97-21497. NATIONAL AERONAUTICS AND SPACE ADMINISTRATION  

  • [Federal Register Volume 62, Number 163 (Friday, August 22, 1997)]
    [Rules and Regulations]
    [Pages 44823-44827]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-21497]
    
    
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    DEPARTMENT OF DEFENSE
    
    GENERAL SERVICES ADMINISTRATION
    
    
    NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
    
    48 CFR Parts 22 and 52
    
    [FAC 97-01; FAR Case 94-610; Item XII]
    RIN 9000-AH62
    
    Federal Acquisition Regulation; Executive Order 12933, 
    Nondisplacement of Qualified Workers Under Certain Contracts
    
    AGENCIES: Department of Defense (DoD), General Services Administration 
    (GSA), and National Aeronautics and Space Administration (NASA).
    
    ACTION: Interim rule with request for comments.
    
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    SUMMARY: The Civilian Agency Acquisition Council and the Defense 
    Acquisition Regulations Council have agreed on an interim rule amending 
    the Federal Acquisition Regulation (FAR) to implement Executive Order 
    12933, Nondisplacement of Qualified Workers Under Certain Contracts, 
    signed by the President on October 20, 1994 (59 FR 53559, October 24, 
    1994). The Executive Order requires that workers on certain building 
    service contracts be given the right of first refusal for employment 
    with the successor contractor, if the workers would otherwise lose 
    their jobs as a result of the award of the successor contract. 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: August 22, 1997.
        Applicability: With respect to solicitations and contracts for 
    building service contracts covered by this regulation, the following 
    applies:
        (1) For solicitations issued and contracts awarded on or after the 
    effective date of this rule, include the clause at 52.222-50, 
    Nondisplacement of Qualified Workers, except as provided in paragraph 
    (2)(a) below.
        (2) Include the clause at 52.222-50, Nondisplacement of Qualified 
    Workers, where practicable by--
        (a) Amending solicitations issued, but not awarded, prior to the 
    effective date of the rule; or
        (b) Modifying contracts awarded prior to the effective date of this 
    rule.
        Comment Date: Comments should be submitted to the FAR Secretariat 
    at the address shown below on or before October 21, 1997 to be 
    considered in the formulation of a final rule.
    
    ADDRESSES: Interested parties should submit written comments to: 
    General Services Administration, FAR Secretariat (MVR), 1800 F Street, 
    NW, Room 4035, Attn: Ms. Beverly Fayson, Washington, DC 20405.
        E-Mail comments submitted over the Internet should be addressed to: 
    farcase.94-610@gsa.gov.
        Please cite FAC 97-01, FAR case 94-610 in all correspondence 
    related to this case.
    
    FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS 
    Building, Washington, DC 20405 (202) 501-4755 for information 
    pertaining to status or publication schedules. For clarification of 
    content, contact Mr. Jack O'Neill, Procurement Analyst, at (202) 501-
    3856. Please cite FAC 97-01, FAR case 94-610.
    
    SUPPLEMENTARY INFORMATION:
    
    A. Background
    
        Executive Order 12933 was signed October 20, 1994, by President 
    Clinton and published in the Federal Register on October 24, 1994 (59 
    FR 53559). The purpose and need for the Executive Order are clearly 
    stated in the Executive Order itself:
    
        When a service contract for the maintenance of a public building 
    expires and a follow-on contract is awarded for the same service, 
    the successor contractor typically hires the majority of the 
    predecessor's employees. On occasion, however, a follow-on 
    contractor will hire a new work force, and the predecessor's 
    employees are displaced.
        As a buyer and participant in the marketplace, the Government is 
    concerned about hardships to individuals that may result from the 
    operation of our procurement system. Furthermore, the Government's 
    procurement interests in economy and efficiency benefit from the 
    fact that a carryover work force will minimize disruption to the 
    delivery of services during any period of transition and provide the 
    Government the benefits of an experienced and trained work force 
    rather than one that may not be familiar with the Government 
    facility.
    
