Federal Register / Vol. 75, No. 238 / Monday, December 13, 2010 / Rules and Regulations 77723 

other HUBZone small business 

concerns. This final rule amends FAR 

clause 52.219–3, Notice of Total 

HUBZone Set-Aside, and FAR clause 

52.219–4, Notice of Price Evaluation 

Preference for HUBZone Small Business 

Concerns, to include an Alternate I, to 

be used to waive the 50 percent 

requirement only after determining that 

at least two HUBZone small business 

concerns cannot meet the requirement. 

However, the HUBZone small business 

prime contractor must still meet the 

performance of work requirements set 

forth in 13 CFR 125.6(c). 

Item III—Preventing Abuse of 

Interagency Contracts (FAR Case 2008– 

032) (Interim) 

This interim rule implements section 

865 of the Duncan Hunter National 

Defense Authorization Act (NDAA) for 

Fiscal Year 2009. FAR subpart 17.5 now 

addresses all interagency acquisitions, 

not just those made under the Economy 

Act authority. A new subsection 

17.502–1 is added to require that all 

interagency acquisitions include a 

determination of best procurement 

approach. For an assisted acquisition 

between the servicing agency and the 

requesting agency, this subsection now 

requires a written agreement that 

establishes the general terms and 

conditions governing the relationship 

between the parties. Subsection 17.502– 

2 contains business-case analysis 

requirements when an agency wishes to 

establish a contract that would be used 

by other agencies. There is a statutory 

exception included in subpart 17.5 for 

orders of $500,000 or less issued against 

Federal Supply Schedules. 

Item IV—Small Disadvantaged 

Business Program Self-Certification of 

Subcontractors (FAR Case 2009–019) 

(Interim) 

This interim rule amends the FAR by 

allowing small disadvantaged 

businesses (SDBs) to self-represent their 

SDB status to prime contractors in good 

faith when seeking Federal 

subcontracting opportunities. This 

change implements revisions made by 

the Small Business Administration 

(SBA) to its SDB regulations. This case 

only addresses the subcontracting status 

portion of the SBA final rule for Small 

Disadvantaged Business certification. 

The Small Disadvantaged Business 

certification for prime contracts will be 

addressed in a future rule. This change 

removes a cost of compliance burden on 

SDB subcontractors seeking SBA 

certification. 

Item V—Uniform Suspension and 

Debarment Requirement (FAR Case 

2009–036) (Interim) 

This interim rule amends the FAR at 

parts 9 and 52 to implement section 815 

of the National Defense Authorization 

Act for Fiscal Year 2010, Public Law 

111–84. The law requires that 

suspension and debarment requirements 

flow down to all subcontracts except 

contracts for the acquisition of 

commercially available off-the-shelf 

items, and in the case of contracts for 

the acquisition of commercial items, 

first-tier subcontracts only. 

This requirement will protect the 

Government against contracting with 

entities at any tier who are suspended, 

debarred or proposed for debarment. 

This rule does not have a significant 

impact on the Government, contractors 

or any automated systems. 

Item VI—Limitations on Pass-Through 

Charges (FAR Case 2008–031) 

This final rule adopts the interim rule 

published in the Federal Register at 74 

FR 52853, October 14, 2009, as a final 

rule with minor changes. 

The interim rule amended the FAR to 

implement section 866 of the Duncan 

Hunter National Defense Authorization 

Act (NDAA) for Fiscal Year 2009 (Pub. 

L. 110–417) and section 852 of the John 

Warner NDAA for Fiscal Year 2007 

(Pub. L. 109–364). This legislation 

required the Councils to amend the FAR 

to minimize excessive pass-through 

charges by contractors from 

subcontractors, or from tiers of 

subcontractors, that add no or negligible 

value, and to ensure that neither a 

contractor nor a subcontractor receives 

indirect costs or profit/fee (i.e., passthrough charges) on work performed by 

a lower-tier subcontractor to which the 

higher-tier contractor or subcontractor 

adds no, or negligible, value. 

