[Federal Register Volume 71, Number 118 (Tuesday, June 20, 2006)]
[Rules and Regulations]
[Pages 35373-35378]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-9667]



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 Rules and Regulations
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  Federal Register / Vol. 71, No. 118 / Tuesday, June 20, 2006 / Rules 
and Regulations  

[[Page 35373]]



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: Final rule.

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

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

DATES: Effective date: This rule is effective on July 20, 2006.
    Applicability date: This rule applies for local wage surveys 
beginning on or after November 1, 2006.

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

SUPPLEMENTARY INFORMATION: On November 16, 2005, the Office of 
Personnel Management (OPM) issued a proposed rule (70 FR 69467) to 
replace all Standard Industrial Classification (SIC) codes in the 
Federal Wage System (FWS) regulations with the most closely 
corresponding North American Industry Classification System (NAICS) 
codes. Adopting the NAICS system will update the FWS wage survey 
industry regulations, while making as few changes as possible in the 
types of industrial establishments already included in FWS wage surveys 
under the SIC system. These regulations use 2002 NAICS codes. As the 
Office of Management and Budget updates the NAICS periodically, we will 
update these regulations to correspond to the updated NAICS codes based 
on advice we receive from the Federal Prevailing Rate Advisory 
Committee.
    The proposed rule had a 30-day public comment period, during which 
OPM received no comments. However, the final rule incorporates some 
formatting changes in the industry charts to improve consistency and 
readability, and three additional minor changes that are consistent 
with the intent of the proposed rule. First, section 532.313(b) of 
title 5, Code of Federal Regulations, limits special job coverage to 
Automotive Mechanic, Engine Mechanic, and Heavy Mobile Equipment 
Mechanic only in certain industries included in surveys concerning the 
Artillery and Combat Vehicles specialized industry, not in all of the 
specialized industries, as was originally proposed. Second, the four 
SIC codes in section 532.223(a) have been converted to comparable NAICS 
codes. We inadvertently overlooked this section in the proposed rule. 
Third, we are adding NAICS 5175, Cable and other program distribution, 
to the communications specialized industry in section 532.313 to better 
match NAICS wage survey industry coverage to the industry coverage of 
the SIC system. We inadvertently overlooked this industry in the 
proposed rule.
    This final regulation is effective 30 days after publication. 
However, to provide the lead agency (the Department of Defense) with 
sufficient time and a fixed date for planning surveys and implementing 
changes required by the new industry classification system, the 
regulation is applicable for wage surveys ordered to begin on or after 
November 1, 2006.

Regulatory Flexibility Act

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

E.O. 12866, Regulatory Review

    The Office of Management and Budget has reviewed this final 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.

0
Accordingly, the Office of Personnel Management is amending 5 CFR part 
532 as follows:

PART 532--PREVAILING RATE SYSTEMS

0
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

0
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 American Industry Classification System (NAICS) codes in all 
regular appropriated fund wage surveys:

------------------------------------------------------------------------
       2002 NAICS codes                2002 NAICS industry titles
------------------------------------------------------------------------
311 through 339 (except 323).  All manufacturing classes except printing
                                and related support activities (NAICS
                                323).
221..........................  Utilities.
481..........................  Air transportation.
482..........................  Rail transportation.
484..........................  Truck transportation.
485 (except 4853)............  Transit and ground passenger
                                transportation except taxi and limousine
                                service (NAICS 4853).

[[Page 35374]]

 
487 (except 4872)............  Scenic and sightseeing transportation
                                except scenic and sightseeing
                                transportation, water (NAICS 4872).
488 (except 4883 and 4884)...  Support activities for transportation
                                except support activities for water
                                transportation (NAICS 4883) and support
                                activities for road transportation
                                (NAICS 4884).
492..........................  Couriers and messengers.
493..........................  Warehousing and storage.
515..........................  Broadcasting (except Internet).
517..........................  Telecommunications.
5621.........................  Waste collection.
5622.........................  Waste Treatment and Disposal.
423..........................  Merchant wholesalers, durable goods.
424..........................  Merchant wholesalers, nondurable goods.
------------------------------------------------------------------------

