[Federal Register Volume 79, Number 227 (Tuesday, November 25, 2014)]
[Rules and Regulations]
[Pages 70342-70343]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-27659]





48 CFR Parts 22 and 53

[FAC 2005-78; FAR Case 2014-011; Item II; Docket No. 2014-0011; 
Sequence No. 1]
RIN 9000-AM83

Federal Acquisition Regulation: Streamlining Claims Processing

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

ACTION: Final rule.


SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the 
Federal Acquisition Regulation (FAR) to implement the Streamlining 
Claims Processing for Federal Contractor Employees Act which amends the 
United States Code (U.S.C.) to transfer certain functions from the 
Government Accountability Office (GAO) to the Department of Labor (DOL) 
relating to the processing of claims for the payment of workers who 
were not paid appropriate wages under certain provisions of the U.S.C.

DATES: Effective: December 26, 2014.

FOR FURTHER INFORMATION CONTACT: Mr. Edward Loeb, Procurement Analyst, 
at 202-501-0650 for clarification of content. For information 
pertaining to status or publication schedules, contact the Regulatory 
Secretariat at 202-501-4755. Please cite FAC 2005-78, FAR Case 2014-


I. Background

    The Streamlining Claims Processing for Federal Contractor Employees 
Act (the Act) (Pub. L. 113-50) was enacted on November 21, 2013. The 
Act transfers certain administrative authorities relating to the 
processing of claims for the payment of workers who were not paid 
appropriate wages under certain provisions of title 40 U.S.C. from the 
GAO to the DOL. One of the specific functions transferred to the DOL at 
40 U.S.C. 3144 and 3703 is the authority to pay certain wages. FAR part 
22, Application of Labor Laws to Government Acquisitions, which 
addresses the withholding or suspending of contract payments and the 
disposition of such payments, requires revision to be consistent with 
the Act. Specifically, FAR 22.406-9, Withholding from or suspension of 
contract payments, at paragraph (c), includes instructions regarding 
the disposition of contract payments that have been withheld or 
suspended. Also, FAR 22.406-11, Contract terminations, includes 
instructions for submitting reports when terminations result from 
violation of labor standards clauses. This final rule revises these FAR 
sections to appropriately reflect the administrative authorities of the 
DOL, and to provide a link to the DOL Web site and guidance for 
disbursement of withheld funds. Reference to Standard Form (SF) 1093, 
Schedule of Withholdings Under the Construction Wage Rate Requirements 
Statute (40 U.S.C. Chapter 31, Subchapter IV, Section 3144) and/or the 
Contract Work Hours and Safety Standards Statute (40 U.S.C. Chapter 37, 
Section 3703), is deleted. The SF 1093 was previously used to disburse 
funds to the GAO and is now obsolete.

II. Publication of This Final Rule for Public Comment Is Not Required 
by Statute

    ``Publication of proposed regulations'', 41 U.S.C. 1707, is the 
statute which applies to the publication of the Federal Acquisition 
Regulation. Paragraph (a)(1) of the statute requires that a procurement 
policy, regulation, procedure or form (including an amendment or 
modification thereof) must be published for public comment if it 
relates to the expenditure of appropriated funds, and has either a 
significant effect beyond the internal operating procedures of the 
agency issuing the policy, regulation, procedure or form, or has a 
significant cost or

[[Page 70343]]

administrative impact on contractors or offerors. This final rule is 
not required to be published for public comment, because it has no 
effect on contractors or offerors. This rule only revises the 
regulation by accurately reflecting that the DOL is the administrative 
authority for certain functions that were formerly the function of the 
GAO. These requirements affect only the internal operating procedures 
of the Government.

III. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is not a significant regulatory action and, therefore, was not 
subject to review under Section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993. This rule is not a major rule 
under 5 U.S.C. 804.

IV. Regulatory Flexibility Act

    The Regulatory Flexibility Act does not apply to this rule because 
this final rule does not constitute a significant FAR revision within 
the meaning of FAR 1.501-1 and 41 U.S.C. 1707 does not require 
publication for public comment.

V. Paperwork Reduction Act

    The rule does not contain any information collection requirements 
that require the approval of the Office of Management and Budget under 
the Paperwork Reduction Act (44 U.S.C. Chapter 35).

List of Subjects in 48 CFR Parts 22 and 53

    Government procurement.

    Dated: November 17, 2014.
William Clark,
Acting Director, Office of Government-wide Acquisition Policy, Office 
of Acquisition Policy, Office of Government-wide Policy.

    Therefore, DoD, GSA, and NASA amend 48 CFR parts 22 and 53 as set 
forth below:

1. The authority citation for 48 CFR parts 22 and 53 continues to read 
as follows:

    Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 
U.S.C. 20113.


2. Amend section 22.406-9 by revising paragraphs (c)(1) and (3) to read 
as follows:

22.406-9  Withholding from or suspension of contract payments.

* * * * *
    (c) Disposition of contract payments withheld or suspended--(1) 
Forwarding wage underpayments to the Secretary of Labor. Upon final 
administrative determination, if the contractor or subcontractor has 
not made restitution, the contracting officer must follow the 
Department of Labor guidance published in Wage and Hour Division, All 
Agency Memorandum (AAM) No. 215, Streamlining Claims for Federal 
Contractor Employees Act. The AAM No. 215 can be obtained at http://www.dol.gov/whd/govcontracts/dbra.htm; under Guidance there is a link 
for All Agencies Memoranda (AAMs).
* * * * *
    (3) Limitation on returning funds. If the Department of Labor 
requested the withholding or if the findings are disputed (see 22.406-
10(e)), the contracting officer must not return the funds to the 
contractor without approval by the Department of Labor.
* * * * *

22.406-11  [Amended]

3. Amend section 22.406-11 by removing from the introductory paragraph 
``, and the Comptroller General''.


4. Amend section 53.222 by revising the section heading; and removing 
and reserving paragraph (d) to read as follows:

53.222  Application of labor laws to Government acquisitions (SF's 307, 
1413, 1445, 1446, WH-347).

* * * * *

53.301-1093  [Removed]

5. Remove section 53.301-1093.

[FR Doc. 2014-27659 Filed 11-24-14; 8:45 am]