[Federal Register Volume 66, Number 204 (Monday, October 22, 2001)]
[Rules and Regulations]
[Pages 53487-53491]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-26299]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 2, 12, 13, 22, and 52

[FAC 2001-01; FAR Case 1998-614; Item IV]
RIN 9000-AI46


Federal Acquisition Regulation; Veterans' Employment

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 and the Defense 
Acquisition Regulations Council (Councils) have agreed on a final rule 
amending the Federal Acquisition Regulation (FAR) to implement Sections 
7 and 8 of the Veterans Employment Opportunities Act of 1998. Section 7 
expands and improves veterans' employment emphasis under Federal 
contracts. Section 8 amends the veterans' employment reporting 
requirements. The rule also implements the Department of Labor's (DoL) 
Office of Federal Contract Compliance Programs (OFCCP) final rule 
amending regulations on Affirmative Action and Nondiscrimination 
Obligations of Contractors and Subcontractors Regarding Special 
Disabled Veterans and Veterans of the Vietnam Era, which clarifies DoL 
implementation of the affirmative action provisions of the Vietnam Era 
Veterans' Readjustment Assistance Act of 1972, as amended.

DATES: Effective Date: December 21, 2001.

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 Ms. Linda Nelson, Procurement Analyst, at (202) 501-
1900. Please cite FAC 2001-01, FAR case 1998-614.

SUPPLEMENTARY INFORMATION:

A. Background

    This final rule amends FAR 12.503, 13.005, 22.13, and the 
associated clauses and provisions at FAR Part 52 to implement recent 
statutory and regulatory changes relating to veterans' employment 
opportunities and reporting. Paragraph (a) of Section 7 of the 
Veterans' Employment Opportunities Act of 1998 (Pub. L. 105-339) amends 
38 U.S.C.4212 in paragraph (a) to increase the threshold for covered 
contracts from $10,000 to $25,000, and expands applicability beyond 
``special disabled veterans and veterans of the Vietnam era'' to 
include other eligible veterans (i.e., any other veterans who served on 
active duty during a war or in a campaign or an expedition for which a 
campaign badge has been authorized).
    Paragraph (b) of Section 7 amends 31 U.S.C. 1354 to specifically 
prohibit contracting officers from obligating or expending appropriated 
funds to enter into covered contracts with a contractor that does not 
meet veterans' employment reporting requirements (VETS-100 Report). In 
accordance with 41 U.S.C. 429 and 41 U.S.C. 430, the Councils have 
listed this law as inapplicable to acquisitions not greater than the 
simplified acquisition threshold and acquisitions of commercial items.
    Paragraph (b) also requires the DoL to maintain a database on those 
contractors that have submitted the required VETS-100 Reports for the 
current reporting period. However, the database will not contain data 
on whether those contractors that did not submit reports were required 
to do so. The Councils have added a new provision by which the offeror 
represents that, if subject to the reporting requirements of 38 U.S.C. 
4212(d), it has not failed to submit the most recent required VETS-100 
Reports.
    This rule lists 31 U.S.C. 1354(a) as not applicable to commercial 
item contracts and acquisitions not greater than the simplified 
acquisition threshold of $100,000 pursuant to FASA at 41 U.S.C. 429 and 
41 U.S.C. 430. Accordingly, the representation in the provision at 
52.222-38, Compliance with Veterans' Employment Reporting Requirements, 
is not applicable to commercial item acquisitions and acquisitions not 
greater than the simplified acquisition threshold of $100,000.
    Section 8 of Public Law 105-339 amends 38 U.S.C. 4212(d)(1) to 
require reporting of the maximum number and the minimum number of 
employees during the period covered by the report. This requirement has 
been included in the clause at 52.222-37, which summarizes the DoL 
reporting requirements.
    In conformance with the Veterans Employment Opportunities Act of 
1998 and the OFCCP final rule, this final rule revises the clause at 
52.222-35, adding definitions of ``special disabled veterans,'' 
``qualified special disabled veteran,'' ``other eligible veteran,'' and 
``executive and top management,'' and changes the definition of 
``veteran of the Vietnam Era.'' The clause requires contractors to list 
all employment openings, except executive and top management, with the 
local employment service office. Contractors may fulfill the listing 
requirement by listing jobs electronically with America's Job Bank. The 
requirements for posting employment notices have also changed.
    DoD, GSA, and NASA published a proposed rule in the Federal 
Register at 64 FR 67992, December 3, 1999. Four respondents submitted 
comments on the proposed rule. The comments were considered in the 
development of the final rule.
    This is not a significant regulatory action and, therefore, was not 
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 Department of Defense, the General Services Administration, and 
the National Aeronautics and Space Administration certify that this 
final rule will not have a significant economic impact on a substantial 
number of small entities within the meaning of the Regulatory 
FlexibilityAct, 5 U.S.C. 601, et seq., because the rule implements the 
Contracting Restrictions of the Veterans Employment Opportunities Act 
of 1998 (Pub. L. 105-339) which will only affect offerors who were 
required to submit reports but did not do so; and also implements the 
OFCCP final rule (63 FR 59630), which DoL has certified will not have a 
significant economic impact on

