**3.6.2. LABOR LAWS**

3.6.2-1 Contract Work Hours and Safety Standards Act-Overtime
Compensation

CONTRACT WORK HOURS AND SAFETY STANDARDS ACT-OVERTIME COMPENSATION
(APRIL 1996)

\(a\) Overtime requirements. No Contractor or subcontractor contracting
for any part of the contract work which may require or involve the
employment of laborers or mechanics shall require or permit any such
laborers or mechanics in any workweek in which the individual is
employed on such work to work in excess of 40 hours in such workweek
unless such laborer or mechanic receives compensation at a rate not less
than 1 1/2 times the basic rate of pay for all hours worked in excess of
40 hours in such workweek.

\(b\) Violation; liability for unpaid wages; liquidated damages. In the
event of any violation of the provisions set forth in paragraph (a) of
this clause, the Contractor and any subcontractor responsible therefor
shall be liable for the unpaid wages. In addition, such Contractor and
subcontractor shall be liable to the United States (in the case of work
done under contract for the District of Columbia or a territory, to such
District or to such territory), for liquidated damages. Such liquidated
damages shall be computed with respect to each individual laborer or
mechanics employed in violation of the provisions set forth in paragraph
(a) of this clause in the sum of \$10 for each calendar day on which
such individual was required or permitted to work in excess of the
standard workweek of 40 hours without payment of the overtime wages
required by provisions set forth in paragraph (a) of this clause.

\(c\) Withholding for unpaid wages and liquidated damages. The
Contracting Officer shall upon his or her own action or upon written
request of an authorized representative of the Department of Labor
withhold or cause to be withheld, from any moneys payable on account of
work performed by the Contractor or subcontractor under any such
contract or any other Federal contract with the same Prime Contractor,
or any other Federally-assisted contract subject to the Contract Work
Hours and Safety Standards Act which is held by the same Prime
Contractor, such sums as may be determined to be necessary to satisfy
any liabilities of such Contractor or subcontractor for unpaid wages and
liquidated damages as provided in the provisions set forth in paragraph
(b) of this clause.

\(d\) Payrolls and basic records.

\(1\) The Contractor or subcontractor shall maintain payrolls and basic
payroll records during the course of contract work and shall preserve
them for a period of 3 years from the completion of the contract for all
laborers and mechanics working on the contract. Such records shall
contain the name and address of each such employee, social security
number, correct classifications, hourly rates of wages paid, daily and
weekly number of hours worked, deductions made, and actual wages paid.
Nothing in this paragraph shall require the duplication of records
required to be maintained for construction work by Department of Labor
regulations at 29 CFR 5.5(a)(3) implementing the Davis-Bacon Act.

\(2\) The records to be maintained under paragraph (d)(1) of this clause
shall be made available by the Contractor or subcontractor for
inspection, copying, or transcription by authorized representatives of
the Contracting Officer or the Department of Labor. The Contractor or
subcontractor shall permit such representatives to interview employees
during working hours on the job.

\(e\) Subcontracts. The Contractor or subcontractor shall insert in any
subcontracts, exceeding \$100,000, the provisions set forth in
paragraphs (a) through (e) of this clause and also a clause requiring
the subcontractors to include these provisions in any lower tier
subcontracts. The Prime Contractor shall be responsible for compliance
by any subcontractor or lower tier subcontractor with the provisions set
forth in paragraphs (a) through (e) of this clause.

*(End of Clause)*

3.6.2-2 Convict Labor

CONVICT LABOR (APRIL 1996)

The Contractor agrees not to employ any person undergoing sentence of
imprisonment in performing this contract except as provided by 18 U.S.C.
4082(c)(2) and Executive Order 11755.

*(End of Clause)*

3.6.2-3 Walsh-Healey Public Contracts Act Representation

WALSH-HEALEY PUBLIC CONTRACTS ACT REPRESENTATION (APRIL 1996)

The offeror represents as a part of this offer that the offeror is \[ \]
or is not \[ \] a regular dealer in, or is \[ \] or is not \[ \] a
manufacturer of, the supplies offered.

*(End of Provision)*

3.6.2-4 Walsh-Healey Public Contracts Act

WALSH-HEALEY PUBLIC CONTRACTS ACT (APRIL 1996)

\(a\) All representations and stipulations required by the Act and
regulations issued by the Secretary of Labor (41 CFR Chapter 50) are
incorporated by reference. These representations and stipulations are
subject to all applicable rulings and interpretations of the Secretary
of Labor that are now, or may hereafter, be in effect.

\(b\) All employees whose work relates to this contract shall be paid
not less than the minimum wage prescribed by regulations issued by the
Secretary of Labor (41 CFR 50-202.2). Learners, student learners,
apprentices, and handicapped workers may be employed at less than the
prescribed minimum wage (see 41 CFR 50-202.3) to the same extent that
such employment is permitted under Section 14 of the Fair Labor
Standards Act (41 U.S.C. 40).

*(End of Clause)*

3.6.2-5 Certification of Nonsegregated Facilities

CERTIFICATION OF NONSEGREGATED FACILITIES (APRIL 1996)

\(a\) \'Segregated facilities,\' as used in this provision, means any
waiting rooms, work areas, rest rooms and wash rooms, restaurants and
other eating areas, time clocks, locker rooms and other storage or
dressing areas, parking lots, drinking fountains, recreation or
entertainment areas, transportation, and housing facilities provided for
employees, that are segregated by explicit directive or are in fact
segregated on the basis of race, color, religion, or national origin
because of habit, local custom, or otherwise.

\(b\) By the submission of this offer, the offeror certifies that it
does not and will not maintain or provide for its employees any
segregated facilities at any of its establishments, and that it does not
and will not permit its employees to perform their services at any
location under its control where segregated facilities are maintained.
The offeror agrees that a breach of this certification is a violation of
the "Equal Opportunity" clause in the contract.

\(c\) The offeror further agrees that (except where it has obtained
identical certifications from proposed subcontractors for specific time
periods) it will\--

\(1\) Obtain identical certifications from proposed subcontractors
before the award of subcontracts under which the subcontractor will be
subject to the "Equal Opportunity" clause;

\(2\) Retain the certifications in the files; and

\(3\) Forward the following notice to the proposed subcontractors
(except if the proposed subcontractors have submitted identical
certifications for specific time periods):

NOTICE TO PROSPECTIVE SUBCONTRACTORS OF REQUIREMENT FOR CERTIFICATIONS
OF NONSEGREGATED FACILITIES

A Certification of Nonsegregated Facilities must be submitted before the
award of a subcontract under which the subcontractor will be subject to
the "Equal Opportunity" clause. The certification may be submitted
either for each subcontract or for all subcontracts during a period
(i.e., quarterly, semiannually, or annually).

Note: The penalty for making false statements in offers is prescribed in
18 U.S.C. 1001.

*(End of Provision)*

3.6.2-6 Previous Contracts and Compliance Reports

PREVIOUS CONTRACTS AND COMPLIANCE REPORTS (APRIL 1996)

The offeror represents that\--(a) It \[ \] has, \[ \] has not,
participated in a previous contract or subcontract subject either to the
"Equal Opportunity" clause of this solicitation, the clause originally
contained in Section 310 of Executive Order No. 10925, or the clause
contained in Section 201 of Executive Order No. 11114; (b) It \[ \] has,
\[ \] has not, filed all required compliance reports; and (c)
Representations indicating submission of required compliance reports,
signed by proposed subcontractors, will be obtained before subcontract
awards.

*(End of Provision)*

3.6.2-7 Preaward On-Site Equal Opportunity Compliance Review

PREAWARD ON-SITE EQUAL OPPORTUNITY COMPLIANCE REVIEW (APRIL 1996)

An award in the amount of \$ one million or more will not be made under
this solicitation unless the offeror and each of its known first-tier
subcontractors (to whom it intends to award a subcontract of \$ [one
million]{.underline} or more) are found, on the basis of a compliance
review, to be able to comply with the provisions of the "Equal
Opportunity" clause of this solicitation. In the case where receipt of a
clearance would delay award of an urgent and critical contract,
authority to award a contract may be granted through agency channels
without receipt of a clearance)

*(End of Provision)*

3.6.2-8 Affirmative Action Compliance

AFFIRMATIVE ACTION COMPLIANCE (APRIL 1996)

The offeror represents that (a) it \[ \] has developed and has on file,
\[ \] has not developed and does not have on file, at each
establishment, affirmative action programs required by the rules and
regulations of the Secretary of Labor (41 CFR 60-1 and 60-2), or (b) it
\[ \] has not previously had contracts subject to the written
affirmative action programs requirement of the rules and regulations of
the Secretary of Labor.

*(End of Provision)*

3.6.2-9 Equal Opportunity

EQUAL OPPORTUNITY (APRIL 1996)

\(a\) If, during any 12-month period (including the 12 months preceding
the award of this contract), the Contractor has been or is awarded
nonexempt Federal contracts and/or subcontracts that have an aggregate
value in excess of \$10,000, the Contractor shall comply with
subparagraphs (b)(1) through (11) below. Upon request, the Contractor
shall provide information necessary to determine the applicability of
this clause.

\(b\) During performing this contract, the Contractor agrees as follows:

\(1\) The Contractor shall not discriminate against any employee or
applicant for employment because of race, color, religion, sex, or
national origin.

\(2\) The Contractor shall take affirmative action to ensure that
applicants are employed, and that employees are treated during
employment, without regard to their race, color, religion, sex, or
national origin. This shall include, but not be limited to, (i)
employment, (ii) upgrading, (iii) demotion, (iv) transfer, (v)
recruitment or recruitment advertising, (vi) layoff or termination,
(vii) rates of pay or other forms of compensation, and (viii) selection
for training, including apprenticeship.

\(3\) The Contractor shall post in conspicuous places available to
employees and applicants for employment the notices that explain this
clause.

\(4\) The Contractor shall, in all solicitations or advertisement for
employees placed by or on behalf of the Contractor, state that all
qualified applicants will receive consideration for employment without
regard to race, color, religion, sex, or national origin.

\(5\) The Contractor shall send, to each labor union or representative
of workers with which it has a collective bargaining agreement or other
contract or understanding, the notice to be provided by the Contracting
Officer advising the labor union or workers\' representative of the
Contractor\'s commitments under this clause, and post copies of the
notice in conspicuous places available to employees and applicants for
employment.

\(6\) The Contractor shall comply with Executive Order 11246, as
amended, and the rules, regulations, and orders of the Secretary of
Labor.

