[Federal Register Volume 70, Number 220 (Wednesday, November 16, 2005)]
[Proposed Rules]
[Pages 69467-69472]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-22742]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
 ========================================================================
 

  Federal Register / Vol. 70, No. 220 / Wednesday, November 16, 2005 / 
Proposed Rules  

[[Page 69467]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 532

RIN 3206-AK94


Prevailing Rate Systems; North American Industry Classification 
System Based Federal Wage System Wage Surveys

AGENCY: Office of Personnel Management.

ACTION: Proposed rule with request for comments.

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

SUMMARY: The Office of Personnel Management is issuing a proposed rule 
that would replace the Standard Industrial Classification codes 
currently used in Federal Wage System (FWS) regulations with the more 
recent North American Industry Classification System (NAICS) codes, 
published by the Office of Management and Budget. The purpose of this 
change is to update the FWS wage survey industry regulations by 
adopting the new NAICS system.

DATES: We must receive comments on or before December 16, 2005.

ADDRESSES: Send or deliver comments to Donald J. Winstead, Deputy 
Associate Director for Pay and Performance Policy, Strategic Human 
Resources Policy Division, Office of Personnel Management, Room 7H31, 
1900 E Street, NW., Washington, DC 20415-8200; e-mail [email protected]; or FAX: (202) 606-4264.

FOR FURTHER INFORMATION CONTACT: Madeline Gonzalez, (202) 606-2838; e-
mail [email protected]; or FAX: (202) 606-4264.

SUPPLEMENTARY INFORMATION: The goal of the Federal Wage System (FWS) is 
to pay blue-collar Federal employees according to local prevailing 
rates. To determine local prevailing rates, the Department of Defense, 
the lead agency for all regular FWS wage surveys, collects wage data 
for a prescribed list of industries in each FWS wage area annually. The 
Office of Personnel Management (OPM) is responsible for prescribing the 
required industries to be surveyed and the conditions under which 
required industrial coverage may be augmented for particular surveys. 
Under the current regulations, the industries surveyed are defined 
under the Standard Industrial Classification (SIC) system. The Office 
of Management and Budget developed the North American Industry 
Classification System (NAICS) to replace the SIC system. NAICS was 
developed jointly by the United States, Canada, and Mexico to provide 
comparability in statistics about business activity across North 
America.
    NAICS groups establishments into industries based on the activities 
in which they are primarily engaged. It is a comprehensive system 
covering the entire field of economic activities. NAICS groups the 
economy into 20 broad sectors and uses a 6-digit coding system to 
identify particular industries. The first two digits of the code 
designate the sector, the third digit designates the subsector, the 
fourth digit designates the industry group, the fifth digit designates 
the NAICS industry, and the sixth digit designates the national 
industry.
    Because NAICS is now the official industry classification system 
used in the United States, the Federal Prevailing Rate Advisory 
Committee (FPRAC), the national labor-management committee responsible 
for advising OPM on matters concerning the pay of FWS employees, 
established a Wage Survey Methodology Work Group (Work Group) to study 
the desirability and feasibility of replacing the SIC codes currently 
used in FWS regulations with NAICS codes and the effect this change 
would have on industry coverage for FWS wage surveys. The following 
sections of title 5, Code of Federal Regulations, list the industries 
included in the FWS wage surveys by SIC codes:

Section 532.213 Industries included in regular appropriated fund wage 
surveys.
Section 532.221 Industries included in regular nonappropriated fund 
surveys.
Section 532.267 Special wage schedules for aircraft, electronic, and 
optical instrument overhaul and repair positions in the Puerto Rico 
wage area.
Section 532.279 Special wage schedules for printing positions.
Section 532.285 Special wage schedules for supervisors of negotiated 
rate Bureau of Reclamation employees.
Section 532.313 Private sector industries.

