[Federal Register Volume 79, Number 227 (Tuesday, November 25, 2014)]
[Rules and Regulations]
[Pages 70342-70343]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-27659]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 22 and 53
[FAC 2005-78; FAR Case 2014-011; Item II; Docket No. 2014-0011;
Sequence No. 1]
RIN 9000-AM83
Federal Acquisition Regulation: Streamlining Claims Processing
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the
Federal Acquisition Regulation (FAR) to implement the Streamlining
Claims Processing for Federal Contractor Employees Act which amends the
United States Code (U.S.C.) to transfer certain functions from the
Government Accountability Office (GAO) to the Department of Labor (DOL)
relating to the processing of claims for the payment of workers who
were not paid appropriate wages under certain provisions of the U.S.C.
DATES: Effective: December 26, 2014.
FOR FURTHER INFORMATION CONTACT: Mr. Edward Loeb, Procurement Analyst,
at 202-501-0650 for clarification of content. For information
pertaining to status or publication schedules, contact the Regulatory
Secretariat at 202-501-4755. Please cite FAC 2005-78, FAR Case 2014-
011.
SUPPLEMENTARY INFORMATION:
I. Background
The Streamlining Claims Processing for Federal Contractor Employees
Act (the Act) (Pub. L. 113-50) was enacted on November 21, 2013. The
Act transfers certain administrative authorities relating to the
processing of claims for the payment of workers who were not paid
appropriate wages under certain provisions of title 40 U.S.C. from the
GAO to the DOL. One of the specific functions transferred to the DOL at
40 U.S.C. 3144 and 3703 is the authority to pay certain wages. FAR part
22, Application of Labor Laws to Government Acquisitions, which
addresses the withholding or suspending of contract payments and the
disposition of such payments, requires revision to be consistent with
the Act. Specifically, FAR 22.406-9, Withholding from or suspension of
contract payments, at paragraph (c), includes instructions regarding
the disposition of contract payments that have been withheld or
suspended. Also, FAR 22.406-11, Contract terminations, includes
instructions for submitting reports when terminations result from
violation of labor standards clauses. This final rule revises these FAR
sections to appropriately reflect the administrative authorities of the
DOL, and to provide a link to the DOL Web site and guidance for
disbursement of withheld funds. Reference to Standard Form (SF) 1093,
Schedule of Withholdings Under the Construction Wage Rate Requirements
Statute (40 U.S.C. Chapter 31, Subchapter IV, Section 3144) and/or the
Contract Work Hours and Safety Standards Statute (40 U.S.C. Chapter 37,
Section 3703), is deleted. The SF 1093 was previously used to disburse
funds to the GAO and is now obsolete.
II. Publication of This Final Rule for Public Comment Is Not Required
by Statute
``Publication of proposed regulations'', 41 U.S.C. 1707, is the
statute which applies to the publication of the Federal Acquisition
Regulation. Paragraph (a)(1) of the statute requires that a procurement
policy, regulation, procedure or form (including an amendment or
modification thereof) must be published for public comment if it
relates to the expenditure of appropriated funds, and has either a
significant effect beyond the internal operating procedures of the
agency issuing the policy, regulation, procedure or form, or has a
significant cost or
[[Page 70343]]
administrative impact on contractors or offerors. This final rule is
not required to be published for public comment, because it has no
effect on contractors or offerors. This rule only revises the
regulation by accurately reflecting that the DOL is the administrative
authority for certain functions that were formerly the function of the
GAO. These requirements affect only the internal operating procedures
of the Government.
III. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This is not a significant regulatory action and, therefore, was not
subject to review under Section 6(b) of E.O. 12866, Regulatory Planning
and Review, dated September 30, 1993. This rule is not a major rule
under 5 U.S.C. 804.
IV. Regulatory Flexibility Act
The Regulatory Flexibility Act does not apply to this rule because
this final rule does not constitute a significant FAR revision within
the meaning of FAR 1.501-1 and 41 U.S.C. 1707 does not require
publication for public comment.
V. Paperwork Reduction Act
The rule does not contain any information collection requirements
that require the approval of the Office of Management and Budget under
the Paperwork Reduction Act (44 U.S.C. Chapter 35).
List of Subjects in 48 CFR Parts 22 and 53
Government procurement.
Dated: November 17, 2014.
William Clark,
Acting Director, Office of Government-wide Acquisition Policy, Office
of Acquisition Policy, Office of Government-wide Policy.
Therefore, DoD, GSA, and NASA amend 48 CFR parts 22 and 53 as set
forth below:
0
1. The authority citation for 48 CFR parts 22 and 53 continues to read
as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51
U.S.C. 20113.
PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS
0
2. Amend section 22.406-9 by revising paragraphs (c)(1) and (3) to read
as follows:
22.406-9 Withholding from or suspension of contract payments.
* * * * *
(c) Disposition of contract payments withheld or suspended--(1)
Forwarding wage underpayments to the Secretary of Labor. Upon final
administrative determination, if the contractor or subcontractor has
not made restitution, the contracting officer must follow the
Department of Labor guidance published in Wage and Hour Division, All
Agency Memorandum (AAM) No. 215, Streamlining Claims for Federal
Contractor Employees Act. The AAM No. 215 can be obtained at http://www.dol.gov/whd/govcontracts/dbra.htm; under Guidance there is a link
for All Agencies Memoranda (AAMs).
* * * * *
(3) Limitation on returning funds. If the Department of Labor
requested the withholding or if the findings are disputed (see 22.406-
10(e)), the contracting officer must not return the funds to the
contractor without approval by the Department of Labor.
* * * * *
22.406-11 [Amended]
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3. Amend section 22.406-11 by removing from the introductory paragraph
``, and the Comptroller General''.
PART 53--FORMS
0
4. Amend section 53.222 by revising the section heading; and removing
and reserving paragraph (d) to read as follows:
53.222 Application of labor laws to Government acquisitions (SF's 307,
1413, 1445, 1446, WH-347).
* * * * *
53.301-1093 [Removed]
0
5. Remove section 53.301-1093.
[FR Doc. 2014-27659 Filed 11-24-14; 8:45 am]
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