74554 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 2014–0052, Sequence No. 

7] 

Federal Acquisition Regulation; 

Federal Acquisition Circular 2005–79; 

Small Entity Compliance Guide 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Small Entity Compliance Guide. 

SUMMARY: This document is issued 

under the joint authority of DOD, GSA, 

and NASA. This Small Entity 

Compliance Guide has been prepared in 

accordance with section 212 of the 

Small Business Regulatory Enforcement 

Fairness Act of 1996. It consists of a 

summary of the rules appearing in 

Federal Acquisition Circular (FAC) 

2005–79, which amends the Federal 

Acquisition Regulation (FAR). An 

asterisk (*) next to a rule indicates that 

a regulatory flexibility analysis has been 

prepared. Interested parties may obtain 

further information regarding these 

rules by referring to FAC 2005–79, 

which precedes this document. These 

documents are also available via the 

Internet at http://www.regulations.gov. 

DATES: December 15, 2014. 

FOR FURTHER INFORMATION CONTACT: For 

clarification of content, contact the 

analyst whose name appears in the table 

below. Please cite FAC 2005–79 and the 

FAR case number. For information 

pertaining to status or publication 

schedules, contact the Regulatory 

Secretariat at 202–501–4755. 

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. 

[FR Doc. 2014–29148 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 9 and 52 

[FAC 2005–79; FAR Case 2014–017; Item 

II; Docket No. 2014–0017, Sequence No. 1] 

RIN 9000–AM70 

Federal Acquisition Regulation; 

Prohibition on Contracting with 

Inverted Domestic Corporations 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Interim rule. 

SUMMARY: DoD, GSA, and NASA are 

issuing an interim rule amending the 

provisions of the Federal Acquisition 

Regulation (FAR) that address the 

continuing Governmentwide statutory 

prohibition on the use of appropriated 

(or otherwise made available) funds for 

contracts with any foreign incorporated 

entity that is an inverted domestic 

corporation or any subsidiary of such 

entity. 

DATES: Effective: December 15, 2014. 

Comment Date: Interested parties 

should submit written comments to the 

Regulatory Secretariat on or before 

February 13, 2015 to be considered in 

the formation of the final rule. 

ADDRESSES: Submit comments 

identified by FAC 2005–79, FAR Case 


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