[Federal Register Volume 62, Number 163 (Friday, August 22, 1997)]
[Rules and Regulations]
[Pages 44823-44827]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-21497]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION


NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 22 and 52

[FAC 97-01; FAR Case 94-610; Item XII]
RIN 9000-AH62

Federal Acquisition Regulation; Executive Order 12933, 
Nondisplacement of Qualified Workers Under Certain Contracts

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

ACTION: Interim rule with request for comments.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council have agreed on an interim rule amending 
the Federal Acquisition Regulation (FAR) to implement Executive Order 
12933, Nondisplacement of Qualified Workers Under Certain Contracts, 
signed by the President on October 20, 1994 (59 FR 53559, October 24, 
1994). The Executive Order requires that workers on certain building 
service contracts be given the right of first refusal for employment 
with the successor contractor, if the workers would otherwise lose 
their jobs as a result of the award of the successor contract. 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: August 22, 1997.
    Applicability: With respect to solicitations and contracts for 
building service contracts covered by this regulation, the following 
applies:
    (1) For solicitations issued and contracts awarded on or after the 
effective date of this rule, include the clause at 52.222-50, 
Nondisplacement of Qualified Workers, except as provided in paragraph 
(2)(a) below.
    (2) Include the clause at 52.222-50, Nondisplacement of Qualified 
Workers, where practicable by--
    (a) Amending solicitations issued, but not awarded, prior to the 
effective date of the rule; or
    (b) Modifying contracts awarded prior to the effective date of this 
rule.
    Comment Date: Comments should be submitted to the FAR Secretariat 
at the address shown below on or before October 21, 1997 to be 
considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to: 
General Services Administration, FAR Secretariat (MVR), 1800 F Street, 
NW, Room 4035, Attn: Ms. Beverly Fayson, Washington, DC 20405.
    E-Mail comments submitted over the Internet should be addressed to: 
[email protected].
    Please cite FAC 97-01, FAR case 94-610 in all correspondence 
related to this case.

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 Mr. Jack O'Neill, Procurement Analyst, at (202) 501-
3856. Please cite FAC 97-01, FAR case 94-610.

SUPPLEMENTARY INFORMATION:

A. Background

    Executive Order 12933 was signed October 20, 1994, by President 
Clinton and published in the Federal Register on October 24, 1994 (59 
FR 53559). The purpose and need for the Executive Order are clearly 
stated in the Executive Order itself:

    When a service contract for the maintenance of a public building 
expires and a follow-on contract is awarded for the same service, 
the successor contractor typically hires the majority of the 
predecessor's employees. On occasion, however, a follow-on 
contractor will hire a new work force, and the predecessor's 
employees are displaced.
    As a buyer and participant in the marketplace, the Government is 
concerned about hardships to individuals that may result from the 
operation of our procurement system. Furthermore, the Government's 
procurement interests in economy and efficiency benefit from the 
fact that a carryover work force will minimize disruption to the 
delivery of services during any period of transition and provide the 
Government the benefits of an experienced and trained work force 
rather than one that may not be familiar with the Government 
facility.

    In order to address these concerns, Section 1 of the Executive 
Order makes the following statement of policy:

    It is the policy of the Federal Government that solicitations 
and building service contracts for public buildings shall include a 
clause that requires the contractor under a contract that succeeds a 
contract for performance of similar services at the same public 
building to offer those employees (other than managerial or 
supervisory employees) under the predecessor contract whose 
employment will be terminated as a result of the award of the 
successor contract, a right of first refusal to employment under the 
contract in positions for which they are qualified. There shall be 
no employment openings under the contract until such right

[[Page 44824]]

of first refusal has been provided. Nothing in this order shall be 
construed to permit a contractor to fail to comply with any 
provision of any other Executive order or laws of the United States.

