E6-9667. Prevailing Rate Systems; North American Industry Classification System Based Federal Wage System Wage Surveys

AGENCY:

Office of Personnel Management.

ACTION:

Final rule.

SUMMARY:

The Office of Personnel Management is issuing a final rule to replace the Standard Industrial Classification codes currently used in Federal Wage System regulations with the more recent North American Industry Classification System codes, published by the Office of Management and Budget. The purpose of this change is to update the wage survey industry regulations by adopting the new classification system.

DATES:

Effective date: This rule is effective on July 20, 2006.

Applicability date: This rule applies for local wage surveys beginning on or after November 1, 2006.

FOR FURTHER INFORMATION CONTACT:

Mark Allen, [phone]; e-mail [e-mail]; or FAX: [phone].

SUPPLEMENTARY INFORMATION:

On November 16, 2005, the Office of Personnel Management (OPM) issued a proposed rule (70 FR 69467) to replace all Standard Industrial Classification (SIC) codes in the Federal Wage System (FWS) regulations with the most closely corresponding North American Industry Classification System (NAICS) codes. Adopting the NAICS system will update the FWS wage survey industry regulations, while making as few changes as possible in the types of industrial establishments already included in FWS wage surveys under the SIC system. These regulations use 2002 NAICS codes. As the Office of Management and Budget updates the NAICS periodically, we will update these regulations to correspond to the updated NAICS codes based on advice we receive from the Federal Prevailing Rate Advisory Committee.

The proposed rule had a 30-day public comment period, during which OPM received no comments. However, the final rule incorporates some formatting changes in the industry charts to improve consistency and readability, and three additional minor changes that are consistent with the intent of the proposed rule. First, section 532.313(b) of title 5, Code of Federal Regulations, limits special job coverage to Automotive Mechanic, Engine Mechanic, and Heavy Mobile Equipment Mechanic only in certain industries included in surveys concerning the Artillery and Combat Vehicles specialized industry, not in all of the specialized industries, as was originally proposed. Second, the four SIC codes in section 532.223(a) have been converted to comparable NAICS codes. We inadvertently overlooked this section in the proposed rule. Third, we are adding NAICS 5175, Cable and other program distribution, to the communications specialized industry in section 532.313 to better match NAICS wage survey industry coverage to the industry coverage of the SIC system. We inadvertently overlooked this industry in the proposed rule.

This final regulation is effective 30 days after publication. However, to provide the lead agency (the Department of Defense) with sufficient time and a fixed date for planning surveys and implementing changes required by the new industry classification system, the regulation is applicable for wage surveys ordered to begin on or after November 1, 2006.

Regulatory Flexibility Act

I certify that these regulations will not have a significant economic impact on a substantial number of small entities because they will affect only Federal agencies and employees.

E.O. 12866, Regulatory Review

The Office of Management and Budget has reviewed this final rule in accordance with Executive Order 12866.

List of Subjects in 5 CFR Part 532

• Administrative practice and procedure
• Freedom of information
• Government employees
• Reporting and recordkeeping requirements
• Wages

Office of Personnel Management.

Linda M. Springer,

Director.

Accordingly, the Office of Personnel Management is amending 5 CFR part 532 as follows:

PART 532—PREVAILING RATE SYSTEMS

1. The authority citation for part 532 continues to read as follows:

Authority: 5 U.S.C. 5343, 5346; § 532.707 also issued under 5 U.S.C. 552.

Subpart B—Prevailing Rate Determinations

2. In § 532.213, revise paragraph (a) to read as follows:

§ 532.213

Industries included in regular appropriated fund wage surveys.

(a) The lead agency must include the industries in the following North American Industry Classification System (NAICS) codes in all regular appropriated fund wage surveys:

2002 NAICS codes	2002 NAICS industry titles
311 through 339 (except 323)	All manufacturing classes except printing and related support activities (NAICS 323).
221	Utilities.
481	Air transportation.
482	Rail transportation.
484	Truck transportation.
485 (except 4853)	Transit and ground passenger transportation except taxi and limousine service (NAICS 4853).
487 (except 4872)	Scenic and sightseeing transportation except scenic and sightseeing transportation, water (NAICS 4872).
488 (except 4883 and 4884)	Support activities for transportation except support activities for water transportation (NAICS 4883) and support activities for road transportation (NAICS 4884).
492	Couriers and messengers.
493	Warehousing and storage.
515	Broadcasting (except Internet).
517	Telecommunications.
5621	Waste collection.
5622	Waste Treatment and Disposal.
423	Merchant wholesalers, durable goods.
424	Merchant wholesalers, nondurable goods.

