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 Office of Personnel Management 5 CFR Part 532
RIN 3206-AK94
 AGENCY: Office of Personnel Management.
 ACTION: Proposed rule with request for comments.
 SUMMARY: The Office of Personnel Management is issuing a proposed rule that would replace the Standard Industrial Classification codes currently used in Federal Wage System (FWS) regulations with the more recent North American Industry Classification System (NAICS) codes, published by the Office of Management and Budget. The purpose of this change is to update the FWS wage survey industry regulations by adopting the new NAICS system.
 DATES: We must receive comments on or before December 16, 2005.
 ADDRESSES: Send or deliver comments to Donald J. Winstead, Deputy Associate Director for Pay and Performance Policy, Strategic Human Resources Policy Division, Office of Personnel Management, Room 7H31, 1900 E Street, NW., Washington, DC 20415-8200; e-mail 
                        *pay-performance-policy@opm.gov;*
                         or FAX: (202) 606-4264.
 FOR FURTHER INFORMATION CONTACT: Madeline Gonzalez, (202) 606-2838; e-mail 
                        *pay-performance-policy@opm.gov;*
                         or FAX: (202) 606-4264.


SUPPLEMENTARY INFORMATION: The goal of the Federal Wage System (FWS) is to pay blue-collar Federal employees according to local prevailing rates. To determine local prevailing rates, the Department of Defense, the lead agency for all regular FWS wage surveys, collects wage data for a prescribed list of industries in each FWS wage area annually. The Office of Personnel Management (OPM) is responsible for prescribing the required industries to be surveyed and the conditions under which required industrial coverage may be augmented for particular surveys. Under the current regulations, the industries surveyed are defined under the Standard Industrial Classification (SIC) system. The Office of Management and Budget developed the North American Industry Classification System (NAICS) to replace the SIC system. NAICS was developed jointly by the United States, Canada, and Mexico to provide comparability in statistics about business activity across North America. NAICS groups establishments into industries based on the activities in which they are primarily engaged. It is a comprehensive system covering the entire field of economic activities. NAICS groups the economy into 20 broad sectors and uses a 6-digit coding system to identify particular industries. The first two digits of the code designate the sector, the third digit designates the subsector, the fourth digit designates the industry group, the fifth digit designates the NAICS industry, and the sixth digit designates the national industry. Because NAICS is now the official industry classification system used in the United States, the Federal Prevailing Rate Advisory Committee (FPRAC), the national labor-management committee responsible for advising OPM on matters concerning the pay of FWS employees, established a Wage Survey Methodology Work Group (Work Group) to study the desirability and feasibility of replacing the SIC codes currently used in FWS regulations with NAICS codes and the effect this change would have on industry coverage for FWS wage surveys. The following sections of title 5, Code of Federal Regulations, list the industries included in the FWS wage surveys by SIC codes: Section 532.213 Industries included in regular appropriated fund wage surveys. Section 532.221 Industries included in regular nonappropriated fund surveys. Section 532.267 Special wage schedules for aircraft, electronic, and optical instrument overhaul and repair positions in the Puerto Rico wage area. Section 532.279 Special wage schedules for printing positions. Section 532.285 Special wage schedules for supervisors of negotiated rate Bureau of Reclamation employees. Section 532.313 Private sector industries. The Work Group recommended to FPRAC that OPM replace all SIC codes in the FWS regulations with the most closely corresponding NAICS codes. In effect, this would update the FWS wage survey industry regulations by adopting the NAICS system, while making as few changes as possible in the types of industrial establishments that are already included in FWS wage surveys under the SIC system. FPRAC agreed with the Work Group's recommendation, and OPM concurs with FPRAC's recommendation. Regulatory Flexibility Act I certify that these regulations would not have a significant economic impact on a substantial number of small entities because they would affect only Federal agencies and employees. E.O. 12866, Regulatory Review The Office of Management and Budget has reviewed this proposed rule in accordance with Executive Order 12866. List of Subjects in 5 CFR Part 532 Administrative practice and procedure
Freedom of information
Government employees
Reporting and recordkeeping requirements
Wages
 Office of Personnel Management. Linda M. Springer, Director.
 Accordingly, the Office of Personnel Management proposes to amend 5 CFR part 532 as follows: PART 532—PREVAILING RATE SYSTEMS 1. The authority citation for part 532 continues to read as follows: Authority:
                        5 U.S.C. 5343, 5346; § 532.707 also issued under 5 U.S.C. 552. Subpart B—Prevailing Rate Determinations
 2. In § 532.213, revise paragraph (a) to read as follows: § 532.213
  (a) The lead agency must include the industries in the following North 
                            ( print page 69468)
                            American Industry Classification System (NAICS) codes in all regular appropriated fund wage surveys: Manufacturing
NAICS 311 through 339 (except 323)
All manufacturing classes except printing and related support activities (NAICS 323).Transportation, Communications, Electric, Gas, and Sanitary Services
NAICS 221 
                                     NAICS 481  
                                     NAICS 482  
                                     NAICS 484
Utilities. 
                                     Air transportation.  
                                     Rail transportation.  
                                     Truck transportation.NAICS 485 (except 4853)
Transit and ground passenger transportation except taxi and limousine service (NAICS 4853).NAICS 487 (except 4872)
Scenic and sightseeing transportation except scenic and sightseeing transportation, water (NAICS 4872).NAICS 488 (except 4883 and 4884)
Support activities for transportation except support activities for water transportation (NAICS 4853) and support activities for road transportation (NAICS 4854).NAICS 492 
                                     NAICS 493  
                                     NAICS 515  
                                     NAICS 517  
                                     NAICS 5621  
                                     NAICS 5622
Couriers and messengers. 
                                     Warehousing and storage.  
                                     Broadcasting (except Internet).  
                                     Telecommunications.  
                                     Waste collection.  
                                     Waste Treatment and Disposal.Wholesale Trade
NAICS 423 
                                     NAICS 424
Merchant wholesalers—durable goods. 
                                     Merchant wholesalers—nondurable goods.
 
