Federal Register / Vol. 89, No. 215 / Wednesday, November 6, 2024 / Proposed Rules 87993 

Federal Decision Making Portal at 

https://www.regulations.gov. To do so, 

go to https://www.regulations.gov, type 

USCG–2023–0601 in the search box and 

click ‘‘Search.’’ Next, look for this 

document in the Search Results column, 

and click on it. Then click on the 

Comment option. If your material 

cannot be submitted using https://

www.regulations.gov, contact the person 

in the FOR FURTHER INFORMATION

CONTACT section of this document for 

alternate instructions. 

Viewing material in docket. To view 

documents mentioned in this proposed 

rule as being available in the docket, 

find the docket as described in the 

previous paragraph, and then select 

‘‘Supporting & Related Material’’ in the 

Document Type column. Public 

comments will also be placed in our 

online docket and can be viewed by 

following instructions on the https://

www.regulations.gov Frequently Asked 

Questions web page. Also, if you go to 

the online docket and sign up for email 

alerts, you will be notified when 

comments are posted or a final rule is 

published of any posting or updates to 

the docket. 

We review all comments received, but 

we will only post comments that 

address the topic of the proposed rule. 

We may choose not to post off-topic, 

inappropriate, or duplicate comments 

that we receive. 

We accept anonymous comments. 

Comments we post to https://

www.regulations.gov will include any 

personal information you have 

provided. For more about privacy and 

submissions in response to this 

document, see DHS’s eRulemaking 

System of Records notice (85 FR 14226, 

March 11, 2020). 

List of Subjects in 33 CFR Part 117 

Bridges. 

For the reasons discussed in the 

preamble, the Coast Guard proposes to 

amend 33 CFR part 117 as follows: 

PART 117—DRAWBRIDGE 

OPERATION REGULATIONS 

■ 1. The authority citation for part 117 

continues to read as follows: 

Authority: 33 U.S.C. 499; 33 CFR 1.05–1; 

DHS Delegation No. 0170.1. Revision No. 

01.3. 

■ 2. Amend § 117.261 by revising 

paragraph (u), (v), and (w)(1) to read as 

follows: 

§ 117.261 Atlantic Intracoastal Waterway 

from St. Marys River to Key Largo. 

* * * * * 

(u) Flagler Memorial (SR A1A) Bridge, 

mile 1021.8, at West Palm Beach. (1) 

The draw will open on the quarter and 

three-quarter hour, except Monday 

through Friday (except Federal 

holidays) from 7:30 a.m. to 9 a.m. and 

from 4 p.m. to 6 p.m., the draw need 

only open on the quarter hour. 

(2) When the security zone is 

enforced, the draw shall operate as 

follows: 

(i) Monday through Friday (except on 

Federal holidays). 

(A) 7:30 a.m. to 9 a.m., the draw need 

only open on the quarter hour. 

(B) 9 a.m. to 2:15 p.m., the draw need 

only open on the quarter and threequarter hour. 

(C) 2:15 p.m. to 6 p.m., the draw need 

only open on the quarter hour. 

(D) 6 p.m. to 7:30 a.m., the draw need 

only open on the quarter and threequarter hour. 

(ii) Saturday, Sunday, and Federal 

holidays the draw shall open on the 

quarter and three-quarter hour. 

(v) Royal Park (SR 704) Bridge, mile 

1022.6, at West Palm Beach. (1) The 

draw will open on the hour and half 

hour, except Monday through Friday 

(except Federal holidays) from 7:30 a.m. 

to 9 a.m. and from 4 p.m. to 6 p.m., the 

draw need only open on the half hour. 

(2) When the security zone is 

enforced, the draw shall operate as 

follows: 

(i) Monday through Friday (except on 

Federal holidays). 

(A) 7:30 a.m. to 9 a.m., the draw need 

only open on the half-hour. 

(B) 9 a.m. to 2:15 p.m., the draw need 

only open on the hour and half-hour. 

(C) 2:15 p.m. to 6 p.m., the draw need 

only open on the half-hour. 

(D) 6 p.m. to 7:30 a.m., the draw need 

only open on the hour and half-hour. 

(ii) Saturday, Sunday, and Federal 

holidays the draw shall open on the 

hour and half-hour. 

(w) Southern Boulevard (SR 80) 

Bridge, mile 1024.7, at West Palm 

Beach. (1) The draw will open on the 

quarter and three-quarter hour, except 

Monday through Friday (except Federal 

holidays) from 7:30 a.m. to 9 a.m. and 

from 4 p.m. to 6 p.m., the draw need 

only open on the quarter hour. 

* * * * * 

Dated: October 30, 2024. 

Douglas M. Schofield, 

Rear Admiral, U.S. Coast Guard Commander, 

Coast Guard Seventh District. 

