Federal Acquisition Regulation; Management and Oversight of the Acquisition of Services, 4992-4993 [2015-01525]

Download as PDF 4992 Federal Register / Vol. 80, No. 19 / Thursday, January 29, 2015 / Rules and Regulations the workplace or on the Web site is impracticable, the Contractor shall provide the relevant contents of the compliance plan to each worker in writing. (ii) The Contractor shall provide the compliance plan to the Contracting Officer upon request. (5) Certification. Annually after receiving an award, the Contractor shall submit a certification to the Contracting Officer that— (i) It has implemented a compliance plan to prevent any prohibited activities identified at paragraph (b) of this clause and to monitor, detect, and terminate any agent, subcontract or subcontractor employee engaging in prohibited activities; and (ii) After having conducted due diligence, either— (A) To the best of the Contractor’s knowledge and belief, neither it nor any of its agents, subcontractors, or their agents is engaged in any such activities; or (B) If abuses relating to any of the prohibited activities identified in paragraph (b) of this clause have been found, the Contractor or subcontractor has taken the appropriate remedial and referral actions. (i) Subcontracts. (1) The Contractor shall include the substance of this clause, including this paragraph (i), in all subcontracts and in all contracts with agents. The requirements in paragraph (h) of this clause apply only to any portion of the subcontract that— (A) Is for supplies, other than commercially available off-the-shelf items, acquired outside the United States, or services to be performed outside the United States; and (B) Has an estimated value that exceeds $500,000. (2) If any subcontractor is required by this clause to submit a certification, the Contractor shall require submission prior to the award of the subcontract and annually thereafter. The certification shall cover the items in paragraph (h)(5) of this clause. (1) Is for supplies, other than commercially available off-the-shelf items, to be acquired outside the United States, or services to be performed outside the United States; and (2) Has an estimated value that exceeds $500,000. (c) The certification shall state that— (1) It has implemented a compliance plan to prevent any prohibited activities identified in paragraph (b) of the clause at 52.222–50, Combating Trafficking in Persons, and to monitor, detect, and terminate the contract with a subcontractor engaging in prohibited activities identified at paragraph (b) of the clause at 52.222–50, Combating Trafficking in Persons; and (2) After having conducted due diligence, either— (i) To the best of the Offeror’s knowledge and belief, neither it nor any of its proposed agents, subcontractors, or their agents is engaged in any such activities; or (ii) If abuses relating to any of the prohibited activities identified in 52.222– 50(b) have been found, the Offeror or proposed subcontractor has taken the appropriate remedial and referral actions. (End of clause) * Alternate I (March 2, 2015). As prescribed in 22.1705(a)(2), substitute the following paragraph in place of paragraph (c)(1)(i) of the basic clause: (i)(A) The United States Government’s policy prohibiting trafficking in persons described in paragraph (b) of this clause; and * * * * * 18. Add section 52.222–56 to read as follows: (End of provision) ■ 19. Amend section 52.244–6 by revising the date of the clause and paragraph (c)(1)(ix) to read as follows: 52.244–6 Items. * * Subcontracts for Commercial * * * Subcontracts for Commercial Items (March 2, 2015) * * * * * (c)(1) * * * (i) * * * (ix)(A) 52.222–50, Combating Trafficking in Persons (March 2, 2015) (22 U.S.C. chapter 78 and E.O. 13627). (B) Alternate I (March 2, 2015) of 52.222– 50 (22 U.S.C. chapter 78 and E.O. 13627). * * * * [FR Doc. 2015–01524 Filed 1–28–15; 8:45 am] BILLING CODE 6820–EP–P DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION ■ 52.222–56 Certification Regarding Trafficking in Persons Compliance Plan. tkelley on DSK3SPTVN1PROD with RULES2 As prescribed in 22.1705(b), insert the following provision: Certification Regarding Trafficking in Persons Compliance Plan (March 2, 2015) (a) The term ‘‘commercially available offthe-shelf (COTS) item,’’ is defined in the clause