\(7\) The Contractor shall furnish to the contracting agency all
information required by Executive Order 11246, as amended, and by the
rules, regulations, and orders of the Secretary of Labor. Standard Form
100 (EEO-1), or any successor form, is the prescribed form to be filed
within 30 days following the award, unless filed within 12 months
preceding the date of award.

\(8\) The Contractor shall permit access to its books, records, and
accounts by the contracting agency or the Office of Federal Contract
Compliance Programs (OFCCP) for the purposes of investigation to
ascertain the Contractor\'s compliance with the applicable rules,
regulations, and orders.

\(9\) If the OFCCP determines that the Contractor is not in compliance
with this clause or any rule, regulation, or order of the Secretary of
Labor, the contract may be canceled, terminated, or suspended in whole
or in part and the Contractor may be declared ineligible for further
Government contracts, under the procedures authorized in Executive Order
11246, as amended. In addition, sanctions may be imposed and remedies
invoked against the Contractor as provided in Executive Order 11246, as
amended, the rules, regulations, and orders of the Secretary of Labor,
or as otherwise provided by law.

\(10\) The Contractor shall include the terms and conditions of
subparagraph (b)(1) through (11) of this clause in every subcontract or
purchase order that is not exempted by the rules, regulations, or orders
of the Secretary of Labor issued under Executive Order 11246, as
amended, so that these terms and conditions will be binding upon each
subcontractor or vendor.

\(11\) The Contractor shall take such action with respect to any
subcontract or purchase order as the contracting agency may direct as a
means of enforcing these terms and conditions, including sanctions for
noncompliance; provided, that if the Contractor becomes involved in, or
is threatened with, litigation with a subcontractor or vendor as a
result of any direction, the Contractor may request the United States to
enter into the litigation to protect the interests of the United States.

\(c\) Notwithstanding any other clause in this contract, disputes
relative to this clause will be governed by the procedures in 41 CFR
60-1.1.

*(End of Clause)*

ALTERNATE I

If one or more, but not all of the terms of the clause are exempt from
the requirements of EO11246, add the following as a preamble to the
basic clause:

The following terms of this clause are waived for this contract:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\[Contracting Officer shall list terms.\]

*(End of Clause)*

3.6.2-10 Equal Opportunity Preaward Clearance of Subcontracts

EQUAL OPPORTUNITY PREAWARD CLEARANCE OF SUBCONTRACTS (APRIL 1996)

Notwithstanding the clause of this contract titled Subcontracts, the
Contractor shall not enter into a first-tier subcontract for an
estimated or actual amount of \$ one million or more without obtaining
in writing from the Contracting Officer a clearance that the proposed
subcontractor is in compliance with equal opportunity requirements and
therefore is eligible for award.

*(End of Clause)*

3.6.2-11 Notification of Visa Denial

NOTIFICATION OF VISA DENIAL (APRIL 1996)

It is a violation of Executive Order 11246, as amended, for a Contractor
to refuse to employ any applicant or not to assign any person hired in
the United States, on the basis that the individual\'s race, color,
religion, sex, or national origin is not compatible with the policies of
the country where the work is to be performed or for whom the work will
be performed (41 CFR 60-1.10). The Contractor agrees to notify the
Department of State, Washington, DC, Attention: Director, Bureau of
Politico-Military Affairs, and the Director, Office of Federal Contract
Compliance Programs, when it has knowledge of any employee or potential
employee being denied an entry visa to a country in which the Contractor
is required to perform this contract, and it believes the denial is
attributable to the race, color, religion, sex, or national origin of
the employee or potential employee.

*(End of Clause)*

3.2.6-12 Affirmative Action for Special Disabled and Vietnam Era
Veterans

AFFIRMATIVE ACTION FOR SPECIAL DISABLED AND VIETNAM ERA VETERANS
(APRIL 1996)

\(a\) Definitions.

\(1\) 'Appropriate office of the State employment service system,\' as
used in this clause, means the local office of the Federal-State
national system of public employment offices assigned to serve the area
where the employment opening is to be filled, including the District of
Columbia, Guam, Puerto Rico, Virgin Islands, American Samoa, and the
Trust Territory of the Pacific Islands.

\(2\) \'Openings that the Contractor proposes to fill from within its
own organization,\' as used in this clause, means employment openings
for which no one outside the Contractor\'s organization (including any
affiliates, subsidiaries, and the parent companies) will be considered
and includes any openings that the Contractor proposes to fill from
regularly established \'recall\' lists.

\(3\) \'Openings that the Contractor proposes to fill under a customary
and traditional employer-union hiring arrangement,\' as used in this
clause, means employment openings that the Contractor proposes to fill
from union halls, under their customary and traditional employer-union
hiring relationship.

\(4\) \'Suitable employment openings,\' as used in this clause\--(1)
Includes, but is not limited to, openings that occur in jobs categorized
as\--(i) Production and nonproduction; (ii) Plant and office; (iii)
Laborers and mechanics; (iv) Supervisory and nonsupervisory; (v)
Technical; and (vi) Executive, administrative, and professional
positions compensated on a salary basis of less than \$25,000 a year;
and (2) Includes full-time employment, temporary employment of over 3
days, and part-time employment, but not openings that the Contractor
proposes to fill from within its own organization or under a customary
and traditional employer-union hiring arrangement, nor openings in an
educational institution that are restricted to students of that
institution.

\(b\) General.

\(1\) Regarding any position for which the employee or applicant for
employment is qualified, the Contractor shall not discriminate against
the individual because the individual is a special disabled or Vietnam
Era veteran. The Contractor agrees to take affirmative action to employ,
advance in employment and otherwise treat qualified special disabled and
Vietnam Era veterans without discrimination based upon their disability
or veterans\' status in all employment practices such as\--(i)
Employment; (ii) Upgrading; (iii) Demotion or transfer; (iv)
Recruitment; (v) Advertising; (vi) Layoff or termination; (vii) Rates of
pay or other forms of compensation; and (viii) Selection for training,
including apprenticeship.

\(2\) The Contractor agrees to comply with the rules, regulations, and
relevant orders of the Secretary of Labor (Secretary) issued under the
Vietnam Era Veterans\' Readjustment Assistance Act of 1972 (the Act), as
amended.

\(c\) Listing openings.

\(1\) The Contractor agrees to list all suitable employment openings
existing at contract award or occurring during contract performance, at
an appropriate office of the State employment service system in the
locality where the opening occurs. These openings include those
occurring at any Contractor facility, including one not connected with
performing this contract. An independent corporate affiliate is exempt
from this requirement.

\(2\) State and local government agencies holding Federal contracts of
\$10,000 or more shall also list all their suitable openings with the
appropriate office of the State employment service.

\(3\) The listing of suitable employment openings with the State
employment service system is required at least concurrently with using
any other recruitment source or effort and involves the obligations of
placing a bona fide job order, including accepting referrals of veterans
and nonveterans. This listing does not require hiring any particular job
applicant or hiring from any particular group of job applicants and is
not intended to relieve the Contractor from any requirements of
Executive orders or regulations concerning nondiscrimination in
employment.

\(4\) Whenever the Contractor becomes contractually bound to the listing
terms of this clause, it shall advise the State employment service
system, in each State where it has establishments, of the name and
location of each hiring location in the State. As long as the Contractor
is contractually bound to these terms and has so advised the State
system, it need not advise the State system of subsequent contracts. The
Contractor may advise the State system when it is no longer bound by
this contract clause.

\(5\) Under the most compelling circumstances, an employment opening may
not be suitable for listing, including situations when (i) the
Government\'s needs cannot reasonably be supplied, (ii) listing would be
contrary to national security, or (iii) the

requirement of listing would not be in the Government\'s interest.

\(d\) Applicability.

\(1\) This clause does not apply to the listing of employment openings
which occur and are filled outside the 50 States, the District of
Columbia, Puerto Rico, Guam, Virgin Islands, American Samoa, and the
Trust Territory of the Pacific Islands.

\(2\) The terms of paragraph (c) above of this clause do not apply to
openings that the Contractor proposes to fill from within its own
organization or under a customary and traditional employer-union hiring
arrangement. This exclusion does not apply to a particular opening once
an employer decides to consider applicants outside of its own
organization or employer-union arrangement for that opening.

\(e\) Postings.

\(1\) The Contractor agrees to post employment notices stating (i) the
Contractor\'s obligation under the law to take affirmative action to
employ and advance in employment qualified special disabled veterans and
veterans of the Vietnam era, and (ii) the rights of applicants and
employees.

\(2\) These notices shall be posted in conspicuous places that are
available to employees and applicants for employment. They shall be in a
form prescribed by the Director, Office of Federal Contract Compliance
Programs, Department of Labor (Director), and provided by or through the
Contracting Officer.

\(3\) The Contractor shall notify each labor union or representative of
workers with which it has a collective bargaining agreement or other
contract understanding, that the Contractor is bound by the terms of the
Act, and is committed to take affirmative action to employ, and advance
in employment, qualified special disabled and Vietnam Era veterans.

\(f\) Noncompliance. If the Contractor does not comply with the
requirements of this clause, appropriate actions may be taken under the
rules, regulations, and relevant orders of the Secretary issued pursuant
to the Act.

\(g\) Subcontracts. The Contractor shall include the terms of this
clause in every subcontract or purchase order of \$10,000 or more unless
exempted by rules, regulations, or orders of the Secretary. The
Contractor shall act as specified by the Director to enforce the terms,
including action for noncompliance

ALTERNATE I

Add the following as a preamble to the basic clause:

Notice: The following term(s) of this clause are waived for this
contract: \[List term(s).\]

*(End of Clause)*

3.6.2-13 Affirmative Action for Handicapped Workers

AFFIRMATIVE ACTION FOR HANDICAPPED WORKERS (APRIL 1996)

\(a\) General.

\(1\) Regarding any position for which the employee or applicant for
employment is qualified, the Contractor shall not discriminate against
any employee or applicant because of physical or mental handicap. The
Contractor agrees to take affirmative action to employ, advance in
employment, and otherwise treat qualified handicapped individuals
without discrimination based upon their physical or mental handicap in
all employment practices such as\--

\(i\) Employment;

\(ii\) Upgrading;

\(iii\) Demotion or transfer;

\(iv\) Recruitment;

\(v\) Advertising;

\(vi\) Layoff or termination;

\(vii\) Rates of pay or other forms of compensation; and

\(viii\) Selection for training, including apprenticeship.

\(2\) The Contractor agrees to comply with the rules, regulations, and
relevant orders of the Secretary of Labor (Secretary) issued under the
Rehabilitation Act of 1973 (29 U.S.C. 793) (the Act), as amended.

\(b\) Postings.

\(1\) The Contractor agrees to post employment notices stating (i) the
Contractor\'s obligation under the law to take affirmative action to
employ and advance in employment qualified handicapped individuals and
(ii) the rights of applicants and employees.