To enable agencies to ensure that 

pass-through charges are not excessive, 

the interim rule included a solicitation 

provision and a contract clause 

requiring offerors and contractors to 

identify the percentage of work that will 

be subcontracted, and when subcontract 

costs will exceed 70 percent of the total 

cost of work to be performed, to provide 

information on indirect costs and profit/ 

fee and value added with regard to the 

subcontract work. 

Item VII—Technical Amendments 

Editorial changes are made at FAR 

3.104–1, 5.601, 7.105, and 10.002. 

Dated: November 24, 2010. 

Millisa Gary, 

Acting Director, Acquisition Policy Division. 

Dated: November 23, 2010. 

Shay D. Assad, 

Director, Defense Procurement and 

Acquisition Policy. 

Dated: November 24, 2010. 

Joseph A. Neurauter, 

Deputy Associate Administrator and Senior 

Procurement Executive, Office of Acquisition 

Policy, U.S. General Services Administration. 

Dated: November 23, 2010. 

William P. McNally, 

Assistant Administrator for Procurement, 

National Aeronautics and Space 

Administration. 

[FR Doc. 2010–30558 Filed 12–10–10; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 1, 2, 22, and 52 

[FAC 2005–47; FAR Case 2010–006; Item 

I; Docket 2010–0106, Sequence 1] 

RIN 9000–AL76 

Federal Acquisition Regulation; 

Notification of Employee Rights Under 

the National Labor Relations Act 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Interim rule with request for 

comments. 

SUMMARY: The Civilian Agency 

Acquisition Council and the Defense 

Acquisition Regulations Council 

(Councils) are issuing an interim rule to 

amend the Federal Acquisition 

Regulation (FAR) to implement 

Executive Order 13496, Notification of 

Employee Rights Under Federal Labor 

Laws, as implemented by the 

Department of Labor (DoL). This 

Executive Order requires contractors to 

display a notice to employees of their 

rights under Federal labor laws, and the 

DoL has determined that the notice shall 

include employee rights under the 

National Labor Relations Act. 

DATES: Effective Date: December 13, 

2010. 

Comment Date: Interested parties 

should submit written comments to the 

Regulatory Secretariat on or before 

February 11, 2011 to be considered in 

the formulation of a final rule. 

mstockstill on DSKH9S0YB1PROD with RULES3

77724 Federal Register / Vol. 75, No. 238 / Monday, December 13, 2010 / Rules and Regulations 

ADDRESSES: Submit comments 

identified by FAC 2005–47, FAR Case 

2010–006, by any of the following 

methods: 

• Regulations.gov: http:// 

www.regulations.gov. Submit comments 

via the Federal eRulemaking portal by 

inputting ‘‘FAR Case 2010–006’’ under 

the heading ‘‘Enter Keyword or ID’’ and 

selecting ‘‘Search.’’ Select the link 

‘‘Submit a Comment’’ that corresponds 

with ‘‘FAR Case 2010–006.’’ Follow the 

instructions provided at the ‘‘Submit a 

Comment’’ screen. Please include your 

name, company name (if any), and ‘‘FAR 

Case 2010–006’’ on your attached 

document. 

• Mail: General Services 

Administration, Regulatory Secretariat 

(MVCB), ATTN: Hada Flowers, 1275 

First Street, NE., Washington, DC 20417. 

Instructions: Please submit comments 

only and cite FAC 2005–47, FAR Case 

2010–006, in all correspondence related 

to this case. All comments received will 

be posted without change to http:// 

www.regulations.gov, including any 

personal and/or business confidential 

information provided. 

FOR FURTHER INFORMATION CONTACT: For 

clarification of content, contact Ms. 

Clare McFadden, Procurement Analyst, 

at (202) 501–0044. For information 

pertaining to status or publication 

schedules, contact the Regulatory 

Secretariat at (202) 501–4755. Please 

cite FAC 2005–47, FAR Case 2010–006. 