of this solicitation entitled ‘‘Combating Trafficking in Persons’’ (FAR clause 52.222–50). (b) The apparent successful Offeror shall submit, prior to award, a certification, as specified in paragraph (c) of this provision, for the portion (if any) of the contract that— VerDate Sep<11>2014 18:45 Jan 28, 2015 Jkt 235001 NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Parts 37 and 52 [FAC 2005–80; FAR Case 2014–008; Item II; Docket No. 2014–0008; Sequence No. 1] RIN 9000–AM84 Federal Acquisition Regulation; Management and Oversight of the Acquisition of Services Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). AGENCY: PO 00000 Frm 00028 Fmt 4701 Sfmt 4700 ACTION: Final rule. DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation (FAR) to implement a recommendation to strengthen guidance on service acquisitions on uncompensated overtime. SUMMARY: DATES: Effective: March 2, 2015. Mr. Michael O. Jackson, Procurement Analyst, at 202–208–4949 for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division at 202–501–4755. Please cite FAC 2005–80, FAR Case 2014–008. SUPPLEMENTARY INFORMATION: FOR FURTHER INFORMATION CONTACT: I. Background Section 865 of the Ike Skelton National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2011 (Pub. L. 111–383) directed the Secretary of Defense to submit, in consultation with the Office of Federal Procurement Policy (OFPP) and all other relevant Federal agencies, a review of the Federal Acquisition Regulation (FAR) and Defense Federal Acquisition Regulations Supplement (DFARS), to ensure that they have appropriate guidance for service acquisitions. As a result, the regulatory drafting teams for the FAR and DFARS reviewed current regulations related to services and considered the extent to which improvements might be needed. In November 2011, DoD issued a report entitled DoD Report to Congress on Federal Acquisition Regulation (FAR) and Defense Federal Acquisition Regulations Supplement (DFARS) Review Regarding Services Acquisition. This Report to Congress includes a series of recommendations on issues for strengthening existing guidance on services acquisition through addition, clarification, or expansion. II. Analysis and Discussion This FAR case implements a recommendation to create a definition of uncompensated overtime. Accordingly, the existing definitions of ‘‘uncompensated overtime’’ and ‘‘uncompensated overtime rate’’ at FAR 52.237–10(a) have been incorporated at FAR 37.101, with the defined term ‘‘uncompensated overtime rate’’ changing to ‘‘adjusted hourly rate (including uncompensated overtime).’’ Additionally, the definition of the new term ‘‘adjusted hourly rate (including uncompensated overtime)’’ clarifies that the proposed hours per week include E:\FR\FM\29JAR2.SGM 29JAR2 Federal Register / Vol. 80, No. 19 / Thursday, January 29, 2015 / Rules and Regulations uncompensated overtime hours over and above the standard 40-hour work week. The clause at FAR 52.237–10 is further amended to clarify the application of the adjusted hourly rate, and categorization of proposed hours subject to the adjusted hourly rate. Finally, a change is made at FAR 37.115–2 to reflect the change made in the clause at FAR 52.237–10(b). VI. Paperwork Reduction Act The rule does not contain any information collection requirements that require the approval of the Office of Management and Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35). III. Publication of This Final Rule for Public Comment Is Not Required by Statute ‘‘Publication of proposed regulations’’, 41 U.S.C. 1707, is the statute which applies to the publication of the Federal Acquisition Regulation. Paragraph (a)(1) of the statute requires that a procurement policy, regulation, procedure or form (including an amendment or modification thereof) must be published for public comment if it relates to the expenditure of appropriated funds, and has either a significant effect beyond the internal operating procedures of the agency issuing the policy, regulation, procedure or form, or has a significant cost or administrative impact on contractors or offerors. This final rule is not required to be published for public comment, because it only clarifies policy that is already stated in the FAR. These proposed changes as described in section II of this preamble affect only the internal