        In order to address these concerns, Section 1 of the Executive 
    Order makes the following statement of policy:
    
        It is the policy of the Federal Government that solicitations 
    and building service contracts for public buildings shall include a 
    clause that requires the contractor under a contract that succeeds a 
    contract for performance of similar services at the same public 
    building to offer those employees (other than managerial or 
    supervisory employees) under the predecessor contract whose 
    employment will be terminated as a result of the award of the 
    successor contract, a right of first refusal to employment under the 
    contract in positions for which they are qualified. There shall be 
    no employment openings under the contract until such right
    
    [[Page 44824]]
    
    of first refusal has been provided. Nothing in this order shall be 
    construed to permit a contractor to fail to comply with any 
    provision of any other Executive order or laws of the United States.
    
        The Executive Order requires implementing regulations to be issued 
    by the Secretary of Labor in consultation with the Federal Acquisition 
    Regulatory Council, and that Department of Labor (DoL) regulations and 
    the Federal Acquisition Regulation require inclusion of a contract 
    clause in covered Federal solicitations and contracts. The Executive 
    Order provides that it does not confer any right or benefit enforceable 
    against the United States, but that it is not intended to preclude 
    judicial review of final decisions by the Secretary of Labor in 
    accordance with the Administrative Procedure Act (5 U.S.C. 701, et 
    seq.).
        To obtain public input and assist in the development of these 
    regulations, the DoL invited comment through a notice of proposed 
    rulemaking in the Federal Register on July 18, 1995 (60 FR 36756). The 
    final DoL rule was published in the Federal Register on May 22, 1997 
    (62 FR 28175). This FAR interim rule implements the DoL rule.
        Regarding certification requirements of this interim rule, the 
    certification requirement in paragraph (e) of the clause at 52.222-50 
    is considered identical to the certification requirement in paragraph 
    (n) of the clause at 52.222-41. Therefore, for the purposes of Section 
    29 of the Office of Federal Procurement Policy Act (41 U.S.C. 425), 
    this rule does not impose a new certification requirement.
    
    B. Regulatory Flexibility Act
    
        The General Services Administration, Department of Defense, and 
    National Aeronautics and Space Administration certify that this interim 
    rule will not have a significant economic impact on a substantial 
    number of small entities because the Executive Order mandates a 
    practice that is already followed in most cases. This rule implements 
    the requirements of the Executive Order, as implemented by the DoL in 
    its final rule of May 22, 1997 (62 FR 28175). The DoL certified that 
    its final rule will not have a significant economic impact on a 
    substantial number of small entities. In those cases where the practice 
    was not followed before the Executive Order, the impact would be a 
    result of the Executive Order and the DoL regulation; it would not be a 
    result of the FAR implementation.
    
    C. Paperwork Reduction Act
    
        This interim rule will not impose any additional paperwork burdens 
    beyond the information collection and recordkeeping requirements 
    required under sections 9.6(c), 9.9(b) and 9.11 of the Department of 
    Labor Regulations, 29 CFR Part 9, and approved under DoL Office of 
    Management and Budget Control No. 1215-0190.
    
    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. This action 
    is necessary to implement Executive Order 12933 of October 20, 1994, 
    Nondisplacement of Qualified Workers Under Certain Contracts, and the 
    corresponding Department of Labor regulations that became effective on 
    July 21, 1997. However, pursuant to Public Law 98-577 and FAR 1.501, 
    public comments received in response to this interim rule will be 
    considered in formulating the final rule.
    
    List of Subjects in 48 CFR Parts 22 and 52
    
        Government procurement.
    
        Dated: August 7, 1997.
    Edward C. Loeb,
    Director, Federal Acquisition Policy Division.
    
        Therefore, 48 CFR Parts 22 and 52 are amended as set forth below:
        1. The authority citation for 48 CFR Parts 22 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 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS
    
        2. Subpart 22.12, consisting of sections 22.1200 through 22.1208, 
    is added to read as follows:
    
    Subpart 22.12--Nondisplacement of Qualified Workers Under Certain 
    Contracts
    
    Sec.
    22.1200  Scope of subpart.
    22.1201  Statement of policy.
    22.1202  Definitions.
    22.1203  Applicability.
    22.1203-1  General.
    22.1203-2  Exclusions.
    22.1204  Seniority lists.
    22.1205  Notice to employees.
    22.1206  Complaint procedures.
    22.1207  Withholding of contract payments.
    22.1208  Contract clause.
    