    The Executive Order requires implementing regulations to be issued 
by the Secretary of Labor in consultation with the Federal Acquisition 
Regulatory Council, and that Department of Labor (DoL) regulations and 
the Federal Acquisition Regulation require inclusion of a contract 
clause in covered Federal solicitations and contracts. The Executive 
Order provides that it does not confer any right or benefit enforceable 
against the United States, but that it is not intended to preclude 
judicial review of final decisions by the Secretary of Labor in 
accordance with the Administrative Procedure Act (5 U.S.C. 701, et 
seq.).
    To obtain public input and assist in the development of these 
regulations, the DoL invited comment through a notice of proposed 
rulemaking in the Federal Register on July 18, 1995 (60 FR 36756). The 
final DoL rule was published in the Federal Register on May 22, 1997 
(62 FR 28175). This FAR interim rule implements the DoL rule.
    Regarding certification requirements of this interim rule, the 
certification requirement in paragraph (e) of the clause at 52.222-50 
is considered identical to the certification requirement in paragraph 
(n) of the clause at 52.222-41. Therefore, for the purposes of Section 
29 of the Office of Federal Procurement Policy Act (41 U.S.C. 425), 
this rule does not impose a new certification requirement.

B. Regulatory Flexibility Act

    The General Services Administration, Department of Defense, and 
National Aeronautics and Space Administration certify that this interim 
rule will not have a significant economic impact on a substantial 
number of small entities because the Executive Order mandates a 
practice that is already followed in most cases. This rule implements 
the requirements of the Executive Order, as implemented by the DoL in 
its final rule of May 22, 1997 (62 FR 28175). The DoL certified that 
its final rule will not have a significant economic impact on a 
substantial number of small entities. In those cases where the practice 
was not followed before the Executive Order, the impact would be a 
result of the Executive Order and the DoL regulation; it would not be a 
result of the FAR implementation.

C. Paperwork Reduction Act

    This interim rule will not impose any additional paperwork burdens 
beyond the information collection and recordkeeping requirements 
required under sections 9.6(c), 9.9(b) and 9.11 of the Department of 
Labor Regulations, 29 CFR Part 9, and approved under DoL Office of 
Management and Budget Control No. 1215-0190.

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. This action 
is necessary to implement Executive Order 12933 of October 20, 1994, 
Nondisplacement of Qualified Workers Under Certain Contracts, and the 
corresponding Department of Labor regulations that became effective on 
July 21, 1997. However, pursuant to Public Law 98-577 and FAR 1.501, 
public comments received in response to this interim rule will be 
considered in formulating the final rule.

List of Subjects in 48 CFR Parts 22 and 52

    Government procurement.

    Dated: August 7, 1997.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    Therefore, 48 CFR Parts 22 and 52 are amended as set forth below:
    1. The authority citation for 48 CFR Parts 22 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 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

    2. Subpart 22.12, consisting of sections 22.1200 through 22.1208, 
is added to read as follows:

Subpart 22.12--Nondisplacement of Qualified Workers Under Certain 
Contracts

Sec.
22.1200  Scope of subpart.
22.1201  Statement of policy.
22.1202  Definitions.
22.1203  Applicability.
22.1203-1  General.
22.1203-2  Exclusions.
22.1204  Seniority lists.
22.1205  Notice to employees.
22.1206  Complaint procedures.
22.1207  Withholding of contract payments.
22.1208  Contract clause.

Subpart 22.12--Nondisplacement of Qualified Workers Under Certain 
Contracts


22.1200  Scope of subpart.

    This subpart prescribes policies and procedures for implementing 
Executive Order 12933 of October 20, 1994, Nondisplacement of Qualified 
Workers Under Certain Contracts, and Department of Labor regulations at 
29 CFR part 9.


22.1201  Statement of policy.

    It is the policy of the Federal Government that contracts for 
building services at public buildings shall require the contractor 
under a successor contract for performance of similar services at the 
same public building, to offer those employees (other than managerial 
or supervisory employees) under the predecessor contract, whose 
employment will be terminated as a result of the award of the successor 
contract, a right of first refusal to employment under the contract in 
positions for which they are qualified. Executive Order 12933 states 
that there shall be no employment openings under the contract until 
such right of first refusal has been provided.


22.1202  Definitions.

    Building service contract, as used in this subpart, means a 
contract for recurring services related to the maintenance of a public 
building. Recurring services are services that are required to be 
performed regularly or periodically throughout the course of a 
contract, and throughout the course of the succeeding or follow-on 
contract(s), at one or more of the same public buildings. Executive 
Order 12933 lists examples of building service contracts as including, 
but not limited to, contracts for the recurring provision of custodial 
or janitorial services; window washing; laundry; food services; guard 
or other protective services; landscaping and groundskeeping services; 
and inspection, maintenance, and repair of fixed equipment such as 
elevators, air conditioning, and heating systems. Building service 
contracts do not include--
    (1) Contracts that provide maintenance services only on a non-
recurring or irregular basis. For example, a contract to provide 
servicing of fixed equipment once a year, or to mulch a garden on a 
one-time or annual basis, is a non-recurring maintenance contract that 
is not covered by this subpart;
    (2) Contracts for day-care services in a Federal office building; 
or
    (3) Concessions for sales of goods or services other than food 
services or laundry services.

