''; and in 
    paragraph (c) by revising the citation ``9.104-3(c)'' to read ``9.104-
    3(b)''.
    
    
    9.104-3  [Amended]
    
        5. Section 9.104-3 is amended by removing paragraph (a), and by 
    redesignating paragraphs (b) through (e) as (a) through (d), 
    respectively.
    
    
    9.702  [Amended]
    
        6. Section 9.702 is amended by removing paragraph (d), and by 
    redesignating paragraphs (e) and (f) as (d) and (e), respectively.
    
    PART 14--SEALED BIDDING
    
    
    14.205-1  [Amended]
    
        7. Section 14.205-1(d)(2) is amended by removing ``(the 
    manufacturer or regular dealer)''.
    
    PART 19--SMALL BUSINESS PROGRAMS
    
    
    19.001  [Amended]
    
        8. Section 19.001 is amended by removing the definition for 
    ``Determination of eligibility''.
    
    
    19.102  [Amended]
    
        9. Section 19.102(f)(1) is amended by removing the fifth sentence, 
    and in the last sentence by removing ``regular dealer'' and inserting 
    ``nonmanufacturer'' in its place.
    
    Subpart 19.6--Certificates of Competency
    
        10. The subpart heading for Subpart 19.6 is revised to read as set 
    forth above.
    
    
    19.601  [Amended]
    
        11. Section 19.601 is amended by removing paragraph (c) and by 
    redesignating paragraph (d) as (c).
    
    
    19.803  [Amended]
    
        12. Section 19.803(a)(3) is amended by removing the last sentence.
    
    PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS
    
    
    22.601  [Reserved]
    
        13. Section 22.601 is removed and reserved.
        14. Section 22.602 is revised to read as follows:
    
    
    22.602  Statutory requirements.
    
        Except for the exemptions at 22.604, all contracts subject to the 
    Walsh-Healey Public Contracts Act (the Act) (41 U.S.C. 35-45) and 
    entered into by any executive department, independent establishment, or 
    other agency or instrumentality of the United States, or by the 
    District of Columbia, or by any corporation (all the stock of which is 
    beneficially owned by the United States) for the manufacture or 
    furnishing of materials, supplies, articles, and equipment (referred to 
    in this subpart as supplies) in any amount exceeding $10,000, shall 
    include or incorporate by reference the stipulations required by the 
    Act pertaining to such matters as minimum wages, maximum hours, child 
    labor, convict labor, and safe and sanitary working conditions.
    
    
    22.604-2  [Amended]
    
        15. Section 22.604-2 is amended by removing paragraph (b) and by 
    redesignating paragraph (c) as (b).
    
    
    22.606  [Reserved]
    
    
    22.606-1 and 22.606-2  [Removed]
    
        16. Section 22.606 and subsections 22.606-1 and 22.606-2 are 
    removed and 22.606 is reserved.
    
    
    22.607  [Reserved]
    
        17. Section 22.607 is removed and reserved.
        18. Section 22.608 is revised to read as follows:
    
    [[Page 67411]]
    
    22.608  Procedures.
    
        (a) Award. When a contract subject to the Act is awarded, the 
    contracting officer, in accordance with regulations or instructions 
    issued by the Secretary of Labor and individual agency procedures, 
    shall furnish to the contractor DOL publication WH-1313, Notice to 
    Employees Working on Government Contracts.
        (b) Breach of stipulation. In the event of a violation of a 
    stipulation required under the Act, the contracting officer shall, in 
    accordance with agency procedures, notify the appropriate regional 
    office of the DOL, Wage and Hour Division (see 22.609), and furnish any 
    information available.
    
    
    22.608-1 through 22.608-6  [Removed]
    
        19. Subsections 22.608-1 through 22.608-6 are removed.
    
    
    22.609  [Amended]
    
        20.-21. Section 22.610 is revised to read as follows:
    
    
    22.610  Contract clause.
    
        The contracting officer shall insert the clause at 52.222-20, 
    Walsh-Healey Public Contracts Act, in solicitations and contracts 
    covered by the Act (see 22.603, 22.604, and 22.605).
    
    PART 33--PROTESTS, DISPUTES, AND APPEALS
    
        22. Section 33.102(a) is amended by revising the last sentence to 
    read as follows:
    
    
    33.102  General.
    
        (a) * * * (See 19.302 for protests of small business status.)
    * * * * *
    
    PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
    
    
    52.219-14  [Amended]
    
        23. Section 52.219-14 is amended by revising the clause date to 
    read ``(DEC 1996)'' and in paragraph (b)(2) by removing ``regular 
    dealer in'' and inserting ``nonmanufacturer of'' in its place.
    
    
    52.222-19  [Reserved]
    
        24. Section 52.222-19 is removed and reserved.
    
    
    52.222-20  [Amended]
    
        25. Section 52.222-20 is amended in the introductory text by 
    revising ``22.610(b)'' to read ``22.610'', by revising the clause date 
    to read ``(DEC 1996)'', and in paragraph (a) by twice removing 
    ``representations and''.
    
    [FR Doc. 96-32001 Filed 12-19-96; 8:45 am]
    BILLING CODE 6820-EP-P
    
    
    

Document Information

Published:
12/20/1996
Department:
Defense Department
Entry Type:
Rule
Action:
Interim rule with request for comment.
Document Number:
96-32001
Pages:
67409-67411 (3 pages)
Docket Numbers:
FAC 90-43, FAR Case 96-601, Item I
RINs:
9000-AH31
PDF File:
96-32001.pdf
CFR: (7)
48 CFR 1
48 CFR 9
48 CFR 14
48 CFR 19
48 CFR 22
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