[Federal Register Volume 81, Number 165 (Thursday, August 25, 2016)]
[Rules and Regulations]
[Page 58652]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-19677]



[[Page 58652]]

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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1

[Docket No. FAR 2015-0051, Sequence No. 4]


Federal Acquisition Regulation; Federal Acquisition Circular 
2005-90; Small Entity Compliance Guide

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

ACTION: Small Entity Compliance Guide.

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SUMMARY: This document is issued under the joint authority of DOD, GSA, 
and NASA. This Small Entity Compliance Guide has been prepared in 
accordance with section 212 of the Small Business Regulatory 
Enforcement Fairness Act of 1996. It consists of a summary of the rule 
appearing in Federal Acquisition Circular (FAC) 2005-90, which amends 
the Federal Acquisition Regulation (FAR). An asterisk (*) next to a 
rule indicates that a regulatory flexibility analysis has been 
prepared. Interested parties may obtain further information regarding 
this rule by referring to FAC 2005-90, which precedes this document. 
These documents are also available via the Internet at http://www.regulations.gov.

DATES: August 25, 2016.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
the analyst whose name appears in the table below. Please cite FAC 
2005-90 and the FAR case number. For information pertaining to status 
or publication schedules, contact the Regulatory Secretariat at 202-
501-4755.

                       Rule Listed in FAC 2005-90
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                      Subject                        FAR Case   Analyst
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*Fair Pay and Safe Workplaces.....................   2014-025    Delgado
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SUPPLEMENTARY INFORMATION: Summary for the FAR rule follows. For the 
actual revisions and/or amendments made by this FAR case, refer to the 
specific item number and subject set forth in the document following 
this item summary. FAC 2005-90 amends the FAR as specified below:

Fair Pay and Safe Workplaces (FAR Case 2014-025)

    DoD, GSA, and NASA are issuing a final rule amending the FAR to 
implement Executive Order (E.O.) 13673, Fair Pay and Safe Workplaces, 
amended by E.O. 13683, to correct a statutory citation, and further 
amended by an E.O. signed today to modify the handling of subcontractor 
disclosures and clarify the requirements for public disclosure of 
documents. E.O. 13673 is designed to improve contractor compliance with 
labor laws and increase efficiency and cost savings in Federal 
contracting. As E.O. 13673 explains, ensuring compliance with labor 
laws drives economy and efficiency by promoting ``safe, healthy, fair, 
and effective workplaces. Contractors that consistently adhere to labor 
laws are more likely to have workplace practices that enhance 
productivity and increase the likelihood of timely, predictable, and 
satisfactory delivery of goods and services to the Federal 
Government.'' The E.O. was signed July 31, 2014. The Department of 
Labor is simultaneously issuing final Guidance to assist Federal 
agencies in implementation of the E.O. in conjunction with the FAR 
final rule.
    The E.O. requires that prospective and existing contractors on 
covered contracts disclose decisions regarding violations of certain 
labor laws, and that contracting officers, in consultation with agency 
labor compliance advisors (ALCAs), a new position created by the E.O., 
consider the decisions, (including any mitigating factors and remedial 
measures), as part of the contracting officer's decision to award or 
extend a contract. In addition, the E.O. creates new paycheck 
transparency protections, among other things, to ensure that workers on 
covered contracts are given the necessary information each pay period 
to verify the accuracy of what they are paid. Finally, the E.O. limits 
the use of predispute arbitration clauses in employment agreements on 
covered Federal contracts. Phase-ins: (1) From October 25, 2016 through 
April 24, 2017, the prime contractor disclosure requirements will apply 
to solicitations with an estimated value of $50 million or more, and 
resultant contracts; after April 24, 2017, the requirements apply to 
solicitations estimated to exceed $500,000, and resultant contracts. 
(2) The requirements apply to subcontractors starting October 25, 2017. 
(3) The decision disclosure period covers labor law decisions rendered 
against the offeror during the period beginning on October 25, 2015 to 
the date of the offer, or for three years preceding the offer, 
whichever period is shorter. (4) The paycheck transparency clause 
applies to solicitations starting January 1, 2017. There is significant 
impact on small entities imposed by the FAR rule.

    Dated: August 10, 2016.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of 
Acquisition Policy, Office of Governmentwide Policy.
[FR Doc. 2016-19677 Filed 8-24-16; 8:45 am]
 BILLING CODE 6820-EP-P