    Subpart 22.12--Nondisplacement of Qualified Workers Under Certain 
    Contracts
    
    
    22.1200  Scope of subpart.
    
        This subpart prescribes policies and procedures for implementing 
    Executive Order 12933 of October 20, 1994, Nondisplacement of Qualified 
    Workers Under Certain Contracts, and Department of Labor regulations at 
    29 CFR part 9.
    
    
    22.1201  Statement of policy.
    
        It is the policy of the Federal Government that contracts for 
    building services at public buildings shall require the contractor 
    under a successor contract for performance of similar services at the 
    same public building, to offer those employees (other than managerial 
    or supervisory employees) under the predecessor contract, whose 
    employment will be terminated as a result of the award of the successor 
    contract, a right of first refusal to employment under the contract in 
    positions for which they are qualified. Executive Order 12933 states 
    that there shall be no employment openings under the contract until 
    such right of first refusal has been provided.
    
    
    22.1202  Definitions.
    
        Building service contract, as used in this subpart, means a 
    contract for recurring services related to the maintenance of a public 
    building. Recurring services are services that are required to be 
    performed regularly or periodically throughout the course of a 
    contract, and throughout the course of the succeeding or follow-on 
    contract(s), at one or more of the same public buildings. Executive 
    Order 12933 lists examples of building service contracts as including, 
    but not limited to, contracts for the recurring provision of custodial 
    or janitorial services; window washing; laundry; food services; guard 
    or other protective services; landscaping and groundskeeping services; 
    and inspection, maintenance, and repair of fixed equipment such as 
    elevators, air conditioning, and heating systems. Building service 
    contracts do not include--
        (1) Contracts that provide maintenance services only on a non-
    recurring or irregular basis. For example, a contract to provide 
    servicing of fixed equipment once a year, or to mulch a garden on a 
    one-time or annual basis, is a non-recurring maintenance contract that 
    is not covered by this subpart;
        (2) Contracts for day-care services in a Federal office building; 
    or
        (3) Concessions for sales of goods or services other than food 
    services or laundry services.
    
    [[Page 44825]]
    
        Public building, as used in this subpart, means any building owned 
    by the United States that is generally suitable for office or storage 
    space or both for the use of one or more Federal agencies or mixed 
    ownership corporations, its grounds, approaches, and appurtenances.
        (1) Public buildings do not include any building on the public 
    domain. The public domain includes only (i) those public lands owned by 
    the United States and administered by the Department of the Interior, 
    Bureau of Land Management, and (ii) the National Forest System 
    administered by the Department of Agriculture, U.S. Forest Service. The 
    public domain does not include Federal buildings, such as office 
    buildings in cities or towns, that are occupied by the Bureau of Land 
    Management or U.S. Forest Service where such buildings are not on lands 
    administered by those agencies.
        (2) Buildings on the following are not public buildings:
        (i) Properties of the United States in foreign countries;
        (ii) Native American and Native Eskimo properties held in trust by 
    the United States;
        (iii) Lands used in connection with Federal programs for 
    agricultural, recreational, and conservation purposes, including 
    research in connection therewith;
        (iv) Lands used in connection with river, harbor, flood control, 
    reclamation, or power projects; or for chemical manufacturing or 
    development projects; or for nuclear production, research, or 
    development projects;
        (v) Land used in connection with housing and residential projects;
        (vi) Properties of the United States Postal Service;
        (vii) Military installations (including any fort, camp, post, naval 
    training station, airfield, proving ground, military supply depot, 
    military school, or any similar facility of the Department of Defense, 
    but not including the Pentagon);
        (viii) Installations of the National Aeronautics and Space 
    Administration, except regular office buildings; and
        (ix) Department of Veterans Affairs installations used for hospital 
    or domiciliary purposes.
        (3) Buildings leased to the Government are not public buildings 
    unless the building is leased pursuant to a lease-purchase contract.
        Service employee, as used in this subpart, means any person engaged 
    in the performance of recurring building services other than a person 
    in a bona fide executive, administrative, or professional capacity, as 
    those terms are defined in 29 CFR part 541, and shall include all such 
    persons regardless of any contractual relationship that may be alleged 
    to exist between a contractor and such person.
    