SUPPLEMENTARY INFORMATION: 

A. Background 

Executive Order 13496, Notification 

of Employee Rights Under Federal Labor 

Laws, dated January 30, 2009 (published 

in the Federal Register at 74 FR 6107 on 

February 4, 2009), which revokes 

Executive Order 13201 of February 17, 

2001, requires contractors and 

subcontractors to post a notice that 

informs employees of their rights under 

Federal labor laws. DoL has determined 

that the notice shall include employee 

rights under the National Labor 

Relations Act (‘‘Act’’), 29 U.S.C. 151 et 

seq. This Act encourages collective 

bargaining, and protects the exercise by 

employees of their freedom to associate, 

to self organize and to designate 

representatives of their own choosing 

for the purpose of negotiating the terms 

and conditions of their employment. 

The DoL rule provides sanctions for 

noncompliance, but full compliance 

with the Executive Order and any 

related rules, regulations and orders of 

the Secretary of Labor is expected of all 

contractors. The DoL issued a final rule 

implementing Executive Order 13496 at 

29 CFR part 471, published in the 

Federal Register at 75 FR 28368 on May 

20, 2010, with an effective date of June 

21, 2010. 

This FAR interim rule implements the 

requirements of the DoL final rule by 

creating a new FAR subpart 22.16 and 

clause 52.222–40, Notification of 

Employee Rights Under the National 

Labor Relations Act. Additionally, this 

rule revises FAR clauses at 52.212–5, 

Contract Terms and Conditions 

Required to Implement Statutes or 

Executive Orders—Commercial Items, 

and FAR 52.244–6, Subcontracts for 

Commercial Items, to include the 

requirements of the new FAR clause 

52.222–40. 

This rule amending the FAR is the 

formal notice to contracting officers to 

insert FAR clause 52.222–40 in all 

solicitations and contracts including 

acquisitions for commercial items and 

commercially available off-the-shelf 

(COTS), except acquisitions (see FAR 

22.1605)— 

(1) Under the simplified acquisition 

threshold; 

(2) For work performed exclusively 

outside the United States; or 

(3) Covered in their entirety by an 

exemption granted by the Secretary of 

Labor. 

This is a significant regulatory action 

and, therefore, was subject to review 

under Section 6(b) of Executive Order 

12866, Regulatory Planning and Review, 

dated September 30, 1993. This rule is 

not a major rule under 5 U.S.C. 804. 

B. Regulatory Flexibility Act 

The Councils do not expect this 

interim rule to have a significant 

economic impact on a substantial 

number of small entities within the 

meaning of the Regulatory Flexibility 

Act, 5 U.S.C. 601, et seq., because it 

implements the requirements of DoL’s 

final rule, published in the Federal 

Register on May 20, 2010, with an 

effective date of June 21, 2010, that 

implemented Executive Order 13496 at 

29 CFR part 471. The DoL final rule, 

implementing the requirements of 

Executive Order 13496, requires 

contractors to post notices and to insert 

a clause in subcontracts requiring 

subcontractors to post the notice and 

similarly insert a clause in their 

subcontracts. The notice advises 

contractor and subcontractor employees 

of their rights under the National Labor 

Relations Act. The rule provides 

sanctions for noncompliance, but full 

compliance with the Executive Order 

and any related rules, regulations and 

orders of the Secretary of Labor is 

expected of all contractors. Further, this 

rule is only implementing the DoL rule 

which prescribes the content of the 

notices to be posted. The Department of 

Labor has certified that its rule will not 

have a significant economic impact on 

a substantial number of small entities. 

Therefore, an Initial Regulatory 

Flexibility Analysis has not been 

performed. The Councils invite 

comments from small business concerns 

and other interested parties on the 

expected impact of this rule on small 

entities. 