[FR Doc. 2024–25660 Filed 11–5–24; 8:45 am] 

BILLING CODE 9110–04–P 

GENERAL SERVICES 

ADMINISTRATION 

48 CFR Part 570 

[GSAR Case 2021–G530; Docket No. GSA– 

GSAR 2024–0019; Sequence No. 1] 

RIN 3090–AK51 

General Services Administration 

Acquisition Regulation (GSAR); 

Construction Labor Requirements for 

Lease Acquisitions 

AGENCY: Office of Acquisition Policy, 

General Services Administration (GSA). 

ACTION: Proposed rule. 

SUMMARY: The General Services 

Administration is proposing to amend 

the General Services Administration 

Acquisition Regulation to add a new 

section that adopts the amended 

definition of the term ‘‘public building 

or public work’’ from the Department of 

Labor’s Updating the Davis-Bacon and 

Related Acts Regulations final rule and 

to include compliance with the 

minimum wage and sick leave 

Executive Orders, and other 

requirements for leasehold acquisitions 

when there is a qualifying construction 

event as defined in this rule. 

DATES: Interested parties should submit 

written comments to the Regulatory 

Secretariat Division at the address 

shown below on or before January 6, 

2025 to be considered in the formation 

of the final rule. 

ADDRESSES: Submit comments in 

response to GSAR Case 2021–G530 to: 

Regulations.gov: https://

www.regulations.gov. Submit comments 

via the Federal eRulemaking portal by 

searching for ‘‘GSAR Case 2021–G530’’. 

Select the link ‘‘Comment Now’’ that 

corresponds with GSAR Case 2021– 

G530. Follow the instructions provided 

at the ‘‘Comment Now’’ screen. Please 

include your name, company name (if 

any), and ‘‘GSAR Case 2021–G530’’ on 

your attached document. If your 

comment cannot be submitted using 

https://www.regulations.gov, call or 

email the points of contact in the FOR

FURTHER INFORMATION CONTACT section of 

this document for alternate instructions. 

Instructions: Please submit comments 

only and cite GSAR Case 2021–G530 in 

all correspondence related to this case. 

Comments received generally will be 

posted without change to https://

www.regulations.gov, including any 

personal and/or business confidential 

information provided. To confirm 

receipt of your comment(s), please 

check https://www.regulations.gov 

approximately two to three days after 

submission to verify posting. 


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87994 Federal Register / Vol. 89, No. 215 / Wednesday, November 6, 2024 / Proposed Rules 

FOR FURTHER INFORMATION CONTACT: Ms. 

Johnnie McDowell, Procurement 

Analyst, at 202–718–6112 or 

gsarpolicy@gsa.gov for clarification of 

content. For information pertaining to 

status or publication schedules, contact 

the Regulatory Secretariat Division at 

202–501–4755 or GSARegSec@gsa.gov. 

Please cite GSAR Case 2020–G530. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Federal Government is the largest 

single lessee of space in the United 

States. General Services Administration 

(GSA), as one of the nation’s largest 

public real estate organizations, 

provides workspace for over one million 

Federal workers located in space owned 

by the Federal government and in leased 

properties including buildings, land, 

and sites across the country. 

Since 1994, GSA has applied the 

Construction Wage Rate Requirements 

(CWRR), also known as the Davis-Bacon 

Act (DBA), clauses in contracts and 

subcontracts specifically for new 

building construction, whether planned 

lease construction or the complete 

rehabilitation or reconstruction of an 

existing building, where the 

Government is the sole or predominant 

tenant of the facility. 

On August 23, 2023, the Department 

of Labor (DOL) published a final rule 

updating the regulations that implement 

the Davis-Bacon and Related Acts 

(DBRA) (see 88 FR 57526). The DOL 

rule, among other things, clarified the 

regulatory definitions of a ‘‘building or 

work’’ and ‘‘public building or public 

work’’ to include a portion of a building 

or work, or the installation of equipment 

or components into a building or work, 

even where the entire building or work 

is not owned, leased, or used by a 

Federal agency, so long as other 

requirements for coverage are met. 

Examples of other requirements for 

coverage include the Federal 

government’s sufficient involvement 

with the lease, and the existence of a 

contract for construction that is 

authorized or financed by the Federal 

government. 

In reviewing the clarifying language 

in DOL’s recent revisions to the DBRA 

regulations, the Federal Acquisition 

Regulation (FAR) subpart 22.4 Labor 

Standards for Contracts Involving 

Construction, and GSAR Part 570 

Acquiring Leasehold Interests in Real 

Property, GSA determined that 

proposing a new subpart addressing all 

of the requirements for lease contracts 

with a CWRR qualifying construction 

event was necessary. 

