[Federal Register Volume 66, Number 12 (Thursday, January 18, 2001)]
[Rules and Regulations]
[Pages 5346-5349]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-1503]



[[Page 5345]]

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Part XI





Department of Defense

General Services Administration

National Aeronautics and Space Administration





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48 CFR Parts 22 and 52



Federal Acquisition Regulation; Final Rules





Department of Labor





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Bureau of International Labor Affairs; List of Products Requiring 
Federal Contractor Certification as to Forced or Indentured Child 
Labor; Notices

Federal Register / Vol. 66 , No. 12 / Thursday, January 18, 2001 / 
Rules and Regulations

[[Page 5346]]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 22 and 52

[FAC 97-23; FAR Case 1999-608]
RIN 9000-AI51


Federal Acquisition Regulation; Prohibition of Acquisition of 
Products Produced by Forced or Indentured Child Labor

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) are issuing a final rule to 
amend the Federal Acquisition Regulation (FAR) to implement the 
specific requirements of Executive Order 13126, Prohibition of 
Acquisition of Products Produced by Forced or Indentured Child Labor, 
as well as to prescribe further appropriate actions to comply with the 
broad policy of the Executive Order (i.e., to enforce laws prohibiting 
the manufacture or importation of products that have been mined, 
produced, or manufactured wholly or in part using forced or indentured 
child labor).

DATES: Effective Date: February 20, 2001.
    Applicability Date: The FAR, as amended by this rule, is applicable 
to solicitations issued on or after February 20, 2001 per FAR 1.108(d).

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. Linda Nelson, Procurement Analyst, at (202) 501-
3775. Please cite FAC 97-23, FAR case 1999-608.

SUPPLEMENTARY INFORMATION:

A. Background

    This final rule amends the FAR by adding a new FAR subpart on 
prohibition of acquisition of products produced by forced or indentured 
child labor (Subpart 22.15), adding a new certification regarding 
knowledge of child labor for listed end products (FAR 52.212-3 and 
52.222-18), and adding a clause at 52.222-19, that requires cooperation 
with authorities if the solicitation included the certification 
provision and provides remedies for violations relating to use of 
forced or indentured child labor.
    On June 12, 1999, the President signed Executive Order 13126, 
Prohibition of Acquisition of Products Produced by Forced or Indentured 
Child Labor (the Executive Order). The Executive Order states a broad 
policy that executive agencies must take appropriate actions to enforce 
the laws prohibiting the manufacture or importation of products mined, 
produced, or manufactured wholly or in part by forced or indentured 
child labor.
    Section 2 of the Executive Order directed the Department of Labor 
(DoL), in consultation with the Department of Treasury and the 
Department of State, to publish in the Federal Register a list of 
products (the List, identified by their country of origin, for which 
there is a reasonable basis to believe that such product may have been 
mined, produced, or manufactured by forced or indentured child labor. 
DoL published the preliminary List in the Federal Register on September 
6, 2000 (65 FR 54108-54112), and solicited public comment. After 
receipt and consideration of the public comments, DoL is publishing the 
final List in today's Federal Register.
    Section 3 of the Executive Order required the Councils to issue a 
proposed rule, amending the FAR to implement the policy expressed in 
the Executive Order. Accordingly, the Councils published a proposed 
rule in the Federal Register on September 6, 2000 (65 FR 54104-54107). 
Public comments on the proposed rule were due by November 6, 2000.
    Ten respondents submitted public comments. Most comments received 
did not object to the basic policy but were outside the scope of the 
case, because they request FAR revisions that go beyond the scope of 
the Executive Order or are inconsistent with the requirements of the 
Executive Order.
    For example, some suggested expanding the scope of the mandate of 
the Executive Order in the regulation to address products made by 
convict labor and forced or indentured labor by persons 18 or older--
clearly outside the purview of this rulemaking. Other respondents 
suggested using a different definition of ``forced or indentured child 
labor,'' a comment that has been addressed in the companion rule being 
issued simultaneously by the Department of Labor. The Councils 
carefully considered all comments in formulation of the final rule.
    The Councils are issuing a final rule that is the same as the 
proposed rule, except for minor editorial changes. 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 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 only a small percentage 
of acquisitions are for products on the DoL List, there is minimal 
impact on offerors providing a listed product that originates in a 
country other than the corresponding countries identified on the DoL 
List, and not all offerors responding to solicitations for these 
acquisitions are small entities. With regard to the clause that 
requires cooperation with authorities and provides remedies for 
violations relating to use of forced or indentured child labor, we 
expect that very few contractors are furnishing end products or 
components produced by forced or indentured child labor. The rule does 
not apply to micro-purchases.
    The Councils did not receive any comments regarding the Regulatory 
Flexibility Act as a result of publication of the proposed rule in the 
Federal Register at 65 FR 54104.