The Councils will also consider 

comments from small entities 

concerning the existing regulations in 

subparts affected by this rule in 

accordance with 5 U.S.C. 610. Interested 

parties must submit such comments 

separately and should cite 5 U.S.C. 610 

(FAC 2005–47, FAR Case 2010–006) in 

all correspondence. 

C. Paperwork Reduction Act 

This interim rule does not impose any 

information collection requirements 

apart from those already imposed by the 

DoL rule (75 FR 28368, May 20, 2010, 

effective date June 21, 2010). DoL has 

addressed the Paperwork Reduction Act 

(44 U.S.C. chapter 35) in the preamble 

to the final rule. DoL identified the 

burdens associated with the filing and 

processing of complaints by 

complainants and contractors in the 

notice of final rulemaking and obtained 

Office of Management and Budget 

clearance for such burdens. DoL also 

noted that the public disclosure of 

information originally supplied by the 

Federal Government to a recipient for 

the purpose of disclosure to the public 

is not considered a collection of 

information under the Act. The 

Councils believe that the package 

submitted by DoL meets the 

requirement imposed by the Paperwork 

Reduction Act and sufficiently covers 

this interim rule so that no further 

action is necessary. 

D. Determination To Issue an Interim 

Rule 

A determination has been made under 

the authority of the Secretary of 

Defense, the Administrator of General 

Services, and the Administrator of the 

National Aeronautics and Space 

Administration that urgent and 

compelling reasons exist to promulgate 

this interim rule without prior 

opportunity for public comment. This 

action is necessary to implement 

Executive Order 13496 and the DoL rule 

at 29 CFR part 471, effective June 21, 

2010. If this rule is not issued as an 

interim rule, contractors will not have 

the contractual requirement to display 

the notice to employees of their rights 

under Federal labor laws, as is required 

by DoL regulations on or after June 21, 

mstockstill on DSKH9S0YB1PROD with RULES3

Federal Register / Vol. 75, No. 238 / Monday, December 13, 2010 / Rules and Regulations 77725 

2010. In addition, the regulated 

community was provided ample 

opportunity to comment on DoL’s 

promulgation of that regulation, which 

prescribes the content of the employee 

notice, requirements for its posting, and 

enforcement procedures, and DoL 

received and considered numerous such 

comments in drafting the final rule. 

However, pursuant to 41 U.S.C. 418b 

and FAR 1.501–3, the Councils will 

consider public comments received in 

response to this interim rule in the 

formation of the final rule. 

List of Subjects in 48 CFR Parts 1, 2, 22, 

and 52 

Government procurement. 

Dated: November 24, 2010. 

Millisa Gary, 

Acting Director, Acquisition Policy Division. 

■ Therefore, DoD, GSA, and NASA 

amend 48 CFR parts 1, 2, 22, and 52 as 

set forth below: 

■ 1. The authority citation for 48 CFR 

parts 1, 2, 22, and 52 continues to read 

as follows: 

Authority: 40 U.S.C. 121(c); 10 U.S.C. 

chapter 137; and 42 U.S.C. 2473(c). 

PART 1—FEDERAL ACQUISITION 

REGULATIONS SYSTEM 

1.106 [Amended] 

■ 2. Amend section 1.106, in the table 

following the introductory text, by 

adding in numerical sequence, FAR 

segment ‘‘22.16’’ and its corresponding 

OMB Control Number ‘‘1215–0209’’, and 

FAR segment ‘‘52.222–40’’ and its 

corresponding OMB Control Number 

‘‘1215–0209’’. 

PART 2—DEFINITIONS OF WORDS 

AND TERMS 

■ 3. Amend section 2.101 in paragraph 

(b)(2), in the definition ‘‘United States’’ 

by redesignating paragraphs (5) through 

(8) as paragraphs (6) through (9), 

respectively, and adding a new 

paragraph (5) to read as follows: 

2.101 Definitions. 

* * * * * 

United States * * * 

(5) For use in subpart 22.16, see the 

definition at 22.1601. 