II. Discussion and Analysis 

The rule proposes to amend GSAR 

Subpart 570.1, General by creating a 

new section GSAR 570.119 Construction 

labor requirements for lease acquisitions 

to assist the leasing acquisition 

workforce in implementing the changes 

to the CWRR clauses. The new subpart 

will identify: 

• When CWRR applies; 

• Common terminology to ensure the 

Government, offeror, lessor, and 

subcontractors clearly understand the 

application and associated 

requirements; 

• Why the Service Contract Labor 

Standards usually does not apply to 

lease contracts; 

• Procedures for compliance 

monitoring and reporting; and 

• All applicable clauses and 

executive orders required for lease 

contracts with a qualifying construction 

event. 

A. Identify When CWRR Applies 

The rule will require the application 

of the CWRR in all new and existing 

lease contracts with a qualifying 

construction event provided that the 

construction work itself is performed in 

whole or in part within the United 

States, District of Columbia, or the 

Commonwealth of Northern Mariana 

Islands. 

B. Common Terminology 

The key component of the rule is 

defining a qualifying construction event 

which prompts a lease contract to 

include the CWRR requirements. This 

rule also defines ancillary terms 

including tenant improvements, 

building shell and building specific 

amortized capital. These terms have 

long been used in GSA lease contracts. 

C. Service Contract Labor Standards 

The rule clarifies that the Service 

Contract Labor Standards (SCLS), also 

known as Service Contract Act (SCA), 

generally does not apply to contracts for 

the lease of space for government 

occupancy because these contracts 

usually do not have the principal 

purpose of furnishing services, as 

required for coverage under the SCLS. 

(See 41 U.S.C. 6702, 29 CFR 4.134(b)). 

In addition, workers carrying out the 

construction activities on lease contracts 

with a qualifying construction event are 

covered by the CWRR and therefore are 

exempt from coverage under the SCLS. 

(See 29 CFR 4.115(b)). 

D. Procedures for Requirements, 

Compliance Monitoring and Reporting 

The rule directs contracting officers to 

the Federal Acquisition Regulation 

(FAR) guidance to implement CWRR 

requirements in lease acquisitions 

involving qualifying construction 

events, including wage determinations 

(FAR 22.404), payroll certification and 

work safety and health (FAR 22.407), 

and compliance and monitoring (FAR 

22.406–7). 

E. List of All Applicable Clauses 

The rule will add CWRR labor clauses 

to GSAR section 570.701 FAR 

provisions and clauses for all lease 

contracts with a qualifying construction 

event including the clauses that 

incorporate Executive Order (E.O.) 

13706, Establishing Paid Sick Leave for 

Federal Contracts, and E.O. 14026, 

Increasing the Minimum Wage for 

Federal Contractors. 

Although the majority of the required 

CWRR labor clauses were previously 

included in leasing contract templates 

per the DOL’s All Agency Memorandum 

176 and the remaining clauses were 

included as a result of the two 

applicable E.O.s, the application of the 

CWRR affected only a small number of 

lease contracts. The DOL DBRA final 

rule’s clarification of the term ‘‘public 

building or public works’’ expanded 

GSA’s application of CWRR for lease 

contracts involving construction and 

prompted this change. 

F. Severability 

If any portion (e.g., section, clause, 

sentence) of this rule, as finalized, is 

held to be invalid or unenforceable 

facially, or as applied to any entity or 

circumstance, it shall be severable from 

the remainder of the rule, and shall not 

affect the remainder thereof, or its 

application to entities not similarly 

situated or to other dissimilar 

circumstances. The various portions of 

this proposed rule are independent and 

serve distinct purposes. Even if one 

aspect as finalized were rendered 

invalid, the other benefits of the rule 

would still be applicable. As an 

illustrative but not exhaustive example, 

were a court to stay or invalidate any 

changes to GSAR subpart 570.1 as 

finalized regarding the definition of 

‘‘public building or public works’’, GSA 

would intend the broader proposed 

restructuring of GSAR 570 to remain 

effective. 

III. Expected Impact of the Rule 

This section is divided into an 

analysis of the qualitative and 

quantitative impact the rule will have 

on the public and the Government. The 

associated costs were calculated by 

analyzing Fiscal Years 2021 through 

Fiscal Year 2023 data from the Real 


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Federal Register / Vol. 89, No. 215 / Wednesday, November 6, 2024 / Proposed Rules 87995 

Estate Across the United States (REXUS) 

database. 