\(2\) These notices shall be posted in conspicuous places that are
available to employees and applicants for employment. They shall be in a
form prescribed by the Director, Office of Federal Contract Compliance
Programs, Department of Labor (Director), and provided by or through the
Contracting Officer.

\(3\) The Contractor shall notify each labor union or representative of
workers with which it has a collective bargaining agreement or other
contract understanding, that the Contractor is bound by the terms of
Section 503 of the Act and is committed to take affirmative action to
employ, and advance in employment, qualified physically and mentally
handicapped individuals.

\(c\) Noncompliance. If the Contractor does not comply with the
requirements of this clause, appropriate actions may be taken under the
rules, regulations, and relevant orders of the Secretary issued pursuant
to the Act.

\(d\) Subcontracts. The Contractor shall include the terms of this
clause in every subcontract or purchase order in excess of \$2,500
unless exempted by rules, regulations, or orders of the Secretary. The
Contractor shall act as specified by the Director to enforce the terms,
including action for noncompliance.

*(End of Clause)*

ALTERNATE I

Add the following as a preamble to the basic clause:

Notice: The following term(s) of this clause are waived for this
contract: \[List term(s)\].

*(End of Clause)*

3.6.2-14 Employment Reports on Special Disabled Veterans and Veterans of
Vietnam Era

EMPLOYMENT REPORTS ON SPECIAL DISABLED VETERANS AND VETERANS OF THE
VIETNAM ERA (APRIL 1996)

\(a\) The contractor shall report at least annually, as required by the
Secretary of Labor, on:

\(1\) The number of special disabled veterans and the number of veterans
of the Vietnam era in the workforce of the contractor by job category
and hiring location; and

\(2\) The total number of new employees hired during the period covered
by the report, and of that total, the number of special disabled
veterans, and the number of veterans of the Vietnam era.

\(b\) The above items shall be reported by completing the form titled
\'Federal Contractor Veterans\' Employment Report VETS-100.\'

\(c\) Reports shall be submitted no later than March 31 of each year
beginning March 31, 1988.

\(d\) The employment activity report required by paragraph (a)(2) of
this clause shall reflect total hires during the most recent 12-month
period as of the ending date selected for the employment profile report
required by paragraph (a)(1) of this clause. Contractors may select an
ending date: (1) As of the end of any pay period during the period
January through March 1st of the year the report is due, or (2) as of
December 31, if the contractor has previous written approval from the
Equal Employment Opportunity Commission to do so for purposes of
submitting the Employer Information Report EEO-1 (Standard Form 100).

\(e\) The count of veterans reported according to paragraph (a) of this
clause shall be based on voluntary disclosure. Each contractor subject
to the reporting requirements at 38 U.S.C. 2012(d) shall invite all
special disabled veterans and veterans of the Vietnam era who wish to
benefit under the affirmative action program at 38 U.S.C. 2012 to
identify themselves to the contractor. The invitation shall state that
the information is voluntarily provided, that the information will be
kept confidential, that disclosure or refusal to provide the information
will not subject the applicant of employee to any adverse treatment and
that the information will be used only in accordance with the
regulations promulgated under 38 U.S.C. 2012.

\(f\) Subcontracts. The Contractor shall include the terms of this
clause in every subcontract or purchase order of \$10,000 or more unless
exempted by rules, regulations, or orders of the Secretary.

*(End of Clause)*

3.6.2-15 Evaluation of Compensation for Professional Employees

EVALUATION OF COMPENSATION FOR PROFESSIONAL EMPLOYEES (APRIL 1996)

\(a\) Recompetition of service contracts may in some cases result in
lowering the compensation (salaries and fringe benefits) paid or
furnished professional employees. This lowering can be detrimental in
obtaining the quality of professional services needed for adequate
contract performance. It is therefore in the Government\'s best interest
that professional employees, as defined in 29 CFR 541, be properly and
fairly compensated. As part of their submittals, offerors will provide a
total compensation plan setting forth salaries and fringe benefits
proposed for the professional employees who will work under the
contract. The Government will evaluate the plan to assure that it
reflects a sound management approach and understanding of the contract
requirements. This evaluation will include an assessment of the
offeror\'s ability to provide uninterrupted high-quality work. The
professional compensation proposed will be considered in terms of its
impact upon recruiting and retention, its realism, and its consistency
with a total plan for compensation. Supporting information will include
data, such as recognized national and regional compensation surveys and
studies of professional, public and private organizations, used in
establishing the total compensation structure.

\(b\) The compensation levels proposed should reflect a clear
understanding of work to be performed and should indicate the capability
of the proposed compensation structure to obtain and keep suitably
qualified personnel to meet mission objectives. The salary rates or
ranges must take into account differences in skills, the complexity of
various disciplines, and professional job difficulty. Additionally,
submittals envisioning compensation levels lower than those of
predecessor contractors for the same work will be evaluated on the basis
of maintaining program continuity, uninterrupted high-quality work, and
availability of required competent professional service employees.
Offerors are cautioned that lowered compensation for essentially the
same professional work may indicate lack of sound management judgment
and lack of understanding of the requirement.

\(c\) The Government is concerned with the quality and stability of the
work force to be employed on this contract. Professional compensation
that is unrealistically low or not in reasonable relationship to the
various job categories, since it may impair the Contractor\'s ability to
attract and retain competent professional service employees, may be
viewed as evidence of failure to comprehend the complexity of the
contract requirements.

\(d\) Failure to comply with these provisions may constitute sufficient
cause to justify rejection of asubmittal.

*(End of Provision)*

3.6.2-16 Notice to the Government of Labor Disputes

NOTICE TO THE GOVERNMENT OF LABOR DISPUTES (April 1996)

\(a\) If the Contractor has knowledge that any actual or potential labor
dispute is delaying or threatens to delay the timely performance of this
contract, the Contractor shall immediately give notice, including all
relevant information, to the Contracting Officer.

\(b\) The Contractor agrees to insert the substance of this clause,
including this paragraph (b), in any subcontract to which a labor
dispute may delay the timely performance of this contract; except that
each subcontract shall provide that in the event its timely performance
is delayed or threatened by delay by any actual or potential labor
dispute, the subcontractor shall immediately notify the next higher tier
subcontractor or the prime Contractor, as the case may be, of all
relevant information concerning the dispute.

*(End of Clause)*

3.6.2-17 Payment for Overtime Premiums

PAYMENT FOR OVERTIME PREMIUMS (April 1996)

\(a\) The use of overtime is authorized under this contract if the
overtime premium cost does not exceed \_\_\_\_\_\_\_\_\_\_ \*\[insert
amount\] or the overtime premium is paid for work\--

\(1\) Necessary to cope with emergencies such as those resulting from
accidents, natural disasters, breakdowns of production equipment, or
occasional production bottlenecks of a sporadic nature;

\(2\) By indirect-labor employees such as those performing duties in
connection with administration, protection, transportation, maintenance,
standby plant protection, operation of utilities, or accounting;

\(3\) To perform tests, industrial processes, laboratory procedures,
loading or unloading of transportation conveyances, and operations in
flight or afloat that are continuous in nature and cannot reasonably be
interrupted or completed otherwise; or

\(4\) That will result in lower overall costs to the Government.

\(b\) Any request for estimated overtime premiums that exceeds the
amount specified above shall include all estimated overtime for contract
completion and shall\--

\(1\) Identify the work unit; e.g., department or section in which the
requested overtime will be used, together with present workload,
staffing, and other data of the affected unit sufficient to permit the
Contracting Officer to evaluate the necessity for the overtime;

\(2\) Demonstrate the effect that denial of the request will have on the
contract delivery or performance schedule;

\(3\) Identify the extent to which approval of overtime would affect the
performance or payments in connection with other Government contracts,
together with identification of each affected contract; and

\(4\) Provide reasons why the required work cannot be performed by using
multishift operations or by employing additional personnel.

\*\[insert either \"zero\" or the dollar amount agreed to during
communications. The inserted figure does not apply to the exceptions in
subparagraph (a)(1) through (a)(4) of the clause.\]

*(End of Clause)*

3.6.2-18 Davis Bacon Act

DAVIS-BACON ACT (April 1996)

\(a\) All laborers and mechanics employed or working upon the site of
the work will be paid unconditionally and not less often than once a
week, and without subsequent deduction or rebate on any account (except
such payroll deductions as are permitted by regulations issued by the
Secretary of Labor under the Copeland Act (29 CFR Part 3)), the full
amount of wages and bona fide fringe benefits (or cash equivalents
thereof due at time of payment computed at rates not less than those
contained in the wage determination of the Secretary of Labor which is
attached hereto and made a part hereof, regardless of any contractual
relationship which may be alleged to exist between the Contractor and
such laborers and mechanics. Contributions made or costs reasonably
anticipated for bona fide fringe benefits under section 1(b)(2) of the
Davis-Bacon Act on behalf of laborers or mechanics are considered wages
paid to such laborers or mechanics, subject to the provisions of
paragraph (d) of this clause; also, regular contributions made or costs
incurred for more than a weekly period (but not less often than
quarterly) under plans, funds, or programs which cover the particular
weekly period are deemed to be constructively made or incurred during
such period. Such laborers and mechanics shall be paid not less than the
appropriate wage rate and fringe benefits in the wage determination for
the classification of work actually performed, without regard to skill,
except as provided in the clause titled \"Apprentices, Trainees, and
Helpers.\" Laborers or mechanics performing work in more than one
classification may be compensated at the rate specified for each
classification for the time actually worked therein; provided, that the
employer\'s payroll records accurately set forth the time spent in each
classification in which work is performed. The wage determination
(including any additional classifications and wage rates conformed under
paragraph (b) of this clause) and the Davis-Bacon poster (WH-1321) shall
be posted at all times by the Contractor and its subcontractors at the
site of the work in a prominent and accessible place where it can be
easily seen by the workers.

\(b\) Additional wage classifications.

\(1\) The Contracting Officer shall require that any class of laborers
or mechanics, including helpers, which is not listed in the wage
determination and which is to be employed under the contract shall be
classified in conformance with the wage determination. The Contracting
Officer shall approve an additional classification, and wage rate and
fringe benefits therefor, only when all the following criteria have been
met:

\(A\) Except with respect to helpers as defined in 29 CFR 5.2(n)(4), the
work to be performed by the classification requested is not performed by
a classification in the wage determination.

\(B\) The classification is utilized in the area by the construction
industry.

\(C\) The proposed wage rate, including any bona fide fringe benefits,
bears a reasonable relationship to the wage rates contained in the wage
determination.