C. Nonstatutory Certification Approval

    In accordance with Section 29 of the Office of Federal Procurement 
Policy Act, 41 U.S.C. Section 425, the FAR Council has requested 
approval from the Administrator for Federal Procurement Policy for 
inclusion of a nonstatutory certification in the Federal Acquisition 
Regulation. In the absence of an Administrator, that approval has been 
granted by the Director of the Office of Management and Budget in 
accordance with the Federal Vacancies Reform Act of 1998, 5 U.S.C. 
3348(b)(2).

D. Paperwork Reduction Act

    The Paperwork Reduction Act (Pub. L. 104-13) applies. This final 
rule contains information collection requirements that have been 
submitted to the Office of Management and Budget (OMB) which will not 
take effect prior to OMB approval of these provisions. Two respondents 
commented on the estimated burden of the information collection 
requirements.
    The Councils note that the average response time reflects the 
average

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burden on all contractors, including those who must simply certify that 
they are not supplying products that were mined, produced, or 
manufactured in the corresponding country identified on the DoL List. 
We also anticipate that, given the need to comply with the Tariff Act 
of 1930, many offerors would already have taken steps that would enable 
them to make the necessary certification, before they sought to supply 
a product from a country identified on the DoL List.
    The proposed rule erroneously stated the estimated hours per 
response as .30 hours rather than .5 hours (30 minutes). This does not 
change the total estimate of 250 response burden hours per year.
The revised annual reporting burden is estimated as follows:

    Respondents: 500.
    Responses per respondent: 1.
    Total annual responses: 500.
    Preparation hours per response: .5.
    Total response burden hours: 250.

List of Subjects in 48 CFR Parts 22 and 52

    Government procurement.

    Dated: January 12, 2001.
Al Matera,
Acting Director, Federal Acquisition Policy Division.

Federal Acquisition Circular

    Federal Acquisition Circular (FAC) 97-23 is issued under the 
authority of the Secretary of Defense, the Administrator of General 
Services, and the Administrator for the National Aeronautics and Space 
Administration.
    All Federal Acquisition Regulation (FAR) changes and other 
directive material contained in FAC 97-23 are effective February 20, 
2001.

    Dated: January 11, 2001.
  
  
R.D. Kerrins, Jr.,
Acting Director, Defense Procurement, Department of Defense.

    Dated: January 11, 2001.
  
  
David A. Drabkin,
Deputy Associate Administrator, Office of Acquisition Policy, 
General Services Administration.

    Dated: January 12, 2001.
  
  
Anne Guenther,
Acting Associate Administrator for Procurement, National Aeronautics 
and Space Administration.

    Therefore, DoD, GSA, and NASA amend 48 CFR Parts 22 and 52 as set 
forth below:
    1. The authority citation for 48 CFR Parts 22 and 52 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).

PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

    2. Add Subpart 22.15 to read as follows:

Subpart 22.15--Prohibition of Acquisition of Products Produced by 
Forced or Indentured Child Labor

Sec.
22.1500   Scope.
22.1501   Definitions.
22.1502   Policy.
22.1503   Procedures for acquiring end products on the List of 
Products Requiring Contractor Certification as to Forced or 
Indentured Child Labor.
22.1504   Violations and remedies.
22.1505   Solicitation provision and contract clause.


