CONTRACTOR INDUSTRIAL LABOR RELATIONS Part 4-Labor Standards in Construction Contracts For coverage regarding Labor Standards in Construction Contracts, see Section XVIII, Part 7. 12-400 ARMED SERVICES PROCUREMENT REGULATION CONTRACTOR INDUSTRIAL LABOR RELATIONS Part 5-Safety & Health Regulations for Ship Repairing & Shipbuilding 12-501 Safety and Health Regulations. The Secretary of Labor has promulgated Safety and Health Regulations for Ship Repairing and Shipbuilding pursuant to the authority of Public Law 85-742, 72 Stat. 835 (approved August 23, 1958) amending section 41 of the Longshoremen's and Harbor Workers' Compensation Act (33 U.S.C. 941). These regulations are set forth in Title 29, Code of Federal Regulations, Subtitle B, Part 1501 and Part 1502. 12-502 Applicability. These regulations apply to ship repair and shipbuilding or related work, as defined therein, performed within the Federal maritime jurisdiction on the navigable waters of the United States, including any dry dock or marine railway. 12-503 Contract Clause. The Master Contract for the Repair and Alteration of Vessels (DD ASPR Form 731) includes a clause entitled “U.S. Department of Labor Safety and Health Regulations for Ship Repairing" directing the attention of the contractor to the applicability of these regulations. Similar clauses should be included in shipbuilding and ship conversion contracts. 12-504 Administration and Enforcement. The responsibility for compliance with the U.S. Department of Labor Regulations is placed upon employers, any of whose employees are engaged in any ship repair, shipbuilding, or related employment aboard any vessel upon the navigable waters of the United States, including any dry dock or marine railway. Consequently, prime contractors or subcontractors, or both, may be responsible for compliance with these regulations. Insofar as the Government is concerned, the responsibility for the administration and enforcement of these regulations is with the U.S. Department of Labor. Contractors or employees who inquire concerning applicability or interpretation of the foregoing regulations shall be advised that rulings concerning such matters fall within the jurisdiction of the U.S. Department of Labor and shall be given the address of the appropriate field office of the Bureau of Labor Standards of the U.S. Department of Labor. 12-504 ARMED SERVICES PROCUREMENT REGULATION CONTRACTOR INDUSTRIAL LABOR RELATIONS Part 6-Walsh-Healey Public Contracts Act 12-601 Statutory Requirement. In accordance with the requirements of the Walsh-Healey Public Contracts Act (41 U.S.C. 35-45), hereafter referred to as the Act, all contracts subject to the Act entered into by any Department for manufacture or furnishing of supplies in any amount exceeding $10,000 (1) will be with manufacturers or regular dealers, and (ii) shall incorporate by reference the representations and stipulations required by the Act pertaining to such matters as minimum wages, maximum hours, child labor, convict labor, and safe and sanitary working conditions. 12-602 Applicability. 12-602.1 General. The requirements set forth in 12-601 apply to contracts (including, for this purpose, basic ordering agreements and blanket purchase agreements (see 3-410.2 and 3-605)) for the manufacture or furnishing of "materials, supplies, articles, and equipment" which are to be performed within the United States, Puerto Rico, or the Virgin Islands, and which exceed or may exceed $10,000 in amount unless exempt pursuant to 12-602.2. Pursuant to regulations of the Department of Labor, contracts which are originally $10,000 or less, but are subsequently modified to increase the price to an amount in excess of $10,000, are subject to the Act. Contracts in an amount exceeding $10,000, which are subsequently modified to a figure of $10,000 or less, are not subject to the Act with respect to work performed after such modification, if modification is effected by mutual agreement. In the case of a basic ordering agreement or blanket purchase agreement, the amount of the agreement shall be the aggregate amount of all orders estimated to be placed thereunder for 1 year after the effective date of the agreement. If a basic ordering agreement continues or is extended, the estimate shall be made annually for each year after the first year and the agreement modified accordingly. 12-602.2 Exemptions. (a) Statutory Exemptions. The Act exempts the following transactions from the requirements of the Act: (1) purchases of generally available commercial items (ii) purchases of perishables, including dairy, live- (iii) purchases of agricultural or farm products processed for first sale by the original producers. 