\(D\) With respect to helpers, such classification prevails in the area
in which the work is performed.

\(2\) If the Contractor and the laborers and mechanics to be employed in
the classification (if known), or their representatives, and the
Contracting Officer agree on the classification and wage rate (including
the amount designated for fringe benefits where appropriate), a report
of the action taken shall be sent by the Contracting Officer to the
Administrator of the Wage and Hour Division, Employment Standards
Administration, U.S. Department of Labor, Washington, DC 20210. The
Administrator or an authorized representative will approve, modify, or
disapprove every additional classification action within 30 days of
receipt and so advise the Contracting Officer or will notify the
Contracting Officer within the 30-day period that additional time is
necessary.

\(3\) In the event the Contractor, the laborers or mechanics to be
employed in the classification, or their representatives, and the
Contracting Officer do not agree on the proposed classification and wage
rate (including the amount designated for fringe benefits, where
appropriate), the Contracting Officer shall refer the questions,
including the views of all interested parties and the recommendation of
the Contracting Officer, to the Administrator of the Wage and Hour
Division for determination. The Administrator, or an authorized
representative, will issue a determination within 30 days of receipt and
so advise the Contracting Officer or will notify the Contracting Officer
within the 30-day period that additional time is necessary.

\(4\) The wage rate (including fringe benefits, where appropriate)
determined pursuant to subparagraphs (b)(2) or (b)(3) of this clause
shall be paid to all workers performing work in the classification under
this contract from the first day on which work is performed in the
classification.

\(c\) Whenever the minimum wage rate prescribed in the contract for a
class of laborers or mechanics includes a fringe benefit which is not
expressed as an hourly rate, the Contractor shall either pay the benefit
as stated in the wage determination or shall pay another bona fide
fringe benefit or an hourly cash equivalent thereof.

\(d\) If the Contractor does not make payments to a trustee or other
third person, the Contractor may consider as part of the wages of any
laborer or mechanic the amount of any costs reasonably anticipated in
providing bona fide fringe benefits under a plan or program; provided
that the Secretary of Labor has found, upon the written request of the
Contractor, that the applicable standards of the Davis-Bacon Act have
been met. The Secretary of Labor may require the Contractor to set aside
in a separate account assets for the meeting of obligations under the
plan or program.

\(e\) The FAA reserves the unilateral right to modify this contract to
incorporate changes to the wage rates issued by the Department of Labor.
If such changes cause an increase or decrease in the contractor\'s cost
of performance, the Contracting Officer shall equitably adjust the
contract price.

\(f\) The Contractor shall comply with the requirements of the Copeland
(\"Anti-Kickback\") Act (18 U.S.C. 874 and 40 U.S.C. 276c) and its
implementing regulations (29 CFR Part 3), which prohibit inducing or
intimidating employees to accept lessor compensation than they are
entitled to under a contract of employment.

*(End of Clause)*

3.6.2-19 Withholding - Labor Violations

WITHHOLDING - LABOR VIOLATIONS (April 1996)

The Contracting Officer may withhold, or cause to be withheld, from the
Contractor under this contract, or any other Federal contract with the
same Prime Contractor, as much of the otherwise due payments, advances,
or guarantee of funds, as may be considered necessary to pay laborers
and mechanics, including apprentices, trainees, and helpers, employed by
the Contractor or any subcontractor the full amount of wages and fringe
benefits required by the contract. In the event of failure to pay any
laborer or mechanic, including any apprentice, trainee, or helper,
employed, or working on the site of the work, all or part of the wages
required by the contract, the Contracting Officer may, after written
notice to the Contractor, take such action as may be necessary to cause
the suspension of any further payment, advance, or guarantee of funds
until such violations have ceased

*(End of Clause)*

3.6.2-20 Payrolls and Basic Records

PAYROLLS AND BASIC RECORDS (April 1996)

\(a\) Payrolls and basic records relating thereto shall be maintained by
the Contractor during the course of the work and preserved for a period
of 3 years thereafter for all laborers and mechanics working at the site
of the work. Such records shall contain the name, address and social
security number of each such worker, his or her correct classification,
hourly rates of wages paid (including rates of contributions or costs
anticipated for bona fide fringe benefits or cash equivalents thereof of
the types described in section 1(b)(2)(B) of the Davis-Bacon Act), daily
and weekly number of hours worked, deductions made, and actual wages
paid. Whenever the Secretary of Labor has found under paragraph (d) of
the clause entitled \"Davis-Bacon Act\" that the wages of any laborer or
mechanic include the amount of any costs reasonably anticipated in
providing benefits under a plan or program described in section 1
(b)(2)(B) of the Davis-Bacon Act, the Contractor shall maintain records
which show that the commitment to provide such benefits is enforceable,
that the plan or program is financially responsible, that the plan or
program has been communicated in writing to the laborers or mechanics
affected, and records which show the costs anticipated or the actual
cost incurred in providing such benefits. Contractors employing
apprentices or trainees under approved programs shall maintain written
evidence of the registration of apprenticeship programs and
certification of trainee programs, the registration of the apprentices
and trainees, and the ratios and wage rates prescribed in the applicable
programs.

(b)(1) Submission of payroll records to the Contracting Officer is not
required under this contract unless specifically requested by the
Contracting Officer. Providing the payrolls, when requested, shall be
prompt, and shall not be considered a change to the contract. The
payrolls submitted shall set out accurately and completely all of the
information required to be maintained under paragraph (a) of this clause
for the periods identified by the Contracting Officer. This information
may be submitted in any form desired. Optional Form WH-347 (Federal
Stock Number 029-005-00014-1) is available for this purpose and may be
purchased from the Superintendent of Documents, U.S. Government Printing
Office, Washington, DC 20402. The Prime Contractor is responsible for
the submission of copies of payrolls by all subcontractors.

\(2\) Each payroll submitted shall be accompanied by a \"Statement of
Compliance,\" signed by the Contractor or subcontractor or his or her
agent who pays or supervises the payment of the persons employed under
the contract and shall certify

\(A\) That the payroll for the payroll period contains the information
required to be maintained under paragraph (a) of this clause and that
such information is correct and complete;

\(B\) That each laborer or mechanic (including each helper, apprentice,
and trainee) employed on the contract during the payroll period has been
paid the full weekly wages earned, without rebate, either directly or
indirectly, and that no deductions have been made either directly or
indirectly from the full wages earned, other than permissible deductions
as set forth in the Regulations, 29 CFR Part 3; and

\(C\) That each laborer or mechanic has been paid not less than the
applicable wage rates and fringe benefits or cash equivalents for the
classification of work performed, as specified in the applicable wage
determination incorporated into the contract.

\(3\) The submission of a properly executed certification set forth on
the reverse side of Optional Form WH-347 shall satisfy the requirement
for submission of the \"Statement of Compliance\" required by paragraph
(b)(2) of this clause.

\(4\) The falsification of any of the above certifications in this
clause may subject the Contractor or subcontractor to civil or criminal
prosecution under Section 1001 of Title 18 and Section 3729 of Title 31
of the United States Code.

\(c\) The Contractor or subcontractor shall make the records required
under paragraph (a) of this clause available for inspection, copying, or
transcription by the Contracting Officer or authorized representatives
of the Contracting Officer or the Department of Labor. The Contractor or
subcontractor shall permit the Contracting Officer or representatives of
the Contracting Officer or the Department of Labor to interview
employees during working hours on the job. If the Contractor or
subcontractor fails to submit required records or to make them
available, the Contracting Officer may, after written notice to the
Contractor, take such action as may be necessary to cause the suspension
of any further payment. Furthermore, failure to submit the required
records upon request or to make such records available may be grounds
for debarment action pursuant to 29 CFR 5.12.

*(End of Clause)*

3.6.2-21 Apprentices, Trainees, and Helpers

APPRENTICES, TRAINEES AND HELPERS (April 1996)

\(a\) Apprentices. Apprentices will be permitted to work at less than
the predetermined rate for the work they performed when they are
employed pursuant to and individually registered in a bona fide
apprenticeship program registered with the U.S. Department of Labor,
Employment and Training Administration, Bureau of Apprenticeship and
Training, or with a State Apprenticeship Agency recognized by the
Bureau, or if a person is employed in his or her first 90 days of
probationary employment as an apprentice in such an apprenticeship
program, who is not individually registered in the program, but who has
been certified by the Bureau of Apprenticeship and Training or a State
Apprenticeship Agency (where appropriate) to be eligible for
probationary employment as an apprentice. The allowable ratio of
apprentices to journeymen on the job site in any craft classification
shall not be greater than the rate permitted to the Contractor as to the
entire work force under the registered program. Any worker listed on a
payroll at an apprentice wage rate, who is not registered or otherwise
employed as stated in this paragraph, shall be paid not less than the
applicable wage determination for the classification of work actually
performed. In addition, any apprentice performing work on the job site
in excess of the ratio permitted under the registered program shall be
paid not less than the applicable wage rate on the wage determination
for the work actually performed. Where a contractor is performing
construction on a project in a locality other than that in which its
program is registered, the ratios and wage rates (expressed in
percentages of the journeyman's hourly rate) specified in the
Contractor\'s or subcontractor\'s registered program shall be observed.
Every apprentice must be paid at not less than the rate specified in the
registered program for the apprentice\'s level of progress, expressed
as; a percentage of the journeyman hourly rate specified in the
applicable wage determination. Apprentices shall be paid fringe benefits
in accordance with the provisions of the apprenticeship program. If the
apprenticeship program does not specify fringe benefits, apprentices
must be paid the full amount of fringe benefits listed on the wage
determination for the applicable classification. If the DOL determines
that a different practice prevails for the applicable apprentice
classification, fringes shall be paid in accordance with that
determination. In the event the Bureau of Apprenticeship and Training,
or a State Apprenticeship Agency recognized by the Bureau, withdraws
approval of an apprenticeship program, the Contractor will no longer be
permitted to utilize apprentices at less than the applicable
predetermined rate for the work performed until an acceptable program is
approved.