According to the review of REXUS 

data, the estimated annual number of 

lease contract actions with a qualifying 

construction event is 727, of which 70 

percent, or 509, were with small 

business entities. In this section, GSA 

based the calculations for the Regulatory 

Impact Analysis on the 2024 General 

Schedule Grade 12 Step 5 pay scale 

(using the rate for the rest of the United 

States) with a burden of 100% for fringe 

benefits. The following paragraphs 

detail activities which are required by 

this rule for lease contracts with a 

qualifying construction event: 

A. Overall Impact 

Although the rule will expand GSA’s 

application of CWRR from less than 10 

lease contracts per year to an estimated 

average of 727 annually, existing 

resources will greatly reduce the impact 

of this rule. Specifically, existing DOL 

training resources, GSA leasing guide 

and templates, and stakeholders’ 

familiarity with the CWRR requirements 

and the two E.O.s will significantly 

reduce the impact of this rule. GSA 

analyzed the effects of the rule in four 

significant areas: 

• Wage determinations; 

• Payroll reviews and certifications; 

• Familiarization of applicable 

clauses; and 

• Monitoring and reporting. 

A.1. Wage Determinations 

First, GSA reviewed the process for 

incorporating the appropriate wage 

determinations throughout the lease 

contract with a qualifying construction 

event’s life cycle. This rule will require 

the contracting officer to incorporate the 

wage determinations with the 

solicitation package and update with the 

most recent wage determinations at the 

time of a qualifying construction event. 

Lessors and their subcontractors are 

responsible for ensuring laborers and 

mechanics are being paid in accordance 

with the CWRR wage determination, 

accrue the correct sick time, and are 

paid at or above the E.O. 14026 

minimum wage rate. 

GSA estimates that lessors with 

qualifying construction events may 

initially take an average of 2 hours to 

implement the procedures for ensuring 

the wage determinations are included in 

any subcontract awarded to carry out 

the qualifying construction event. The 2 

hours estimation is based on historical 

estimates from GSA construction 

contractors. GSA estimates that there 

will be an average of 1 subcontractor for 

each qualifying construction event, 

which takes into consideration 

circumstances in which lessors use their 

own employees to carry out the 

construction and circumstances in 

which more than one subcontractor 

work on the project. GSA estimated the 

regulatory cost for this part of the rule 

to be $137,316 (= 2 hours × $94.44 × 727 

(rounded)). 

A.2. Payroll Reviews and Certifications 

Next GSA reviewed the CWRR 

requirement for contractors and 

subcontractors to submit weekly 

certified payroll to the contracting 

agency. (See FAR clause 52.222–8(b)). In 

analyzing the impact of the rule on 

payroll reviews and certifications, GSA 

found that most businesses use 

automated payroll software to process 

their payrolls. The impact of this rule 

associated with the use of these 

automated systems will be reduced 

because the majority of the data such as 

employee identifiers, number of 

withholdings/exemptions, hours 

worked, and rate of pay is already being 

captured. 

GSA recognizes that for leasing, the 

payroll review and certification process 

will only apply to lease contracts with 

a qualifying construction event and will 

terminate at the successful completion 

of the qualifying construction event 

work. Therefore, lessors will not 

necessarily be required to review and 

submit the payroll data for an entire 52- 

week timeframe. 

GSA also discovered, due to the 

frequency of the payroll data 

submissions, that after the completion 

of the first payroll review and 

certification, subsequent reviews 

required less time and effort. This 

reduction in review and certification 

time could be traced back to the lack of 

variances or major changes to the 

contractor payroll data. Most changes 

were due to employee turnover, new 

hires, and apprenticeship to journeyman 

ratios. Currently, GSA is looking at an 

enterprise-type solution to the payroll 

review and certification process through 

the procurement of commercial off-theshelf products. 

GSA estimates that lessors with 

qualifying construction events may 

initially take an average of 1.5 hours to 

develop and implement procedures for 

reviewing and certifying payroll data. 

GSA’s calculation also includes the 

average weeks a qualifying construction 

event takes to complete the work, which 

is 24 weeks . GSA estimated the 

regulatory cost for the above scenario to 

be $2,471,684 (= 1.5 hours × $94.44 × 

727 × 24 weeks (rounded)). 

A.3. Labor Clause Familiarization 

In analyzing the impact of the rule 

associated with the need to become 

familiar with the added clauses, GSA 

found that all of the clauses being 

applied through GSAR 570.701 already 

exist in current leasing contract 

templates. Therefore, the leasing 

acquisition workforce and the lessor 

community have general familiarity 

with the majority of the changes 

proposed in the rule. 

GSA estimates that lessors with 

qualifying construction events may 

initially take an average of 2 hours to 

familiarize themselves with CWRR. The 

2 hours estimation is based on historical 

information, complexity of the clause 

and the detailed training available to the 

lessor. GSA estimated the regulatory 

cost for this part of the rule to be 

$137,316 (= 2 hours × $94.44 × 727 

(rounded)). 

In addition, lessors are estimated to 

require 5 additional hours based on the 

complexity of the information to 

familiarize themselves with E.O. 13706. 