[[Page 44825]]

    Public building, as used in this subpart, means any building owned 
by the United States that is generally suitable for office or storage 
space or both for the use of one or more Federal agencies or mixed 
ownership corporations, its grounds, approaches, and appurtenances.
    (1) Public buildings do not include any building on the public 
domain. The public domain includes only (i) those public lands owned by 
the United States and administered by the Department of the Interior, 
Bureau of Land Management, and (ii) the National Forest System 
administered by the Department of Agriculture, U.S. Forest Service. The 
public domain does not include Federal buildings, such as office 
buildings in cities or towns, that are occupied by the Bureau of Land 
Management or U.S. Forest Service where such buildings are not on lands 
administered by those agencies.
    (2) Buildings on the following are not public buildings:
    (i) Properties of the United States in foreign countries;
    (ii) Native American and Native Eskimo properties held in trust by 
the United States;
    (iii) Lands used in connection with Federal programs for 
agricultural, recreational, and conservation purposes, including 
research in connection therewith;
    (iv) Lands used in connection with river, harbor, flood control, 
reclamation, or power projects; or for chemical manufacturing or 
development projects; or for nuclear production, research, or 
development projects;
    (v) Land used in connection with housing and residential projects;
    (vi) Properties of the United States Postal Service;
    (vii) Military installations (including any fort, camp, post, naval 
training station, airfield, proving ground, military supply depot, 
military school, or any similar facility of the Department of Defense, 
but not including the Pentagon);
    (viii) Installations of the National Aeronautics and Space 
Administration, except regular office buildings; and
    (ix) Department of Veterans Affairs installations used for hospital 
or domiciliary purposes.
    (3) Buildings leased to the Government are not public buildings 
unless the building is leased pursuant to a lease-purchase contract.
    Service employee, as used in this subpart, means any person engaged 
in the performance of recurring building services other than a person 
in a bona fide executive, administrative, or professional capacity, as 
those terms are defined in 29 CFR part 541, and shall include all such 
persons regardless of any contractual relationship that may be alleged 
to exist between a contractor and such person.


22.1203  Applicability.


22.1203-1  General.

    (a) This subpart applies to building service contracts where the 
contract is entered into by the Government in an amount equal to or 
greater than the simplified acquisition threshold and the contract 
succeeds a contract for similar work at one or more of the same public 
buildings.
    (b)(1) Except as provided in paragraph (b)(2) of this subsection, a 
contract that includes a requirement for recurring building services is 
subject to this subpart even if the contract also contains other non-
covered services or non-service requirements, such as construction or 
supplies, and even if the contract is not subject to the McNamara-
O'Hara Service Contract Act, 41 U.S.C. 351, et seq. However, the 
requirements of this subpart apply only to the building services 
portion of the contract, and only to those public buildings for which 
services were provided under a predecessor contract.
    (2) This subpart does not apply to building services that are only 
incidental to a contract for another purpose, such as incidental 
maintenance under a contract to operate a day-care center. Building 
service requirements will not be considered incidental, and, therefore, 
will be subject to this subpart where (i) the contract contains 
specific requirements for a substantial amount of building services or 
it is ascertainable that a substantial amount of building services will 
be necessary to the performance of the contract (the word 
``substantial'' relates to the type and quantity of building services 
to be performed and not merely to the total value of such work, whether 
in absolute dollars or cost percentages as compared to the total value 
of the contract); and (ii) the building services work is physically or 
functionally separate, and as a practical matter is capable of being 
performed on a segregated basis, from the other work called for by the 
contract. Building services performed on a building being leased to the 
Government pursuant to a lease-purchase contract are not covered unless 
the services are being performed under a contract directly with the 
Government.


22.1203-2  Exclusions.