\(b\) Trainees. Except as provided in 29 CFR 5.16, trainees will not be
permitted to work at less than the predetermined rate for-the work
performed unless they are employed pursuant to and individually
registered in a program which has received prior approval, evidenced by
formal certification by the U.S. Department of Labor, Employment and
Training Administration. The ratio of trainees to journeymen on the job
site shall not be greater than permitted under the plan approved by the
Employment and Training Administration. Every trainee must be paid at
not less than the rate specified in the approved program for the
trainee's level of progress, expressed as a percentage of the journeyman
hourly rate specified in the applicable wage determination. Trainees
shall be paid fringe benefits in accordance with the provisions of the
trainee program. If the trainee program does not mention fringe
benefits, trainees shall be paid the full amount of fringe benefits
listed in the wage determination unless the Wage and Hour Division
determines that there is an apprenticeship program associated with the
corresponding journeyman wage rate in the wage determination which
provides for less than full fringe benefits for apprentices. Any
employee listed on the payroll at a trainee rate who is not registered
and participating in a training plan approved by the Employment and
Training Administration shall be paid not less than the applicable wage
rate in the wage determination for the classification of work actually
performed. In addition, any trainee performing work on the job site in
excess of the ratio permitted under the registered program shall be paid
not less than the applicable wage rate on the wage determination for the
work actually performed. In the event the Employment and Training
Administration withdraws approval of a training program, the Contractor
will no longer be permitted to utilize trainees at less than the
applicable predetermined rate for the work performed until an acceptable
program is approved.

\(c\) Helpers. Helpers will be permitted to work on a project if the
helper classification is specified on an applicable wage determination
or is approved pursuant to the conformance procedures set forth in
paragraph (b) of the Davis Bacon Act clause. The allowable ratio of
helpers to journeymen employed by the Contractor or subcontractor on the
job site shall not be greater than two helpers for every three
journeymen (in other words, not more than 40% of the total number of
journeymen and helpers in each contractor\'s, or in each
subcontractor\'s own workforce employed on the job site). Any worker
listed on a payroll at a helper wage rate, who is not a helper as
defined in 29 CFR 5.2(n)(4), shall be paid not less than the applicable
wage rate on the wage determination for the classification of work
actually performed. In addition, any helper performing work on The job
site in excess of the ratio permitted shall be paid not less than the
applicable journeymen's (or laborer\'s, where appropriate) wage rate on
the wage determination for the work actually performed.

\(d\) Equal employment opportunity. The utilization of apprentices,
trainees, helpers and journeymen under this clause shall be in
conformity with the equal employment opportunity requirements of
Executive Order 11246 and 29 CFR Part 30.

*(End of Clause)*

3.6.2-22 Subcontracts (Labor Standards)

SUBCONTRACTS (LABOR STANDARDS) (April 1996)

\(a\) The Contractor or subcontractor shall include in any subcontracts
the clauses entitled \"Davis-Bacon Act,\" \"Apprentices ,Trainees and
Helpers,\" \"Payrolls and Basic Records,\" \'Withholding \-- Labor
Violations,\" \"Subcontracts (Labor Standards),\" and \"Certificate of
Eligibility.\" The Contractor shall include a clause requiring its
subcontractors to include these clauses in any lower-tier subcontracts.
The Prime Contractor shall be responsible for compliance by any
subcontractor or lower tier subcontractor with all the contract clauses
cited in this paragraph.

\(b\) Notification of subcontracting.

\(1\) Within 14 days after award of the contract, the Contractor shall
deliver to the Contracting Officer a completed Statement and
Acknowledgment Form (SF 1413) for each subcontract, including the
subcontractor\'s signed and dated acknowledgment that the clauses set
forth in paragraph (a) of this clause have been included in the
subcontract.

\(2\) Within 14 days after the award of any subsequently awarded
subcontract the Contractor shall deliver to the Contracting Officer an
updated completed SF 1413 for such additional subcontract.

*(End of Clause)*

3.6.2-23 Certification of Eligibility

CERTIFICATION OF ELIGIBILITY (April 1996)

\(a\) By entering into this contract, the Contractor certifies that
neither it (nor he or she) nor any person or firm who has an interest in
the Contractor\'s firm is a person or firm ineligible to be awarded
Government contracts by virtue of section 3(a) of the Davis-Bacon Act or
29 CFR 5.12(a)(1)

\(b\) No part of this contract shall be subcontracted to any person or
firm ineligible for award of a Government contract by virtue of section
3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1).

\(c\) The penalty for making false statements is prescribed in the U.S.
Criminal Code, 18 U.S.C. 1001.

*(End of Clause)*

3.6.2-24 Affirmative Action Compliance Requirements for Construction

AFFIRMATIVE ACTION COMPLIANCE REQUIREMENTS

FOR CONSTRUCTION (April 1996)

\(a\) Definitions.

\(1\) \"Employer identification number,\" as used in this clause, means
the Federal Social Security number used on the employer\'s quarterly
federal tax return, U.S. Treasury Department Form 941.

\(2\) \"Minority,\" as used in this clause, means

\(i\) Black (all persons having origins in any of the black African
racial groups not of Hispanic origin);

\(ii\) Hispanic (all persons of Mexican, Puerto Rican, Cuban, Central or
South American, or other Spanish culture or origin, regardless of race);

\(iii\) Asian and Pacific Islander (all persons having origins in any of
the original peoples of the Far East, Southeast Asia, the Indian
Subcontinent, or the Pacific Islands); and

\(iv\) American Indian or Alaskan Native (all persons having origins in
any of the original peoples of North America and maintaining
identifiable tribal affiliations through membership and participation or
community identification).

\(b\) If the Contractor, or a subcontractor at any tier, subcontracts a
portion of the work involving any construction trade, each such
subcontract in excess of \$35,000 shall include this clause, including
the goals for minority and female participation stated herein.

\(c\) The goals for minority and female participation, expressed in
percentage terms for the Contractor\'s aggregate work force in each
trade on all construction work in the covered area, are as follows:

Goals for minority participation:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Goals for female participation:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\[Contracting Officer insert goals\]

Compliance with the goals will be measured against the total work hours
performed.

\(d\) The Contractor shall provide written notification to the Office of
Federal Contract Compliance Programs (OFCCP) area office within 10
working days following award of any construction subcontract in excess
of \$35,000 at any tier for construction work under the contract
resulting from this screening information request. The notification
shall list the:

\(1\) Name, address, and telephone number of the subcontractor,

\(2\) Employer identification number of the subcontractor;

\(3\) Estimated dollar amount of the subcontract;

\(4\) Estimated starting and completion dates of the subcontract; and

\(5\) Geographical area in which the subcontract is to be performed.

\(e\) The Contractor shall implement the affirmative action procedures
in subparagraphs (f)(1) through (7) of this clause. The goals stated in
this contract are expressed as percentages of the total hours of
employment and training of minority and female utilization that the
Contractor should reasonably be able to achieve in each construction
trade in which it has employees in the covered area. If the contractor
performs construction work in a geographical area located outside of the
covered area, it shall apply the goals established for the geographical
area where that work is actually performed. The Contractor is expected
to make substantially uniform progress toward its goals in each craft.

\(f\) The contractor shall take affirmative action steps at least as
extensive as the following:

\(1\) Ensure a working environment free of harassment, intimidation, and
coercion at all sites, and in all facilities where the Contractor\'s
employees are assigned to work. The Contractor, if possible, will assign
two or more women to each construction project. The Contractor shall
ensure that foremen, superintendents, and other on-site supervision,
personnel are aware of and carry out the Contractor\'s obligation to
maintain such a working environment, with specific attention to minority
or female individuals working at these sites or facilities.

\(2\) Immediately notify the OFCCP area office when the union or unions,
with which the Contractor has a collective bargaining agreement, has not
referred back to the Contractor a minority or woman sent by the
Contractor, or when the Contractor has other information that the union
referral process has impeded the Contractor\'s efforts to meet its
obligations.

\(3\) Develop on-the-job training opportunities and/or participate in
training programs for the area that expressly include minorities and
women, including upgrading programs and apprenticeship and trainee
programs relevant to the Contractor\'s employment needs, especially
those programs funded or approved by the Department of Labor. The
Contractor shall provide notice of these programs to the sources
compiled under subparagraph (f)(2) above.

\(4\) Review, at least annually, the Contractor\'s equal employment
policy and affirmative action obligations with all employees having
responsibility for hiring, assignment, layoff, termination, or other
employment decisions. Conduct reviews of this policy with all on-site
supervision, personnel prior to initiation of construction work at a job
site. A written record shall be made and maintained identifying the time
and place of these meetings, persons attending, subject matter
discussed, and disposition of the subject matter.

\(5\) Disseminate the Contractor\'s equal employment policy externally
by including it in any advertising in the news media, specifically
including minority and female news media. Provide written notification
to, and discuss this policy with, other Contractors and subcontractors
with which the Contractor does or anticipates doing business.

\(6\) Conduct, at least annually, an inventory and evaluation at least
of all minority and female personnel for promotional opportunities.
Encourage these employees to seek or to prepare for, through appropriate
training, etc., opportunities for promotion.

\(7\) Maintain a record of solicitations for subcontracts for minority
and female construction contractors and suppliers, including circulation
of solicitations to minority and -female contractor associations and
other business associations.

\(g\) The Contractor is encouraged to participate in voluntary
associations that may assist in fulfilling one or more of the
affirmative action obligations contained in subparagraphs (f)(1) through
(7). The efforts of a contractor association, joint contractor-union,
contractor-community, or similar group of which the contractor is a
member and participant, may be useful in achieving one or more of its
obligations under subparagraphs (f)(1) through (7).

\(h\) A single goal for minorities and a separate single goal for women
shall be established. The Contractor is required to provide equal
employment opportunity and to take affirmative action for all minority
groups, both male and female, and all women, both minority and
non-minority. Consequently, the Contractor may be in violation of
Executive Order 11246, as amended, if a particular group is employed in
a substantially disparate manner.

\(i\) The contractor shall not use goals or affirmative action standards
to discriminate against any person because of race, color, religion,
sex, or national origin.

\(j\) The Contractor shall not enter into any subcontract with any
person or firm debarred from Government contracts under Executive Order
11246, as amended.

\(k\) The Contractor shall carry out such sanctions and penalties for
violation of this clause and of the Nondiscrimination and Affirmative
Action clause, including suspension, termination, and cancellation of
existing subcontracts, as may be imposed or ordered under Executive
Order 11246, as amended, and its implementing regulations, by the OFCCP.
Any failure to carry out these sanctions and penalties as ordered shall
be a violation of this clause and Executive Order 11246, as amended.

\(I\) Nothing contained herein shall be construed as a limitation upon
the application of other laws that establish different standards of
compliance.

*(End of Clause)*

3.6.2-25 Equal Opportunity Preaward Clearance of Subcontracts

EQUAL OPPORTUNITY PREAWARD CLEARANCE OF SUBCONTRACTS (April 1996)

Notwithstanding the clause of this contract titled \"Subcontracts,\" the
Contractor shall not enter into a first-tier subcontract for an
estimated or actual amount of \$1 million or more without obtaining in
writing from the Contracting Officer a clearance that the proposed
subcontractor is in compliance with equal opportunity requirements and
therefore is eligible for award.