    The Work Group recommended to FPRAC that OPM replace all SIC codes 
in the FWS regulations with the most closely corresponding NAICS codes. 
In effect, this would update the FWS wage survey industry regulations 
by adopting the NAICS system, while making as few changes as possible 
in the types of industrial establishments that are already included in 
FWS wage surveys under the SIC system. FPRAC agreed with the Work 
Group's recommendation, and OPM concurs with FPRAC's recommendation.

Regulatory Flexibility Act

    I certify that these regulations would not have a significant 
economic impact on a substantial number of small entities because they 
would affect only Federal agencies and employees.

E.O. 12866, Regulatory Review

    The Office of Management and Budget has reviewed this proposed rule 
in accordance with Executive Order 12866.

List of Subjects in 5 CFR Part 532

    Administrative practice and procedure, Freedom of information, 
Government employees, Reporting and recordkeeping requirements, Wages.

Office of Personnel Management.
Linda M. Springer,
Director.

    Accordingly, the Office of Personnel Management proposes to amend 5 
CFR part 532 as follows:

PART 532--PREVAILING RATE SYSTEMS

    1. The authority citation for part 532 continues to read as 
follows:

    Authority: 5 U.S.C. 5343, 5346; Sec.  532.707 also issued under 
5 U.S.C. 552.

Subpart B--Prevailing Rate Determinations

    2. In Sec.  532.213, revise paragraph (a) to read as follows:


Sec.  532.213  Industries included in regular appropriated fund wage 
surveys.

    (a) The lead agency must include the industries in the following 
North

[[Page 69468]]

American Industry Classification System (NAICS) codes in all regular 
appropriated fund wage surveys:

------------------------------------------------------------------------
 
------------------------------------------------------------------------
Manufacturing.................  NAICS 311 through  All manufacturing
                                 339 (except 323).  classes except
                                                    printing and related
                                                    support activities
                                                    (NAICS 323).
Transportation,                 NAICS 221........  Utilities.
 Communications, Electric,      NAICS 481........  Air transportation.
 Gas, and Sanitary Services.    NAICS 482........  Rail transportation.
                                NAICS 484........  Truck transportation.
                                NAICS 485 (except  Transit and ground
                                 4853).             passenger
                                                    transportation
                                                    except taxi and
                                                    limousine service
                                                    (NAICS 4853).
                                NAICS 487 (except  Scenic and
                                 4872).             sightseeing
                                                    transportation
                                                    except scenic and
                                                    sightseeing
                                                    transportation,
                                                    water (NAICS 4872).
                                NAICS 488 (except  Support activities
                                 4883 and 4884).    for transportation
                                                    except support
                                                    activities for water
                                                    transportation
                                                    (NAICS 4853) and
                                                    support activities
                                                    for road
                                                    transportation
                                                    (NAICS 4854).
                                NAICS 492........  Couriers and
                                NAICS 493........   messengers.
                                NAICS 515........  Warehousing and
                                NAICS 517........   storage.
                                NAICS 5621.......  Broadcasting (except
                                NAICS 5622.......   Internet).
                                                   Telecommunications.
                                                   Waste collection.
                                                   Waste Treatment and
                                                    Disposal.
Wholesale Trade...............  NAICS 423........  Merchant wholesalers--
                                NAICS 424........   durable goods.
                                                   Merchant wholesalers--
                                                    nondurable goods.
------------------------------------------------------------------------

* * * * *
    3. In Sec.  532.221, revise paragraph (a) to read as follows:


Sec.  532.221  Industries included in regular nonappropriated fund 
surveys.

