[Federal Register: April 14, 2010 (Volume 75, Number 71)]
[Proposed Rules]
[Page 19345-19346]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14ap10-39]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 31
[FAR Case 2009-006; Docket 2010-0084, Sequence 1]
RIN 9000-AL39
Federal Acquisition Regulation; FAR Case 2009-006, Labor
Relations Costs
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) propose to amend the Federal
Acquisition Regulation (FAR) to implement Executive Order 13494,
Economy in Government Contracting, issued on January 30, 2009, and
amended on October 30, 2009. This order treats as unallowable the costs
of any activities undertaken to persuade employees, whether employees
of the recipient of Federal disbursements or of any other entity, to
exercise or not to exercise, or concerning the manner of exercising,
the right to organize and bargain collectively through representatives
of the employee's own choosing.
DATES: Interested parties should submit written comments to the
Regulatory Secretariat on or before June 14, 2010 to be considered in
the formulation of a final rule.
ADDRESSES: Submit comments identified by FAR case 2009-006 by any of
the following methods:
Regulations.gov: http://www.regulations.gov. Submit
comments via the Federal eRulemaking portal by inputting ``FAR Case
2009-006'' under the heading ``Enter Keyword or ID'' and selecting
``Search.'' Select the link ``Submit a Comment'' that corresponds with
``FAR Case 2009-006.'' Follow the instructions provided at the ``Submit
a Comment'' screen. Please include your name, company name (if any),
and ``FAR Case 2009-006'' on your attached document.
Fax: 202-501-4067.
Mail: General Services Administration, Regulatory
Secretariat (MVCB), 1800 F Street, NW., Room 4041, ATTN: Hada Flowers,
Washington, DC 20405.
[[Page 19346]]
Instructions: Please submit comments only and cite FAR case 2009-
006, in all correspondence related to this case. All comments received
will be posted without change to http://www.regulations.gov, including
any personal and/or business confidential information provided.
FOR FURTHER INFORMATION CONTACT: Mr. Edward Chambers, Procurement
Analyst, at (202) 501-3221, for clarification of content. For
information pertaining to status or publication schedules, contact the
Regulatory Secretariat at (202) 501-4755. Please cite FAR case 2009-
006.
SUPPLEMENTARY INFORMATION:
A. Background
Executive Order 13494, Economy in Government Contracting, dated
January 30, 2009, was published in the Federal Register at 74 FR 6101
on February 4, 2009, as amended on October 30, 2009, was published in
the Federal Register at 74 FR 57239 on November 5, 2009, provided that
to promote economy and efficiency in Government contracting, certain
costs that are not directly related to the contractor's provision of
goods and services to the Government shall be unallowable for payment,
thereby directly reducing Government expenditures. Thus, this order
states that the costs of the activities of preparing and distributing
materials; hiring or consulting legal counsel or consultants; holding
meetings (including paying the salaries of the attendees at meetings
held for this purpose); and planning or conducting activities by
managers, supervisors, or union representatives during work hours, when
they are undertaken to persuade employees to exercise or not to
exercise, or concern the manner of exercising, rights to organize and
bargain collectively are unallowable costs. This order is consistent
with Government policy to remain impartial concerning any labor-
management dispute involving Government contractors. This proposed rule
will make the necessary changes within the FAR.
This is a significant regulatory action and therefore was 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 Councils do not expect this proposed rule 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 most contracts awarded to small entities use simplified
acquisition procedures or are awarded on a competitive fixed-price
basis, and do not require application of the cost principles contained
in this rule. Further, the practical effect of the rule will be that
contractors will no longer be reimbursed for costs incurred in
promoting or opposing union organizing. It is substantially less likely
that small businesses will incur costs of this nature. An Initial
Regulatory Flexibility Analysis has, therefore, not been performed. The
Councils invite comments from small business concerns and other
interested parties on the expected impact of this rule on small
entities.
The Councils will also consider comments from small entities
concerning the existing regulations in FAR part 31 affected by this
rule in accordance with 5 U.S.C. 610. Interested parties must submit
such comments separately and should cite 5 U.S.C. 610 (FAR Case 2009-
006) in all correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the proposed
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. chapter 35, et seq.
List of Subjects in 48 CFR Part 31
Government procurement.
Dated: April 9, 2010.
Edward Loeb,
Acting Director, Acquisition Policy Division.
Therefore, DoD, GSA, and NASA propose amending 48 CFR part 31 as
set forth below:
PART 31--CONTRACT COSTS PRINCIPLES AND PROCEDURES
1. The authority citation for 48 CFR part 31 continues to read as
follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
2. Revise section 31.205-21 to read as follows:
31.205-21 Labor relations costs.
(a) Costs incurred in maintaining satisfactory relations between
the contractor and its employees (other than those made unallowable in
paragraph (b) of this section), including costs of shop stewards, labor
management committees, employee publications, and other related
activities, are allowable.
(b) As required by Executive Order 13494, Economy in Government
Contracting, costs of any activities undertaken to persuade employees,
of any entity, to exercise or not to exercise, or concerning the manner
of exercising, the right to organize and bargain collectively through
representatives of the employees' own choosing are unallowable.
Examples of unallowable costs in paragraph (b) of this section include,
but are not limited to, the costs of--
(1) Preparing and distributing materials;
(2) Hiring or consulting legal counsel or consultants;
(3) Meetings (including paying the salaries of the attendees at
meetings held for this purpose); and
(4) Planning or conducting activities by managers, supervisors, or
union representatives during work hours.
[FR Doc. 2010-8504 Filed 4-13-10; 8:45 am]
BILLING CODE 6820-EP-P