4992 Federal Register / Vol. 80, No. 19 / Thursday, January 29, 2015 / Rules and Regulations 

the workplace or on the Web site is 

impracticable, the Contractor shall provide 

the relevant contents of the compliance plan 

to each worker in writing. 

(ii) The Contractor shall provide the 

compliance plan to the Contracting Officer 

upon request. 

(5) Certification. Annually after receiving 

an award, the Contractor shall submit a 

certification to the Contracting Officer that— 

(i) It has implemented a compliance plan 

to prevent any prohibited activities identified 

at paragraph (b) of this clause and to monitor, 

detect, and terminate any agent, subcontract 

or subcontractor employee engaging in 

prohibited activities; and 

(ii) After having conducted due diligence, 

either— 

(A) To the best of the Contractor’s 

knowledge and belief, neither it nor any of 

its agents, subcontractors, or their agents is 

engaged in any such activities; or 

(B) If abuses relating to any of the 

prohibited activities identified in paragraph 

(b) of this clause have been found, the 

Contractor or subcontractor has taken the 

appropriate remedial and referral actions. 

(i) Subcontracts. (1) The Contractor shall 

include the substance of this clause, 

including this paragraph (i), in all 

subcontracts and in all contracts with agents. 

The requirements in paragraph (h) of this 

clause apply only to any portion of the 

subcontract that— 

(A) Is for supplies, other than 

commercially available off-the-shelf items, 

acquired outside the United States, or 

services to be performed outside the United 

States; and 

(B) Has an estimated value that exceeds 

$500,000. 

(2) If any subcontractor is required by this 

clause to submit a certification, the 

Contractor shall require submission prior to 

the award of the subcontract and annually 

thereafter. The certification shall cover the 

items in paragraph (h)(5) of this clause. 

(End of clause) 

Alternate I (March 2, 2015). As prescribed 

in 22.1705(a)(2), substitute the following 

paragraph in place of paragraph (c)(1)(i) of 

the basic clause: 

(i)(A) The United States Government’s 

policy prohibiting trafficking in persons 

described in paragraph (b) of this clause; and 

* * * * * 

■ 18. Add section 52.222–56 to read as 

follows: 

52.222–56 Certification Regarding 

Trafficking in Persons Compliance Plan. 

As prescribed in 22.1705(b), insert the 

following provision: 

Certification Regarding Trafficking in Persons 

Compliance Plan (March 2, 2015) 

(a) The term ‘‘commercially available offthe-shelf (COTS) item,’’ is defined in the 

clause of this solicitation entitled 

‘‘Combating Trafficking in Persons’’ (FAR 

clause 52.222–50). 

(b) The apparent successful Offeror shall 

submit, prior to award, a certification, as 

specified in paragraph (c) of this provision, 

for the portion (if any) of the contract that— 

(1) Is for supplies, other than commercially 

available off-the-shelf items, to be acquired 

outside the United States, or services to be 

performed outside the United States; and 

(2) Has an estimated value that exceeds 

$500,000. 

(c) The certification shall state that— 

(1) It has implemented a compliance plan 

to prevent any prohibited activities identified 

in paragraph (b) of the clause at 52.222–50, 

Combating Trafficking in Persons, and to 

monitor, detect, and terminate the contract 

with a subcontractor engaging in prohibited 

activities identified at paragraph (b) of the 

clause at 52.222–50, Combating Trafficking 

in Persons; and 

(2) After having conducted due diligence, 

either— 

(i) To the best of the Offeror’s knowledge 

and belief, neither it nor any of its proposed 

agents, subcontractors, or their agents is 

engaged in any such activities; or 

(ii) If abuses relating to any of the 

prohibited activities identified in 52.222– 

50(b) have been found, the Offeror or 

proposed subcontractor has taken the 

appropriate remedial and referral actions. 

(End of provision) 

■ 19. Amend section 52.244–6 by 

revising the date of the clause and 

paragraph (c)(1)(ix) to read as follows: 

52.244–6 Subcontracts for Commercial 

Items. 

* * * * * 

Subcontracts for Commercial Items (March 2, 

2015) 

* * * * * 

(c)(1) * * * 

(i) * * * 

(ix)(A) 52.222–50, Combating Trafficking 

in Persons (March 2, 2015) (22 U.S.C. chapter 

78 and E.O. 13627). 

