[Federal Register Volume 61, Number 246 (Friday, December 20, 1996)]
[Rules and Regulations]
[Pages 67409-67411]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-32001]


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DEPARTMENT OF DEFENSE
48 CFR Parts 1, 9, 14, 19, 22, 33, and 52

[FAC 90-43, FAR Case 96-601, Item I]
RIN 9000-AH31


Federal Acquisition Regulation; FASA and the Walsh-Healey Public 
Contracts Act

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

ACTION: Interim rule with request for comment.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council have agreed to an interim rule amending 
the Federal Acquisition Regulation (FAR) to eliminate the requirement 
that covered contractors under the Walsh-Healey Public Contracts Act 
must be either the manufacturer of or a regular dealer in the 
materials, supplies, articles, or equipment to be manufactured or used 
in the performance of the contract. Section 7201 of the Federal 
Acquisition Streamlining Act of 1994 (Public Law 103-355) amended the 
Walsh-Healey Public Contracts Act to repeal the ``manufacturer'' or 
``regular dealer'' requirement. This regulatory action was not subject 
to Office of Management and Budget review under Executive Order 12866, 
dated September 30, 1993, and is not a major rule under 5 U.S.C. 804.

DATES: Effective Date: December 20, 1996.
    Comment Date: Comments should be submitted to the FAR Secretariat 
at the address shown below on or before February 18, 1997 to be 
considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to: 
General Services Administration, FAR Secretariat (MVRS), 18th & F 
Streets, NW, Room 4035, Attn: Ms. Beverly Fayson, Washington, DC 20405. 
Please cite FAC 90-43, FAR case 96-601, in all correspondence related 
to this case.

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 4035, GS Building, Washington, DC 20405 (202) 501-
4755. Please cite FAC 90-43, FAR case 96-601.

SUPPLEMENTARY INFORMATION:

A. Background

    On August 5, 1996 (61 FR 40714), the Department of Labor (DOL) 
published a final rule implementing the changes

[[Page 67410]]

made by the Federal Acquisition Streamlining Act of 1994 (FASA) to the 
Walsh-Healey Public Contracts Act (PCA). The FAR is being revised at 
this time, consistent with the DOL final rule.

B. Regulatory Flexibility Act

    The interim rule is not expected 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 the rule 
merely amends the FAR to conform to revisions to DOL regulations 
reflecting repeal of the ``manufacturer'' and ``regular dealer'' 
requirements under the PCA. DOL has determined that the revisions to 
its regulations will not have a significant economic impact on a 
substantial number of small entities. Accordingly, these conforming FAR 
amendments are not expected to have a significant economic impact. An 
Initial Regulatory Flexibility Analysis has, therefore, not been 
performed. Comments are invited from small businesses and other 
interested parties. Comments from small entities concerning the 
affected FAR parts also 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. (FAR case 96-601), 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. 

D. Determination to Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense (DOD), the Administrator of General Services (GSA), and the 
Administrator of the National Aeronautics and Space Administration 
(NASA) that urgent and compelling reasons exist to promulgate this 
interim rule without prior opportunity for public comment, because 
implementation of this change is required by Section 7201 of the 
Federal Acquisition Streamlining Act of 1994 and Department of Labor 
regulations. However, pursuant to Public Law 98-577 and FAR 1.501, 
public comments received in response to this interim rule will be 
considered in the formulation of the final rule.

List of Subjects in 48 CFR Parts 1, 9, 14, 19, 22, 33, and 52

    Government procurement.

    Dated: December 11, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
    Therefore, 48 CFR Parts 1, 9, 14, 19, 22, 33, and 52 are amended as 
set forth below:
    1. The authority citation for 48 CFR Parts 1, 9, 14, 19, 22, 33, 
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).

PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM


1.106  [Amended]

    2. The table in section 1.106 is amended under the ``FAR Segment'' 
and ``OMB Control Number'' columns by removing the entry for ``22.606-
2(b)''.

PART 9--CONTRACTOR QUALIFICATIONS


9.103  [Amended]

    3. Section 9.103 paragraph (b) is amended in the third sentence by 
removing ``and Determinations of Eligibility''.


9.104-1  [Amended]

    4. Section 9.104-1 is amended in paragraphs (a), (e), and (f) by 
revising the citation ``9.104-3(b)'' to read ``9.104-3(a)''; and in 
paragraph (c) by revising the citation ``9.104-3(c)'' to read ``9.104-
3(b)''.


