[Federal Register Volume 75, Number 71 (Wednesday, April 14, 2010)]
[Proposed Rules]
[Pages 19345-19346]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-8504]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 31

[FAR Case 2009-006; Docket 2010-0084, Sequence 1]
RIN 9000-AL39


Federal Acquisition Regulation; FAR Case 2009-006, Labor 
Relations Costs

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

ACTION: Proposed rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) propose to amend the Federal 
Acquisition Regulation (FAR) to implement Executive Order 13494, 
Economy in Government Contracting, issued on January 30, 2009, and 
amended on October 30, 2009. This order treats as unallowable the costs 
of any activities undertaken to persuade employees, whether employees 
of the recipient of Federal disbursements or of any other entity, to 
exercise or not to exercise, or concerning the manner of exercising, 
the right to organize and bargain collectively through representatives 
of the employee's own choosing.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat on or before June 14, 2010 to be considered in 
the formulation of a final rule.

ADDRESSES: Submit comments identified by FAR case 2009-006 by any of 
the following methods:
     Regulations.gov: http://www.regulations.gov. Submit 
comments via the Federal eRulemaking portal by inputting ``FAR Case 
2009-006'' under the heading ``Enter Keyword or ID'' and selecting 
``Search.'' Select the link ``Submit a Comment'' that corresponds with 
``FAR Case 2009-006.'' Follow the instructions provided at the ``Submit 
a Comment'' screen. Please include your name, company name (if any), 
and ``FAR Case 2009-006'' on your attached document.
     Fax: 202-501-4067.
     Mail: General Services Administration, Regulatory 
Secretariat (MVCB), 1800 F Street, NW., Room 4041, ATTN: Hada Flowers, 
Washington, DC 20405.

[[Page 19346]]

    Instructions: Please submit comments only and cite FAR case 2009-
006, in all correspondence related to this case. All comments received 
will be posted without change to http://www.regulations.gov, including 
any personal and/or business confidential information provided.

FOR FURTHER INFORMATION CONTACT: Mr. Edward Chambers, Procurement 
Analyst, at (202) 501-3221, for clarification of content. For 
information pertaining to status or publication schedules, contact the 
Regulatory Secretariat at (202) 501-4755. Please cite FAR case 2009-
006.

SUPPLEMENTARY INFORMATION:

A. Background

    Executive Order 13494, Economy in Government Contracting, dated 
January 30, 2009, was published in the Federal Register at 74 FR 6101 
on February 4, 2009, as amended on October 30, 2009, was published in 
the Federal Register at 74 FR 57239 on November 5, 2009, provided that 
to promote economy and efficiency in Government contracting, certain 
costs that are not directly related to the contractor's provision of 
goods and services to the Government shall be unallowable for payment, 
thereby directly reducing Government expenditures. Thus, this order 
states that the costs of the activities of preparing and distributing 
materials; hiring or consulting legal counsel or consultants; holding 
meetings (including paying the salaries of the attendees at meetings 
held for this purpose); and planning or conducting activities by 
managers, supervisors, or union representatives during work hours, when 
they are undertaken to persuade employees to exercise or not to 
exercise, or concern the manner of exercising, rights to organize and 
bargain collectively are unallowable costs. This order is consistent 
with Government policy to remain impartial concerning any labor-
management dispute involving Government contractors. This proposed rule 
will make the necessary changes within the FAR.
    This is a significant regulatory action and therefore was 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 Councils do not expect this proposed rule to have a significant 
economic impact on a substantial number of small entities within the 
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., 
because most contracts awarded to small entities use simplified 
acquisition procedures or are awarded on a competitive fixed-price 
basis, and do not require application of the cost principles contained 
in this rule. Further, the practical effect of the rule will be that 
contractors will no longer be reimbursed for costs incurred in 
promoting or opposing union organizing. It is substantially less likely 
that small businesses will incur costs of this nature. An Initial 
Regulatory Flexibility Analysis has, therefore, not been performed. The 
Councils invite comments from small business concerns and other 
interested parties on the expected impact of this rule on small 
entities.
    The Councils will also consider comments from small entities 
concerning the existing regulations in FAR part 31 affected by this 
rule in accordance with 5 U.S.C. 610. Interested parties must submit 
such comments separately and should cite 5 U.S.C. 610 (FAR Case 2009-
006) in all correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
changes to the FAR do not impose information collection requirements 
that require the approval of the Office of Management and Budget under 
44 U.S.C. chapter 35, et seq.

List of Subjects in 48 CFR Part 31

    Government procurement.

    Dated: April 9, 2010.
Edward Loeb,
Acting Director, Acquisition Policy Division.

    Therefore, DoD, GSA, and NASA propose amending 48 CFR part 31 as 
set forth below:

PART 31--CONTRACT COSTS PRINCIPLES AND PROCEDURES

    1. The authority citation for 48 CFR part 31 continues to read as 
follows:

    Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

    2. Revise section 31.205-21 to read as follows:


31.205-21  Labor relations costs.

    (a) Costs incurred in maintaining satisfactory relations between 
the contractor and its employees (other than those made unallowable in 
paragraph (b) of this section), including costs of shop stewards, labor 
management committees, employee publications, and other related 
activities, are allowable.
    (b) As required by Executive Order 13494, Economy in Government 
Contracting, costs of any activities undertaken to persuade employees, 
of any entity, to exercise or not to exercise, or concerning the manner 
of exercising, the right to organize and bargain collectively through 
representatives of the employees' own choosing are unallowable. 
Examples of unallowable costs in paragraph (b) of this section include, 
but are not limited to, the costs of--
    (1) Preparing and distributing materials;
    (2) Hiring or consulting legal counsel or consultants;
    (3) Meetings (including paying the salaries of the attendees at 
meetings held for this purpose); and
    (4) Planning or conducting activities by managers, supervisors, or 
union representatives during work hours.

[FR Doc. 2010-8504 Filed 4-13-10; 8:45 am]
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