22.1500  Scope.

    This subpart applies to acquisitions of supplies that exceed the 
micro-purchase threshold.


22.1501  Definitions.

    As used in this subpart--
    Forced or indentured child labor means all work or service--
    (1) Exacted from any person under the age of 18 under the menace of 
any penalty for its nonperformance and for which the worker does not 
offer himself voluntarily; or
    (2) Performed by any person under the age of 18 pursuant to a 
contract the enforcement of which can be accomplished by process or 
penalties.
    List of Products Requiring Contractor Certification as to Forced or 
Indentured Child Labor means the list published by the Department of 
Labor in accordance with Executive Order 13126 of June 12, 1999, 
Prohibition of Acquisition of Products Produced by Forced or Indentured 
Child Labor. The list identifies products, by their country of origin, 
that the Departments of Labor, Treasury, and State have a reasonable 
basis to believe might have been mined, produced, or manufactured by 
forced or indentured child labor.


22.1502  Policy.

    Agencies must take appropriate action to enforce the laws 
prohibiting the manufacture or importation of products that have been 
mined, produced, or manufactured wholly or in part by forced or 
indentured child labor (19 U.S.C. 1307, 29 U.S.C. 201, et seq., and 41 
U.S.C. 35, et seq.). Agencies should make every effort to avoid 
acquiring such products.


22.1503  Procedures for acquiring end products on the List of Products 
Requiring Contractor Certification as to Forced or Indentured Child 
Labor.

    (a) When issuing a solicitation for supplies expected to exceed the 
micro-purchase threshold, the contracting officer must check the List 
of Products Requiring Contractor Certification as to Forced or 
Indentured Child Labor (the List) (www.dol.gov/dol/ilab) (see 
22.1505(a)). Appearance of a product on the List is not a bar to 
purchase of any such product mined, produced, or manufactured in the 
identified country, but rather is an alert that there is a reasonable 
basis to believe that such product may have been mined, produced, or 
manufactured by forced or indentured child labor.
    (b) The requirements of this subpart that result from the 
appearance of any end product on the List do not apply to a 
solicitation or contract if the identified country of origin on the 
List is--
    (1) Canada, and the anticipated value of the acquisition is $25,000 
or more (see 25.405);
    (2) Israel, and the anticipated value of the acquisition is $50,000 
or more (see 25.406);
    (3) Mexico, and the anticipated value of the acquisition is $54,372 
or more (see 25.405); or
    (4) Aruba, Austria, Belgium, Denmark, Finland, France, Germany, 
Greece, Hong Kong, Ireland, Italy, Japan, Korea, Liechtenstein, 
Luxembourg, Netherlands, Norway, Portugal, Singapore, Spain, Sweden, 
Switzerland, or the United Kingdom and the anticipated value of the 
acquisition is $177,000 or more (see 25.403(b)).
    (c) Except as provided in paragraph (b) of this section, before the 
contracting officer may make an award for an end product (regardless of 
country of origin) of a type identified by country of origin on the 
List the offeror must certify that--
    (1) It will not supply any end product on the List that was mined, 
produced, or manufactured in a country identified on the List for that 
product, as specified in the solicitation by the contracting officer in 
the Certification Regarding Knowledge of Child Labor for Listed End 
Products; or
    (2)(i) It has made a good faith effort to determine whether forced 
or indentured child labor was used to mine, produce, or manufacture any 
end product to be furnished under the contract that is on the List and 
was mined, produced, or manufactured in a country identified on the 
List for that product; and