9.104-3  [Amended]

    5. Section 9.104-3 is amended by removing paragraph (a), and by 
redesignating paragraphs (b) through (e) as (a) through (d), 
respectively.


9.702  [Amended]

    6. Section 9.702 is amended by removing paragraph (d), and by 
redesignating paragraphs (e) and (f) as (d) and (e), respectively.

PART 14--SEALED BIDDING


14.205-1  [Amended]

    7. Section 14.205-1(d)(2) is amended by removing ``(the 
manufacturer or regular dealer)''.

PART 19--SMALL BUSINESS PROGRAMS


19.001  [Amended]

    8. Section 19.001 is amended by removing the definition for 
``Determination of eligibility''.


19.102  [Amended]

    9. Section 19.102(f)(1) is amended by removing the fifth sentence, 
and in the last sentence by removing ``regular dealer'' and inserting 
``nonmanufacturer'' in its place.

Subpart 19.6--Certificates of Competency

    10. The subpart heading for Subpart 19.6 is revised to read as set 
forth above.


19.601  [Amended]

    11. Section 19.601 is amended by removing paragraph (c) and by 
redesignating paragraph (d) as (c).


19.803  [Amended]

    12. Section 19.803(a)(3) is amended by removing the last sentence.

PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS


22.601  [Reserved]

    13. Section 22.601 is removed and reserved.
    14. Section 22.602 is revised to read as follows:


22.602  Statutory requirements.

    Except for the exemptions at 22.604, all contracts subject to the 
Walsh-Healey Public Contracts Act (the Act) (41 U.S.C. 35-45) and 
entered into by any executive department, independent establishment, or 
other agency or instrumentality of the United States, or by the 
District of Columbia, or by any corporation (all the stock of which is 
beneficially owned by the United States) for the manufacture or 
furnishing of materials, supplies, articles, and equipment (referred to 
in this subpart as supplies) in any amount exceeding $10,000, shall 
include or incorporate by reference the stipulations required by the 
Act pertaining to such matters as minimum wages, maximum hours, child 
labor, convict labor, and safe and sanitary working conditions.


22.604-2  [Amended]

    15. Section 22.604-2 is amended by removing paragraph (b) and by 
redesignating paragraph (c) as (b).


22.606  [Reserved]


22.606-1 and 22.606-2  [Removed]

    16. Section 22.606 and subsections 22.606-1 and 22.606-2 are 
removed and 22.606 is reserved.


22.607  [Reserved]

    17. Section 22.607 is removed and reserved.
    18. Section 22.608 is revised to read as follows:

[[Page 67411]]

22.608  Procedures.

    (a) Award. When a contract subject to the Act is awarded, the 
contracting officer, in accordance with regulations or instructions 
issued by the Secretary of Labor and individual agency procedures, 
shall furnish to the contractor DOL publication WH-1313, Notice to 
Employees Working on Government Contracts.
    (b) Breach of stipulation. In the event of a violation of a 
stipulation required under the Act, the contracting officer shall, in 
accordance with agency procedures, notify the appropriate regional 
office of the DOL, Wage and Hour Division (see 22.609), and furnish any 
information available.


22.608-1 through 22.608-6  [Removed]

    19. Subsections 22.608-1 through 22.608-6 are removed.


22.609  [Amended]

    20.-21. Section 22.610 is revised to read as follows:


22.610  Contract clause.

    The contracting officer shall insert the clause at 52.222-20, 
Walsh-Healey Public Contracts Act, in solicitations and contracts 
covered by the Act (see 22.603, 22.604, and 22.605).

PART 33--PROTESTS, DISPUTES, AND APPEALS

    22. Section 33.102(a) is amended by revising the last sentence to 
read as follows:


33.102  General.

    (a) * * * (See 19.302 for protests of small business status.)
* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


52.219-14  [Amended]

    23. Section 52.219-14 is amended by revising the clause date to 
read ``(DEC 1996)'' and in paragraph (b)(2) by removing ``regular 
dealer in'' and inserting ``nonmanufacturer of'' in its place.


52.222-19  [Reserved]

    24. Section 52.222-19 is removed and reserved.


52.222-20  [Amended]

    25. Section 52.222-20 is amended in the introductory text by 
revising ``22.610(b)'' to read ``22.610'', by revising the clause date 
to read ``(DEC 1996)'', and in paragraph (a) by twice removing 
``representations and''.

[FR Doc. 96-32001 Filed 12-19-96; 8:45 am]
BILLING CODE 6820-EP-P