    
    22.1203  Applicability.
    
    
    22.1203-1  General.
    
        (a) This subpart applies to building service contracts where the 
    contract is entered into by the Government in an amount equal to or 
    greater than the simplified acquisition threshold and the contract 
    succeeds a contract for similar work at one or more of the same public 
    buildings.
        (b)(1) Except as provided in paragraph (b)(2) of this subsection, a 
    contract that includes a requirement for recurring building services is 
    subject to this subpart even if the contract also contains other non-
    covered services or non-service requirements, such as construction or 
    supplies, and even if the contract is not subject to the McNamara-
    O'Hara Service Contract Act, 41 U.S.C. 351, et seq. However, the 
    requirements of this subpart apply only to the building services 
    portion of the contract, and only to those public buildings for which 
    services were provided under a predecessor contract.
        (2) This subpart does not apply to building services that are only 
    incidental to a contract for another purpose, such as incidental 
    maintenance under a contract to operate a day-care center. Building 
    service requirements will not be considered incidental, and, therefore, 
    will be subject to this subpart where (i) the contract contains 
    specific requirements for a substantial amount of building services or 
    it is ascertainable that a substantial amount of building services will 
    be necessary to the performance of the contract (the word 
    ``substantial'' relates to the type and quantity of building services 
    to be performed and not merely to the total value of such work, whether 
    in absolute dollars or cost percentages as compared to the total value 
    of the contract); and (ii) the building services work is physically or 
    functionally separate, and as a practical matter is capable of being 
    performed on a segregated basis, from the other work called for by the 
    contract. Building services performed on a building being leased to the 
    Government pursuant to a lease-purchase contract are not covered unless 
    the services are being performed under a contract directly with the 
    Government.
    
    
    22.1203-2  Exclusions.
    
        (a) This subpart does not apply to--
        (1) Contracts under the simplified acquisition threshold;
        (2) Contracts for commodities or services produced or provided by 
    the blind or severely handicapped, awarded pursuant to the Javits-
    Wagner-O'Day Act, 41 U.S.C. 46-48a, and any future enacted law creating 
    an employment preference for some group of workers under building 
    service contracts;
        (3) Guard, elevator operator, messenger, or custodial services 
    provided to the Government under contracts with sheltered workshops 
    employing the severely handicapped as outlined in the Edgar Amendment, 
    section 505 of the Treasury, Postal Services and General Government 
    Appropriations Act, 1995, Public Law 103-329; or
        (4) Agreements for vending facilities operated by the blind, 
    entered into under the preference provisions of the Randolph-Sheppard 
    Act, 20 U.S.C. 107.
        (b) A successor contractor is not required to offer a right of 
    first refusal for employment when a majority of its employees, who will 
    perform the particular service under the contract, will work both at 
    the public building and at other locations under contracts not subject 
    to Executive Order 12933. Examples include, but are not limited to, 
    pest control or trash removal services where the employees periodically 
    visit various Government and non-Government sites, and make service 
    calls to repair equipment at various Government and non-Government 
    buildings. This exclusion does not apply (i) where the service 
    employees' work on non-covered contracts is not performed as a part of 
    the same job as their work on the Federal contract in question, or 
    where they separately apply for work on the non-Federal contracts; or 
    (ii) where the employees are deployed in a manner that is designed to 
    avoid the purposes of Executive Order 12933. In making this 
    determination, all the facts and circumstances are examined, including 
    particularly the manner in which the predecessor contractor deployed 
    its work force to perform the services, the manner in which the work 
    force is typically deployed to perform such services, and the manner in 
    which the contract is structured.
    
