[Federal Register Volume 79, Number 240 (Monday, December 15, 2014)]
[Rules and Regulations]
[Page 74544]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-29139]



[[Page 74543]]

Vol. 79

Monday,

No. 240

December 15, 2014

Part V





Department of Defense





General Services Administration





National Aeronautics and Space Administration





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48 CFR Chapter 1, et al.





Federal Acquisition Regulations; Interim Final Rules and Proposed Rule

  Federal Register / Vol. 79 , No. 240 / Monday, December 15, 2014 / 
Rules and Regulations  

[[Page 74544]]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1

[Docket No. FAR 2014-0051, Sequence No. 7]


Federal Acquisition Regulation; Federal Acquisition Circular 
2005-79; Introduction

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

ACTION: Summary presentation of interim rules.

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SUMMARY: This document summarizes the Federal Acquisition Regulation 
(FAR) rules agreed to by the Civilian Agency Acquisition Council and 
the Defense Acquisition Regulations Council (Councils) in this Federal 
Acquisition Circular (FAC) 2005-79. A companion document, the Small 
Entity Compliance Guide (SECG), follows this FAC. The FAC, including 
the SECG, is available via the Internet at http://www.regulations.gov.

DATES: For effective dates and comment dates see separate documents, 
which follow.

FOR FURTHER INFORMATION CONTACT: The analyst whose name appears in the 
table below in relation to the FAR case. Please cite FAC 2005-79 and 
the specific FAR case number. For information pertaining to status or 
publication schedules, contact the Regulatory Secretariat at 202-501-
4755.

                       Rules Listed in FAC 2005-79
------------------------------------------------------------------------
        Item                Subject          FAR case        Analyst
------------------------------------------------------------------------
I...................  Establishing a          2015-003  Loeb.
                       Minimum Wage for
                       Contractors.
II..................  Prohibition on          2014-017  Jackson.
                       Contracting with
                       Inverted Domestic
                       Corporations.
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SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. For the 
actual revisions and/or amendments made by these rules, refer to the 
specific item numbers and subjects set forth in the documents following 
these item summaries. FAC 2005-79 amends the FAR as specified below:

Item I--Establishing a Minimum Wage for Contractors (FAR Case 2015-003)

    DoD, GSA, and NASA are issuing an interim rule amending the FAR to 
implement Executive Order (E.O.) 13658 and a Department of Labor (DOL) 
final rule issued on October 7, 2014, both entitled Establishing a 
Minimum Wage for Contractors. The interim rule establishes a new 
minimum wage for covered service and construction contracts of $10.10 
per hour, which will be adjusted annually, by the DOL. Contracting 
officers will include a clause in covered contracts and, if requested 
by the contractor and if appropriate, will adjust contract prices for 
the annual adjustments in the E.O. minimum wage. Contractors shall 
consider any subcontractor request, including requests by small 
businesses subcontractors, for a subcontract price adjustment due to 
the annual adjustment in the E.O. minimum wage.

Item II--Prohibition on Contracting With Inverted Domestic Corporations 
(FAR Case 2014-017)

    This interim rule amends the provisions of the FAR that address the 
continuing Governmentwide statutory prohibition (in effect since fiscal 
year (FY) 2008) on the award of contracts using appropriated funds to 
any foreign incorporated entity that is an inverted domestic 
corporation (under section 835 of the Homeland Security Act of 2002, 
codified at 6 U.S.C. 395) or to any subsidiary of such entity. In 
particular, this rule amends FAR 9.108 to revise the FAR coverage, 
including the language of solicitation provisions and contract clauses, 
so that it more clearly reflects the ongoing, continuing nature of the 
statutory prohibition on contracting with inverted domestic 
corporations and their subsidiaries.
    This rule is not expected to have an effect on small business 
because this rule will only impact an offeror that is a foreign 
incorporated entity that is treated as an inverted domestic corporation 
and wants to do business with the Government. Small business concerns 
are unlikely to have been incorporated in the United States and then 
reincorporated in a tax haven.

    Dated: December 5, 2014.
William Clark,
Acting Director, Office of Government-wide Acquisition Policy, Office 
of Acquisition Policy, Office of Government-wide Policy.
    Federal Acquisition Circular (FAC) 2005-79 is issued under the 
authority of the Secretary of Defense, the Administrator of General 
Services, and the Administrator for the National Aeronautics and Space 
Administration.
    Unless otherwise specified, all Federal Acquisition Regulation 
(FAR) and other directive material contained in FAC 2005-79 is 
effective December 15, 2014.

    Dated: December 4, 2014.
Richard Ginman,
Director, Defense Procurement and Acquisition Policy.

    Dated: December 5, 2014.
Jeffrey A. Koses,
Senior Procurement Executive/Deputy CAO, Office of Acquisition Policy, 
U.S. General Services Administration.

    Dated: December 4, 2014.
Ronald A. Poussard,
Director, Contract and Grant Policy Division, Office of Procurement, 
National Aeronautics and Space Administration.
[FR Doc. 2014-29139 Filed 12-12-14; 8:45 am]
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