* * * * * 

PART 22—APPLICATION OF LABOR 

LAWS TO GOVERNMENT 

ACQUISITIONS 

■ 4. Add subpart 22.16 to read as 

follows: 

Subpart 22.16—Notification of Employee 

Rights Under the National Labor Relations 

Act 

Sec. 

22.1600 Scope of subpart. 

22.1601 Definitions. 

22.1602 Policy. 

22.1603 Exceptions. 

22.1604 Compliance evaluation and 

complaint investigations and sanctions 

for violations. 

22.1605 Contract clause. 

Subpart 22.16—Notification of 

Employee Rights Under the National 

Labor Relations Act 

22.1600 Scope of subpart. 

This subpart prescribes policies and 

procedures to implement Executive 

Order 13496, dated January 30, 2009 (74 

FR 6107, February 4, 2009). 

22.1601 Definitions. 

As used in this subpart— 

Secretary means the Secretary of 

Labor, U.S. Department of Labor. 

United States means the 50 States, the 

District of Columbia, Puerto Rico, the 

Commonwealth of the Northern Mariana 

Islands, American Samoa, Guam, the 

U.S. Virgin Islands, and Wake Island. 

22.1602 Policy. 

(a) Executive Order 13496 requires 

contractors to post a notice informing 

employees of their rights under Federal 

labor laws. 

(b) The Secretary has determined that 

the notice must contain employee rights 

under the National Labor Relations Act 

(Act), 29 U.S.C. 151 et seq. The Act 

encourages collective bargaining, and 

protects the exercise by employees of 

their freedom to associate, to selforganize, and to designate 

representatives of their own choosing 

for the purpose of negotiating the terms 

and conditions of their employment or 

other mutual aid or protection. 

22.1603 Exceptions. 

(a) The requirements of this subpart 

do not apply to— 

(1) Contracts under the simplified 

acquisition threshold; 

(2) Subcontracts of $10,000 or less; 

and 

(3) Contracts or subcontracts for work 

performed exclusively outside the 

United States. 

(b) Exemptions granted by the 

Secretary. (1) If the Secretary finds that 

the requirements of the Executive Order 

impair the ability of the Government to 

procure goods and services on an 

economical and efficient basis or if 

special circumstances require an 

exemption in order to serve the national 

interest, the Secretary may exempt a 

contracting department or agency, or 

groups of departments or agencies, from 

the requirements of any or all of the 

provisions of this Executive Order with 

respect to a particular contract or 

subcontract, or any class of contracts or 

subcontracts, including the requirement 

to include the clause at 52.222–40, or 

parts of that clause, in contracts. 

(2) Requests for exemptions may be 

submitted in accordance with 

Department of Labor regulations at 29 

CFR 471.3. 

22.1604 Compliance evaluation and 

complaint investigations and sanctions for 

violations. 

(a) The Secretary may conduct 

compliance evaluations or investigate 

complaints of any contractor or 

subcontractor to determine if any of the 

requirements of the clause at 52.222–40 

have been violated. 

(b) Contracting departments and 

agencies shall cooperate with the 

Secretary and provide such information 

and assistance as the Secretary may 

require in the performance of the 

Secretary’s functions. 

(c) If the Secretary determines that 

there has been a violation, the Secretary 

may take such actions as set forth in 29 

CFR 471.14. 

(d) The Secretary may not terminate 

or suspend a contract or suspend or 

debar a contractor if the agency head 

has provided written objections, which 

must include a statement of reasons for 

the objection and a finding that the 

contractor’s performance is essential to 

the agency’s mission, and continues to 

object to the imposition of such 

sanctions and penalties. Procedures for 

enforcement by the Secretary are set out 

in 29 CFR 471.10 through 29 CFR 

471.16. 