[[Page 53488]]

a substantial number of small businesses.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose information collection requirements beyond those 
imposed by the DoL, for which DoL obtained the required approval from 
the Office of Management and Budget (OMB Control Numbers 1215-0072, 
1215-0163, and 1293-0005) under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 2, 12, 13, 22, and 52

    Government procurement.

    Dated: October 12, 2001.
Al Matera,
Director, Acquisition Policy Division.

    Therefore, DoD, GSA, and NASA amend 48 CFR parts 2, 12, 13, 22, and 
52 as set forth below:
    1. The authority citation for 48 CFR parts 2, 12, 13, 22, and 52 
continues to read as follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and42 U.S.C. 
2473(c).

PART 2--DEFINITIONS OF WORDS AND TERMS

    2. In section 2.101, amend the definition ``United States'' by 
redesignating paragraphs (3) and (4) as (4) and (5), respectively, and 
by adding a new paragraph (3) to read as follows:


2.101  Definitions.

* * * * *
    United States * * *
* * * * *
    (3) For use in subpart 22.13, see the definition at 22.1301.
* * * * *

PART 12--ACQUISITION OF COMMERCIAL ITEMS

    3. Amend section 12.503 in the introductory text of paragraph (a) 
by removing ``executive'' and adding ``Executive'' in its place; and by 
revising the section heading and adding paragraph (a)(5) to read as 
follows:


12.503  Applicability of certain laws to Executive agency contracts for 
the acquisition of commercial items.

    (a) * * *
    (5) 31 U.S.C. 1354(a), Limitation on use of appropriated funds for 
contracts with entities not meeting veterans employment reporting 
requirements (see 22.1302).
* * * * *

PART 13--SIMPLIFIED ACQUISITION PROCEDURES

    4. Amend section 13.005 by adding paragraph (a)(10) to read as 
follows:


13.005  Federal Acquisition Streamlining Act of 1994 list of 
inapplicable laws.

    (a) * * *
    (10) 31 U.S.C. 1354(a) (Limitation on use of appropriated funds for 
contracts with entities not meeting veterans employment reporting 
requirements).
* * * * *

PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

    5. Revise Subpart 22.13 to read as follows:

Subpart 22.13--Special Disabled Veterans, Veterans of the Vietnam 
Era, and Other Eligible Veterans

Sec.
22.1300   Scope of subpart.
22.1301   Definition.
22.1302   Policy.
22.1303   Applicability.
22.1304   Procedures.
22.1305   Waivers.
22.1306   Department of Labor notices and reports.
22.1307   Collective bargaining agreements.
22.1308   Complaint procedures.
22.1309   Actions because of noncompliance.
22.1310   Solicitation provision and contract clauses.


