[Federal Register Volume 65, Number 52 (Thursday, March 16, 2000)]
[Rules and Regulations]
[Pages 14402-14403]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-6167]


-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

48 CFR Parts 222 and 252

[DFARS Case 99-D308]


Defense Federal Acquisition Regulation Supplement; Construction 
and Service Contracts in Noncontiguous States

AGENCY:  Department of Defense (DoD).

ACTION:  Interim rule with request for comments.

-----------------------------------------------------------------------

SUMMARY:  The Acting Director of Defense Procurement has issued an 
interim rule amending the Defense Federal Acquisition Regulation 
Supplement (DFARS) to implement Section 8071 of the Fiscal Year 2000 
Defense Appropriations Act. Section 8071 provides that DoD contracts 
for construction or services performed in a noncontiguous State, that 
has an unemployment rate in excess or the national average, must 
include a clause requiring the contractor to employ individuals who are 
residents of that State and who, in the case of any craft or trade, 
possess or would be able to acquire promptly the necessary skills.

DATES:  Effective date: March 16, 2000.
    Comment date: Comments on the interim rule should be submitted in 
writing to the address shown on or before May 15, 2000, to be 
considered in the formation of the final rule.

ADDRESSES:  Interested parties should submit written comments to: 
Defense Acquisition Regulations Council, Attn: Ms. Amy Williams, PDUSD 
(AT&L) DP (DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 
20301-3062. Telefax (703) 602-0350.
    E-mail comments submitted via the Internet should be addressed to: 
[email protected]
    Please cite DFARS Case 99-D308 in all correspondence related to 
this rule. E-mail comments should cite DFARS Case 99-D308 in the 
subject line.

FOR FURTHER INFORMATION CONTACT:  Ms. Amy Williams, (703) 602-0288.

SUPPLEMENTARY INFORMATION:  

A. Background

    This interim rule revisions DFARS Subpart 222.70 and the clause at 
252.222-7000 to implement Section 8071 of the Fiscal Year 2000 Defense 
Appropriations Act (Public Law 106-79). Section 8071 provides that DoD 
contracts for construction or services performed in a State (as defined 
in 10 U.S.C. 381(d)), that is not contiguous with another State and has 
an unemployment rate in excess of the national average, must include a 
clause requiring the contractor to employ, for the purpose of 
performing that portion of the contract in the noncontiguous State, 
individuals who are residents of that State and who, in the case of any 
craft or trade, possess or would be able to acquire promptly the 
necessary skills.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    DoD does not expect this 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. A similar DFARS 
requirement already exists for the noncontiguous States of Alaska and 
Hawaii. DoD knows of no economic impact on small entities that has 
resulted from the implementation of

[[Page 14403]]

this requirement in those States. Therefore, DoD has not performed an 
initial regulatory flexibility analysis. DoD invites comments from 
small businesses and other interested parties. DoD also will consider 
comments from small entities concerning the affected DFARS subparts in 
accordance with 5 U.S.C. 610. Such comments should be submitted 
separately and should cite DFARS Case 99-D308.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the rule does 
not impose any information collection requirements that 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 that urgent and compelling reasons exist to publish this 
interim rule prior to affording the public an opportunity to comment. 
This interim rule implements Section 8071 of the Fiscal Year 2000 
Defense Appropriations Act (Public Law 106-79). Section 8071 provides 
that each DoD contract awarded during the current fiscal year, for 
construction or services performed in a noncontiguous State that has an 
unemployment rate in excess of the national average, must include a 
clause requiring the contractor to employee individuals who are 
residents of that State and who, in the case of any craft or trade, 
possess or would be able to acquire promptly the necessary skills. 
Section 8071 became effective on October 25, 1999. DoD will consider 
comments received in response to this interim rule in the formation of 
the final rule.

List of Subjects in 48 CFR Parts 222 and 252

    Government procurement.

Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.

    Therefore, 48 CFR Parts 222 and 252 are amended as follows:
    1. The authority citation for 48 CFR Parts 222 and 252 continues to 
read as follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 222--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

    2. Subpart 222.70 is revised to read as follows:

Subpart 222.70--Restrictions on the Employment of Personnel for 
Work on Construction and Service Contracts in Noncontiguous States

Sec.
222.7000   Scope of subpart.
222.7001   Definition.
222.7002   General.
222.7003   Waivers.
222.7004   Contract clause.


222.7000  Scope of subpart.

    (a) This subpart implements Section 8071 of the Fiscal Year 2000 
Defense Appropriations Act, Public Law 106-79, and similar sections in 
subsequent Defense Appropriations Acts.
    (b) This subpart applies only--
    (1) To construction and service contracts to be performed in whole 
or in part within a noncontiguous State; and
    (2) When the unemployment rate in the noncontiguous State is in 
excess of the national average rate of unemployment as determined by 
the Secretary of Labor.


222.7001  Definition.

    ``Noncontiguous State,'' as used in this subpart, means Alaska, 
Hawaii, Puerto Rico, the Northern Mariana Islands, American Samoa, 
Guam, the U.S. Virgin Islands, and any minor outlying island of the 
United States.


222.7002  General.

    A contractor awarded a contract subject to this subpart must 
employ, for the purpose of performing that portion of the contract work 
within the noncontiguous State, individuals who are residents of that 
noncontiguous State and who, in the case of any craft or trade, possess 
or would be able to acquire promptly the necessary skills to perform 
this contract.


222.7003  Waivers.

    The Secretary of Defense may waive the requirements of 222.7002 on 
a case-by-case basis in the interest of national security.


222.7004  Contract clause.

    Use the clause at 252.222-7000, Restrictions on Employment of 
Personnel, in all solicitations and contracts subject to this subpart. 
Insert the name of the appropriate noncontiguous State in paragraph (a) 
of the clause.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    3. Section 252.222-7000 is revised to read as follows:


252.222.7000  Restrictions on Employment of Personnel.

    As prescribed in 222.7004, use the following clause: RESTRICTIONS 
ON EMPLOYMENT OF PERSONNEL (MAR 2000)
    (a) The Contractor shall employ, for the purpose of performing that 
portion of the contract work in ________, individuals who are residents 
thereof and who, in the case of any craft or trade, possess or would be 
able to acquire promptly the necessary skills to perform the contract.
    (b) The Contractor shall insert the substance of this clause, 
including this paragraph (b), in each subcontract awarded under this 
contract. (End of clause)
[FR Doc. 00-6167 Filed 3-15-00; 8:45 am]
BILLING CODE 5000-04-M