Federal Register / Vol. 62, No. 163 / Friday, August 22, 1997 / Rules and Regulations 44827

obligation under the contract to the

predecessor’s employees to fill vacancies

created by increased staffing levels or by

employee termination, either voluntarily or

for cause, continues for 3 months after

commencement of the contract. Except as

provided in paragraph (c) of this clause, the

Contractor shall not offer employment under

the contract to any person prior to having

complied fully with this obligation.

(c) Notwithstanding the Contractor’s

obligation under paragraph (b) of this clause,

the Contractor (1) may employ on the

contract any employee who has worked for

the Contractor for at least 3 months

immediately preceding the commencement

of this contract and who would otherwise

face layoff or discharge, (2) is not required to

offer a right of first refusal to any employee(s)

of the predecessor contractor who are not

service employees, and (3) is not required to

offer a right of first refusal to any employee(s)

of the predecessor contractor who the

Contractor reasonably believes, based on the

particular employee’s past performance, has

failed to perform suitably on the job.

Examples of permissible sources for this

determination include evidence of

disciplinary action based on poor

performance or evidence from the contracting

agency that the particular employee did not

perform suitably. Offers of employment are

governed by the following:

(i) The offer shall state the time within

which the employee must accept such offer,

but in no case shall the period for acceptance

be less than 10 days.

(ii) The offer may be made by separate

written notice to each employee, or orally at

a meeting attended by a group of the

predecessor contractor’s employees.

(iii) An offer need not be to a position

similar to that which the employee

previously held, but the employee must be

qualified for the position.

(iv) An offer to a position providing lower

pay or benefits than the employee held with

the predecessor contractor will be considered

bona fide if the Contractor shows valid

business reasons.

(v) To ensure that an offer is effectively

communicated, the Contractor should take

reasonable efforts to make the offer in a

language that each worker understands; for

example, by having a co-worker or other

person fluent in the worker’s language at the

meeting to translate or otherwise assist an

employee who is not fluent in English.

(d) For a period of 1 year, the Contractor

shall maintain copies of any written offers of

employment or a contemporaneous written

record of any oral offers of employment,

including the date, location, and attendance

roster of any employee meeting(s) at which

the offers were extended, a summary of each

meeting, a copy of any written notice that

may have been distributed, and the names of

the predecessor’s employees to whom an

offer was made. Copies of such

documentation shall be provided upon

request to any authorized representative of

the contracting agency or the Department of

Labor.

(e) The Contractor shall, no less than 60

days before completion of this contract,

furnish the Contracting Officer with a

certified list of the names of all service

employees engaged in the performance of

building services, working for the Contractor

at the Federal facility at the time the list is

submitted. The list also shall contain

anniversary dates of employment on the

contract either with the current or

predecessor contractors of each service

employee, as appropriate. The Contracting

Officer will provide the list to the successor

contractor, and the list shall be provided

upon request to employees or their

representatives. Submission of this list will

satisfy the requirements of paragraph (n) of

the clause at 52.222–41, Service Contract Act

of 1965, as Amended.

(f) The requirements of this clause do not

apply to services where a majority of the

Contractor’s employees performing the

particular services under the contract work at

the public building and at other locations

under contracts not subject to Executive

Order 12933, provided that the employees are

not deployed in a manner that is designed to

avoid the purposes of the Executive Order.

(g) If it is determined, pursuant to

regulations issued by the Secretary of Labor,

that the Contractor is not in compliance with

the requirements of this clause or any

regulation or order of the Secretary,

appropriate sanctions may be imposed and

remedies invoked against the Contractor, as

provided in Executive Order 12933, the

regulations of the Secretary of Labor at 29

CFR part 9, and relevant orders of the

Secretary of Labor, or as otherwise provided

by law.

(h) The Contractor is advised that the

Contracting Officer shall withhold or cause to

be withheld from the Contractor, under this

or any other Government contract with the

Contractor, such sums as an authorized

official of the Department of Labor requests,

upon a determination by the Administrator of

the Wage and Hour Division, the

Administrative Law Judge, or the

Administrative Review Board, that the

Contractor failed to comply with the terms of

this clause, and that wages lost as a result of

the violations are due to employees or that

other monetary relief is appropriate.

(i) The Contractor shall cooperate in any

investigation by the contracting agency or the

Department of Labor into possible violations

of the provisions of this clause and shall

make records requested by such official(s)

available for inspection, copying, or

transcription upon request.

(j) Disputes concerning the requirements of

this clause shall not be subject to the general

disputes clause of this contract. Such

disputes shall be resolved in accordance with

applicable law and the procedures of the

Department of Labor set forth in 29 CFR part

9. Disputes concerning the requirements of

this clause include disputes between or

among any of the following: The Contractor,

the contracting agency, the U.S. Department

of Labor, and the employees under the

contract or its predecessor contract.

(End of clause)

[FR Doc. 97–21497 Filed 8–21–97; 8:45 am]

BILLING CODE 6820–EP–P

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Part 25

[FAC 97–01; FAR Case 97–019; Item XIII]

RIN 9000–AH68

Federal Acquisition Regulation;

Designation of Hong Kong

AGENCIES: Department of Defense (DoD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council have

agreed on a final rule amending the

Federal Acquisition Regulation (FAR) to

add Hong Kong as a designated country

under the Trade Agreements Act of

1979, as directed by the United States

Trade Representative. This regulatory

action was not subject to Office of

Management and Budget review under

Executive Order 12866, dated

September 30, 1993, and is not a major

rule under 5 U.S.C. 804.

DATE: Effective August 22, 1997.