    (a) The lead agency must include the following North American 
Industry Classification System (NAICS) codes in all regular 
nonappropriated fund wage surveys:

------------------------------------------------------------------------
            NAICS                                Title
------------------------------------------------------------------------
Wholesale Trade:
    42312....................  Motor vehicle supplies and new parts.
    4232.....................  Furniture and home furnishing.
    42362....................  Electrical and electronic appliance,
                                television, and radio set.
    42369....................  Other electronic parts and equipment.
    42371....................  Hardware.
    42391....................  Sporting and recreational goods and
                                supplies.
    42399....................  Other miscellaneous durable goods.
    4241.....................  Paper and paper product.
    42421....................  Drugs and druggists' sundries.
    4243.....................  Apparel, piece goods, and notions.
    42445....................  Confectionery.
    4247.....................  Petroleum and petroleum products.
    4249.....................  Miscellaneous nondurable goods.
Retail:
    44132....................  Tire dealers.
    44311....................  Appliance, television, and other
                                electronic stores.
    44411....................  Home centers.
    44611....................  Pharmacies and drug stores.
    4471.....................  Gasoline stations.
    44814....................  Family clothing stores.
    4521.....................  Department stores.
    45299....................  All other general merchandise stores.
    45321....................  Office supplies and stationery stores.
    4542.....................  Vending machine operators.
Arts, Entertainment, and
 Recreation:
    71391....................  Golf courses and country clubs.
    71395....................  Bowling centers.
Accommodations and Food
 Services:
    72111....................  Hotels (except casino hotels) and motels.
    7221.....................  Full-service restaurants.
    7222.....................  Limited-service eating places.
    7224.....................  Drinking places (alcoholic beverages).
------------------------------------------------------------------------

* * * * *
    4. In Sec.  532.267, revise paragraph (c)(1) to read as follows:


Sec.  532.267  Special wage schedules for aircraft, electronic, and 
optical instrument overhaul and repair positions in the Puerto Rico 
wage area.

* * * * *
    (c) * * *
    (1) Surveys must, at a minimum, include the air transportation and 
electronics industries in the following

[[Page 69469]]

North American Industry Classification System (NAICS) codes:

------------------------------------------------------------------------
               NAICS                                Title
------------------------------------------------------------------------
3341..............................  Computer and peripheral equipment
                                     manufacturing.
33422.............................  Radio and television broadcasting
                                     and wireless communications
                                     equipment manufacturing.
33429.............................  Other communications equipment
                                     manufacturing.
3343..............................  Audio and video equipment
                                     manufacturing.
334412............................  Bare printed circuit board
                                     manufacturing.
334413............................  Semiconductor and related device
                                     manufacturing.
334418............................  Printed circuit assembly (electronic
                                     assembly) manufacturing.
334419............................  Other electronic component
                                     manufacturing.
334511............................  Search, detection, navigation,
                                     guidance, aeronautical, and
                                     nautical system and instrument
                                     manufacturing.
334613............................  Magnetic and optical recording media
                                     manufacturing.
42342.............................  Office equipment merchant
                                     wholesalers.
42343.............................  Computer and computer peripheral
                                     equipment and software merchant
                                     wholesalers.
4811..............................  Scheduled air transportation.
4812..............................  Nonscheduled air transportation.
4879..............................  Scenic and sightseeing
                                     transportation, other.
4881..............................  Support activities for air
                                     transportation.
4921..............................  Couriers.
56172.............................  Janitorial services.
62191.............................  Ambulance services.
81142.............................  Reupholstery and furniture repair.
------------------------------------------------------------------------

* * * * *
    5. In Sec.  532.279, revise paragraphs (c), introductory text, and 
(c)(1) to read as follows:


Sec.  532.279  Special wage schedules for printing positions.

* * * * *
    (c) The lead agency must establish survey specifications for the 
printing survey as follows:
    (1) The lead agency must include North American Industry 
Classification System (NAICS) codes 323110 and 323114 in the printing 
survey and may add other NAICS codes in subsector 323 to the survey 
based on its survey experience.
* * * * *
    6. In Sec.  532.285, revise paragraph (c)(1) to read as follows:


Sec.  532.285  Special wage schedules for supervisors of negotiated 
rate Bureau of Reclamation employees.