(B) Alternate I (March 2, 2015) of 52.222– 

50 (22 U.S.C. chapter 78 and E.O. 13627). 

* * * * * 

[FR Doc. 2015–01524 Filed 1–28–15; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 37 and 52 

[FAC 2005–80; FAR Case 2014–008; Item 

II; Docket No. 2014–0008; Sequence No. 1] 

RIN 9000–AM84 

Federal Acquisition Regulation; 

Management and Oversight of the 

Acquisition of Services 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Final rule. 

SUMMARY: DoD, GSA, and NASA are 

issuing a final rule amending the 

Federal Acquisition Regulation (FAR) to 

implement a recommendation to 

strengthen guidance on service 

acquisitions on uncompensated 

overtime. 

DATES: Effective: March 2, 2015. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Michael O. Jackson, Procurement 

Analyst, at 202–208–4949 for 

clarification of content. For information 

pertaining to status or publication 

schedules, contact the Regulatory 

Secretariat Division at 202–501–4755. 

Please cite FAC 2005–80, FAR Case 

2014–008. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Section 865 of the Ike Skelton 

National Defense Authorization Act 

(NDAA) for Fiscal Year (FY) 2011 (Pub. 

L. 111–383) directed the Secretary of 

Defense to submit, in consultation with 

the Office of Federal Procurement 

Policy (OFPP) and all other relevant 

Federal agencies, a review of the Federal 

Acquisition Regulation (FAR) and 

Defense Federal Acquisition Regulations 

Supplement (DFARS), to ensure that 

they have appropriate guidance for 

service acquisitions. As a result, the 

regulatory drafting teams for the FAR 

and DFARS reviewed current 

regulations related to services and 

considered the extent to which 

improvements might be needed. 

In November 2011, DoD issued a 

report entitled DoD Report to Congress 

on Federal Acquisition Regulation 

(FAR) and Defense Federal Acquisition 

Regulations Supplement (DFARS) 

Review Regarding Services Acquisition. 

This Report to Congress includes a 

series of recommendations on issues for 

strengthening existing guidance on 

services acquisition through addition, 

clarification, or expansion. 

II. Analysis and Discussion 

This FAR case implements a 

recommendation to create a definition 

of uncompensated overtime. 

Accordingly, the existing definitions of 

‘‘uncompensated overtime’’ and 

‘‘uncompensated overtime rate’’ at FAR 

52.237–10(a) have been incorporated at 

FAR 37.101, with the defined term 

‘‘uncompensated overtime rate’’ 

changing to ‘‘adjusted hourly rate 

(including uncompensated overtime).’’ 

Additionally, the definition of the new 

term ‘‘adjusted hourly rate (including 

uncompensated overtime)’’ clarifies that 

the proposed hours per week include 


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Federal Register / Vol. 80, No. 19 / Thursday, January 29, 2015 / Rules and Regulations 4993 

uncompensated overtime hours over 

and above the standard 40-hour work 

week. The clause at FAR 52.237–10 is 

further amended to clarify the 

application of the adjusted hourly rate, 

and categorization of proposed hours 

subject to the adjusted hourly rate. 

Finally, a change is made at FAR 

37.115–2 to reflect the change made in 

the clause at FAR 52.237–10(b). 

III. Publication of This Final Rule for 

Public Comment Is Not Required by 

Statute 

‘‘Publication of proposed 

regulations’’, 41 U.S.C. 1707, is the 

statute which applies to the publication 

of the Federal Acquisition Regulation. 

Paragraph (a)(1) of the statute requires 

that a procurement policy, regulation, 

procedure or form (including an 

amendment or modification thereof) 

must be published for public comment 

if it relates to the expenditure of 

appropriated funds, and has either a 

significant effect beyond the internal 

operating procedures of the agency 

issuing the policy, regulation, procedure 

or form, or has a significant cost or 

administrative impact on contractors or 

offerors. This final rule is not required 

to be published for public comment, 

because it only clarifies policy that is 

already stated in the FAR. These 

proposed changes as described in 

section II of this preamble affect only 

the internal operating procedures of the 

Government. 

IV. Executive Orders 12866 and 13563 

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. 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. This 

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

804. 