 3. In § 532.221, revise paragraph (a) to read as follows:
 § 532.221
  (a) The lead agency must include the following North American Industry Classification System (NAICS) codes in all regular nonappropriated fund wage surveys: NAICS
TitleWholesale Trade:42312
Motor vehicle supplies and new parts.4232
Furniture and home furnishing.42362
Electrical and electronic appliance, television, and radio set.42369
Other electronic parts and equipment.42371
Hardware.42391
Sporting and recreational goods and supplies.42399
Other miscellaneous durable goods.4241
Paper and paper product.42421
Drugs and druggists' sundries.4243
Apparel, piece goods, and notions.42445
Confectionery.4247
Petroleum and petroleum products.4249
Miscellaneous nondurable goods.Retail:44132
Tire dealers.44311
Appliance, television, and other electronic stores.44411
Home centers.44611
Pharmacies and drug stores.4471
Gasoline stations.44814
Family clothing stores.4521
Department stores.45299
All other general merchandise stores.45321
Office supplies and stationery stores.4542
Vending machine operators.Arts, Entertainment, and Recreation:71391
Golf courses and country clubs.71395
Bowling centers.Accommodations and Food Services:72111
Hotels (except casino hotels) and motels.7221
Full-service restaurants.7222
Limited-service eating places.7224
Drinking places (alcoholic beverages).
 
 4. In § 532.267, revise paragraph (c)(1) to read as follows:
 § 532.267
  
 (c) * * * (1) Surveys must, at a minimum, include the air transportation and electronics industries in the following 
                            ( print page 69469)
                            North American Industry Classification System (NAICS) codes: NAICS
Title3341
Computer and peripheral equipment manufacturing.33422
Radio and television broadcasting and wireless communications equipment manufacturing.33429
Other communications equipment manufacturing.3343
Audio and video equipment manufacturing.334412
Bare printed circuit board manufacturing.334413
Semiconductor and related device manufacturing.334418
Printed circuit assembly (electronic assembly) manufacturing.334419
Other electronic component manufacturing.334511
Search, detection, navigation, guidance, aeronautical, and nautical system and instrument manufacturing.334613
Magnetic and optical recording media manufacturing.42342
Office equipment merchant wholesalers.42343
Computer and computer peripheral equipment and software merchant wholesalers.4811
Scheduled air transportation.4812
Nonscheduled air transportation.4879
Scenic and sightseeing transportation, other.4881
Support activities for air transportation.4921
Couriers.56172
Janitorial services.62191
Ambulance services.81142
Reupholstery and furniture repair.
 