* * * * *
    (c) * * *
    (1) Based on Bureau of Reclamation activities and types of 
supervisory positions in the special wage area, the Bureau of 
Reclamation must survey private industry companies, with no minimum 
employment size requirement for establishments, in the following North 
American Industry Classification System code subsectors:

------------------------------------------------------------------------
             Subsector                            Industry
------------------------------------------------------------------------
211...............................  Oil and gas extraction.
212...............................  Mining (except oil and gas).
213...............................  Support activities for mining.
221...............................  Utilities.
333...............................  Machinery manufacturing.
334...............................  Computer and electronic product
                                     manufacturing.
335...............................  Electrical equipment, appliance, and
                                     component manufacturing.
484...............................  Truck transportation.
492...............................  Couriers and messengers.
493...............................  Warehousing and storage.
515...............................  Broadcasting (except Internet).
517...............................  Telecommunications.
562...............................  Waste management and remediation
                                     services.
811...............................  Repair and maintenance.
------------------------------------------------------------------------

* * * * *
    7. Revise Sec.  532.313 to read as follows:


Sec.  532.313  Private sector industries.

    (a) For appropriated fund surveys, the lead agency must use the 
private sector industries in the following North American Industry 
Classification System (NAICS) codes when it makes its wage schedule 
determinations for each specialized Federal industry:

------------------------------------------------------------------------
 
------------------------------------------------------------------------
                                Aircraft
------------------------------------------------------------------------
NAICS 332912......................  Fluid power valve and hose fitting
                                     manufacturing.
NAICS 336411......................  Aircraft manufacturing.
NAICS 336412......................  Aircraft engine and engine parts
                                     manufacturing.
NAICS 336413......................  Other aircraft part and auxiliary
                                     equipment manufacturing.
NAICS 336415......................  Guided missile and space vehicle
                                     propulsion unit and propulsion unit
                                     parts manufacturing.
NAICS 336419......................  Other guided missile and space
                                     vehicle parts and auxiliary
                                     equipment manufacturing.

[[Page 69470]]