*(End of Clause)*

3.6.2-26 Utilization of Indian Organizations and Indian Owned Economic
Enterprises

UTILIZATION OF INDIAN ORGANIZATIONS AND INDIAN-OWNED

ECONOMIC ENTERPRISES (April 1996)

\(a\) This clause applies only if the contract includes a subcontracting
plan incorporated under the terms of the clause titled, "Small Business
and Small Disadvantaged Business Subcontracting Plan."

\(b\) Definitions.

\(1\) As used in this clause, "Indian organization" means the governing
body of any Indian tribe (as defined by 25 U.S.C. 1452(c)) or entity
established or recognized by the governing body for the purposes of 25
U.S.C., chapter 17.

\(2\) "Indian-owned economic enterprise" means any Indian-owned (as
determined by the Secretary of the Interior) commercial, industrial, or
business activity established or organized for the purpose of profit,
provided that Indian ownership shall constitute not less than 51 percent
of the enterprise.

\(c\) The Contractor agrees to use its best efforts to give Indian
organizations and Indian-owned economic enterprises the (25 U.S.C. 1544)
maximum practicable opportunity to participate in the subcontracts it
awards to the fullest extent consistent with efficient performance of
its contract.

\(1\) The Contractor may rely on the written representation of the
Indian organization or Indian-owned economic enterprise.

\(2\) If the cost of subcontracting with an Indian organization or
Indian-owned economic enterprise exceeds the cost of acquiring the
supplies or services from a non-Indian source, the Contractor may
request an adjustment to the following: (i) The estimated cost of a
cost-type contract; (ii) The target cost of a cost-plus-incentive-fee
prime contract; (iii) The target cost and ceiling price of a fixed-price
incentive prime contract; or (iv) The price of a firm-fixed-price prime
contract.

\(3\) The amount of the equitable adjustment to the prime contract shall
be the lesser of\--

\(i\) The difference between the estimated cost, target cost or
firm-fixed-price included in the subcontract initially awarded to the
Indian organization or enterprise and the corresponding estimated cost,
target cost or firm-fixed-price which would have been included in a
subcontract with the otherwise low, non-Indian offeror; or

\(ii\) Five percent of the estimated cost, target cost or
firm-fixed-price included in the subcontract initially awarded to the
Indian organization or enterprise.

\(4\) The Contractor has the burden of proving the amount claimed and
must assert its request for an adjustment prior to completion of
contract performance.

\(d\) The Contracting Officer shall decide the amount of the adjustment
and modify the contract accordingly. The Contracting Officer\'s decision
is final and not subject to the "Contract Disputes" clause of this
contract.

*(End of Clause)*

3.6.2-27 Service Contract Act of 1965, as Amended\--Contracts of \$2,500
or Less

SERVICE CONTRACT ACT OF 1965, AS AMENDED-CONTRACTS OF \$2,500 OR LESS
(APRIL 1996)

Except to the extent that an exemption, variation, or tolerance would
apply if this contract were in excess of \$2,500, the Contractor and any
subcontractor shall pay all employees working on the contract not less
than the minimum wage specified under section 6(a)(1) of the Fair Labor
Standards Act of 1938, as amended (29 U.S.C. 201-206). Regulations and
interpretations of the Service Contract Act of 1965, as amended, are
contained in 29 CFR Part 4.

*(End of clause)*

3.6.2-28 Service Contract Act of 1965, as Amended

SERVICE CONTRACT ACT OF 1965, AS AMENDED (APRIL 1996)

\(a\) Definitions.

\(1\) Act, as used in this clause, means the Service Contract Act of
1965, as amended (41 U.S.C. 351, et seq.).

\(2\) Contractor, as used in this clause or in any subcontract, shall be
deemed to refer to the subcontractor, except in the term Government
Prime Contractor.

\(3\) Service employee, as used in this clause, means any person engaged
in the performance of this contract other than any person employed in a
bona fide executive, administrative, or professional capacity, as these
terms are defined in Part 541 of title 29, Code of Federal Regulations,
as revised. It includes all such persons regardless of any contractual
relationship that may be alleged to exist between a Contractor or
subcontractor and such persons.

\(b\) Applicability. This contract is subject to the following
provisions and to all other applicable provisions of the Act and
regulations of the Secretary of Labor (29 CFR Part 4). This clause does
not apply to contracts or subcontracts administratively exempted by the
Secretary of Labor or exempted by 41 U.S.C. 356, as interpreted in
subpart C of 29 CFR Part 4.

\(c\) Compensation.

\(1\) Each service employee employed in the performance of this contract
by the Contractor or any subcontractor shall be paid not less than the
minimum monetary wages and shall be furnished fringe benefits in
accordance with the wages and fringe benefits determined by the
Secretary of Labor, or authorized representative, as specified in any
wage determination attached to this contract.

(2)(i) If a wage determination is attached to this contract, the
Contractor shall classify any class of service employee which is not
listed therein and which is to be employed under the contract (i.e., the
work to be performed is not performed by any classification listed in
the wage determination) so as to provide a reasonable relationship
(i.e., appropriate level of skill comparison) between such unlisted
classifications and the classifications listed in the wage
determination. Such conformed class of employees shall be paid the
monetary wages and furnished the fringe benefits as are determined
pursuant to the procedures in this paragraph (c).

\(ii\) This conforming procedure shall be initiated by the Contractor
prior to the performance of contract work by the unlisted class of
employee. The Contractor shall submit Standard Form (SF) 1444, Request
for Authorization of Additional Classification and Rate, to the
Contracting Officer no later than 30 days after the unlisted class of
employee performs any contract work. The Contracting Officer shall
review the proposed classification and rate and promptly submit the
completed SF 1444 (which must include information regarding the
agreement or disagreement of the employees\' authorized representatives
or the employees themselves together with the agency recommendation),
and all pertinent information to the Wage and Hour Division, Employment
Standards Administration U.S. Department of Labor. The Wage and Hour
Division will approve, modify, or disapprove the action or render a
final determination in the event of disagreement within 30 days of
receipt or will notify the Contracting Officer within 30 days of receipt
that additional time is necessary.

\(iii\) The final determination of the conformance action by the Wage
and Hour Division shall be transmitted to the Contracting Officer who
shall promptly notify the Contractor of the action taken. Each affected
employee shall be furnished by the Contractor with a written copy of
such determination or it shall be posted as a part of the wage
determination.

(iv)(A) The process of establishing wage and fringe benefit rates that
bear a reasonable relationship to those listed in a wage determination
cannot be reduced to any single formula. The approach used may vary from
wage determination to wage determination depending on the circumstances.
Standard wage and salary administration practices which rank various job
classifications by pay grade pursuant to point schemes or other job
factors may, for example, be relied upon. Guidance may also be obtained
from the way different jobs are rated under Federal pay systems (Federal
Wage Board Pay System and the General Schedule) or from other wage
determinations issued in the same locality. Basic to the establishment
of any conformable wage rate(s) is the concept that a pay relationship
should be maintained between job classifications based on the skill
required and the duties performed.

\(B\) In the case of a contract modification, an exercise of an option,
or extension of an existing contract, or in any other case where a
Contractor succeeds a contract under which the classification in
question was previously conformed pursuant to paragraph (c) of this
clause, a new conformed wage rate and fringe benefits may be assigned to
the conformed classification by indexing (i.e., adjusting) the previous
conformed rate and fringe benefits by an amount equal to the average
(mean) percentage increase (or decrease, where appropriate) between the
wages and fringe benefits specified for all classifications to be used
on the contract which are listed in the current wage determination, and
those specified for the corresponding classifications in the previously
applicable wage determination. Where conforming actions are accomplished
in accordance with this paragraph prior to the performance of contract
work by the unlisted class of employees, the Contractor shall advise the
Contracting Officer of the action taken but the other procedures in
subdivision (c)(2)(ii) of this clause need not be followed.

\(C\) No employee engaged in performing work on this contract shall in
any event be paid less than the currently applicable minimum wage
specified under section 6(a)(1) of the Fair Labor Standards Act of 1938,
as amended.

\(v\) The wage rate and fringe benefits finally determined under this
subparagraph (c)(2) of this clause shall be paid to all employees
performing in the classification from the first day on which contract
work is performed by them in the classification. Failure to pay the
unlisted employees the compensation agreed upon by the interested
parties and/or finally determined by the Wage and Hour Division
retroactive to the date such class of employees commenced contract work
shall be a violation of the Act and this contract.

\(vi\) Upon discovery of failure to comply with subparagraph (c)(2) of
this clause, the Wage and Hour Division shall make a final determination
of conformed classification, wage rate, and/or fringe benefits which
shall be retroactive to the date such class or classes of employees
commenced contract work.

\(3\) Adjustment of Compensation. If the term of this contract is more
than 1 year, the minimum monetary wages and fringe benefits required to
be paid or furnished thereunder to service employees under this contract
shall be subject to adjustment after 1 year and not less often than once
every 2 years, under wage determinations issued by the Wage and Hour
Division.

\(d\) Obligation to Furnish Fringe Benefits. The Contractor or
subcontractor may discharge the obligation to furnish fringe benefits
specified in the attachment or determined under subparagraph (c)(2) of
this clause by furnishing equivalent combinations of bona fide fringe
benefits, or by making equivalent or differential cash payments, only in
accordance with subpart D of 29 CFR Part 4

\(e\) Minimum Wage. In the absence of a minimum wage attachment for this
contract, neither the Contractor nor any subcontractor under this
contract shall pay any person performing work under this contract
(regardless of whether the person is a service employee) less than the
minimum wage specified by section 6(a)(1) of the Fair Labor Standards
Act of 1938. Nothing in this clause shall relieve the Contractor or any
subcontractor of any other obligation under law or contract for payment
of a higher wage to any employee.