* * * * *

0
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:

------------------------------------------------------------------------
       2002 NAICS codes                2002 NAICS industry titles
------------------------------------------------------------------------
42312........................  Motor vehicle supplies and new parts
                                merchant wholesalers.
4232.........................  Furniture and home furnishing merchant
                                wholesalers.
42362........................  Electrical and electronic appliance,
                                television, and radio set merchant
                                wholesalers.
42369........................  Other electronic parts and equipment
                                merchant wholesalers.
42371........................  Hardware merchant wholesalers.
42391........................  Sporting and recreational goods and
                                supplies merchant wholesalers.
42399........................  Other miscellaneous durable goods
                                merchant wholesalers.
4241.........................  Paper and paper product merchant
                                wholesalers.
42421........................  Drugs and druggists' sundries merchant
                                wholesalers.
4243.........................  Apparel, piece goods, and notions
                                merchant wholesalers.
42445........................  Confectionery merchant wholesalers.
4247.........................  Petroleum and petroleum products merchant
                                wholesalers.
4249.........................  Miscellaneous nondurable goods merchant
                                wholesalers.
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.
71391........................  Golf courses and country clubs.
71395........................  Bowling centers.
72111........................  Hotels (except casino hotels) and motels.
7221.........................  Full-service restaurants.
7222.........................  Limited-service eating places.
7224.........................  Drinking places (alcoholic beverages).
------------------------------------------------------------------------

* * * * *

0
4. In Sec.  532.223, revise paragraph (a) to read as follows:


Sec.  532.223  Establishments included in regular nonappropriated fund 
surveys.

    (a) All establishments having 20 or more employees in the 
prescribed industries within a survey area must be included in the 
survey universe. Establishments in NAICS codes 4471, 4542, 71391, and 
71395 must be included in the survey universe if they have eight or 
more employees.
* * * * *

0
5. 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 North American Industry 
Classification System (NAICS) codes:

------------------------------------------------------------------------
       2002 NAICS codes                2002 NAICS industry titles
------------------------------------------------------------------------
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.

[[Page 35375]]

 
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.
------------------------------------------------------------------------

* * * * *

0
6. 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.
* * * * *

0
7. 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:

------------------------------------------------------------------------
       2002 NAICS codes                2002 NAICS industry titles
------------------------------------------------------------------------
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.
------------------------------------------------------------------------

* * * * *

0
8. 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:

------------------------------------------------------------------------
       2002 NAICS codes                2002 NAICS industry titles
------------------------------------------------------------------------
                      Aircraft Specialized Industry
------------------------------------------------------------------------
332912.......................  Fluid power valve and hose fitting
                                manufacturing.
336411.......................  Aircraft manufacturing.
336412.......................  Aircraft engine and engine parts
                                manufacturing.
336413.......................  Other aircraft part and auxiliary
                                equipment manufacturing.
336415.......................  Guided missile and space vehicle
                                propulsion unit and propulsion unit
                                parts manufacturing.
336419.......................  Other guided missile and space vehicle
                                parts and auxiliary equipment
                                manufacturing.
4811.........................  Scheduled air transportation.
4812.........................  Nonscheduled air transportation.
4879.........................  Scenic and sightseeing transportation,
                                other.
4881.........................  Support activities for air
                                transportation.
4921.........................  Couriers.
54171........................  Research and development in the physical,
                                engineering, and life sciences.