22.1300  Scope of subpart.

    This subpart prescribes policies and procedures for implementing 
the Vietnam Era Veterans' Readjustment Assistance Act of 1972 (38 
U.S.C. 4211 and 4212) (the Act); Executive Order 11701, January 24, 
1973 (3 CFR 1971-1975 Comp., p. 752); the regulations of the Secretary 
of Labor (41 CFR Part 60-250 and Part 61-250); and the Veterans 
Employment Opportunities Act of 1998, Public Law 105-339.


22.1301  Definition.

    United States, as used in this subpart, means the States, the 
District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth 
of the Northern Mariana Islands, American Samoa, Guam, the Virgin 
Islands of the United States, and Wake Island.


22.1302  Policy.

    (a) Contractors and subcontractors, when entering into contracts or 
subcontracts subject to the Act, must--
    (1) List all employment openings, with the appropriate local 
employment service office except for--
    (i) Executive and top management positions;
    (ii) Positions to be filled from within the contractor's 
organization; and
    (iii) Positions lasting three days or less.
    (2) Take affirmative action to employ, and advance in employment, 
qualified special disabled veterans, veterans of the Vietnam era, and 
other eligible veterans without discrimination based on their 
disability or veteran's status.
    (b) Except for contracts for commercial items or contracts that do 
not exceed the simplified acquisition threshold, contracting officers 
must not obligate or expend funds appropriated for the agency for a 
fiscal year to enter into a contract for the procurement of personal 
property and nonpersonal services (including construction) with a 
contractor that has not submitted a required annual Form VETS-100, 
Federal Contractor Veterans' Employment Report (VETS-100 Report), with 
respect to the preceding fiscal year if the contractor was subject to 
the reporting requirements of 38 U.S.C. 4212(d) for that fiscal year.


22.1303  Applicability.

    (a) The Act applies to all contracts and subcontracts for personal 
property and nonpersonal services (including construction) of $25,000 
or more except as waived by the Secretary of Labor.
    (b) The requirements of the clause at 52.222-35, Equal Opportunity 
for Special Disabled Veterans, Veterans of the Vietnam Era, and Other 
Eligible Veterans, in any contract with a State or local government (or 
any agency, instrumentality, or subdivision) do not apply to any 
agency, instrumentality, or subdivision of that government that does 
not participate in work on or under the contract.
    (c) The Act requires submission of the VETS-100 Report in all cases 
where the contractor or subcontractor has received an award of $25,000 
or more, except for awards to State and local governments, and foreign 
organizations where the workers are recruited outside of the United 
States.


22.1304  Procedures.

    To verify if a proposed contractor is current with its submission 
of the VETS-100 Report, the contracting officer may--
    (a) Query the Department of Labor's VETS-100 Database via the 
Internet at http://www.vets100.cudenver.edu/vets100search.htm using the 
validation code ``vets'' to proceed with the search in the database; or
    (b) Contact the VETS-100 Reporting Systems via e-mail at 
verify@vets100.com for confirmation, if the proposed contractor 
represents that

[[Page 53489]]

it has submitted the VETS-100 Report and is not listed in the database.


22.1305  Waivers.

    (a) The Deputy Assistant Secretary for Federal Contract Compliance 
Programs, Department of Labor (Deputy Assistant Secretary of Labor), 
may waive any or all of the terms of the clause at 52.222-35, Equal 
Opportunity for Special Disabled Veterans, Veterans of the Vietnam Era, 
and Other Eligible Veterans for--
    (1) Any contract if a waiver is in the national interest; or
    (2) Groups or categories of contracts if a waiver is in the 
national interest and it is--
    (i) Impracticable to act on each request individually; and
    (ii) Determined that the waiver will substantially contribute to 
convenience in administering the Act.
    (b) The head of the agency may waive any requirement in this 
subpart when it is determined that the contract is essential to the 
national security, and that its award without complying with such 
requirements is necessary to the national security. Upon making such a 
determination, the head of the agency must notify the Deputy Assistant 
Secretary of Labor in writing within 30 days.
    (c) The contracting officer must submit requests for waivers in 
accordance with agency procedures.
    (d) The Deputy Assistant Secretary of Labor may withdraw an 
approved waiver for a specific contract or group of contracts to be 
awarded, when in the Deputy's judgment such action is necessary to 
achieve the purposes of the Act. The withdrawal does not apply to 
awarded contracts. For procurements entered into by sealed bidding, 
such withdrawal does not apply unless the withdrawal is made more than 
10 calendar days before the date set for the opening of bids.


