Source: https://www.federalregister.gov/articles/2012/12/21/2012-30592/federal-acquisition-regulation-nondisplacement-of-qualified-workers-under-service-contracts
Timestamp: 2015-02-27 00:30:43
Document Index: 279684749

Matched Legal Cases: ['art 9', 'art 22', 'art 22', 'art 541', 'arts 1', 'arts 1', 'ART 2', 'ART 22', 'art 22', 'art 22']

Federal Register | Federal Acquisition Regulation; Nondisplacement of Qualified Workers Under Service Contracts
-75780 (15 pages)
Shorter URL: https://federalregister.gov/a/2012-30592 Related Topics
Federal Acquisition Regulation; Nondisplacement of Qualified Workers Under Service Contracts; FAR Case 2011-028
DoD, GSA, and NASA published a proposed rule at 77 FR 26232 on May 3, 2012, to implement Executive Order (E.O.) 13495, Nondisplacement of Qualified Workers Under Service Contracts, dated January 30, 2009, published at 74 FR 6103 on February 4, 2009, and the Department of Labor (DOL) regulations at 29 CFR part 9. This final rule amends the FAR to add subpart 22.12 and a new clause at FAR 52.222-17, providing the policy of the Federal Government, as expressed in E.O. 13495, to require service contractors and their subcontractors under successor contracts to offer employees of the predecessor contractor and its subcontractors a right of first refusal of employment for positions for which they are qualified. Twenty seven respondents submitted comments on the proposed rule. On January 4, 2011, Public Law 111-350 enacted a new codified version of Title 41 United States Code (U.S.C.), entitled “Public Contracts.” The CAAC and DARC published a proposed rule on September 18, 2012, at 77 FR 57950 to update all references to Title 41 in the FAR to conform to the positive law codification. As part of these changes, the proposed rule would replace the term “Service Contract Act” with the term “Service Contract Labor Standards statute” (SCLS statute). If this change is adopted through that rulemaking, similar conforming changes in the use of terms will be made in the text to this final rule.
Comments: A respondent asked whether this rule will apply only to contracts covered by the SCA and whether professional services will be exempted. Another respondent stated that the proposed rule posed serious issues in contracting for information technology functions because of the need to be responsive to rapid changes in technology and opportunities for cost savings. A third respondent asked whether the rule would apply to competed task orders or to service contracts performed outside the United States. Response: There appears to be a broad misunderstanding of the types of work that are exempt from the SCA. Professional services (including professional services for information technology) are exempt from applicability of FAR subpart 22.12 for the reasons that follow. Section 2 of E.O. 13495 defines “employee” to mean a “service employee” as defined in the SCA. The definition of “service employee” at 41 U.S.C. 6701(3) provides, in part, that it “does not include an individual employed in a bona fide executive, administrative, or professional capacity, as those terms are defined in part 541 of title 29, Code of Federal Regulations.” The regulation referenced, 29 CFR 541, entitled “Defining and Delimiting the Exemptions for Executive Administrative, Professional, Computer, and Outside Sales Employees,” refers to “exempt professionals” as those whose primary duty is the “performance of work requiring knowledge of an advanced type in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction or the performance of work requiring invention, imagination, originality or talent in a recognized field of artistic or creative endeavor” (29 CFR 541.3(b)(4)).
List of Subjects in 48 CFR Parts 1, 2, 22, and 52 Back to Top
1.The authority citation for 48 CFR parts 1, 2, 22, and 52 is revised to read as follows: Authority:
2.Amend section 1.106, in the table following the introductory text, by adding in sequence, FAR segment “22.12” and its corresponding OMB Control Numbers “1235-0007 and 1235-0025”, and FAR Segment “52.222-17” and its OMB Control Numbers “1235-0007 and 1235-0025”. PART 2—DEFINITIONS OF WORDS AND TERMS Back to Top
3.Amend section 2.101, in paragraph (b), in the definition of “United States” by redesignating paragraphs (4) through (10) as paragraphs (5) through (11), respectively; and adding a new paragraph (4) to read as follows: 2.101 Definitions.
PART 22—APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS Back to Top
4.Amend section 22.001 by adding, in alphabetical order, the definitions “Service contract” and “Service employees” to read as follows: 22.001 Definitions.
22.1001 [Amended]
5.Amend section 22.1001 by removing the definitions “Service contract” and “Service employee”. 6.Revise section 22.1103 to read as follows: 22.1103 Policy, procedures, and solicitation provision.
7.Add Subpart 22.12 to read as follows: Sec.
22.1203-4 Method of job offer.
22.1203-5 Exceptions.
22.1203-6 Reduced staffing.
22.1204 Certified service employee lists.
Subpart 22.12—Nondisplacement of Qualified Workers Under Service Contracts Back to Top
8.Amend section 52.212-5 by— (a) Revising the date of the clause;
Contract Terms and Conditions Required To Implement Statutes of Executive Orders—Commercial Items (JAN 2013) Back to Top
9.Add section 52.222-17 to read as follows: 52.222-17 Nondisplacement of Qualified Workers.
Nondisplacement of Qualified Workers (JAN 2013) Back to Top