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    (ii) On the basis of those efforts, the offeror is unaware of any 
such use of child labor.
    (d) Absent any actual knowledge that the certification is false, 
the contracting officer must rely on the offerors' certifications in 
making award decisions.
    (e) Whenever a contracting officer has reason to believe that 
forced or indentured child labor was used to mine, produce, or 
manufacture an end product furnished pursuant to a contract awarded 
subject to the certification required in paragraph (c) of this section, 
the contracting officer must refer the matter for investigation by the 
agency's Inspector General, the Attorney General, or the Secretary of 
the Treasury, whichever is determined appropriate in accordance with 
agency procedures, except to the extent that the end product is from 
the country listed in paragraph (b) of this section, under a contract 
exceeding the applicable threshold.
    (f) Proper certification will not prevent the head of an agency 
from imposing remedies in accordance with section 22.1504(a)(4) if it 
is later discovered that the contractor has furnished an end product or 
component that has in fact been mined, produced, or manufactured, 
wholly or in part, using forced or indentured child labor.


22.1504  Violations and remedies.

    (a) Violations. The Government may impose remedies set forth in 
paragraph (b) of this section for the following violations (note that 
the violations in paragraphs (a)(3) and (a)(4) of this section go 
beyond violations of the requirements relating to certification of end 
products) (see 22.1503):
    (1) The contractor has submitted a false certification regarding 
knowledge of the use of forced or indentured child labor.
    (2) The contractor has failed to cooperate as required in 
accordance with the clause at 52.222-19, Child Labor Cooperation with 
Authorities and Remedies, with an investigation of the use of forced or 
indentured child labor by an Inspector General, the Attorney General, 
or the Secretary of the Treasury.
    (3) The contractor uses forced or indentured child labor in its 
mining, production, or manufacturing processes.
    (4) The contractor has furnished an end product or component mined, 
produced, or manufactured, wholly or in part, by forced or indentured 
child labor. Remedies in paragraphs (b)(2) and (b)(3) of this section 
are inappropriate unless the contractor knew of the violation.
    (b) Remedies. (1) The contracting officer may terminate the 
contract.
    (2) The suspending official may suspend the contractor in 
accordance with the procedures in subpart 9.4.
    (3) The debarring official may debar the contractor for a period 
not to exceed 3 years in accordance with the procedures in subpart 9.4.


22.1505  Solicitation provision and contract clause.

    (a) Except as provided in paragraph (b) of 22.1503, insert the 
provision at 52.222-18, Certification Regarding Knowledge of Child 
Labor for Listed End Products, in all solicitations that are expected 
to exceed the micro-purchase threshold and are for the acquisition of 
end products (regardless of country of origin) of a type identified by 
country of origin on the List of Products Requiring Contractor 
Certification as to Forced or Indentured Child Labor, except 
solicitations for commercial items that include the provision at 
52.212-3, Offeror Representations and Certifications--Commercial Items. 
The contracting officer must identify in paragraph (b) of the provision 
at 52.222-18, Certification Regarding Knowledge of Child Labor for 
Listed End Products, or paragraph (i)(1) of the provision at 52.212-3, 
any applicable end products and countries of origin from the List. For 
solicitations estimated to equal or exceed $25,000, the contracting 
officer must exclude from the List in the solicitation end products 
from any countries identified at 22.1503(b), in accordance with the 
specified thresholds.
    (b) Insert the clause at 52.222-19, Child Labor--Cooperation with 
Authorities and Remedies, in all solicitations and contracts for the 
acquisition of supplies that are expected to exceed the micro-purchase 
threshold.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    3. In section 52.212-3, revise the date of the provision; add, in 
alphabetical order, in paragraph (a) the definition ``Forced or 
indentured child labor''; and add paragraph (i) to read as follows:


52.212-3  Offeror Representations and Certifications--Commercial Items.

* * * * *

OFFEROR REPRESENTATIONS AND CERTIFICATIONS--COMMERCIAL ITEMS (February 
2001)

    (a) * * *
* * * * *
    Forced or indentured child labor means all work or service--
    (1) Exacted from any person under the age of 18 under the menace 
of any penalty for its nonperformance and for which the worker does 
not offer himself voluntarily; or
    (2) Performed by any person under the age of 18 pursuant to a 
contract the enforcement of which can be accomplished by process or 
penalties.
* * * * *
    (i) Certification Regarding Knowledge of Child Labor for Listed 
End Products (Executive Order 13126). [The Contracting Officer must 
list in paragraph (i)(1) any end products being acquired under this 
solicitation that are included in the List of Products Requiring 
Contractor Certification as to Forced or Indentured Child Labor, 
unless excluded at 22.1503(b).]
    (1) Listed end products.