    (a) This subpart does not apply to--
    (1) Contracts under the simplified acquisition threshold;
    (2) Contracts for commodities or services produced or provided by 
the blind or severely handicapped, awarded pursuant to the Javits-
Wagner-O'Day Act, 41 U.S.C. 46-48a, and any future enacted law creating 
an employment preference for some group of workers under building 
service contracts;
    (3) Guard, elevator operator, messenger, or custodial services 
provided to the Government under contracts with sheltered workshops 
employing the severely handicapped as outlined in the Edgar Amendment, 
section 505 of the Treasury, Postal Services and General Government 
Appropriations Act, 1995, Public Law 103-329; or
    (4) Agreements for vending facilities operated by the blind, 
entered into under the preference provisions of the Randolph-Sheppard 
Act, 20 U.S.C. 107.
    (b) A successor contractor is not required to offer a right of 
first refusal for employment when a majority of its employees, who will 
perform the particular service under the contract, will work both at 
the public building and at other locations under contracts not subject 
to Executive Order 12933. Examples include, but are not limited to, 
pest control or trash removal services where the employees periodically 
visit various Government and non-Government sites, and make service 
calls to repair equipment at various Government and non-Government 
buildings. This exclusion does not apply (i) where the service 
employees' work on non-covered contracts is not performed as a part of 
the same job as their work on the Federal contract in question, or 
where they separately apply for work on the non-Federal contracts; or 
(ii) where the employees are deployed in a manner that is designed to 
avoid the purposes of Executive Order 12933. In making this 
determination, all the facts and circumstances are examined, including 
particularly the manner in which the predecessor contractor deployed 
its work force to perform the services, the manner in which the work 
force is typically deployed to perform such services, and the manner in 
which the contract is structured.


22.1204  Seniority lists.

    (a) Not less than 60 days before completion of its contract, the 
predecessor contractor must furnish the contracting officer with a 
certified list of the names of all service employees engaged in the 
performance of building services, working for the contractor at the 
Federal facility at the time the list is submitted, together with their 
anniversary dates of employment. The

[[Page 44826]]

contracting officer in turn shall provide the list to the successor 
contractor and, if requested, to employees of the predecessor 
contractor or their representatives.
    (b) The list provided pursuant to paragraph (a) of this section 
satisfies the requirements of paragraph (n) of the clause at 52.222-41, 
Service Contract Act of 1965, as Amended.


22.1205  Notice to employees.

    (a) Where the successor contract is a contract subject to this 
subpart, the contracting officer will provide written notice to service 
employees of the predecessor contractor, who are engaged in building 
services, of their possible right to an offer of employment. Such 
notice either may be posted in a conspicuous place at the work site or 
may be delivered to the employees individually.
    (b) Contracting officers may use either the following suggested 
notice format or another format with the same information.

Notice to Building Service Contract Employees

    The contract for [type of service] services currently performed 
by [predecessor contractor] has been awarded to a new contractor. 
[Successor contractor] will begin performance on [date successor 
contract begins].
    As a condition of the new contract [successor contractor] is 
required to offer employment to the employees of [predecessor 
contractor] working at [the contract work site or work sites] except 
in the following situations:
     Managerial or supervisory employees on the current 
contract are not entitled to an offer of employment.
     [Successor contractor] may reduce the size of the 
current work force. Therefore, only a portion of the existing work 
force may receive employment offers. However, [successor contractor] 
must offer employment to the employees of [predecessor contractor] 
if any vacancies occur in the first 3 months of the new contract.
     [Successor contractor] may employ a current employee on 
the new contract before offering employment to [predecessor 
contractor's] employees only if the current employee has worked for 
[successor contractor] for at least 3 months immediately preceding 
the commencement of the new contract and would face layoff or 
discharge if not employed under the new contract.
     Where [successor contractor] has reason to believe, 
based on credible information from a knowledgeable source, that an 
employee's performance has been unsuitable on the current contract, 
the employee is not entitled to employment with the new contractor.
    If you are offered employment on the new contract, you will have 
at least 10 days to accept the offer.
    If you are an employee of [predecessor contractor] and believe 
that you are entitled to an offer of employment with [successor 
contractor], but have not received an offer, you may file a 
complaint with [contracting officer or representative], the 
contracting officer handling this contract at: [address and 
telephone number of contracting officer]. If the contracting officer 
is unable to resolve your complaint, the contracting officer will 
forward a report to the U.S. Department of Labor, Wage and Hour 
Division. You also may file your complaint directly with [address of 
the nearest District Office of the Wage and Hour Division].
    If you have any questions about your right to employment on the 
new contract, contact: [Name, address, and telephone number of the 
contracting officer.]