 
NAICS 4811........................  Scheduled air transportation.
NAICS 4812........................  Nonscheduled air transportation.
NAICS 4879........................  Scenic and sightseeing
                                     transportation, other.
NAICS 4881........................  Support activities for air
                                     transportation.
NAICS 4921........................  Couriers.
NAICS 54171.......................  Research and development in the
                                     physical, engineering, and life
                                     sciences.
NAICS 56172.......................  Janitorial services.
NAICS 62191.......................  Ambulance services.
NAICS 81142.......................  Reupholstery and furniture repair.
-----------------------------------
                               Ammunition
------------------------------------------------------------------------
NAICS 32592.......................   Explosives manufacturing.
NAICS 332992......................  Small arms ammunition manufacturing.
NAICS 332993......................  Ammunition (except small arms)
                                     manufacturing.
-----------------------------------
                      Artillery and combat vehicles
------------------------------------------------------------------------
NAICS 2211........................  Electric power generation,
                                     transmission, and distribution.
NAICS 2212........................  Natural gas distribution.
NAICS 32732.......................  Ready-mix concrete manufacturing.
NAICS 332212......................  Hand and edge tool manufacturing.
NAICS 332323......................  Ornamental and architectural metal
                                     work manufacturing.
NAICS 332439......................  Other metal container manufacturing.
NAICS 332995......................  Other ordnance and accessories
                                     manufacturing.
NAICS 332999......................  All other miscellaneous fabricated
                                     metal product manufacturing.
NAICS 33311.......................  Agricultural implement
                                     manufacturing.
NAICS 33312.......................  Construction machinery
                                     manufacturing.
NAICS 333611......................  Turbine and turbine generator set
                                     unit manufacturing.
NAICS 333618......................  Other engine equipment
                                     manufacturing.
NAICS 333922......................  Conveyor and conveying equipment
                                     manufacturing.
NAICS 333923......................  Overhead traveling crane, hoist, and
                                     monorail system manufacturing.
NAICS 333924......................  Industrial truck, tractor, trailer,
                                     and stacker machinery
                                     manufacturing.
NAICS 3361........................  Motor vehicle manufacturing.
NAICS 336211......................  Motor vehicle body manufacturing.
NAICS 336212......................  Truck trailer manufacturing.
NAICS 336312......................  Gasoline engine and engine parts
                                     manufacturing.
NAICS 336322......................  Other motor vehicle electrical and
                                     electronic equipment manufacturing.
NAICS 33633.......................  Motor vehicle steering and
                                     suspension components (except
                                     spring) manufacturing.
NAICS 33634.......................  Motor vehicle brake system
                                     manufacturing.
NAICS 33635.......................  Motor vehicle transmission and power
                                     train parts manufacturing.
NAICS 336399......................  All other motor vehicle parts
                                     manufacturing.
NAICS 33651.......................  Railroad rolling stock
                                     manufacturing.
NAICS 336992......................  Military armored vehicle, tank, and
                                     tank component manufacturing.
NAICS 4231........................  Motor vehicle and motor vehicle
                                     parts and supplies merchant
                                     wholesalers.
NAICS 42381.......................  Construction and mining (except oil
                                     well) machinery and equipment
                                     merchant wholesalers.
NAICS 42382.......................  Farm and garden machinery and
                                     equipment merchant wholesalers.
NAICS 4413........................  Automotive parts, accessories, and
                                     tire stores.
NAICS 44421.......................  Outdoor power equipment stores.
NAICS 484.........................  Truck transportation.
NAICS 4862........................  Pipeline transportation of natural
                                     gas.
NAICS 492.........................  Couriers and messengers.
NAICS 5171........................  Wired telecommunications carriers.
NAICS 5172........................  Wireless telecommunications carriers
                                     (except satellite).
NAICS 5173........................  Telecommunications resellers.
NAICS 5621........................  Waste collection.
NAICS 81299.......................  All other personal services.
-----------------------------------
                             Communications
------------------------------------------------------------------------
NAICS 33422.......................  Radio and television broadcasting
                                     and wireless communications
                                     equipment manufacturing.
NAICS 33429.......................  Other communications equipment
                                     manufacturing.
NAICS 334511......................  Search, detection, navigation,
                                     guidance, aeronautical and nautical
                                     system and instrument
                                     manufacturing.
NAICS 334514......................  Totalizing fluid meter and counting
                                     device manufacturing.
NAICS 334515......................  Instrument manufacturing for
                                     measuring and testing electricity
                                     and electrical signals.
NAICS 335311......................  Power, distribution, and specialty
                                     transformer manufacturing.
NAICS 48531.......................  Taxi service.
NAICS 5151........................  Radio and television broadcasting.
NAICS 5152........................  Cable and other subscription
                                     carriers.
NAICS 5171........................  Wired telecommunications carriers.
NAICS 5172........................  Wireless telecommunications carriers
                                     (except satellite).
NAICS 5173........................  Telecommunications resellers.
NAICS 5174........................  Satellite telecommunications.
NAICS 5179........................  Other telecommunications.
-----------------------------------

[[Page 69471]]

