[Federal Register: July 26, 2000 (Volume 65, Number 144)]
[Rules and Regulations]
[Page 46068-46069]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26jy00-45]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 12 and 52
[FAC 97-19; FAR Case 1998-605; Item IV]
RIN 9000-AI36
Federal Acquisition Regulation; Service Contract Act, Commercial
Item Subcontracts
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Acquisition Streamlining Act of 1994 (FASA)
required the Federal Acquisition Regulatory Council (FAR Council) to
include a list of laws that are inapplicable to subcontracts for the
procurement of commercial items in the Federal Acquisition Regulation
(FAR). The list was implemented and included the Service Contract Act
(SCA). The FAR Council has reconsidered this issue and is removing the
SCA from the list of laws inapplicable to subcontracts for commercial
items.
EFFECTIVE DATE: August 25, 2000.
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 Ms. Linda Klein at (202) 501-3775. Please cite FAC 97-
19, FAR case 1998-605.
SUPPLEMENTARY INFORMATION:
A. Background
Section 8003(b) of FASA required the FAR Council to include in the
FAR a list of existing provisions of law that are inapplicable to
subcontracts for commercial items. FASA defined those laws to be any
provision of law, as determined by the FAR Council, that sets forth
policies, provisions, requirements, or restrictions for the procurement
of property or services, except those that provided for criminal or
civil penalties or were specifically by law made applicable to
contracts for the procurement of commercial items. In implementing this
section of FASA, the FAR Council included the SCA on the list of laws
inapplicable to commercial subcontracts in the final FAR rule (60 FR
48231, September 18, 1995).
In the period since publication of the FAR rule, the FAR Council,
in consultation with the Department of Labor (DoL), has concluded that
it is not in the best interest of the Government to retain the SCA on
the list of laws that are inapplicable to all subcontracts for
commercial items. The FAR Council agrees that any exemption from the
coverage of the SCA for subcontracts for the acquisition of commercial
items or components should be accomplished under the Secretary of
Labor's authority in the SCA.
The FAR Council has forwarded recommendations to the Secretary of
Labor for consideration in formulating a proposed rule regarding
exemptions from coverage under the SCA for commercial items. When the
proposal is finalized, DoL will publish the proposed rule, to be issued
under the Secretary's authority, in the Federal Register for public
comment. Following the completion of that rulemaking, the FAR will be
amended accordingly.
With respect to other labor laws, the Walsh-Healey Act and the
certification and contract clause requirements of the Contract Work
Hours and Safety Standards Act were made inapplicable to commercial
item contracts by the September 18, 1995, FAR final rule referenced
above. However, the Walsh-Healey Act and the Contract Work Hours and
Safety Standards Act provide statutory exemptions for purchases in the
open market. The listing of these statutes in the FAR with respect to
their inapplicability to commercial item contracts was designed to
reflect the existing statutory open market exemptions.
This is not a significant regulatory action and, therefore, was not
subject to review under Section 6(b) of Executive Order 12866,
Regulatory Planning and Review, dated September 30, 1993. This rule is
not a major rule under 5 U.S.C. 804.
B. Regulatory Flexibility Act
The final rule does not constitute a significant FAR revision
within the meaning of FAR 1.501 and Public Law 98-577, and publication
for public comments is not required. However, the Councils will
consider comments from small entities concerning the affected FAR parts
12 and 52 in accordance with 5 U.S.C. 610. Interested parties must
submit such comments separately and should cite 5 U.S.C. 601, et seq.
(FAC 97-19, FAR case 1998-605), in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose information collection requirements that require
the approval of the Office of Management and Budget under 44 U.S.C.
3501, et seq.
List of Subjects in 48 CFR Parts 12 and 52
Government procurement.
Dated: July 19, 2000.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, 48 CFR parts 12 and 52 are amended as set forth below:
1. The authority citation for 48 CFR parts 12 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).
[[Page 46069]]
PART 12--ACQUISITION OF COMMERCIAL ITEMS
12.504 [Amended]
2. Amend section 12.504 by removing paragraph (a)(7) and
redesignating paragraphs (a)(8) through (a)(12) as (a)(7) through
(a)(11), respectively.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
3. Amend section 52.212-5 by revising the clause date to read
``(AUG 2000)''; in paragraph (e)(3) by removing ``and''; in paragraph
(e)(4) by removing the period at the end and adding ``; and''; and by
adding paragraph (e)(5) to read as follows:
52.212-5 Contract Terms and Conditions Required to Implement Statutes
or Executive Orders--Commercial Items.
* * * * *
(e) * * *
(5) 52.222-41, Service Contract Act of 1965, As Amended (41 U.S.C.
351, et seq.).
* * * * *
[FR Doc. 00-18671 Filed 7-25-00; 8:45 am]
BILLING CODE 6820-EP-P