    
    22.1204  Seniority lists.
    
        (a) Not less than 60 days before completion of its contract, the 
    predecessor contractor must furnish the contracting officer with a 
    certified list of the names of all service employees engaged in the 
    performance of building services, working for the contractor at the 
    Federal facility at the time the list is submitted, together with their 
    anniversary dates of employment. The
    
    [[Page 44826]]
    
    contracting officer in turn shall provide the list to the successor 
    contractor and, if requested, to employees of the predecessor 
    contractor or their representatives.
        (b) The list provided pursuant to paragraph (a) of this section 
    satisfies the requirements of paragraph (n) of the clause at 52.222-41, 
    Service Contract Act of 1965, as Amended.
    
    
    22.1205  Notice to employees.
    
        (a) Where the successor contract is a contract subject to this 
    subpart, the contracting officer will provide written notice to service 
    employees of the predecessor contractor, who are engaged in building 
    services, of their possible right to an offer of employment. Such 
    notice either may be posted in a conspicuous place at the work site or 
    may be delivered to the employees individually.
        (b) Contracting officers may use either the following suggested 
    notice format or another format with the same information.
    
    Notice to Building Service Contract Employees
    
        The contract for [type of service] services currently performed 
    by [predecessor contractor] has been awarded to a new contractor. 
    [Successor contractor] will begin performance on [date successor 
    contract begins].
        As a condition of the new contract [successor contractor] is 
    required to offer employment to the employees of [predecessor 
    contractor] working at [the contract work site or work sites] except 
    in the following situations:
         Managerial or supervisory employees on the current 
    contract are not entitled to an offer of employment.
         [Successor contractor] may reduce the size of the 
    current work force. Therefore, only a portion of the existing work 
    force may receive employment offers. However, [successor contractor] 
    must offer employment to the employees of [predecessor contractor] 
    if any vacancies occur in the first 3 months of the new contract.
         [Successor contractor] may employ a current employee on 
    the new contract before offering employment to [predecessor 
    contractor's] employees only if the current employee has worked for 
    [successor contractor] for at least 3 months immediately preceding 
    the commencement of the new contract and would face layoff or 
    discharge if not employed under the new contract.
         Where [successor contractor] has reason to believe, 
    based on credible information from a knowledgeable source, that an 
    employee's performance has been unsuitable on the current contract, 
    the employee is not entitled to employment with the new contractor.
        If you are offered employment on the new contract, you will have 
    at least 10 days to accept the offer.
        If you are an employee of [predecessor contractor] and believe 
    that you are entitled to an offer of employment with [successor 
    contractor], but have not received an offer, you may file a 
    complaint with [contracting officer or representative], the 
    contracting officer handling this contract at: [address and 
    telephone number of contracting officer]. If the contracting officer 
    is unable to resolve your complaint, the contracting officer will 
    forward a report to the U.S. Department of Labor, Wage and Hour 
    Division. You also may file your complaint directly with [address of 
    the nearest District Office of the Wage and Hour Division].
        If you have any questions about your right to employment on the 
    new contract, contact: [Name, address, and telephone number of the 
    contracting officer.]
    
    
    22.1206  Complaint procedures.
    
        (a) Any employee of the predecessor contractor, who believes that 
    he or she was not offered employment by the successor contractor as 
    required by this subpart, may file a complaint with the contracting 
    officer.
        (b) Upon receipt of the complaint, the contracting officer shall 
    provide information to the employee(s) and the successor contractor 
    about their rights and responsibilities under this subpart. If the 
    matter is not resolved through such actions, the contracting officer 
    shall, within 30 days from receipt of the complaint, obtain statements 
    of the positions of the parties and forward the complaint and 
    statements, together with a summary of the issues and any relevant 
    facts known to the contracting officer, to the nearest District Office 
    of the Wage and Hour Division, Employment Standards Administration, 
    U.S. Department of Labor, with copies to the contractor and the 
    complaining employee.
        (c) If the contracting officer has not forwarded the complaint to 
    the Wage and Hour Division within 30 days of receipt of the complaint, 
    as required by paragraph (b) of this section, the complainant may 
    refile the complaint directly with the nearest District Office of the 
    Wage and Hour Division.
    