operating procedures of the Government. Dated: January 22, 2015. William Clark, Director, Office of Government-wide Acquisition Policy, Office of Acquisition Policy, Office of Government-wide Policy. tkelley on DSK3SPTVN1PROD with RULES2 IV. Executive Orders 12866 and 13563 Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is not a significant regulatory action and, therefore, was not subject to review under Section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804. V. Regulatory Flexibility Act The Regulatory Flexibility Act does not apply to this rule because this final rule does not constitute a significant FAR revision within the meaning of FAR 1.501–1 and 41 U.S.C. 1707 does not require publication for public comment. VerDate Sep<11>2014 18:45 Jan 28, 2015 Jkt 235001 List of Subjects in CFR Parts 37 and 52 Government procurement. Therefore, DoD, GSA, and NASA amend 48 CFR parts 37 and 52 as set forth below: ■ 1. The authority citation for 48 CFR parts 37 and 52 continues to read as follows: Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 U.S.C. 20113. PART 37—SERVICE CONTRACTING 2. Amend section 37.101 by adding, in alphabetical order, the definitions ‘‘Adjusted hourly rate (including uncompensated overtime)’’ and ‘‘Uncompensated overtime’’ to read as follows: ■ 37.101 Definitions. * * * * * Adjusted hourly rate (including uncompensated overtime) is the rate that results from multiplying the hourly rate for a 40-hour work week by 40, and then dividing by the proposed hours per week which includes uncompensated overtime hours over and above the standard 40-hour work week. For example, 45 hours proposed on a 40hour work week basis at $20 per hour would be converted to an uncompensated overtime rate of $17.78 per hour ($20.00 × 40/45 = $17.78). * * * * * Uncompensated overtime means the hours worked without additional compensation in excess of an average of 40 hours per week by direct charge employees who are exempt from the Fair Labor Standards Act. Compensated personal absences such as holidays, vacations, and sick leave shall be included in the normal work week for purposes of computing uncompensated overtime hours. ■ 3. Amend section 37.115–2 by adding paragraph (d) to read as follows: 37.115–2 (see definition at 37.101), rather than the hourly rate, shall be applied to all proposed hours, whether regular or overtime hours. PART 52—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 4. Amend section 52.237–10 by— a. Revising the date of the provision; ■ b. Removing from paragraph (a) the definition ‘‘Uncompensated overtime rate’’, and adding, in alphabetical order, the definition ‘‘Adjusted hourly rate (including uncompensated overtime)’’; and ■ c. Revising paragraph (b). The revisions and addition read as follows: ■ ■ 52.237–10 Identification of Uncompensated Overtime. * * * * * * Sfmt 9990 * * (b)(1) Whenever there is uncompensated overtime, the adjusted hourly rate (including uncompensated overtime), rather than the hourly rate, shall be applied to all proposed hours, whether regular or overtime hours. (2) All proposed labor hours subject to the adjusted hourly rate (including uncompensated overtime) shall be identified as either regular or overtime hours, by labor categories, and described at the same level of detail. This is applicable to all proposals whether the labor hours are at the prime or subcontract level. This includes uncompensated overtime hours that are in indirect cost pools for personnel whose regular hours are normally charged direct. * * * * * [FR Doc. 2015–01525 Filed 1–28–15; 8:45 am] BILLING CODE 6820–EP–P General policy. Fmt 4701 * (a) * * * Adjusted hourly rate (including uncompensated overtime) is the rate that results from multiplying the hourly rate for a 40-hour work week by 40, and then dividing by the proposed hours per week which includes uncompensated overtime hours over and above the standard 40-hour work week. For example, 45 hours proposed on a 40-hour work week basis at $20 per hour would be converted to an uncompensated overtime rate of $17.78 per hour ($20.00 × 40 divided by 45 = $17.78). * * * * (d) Whenever there is uncompensated overtime, the adjusted hourly rate (including uncompensated overtime) Frm 00029 * Identification of Uncompensated Overtime Mar 2015 * PO 00000 4993 E:\FR\FM\29JAR2.SGM 29JAR2