22.1306  Department of Labor notices and reports.

    (a) The contracting officer must furnish to the contractor 
appropriate notices for posting when they are prescribed by the Deputy 
Assistant Secretary of Labor (see http://www2.dol.gov/dol/esa/public/
ofcp__org.htm).
    (b) The Act requires contractors and subcontractors to submit a 
report at least annually to the Secretary of Labor regarding employment 
of special disabled veterans, veterans of the Vietnam era, and other 
eligible veterans unless all of the terms of the clause at 52.222-35, 
Equal Opportunity for Special Disabled Veterans, Veterans of the 
Vietnam Era, and Other Eligible Veterans, have been waived (see 
22.1305). The contractor and subcontractor must use Form VETS-100, 
Federal Contractor Veterans'' Employment Report, to submit the required 
reports.


22.1307  Collective bargaining agreements.

    If performance under the clause at 52.222-35, Equal Opportunity for 
Special Disabled Veterans, Veterans of the Vietnam Era, and Other 
Eligible Veterans, may necessitate a revision of a collective 
bargaining agreement, the contracting officer must advise the affected 
labor unions that the Department of Labor will give them appropriate 
opportunity to present their views. However, neither the contracting 
officer nor any representative of the contracting officer may discuss 
with the contractor or any labor representative any aspect of the 
collective bargaining agreement.


22.1308  Complaint procedures.

    Following agency procedures, the contracting office must forward 
any complaints received about the administration of the Act to the 
Veterans'' Employment and Training Service of the Department of Labor, 
or through the local Veterans' Employment Representative or designee, 
at the local State employment office. The Deputy Assistant Secretary of 
Labor is responsible for investigating complaints.


22.1309  Actions because of noncompliance.

    The contracting officer must take necessary action as soon as 
possible upon notification by the appropriate agency official to 
implement any sanctions imposed on a contractor by the Department of 
Labor for violations of the clause at 52.222-35, Equal Opportunity for 
Special Disabled Veterans, Veterans of the Vietnam Era, and Other 
Eligible Veterans. These sanctions (see 41 CFR 60-250.66) may include--
    (a) Withholding payments;
    (b) Termination or suspension of the contract; or
    (c) Debarment of the contractor.


22.1310  Solicitation provision and contract clauses.

    (a)(1) Insert the clause at 52.222-35, Equal Opportunity for 
Special Disabled Veterans, Veterans of the Vietnam Era, and Other 
Eligible Veterans, in solicitations and contracts if the expected value 
is $25,000 or more, except when--
    (i) Work is performed outside the United States by employees 
recruited outside the United States; or
    (ii) The Deputy Assistant Secretary of Labor has waived, in 
accordance with 22.1305(a) or the head of the agency has waived, in 
accordance with 22.1305(b) all of the terms of the clause.
    (2) If the Deputy Assistant Secretary of Labor or the head of the 
agency waives one or more (but not all) of the terms of the clause, use 
the basic clause with its Alternate I.
    (b) Insert the clause at 52.222-37, Employment Reports on Special 
Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible 
Veterans, in solicitations and contracts containing the clause at 
52.222-35, Equal Opportunity for Special Disabled Veterans, Veterans of 
the Vietnam Era, and Other Eligible Veterans.
    (c) Insert the provision at 52.222-38, Compliance with Veterans' 
Employment Reporting Requirements, in solicitations when it is 
anticipated the contract award will exceed the simplified acquisition 
threshold and the contract is not for acquisition of commercial items.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    6. Amend section 52.212-5 by revising the date of the clause; and 
revising paragraphs (b)(13), (b)(15), and (e)(2) to read as follows:


52.212-5  Contract Terms and Conditions Required to Implement Statutes 
or Executive Orders--Commercial Items.