12-602.2 ARMED SERVICES PROCUREMENT REGULATION 33-103 0-84-65 CONTRACTOR INDUSTRIAL LABOR RELATIONS (b) Regulatory Exemptions. (1) Department of Labor regulations, 41 CFR 50-201.603, grant full exemptions from the application of the Act to the following types of contracts: (1) contracts for public utility services; (ii) contracts for materials or supplies manufactured outside the United States, Puerto Rico, or the Virgin Islands; (iii) contracts covering purchases against the account of a defaulting contractor where the stipulations of the Act were not included in the defaulted contract; and (iv) contracts to sales agents or publisher representatives for the delivery of newspapers, magazines, or periodicals by the publishers thereof. (2) Department of Labor regulations, 41 CFR 50-201.604, grant partial exemptions from the application of the Act to the following types of contracts: (1) contracts with certain coal dealers; (ii) certain commodity exchange contracts; (iii) contracts with certain export merchants; (iv) contracts with small business defense production pools and small business research and development pools; and (v) contracts with public utilities for the acquisition of certain uranium products. PCOS should refer to the sections of the Department of Labor regulations cited in (1) above and in this paragraph for specifics regarding full and partial exemptions. (3) Section 6 of the Act permits the Secretary of Labor to make exceptions to the requirement that the representations and stipulations of Section 1 of the Act be included in contracts that are subject to the Act. Applications for such exceptions shall be submitted through contracting channels with pertinent data and recommendations to the Departmental Labor Advisor, OASA(RDA) for the Army; Chief of Naval Material for the Navy; Director of Contracting and Acquisition Policy, HQ USAF, for the Air Force; Executive Director, Contracting, for the Defense Logistics Agency; Director of Procurement for the National Security Agency; the Counsel for the Defense Communications Agency; Chief, Office of Acquisition, for the Defense Nuclear Agency; and Staff Director of Logistics for the Defense Mapping Agency. 12-603 Eligibility as Manufacturer or Regular Dealer. Secretary of Labor has issued interpretations regarding the The 12-603 ARMED SERVICES PROCUREMENT REGULATION CONTRACTOR INDUSTRIAL LABOR RELATIONS qualifications of contractors to whom covered contracts may 12-603.1 Manufacturer. As used in 12-601, a "manufacturer" is a person who owns, operates, or maintains a factory or establishment that produces on the premises the materials, supplies, articles, or equipment required under the contract and of the general character described by the specifications. In order to qualify as a manufacturer, an offeror must be able to meet the requirements set forth in 41 CFR 50-206.51. An assembler must meet the standards set forth in 41 CFR 50-206.52 to qualify as a manufacturer. 12-603.2 Regular Dealer. (a) Except as set forth in (b) below, as used in 12-601, a "regular dealer" is a person who owns, operates, or maintains a store, warehouse, or other establishment in which materials, supplies, articles, or equipment of the general character described by the specifications and required under the contract are bought, kept in stock, and sold to the public in the usual course of business. In order to qualify as a regular dealer, a dealer must meet the standards set forth in 41 CFR 50-206.53. (b) For certain specific products (lumber and timber products, machine tools, hay, grain, feed or straw, raw cotton, green coffee, petroleum, agricultural liming materials, tea, raw or unmanufactured cotton linters), certain uranium products, and used automatic data processing equipment, there are alternative definitions of regular dealers in which the dealer need not physically maintain a stock. The requirements under the alternative definitions are set forth in 41 CFR 50-201.101 (a) (2) and 50-206.54. 12-603.3 Agents. A manufacturer or regular dealer may bid, negotiate, and contract through an authorized agent if the agency is disclosed and the agent acts and contracts in the name of the principal. In this connection, see the clause entitled "Covenant Against Contingent Fees" set forth in 7-103.20 and the procedures prescribed for obtaining information concerning contingent or other fees, as set forth in Section I, Part 5. 12-604 Determination of Eligibility of a Bidder or Offeror. (a) Responsibility of the PCO. The initial responsibility for applying the eligibility requirements set forth in 12-601 and 12-603 rests with the PCO. This initial determination of eligibility shall be in accordance with 1-905.4(d). The Department of Labor does not conduct preaward investigations or render final determinations until the PCO has initially determined whether the eligibility requirements have been met. 12-604 ARMED SERVICES PROCUREMENT REGULATION |