GSA estimated the regulatory cost for 

this part of the rule to be $343,289 (= 

5 staff hours × $94.44 × 727). 

Lessors were also estimated to take 3 

hours to familiarize themselves with 

E.O. 14026. Minimum wage 

requirements have been part of the 

Federal, State and local laws for 

decades. The 3 hours accounts for some 

of the nuances made in the E.O. 

application. GSA estimated the 

regulatory cost for this part of the rule 

to be $205,974 (= 2 hours × $94.44 × 

727). 

A.4. Monitoring and Reporting 

In analyzing the monitoring and 

reporting requirements, GSA found the 

initial impact would be on the increased 

number of leasing contracting officers, 

lessors, and subcontractors affected by 

the updated DOL rule. Although the 

CWRR clauses were in GSA templates, 

GSA did not apply the CWRR 

requirements to the majority of the lease 

contracts and did not require the 

development of internal processes to 

resolve payroll discrepancies, if needed, 

or reporting to DOL. 

GSA will be responsible for 

submitting two enforcement or 

compliance reports annually, as 

necessary, to DOL. These reports 

include the submission or updating of 

the 3-year forecast report and the 

submission of semi or annual 

compliance reports. 

GSA estimates that lessors with 

qualifying construction events may take 

an average of 1.5 hours to provide 

responses to payroll discrepancies with 


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87996 Federal Register / Vol. 89, No. 215 / Wednesday, November 6, 2024 / Proposed Rules 

supplemental payroll review documents 

or other information if required for 

investigations, which can be generated 

from databases very quickly. GSA 

estimated the regulatory cost for this 

part of the rule to be $102,987 (= 1.5 

hours × $94.44 × 727 (rounded)). 

B. Benefits 

GSA believes that applying the DOL 

DBRA final rule through the CWRR 

statute to lease contracts with a 

qualifying construction event will result 

in benefits to the government, laborers 

and mechanics, and lessors and their 

subcontractors. Some possible benefits 

for each group are provided below: 

B.1. For the Government 

In updating its regulation, the DOL 

clearly explained the benefits to the 

Federal Government. For GSA, this 

change will ensure GSA leases are 

performed in accordance with current 

regulations. GSA has an interest in only 

contracting with those lessors that 

comply with all applicable Federal 

regulations, for that provides the 

greatest confidence that they will 

support the requirements of their lease 

contract. 

B.2. For Laborers and Mechanics 

Affected laborers and mechanics are 

expected to significantly benefit from 

the implementation of the changes to 

CWRR to the extent they increase the 

wages and fringe benefits paid to these 

workers. Any increase in wages will 

increase their ability to buy groceries, 

pay for housing (i.e., rent or mortgage 

payments), purchase gasoline and other 

necessities as well as entertainment. In 

addition, laborers and mechanics will 

be provided with compliance and 

protections that may increase worker’s 

job satisfaction and productivity levels. 

B.3. For Lessors and Subcontractors 

Lessors and their subcontractors, 

especially small businesses, will be 

knowledgeable of the regulations and 

well positioned to comply thus avoiding 

the risk of enforcement action from the 

DOL. Also, some proponents to 

modernizing DBA argue that DBA, also 

known as CWRR, payment of no less 

than prevailing wages to eligible 

workers may attract a more experienced 

level of laborers and mechanics to work 

on Government construction contracts. 

C. Summary of Total Costs 

The overall annual total cost, 

including both Public and Government 

costs, is outlined in the table below: 

Action Number of 

hours 

Cost per 

qualifying 

event 

Number of 

qualifying 

lease 

contracts 

Total cost 

Updating Wage Determinations (Public) ................................................................................................. 2 $94.44 727 $137,316 

Payroll Reviews and Certification (Public) .............................................................................................. * 1.5 94.44 727 2,471,684 

Familiarization with DBA Requirements (Public) .................................................................................... 2 94.44 727 137,316 

Familiarization With E.O. 13706 Establishing Paid Sick Leave for Federal Contractors (Public) ......... 5 94.44 727 343,289 

Familiarization With E.O. Executive Order 14026 Increasing the Minimum Wage for Federal Contractors .................................................................................................................................................

(Public) .................................................................................................................................................... 3 94.44 727 205,974 

Total (Public) .................................................................................................................................... ........................ ........................ ........................ 3,295,579 

Updating Wage Determinations (Government) ....................................................................................... .5 94.44 727 34,329 

Payroll Reviews and Certifications (Government) .................................................................................. 2 94.44 727 137,316 

Monitoring and Reporting CWRR,and Paid Sick Leave(Government) ................................................... 1.5 94.44 727 102,987 

Total Government ............................................................................................................................ ........................ ........................ ........................ 274,632 

Total Public + Total Government .............................................................................................. ........................ ........................ ........................ 3,570,211 

* For 24 weeks. 