Agencies

[Federal Register Volume 80, Number 19 (Thursday, January 29, 2015)]
[Rules and Regulations]
[Pages 4992-4993]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-01525]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 37 and 52

[FAC 2005-80; FAR Case 2014-008; Item II; Docket No. 2014-0008; 
Sequence No. 1]
RIN 9000-AM84


Federal Acquisition Regulation; Management and Oversight of the 
Acquisition of Services

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

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the 
Federal Acquisition Regulation (FAR) to implement a recommendation to 
strengthen guidance on service acquisitions on uncompensated overtime.

DATES: Effective: March 2, 2015.

FOR FURTHER INFORMATION CONTACT: Mr. Michael O. Jackson, Procurement 
Analyst, at 202-208-4949 for clarification of content. For information 
pertaining to status or publication schedules, contact the Regulatory 
Secretariat Division at 202-501-4755. Please cite FAC 2005-80, FAR Case 
2014-008.

SUPPLEMENTARY INFORMATION: 

I. Background

    Section 865 of the Ike Skelton National Defense Authorization Act 
(NDAA) for Fiscal Year (FY) 2011 (Pub. L. 111-383) directed the 
Secretary of Defense to submit, in consultation with the Office of 
Federal Procurement Policy (OFPP) and all other relevant Federal 
agencies, a review of the Federal Acquisition Regulation (FAR) and 
Defense Federal Acquisition Regulations Supplement (DFARS), to ensure 
that they have appropriate guidance for service acquisitions. As a 
result, the regulatory drafting teams for the FAR and DFARS reviewed 
current regulations related to services and considered the extent to 
which improvements might be needed.
    In November 2011, DoD issued a report entitled DoD Report to 
Congress on Federal Acquisition Regulation (FAR) and Defense Federal 
Acquisition Regulations Supplement (DFARS) Review Regarding Services 
Acquisition. This Report to Congress includes a series of 
recommendations on issues for strengthening existing guidance on 
services acquisition through addition, clarification, or expansion.

II. Analysis and Discussion

    This FAR case implements a recommendation to create a definition of 
uncompensated overtime. Accordingly, the existing definitions of 
``uncompensated overtime'' and ``uncompensated overtime rate'' at FAR 
52.237-10(a) have been incorporated at FAR 37.101, with the defined 
term ``uncompensated overtime rate'' changing to ``adjusted hourly rate 
(including uncompensated overtime).'' Additionally, the definition of 
the new term ``adjusted hourly rate (including uncompensated 
overtime)'' clarifies that the proposed hours per week include

[[Page 4993]]

uncompensated overtime hours over and above the standard 40-hour work 
week. The clause at FAR 52.237-10 is further amended to clarify the 
application of the adjusted hourly rate, and categorization of proposed 
hours subject to the adjusted hourly rate. Finally, a change is made at 
FAR 37.115-2 to reflect the change made in the clause at FAR 52.237-
10(b).

III. Publication of This Final Rule for Public Comment Is Not Required 
by Statute

    ``Publication of proposed regulations'', 41 U.S.C. 1707, is the 
statute which applies to the publication of the Federal Acquisition 
Regulation. Paragraph (a)(1) of the statute requires that a procurement 
policy, regulation, procedure or form (including an amendment or 
modification thereof) must be published for public comment if it 
relates to the expenditure of appropriated funds, and has either a 
significant effect beyond the internal operating procedures of the 
agency issuing the policy, regulation, procedure or form, or has a 
significant cost or administrative impact on contractors or offerors. 
This final rule is not required to be published for public comment, 
because it only clarifies policy that is already stated in the FAR. 
These proposed changes as described in section II of this preamble 
affect only the internal operating procedures of the Government.

IV. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is not a significant regulatory action and, therefore, was not 
subject to review under Section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993. This rule is not a major rule 
under 5 U.S.C. 804.