* * * * *

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR 
EXECUTIVE ORDERS--COMMERCIAL ITEMS (DEC 2001)

* * * * *
    (b) * * *
    ____________(13) 52.222-35, Equal Opportunity for Special 
Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible 
Veterans (38 U.S.C. 4212).
* * * * *
    ____________(15) 52.222-37, Employment Reports on Special 
Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible 
Veterans (38 U.S.C. 4212).
* * * * *
    (e) * * *
    (2) 52.222-35, Equal Opportunity for Special Disabled Veterans, 
Veterans of the Vietnam Era, and Other Eligible Veterans (38 U.S.C. 
4212);


    7. Amend section 52.213-4 by revising the date of the clause; by 
redesignating (b)(1)(ii) through (b)(1)(xii) as (b)(1)(iii) through 
(b)(1)(xiii), and adding a new (b)(1)(ii); and by revising newly 
redesignated paragraphs (b)(1)(iv) and (b)(1)(vi) to read as follows:

[[Page 53490]]

52.213-4  Terms and Conditions--Simplified Acquisitions (Other Than 
Commercial Items).

* * * * *

TERMS AND CONDITIONS--SIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL 
ITEMS) (DEC 2001)

* * * * *
    (b) * * *
    (1) * * *
    (ii) 52.222-21, Prohibition of Segregated Facilities (FEB 1999) 
(E.O. 11246) (Applies to contracts over $10,000).
* * * * *
    (iv) 52.222-35, Equal Opportunity for Special Disabled Veterans, 
Veterans of the Vietnam Era, and Other Eligible Veterans (DEC 2001) 
(38 U.S.C. 4212) (Applies to contracts of $25,000 or more).
* * * * *
    (vi) 52.222-37, Employment Reports on Special Disabled Veterans, 
Veterans of the Vietnam Era, and Other Eligible Veterans (DEC 2001) 
(38 U.S.C. 4212) (Applies to contracts of $25,000 or more).


    8. Revise the section heading and text of 52.222-35 to read as 
follows:


52.222-35  Equal Opportunity for Special Disabled Veterans, Veterans of 
the Vietnam Era, and Other Eligible Veterans.

    As prescribed in 22.1310(a)(1), insert the following clause:

EQUAL OPPORTUNITY FOR SPECIAL DISABLED VETERANS, VETERANS OF THE 
VIETNAM ERA, AND OTHER ELIGIBLE VETERANS (DEC 2001)