\(f\) Successor Contracts. If this contract succeeds a contract subject
to the Act under which substantially the same services were furnished in
the same locality and service employees were paid wages and fringe
benefits provided for in a collective bargaining agreement, in the
absence of the minimum wage attachment for this contract setting forth
such collectively bargained wage rates and fringe benefits, neither the
Contractor nor any subcontractor under this contract shall pay any
service employee performing any of the contract work (regardless of
whether or not such employee was employed under the predecessor
contract), less than the wages and fringe benefits provided for in such
collective bargaining agreement, to which such employee would have been
entitled if employed under the predecessor contract, including accrued
wages and fringe benefits and any prospective increases in wages and
fringe benefits provided for under such agreement. No Contractor or
subcontractor under this contract may be relieved of the foregoing
obligation unless the limitations of 29 CFR 4.1b(b) apply or unless the
Secretary of Labor or the Secretary\'s authorized representative finds,
after a hearing as provided in 29 CFR 4.10 that the wages and/or fringe
benefits provided for in such agreement are substantially at variance
with those which prevail for services of a character similar in the
locality, or determines, as provided in 29 CFR 4.11, that the collective
bargaining agreement applicable to service employees employed under the
predecessor contract was not entered into as a result of arm\'s length
negotiations. Where it is found in accordance with the review procedures
provided in 29 CFR 4.10 and/or 4.11 and Parts 6 and 8 that some or all
of the wages and/or fringe benefits contained in a predecessor
Contractor\'s collective bargaining agreement are substantially at
variance with those which prevail for services of a character similar in
the locality, and/or that the collective bargaining agreement applicable
to service employees employed under the predecessor contract was not
entered into as a result of arm\'s length negotiations, the Department
will issue a new or revised wage determination setting forth the
applicable wage rates and fringe benefits. Such determination shall be
made part of the contract or subcontract, in accordance with the
decision of the Administrator, the Administrative Law Judge, or the
Board of Service Contract Appeals, as the case may be, irrespective of
whether such issuance occurs prior to or after the award of a contract
or subcontract (53 Comp. Gen. 401 (1973)). In the case of a wage
determination issued solely as a result of a finding of substantial
variance, such determination shall be effective as of the date of the
final administrative decision.

\(g\) Notification to Employees. The Contractor and any subcontractor
under this contract shall notify each service employee commencing work
on this contract of the minimum monetary wage and any fringe benefits
required to be paid pursuant to this contract, or shall post the wage
determination attached to this contract. The poster provided by the
Department of Labor (Publication WH 1313) shall be posted in a prominent
and accessible place at the worksite. Failure to comply with this
requirement is a violation of section 2(a)(4) of the Act and of this
contract.

\(h\) Safe and Sanitary Working Conditions. The Contractor or
subcontractor shall not permit any part of the services called for by
this contract to be performed in buildings or surroundings or under
working conditions provided by or under the control or supervision of
the Contractor or subcontractor which are unsanitary, hazardous, or
dangerous to the health or safety of the service employees. The
Contractor or subcontractor shall comply with the safety and health
standards applied under 29 CFR Part 1925.

\(i\) Records.

\(1\) The Contractor and each subcontractor performing work subject to
the Act shall make and maintain for 3 years from the completion of the
work, and make them available for inspection and transcription by
authorized representatives of the Wage and Hour Division, Employment
Standards Administration, a record of the following:

\(i\) For each employee subject to the Act-

\(A\) Name and address and social security number;

\(B\) Correct work classification or classifications, rate or rates of
monetary wages paid and fringe benefits provided, rate or rates of
payments in lieu of fringe benefits, and total daily and weekly
compensation;

\(C\) Daily and weekly hours worked by each employee; and

\(D\) Any deductions, rebates, or refunds from the total daily or weekly
compensation of each employee.

\(ii\) For those classes of service employees not included in any wage
determination attached to this contract, wage rates or fringe benefits
determined by the interested parties or by the Administrator or
authorized representative under the terms of paragraph (c) of this
clause. A copy of the report required by subdivision (c)(2)(ii) of this
clause will fulfill this requirement.

\(iii\) Any list of the predecessor Contractor\'s employees which had
been furnished to the Contractor as prescribed by paragraph (n) of this
clause.

\(2\) The Contractor shall also make available a copy of this contract
for inspection or transcription by authorized representatives of the
Wage and Hour Division.

\(3\) Failure to make and maintain or to make available these records
for inspection and transcription shall be a violation of the regulations
and this contract, and in the case of failure to produce these records,
the Contracting Officer, upon direction of the Department of Labor and
notification to the Contractor, shall take action to cause suspension of
any further payment or advance of funds until the violation ceases.

\(4\) The Contractor shall permit authorized representatives of the Wage
and Hour Division to conduct interviews with employees at the worksite
during normal working hours.

\(j\) Pay Periods. The Contractor shall unconditionally pay to each
employee subject to the Act all wages due free and clear and without
subsequent deduction (except as otherwise provided by law or
Regulations, 29 CFR Part 4), rebate, or kickback on any account. These
payments shall be made no later than one pay period following the end of
the regular pay period in which the wages were earned or accrued. A pay
period under this Act may not be of any duration longer than
semi-monthly.

\(k\) Withholding of Payments and Termination of Contract. The
Contracting Officer shall withhold or cause to be withheld from the
Government Prime Contractor under this or any other Government contract
with the Prime Contractor such sums as an appropriate official of the
Department of Labor requests or such sums as the Contracting Officer
decides may be necessary to pay underpaid employees employed by the
Contractor or subcontractor. In the event of failure to pay any
employees subject to the Act all or part of the wages or fringe benefits
due under the Act, the Contracting Officer may, after authorization or
by direction of the Department of Labor and written notification to the
Contractor, take action to cause suspension of any further payment or
advance of funds until such violations have ceased. Additionally, any
failure to comply with the requirements of this clause may be grounds
for termination of the right to proceed with the contract work. In such
event, the Government may enter into other contracts or arrangements for
completion of the work, charging the Contractor in default with any
additional cost.

\(l\) Subcontracts. The Contractor agrees to insert this clause in all
subcontracts subject to the Act.

\(m\) Collective Bargaining Agreements Applicable to Service Employees.
If wages to be paid or fringe benefits to be furnished any service
employees employed by the Government Prime Contractor or any
subcontractor under the contract are provided for in a collective
bargaining agreement which is or will be effective during any period in
which the contract is being performed, the Government Prime Contractor
shall report such fact to the Contracting Officer, together with full
information as to the application and accrual of such wages and fringe
benefits, including any prospective increases, to service employees
engaged in work on the contract, and a copy of the collective bargaining
agreement. Such report shall be made upon commencing performance of the
contract, in the case of collective bargaining agreements effective at
such time, and in the case of such agreements or provisions or
amendments thereof effective at a later time during the period of
contract performance such agreements shall be reported promptly after
negotiation thereof.

\(n\) Seniority List. Not less than 10 days prior to completion of any
contract being performed at a Federal facility where service employees
may be retained in the performance of the succeeding contract and
subject to a wage determination which contains vacation or other benefit
provisions based upon length of service with a Contractor (predecessor)
or successor (29 CFR 4.173), the incumbent Prime Contractor shall
furnish the Contracting Officer a certified list of the names, of all
service employees on the Contractor\'s or subcontractor\'s payroll
during the last month of contract performance. Such list shall also
contain anniversary dates of employment on the contract either with the
current or predecessor Contractors of each such service employee. The
Contracting Officer shall turn over such list to the successor
Contractor at the commencement of the succeeding contract.

\(o\) Rulings and Interpretations. Rulings and interpretations of the
Act are contained in Regulations, 29 CFR Part 4.

\(p\) Contractor\'s Certification.

\(1\) By entering into this contract, the Contractor (and officials
thereof) certifies that neither it (nor he or she) nor any person or
firm who has a substantial interest in the Contractor\'s firm is a
person or firm ineligible to be awarded Government contracts by virtue
of the sanctions imposed under section 5 of the Act.

\(2\) No part of this contract shall be subcontracted to any person or
firm ineligible for award of a Government contract under section 5 of
the Act.

\(3\) The penalty for making false statements is prescribed in the U.S.
Criminal Code, 18 U.S.C. 1001.

\(q\) Variations, Tolerances, and Exemptions Involving Employment.
Notwithstanding any of the provisions in paragraphs (b) through (o) of
this clause, the following employees may be employed in accordance with
the following variations, tolerances, and exemptions, which the
Secretary of Labor, pursuant to section 4(b) of the Act prior to its
amendment by P. L. 92-473, found to be necessary and proper in the
public interest or to avoid serious impairment of the conduct of
Government business.

\(1\) Apprentices, student-learners, and workers whose earning capacity
is impaired by age, physical or mental deficiency or injury may be
employed at wages lower than the minimum wages otherwise required by
section 2(a)(1) or 2(b)(1) of the Act without diminishing any fringe
benefits or cash payments in lieu thereof required under section 2(a)(2)
of the Act, in accordance with the conditions and procedures prescribed
for the employment of apprentices, student-learners, handicapped
persons, and handicapped clients of sheltered workshops under section 14
of the Fair Labor Standards Act of 1938, in the regulations issued by
the Administrator (29 CFR Parts 520, 521, 524, and 525).

\(2\) The Administrator will issue certificates under the Act for the
employment of apprentices, student-learners, handicapped persons, or
handicapped clients of sheltered workshops not subject to the Fair Labor
Standards Act of 1938, or subject to different minimum rates of pay
under the two acts, authorizing appropriate rates of minimum wages (but
without changing requirements concerning fringe benefits or
supplementary cash payments in lieu thereof), applying procedures
prescribed by the applicable regulations issued under the Fair Labor
Standards Act of 1938 (29 CFR Parts 520, 521, 524, and 525).

\(3\) The Administrator will also withdraw, annul, or cancel such
certificates in accordance with the regulations in 29 CFR Parts 525 and
528.

\(r\) Apprentices. Apprentices will be permitted to work at less than
the predetermined rate for the work they perform when they are employed
and individually registered in a bona fide apprenticeship program
registered with a State Apprenticeship Agency which is recognized by the
U.S. Department of Labor, or if no such recognized agency exists in a
State, under a program registered with the Bureau of Apprenticeship and
Training, Employment and Training Administration, U.S. Department of
Labor. Any employee who is not registered as an apprentice in an
approved program shall be paid the wage rate and fringe benefits
contained in the applicable wage determination for the journeyman
classification of work actually performed. The wage rates paid
apprentices shall not be less than the wage rate for their level of
progress set forth in the registered program, expressed as the
appropriate percentage of the journeyman\'s rate contained in the
applicable wage determination. The allowable ratio of apprentices to
journeymen employed on the contract work in any craft classification
shall not be greater than the ratio permitted to the Contractor as to
his entire work force under the registered program.

\(s\) Tips. An employee engaged in an occupation in which the employee
customarily and regularly receives more than \$30 a month in tips may
have the amount of these tips credited by the employer against the
minimum wage required by section 2(a)(1) or section 2(b)(1) of the Act,
in accordance with section 3(m) of the Fair Labor Standards Act and
Regulations 29 CFR part 531. However, the amount of credit shall not
exceed \$1.34 per hour beginning January l, 1981. To use this provision-

\(1\) The employer must inform tipped employees about this tip credit
allowance before the credit is utilized;

\(2\) The employees must be allowed to retain all tips (individually or
through a pooling arrangement and regardless of whether the employer
elects to take a credit for tips received);

\(3\) The employer must be able to show by records that the employee
receives at least the applicable Service Contract Act minimum wage
through the combination of direct wages and tip credit;

\(4\) The use of such tip credit must have been permitted under any
predecessor collective bargaining agreement applicable by virtue of
section 4(c) of the Act.