V. Regulatory Flexibility Act

    The Regulatory Flexibility Act does not apply to this rule because 
this final rule does not constitute a significant FAR revision within 
the meaning of FAR 1.501-1 and 41 U.S.C. 1707 does not require 
publication for public comment.

VI. Paperwork Reduction Act

    The rule does not contain any information collection requirements 
that require the approval of the Office of Management and Budget under 
the Paperwork Reduction Act (44 U.S.C. chapter 35).

List of Subjects in CFR Parts 37 and 52

    Government procurement.

    Dated: January 22, 2015.
William Clark,
Director, Office of Government-wide Acquisition Policy, Office of 
Acquisition Policy, Office of Government-wide Policy.
    Therefore, DoD, GSA, and NASA amend 48 CFR parts 37 and 52 as set 
forth below:

0
1. The authority citation for 48 CFR parts 37 and 52 continues to read 
as follows:

    Authority:  40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 
U.S.C. 20113.

PART 37--SERVICE CONTRACTING

0
2. Amend section 37.101 by adding, in alphabetical order, the 
definitions ``Adjusted hourly rate (including uncompensated overtime)'' 
and ``Uncompensated overtime'' to read as follows:


37.101  Definitions.

* * * * *
    Adjusted hourly rate (including uncompensated overtime) is the rate 
that results from multiplying the hourly rate for a 40-hour work week 
by 40, and then dividing by the proposed hours per week which includes 
uncompensated overtime hours over and above the standard 40-hour work 
week. For example, 45 hours proposed on a 40-hour work week basis at 
$20 per hour would be converted to an uncompensated overtime rate of 
$17.78 per hour ($20.00 x 40/45 = $17.78).
* * * * *
    Uncompensated overtime means the hours worked without additional 
compensation in excess of an average of 40 hours per week by direct 
charge employees who are exempt from the Fair Labor Standards Act. 
Compensated personal absences such as holidays, vacations, and sick 
leave shall be included in the normal work week for purposes of 
computing uncompensated overtime hours.

0
3. Amend section 37.115-2 by adding paragraph (d) to read as follows:


37.115-2  General policy.

* * * * *
    (d) Whenever there is uncompensated overtime, the adjusted hourly 
rate (including uncompensated overtime) (see definition at 37.101), 
rather than the hourly rate, shall be applied to all proposed hours, 
whether regular or overtime hours.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
4. Amend section 52.237-10 by--
0
a. Revising the date of the provision;
0
b. Removing from paragraph (a) the definition ``Uncompensated overtime 
rate'', and adding, in alphabetical order, the definition ``Adjusted 
hourly rate (including uncompensated overtime)''; and
0
c. Revising paragraph (b).
    The revisions and addition read as follows:


52.237-10  Identification of Uncompensated Overtime.

* * * * *

Identification of Uncompensated Overtime Mar 2015

    (a) * * *
    Adjusted hourly rate (including uncompensated overtime) is the 
rate that results from multiplying the hourly rate for a 40-hour 
work week by 40, and then dividing by the proposed hours per week 
which includes uncompensated overtime hours over and above the 
standard 40-hour work week. For example, 45 hours proposed on a 40-
hour work week basis at $20 per hour would be converted to an 
uncompensated overtime rate of $17.78 per hour ($20.00 x 40 divided 
by 45 = $17.78).
* * * * *
    (b)(1) Whenever there is uncompensated overtime, the adjusted 
hourly rate (including uncompensated overtime), rather than the 
hourly rate, shall be applied to all proposed hours, whether regular 
or overtime hours.
    (2) All proposed labor hours subject to the adjusted hourly rate 
(including uncompensated overtime) shall be identified as either 
regular or overtime hours, by labor categories, and described at the 
same level of detail. This is applicable to all proposals whether 
the labor hours are at the prime or subcontract level. This includes 
uncompensated overtime hours that are in indirect cost pools for 
personnel whose regular hours are normally charged direct.
* * * * *
[FR Doc. 2015-01525 Filed 1-28-15; 8:45 am]
BILLING CODE 6820-EP-P