22.1605 Contract clause. 

(a) Insert the clause at 52.222–40, 

Notification of Employee Rights under 

the National Labor Relations Act, in all 

solicitations and contracts, including 

acquisitions for commercial items and 

commercially available off-the-shelf 

items, except acquisitions— 

(1) Under the simplified acquisition 

threshold. For indefinite-quantity 

contracts, include the clause only if the 

value of orders in any calendar year of 

the contract is expected to exceed the 

simplified acquisition threshold; 

(2) For work performed exclusively 

outside the United States; or 

(3) Covered (in their entirety) by an 

exemption granted by the Secretary. 

(b) A contracting agency may modify 

the clause at 52.222–40, if necessary, to 

reflect an exemption granted by the 

Secretary (see 22.1603(b)). 

mstockstill on DSKH9S0YB1PROD with RULES3

77726 Federal Register / Vol. 75, No. 238 / Monday, December 13, 2010 / Rules and Regulations 

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES 

■ 5. Amend section 52.212–5 by— 

■ a. Revising the date of the clause; 

■ b. Redesignating paragraphs (b)(27) 

through (b)(44) as paragraphs (b)(28) 

through (b)(45), respectively; and 

adding a new paragraph (b)(27); 

■ c. Adding paragraph (e)(1)(vii); and 

■ d. In Alternate II by— 

■ (1) Revising the date of Alternate II; 

■ (2) Redesignating paragraphs 

(e)(1)(ii)(G) through (M) as paragraphs 

(e)(1)(ii)(H) through (N), respectively; 

and adding a new paragraph 

(e)(1)(ii)(G). 

The revised and added text reads as 

follows: 

52.212–5 Contract Terms and Conditions 

Required To Implement Statutes or 

Executive Orders—Commercial Items. 

* * * * * 

Contract Terms and Conditions 

Required to Implement Statutes or 

Executive Orders—Commercial Items 

(DEC 2010) 

* * * * * 

(b) * * * 

(27) 52.222–40, Notification of Employee 

Rights Under the National Labor Relations 

Act (DEC 2010) (E.O. 13496). 

* * * * * 

(e)(1) * * * 

(vii) 52.222–40, Notification of Employee 

Rights Under the National Labor Relations 

Act (DEC 2010) (E.O. 13496). Flow down 

required in accordance with paragraph (f) of 

FAR clause 52.222–40. 

* * * * * 

Alternate II (DEC 2010). 

* * * * * 

(e)(1) * * * 

(ii) * * * 

(G) 52.222–40, Notification of Employee 

Rights Under the National Labor Relations 

Act (DEC 2010) (E.O. 13496). Flow down 

required in accordance with paragraph (f) of 

FAR clause 52.222–40. 

* * * * * 

■ 6. Amend section 52.213–4 by 

revising the date of the clause; and 

removing from paragraph (a)(2)(vii) 

‘‘(Oct 2010)’’ and adding ‘‘(DEC 2010)’’ in 

its place. 

The revision reads as follows: 

52.213–4 Terms and Conditions— 

Simplified Acquisitions (Other Than 

Commercial Items). 

* * * * * 

Terms and Conditions—Simplified 

Acquisitions (Other Than Commercial 

Items) (DEC 2010) 

* * * * * 

■ 7. Add section 52.222–40 to read as 

follows: 

52.222–40 Notification of Employee Rights 

Under the National Labor Relations Act. 

As prescribed in 22.1605, insert the 

following clause: 

Notification of Employee Rights Under 

the National Labor Relations Act (DEC 

2010) 

(a) During the term of this contract, the 

Contractor shall post an employee notice, of 

such size and in such form, and containing 

such content as prescribed by the Secretary 

of Labor, in conspicuous places in and about 

its plants and offices where employees 

covered by the National Labor Relations Act 

engage in activities relating to the 

performance of the contract, including all 

places where notices to employees are 

customarily posted both physically and 

electronically, in the languages employees 

speak, in accordance with 29 CFR 471.2(d) 

and (f). 