* * * * *

3. In § 532.221, revise paragraph (a) to read as follows:

§ 532.221

Industries included in regular nonappropriated fund surveys.

(a) The lead agency must include the following North American Industry Classification System (NAICS) codes in all regular nonappropriated fund wage surveys:

2002 NAICS codes	2002 NAICS industry titles
42312	Motor vehicle supplies and new parts merchant wholesalers.
4232	Furniture and home furnishing merchant wholesalers.
42362	Electrical and electronic appliance, television, and radio set merchant wholesalers.
42369	Other electronic parts and equipment merchant wholesalers.
42371	Hardware merchant wholesalers.
42391	Sporting and recreational goods and supplies merchant wholesalers.
42399	Other miscellaneous durable goods merchant wholesalers.
4241	Paper and paper product merchant wholesalers.
42421	Drugs and druggists' sundries merchant wholesalers.
4243	Apparel, piece goods, and notions merchant wholesalers.
42445	Confectionery merchant wholesalers.
4247	Petroleum and petroleum products merchant wholesalers.
4249	Miscellaneous nondurable goods merchant wholesalers.
44132	Tire dealers.
44311	Appliance, television, and other electronic stores.
44411	Home centers.
44611	Pharmacies and drug stores.
4471	Gasoline stations.
44814	Family clothing stores.
4521	Department stores.
45299	All other general merchandise stores.
45321	Office supplies and stationery stores.
4542	Vending machine operators.
71391	Golf courses and country clubs.
71395	Bowling centers.
72111	Hotels (except casino hotels) and motels.
7221	Full-service restaurants.
7222	Limited-service eating places.
7224	Drinking places (alcoholic beverages).

* * * * *

4. In § 532.223, revise paragraph (a) to read as follows:

§ 532.223

Establishments included in regular nonappropriated fund surveys.

(a) All establishments having 20 or more employees in the prescribed industries within a survey area must be included in the survey universe. Establishments in NAICS codes 4471, 4542, 71391, and 71395 must be included in the survey universe if they have eight or more employees.

* * * * *

5. In § 532.267, revise paragraph (c)(1) to read as follows:

§ 532.267

Special wage schedules for aircraft, electronic, and optical instrument overhaul and repair positions in the Puerto Rico wage area.

* * * * *

(c) * * *

(1) Surveys must, at a minimum, include the air transportation and electronics industries in the following North American Industry Classification System (NAICS) codes:

2002 NAICS codes	2002 NAICS industry titles
3341	Computer and peripheral equipment manufacturing.
33422	Radio and television broadcasting and wireless communications equipment manufacturing.
33429	Other communications equipment manufacturing.
3343	Audio and video equipment manufacturing.
334412	Bare printed circuit board manufacturing.
334413	Semiconductor and related device manufacturing.
334418	Printed circuit assembly (electronic assembly) manufacturing.
334419	Other electronic component manufacturing.
334511	Search, detection, navigation, guidance, aeronautical, and nautical system and instrument manufacturing.
334613	Magnetic and optical recording media manufacturing.
42342	Office equipment merchant wholesalers.
42343	Computer and computer peripheral equipment and software merchant wholesalers.
4811	Scheduled air transportation.
4812	Nonscheduled air transportation.
4879	Scenic and sightseeing transportation, other.
4881	Support activities for air transportation.
4921	Couriers.
56172	Janitorial services.
62191	Ambulance services.
81142	Reupholstery and furniture repair.

* * * * *

6. In § 532.279, revise paragraphs (c), introductory text, and (c)(1) to read as follows:

§ 532.279

Special wage schedules for printing positions.

* * * * *

(c) The lead agency must establish survey specifications for the printing survey as follows:

(1) The lead agency must include North American Industry Classification System (NAICS) codes 323110 and 323114 in the printing survey and may add other NAICS codes in subsector 323 to the survey based on its survey experience.