 5. In § 532.279, revise paragraphs (c), introductory text, and (c)(1) to read as follows:
 § 532.279
  
 (c) The lead agency must establish survey specifications for the printing survey as follows: (1) The lead agency must include North American Industry Classification System (NAICS) codes 323110 and 323114 in the printing survey and may add other NAICS codes in subsector 323 to the survey based on its survey experience. 
 6. In § 532.285, revise paragraph (c)(1) to read as follows:
 § 532.285
  
 (c) * * * (1) Based on Bureau of Reclamation activities and types of supervisory positions in the special wage area, the Bureau of Reclamation must survey private industry companies, with no minimum employment size requirement for establishments, in the following North American Industry Classification System code subsectors: Subsector
Industry211
Oil and gas extraction.212
Mining (except oil and gas).213
Support activities for mining.221
Utilities.333
Machinery manufacturing.334
Computer and electronic product manufacturing.335
Electrical equipment, appliance, and component manufacturing.484
Truck transportation.492
Couriers and messengers.493
Warehousing and storage.515
Broadcasting (except Internet).517
Telecommunications.562
Waste management and remediation services.811
Repair and maintenance.
 
 7. Revise § 532.313 to read as follows:
 § 532.313
  (a) For appropriated fund surveys, the lead agency must use the private sector industries in the following North American Industry Classification System (NAICS) codes when it makes its wage schedule determinations for each specialized Federal industry: **Aircraft**NAICS 332912
Fluid power valve and hose fitting manufacturing.NAICS 336411
Aircraft manufacturing.NAICS 336412
Aircraft engine and engine parts manufacturing.NAICS 336413
Other aircraft part and auxiliary equipment manufacturing.NAICS 336415
Guided missile and space vehicle propulsion unit and propulsion unit parts manufacturing.NAICS 336419
Other guided missile and space vehicle parts and auxiliary equipment manufacturing.( print page 69470)NAICS 4811
Scheduled air transportation.NAICS 4812
Nonscheduled air transportation.NAICS 4879
Scenic and sightseeing transportation, other.NAICS 4881
Support activities for air transportation.NAICS 4921
Couriers.NAICS 54171
Research and development in the physical, engineering, and life sciences.NAICS 56172
Janitorial services.NAICS 62191
Ambulance services.NAICS 81142
Reupholstery and furniture repair.**Ammunition**NAICS 32592
Explosives manufacturing.NAICS 332992
Small arms ammunition manufacturing.NAICS 332993
Ammunition (except small arms) manufacturing.**Artillery and combat vehicles**NAICS 2211
Electric power generation, transmission, and distribution.NAICS 2212
Natural gas distribution.NAICS 32732
Ready-mix concrete manufacturing.NAICS 332212
Hand and edge tool manufacturing.NAICS 332323
Ornamental and architectural metal work manufacturing.NAICS 332439
Other metal container manufacturing.NAICS 332995
Other ordnance and accessories manufacturing.NAICS 332999
All other miscellaneous fabricated metal product manufacturing.NAICS 33311
Agricultural implement manufacturing.NAICS 33312
Construction machinery manufacturing.NAICS 333611
Turbine and turbine generator set unit manufacturing.NAICS 333618
Other engine equipment manufacturing.NAICS 333922
Conveyor and conveying equipment manufacturing.NAICS 333923
Overhead traveling crane, hoist, and monorail system manufacturing.NAICS 333924
Industrial truck, tractor, trailer, and stacker machinery manufacturing.NAICS 3361
Motor vehicle manufacturing.NAICS 336211
Motor vehicle body manufacturing.NAICS 336212
Truck trailer manufacturing.NAICS 336312
Gasoline engine and engine parts manufacturing.NAICS 336322
Other motor vehicle electrical and electronic equipment manufacturing.NAICS 33633
Motor vehicle steering and suspension components (except spring) manufacturing.NAICS 33634
Motor vehicle brake system manufacturing.NAICS 33635
Motor vehicle transmission and power train parts manufacturing.NAICS 336399
All other motor vehicle parts manufacturing.NAICS 33651
Railroad rolling stock manufacturing.NAICS 336992
Military armored vehicle, tank, and tank component manufacturing.NAICS 4231
Motor vehicle and motor vehicle parts and supplies merchant wholesalers.NAICS 42381
Construction and mining (except oil well) machinery and equipment merchant wholesalers.NAICS 42382
Farm and garden machinery and equipment merchant wholesalers.NAICS 4413
Automotive parts, accessories, and tire stores.NAICS 44421
Outdoor power equipment stores.NAICS 484
Truck transportation.NAICS 4862
Pipeline transportation of natural gas.NAICS 492
Couriers and messengers.NAICS 5171
Wired telecommunications carriers.NAICS 5172