Although there are no quantifiable 

cost savings in implementing this 

proposed rule, the majority of the costs 

incurred (95%) are associated with the 

conducting of weekly payroll reviews 

and certification. GSA expects to have 

an automated resolution in the near 

future which is expected to significantly 

reduce the cost of performing this 

activity. 

IV. Executive Orders 12866, 13563, and 

14094 

Executive Orders (E.O.s) 12866 and 

13563 direct agencies to assess all costs 

and benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). E.O. 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. E.O. 14094 (Modernizing 

Regulatory Review) supplements and 

reaffirms the principles, structures, and 

definitions governing contemporary 

regulatory review established in E.O. 

12866 and E.O. 13563. 

This is not a significant regulatory 

action and, therefore, was not subject to 

review under section 6(b) of E.O. 12866, 

Regulatory Planning and Review, dated 

September 30, 1993. 

V. Regulatory Flexibility Act 

The change may 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 of the 

application of the CWRR to a larger 

number of leases. An Initial Regulatory 

Flexibility Analysis (IRFA) has been 

prepared consistent with 5 U.S.C. 603. 

The Regulatory Secretariat will be 

submitting a copy of the Initial 

Regulatory Flexibility Analysis (IRFA) 

to the Chief Counsel for Advocacy of the 

Small Business Administration. A copy 

of the IRFA may be obtained from the 

Regulatory Secretariat Division. GSA 

invites comments from small business 

concerns and other interested parties on 

the expected impact of this rule on 

small entities. 

GSA 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 (GSAR Case 2021–G530) in 

correspondence. 

The analysis is summarized as 

follows: 

The General Services Administration 

(GSA) is proposing to amend the General 

Services Administration Acquisition 

Regulation (GSAR) to add a new section to 

adopt the amended definition of the term 

‘‘public building or public work’’ from the 

Department of Labor’s (DOL) Updating the 

Davis-Bacon Acts Regulations final rule and 

to include compliance with the minimum 

wage and sick leave Executive Orders and 


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Federal Register / Vol. 89, No. 215 / Wednesday, November 6, 2024 / Proposed Rules 87997 

other requirements for leasehold acquisitions 

of real property when there is a qualifying 

construction event as defined in this rule. 

The objective of the rule is to amend GSAR 

Subpart 570.1, General, by creating section 

571.119 Construction Labor requirements for 

lease acquisition and adding applicable labor 

clauses at 570.701 FAR provisions and 

clauses to clarify when GSA’s lease contracts 

with a qualifying construction event would 

need to apply Construction Wage Rate 

Requirements (CWRR). 

Title 40 of the United States Code (U.S.C.) 

Section 121 authorizes GSA to issue 

regulations, including the GSAR, to control 

the relationship between GSA and 

contractors. 

The rule will apply to large and small 

businesses. For purposes of this assessment, 

information generated from the Real Estate 

Across the United States (REXUS) has been 

used as the basis for estimating the number 

of contractors that may be involved. GSA 

estimates that of the 7,618 lease contracts in 

its inventory approximately 727 annual lease 

contracts are projected annually to have a 

qualifying construction event of which over 

509 (70 percent) are estimated to involve 

small business entities. 

It is anticipated that these changes will 

ensure both large and small businesses 

comply with CWRR statutory requirements 

for lease contracts with a qualifying 

construction event. These changes will 

clarify the requirements for the acquisition 

workforce, offerors and lessors and ensure 

that all laborers and mechanics receive the 

appropriate wages, protections provided by 

the statute, and receive the paid sick leave 

and minimum wages provided by executive 

orders. Overall, the implementation of the 

changes to the application of CWRR will 

ensure small businesses can compete equally 

with large businesses when recruiting 

qualified and experienced laborers and 

mechanics. 

The rule will not impose any additional 

reporting, recordkeeping and other 

compliance requirements than those required 

by the CWRR statute as updated in the DOL 

DBRA final rule. 

There are no known significant alternative 

approaches to the rule. The changes to the 

Davis-Bacon and Related Acts final rule 

clarify that the definition of ‘‘building or 

work’’ and ‘‘public building (or public 

work)’’ applies to lease contracts involving 

public construction over $2,000. 

VI. Paperwork Reduction Act 

The Paperwork Reduction Act (44 

U.S.C. chapter 35) does apply; however 

these changes to the GSAR do not 

impose additional information 

collection requirements to the 

paperwork burden previously approved 

under the Office of Management and 

Budget Control Numbers 1235–0008 and 

1235–0018 (Davis-Bacon Certified 

Payroll); and OMB control number 

1235–0023 (Requests to Approve 

Conformed Wage Classifications and 

Unconventional Fringe Benefit Plans 

Under the Davis-Bacon and Related 

Acts/Contract Work Hours and Safety 

Standards Act). 