* * * * *

7. In § 532.285, revise paragraph (c)(1) to read as follows:

§ 532.285

Special wage schedules for supervisors of negotiated rate Bureau of Reclamation employees.

* * * * *

(c) * * *

(1) Based on Bureau of Reclamation activities and types of supervisory positions in the special wage area, the Bureau of Reclamation must survey private industry companies, with no minimum employment size requirement for establishments, in the following North American Industry Classification System code subsectors:

2002 NAICS codes	2002 NAICS industry titles
211	Oil and gas extraction.
212	Mining (except oil and gas).
213	Support activities for mining.
221	Utilities.
333	Machinery manufacturing.
334	Computer and electronic product manufacturing.
335	Electrical equipment, appliance, and component manufacturing.
484	Truck transportation.
492	Couriers and messengers.
493	Warehousing and storage.
515	Broadcasting (except Internet).
517	Telecommunications.
562	Waste management and remediation services.
811	Repair and maintenance.

* * * * *

8. Revise § 532.313 to read as follows:

§ 532.313

Private sector industries.

(a) For appropriated fund surveys, the lead agency must use the private sector industries in the following North American Industry Classification System (NAICS) codes when it makes its wage schedule determinations for each specialized Federal industry:

2002 NAICS codes	2002 NAICS industry titles
Aircraft Specialized Industry
332912	Fluid power valve and hose fitting manufacturing.
336411	Aircraft manufacturing.
336412	Aircraft engine and engine parts manufacturing.
336413	Other aircraft part and auxiliary equipment manufacturing.
336415	Guided missile and space vehicle propulsion unit and propulsion unit parts manufacturing.
336419	Other guided missile and space vehicle parts and auxiliary equipment manufacturing.
4811	Scheduled air transportation.
4812	Nonscheduled air transportation.
4879	Scenic and sightseeing transportation, other.
4881	Support activities for air transportation.
4921	Couriers.
54171	Research and development in the physical, engineering, and life sciences.
56172	Janitorial services.
62191	Ambulance services.
81142	Reupholstery and furniture repair.
Ammunition Specialized Industry
32592	Explosives manufacturing.
332992	Small arms ammunition manufacturing.
332993	Ammunition (except small arms) manufacturing.
Artillery and Combat Vehicles Specialized Industry
2211	Electric power generation, transmission, and distribution.
2212	Natural gas distribution.
32732	Ready-mix concrete manufacturing.
332212	Hand and edge tool manufacturing.
332323	Ornamental and architectural metal work manufacturing.
332439	Other metal container manufacturing.
332995	Other ordnance and accessories manufacturing.
332999	All other miscellaneous fabricated metal product manufacturing.
33311	Agricultural implement manufacturing.
33312	Construction machinery manufacturing.
333611	Turbine and turbine generator set units manufacturing.
333618	Other engine equipment manufacturing.
333922	Conveyor and conveying equipment manufacturing.
333923	Overhead traveling crane, hoist, and monorail system manufacturing.
333924	Industrial truck, tractor, trailer, and stacker machinery manufacturing.
3361	Motor vehicle manufacturing.
336211	Motor vehicle body manufacturing.
336212	Truck trailer manufacturing.
336312	Gasoline engine and engine parts manufacturing.
336322	Other motor vehicle electrical and electronic equipment manufacturing.
33633	Motor vehicle steering and suspension components (except spring) manufacturing.
33634	Motor vehicle brake system manufacturing.
33635	Motor vehicle transmission and power train parts manufacturing.
336399	All other motor vehicle parts manufacturing.
33651	Railroad rolling stock manufacturing.
336992	Military armored vehicle, tank, and tank component manufacturing.
4231	Motor vehicle and motor vehicle parts and supplies merchant wholesalers.
42381	Construction and mining (except oil well) machinery and equipment merchant wholesalers.
42382	Farm and garden machinery and equipment merchant wholesalers.
4413	Automotive parts, accessories, and tire stores.
44421	Outdoor power equipment stores.
484	Truck transportation.
4862	Pipeline transportation of natural gas.
492	Couriers and messengers.
5171	Wired telecommunications carriers.
5172	Wireless telecommunications carriers (except satellite).
5173	Telecommunications resellers.
5621	Waste collection.
81299	All other personal services.