\(t\) Disputes Concerning Labor Standards. The U.S. Department of Labor
has set forth in 29 CFR Parts 4, 6, and 8 procedures for resolving
disputes concerning labor standards requirements. Such disputes shall be
resolved in accordance with those procedures and not the "Disputes"
clause of this contract. Disputes within the meaning of this clause
include disputes between the Contractor (or any of its subcontractors)
and the contracting agency, the U.S. Department of Labor, or the
employees or their representatives.

*(End of clause)*

3.6.2-29 Statement of Equivalent Rates for Federal Hires

STATEMENT OF EQUIVALENT RATES FOR FEDERAL HIRES (APRIL 1996)

In compliance with the Service Contract Act of 1965, as amended, and the
regulations of the Secretary of Labor (29 CFR Part 4), this clause
identifies the classes of service employees expected to be employed
under the contract and states the wages and fringe benefits payable to
each if they were employed by the contracting agency subject to the
provisions of 5 U.S.C. 5341 or 5332. This Statement is for Information
Only: It Is Not a Wage Determination

  ----------------------- ------ -----------------------------------------
  Employee class                 Monetary Wage-Fringe Benefits

                                 

                                 

                                 

                                 

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

*(End of clause)*

3.6.2-30 Fair Labor Standards Act and Service Contract Act\--Price
Adjustment (Multiple Year and Option Contracts)

FAIR LABOR STANDARDS ACT AND SERVICE CONTRACT ACT\--PRICE ADJUSTMENT
(MULTIPLE YEAR AND OPTION CONTRACTS) (APRIL 1996)

\(a\) This clause applies to both contracts subject to area prevailing
wage determinations and contracts subject to collective bargaining
agreements.

\(b\) The Contractor warrants that the prices in this contract do not
include any allowance for any contingency to cover increased costs for
which adjustment is provided under this clause.

\(c\) The wage determination, issued under the Service Contract Act of
1965, as

amended, (41 U.S.C. 351, et seq.), by the Administrator, Wage and Hour
Division, Employment Standards Administration, U.S. Department of Labor,
current on the anniversary date of a multiple year contract or the
beginning of each renewal option period, shall apply to this contract.
If no such determination has been made applicable to this contract, then
the Federal minimum wage as established by section 6(a)(1) of the Fair
Labor Standards Act of 1938, as amended, (29 U.S.C. 206) current on the
anniversary date of a multiple year contract or the beginning of each
renewal option period, shall apply to this contract.

\(d\) The contract price or contract unit price labor rates will be
adjusted to reflect the Contractor\'s actual increase or decrease in
applicable wages and fringe benefits to the extent that the increase is
made to comply with or the decrease is voluntarily made by the
Contractor as a result of:

\(1\) The Department of Labor wage determination applicable on the
anniversary date of the multiple year contract, or at the beginning of
the renewal option period. For example, the prior year wage
determination required a minimum wage rate of \$4.00 per hour. The
Contractor chose to pay \$4.10. The new wage determination increases the
minimum rate to \$4.50 per hour. Even if the Contractor voluntarily
increases the rate to \$4.75 per hour, the allowable price adjustment is
\$.40 per hour;

\(2\) An increased or decreased wage determination otherwise applied to
the contract by operation of law; or

\(3\) An amendment to the Fair Labor Standards Act of l938 that is
enacted after award of this contract, affects the minimum wage, and
becomes applicable to this contract under law.

\(e\) Any adjustment will be limited to increases or decreases in wages
and fringe benefits as described in paragraph (c) of this clause, and
the accompanying increases or decreases in social security and
unemployment taxes and workers\' compensation insurance, but shall not
otherwise include any amount for general and administrative costs,
overhead, or profit.

\(f\) The Contractor shall notify the Contracting Officer of any
increase claimed under this clause within 30 days after receiving a new
wage determination unless this notification period is extended in
writing by the Contracting Officer. The Contractor shall promptly notify
the Contracting Officer of any decrease under this clause, but nothing
in the clause shall preclude the Government from asserting a claim
within the period permitted by law. The notice shall contain a statement
of the amount claimed and any relevant supporting data, including
payroll records, that the Contracting Officer may reasonably require.
Upon agreement of the parties, the contract price or contract unit price
labor rates shall be modified in writing. The Contractor shall continue
performance pending agreement on or determination of any such adjustment
and its effective date.

\(g\) The Contracting Officer or an authorized representative shall have
access to and the right to examine any directly pertinent books,
documents, papers and records of the Contractor until the expiration of
3 years after final payment under the contract.

*(End of clause)*

3.6.2-31 Fair Labor Standards Act and Service Contract Act-Price
Adjustment.

FAIR LABOR STANDARDS ACT AND SERVICE CONTRACT ACT-PRICE ADJUSTMENT
(APRIL 1996)

\(a\) This clause applies to both contracts subject to area prevailing
wage determinations and contracts subject to Contractor collective
bargaining agreements.

\(b\) The Contractor warrants that the prices in this contract do not
include any allowance for any contingency to cover increased costs for
which adjustment is provided under this clause.

\(c\) The contract price or contract unit price labor rates will be
adjusted to reflect increases or decreases by the Contractor in wages
and fringe benefits to the extent that these increases or decreases are
made to comply with-

\(1\) An increased or decreased wage determination applied to this
contract by operation of law; or

\(2\) An amendment to the Fair Labor Standards Act of 1938 that is
enacted subsequent to award of this contract, affects the minimum wage,
and becomes applicable to this contract under law.

\(d\) Any such adjustment will be limited to increases or decreases in
wages and fringe benefits as described in paragraph (b) of this clause,
and to the accompanying increases or decreases in social security and
unemployment taxes and workers\' compensation insurance; it shall not
otherwise include any amount for general and administrative costs,
overhead, or profit.

\(e\) The Contractor shall notify the Contracting Officer of any
increase claimed under this clause within 30 days after the effective
date of the wage change, unless this period is extended by the
Contracting Officer in writing. The Contractor shall promptly notify the
Contracting Officer of any decrease under this clause, but nothing in
the clause shall preclude the Government from asserting a claim within
the period permitted by law. The notice shall contain a statement of the
amount claimed and any relevant supporting data that the Contracting
Officer may reasonably require. Upon agreement of the parties, the
contract price or contract unit price labor rates shall be modified in
writing. The Contractor shall continue performance pending agreement on
or determination of any such adjustment and its effective date.

\(f\) The Contracting Officer or an authorized representative shall,
until the expiration of 3 years after final payment under the contract,
have access to and the right to examine any directly pertinent books,
documents, papers, and records of the Contractor.

*(End of clause)*

3.6.2-32 SCA Minimum Wages and Fringe Benefits (Applicable to Successor
Contract Pursuant to Predecessor Contractor Collective Bargaining
Agreements (CBA))

SERVICE CONTRACT ACT (SCA) MINIMUM WAGES AND FRINGE BENEFITS
(APRIL 1996)

An SCA wage determination applicable to this work has been requested
from the U.S. Department of Labor. If an SCA wage determination is not
incorporated herein, the offerors shall consider the economic terms of
the collective bargaining agreement (CBA) between the incumbent
Contractor \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ and the
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (union). If the economic terms of the
collective bargaining agreement or the collective bargaining agreement
itself is not attached to the solicitation, copies can be obtained from
the Contracting Officer. Pursuant to Department of Labor Regulation, 29
CFR 4.1b and paragraph (g) of the clause "Service Contract Act of 1965,
As Amended," the economic terms of that agreement will apply to the
contract resulting from thisScreening Information Request (SIR),
notwithstanding the absence of a wage determination reflecting such
terms, unless it is determined that the agreement was not the result of
arm\'s length negotiations or that after a hearing pursuant to section
4(c) of the Act, the economic terms of the agreement are substantially
at variance with the wages prevailing in the area.

*(End of clause)*

3.6.2-33 Exemption from Application of Service Contract Act Provisions
(for Contracts for Maintenance, Calibration, and/or Repair of Certain
ADP, Scientific and Medical, and/or Office and Business
Equipment-Contractor Certification)

EXEMPTION FROM APPLICATION OF SERVICE CONTRACT ACT PROVISIONS
(APRIL 1996)

\(a\) The following certification shall be checked:

Certification

The offeror certifies ( )/does not certify ( ) that: (1) The items of
equipment to be serviced under this contract are commercial items which
are used regularly for other than Government purposes, and are sold or
traded by the Contractor in substantial quantities to the general public
in the course of normal business operations; (2) The contract services
are furnished at prices which are, or are based on, established catalog
or market prices for the maintenance, calibration, and/or repair of
certain ADP, scientific and medical and/or office and business
equipment. An "established catalog price" is a price (including discount
price) recorded in a catalog, price list, schedule, or other verifiable
and established record that is regularly maintained by the manufacturer
or the Contractor and is either published or otherwise available for
inspection by customers. An "established market price" is a current
price, established in the course of ordinary and usual trade between
buyers and sellers free to bargain, which can be substantiated by data
from sources independent of the manufacturer or Contractor; and (3) The
Contractor utilizes the same compensation (wage and fringe benefits)
plan for all service employees performing work under the contract as the
Contractor uses for equivalent employees servicing the same equipment of
commercial customers.

\(b\) If a negative certification is made and a Service Contract Act
wage determination is not attached to the solicitation, the Contractor
shall notify the Contracting Officer as soon as possible.

\(c\) Failure to execute the certification in paragraph (a) of this
clause or to contact the Contracting Officer as required in paragraph
(b) of this clause may render the bid or offer nonresponsive.

*(End of clause)*

3.6.2-34 Service Contract Act\--Place of Performance Unknown

SERVICE CONTRACT ACT\--PLACE OF PERFORMANCE UNKNOWN (APRIL 1996)

\(a\) This contract is subject to the Service Contract Act, and the
place of performance was unknown when the Screening Information Request
(SIR) was issued. In addition to places or areas identified in wage
determinations, if any, attached to theSIR, wage determinations have
also been requested for the following: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
(insert places or areas). The Contracting Officer will request wage
determinations for additional places or areas of performance if asked to
do so in writing by \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (insert time and
date).

\(b\) Offerors who intend to perform in a place or area of performance
for which a wage determination has not been attached or requested may
nevertheless submitoffers. However, a wage determination shall be
requested and incorporated in the resultant contract retroactive to the
date of contract award, and there shall be no adjustment in the contract
price.

*(End of clause)*