    2.1207  Withholding of contract payments.
    
        (a) The Secretary of Labor has the authority to issue orders 
    prescribing appropriate remedies, including, but not limited to, 
    requiring employment of the predecessor contractor's employees and 
    payment of wages lost.
        (b) After an investigation and a determination by the 
    Administrator, Wage and Hour Division, Department of Labor, that lost 
    wages or other monetary relief is due, the Administrator may direct 
    that so much of the accrued payments due on either the contract or any 
    other contract between the contractor and the Government shall be 
    withheld in a deposit fund as is necessary to pay the moneys due. Upon 
    the final order of the Secretary of Labor that such moneys are due, the 
    Administrator may direct that such withheld funds be transferred to the 
    Department of Labor for disbursement.
        (c) If the contracting officer or the Secretary of Labor finds that 
    the predecessor contractor has failed to provide a list of the names of 
    employees working under the contract in accordance with the 
    requirements of the predecessor's contract, the contracting officer may 
    take such action as may be necessary to cause the suspension of the 
    payment of funds until such time as the list is provided to the 
    contracting officer.
    
    
    22.1208  Contract clause.
    
        The contracting officer shall insert the clause at 52.222-50, 
    Nondisplacement of Qualified Workers, in solicitations and contracts 
    for building services that succeed contracts for performance of similar 
    work at the same public building and that are not excluded by 22.1203.
    
    PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
    
        3. Section 52.222-50 is added to read as follows:
    
    
    52.222-50  Nondisplacement of Qualified Workers.
    
        As prescribed in 22.1208, insert the following clause:
    
    Nondisplacement of Qualified Workers (Aug 1997)
    
        (a) Definition. Service employee, as used in this clause, means 
    any person engaged in the performance of recurring building services 
    other than a person employed in a bona fide executive, 
    administrative, or professional capacity, as those terms are defined 
    in 29 CFR part 541, and shall include all such persons regardless of 
    any contractual relationship that may be alleged to exist between a 
    contractor and such person.
        (b) Consistent with the efficient performance of this contract, 
    the Contractor shall, except as otherwise provided herein, in good 
    faith offer those employees engaged in the performance of building 
    services (other than managerial and supervisory employees) under the 
    predecessor contract, whose employment will be terminated as a 
    result of award of this contract or the expiration of the contract 
    under which the employees were hired, a right of first refusal to 
    employment under the contract in positions for which the employees 
    are qualified. The Contractor shall determine the number of 
    employees necessary for efficient performance of this contract and 
    may elect to employ fewer employees than the predecessor contractor 
    employed in connection with performance of the work. Where the 
    Contractor offers a right of first refusal to fewer employees than 
    were employed by the predecessor contractor, its
    
    [[Page 44827]]
    
