74544 Federal Register / Vol. 79, No. 240 / Monday, December 15, 2014 / Rules and Regulations 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Chapter 1 

[Docket No. FAR 2014–0051, Sequence No. 

7] 

Federal Acquisition Regulation; 

Federal Acquisition Circular 2005–79; 

Introduction 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Summary presentation of 

interim rules. 

SUMMARY: This document summarizes 

the Federal Acquisition Regulation 

(FAR) rules agreed to by the Civilian 

Agency Acquisition Council and the 

Defense Acquisition Regulations 

Council (Councils) in this Federal 

Acquisition Circular (FAC) 2005–79. A 

companion document, the Small Entity 

Compliance Guide (SECG), follows this 

FAC. The FAC, including the SECG, is 

available via the Internet at http://

www.regulations.gov. 

DATES: For effective dates and comment 

dates see separate documents, which 

follow. 

FOR FURTHER INFORMATION CONTACT: The 

analyst whose name appears in the table 

below in relation to the FAR case. 

Please cite FAC 2005–79 and the 

specific FAR case number. For 

information pertaining to status or 

publication schedules, contact the 

Regulatory Secretariat at 202–501–4755. 

RULES LISTED IN FAC 2005–79 

Item Subject FAR case Analyst 

I ................... Establishing a Minimum Wage for Contractors ....................................................................................... 2015–003 Loeb. 

II .................. Prohibition on Contracting with Inverted Domestic Corporations ............................................................ 2014–017 Jackson. 

SUPPLEMENTARY INFORMATION: 

Summaries for each FAR rule follow. 

For the actual revisions and/or 

amendments made by these rules, refer 

to the specific item numbers and 

subjects set forth in the documents 

following these item summaries. FAC 

2005–79 amends the FAR as specified 

below: 

Item I—Establishing a Minimum Wage 

for Contractors (FAR Case 2015–003) 

DoD, GSA, and NASA are issuing an 

interim rule amending the FAR to 

implement Executive Order (E.O.) 13658 

and a Department of Labor (DOL) final 

rule issued on October 7, 2014, both 

entitled Establishing a Minimum Wage 

for Contractors. The interim rule 

establishes a new minimum wage for 

covered service and construction 

contracts of $10.10 per hour, which will 

be adjusted annually, by the DOL. 

Contracting officers will include a 

clause in covered contracts and, if 

requested by the contractor and if 

appropriate, will adjust contract prices 

for the annual adjustments in the E.O. 

minimum wage. Contractors shall 

consider any subcontractor request, 

including requests by small businesses 

subcontractors, for a subcontract price 

adjustment due to the annual 

adjustment in the E.O. minimum wage. 

Item II—Prohibition on Contracting 

With Inverted Domestic Corporations 

(FAR Case 2014–017) 

This interim rule amends the 

provisions of the FAR that address the 

continuing Governmentwide statutory 

prohibition (in effect since fiscal year 

(FY) 2008) on the award of contracts 

using appropriated funds to any foreign 

incorporated entity that is an inverted 

domestic corporation (under section 835 

of the Homeland Security Act of 2002, 

codified at 6 U.S.C. 395) or to any 

subsidiary of such entity. In particular, 

this rule amends FAR 9.108 to revise the 

FAR coverage, including the language of 

solicitation provisions and contract 

clauses, so that it more clearly reflects 

the ongoing, continuing nature of the 

statutory prohibition on contracting 

with inverted domestic corporations 

and their subsidiaries. 

This rule is not expected to have an 

effect on small business because this 

rule will only impact an offeror that is 

a foreign incorporated entity that is 

treated as an inverted domestic 

corporation and wants to do business 

with the Government. Small business 

concerns are unlikely to have been 

incorporated in the United States and 

then reincorporated in a tax haven. 

Dated: December 5, 2014. 

William Clark, 

Acting Director, Office of Government-wide 

Acquisition Policy, Office of Acquisition 

Policy, Office of Government-wide Policy. 

Federal Acquisition Circular (FAC) 

2005–79 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. 

Unless otherwise specified, all 

Federal Acquisition Regulation (FAR) 

and other directive material contained 

in FAC 2005–79 is effective December 

15, 2014. 

Dated: December 4, 2014. 

Richard Ginman, 

Director, Defense Procurement and 

Acquisition Policy. 

Dated: December 5, 2014. 

Jeffrey A. Koses, 

Senior Procurement Executive/Deputy CAO, 

Office of Acquisition Policy, U.S. General 

Services Administration. 

Dated: December 4, 2014. 

Ronald A. Poussard, 

Director, Contract and Grant Policy Division, 

Office of Procurement, National Aeronautics 

and Space Administration. 

[FR Doc. 2014–29139 Filed 12–12–14; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 1, 22, and 52 

[FAC 2005–79; FAR Case 2015–003; Item 

I; Docket No. 2014–0050; Sequence No. 1] 

RIN 9000–AM82 

Federal Acquisition Regulation; 

Establishing a Minimum Wage for 

Contractors 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Interim rule. 


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