[Federal Register Volume 59, Number 248 (Wednesday, December 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-30652]


[Federal Register: December 28, 1994]


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GENERAL SERVICES ADMINISTRATION
GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 22

[FAC 90-23; FAR Case 93-609; Item XVII]
RIN 9000-AF91


Federal Acquisition Regulation; Section 4c Price Adjustments

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council (CAAC) and the Defense 
Acquisition Regulations Council (DARC) have agreed on a final rule to 
amend the Federal Acquisition Regulation (FAR) to clarify that the 
requirement for successor contractors on contracts over $2,500, for 
substantially the same services performed in the same locality, to pay 
wages and fringe benefits at least equal to those contained in any bona 
fide collective bargaining agreement entered into under the predecessor 
contract, is self-executing. The requirement is not contingent upon 
incorporating a wage determination or the wage and fringe benefit terms 
of the predecessor contractor's collective bargaining agreement in the 
successor contract. However, the contracting officer shall incorporate 
the wage and fringe benefit terms of the collective bargaining 
agreement itself in contract solicitations and may incorporate the 
terms or the agreement itself in other contract actions. This 
regulatory action was not subject to Office of Management and Budget 
review under Executive Order 12866, dated September 30, 1993.
EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Mr. Jack O'Neill at (202) 501-3856 in 
reference to this FAR case. For general information, contact the FAR 
Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-
4755. Please cite FAC 90-23, FAR case 93-609.

SUPPLEMENTARY INFORMATION:

A. Background

    The CAAC and DARC, in order to eliminates confusion that exists 
regarding applicability of Section 4(c) of the Service Contract Act to 
contract actions other than solicitations, are amending the FAR at 
22.1002-3, 22.1012-3, and 22.1012-5.

B. Regulatory Flexibility Act

    This 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. Therefore, the Regulatory 
Flexibility Act does not apply. However, comments from small entities 
concerning the affected subpart will be considered in accordance with 5 
U.S.C. 610. Such comments must be submitted separately and cite 5 
U.S.C. 601, et seq. (FAC 90-23, FAR case 93-609), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose recordkeeping or information collection 
requirements, or collections of information from offerors, contractors, 
or members of the public which require the approval of the Office of 
Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 22

    Government procurement.

    Dated: December 7, 1994.
Albert A. Vicchiolla,
Director, Office of Federal Acquisition Policy.

    Therefore, 48 CFR part 22 is amended as set forth below:

PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

    1. The authority citation for 48 CFR part 22 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).

    2. Section 22.1002-3 is amended by revising paragraph (a) to read 
as follows:


Sec. 22.1002-3  Wage determinations based on collective bargaining 
agreements.

    (a) Successor contractors performing on contracts in excess of 
$2,500 for substantially the same services performed in the same 
locality must pay wages and fringe benefits (including accrued wages 
and benefits and prospective increases) at least equal to those 
contained in any bona fide collective bargaining agreement entered into 
under the predecessor contract. This requirement is self-executing and 
is not contingent upon incorporating a wage determination or the wage 
and fringe benefit terms of the predecessor contractor's collective 
bargaining agreement in the successor contract. This requirement will 
not apply if the Secretary of Labor determines (1) after a hearing, 
that the wages and fringe benefits are substantially at variance with 
those which prevail for services of a similar character in the locality 
or (2) that the wages and fringe benefits are not the result of arm's 
length negotiations.
* * * * *
    3. Section 22.1012-3 is amended in paragraph (d)(1) by adding a 
sentence at the end of the paragraph to read as follows:


Sec. 22.1012-3  Response to timely submission of Notice--with 
collective bargaining agreement.

* * * * *
    (d) * * *
    (1) * * * The contracting officer may incorporate the wage and 
fringe benefit terms of the collective bargaining agreement, or the 
collective bargaining agreement itself, in other contract actions such 
as the exercise of options in order to facilitate price adjustments in 
fixed-price type contracts (but see 22.1008-3(e) and 22.1013(a)).
* * * * *
    4. Section 22.1012-5 is amended by adding a sentence at the end of 
the paragraph to read as follows:


Sec. 22.1012-5  Response to late submission of Notice--with collective 
bargaining agreement.

    * * * The contracting officer may incorporate the wage and fringe 
benefit terms of the collective bargaining agreement, or the collective 
bargaining agreement itself, in other contract actions such as the 
exercise of options in order to facilitate price adjustments for 
options in fixed-price type contracts (but see 22.1008-3(e) and 
22.1013(a)).

[FR Doc. 94-30652 Filed 12-27-94; 8:45 am]
BILLING CODE 6820-34-P