(1) Physical posting of the employee notice 

shall be in conspicuous places in and about 

the Contractor’s plants and offices so that the 

notice is prominent and readily seen by 

employees who are covered by the National 

Labor Relations Act and engage in activities 

related to the performance of the contract. 

(2) If the Contractor customarily posts 

notices to employees electronically, then the 

Contractor shall also post the required notice 

electronically by displaying prominently, on 

any Web site that is maintained by the 

Contractor and is customarily used for 

notices to employees about terms and 

conditions of employment, a link to the 

Department of Labor’s Web site that contains 

the full text of the poster. The link to the 

Department’s Web site, as referenced in (b)(3) 

of this section, must read, ‘‘Important Notice 

about Employee Rights to Organize and 

Bargain Collectively with Their Employers.’’ 

(b) This required employee notice, printed 

by the Department of Labor, may be— 

(1) Obtained from the Division of 

Interpretations and Standards, Office of 

Labor-Management Standards, U.S. 

Department of Labor, 200 Constitution 

Avenue, NW., Room N–5609, Washington, 

DC 20210, (202) 693–0123, or from any field 

office of the Office of Labor-Management 

Standards or Office of Federal Contract 

Compliance Programs; 

(2) Provided by the Federal contracting 

agency if requested; 

(3) Downloaded from the Office of LaborManagement Standards Web site at http:// 

www.dol.gov/olms/regs/compliance/ 

EO13496.htm; or 

(4) Reproduced and used as exact duplicate 

copies of the Department of Labor’s official 

poster. 

(c) The required text of the employee 

notice referred to in this clause is located at 

Appendix A, Subpart A, 29 CFR Part 471. 

(d) The Contractor shall comply with all 

provisions of the employee notice and related 

rules, regulations, and orders of the Secretary 

of Labor. 

(e) In the event that the Contractor does not 

comply with the requirements set forth in 

paragraphs (a) through (d) of this clause, this 

contract may be terminated or suspended in 

whole or in part, and the Contractor may be 

suspended or debarred in accordance with 29 

CFR 471.14 and subpart 9.4. Such other 

sanctions or remedies may be imposed as are 

provided by 29 CFR part 471, which 

implements Executive Order 13496 or as 

otherwise provided by law. 

(f) Subcontracts. (1) The Contractor shall 

include the substance of this clause, 

including this paragraph (f), in every 

subcontract that exceeds $10,000 and will be 

performed wholly or partially in the United 

States, unless exempted by the rules, 

regulations, or orders of the Secretary of 

Labor issued pursuant to section 3 of 

Executive Order 13496 of January 30, 2009, 

so that such provisions will be binding upon 

each subcontractor. 

(2) The Contractor shall not procure 

supplies or services in a way designed to 

avoid the applicability of Executive Order 

13496 or this clause. 

(3) The Contractor shall take such action 

with respect to any such subcontract as may 

be directed by the Secretary of Labor as a 

means of enforcing such provisions, 

including the imposition of sanctions for 

noncompliance. 

(4) However, if the Contractor becomes 

involved in litigation with a subcontractor, or 

is threatened with such involvement, as a 

result of such direction, the Contractor may 

request the United States, through the 

Secretary of Labor, to enter into such 

litigation to protect the interests of the 

United States. 

(End of clause) 

■ 8. Amend section 52.244–6 by 

revising the date of the clause and 

adding paragraph (c)(1)(vii) to read as 

follows: 

52.244–6 Subcontracts for Commercial 

Items. 

* * * * * 

Subcontracts for Commercial Items 

(DEC 2010) 

* * * * * 

(c)(1) * * * 

(vii) 52.222–40, Notification of Employee 

Rights Under the National Labor Relations 

Act (DEC 2010) (E.O. 13496), if flow down is 

required in accordance with paragraph (f) of 

FAR clause 52.222–40. 

* * * * * 

[FR Doc. 2010–30559 Filed 12–10–10; 8:45 am] 

BILLING CODE 6820–EP–P 

mstockstill on DSKH9S0YB1PROD with RULES3