    obligation under the contract to the predecessor's employees to fill 
    vacancies created by increased staffing levels or by employee 
    termination, either voluntarily or for cause, continues for 3 months 
    after commencement of the contract. Except as provided in paragraph 
    (c) of this clause, the Contractor shall not offer employment under 
    the contract to any person prior to having complied fully with this 
    obligation.
        (c) Notwithstanding the Contractor's obligation under paragraph 
    (b) of this clause, the Contractor (1) may employ on the contract 
    any employee who has worked for the Contractor for at least 3 months 
    immediately preceding the commencement of this contract and who 
    would otherwise face layoff or discharge, (2) is not required to 
    offer a right of first refusal to any employee(s) of the predecessor 
    contractor who are not service employees, and (3) is not required to 
    offer a right of first refusal to any employee(s) of the predecessor 
    contractor who the Contractor reasonably believes, based on the 
    particular employee's past performance, has failed to perform 
    suitably on the job. Examples of permissible sources for this 
    determination include evidence of disciplinary action based on poor 
    performance or evidence from the contracting agency that the 
    particular employee did not perform suitably. Offers of employment 
    are governed by the following:
        (i) The offer shall state the time within which the employee 
    must accept such offer, but in no case shall the period for 
    acceptance be less than 10 days.
        (ii) The offer may be made by separate written notice to each 
    employee, or orally at a meeting attended by a group of the 
    predecessor contractor's employees.
        (iii) An offer need not be to a position similar to that which 
    the employee previously held, but the employee must be qualified for 
    the position.
        (iv) An offer to a position providing lower pay or benefits than 
    the employee held with the predecessor contractor will be considered 
    bona fide if the Contractor shows valid business reasons.
        (v) To ensure that an offer is effectively communicated, the 
    Contractor should take reasonable efforts to make the offer in a 
    language that each worker understands; for example, by having a co-
    worker or other person fluent in the worker's language at the 
    meeting to translate or otherwise assist an employee who is not 
    fluent in English.
        (d) For a period of 1 year, the Contractor shall maintain copies 
    of any written offers of employment or a contemporaneous written 
    record of any oral offers of employment, including the date, 
    location, and attendance roster of any employee meeting(s) at which 
    the offers were extended, a summary of each meeting, a copy of any 
    written notice that may have been distributed, and the names of the 
    predecessor's employees to whom an offer was made. Copies of such 
    documentation shall be provided upon request to any authorized 
    representative of the contracting agency or the Department of Labor.
        (e) The Contractor shall, no less than 60 days before completion 
    of this contract, furnish the Contracting Officer with a certified 
    list of the names of all service employees engaged in the 
    performance of building services, working for the Contractor at the 
    Federal facility at the time the list is submitted. The list also 
    shall contain anniversary dates of employment on the contract either 
    with the current or predecessor contractors of each service 
    employee, as appropriate. The Contracting Officer will provide the 
    list to the successor contractor, and the list shall be provided 
    upon request to employees or their representatives. Submission of 
    this list will satisfy the requirements of paragraph (n) of the 
    clause at 52.222-41, Service Contract Act of 1965, as Amended.
        (f) The requirements of this clause do not apply to services 
    where a majority of the Contractor's employees performing the 
    particular services under the contract work at the public building 
    and at other locations under contracts not subject to Executive 
    Order 12933, provided that the employees are not deployed in a 
    manner that is designed to avoid the purposes of the Executive 
    Order.
        (g) If it is determined, pursuant to regulations issued by the 
    Secretary of Labor, that the Contractor is not in compliance with 
    the requirements of this clause or any regulation or order of the 
    Secretary, appropriate sanctions may be imposed and remedies invoked 
    against the Contractor, as provided in Executive Order 12933, the 
    regulations of the Secretary of Labor at 29 CFR part 9, and relevant 
    orders of the Secretary of Labor, or as otherwise provided by law.
        (h) The Contractor is advised that the Contracting Officer shall 
    withhold or cause to be withheld from the Contractor, under this or 
    any other Government contract with the Contractor, such sums as an 
    authorized official of the Department of Labor requests, upon a 
    determination by the Administrator of the Wage and Hour Division, 
    the Administrative Law Judge, or the Administrative Review Board, 
    that the Contractor failed to comply with the terms of this clause, 
    and that wages lost as a result of the violations are due to 
    employees or that other monetary relief is appropriate.
        (i) The Contractor shall cooperate in any investigation by the 
    contracting agency or the Department of Labor into possible 
    violations of the provisions of this clause and shall make records 
    requested by such official(s) available for inspection, copying, or 
    transcription upon request.
        (j) Disputes concerning the requirements of this clause shall 
    not be subject to the general disputes clause of this contract. Such 
    disputes shall be resolved in accordance with applicable law and the 
    procedures of the Department of Labor set forth in 29 CFR part 9. 
    Disputes concerning the requirements of this clause include disputes 
    between or among any of the following: The Contractor, the 
    contracting agency, the U.S. Department of Labor, and the employees 
    under the contract or its predecessor contract.
    
    (End of clause)
    
    [FR Doc. 97-21497 Filed 8-21-97; 8:45 am]
    BILLING CODE 6820-EP-P
    
    
    

Document Information

Published:
08/22/1997
Department:
General Services Administration
Entry Type:
Rule
Action:
Interim rule with request for comments.
Document Number:
97-21497
Pages:
44823-44827 (5 pages)
PDF File:
97-21497.pdf
CFR: (11)
48 CFR 22.1200
48 CFR 22.1201
48 CFR 22.1202
48 CFR 22.1203
48 CFR 22.1204
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