22.1206  Complaint procedures.

    (a) Any employee of the predecessor contractor, who believes that 
he or she was not offered employment by the successor contractor as 
required by this subpart, may file a complaint with the contracting 
officer.
    (b) Upon receipt of the complaint, the contracting officer shall 
provide information to the employee(s) and the successor contractor 
about their rights and responsibilities under this subpart. If the 
matter is not resolved through such actions, the contracting officer 
shall, within 30 days from receipt of the complaint, obtain statements 
of the positions of the parties and forward the complaint and 
statements, together with a summary of the issues and any relevant 
facts known to the contracting officer, to the nearest District Office 
of the Wage and Hour Division, Employment Standards Administration, 
U.S. Department of Labor, with copies to the contractor and the 
complaining employee.
    (c) If the contracting officer has not forwarded the complaint to 
the Wage and Hour Division within 30 days of receipt of the complaint, 
as required by paragraph (b) of this section, the complainant may 
refile the complaint directly with the nearest District Office of the 
Wage and Hour Division.

2.1207  Withholding of contract payments.

    (a) The Secretary of Labor has the authority to issue orders 
prescribing appropriate remedies, including, but not limited to, 
requiring employment of the predecessor contractor's employees and 
payment of wages lost.
    (b) After an investigation and a determination by the 
Administrator, Wage and Hour Division, Department of Labor, that lost 
wages or other monetary relief is due, the Administrator may direct 
that so much of the accrued payments due on either the contract or any 
other contract between the contractor and the Government shall be 
withheld in a deposit fund as is necessary to pay the moneys due. Upon 
the final order of the Secretary of Labor that such moneys are due, the 
Administrator may direct that such withheld funds be transferred to the 
Department of Labor for disbursement.
    (c) If the contracting officer or the Secretary of Labor finds that 
the predecessor contractor has failed to provide a list of the names of 
employees working under the contract in accordance with the 
requirements of the predecessor's contract, the contracting officer may 
take such action as may be necessary to cause the suspension of the 
payment of funds until such time as the list is provided to the 
contracting officer.


22.1208  Contract clause.

    The contracting officer shall insert the clause at 52.222-50, 
Nondisplacement of Qualified Workers, in solicitations and contracts 
for building services that succeed contracts for performance of similar 
work at the same public building and that are not excluded by 22.1203.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    3. Section 52.222-50 is added to read as follows:


52.222-50  Nondisplacement of Qualified Workers.

    As prescribed in 22.1208, insert the following clause:

Nondisplacement of Qualified Workers (Aug 1997)

    (a) Definition. Service employee, as used in this clause, means 
any person engaged in the performance of recurring building services 
other than a person employed in a bona fide executive, 
administrative, or professional capacity, as those terms are defined 
in 29 CFR part 541, and shall include all such persons regardless of 
any contractual relationship that may be alleged to exist between a 
contractor and such person.
    (b) Consistent with the efficient performance of this contract, 
the Contractor shall, except as otherwise provided herein, in good 
faith offer those employees engaged in the performance of building 
services (other than managerial and supervisory employees) under the 
predecessor contract, whose employment will be terminated as a 
result of award of this contract or the expiration of the contract 
under which the employees were hired, a right of first refusal to 
employment under the contract in positions for which the employees 
are qualified. The Contractor shall determine the number of 
employees necessary for efficient performance of this contract and 
may elect to employ fewer employees than the predecessor contractor 
employed in connection with performance of the work. Where the 
Contractor offers a right of first refusal to fewer employees than 
were employed by the predecessor contractor, its

[[Page 44827]]