Wireless telecommunications carriers (except satellite).NAICS 5173
Telecommunications resellers.NAICS 5621
Waste collection.NAICS 81299
All other personal services.**Communications**NAICS 33422
Radio and television broadcasting and wireless communications equipment manufacturing.NAICS 33429
Other communications equipment manufacturing.NAICS 334511
Search, detection, navigation, guidance, aeronautical and nautical system and instrument manufacturing.NAICS 334514
Totalizing fluid meter and counting device manufacturing.NAICS 334515
Instrument manufacturing for measuring and testing electricity and electrical signals.NAICS 335311
Power, distribution, and specialty transformer manufacturing.NAICS 48531
Taxi service.NAICS 5151
Radio and television broadcasting.NAICS 5152
Cable and other subscription carriers.NAICS 5171
Wired telecommunications carriers.NAICS 5172
Wireless telecommunications carriers (except satellite).NAICS 5173
Telecommunications resellers.NAICS 5174
Satellite telecommunications.NAICS 5179
Other telecommunications.( print page 69471)**Electronics**NAICS 3341
Computer and peripheral equipment manufacturing.NAICS 33422
Radio and television broadcasting and wireless communications equipment manufacturing.NAICS 33429
Other communications equipment manufacturing.NAICS 33431
Audio and video equipment manufacturing.NAICS 334412
Bare printed circuit board manufacturing.NAICS 334413
Semiconductor and related device manufacturing.NAICS 334414
Electronic capacitor manufacturing.NAICS 334415
Electronic resistor manufacturing.NAICS 334416
Electronic coil, transformer, and other inductor manufacturing.NAICS 334417
Electronic connector manufacturing.NAICS 334418
Printed circuit assembly (electronic assembly) manufacturing.NAICS 334419
Other electronic component manufacturing.NAICS 334511
Search, detection, navigation, guidance, aeronautical and nautical system and instrument manufacturing.NAICS 334613
Magnetic and optical recording media manufacturing.NAICS 42342
Office equipment merchant wholesalers.NAICS 42343
Computer and computer peripheral equipment and software merchant wholesalers.**Guided missiles**NAICS 332912
Fluid power valve and hose fitting manufacturing.NAICS 3341
Computer and peripheral equipment manufacturing.NAICS 33422
Radio and television broadcasting and wireless communications equipment manufacturing.NAICS 33429
Other communications equipment manufacturing.NAICS 334418
Printed circuit assembly (electronic assembly) manufacturing.NAICS 334511
Search, detection, navigation, guidance, aeronautical and nautical system and instrument manufacturing.NAICS 334613
Magnetic and optical recording media manufacturing.NAICS 3364
Aerospace product and parts manufacturing.NAICS 54131
Architectural services.NAICS 54133
Engineering services.NAICS 54136
Geophysical surveying and mapping services.NAICS 54137
Surveying and mapping (except geophysical) services.NAICS 54171
Research and development in the physical, engineering, and life sciences.**Heavy duty equipment**NAICS 332439
Other metal container manufacturing.NAICS 332999
All other miscellaneous fabricated metal product manufacturing.NAICS 33312
Construction machinery manufacturing.NAICS 333923
Overhead traveling crane, hoist, and monorail system manufacturing.NAICS 333924
Industrial truck, tractor, trailer, and stacker machinery manufacturing.NAICS 33651
Railroad rolling stock manufacturing.NAICS 42381
Construction and mining (except oil well) machinery and equipment wholesalers.**Shipbuilding**NAICS 336611
Ship building and repairing.NAICS 48839
Other support activities for water transportation.**Sighting and fire control equipment**NAICS 333314
Optical instrument and lens manufacturing.NAICS 3341
Computer and peripheral equipment manufacturing.NAICS 33422
Radio and television broadcasting and wireless communications equipment manufacturing.NAICS 33429
Other communications equipment manufacturing.NAICS 334418
Printed circuit assembly (electronic assembly) manufacturing.NAICS 334511
Search, detection, navigation, guidance, aeronautical and nautical system and instrument manufacturing.NAICS 334613
Magnetic and optical recording media manufacturing.**Small arms**NAICS 332994
Small arms manufacturing.
 
 
 (b) The lead agency must limit special job coverage for industries in NAICS codes 2211, 2212, 32732, 484, 4862, 5621, 492, 5171, 5172, and 5173 to automotive mechanic, diesel engine mechanic, and heavy mobile equipment mechanic. (c) For nonappropriated fund wage surveys, the lead agency must use NAICS codes 71111, 7221, 7222, 72231, 72232, and 7224 (eating and drinking places) when it determines a wage schedule for a specialized industry.


[FR Doc. 05-22742 Filed 11-15-05; 8:45 am] BILLING CODE 6325-39-P