    (a) Definitions. As used in this clause--
    All employment openings means all positions except executive and 
top management, those positions that will be filled from within the 
Contractor's organization, and positions lasting 3 days or less. 
This term includes full-time employment, temporary employment of 
more than 3 days duration, and part-time employment.
    Executive and top management means any employee--
    (1) Whose primary duty consists of the management of the 
enterprise in which the individual is employed or of a customarily 
recognized department or subdivision thereof;
    (2) Who customarily and regularly directs the work of two or 
more other employees;
    (3) Who has the authority to hire or fire other employees or 
whose suggestions and recommendations as to the hiring or firing and 
as to the advancement and promotion or any other change of status of 
other employees will be given particular weight;
    (4) Who customarily and regularly exercises discretionary 
powers; and
    (5) Who does not devote more than 20 percent or, in the case of 
an employee of a retail or service establishment, who does not 
devote more than 40 percent of total hours of work in the work week 
to activities that are not directly and closely related to the 
performance of the work described in paragraphs (1) through (4) of 
this definition. This paragraph (5) does not apply in the case of an 
employee who is in sole charge of an establishment or a physically 
separated branch establishment, or who owns at least a 20 percent 
interest in the enterprise in which the individual is employed.
    Other eligible veteran means any other veteran who served on 
active duty during a war or in a campaign or expedition for which a 
campaign badge has been authorized.
    Positions that will be filled from within the Contractor's 
organization means employment openings for which the Contractor will 
give no consideration to persons outside the Contractor's 
organization (including any affiliates, subsidiaries, and parent 
companies) and includes any openings the Contractor proposes to fill 
from regularly established ``recall'' lists. The exception does not 
apply to a particular opening once an employer decides to consider 
applicants outside of its organization.
    Qualified special disabled veteran means a special disabled 
veteran who satisfies the requisite skill, experience, education, 
and other job-related requirements of the employment position such 
veteran holds or desires, and who, with or without reasonable 
accommodation, can perform the essential functions of such position.
    Special disabled veteran means--
    (1) A veteran who is entitled to compensation (or who but for 
the receipt of military retired pay would be entitled to 
compensation) under laws administered by the Department of Veterans 
Affairs for a disability--
    (i) Rated at 30 percent or more; or
    (ii) Rated at 10 or 20 percent in the case of a veteran who has 
been determined under 38 U.S.C. 3106 to have a serious employment 
handicap (i.e., a significant impairment of the veteran's ability to 
prepare for, obtain, or retain employment consistent with the 
veteran's abilities, aptitudes, and interests); or
    (2) A person who was discharged or released from active duty 
because of a service-connected disability.
    Veteran of the Vietnam era means a person who--
    (1) Served on active duty for a period of more than 180 days and 
was discharged or released from active duty with other than a 
dishonorable discharge, if any part of such active duty occurred--
    (i) In the Republic of Vietnam between February 28, 1961, and 
May 7, 1975; or
    (ii) Between August 5, 1964, and May 7, 1975, in all other 
cases; or
    (2) Was discharged or released from active duty for a service-
connected disability if any part of the active duty was performed--
    (i) In the Republic of Vietnam between February 28, 1961, and 
May 7, 1975; or
    (ii) Between August 5, 1964, and May 7, 1975, in all other 
cases.
    (b) General. (1) The Contractor shall not discriminate against 
the individual because the individual is a special disabled veteran, 
a veteran of the Vietnam era, or other eligible veteran, regarding 
any position for which the employee or applicant for employment is 
qualified. The Contractor shall take affirmative action to employ, 
advance in employment, and otherwise treat qualified special 
disabled veterans, veterans of the Vietnam era, and other eligible 
veterans without discrimination based upon their disability or 
veterans' status in all employment practices such as--
    (i) Recruitment, advertising, and job application procedures;
    (ii) Hiring, upgrading, promotion, award of tenure, demotion, 
transfer, layoff, termination, right of return from layoff and 
rehiring;
    (iii) Rate of pay or any other form of compensation and changes 
in compensation;
    (iv) Job assignments, job classifications, organizational 
structures, position descriptions, lines of progression, and 
seniority lists;
    (v) Leaves of absence, sick leave, or any other leave;
    (vi) Fringe benefits available by virtue of employment, whether 
or not administered by the Contractor;
    (vii) Selection and financial support for training, including 
apprenticeship, and on-the-job training under 38 U.S.C. 3687, 
professional meetings, conferences, and other related activities, 
and selection for leaves of absence to pursue training;
    (viii) Activities sponsored by the Contractor including social 
or recreational programs; and
    (ix) Any other term, condition, or privilege of employment.
    (2) The Contractor shall comply with the rules, regulations, and 
relevant orders of the Secretary of Labor issued under the Vietnam 
Era Veterans' Readjustment Assistance Act of 1972 (the Act), as 
amended (38 U.S.C. 4211 and 4212).
    (c) Listing openings. (1) The Contractor shall immediately list 
all employment openings that exist at the time of the execution of 
this contract and those which occur during the performance of this 
contract, including those not generated by this contract, and 
including those occurring at an establishment of the Contractor 
other than the one where the contract is being performed, but 
excluding those of independently operated corporate affiliates, at 
an appropriate local public employment service office of the State 
wherein the opening occurs. Listing employment openings with the 
U.S. Department of Labor's America's Job Bank shall satisfy the 
requirement to list jobs with the local employment service office.
    (2) The Contractor shall make the listing of employment openings 
with the local employment service office at least concurrently with 
using any other recruitment source or effort and shall involve the 
normal obligations of placing a bona fide job order, including 
accepting referrals of veterans and nonveterans. This listing of 
employment openings does not require hiring any particular job 
applicant or hiring from any particular group of job applicants and 
is not intended to relieve the Contractor from any requirements of 
Executive orders or regulations concerning nondiscrimination in 
employment.
    (3) Whenever the Contractor becomes contractually bound to the 
listing terms of this clause, it shall advise the State public 
employment agency in each State where it