Listed End Product

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Listed Countries of Origin

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    (2) Certification. [If the Contracting Officer has identified 
end products and countries of origin in paragraph (i)(1) of this 
provision, then the offeror must certify to either (i)(2)(i) or 
(i)(2)(ii) by checking the appropriate block.]
     {time}  (i) The offeror will not supply any end product listed 
in paragraph (i)(1) of this provision that was mined, produced, or 
manufactured in the corresponding country as listed for that 
product.
    {time}  (ii) The offeror may supply an end product listed in 
paragraph (i)(1) of this provision that was mined, produced, or 
manufactured in the corresponding country as listed for that 
product. The offeror certifies that it has made a good faith effort 
to determine whether forced or indentured child labor was used to 
mine, produce, or manufacture any such end product furnished under 
this contract. On the basis of those efforts, the offeror certifies 
that it is not aware of any such use of child labor.

    3a. Effective March 12, 2001, the date of the clause at 52.212-3 
is amended by removing ``(February 2001)'' and adding (MAR 2001) in 
its place).

    4. In section 52.212-5, revise the date of the clause and the 
introductory text of paragraph (b); redesignate paragraphs (b)(16) 
through (b)(27) as (b)(17) through (b)(28), respectively, and add new 
paragraph (b)(16) to read 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 Statues or 
Executive Orders--Commercial Items (February 2001)
* * * * *
    (b) The Contractor shall comply with the FAR clauses in this 
paragraph (b) that the Contracting Officer has indicated as being 
incorporated in this contract by reference to implement

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provisions of law or Executive orders applicable to acquisitions of 
commercial items or components:
    [Contracting Officer must check as appropriate.]
* * * * *
    ____(16) 52.222-19, Child Labor--Cooperation with Authorities and 
Remedies (E.O. 13126).
* * * * *


    5. In section 52.213-4, revise the date of the clause; redesignate 
paragraphs (b)(1)(vii) through (xi) as (b)(1)(viii) through (xii), 
respectively, and add new paragraph (vii) to read as follows:


52.213-4  Terms and Conditions--Simplified Acquisitions (Other than 
Commercial Items).

* * * * *

Terms and Conditions--Simplified Acquisitions (Other Than Commercial 
Items) (February 2001)

* * * * *
    (vii) 52.222-19, Child Labor--Cooperation with Authorities and 
Remedies (JAN 2001) (E.O. 13126). (Applies to contracts for supplies 
exceeding the micro-purchase threshold.)
* * * * *

    5a. Effective March 12, 2001, the date of the clause at 52.213-4 
is amended by removing ``February 2001'' and adding ``(MAR 2001)'' 
in its place).

    6. Add new sections 52.222-18 and 52.222-19 to read as follows:


52.222-18   Certification Regarding Knowledge of Child Labor for Listed 
End Products.

    As prescribed in 22.1505(a), insert the following provision:
Certification Regarding Knowledge of Child Labor for Listed End 
Products (February 2001)
    (a) Definition. 
    Forced or indentured child labor means all work or service--
    (1) Exacted from any person under the age of 18 under the menace of 
any penalty for its nonperformance and for which the worker does not 
offer himself voluntarily; or
    (2) Performed by any person under the age of 18 pursuant to a 
contract the enforcement of which can be accomplished by process or 
penalties.
    (b) Listed end products. The following end product(s) being 
acquired under this solicitation is (are) included in the List of 
Products Requiring Contractor Certification as to Forced or Indentured 
Child Labor, identified by their country of origin. There is a 
reasonable basis to believe that listed endproducts from the listed 
countries of origin may have been mined, produced, or manufactured by 
forced or indentured child labor.
Listed End Product
----------------------------------------------------------------------
----------------------------------------------------------------------