V. Regulatory Flexibility Act 

The Regulatory Flexibility Act does 

not apply to this rule because this final 

rule does not constitute a significant 

FAR revision within the meaning of 

FAR 1.501–1 and 41 U.S.C. 1707 does 

not require publication for public 

comment. 

VI. Paperwork Reduction Act 

The rule does not contain any 

information collection requirements that 

require the approval of the Office of 

Management and Budget under the 

Paperwork Reduction Act (44 U.S.C. 

chapter 35). 

List of Subjects in CFR Parts 37 and 52 

Government procurement. 

Dated: January 22, 2015. 

William Clark, 

Director, Office of Government-wide 

Acquisition Policy, Office of Acquisition 

Policy, Office of Government-wide Policy. 

Therefore, DoD, GSA, and NASA 

amend 48 CFR parts 37 and 52 as set 

forth below: 

■ 1. The authority citation for 48 CFR 

parts 37 and 52 continues to read as 

follows: 

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

chapter 137; and 51 U.S.C. 20113. 

PART 37—SERVICE CONTRACTING 

■ 2. Amend section 37.101 by adding, in 

alphabetical order, the definitions 

‘‘Adjusted hourly rate (including 

uncompensated overtime)’’ and 

‘‘Uncompensated overtime’’ to read as 

follows: 

37.101 Definitions. 

* * * * * 

Adjusted hourly rate (including 

uncompensated overtime) is the rate 

that results from multiplying the hourly 

rate for a 40-hour work week by 40, and 

then dividing by the proposed hours per 

week which includes uncompensated 

overtime hours over and above the 

standard 40-hour work week. For 

example, 45 hours proposed on a 40- 

hour work week basis at $20 per hour 

would be converted to an 

uncompensated overtime rate of $17.78 

per hour ($20.00 × 40/45 = $17.78). 

* * * * * 

Uncompensated overtime means the 

hours worked without additional 

compensation in excess of an average of 

40 hours per week by direct charge 

employees who are exempt from the 

Fair Labor Standards Act. Compensated 

personal absences such as holidays, 

vacations, and sick leave shall be 

included in the normal work week for 

purposes of computing uncompensated 

overtime hours. 

■ 3. Amend section 37.115–2 by adding 

paragraph (d) to read as follows: 

37.115–2 General policy. 

* * * * * 

(d) Whenever there is uncompensated 

overtime, the adjusted hourly rate 

(including uncompensated overtime) 

(see definition at 37.101), rather than 

the hourly rate, shall be applied to all 

proposed hours, whether regular or 

overtime hours. 

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES 

■ 4. Amend section 52.237–10 by— 

■ a. Revising the date of the provision; 

■ b. Removing from paragraph (a) the 

definition ‘‘Uncompensated overtime 

rate’’, and adding, in alphabetical order, 

the definition ‘‘Adjusted hourly rate 

(including uncompensated overtime)’’; 

and 

■ c. Revising paragraph (b). 

The revisions and addition read as 

follows: 

52.237–10 Identification of 

Uncompensated Overtime. 

* * * * * 

Identification of Uncompensated 

Overtime Mar 2015 

(a) * * * 

Adjusted hourly rate (including 

uncompensated overtime) is the rate that 

results from multiplying the hourly rate for 

a 40-hour work week by 40, and then 

dividing by the proposed hours per week 

which includes uncompensated overtime 

hours over and above the standard 40-hour 

work week. For example, 45 hours proposed 

on a 40-hour work week basis at $20 per hour 

would be converted to an uncompensated 

overtime rate of $17.78 per hour ($20.00 × 40 

divided by 45 = $17.78). 

* * * * * 

(b)(1) Whenever there is uncompensated 

overtime, the adjusted hourly rate (including 

uncompensated overtime), rather than the 

hourly rate, shall be applied to all proposed 

hours, whether regular or overtime hours. 

(2) All proposed labor hours subject to the 

adjusted hourly rate (including 

uncompensated overtime) shall be identified 

as either regular or overtime hours, by labor 

categories, and described at the same level of 

detail. This is applicable to all proposals 

whether the labor hours are at the prime or 

subcontract level. This includes 

uncompensated overtime hours that are in 

indirect cost pools for personnel whose 

regular hours are normally charged direct. 

* * * * * 

[FR Doc. 2015–01525 Filed 1–28–15; 8:45 am] 

BILLING CODE 6820–EP–P 


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