List of Subjects in 48 CFR Part 570 

Government procurement. 

Jeffrey A. Koses, 

Senior Procurement Executive, Office of 

Acquisition Policy, Office of Governmentwide Policy, General Services Administration. 

Therefore, GSA proposes amending 

48 CFR part 570 as set forth below: 

■ 1. The authority citation for 48 CFR 

part 570 continues to read as follows: 

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

PART 570—ACQUIRING LEASEHOLD 

INTERESTS IN REAL PROPERTY 

■ 2. Add section 570.119 to read as 

follows: 

570.119 Construction labor requirements 

for lease acquisitions. 

This section applies to all new and 

existing leases with a qualifying 

construction event where the work is 

performed in whole or in part within 

the 50 states, District of Columbia, or 

the Commonwealth of Northern Mariana 

Islands. See FAR subpart 22.4, GSAR 

Subpart 522.4, and the Public Buildings 

Service (PBS) Pricing Desk Guide 

located at https://www.gsa.gov/realestate/pricing-policy for additional 

guidance, as applicable. 

570.119–1 Definitions. 

As used in this section— 

Building specific amortized capital 

(BSAC) improvements means security 

items that are a separate capital 

investment in the property. See PBS 

Pricing Desk Guide for additional 

information at https://www.gsa.gov/realestate/pricing-policy. 

Building shell improvements means 

improvements to provide the complete 

enveloping structure, the base building 

systems, and the finished common areas 

(e.g., building common and floor 

common) of a building that adjoin the 

occupant areas. See PBS Pricing Desk 

Guide for additional information at 

https://www.gsa.gov/real-estate/pricingpolicy. 

Public Building or Public Works 

includes construction activity involving 

just a portion of a building or work, 

including the installation, where 

appropriate, of equipment or 

components into a building or work, 

and even where the entire building or 

work is not owned, leased by, or to be 

used by a Federal agency so long as the 

other requirements for coverage are met. 

Examples of other requirements for 

coverage include the Federal 

government’s sufficient involvement 

with the lease, and the existence of a 

contract for construction that is 

authorized or financed by the Federal 

government. 

Qualifying construction event means 

an event that requires construction, 

alteration, or repair work as defined in 

FAR 22.401, in excess of $2,000 of 

Federal funds, required by the 

Government in or in connection with 

leases of real property. There may be 

one or more qualifying construction 

events during the lease term. A 

qualifying construction event exists 

where the construction, alteration, or 

repair work— 

(1) Is carried on by authority of or 

with funds of a Federal agency to serve 

the interest of the general public, and 

there is sufficient involvement of the 

Federal government in the lease and 

specified construction so as to satisfy 

the definition of a public building or 

public work and supplemental language 

included in this section; 

(2) Has a defined begin and end date; 

and 

(3) Includes, at a minimum, one or 

more of the following: 

(i) Initial occupancy build-out (e.g., 

building shell improvements, tenant 

improvements, BSAC improvementsconstruction portions only); 

(ii) Build-out projects associated with 

expansion or reduction in square 

footage; 

(iii) Stand-alone alterations projects; 

or 

(iv) Cyclical carpet replacement and 

re-painting required by the lease 

contract, not including maintenance. 

Tenant improvements (TI) means 

finishes and fixtures that typically take 

space from the shell condition to a 

finished, usable condition. The resulting 

space is complete, meets applicable 

building codes, and meets the customer 

agency’s functional needs. See PBS 

Pricing Desk Guide for additional 

information at https://www.gsa.gov/realestate/pricing-policy. 

570.119–2 Inapplicability. 

The following paragraphs specify 

circumstances in which certain labor 

standards do not apply paragraphs 

specify circumstances in which certain 

labor standards do not apply: 

(a) Service Contract Labor Standards 

(SCLS). The SCLS, also known as 

Service Contract Act (SCA), does not 

apply per 41 U.S.C.6702, 29 CFR 

4.115(b), and 29 CFR 4.134(b)to lease 

contracts for government occupancy. 

(b) Construction wage rate 

requirements (CWRR). The CWRR does 

not apply to the following work: 

(1) Maintenance services which are 

regularly scheduled, routine, or 


khammond on DSKJM1Z7X2PROD with PROPOSALS
87998 Federal Register / Vol. 89, No. 215 / Wednesday, November 6, 2024 / Proposed Rules 

recurring tasks provided on an 

incidental basis and not performed as 

part of a qualifying construction event 

associated with the lease. Examples 

include— 

(i) Janitorial services; 

(ii) Utility services; and 

(iii) Landscaping services. 

(2) Repair or replacement work 

required under the lease contract which 

is not substantial or segregable. 