Communications Specialized Industry
33422	Radio and television broadcasting and wireless communications equipment manufacturing.
33429	Other communications equipment manufacturing.
334511	Search, detection, navigation, guidance, aeronautical and nautical system and instrument manufacturing.
334514	Totalizing fluid meter and counting device manufacturing.
334515	Instrument manufacturing for measuring and testing electricity and electrical signals.
335311	Power, distribution, and specialty transformer manufacturing.
48531	Taxi service.
5151	Radio and television broadcasting.
5152	Cable and other subscription programming.
5171	Wired telecommunications carriers.
5172	Wireless telecommunications carriers (except satellite).
5173	Telecommunications resellers.
5174	Satellite telecommunications.
5175	Cable and other program distribution.
5179	Other telecommunications.
Electronics Specialized Industry
3341	Computer and peripheral equipment manufacturing.
33422	Radio and television broadcasting and wireless communications equipment manufacturing.
33429	Other communications equipment manufacturing.
33431	Audio and video equipment manufacturing.
334412	Bare printed circuit board manufacturing.
334413	Semiconductor and related device manufacturing.
334414	Electronic capacitor manufacturing.
334415	Electronic resistor manufacturing.
334416	Electronic coil, transformer, and other inductor manufacturing.
334417	Electronic connector manufacturing.
334418	Printed circuit assembly (electronic assembly) manufacturing.
334419	Other electronic component manufacturing.
334511	Search, detection, navigation, guidance, aeronautical and nautical system and instrument manufacturing.
334613	Magnetic and optical recording media manufacturing.
42342	Office equipment merchant wholesalers.
42343	Computer and computer peripheral equipment and software merchant wholesalers.
Guided Missiles Specialized Industry
332912	Fluid power valve and hose fitting manufacturing.
3341	Computer and peripheral equipment manufacturing.
33422	Radio and television broadcasting and wireless communications equipment manufacturing.
33429	Other communications equipment manufacturing.
334418	Printed circuit assembly (electronic assembly) manufacturing.
334511	Search, detection, navigation, guidance, aeronautical and nautical system and instrument manufacturing.
334613	Magnetic and optical recording media manufacturing.
3364	Aerospace product and parts manufacturing.
54131	Architectural services.
54133	Engineering services.
54136	Geophysical surveying and mapping services.
54137	Surveying and mapping (except geophysical) services.
54171	Research and development in the physical, engineering, and life sciences.
Heavy Duty Equipment Specialized Industry
332439	Other metal container manufacturing.
332999	All other miscellaneous fabricated metal product manufacturing.
33312	Construction machinery manufacturing.
333923	Overhead traveling crane, hoist, and monorail system manufacturing.
333924	Industrial truck, tractor, trailer, and stacker machinery manufacturing.
33651	Railroad rolling stock manufacturing.
42381	Construction and mining (except oil well) machinery and equipment merchant wholesalers.
Shipbuilding Specialized Industry
336611	Ship building and repairing.
48839	Other support activities for water transportation.
Sighting and Fire Control Equipment Specialized Industry
333314	Optical instrument and lens manufacturing.
3341	Computer and peripheral equipment manufacturing.
33422	Radio and television broadcasting and wireless communications equipment manufacturing.
33429	Other communications equipment manufacturing.
334418	Printed circuit assembly (electronic assembly) manufacturing.
334511	Search, detection, navigation, guidance, aeronautical and nautical system and instrument manufacturing.
334613	Magnetic and optical recording media manufacturing.
Small Arms Specialized Industry
332994	Small arms manufacturing.

(b) For wage surveys involving the specialized Federal industry “Artillery and Combat Vehicles” in paragraph (a) of this section, the lead agency must limit special job coverage for industries in NAICS codes 2211, 2212, 32732, 484, 4862, 5621, 492, 5171, 5172, and 5173 to automotive mechanic, diesel engine mechanic, and heavy mobile equipment mechanic.

(c) For nonappropriated fund wage surveys, the lead agency must use NAICS codes 71111, 7221, 7222, 72231, 72232, and 7224 (eating and drinking places) when it determines a wage schedule for a specialized industry.