obligation under the contract to the predecessor's employees to fill 
vacancies created by increased staffing levels or by employee 
termination, either voluntarily or for cause, continues for 3 months 
after commencement of the contract. Except as provided in paragraph 
(c) of this clause, the Contractor shall not offer employment under 
the contract to any person prior to having complied fully with this 
obligation.
    (c) Notwithstanding the Contractor's obligation under paragraph 
(b) of this clause, the Contractor (1) may employ on the contract 
any employee who has worked for the Contractor for at least 3 months 
immediately preceding the commencement of this contract and who 
would otherwise face layoff or discharge, (2) is not required to 
offer a right of first refusal to any employee(s) of the predecessor 
contractor who are not service employees, and (3) is not required to 
offer a right of first refusal to any employee(s) of the predecessor 
contractor who the Contractor reasonably believes, based on the 
particular employee's past performance, has failed to perform 
suitably on the job. Examples of permissible sources for this 
determination include evidence of disciplinary action based on poor 
performance or evidence from the contracting agency that the 
particular employee did not perform suitably. Offers of employment 
are governed by the following:
    (i) The offer shall state the time within which the employee 
must accept such offer, but in no case shall the period for 
acceptance be less than 10 days.
    (ii) The offer may be made by separate written notice to each 
employee, or orally at a meeting attended by a group of the 
predecessor contractor's employees.
    (iii) An offer need not be to a position similar to that which 
the employee previously held, but the employee must be qualified for 
the position.
    (iv) An offer to a position providing lower pay or benefits than 
the employee held with the predecessor contractor will be considered 
bona fide if the Contractor shows valid business reasons.
    (v) To ensure that an offer is effectively communicated, the 
Contractor should take reasonable efforts to make the offer in a 
language that each worker understands; for example, by having a co-
worker or other person fluent in the worker's language at the 
meeting to translate or otherwise assist an employee who is not 
fluent in English.
    (d) For a period of 1 year, the Contractor shall maintain copies 
of any written offers of employment or a contemporaneous written 
record of any oral offers of employment, including the date, 
location, and attendance roster of any employee meeting(s) at which 
the offers were extended, a summary of each meeting, a copy of any 
written notice that may have been distributed, and the names of the 
predecessor's employees to whom an offer was made. Copies of such 
documentation shall be provided upon request to any authorized 
representative of the contracting agency or the Department of Labor.
    (e) The Contractor shall, no less than 60 days before completion 
of this contract, furnish the Contracting Officer with a certified 
list of the names of all service employees engaged in the 
performance of building services, working for the Contractor at the 
Federal facility at the time the list is submitted. The list also 
shall contain anniversary dates of employment on the contract either 
with the current or predecessor contractors of each service 
employee, as appropriate. The Contracting Officer will provide the 
list to the successor contractor, and the list shall be provided 
upon request to employees or their representatives. Submission of 
this list will satisfy the requirements of paragraph (n) of the 
clause at 52.222-41, Service Contract Act of 1965, as Amended.
    (f) The requirements of this clause do not apply to services 
where a majority of the Contractor's employees performing the 
particular services under the contract work at the public building 
and at other locations under contracts not subject to Executive 
Order 12933, provided that the employees are not deployed in a 
manner that is designed to avoid the purposes of the Executive 
Order.
    (g) If it is determined, pursuant to regulations issued by the 
Secretary of Labor, that the Contractor is not in compliance with 
the requirements of this clause or any regulation or order of the 
Secretary, appropriate sanctions may be imposed and remedies invoked 
against the Contractor, as provided in Executive Order 12933, the 
regulations of the Secretary of Labor at 29 CFR part 9, and relevant 
orders of the Secretary of Labor, or as otherwise provided by law.
    (h) The Contractor is advised that the Contracting Officer shall 
withhold or cause to be withheld from the Contractor, under this or 
any other Government contract with the Contractor, such sums as an 
authorized official of the Department of Labor requests, upon a 
determination by the Administrator of the Wage and Hour Division, 
the Administrative Law Judge, or the Administrative Review Board, 
that the Contractor failed to comply with the terms of this clause, 
and that wages lost as a result of the violations are due to 
employees or that other monetary relief is appropriate.
    (i) The Contractor shall cooperate in any investigation by the 
contracting agency or the Department of Labor into possible 
violations of the provisions of this clause and shall make records 
requested by such official(s) available for inspection, copying, or 
transcription upon request.
    (j) Disputes concerning the requirements of this clause shall 
not be subject to the general disputes clause of this contract. Such 
disputes shall be resolved in accordance with applicable law and the 
procedures of the Department of Labor set forth in 29 CFR part 9. 
Disputes concerning the requirements of this clause include disputes 
between or among any of the following: The Contractor, the 
contracting agency, the U.S. Department of Labor, and the employees 
under the contract or its predecessor contract.

(End of clause)

[FR Doc. 97-21497 Filed 8-21-97; 8:45 am]
BILLING CODE 6820-EP-P