[[Page 35376]]

 
56172........................  Janitorial services.
62191........................  Ambulance services.
81142........................  Reupholstery and furniture repair.
------------------------------------------------------------------------
                     Ammunition Specialized Industry
------------------------------------------------------------------------
32592........................  Explosives manufacturing.
332992.......................  Small arms ammunition manufacturing.
332993.......................  Ammunition (except small arms)
                                manufacturing.
------------------------------------------------------------------------
           Artillery and Combat Vehicles Specialized Industry
------------------------------------------------------------------------
2211.........................  Electric power generation, transmission,
                                and distribution.
2212.........................  Natural gas distribution.
32732........................  Ready-mix concrete manufacturing.
332212.......................  Hand and edge tool manufacturing.
332323.......................  Ornamental and architectural metal work
                                manufacturing.
332439.......................  Other metal container manufacturing.
332995.......................  Other ordnance and accessories
                                manufacturing.
332999.......................  All other miscellaneous fabricated metal
                                product manufacturing.
33311........................  Agricultural implement manufacturing.
33312........................  Construction machinery manufacturing.
333611.......................  Turbine and turbine generator set units
                                manufacturing.
333618.......................  Other engine equipment manufacturing.
333922.......................  Conveyor and conveying equipment
                                manufacturing.
333923.......................  Overhead traveling crane, hoist, and
                                monorail system manufacturing.
333924.......................  Industrial truck, tractor, trailer, and
                                stacker machinery manufacturing.
3361.........................  Motor vehicle manufacturing.
336211.......................  Motor vehicle body manufacturing.
336212.......................  Truck trailer manufacturing.
336312.......................  Gasoline engine and engine parts
                                manufacturing.
336322.......................  Other motor vehicle electrical and
                                electronic equipment manufacturing.
33633........................  Motor vehicle steering and suspension
                                components (except spring)
                                manufacturing.
33634........................  Motor vehicle brake system manufacturing.
33635........................  Motor vehicle transmission and power
                                train parts manufacturing.
336399.......................  All other motor vehicle parts
                                manufacturing.
33651........................  Railroad rolling stock manufacturing.
336992.......................  Military armored vehicle, tank, and tank
                                component manufacturing.
4231.........................  Motor vehicle and motor vehicle parts and
                                supplies merchant wholesalers.
42381........................  Construction and mining (except oil well)
                                machinery and equipment merchant
                                wholesalers.
42382........................  Farm and garden machinery and equipment
                                merchant wholesalers.
4413.........................  Automotive parts, accessories, and tire
                                stores.
44421........................  Outdoor power equipment stores.
484..........................  Truck transportation.
4862.........................  Pipeline transportation of natural gas.
492..........................  Couriers and messengers.
5171.........................  Wired telecommunications carriers.
5172.........................  Wireless telecommunications carriers
                                (except satellite).
5173.........................  Telecommunications resellers.
5621.........................  Waste collection.
81299........................  All other personal services.
------------------------------------------------------------------------
                   Communications Specialized Industry
------------------------------------------------------------------------
33422........................  Radio and television broadcasting and
                                wireless communications equipment
                                manufacturing.
33429........................  Other communications equipment
                                manufacturing.
334511.......................  Search, detection, navigation, guidance,
                                aeronautical and nautical system and
                                instrument manufacturing.
334514.......................  Totalizing fluid meter and counting
                                device manufacturing.
334515.......................  Instrument manufacturing for measuring
                                and testing electricity and electrical
                                signals.
335311.......................  Power, distribution, and specialty
                                transformer manufacturing.
48531........................  Taxi service.
5151.........................  Radio and television broadcasting.
5152.........................  Cable and other subscription programming.
5171.........................  Wired telecommunications carriers.
5172.........................  Wireless telecommunications carriers
                                (except satellite).
5173.........................  Telecommunications resellers.
5174.........................  Satellite telecommunications.
5175.........................  Cable and other program distribution.
5179.........................  Other telecommunications.
------------------------------------------------------------------------
                    Electronics Specialized Industry
------------------------------------------------------------------------
3341.........................  Computer and peripheral equipment
                                manufacturing.
33422........................  Radio and television broadcasting and
                                wireless communications equipment
                                manufacturing.

[[Page 35377]]

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


[[Page 35378]]

    (b) For wage surveys involving the specialized Federal industry 
``Artillery and Combat Vehicles'' in paragraph (a) of this section, 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. E6-9667 Filed 6-19-06; 8:45 am]
BILLING CODE 6325-39-P