 
                               Electronics
------------------------------------------------------------------------
NAICS 3341........................  Computer and peripheral equipment
                                     manufacturing.
NAICS 33422.......................  Radio and television broadcasting
                                     and wireless communications
                                     equipment manufacturing.
NAICS 33429.......................  Other communications equipment
                                     manufacturing.
NAICS 33431.......................  Audio and video equipment
                                     manufacturing.
NAICS 334412......................  Bare printed circuit board
                                     manufacturing.
NAICS 334413......................  Semiconductor and related device
                                     manufacturing.
NAICS 334414......................  Electronic capacitor manufacturing.
NAICS 334415......................  Electronic resistor manufacturing.
NAICS 334416......................  Electronic coil, transformer, and
                                     other inductor manufacturing.
NAICS 334417......................  Electronic connector manufacturing.
NAICS 334418......................  Printed circuit assembly (electronic
                                     assembly) manufacturing.
NAICS 334419......................  Other electronic component
                                     manufacturing.
NAICS 334511......................  Search, detection, navigation,
                                     guidance, aeronautical and nautical
                                     system and instrument
                                     manufacturing.
NAICS 334613......................  Magnetic and optical recording media
                                     manufacturing.
NAICS 42342.......................  Office equipment merchant
                                     wholesalers.
NAICS 42343.......................  Computer and computer peripheral
                                     equipment and software merchant
                                     wholesalers.
-----------------------------------
                             Guided missiles
------------------------------------------------------------------------
NAICS 332912......................  Fluid power valve and hose fitting
                                     manufacturing.
NAICS 3341........................  Computer and peripheral equipment
                                     manufacturing.
NAICS 33422.......................  Radio and television broadcasting
                                     and wireless communications
                                     equipment manufacturing.
NAICS 33429.......................  Other communications equipment
                                     manufacturing.
NAICS 334418......................  Printed circuit assembly (electronic
                                     assembly) manufacturing.
NAICS 334511......................  Search, detection, navigation,
                                     guidance, aeronautical and nautical
                                     system and instrument
                                     manufacturing.
NAICS 334613......................  Magnetic and optical recording media
                                     manufacturing.
NAICS 3364........................  Aerospace product and parts
                                     manufacturing.
NAICS 54131.......................  Architectural services.
NAICS 54133.......................  Engineering services.
NAICS 54136.......................  Geophysical surveying and mapping
                                     services.
NAICS 54137.......................  Surveying and mapping (except
                                     geophysical) services.
NAICS 54171.......................  Research and development in the
                                     physical, engineering, and life
                                     sciences.
-----------------------------------
                          Heavy duty equipment
------------------------------------------------------------------------
NAICS 332439......................  Other metal container manufacturing.
NAICS 332999......................  All other miscellaneous fabricated
                                     metal product manufacturing.
NAICS 33312.......................  Construction machinery
                                     manufacturing.
NAICS 333923......................  Overhead traveling crane, hoist, and
                                     monorail system manufacturing.
NAICS 333924......................  Industrial truck, tractor, trailer,
                                     and stacker machinery
                                     manufacturing.
NAICS 33651.......................  Railroad rolling stock
                                     manufacturing.
NAICS 42381.......................  Construction and mining (except oil
                                     well) machinery and equipment
                                     wholesalers.
-----------------------------------
                              Shipbuilding
------------------------------------------------------------------------
NAICS 336611......................  Ship building and repairing.
NAICS 48839.......................  Other support activities for water
                                     transportation.
-----------------------------------
                   Sighting and fire control equipment
------------------------------------------------------------------------
NAICS 333314......................  Optical instrument and lens
                                     manufacturing.
NAICS 3341........................  Computer and peripheral equipment
                                     manufacturing.
NAICS 33422.......................  Radio and television broadcasting
                                     and wireless communications
                                     equipment manufacturing.
NAICS 33429.......................  Other communications equipment
                                     manufacturing.
NAICS 334418......................  Printed circuit assembly (electronic
                                     assembly) manufacturing.
NAICS 334511......................  Search, detection, navigation,
                                     guidance, aeronautical and nautical
                                     system and instrument
                                     manufacturing.
NAICS 334613......................  Magnetic and optical recording media
                                     manufacturing.
-----------------------------------
                               Small arms
------------------------------------------------------------------------
NAICS 332994......................  Small arms manufacturing.
------------------------------------------------------------------------


[[Page 69472]]

    (b) The lead agency must limit special job coverage for industries 
in NAICS codes 2211, 2212, 32732, 484, 4862, 5621, 492, 5171, 5172, and 
5173 to automotive mechanic, diesel engine mechanic, and heavy mobile 
equipment mechanic.
    (c) For nonappropriated fund wage surveys, the lead agency must use 
NAICS codes 71111, 7221, 7222, 72231, 72232, and 7224 (eating and 
drinking places) when it determines a wage schedule for a specialized 
industry.

[FR Doc. 05-22742 Filed 11-15-05; 8:45 am]
BILLING CODE 6325-39-P