[[Page 53491]]

has establishments of the name and location of each hiring location 
in the State. As long as the Contractor is contractually bound to 
these terms and has so advised the State agency, it need not advise 
the State agency of subsequent contracts. The Contractor may advise 
the State agency when it is no longer bound by this contract clause.
    (d) Applicability. This clause does not apply to the listing of 
employment openings that occur and are filled outside the 50 States, 
the District of Columbia, the Commonwealth of Puerto Rico, the 
Commonwealth of the Northern Mariana Islands, American Samoa, Guam, 
the Virgin Islands of the United States, and Wake Island.
    (e) Postings. (1) The Contractor shall post employment notices 
in conspicuous places that are available to employees and applicants 
for employment.
    (2) The employment notices shall--
    (i) State the rights of applicants and employees as well as the 
Contractor's obligation under the law to take affirmative action to 
employ and advance in employment qualified employees and applicants 
who are special disabled veterans, veterans of the Vietnam era, and 
other eligible veterans; and
    (ii) Be in a form prescribed by the Deputy Assistant Secretary 
for Federal Contract Compliance Programs, Department of Labor 
(Deputy Assistant Secretary of Labor), and provided by or through 
the Contracting Officer.
    (3) The Contractor shall ensure that applicants or employees who 
are special disabled veterans are informed of the contents of the 
notice (e.g., the Contractor may have the notice read to a visually 
disabled veteran, or may lower the posted notice so that it can be 
read by a person in a wheelchair).
    (4) The Contractor shall notify each labor union or 
representative of workers with which it has a collective bargaining 
agreement, or other contract understanding, that the Contractor is 
bound by the terms of the Act and is committed to take affirmative 
action to employ, and advance in employment, qualified special 
disabled veterans, veterans of the Vietnam era, and other eligible 
veterans.
    (f) Noncompliance. If the Contractor does not comply with the 
requirements of this clause, the Government may take appropriate 
actions under the rules, regulations, and relevant orders of the 
Secretary of Labor issued pursuant to the Act.
    (g) Subcontracts. The Contractor shall insert the terms of this 
clause in all subcontracts or purchase orders of $25,000 or more 
unless exempted by rules, regulations, or orders of the Secretary of 
Labor. The Contractor shall act as specified by the Deputy Assistant 
Secretary of Labor to enforce the terms, including action for 
noncompliance.

(End of clause)

    Alternate I (Dec 2001). As prescribed in 22.1310(a)(2), add the 
following as a preamble to the clause:
    Notice: The following term(s) of this clause are waived for this 
contract:________________[List term(s)].


    9. Revise the section heading and text of 52.222-37 to read as 
follows:


52.222-37  Employment Reports on Special Disabled Veterans, Veterans of 
the Vietnam Era, and Other Eligible Veterans.