Listed Countries of Origin

----------------------------------------------------------------------
----------------------------------------------------------------------
    (c) Certification. The Government will not make award to an 
offeror unless the offeror, by checking the appropriate block, 
certifies to either paragraph (c)(1) or paragraph (c)(2) of this 
provision.
    {time}  (1) The offeror will not supply any end product listed 
in paragraph (b) of this provision that was mined, produced, or 
manufactured in a corresponding country as listed for that end 
product.
    {time}  (2) The offeror may supply an end product listed in 
paragraph (b) of this provision that was mined, produced, or 
manufactured in the corresponding country as listed for that 
product. The offeror certifies that it has made a good faith effort 
to determine whether forced or indentured child labor was used to 
mine, produce, or manufacture such end product. On the basis of 
those efforts, the offeror certifies that it is not aware of any 
such use of child labor.
(End of provision)


52.222-19  Child Labor--Cooperation with Authorities and Remedies.

    As prescribed in 22.1505(b), insert the following clause:

Child Labor--Cooperation With Authorities and Remedies (February 2001)

    (a) Applicability. This clause does not apply to the extent that 
the Contractor is supplying end products mined, produced, or 
manufactured in--
    (1) Canada, and the anticipated value of the acquisition is 
$25,000 or more;
    (2) Israel, and the anticipated value of the acquisition is 
$50,000 or more;
    (3) Mexico, and the anticipated value of the acquisition is 
$54,372 or more; or
    (4) Aruba, Austria, Belgium, Denmark, Finland, France, Germany, 
Greece, Hong Kong, Ireland, Italy, Japan, Korea, Liechtenstein, 
Luxembourg, Netherlands, Norway, Portugal, Singapore, Spain, Sweden, 
Switzerland, or the United Kingdom and the anticipated value of the 
acquisition is $177,000 or more.
    (b) Cooperation with Authorities. To enforce the laws 
prohibiting the manufacture or importation of products mined, 
produced, or manufactured by forced or indentured child labor, 
authorized officials may need to conduct investigations to determine 
whether forced or indentured child labor was used to mine, produce, 
or manufacture any product furnished under this contract. If the 
solicitation includes the provision 52.222-18, Certification 
Regarding Knowledge of Child Labor for Listed End Products, or the 
equivalent at 52.212-3(i), the Contractor agrees to cooperate fully 
with authorized officials of the contracting agency, the Department 
of the Treasury, or the Department of Justice by providing 
reasonable access to records, documents, persons, or premises upon 
reasonable request by the authorized officials.
    (c) Violations. The Government may impose remedies set forth in 
paragraph (d) for the following violations:
    (1) The Contractor has submitted a false certification regarding 
knowledge of the use of forced or indentured child labor for listed 
end products.
    (2) The Contractor has failed to cooperate, if required, in 
accordance with paragraph (b) of this clause, with an investigation 
of the use of forced or indentured child labor by an Inspector 
General, Attorney General, or the Secretary of the Treasury.
    (3) The Contractor uses forced or indentured child labor in its 
mining, production, or manufacturing processes.
    (4) The Contractor has furnished under the contract end products 
or components that have been mined, produced, or manufactured wholly 
or in part by forced or indentured child labor. (The Government will 
not pursue remedies at paragraph (d)(2) or paragraph (d)(3) of this 
clause unless sufficient evidence indicates that the Contractor knew 
of the violation.)
    (d) Remedies. (1) The Contracting Officer may terminate the 
contract.
    (2) The suspending official may suspend the Contractor in 
accordance with procedures in FAR Subpart 9.4.
    (3) The debarring official may debar the Contractor for a period 
not to exceed 3 years in accordance with the procedures in FAR 
Subpart 9.4.
(End of clause)

[FR Doc. 01-1503 Filed 1-17-01; 8:45 am]
BILLING CODE 6820-EP-P