FOR FURTHER INFORMATION CONTACT: The

FAR Secretariat, Room 4035, GS

Building, Washington, DC 20405, (202)

501–4755 for information pertaining to

status or publication schedules. For

clarification of content, contact Mr. Paul

Linfield, Procurement Analyst, at (202)

501–1757. Please cite FAC 97–01, FAR

case 97–019.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule amends FAR 25.401 to

add Hong Kong as a designated country

under the Trade Agreements Act of

1979, as directed by the United States

Trade Representative. The accession of

Hong Kong to the World Trade

Organization Agreement on Government

Procurement became effective on June

19, 1997.

B. Regulatory Flexibility Act

This final rule does not constitute a

significant FAR revision within the

meaning of FAR 1.501 and Public Law

98–577, and publication for public

comment is not required. Therefore, the

Regulatory Flexibility Act does not

apply. However, comments from small

entities concerning the affected FAR

subpart will be considered in
44828 Federal Register / Vol. 62, No. 163 / Friday, August 22, 1997 / Rules and Regulations

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

comments must be submitted separately

and cite 5 U.S.C. 601, et seq. (FAC 97–

01, FAR case 97–019), in

correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the changes to the

FAR do not impose recordkeeping or

information collection requirements, or

collections of information from offerors,

contractors, or members of the public

which require the approval of the Office

of Management and Budget under 44

U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 25

Government procurement.

Dated: August 7, 1997.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, 48 CFR Part 25 is amended

as set forth below:

PART 25—FOREIGN ACQUISITION

1. The authority citation for 48 CFR

Part 25 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C.

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

25.401 [Amended]

2. Section 25.401 is amended in the

definition of ‘‘Designated country’’ by

adding, in alphabetical order, ‘‘Hong

Kong’’.

[FR Doc. 97–21498 Filed 8–21–97; 8:45 am]

BILLING CODE 6820–EP–P

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Part 31

[FAC 97–01; FAR Case 96–012; Item XIV]

RIN 9000–AH43

Federal Acquisition Regulation;

Foreign Differential Pay

AGENCIES: Department of Defense (DoD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Interim rule adopted as final.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council have

agreed to convert the interim rule

published as Item VI of Federal

Acquisition Circular 90–44 on

December 31, 1996, to a final rule

without change. The rule amends the

Federal Acquisition Regulation (FAR) to

remove the prohibition on the

calculation of foreign differential pay

based directly on an employee’s specific

increase in income taxes resulting from

assignment overseas. This regulatory

action was not subject to Office of

Management and Budget review under

Executive Order 12866, dated

September 30, 1993. This is not a major

rule under 5 U.S.C. 804.

DATE: Effective October 21, 1997.

FOR FURTHER INFORMATION CONTACT: The

FAR Secretariat, Room 4035, GS

Building, Washington, DC 20405 (202)

501–4755 for information pertaining to

status or publication schedules. For

clarification of content, contact Mr.

Jeremy Olson, Procurement Analyst, at

(202) 501–3221. Please cite FAC 97–01,

FAR case 96–012.

SUPPLEMENTARY INFORMATION:

A. Background

An interim rule was published on

December 31, 1996 (61 FR 69294). The

interim rule revised the cost principle at

FAR 31.205–6, Compensation for

personal services, to permit contractors

to calculate any increased compensation

for foreign overseas differential pay on

the basis of an employee’s specific

increase in taxes resulting from foreign

assignment. The interim rule is

converted to a final rule with no change.

Public comments were received from

one source. The comments were

considered in developing the final rule.

B. Regulatory Flexibility Act

The Department of Defense, the

General Services Administration, and

the National Aeronautics and Space

Administration certify that this final

rule will not 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 most

contracts awarded to small entities use

simplified acquisition procedures or are

awarded on a competitive fixed-price

basis and do not require application of

the cost principle contained in this rule.

C. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the changes to the

FAR do not impose recordkeeping or

information collection requirements, or

collections of information from offerors,

contractors, or members of the public

which require the approval of the Office

of Management and Budget under 44

U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 31

Government procurement.

Interim Rule Adopted as Final Without

Change

Accordingly, the interim rule

amending 48 CFR Part 31 which was

published at 61 FR 69294, December 31,

1996, is adopted as a final rule without

change.

Authority: 40 U.S.C. 486(c); 10 U.S.C.

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

Dated: August 7, 1997.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

[FR Doc. 97–21499 Filed 8–21–97; 8:45 am]

BILLING CODE 6820–EP–P

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Part 31

[FAC 97–01; FAR Case 96–003; Item XV]

RIN 9000–AH35

Federal Acquisition Regulation; Local

Government Lobbying Costs

AGENCIES: Department of Defense (DoD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Interim rule adopted as final.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council have

agreed to convert the interim rule

published as Item XI of Federal

Acquisition Circular 90–43 on

December 20, 1996, to a final rule

without change. The rule amends the

Federal Acquisition Regulation (FAR) to

make allowable the costs of any

lobbying activities to influence local

legislation in order to directly reduce

contract cost, or to avoid material

impairment of the contractor’s authority

to perform the contract. This regulatory

action was not subject to Office of

Management and Budget review under

Executive Order 12866, dated

September 30, 1993, and is not a major

rule under 5 U.S.C. 804.

DATES: Effective October 21, 1997.

FOR FURTHER INFORMATION CONTACT: The

FAR Secretariat, Room 4035, GS

Building, Washington, DC 20405 (202)

501–4755 for information pertaining to

status or publication schedules. For

clarification of content, contact Ms.