    As prescribed in 22.1310(b), insert the following clause:

EMPLOYMENT REPORTS ON SPECIAL DISABLED VETERANS, VETERANS OF THE 
VIETNAM ERA, AND OTHER ELIGIBLE VETERANS (DEC 2001)

    (a) Unless the Contractor is a State or local government agency, 
the Contractor shall report at least annually, as required by the 
Secretary of Labor, on--
    (1) The number of special disabled veterans, the number of 
veterans of the Vietnam era, and other eligible veterans in the 
workforce of the Contractor by job category and hiring location; and
    (2) The total number of new employees hired during the period 
covered by the report, and of the total, the number of special 
disabled veterans, the number of veterans of the Vietnam era, and 
the number of other eligible veterans; and
    (3) The maximum number and the minimum number of employees of 
the Contractor during the period covered by the report.
    (b) The Contractor shall report the above items by completing 
the Form VETS-100, entitled ``Federal Contractor Veterans'' 
Employment Report (VETS-100 Report)''.
    (c) The Contractor shall submit VETS-100 Reports no later than 
September 30 of each year beginning September 30, 1988.
    (d) The employment activity report required by paragraph (a)(2) 
of this clause shall reflect total hires during the most recent 12-
month period as of the ending date selected for the employment 
profile report required by paragraph (a)(1) of this clause. 
Contractors may select an ending date--
    (1) As of the end of any pay period between July 1 and August 31 
of the year the report is due; or
    (2) As of December 31, if the Contractor has prior written 
approval from the Equal Employment Opportunity Commission to do so 
for purposes of submitting the Employer Information Report EEO-1 
(Standard Form 100).
    (e) The Contractor shall base the count of veterans reported 
according to paragraph (a) of this clause on voluntary disclosure. 
Each Contractor subject to the reporting requirements at 38 U.S.C. 
4212 shall invite all special disabled veterans, veterans of the 
Vietnam era, and other eligible veterans who wish to benefit under 
the affirmative action program at 38 U.S.C. 4212 to identify 
themselves to the Contractor. The invitation shall state that--
    (1) The information is voluntarily provided;
    (2) The information will be kept confidential;
    (3) Disclosure or refusal to provide the information will not 
subject the applicant or employee to any adverse treatment; and
    (4) The information will be used only in accordance with the 
regulations promulgated under 38 U.S.C. 4212.
    (f) The Contractor shall insert the terms of this clause in all 
subcontracts or purchase orders of $25,000 or more unless exempted 
by rules, regulations, or orders of the Secretary of Labor.

(End of clause)


    10. Add section 52.222-38 to read as follows:


52.222-38  Compliance with Veterans' Employment Reporting Requirements.

    As prescribed in 22.1310(c), insert the following provision:

COMPLIANCE WITH VETERANS' EMPLOYMENT REPORTING REQUIREMENTS (DEC 2001)

    By submission of its offer, the offeror represents that, if it 
is subject to the reporting requirements of 38 U.S.C. 4212(d) (i.e., 
if it has any contract containing Federal Acquisition Regulation 
clause 52.222-37, Employment Reports on Special Disabled Veterans, 
Veterans of the Vietnam Era, and Other Eligible Veterans), it has 
submitted the most recent VETS-100 Report required by that clause.

(End of provision)


    11. Amend section 52.244-6 by revising the date of the clause, the 
introductory text of paragraph (c)(1), and paragraph(c)(1)(iii) to read 
as follows:


52.244-6  Subcontracts for Commercial Items.

* * * * *

SUBCONTRACTS FOR COMMERCIAL ITEMS (DEC 2001)

* * * * *
    (c)(1) The Contractor shall insert the following clauses in 
subcontracts for commercial items:
* * * * *
    (iii) 52.222-35, Equal Opportunity for Special Disabled 
Veterans, Veterans of the Vietnam Era, and Other Eligible Veterans 
(Dec 2001) (38 U.S.C. 4212(a));
* * * * *

[FR Doc. 01-26299 Filed 10-19-01; 8:45 am]
BILLING CODE 6820-EP-P