Examples include work of the following 

type where such work is not substantial 

or segregable— 

(i) Repairing or replacing broken or 

damaged improvements (e.g.,locks, 

partitioning, flooring, or ceiling tiles); 

(ii) Repairing or replacing building 

systems (e.g., mechanical, electrical, 

plumbing); and 

(iii) Repairing or replacing finishes in 

common areas (e.g., carpet, paint, or 

ceiling tiles). 

(3) Alteration or repair work within 

the Government’s space which were not 

requested by the Government; 

(4) Design work for a qualifying 

construction event; and 

(5) Leases or projects in Guam, Puerto 

Rico, U.S. Virgin Islands, U.S. 

Territories or foreign countries. 

570.119–3 Procedures. 

(a) Requirements. Contracting officers 

must ensure solicitations and resultant 

contracts with an anticipated qualifying 

construction event include the 

appropriate labor clauses and wage 

determination(s). Contracting officers 

must also ensure that all existing lease 

contracts with qualifying construction 

events (whether ordered by lease 

amendments or other methods) are 

formalized in a contract modification, 

extension, or option that includes the 

appropriate labor clauses and wage 

determination(s). 

(1) Appropriate construction labor 

clauses. Contracting officers shall 

include Construction Wage Rate 

Requirements (CWRR), also known as 

Davis-Bacon Act (DBA), clauses in any 

solicitation, resulting contract, and 

contract modification involving 

anticipated qualifying construction 

events (see 570.701(d)). 

(2) Wage determination requirements. 

Contracting officers shall follow 

compliance outlined in FAR 22.404 and 

this section. 

(i) Contracting officers shall include 

the most recent wage determination(s) 

for the applicable location(s) and the 

type(s) of construction work (e.g., 

building, heavy, highway, residential) in 

solicitations, before requesting final 

proposal revisions, or, for qualifying 

construction events associated with 

lease modifications, with the initial 

pricing request to the lessor. 

(ii) Contracting officers shall provide 

the most recent wage determination(s) 

to the apparent successful offeror if the 

wage determination(s) changes after the 

final proposal revisions are received but 

prior to the award of the lease contract. 

(b) Compliance monitoring 

procedures. Contracting officers shall 

follow compliance and reporting 

requirements outlined in FAR 22.406–7, 

FAR 22.2109, or FAR 22.1905 for lease 

acquisitions with qualifying 

construction events: 

(1) Compliance Monitoring. (i) The 

contracting officer must take reasonable 

steps during and after each qualifying 

construction event to ensure compliance 

with the requirements outlined in this 

section to include the: 

(A) Payment of correct wage 

determination or minimum wage rates 

during each qualifying construction 

event. 

(B) Receipt of payroll records from the 

lessor from each qualifying construction 

event, as required. 

(C) Accessibility of all payroll records 

to the DOL during the 3-year retention 

period for investigation or audits. 

(ii) The contracting officer is 

responsible for tracking discrepancies 

for qualifying construction events, 

including investigation, reporting, and 

resolution. Outstanding discrepancies 

unresolved at the completion of the 

construction work shall be followed up 

until resolved. 

(2) Reporting. The PBS Leasing Office 

is responsible for the timely submission 

of reports to DOL including enforcement 

and forecasting reports (see FAR 

22.406–13 and 522.406–13). The PBS 

Leasing Office shall submit a copy of 

these reports to the GSA Labor Advisor 

at GSALaborAdvisor@gsa.gov. 

■ 3. Amend section 570.701 by adding 

paragraph (1) to the table to read as 

follows: 

570.701 FAR provisions and clauses. 

* * * * * 

If . . . Then include . . . 

*******

(1) Insert the following clauses in the solicitation, resulting contract or 

contract modification that involve a qualifying construction event in 

excess of $2,000:.

52.222–4 Contract Work Hours and Safety Standards—Overtime 

Compensation. 

52.222–5 Construction Wage Rate Requirements Secondary Site of 

the Work. 

52.222–6 Construction Wage Rate Requirements. 

52.222–7 Withholding of Funds. 

52.222–8 Payrolls and Basic Records. 

52.222–9 Apprentices and Trainees. 

52.222–10 Compliance with Copeland Act Requirements. 

52.222–11 Subcontracts (Labor Standards). 

52.222–12 Contract Termination–Debarment. 

52.222–13 Compliance with Construction Wage Rate Requirements 

and Related Regulations. 

52.222–14 Disputes Concerning Labor Standards. 

52.222–15 Certification of Eligibility. 

52.222–55 Minimum Wages for Contractor Workers Under Executive 

Order 14026. 

52.222–62 Paid Sick Leave Under Executive Order 13706. 

[FR Doc. 2024–25656 Filed 11–5–24; 8:45 am] 

BILLING CODE 6820–61–P 


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