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frequency as may be necessary. Such fusal appears continuing and willful, or investigations shall include interviews of in the event of any other failure or employees on a sampling basis.

refusal to comply with contract, statu(b) Special investigations in detail tory, and regulatory requirements, the shall be made when required by com- contracting officer may suspend all fuplaints or other evidence of violations. ture contract payments to the contractor Complaints of violations shall be given until such violations have ceased. If priority.

restitution is not made directly by the (c) Statements, written or oral, made contractor or subcontractor within a by an employee shall be treated as con reasonable time, or, in any event, prior to fidential and shall not be disclosed to final payment under the contract, the the employer without the consent of the contracting officer shall submit with the employee.

contractor's payment voucher or vouch[25 F.R. 14272, Dec. 31, 1960)

ers a “Schedule of Deductions from Pay.

ments to Contractors (Act of August 30, § 12.404-8 Enforcement reports.

1935)” on Standard Form 1093 and 8 (a) Where underpayments total $500 statement of the amount to be withheld or more, or are willful, the Department as liquidated damages. These amounts concerned shall furnish to the Depart shall be deducted from the payments ment of Labor, as soon as practicable, a made to the contractor, and the amounts detailed enforcement report. Such re shown to be due workers shall be deposports shall include a statement of the ited in the Treasury in accordance with findings as to the violations and infor Departmental procedures. mation as to restitution made, payment (29 F.R. 14385, Oct. 31, 1964) deductions, contract terminations, and the names and addresses of the workers,

$ 12.404–10 Restitution. contractors, and subcontractors con

Restitution of amounts due workers cerned.

may be permitted at any time at the voli. i (b) Where underpayments total less tion of the contractor or subcontractor than $500 and are nonwillful, and where and may be ordered by the Department restitution has been effected and future concerned whenever wage underpas. compliance assured, no report need be ments are found to be nonwillful. furnished to the Department of Labor, 125 F.R. 14273, Dec. 31, 1960) unless the Department of Labor has expressly requested that the investigation & 12.404–11 Contract terminations ; be made. In the latter case, the Depart

Whenever a contract is terminated for ment concerned shall submit a factual

violation of the labor standards provi. summary report in accordance with 29 C.F.R. 5.7(a) (1).

sions, a report shall be submitted by the

Department concerned to the Secretary (c) Where there is substantial evi

of Labor and the Comptroller General. dence that violations are willful and in

The report shall include the name and breach of the False Affidavits Act (18

address of the terminated contractor or U.S.C. 1001) or other criminal statute,

subcontractor, the name and address of the matter shall be forwarded to the At

the contractor or subcontractor who is torney General for prosecution and the

to complete the work, the amount and Secretary of Labor shall be informed of

number of the latter's contract, and a such action.

description of the work thereunder. [29 F.R. 14835, Oct. 31, 1964)

[25 F.R. 14273, Dec. 31, 1960) $ 12.404–9 Suspensions and deductions of contract payments.

8 12.404_-12 Cooperation with Depart

ment of Labor. In the event of failure or refusal to pay all or any part of the wages due

The Department concerned shall coworkers, the contracting officer may sus

operate with representatives of the Depend further contract payments to the

partment of Labor in the inspection of contractor in amounts equal to such un records, interviews with workers and all paid wages and liquidated damages which other aspects of investigations under: may be due until either restitution has taken by the Department of Labor been made directly by the contractor or when requested, the Departments shal subcontractor concerned or deductions furnish to the Secretary of Labor any against payment vouchers are made as available information with respect to provided below. If such failure or re- contractors, subcontractors, their con

tracts and the nature of the contract tors or employees who inquire concerning work.

applicability or interpretation of the 125 F.R. 14273, Dec. 31, 1960)

foregoing regulations shall be advised

that rulings concerning such matters fall 2. Subpart E-U.S. Department of Labor

within the jurisdiction of the U.S. DeSafety and Health Regulations for partment of Labor and shall be given Ship Repairing and Shipbuilding the address of the appropriate field ofSOURCE: The provisions of this Subpart E

fice of the Bureau of Labor Standards of appear at 29 F.R. 2840, Feb. 29, 1964, except the U.S. Department of Labor. as otherwise noted.

Subpart F—Walsh-Healey Public - $ 12.501 Safety and health regulations.

Contracts Act het The Secretary of Labor has promul

SOURCE: The provisions of this Subpart F gated Safety and Health Regulations for appear at 27 F.R. 11660, Nov. 27, 1962, except 1- Ship Repairing and Shipbuilding pursu as otherwise noted. 2. ant to the authority of Public Law 85–

$ 12.601 Statutory requirement. 742, 72 Stat. 835 (approved August 23, 1958) amending section 41 of the Long

In accordance with the requirements shoremen's and Harbor Workers' Com

of the Walsh-Healey Public Contracts im- pensation Act (33 U.S.C. 941). These

Act (41 U.S.C. 35-45), all contracts subregulations are set forth in Title 29, Code ject to said Act entered into by any Deof Federal Regulations, Subtitle B, Part partment for the manufacture or fur1501 and Part 1502.

nishing of supplies in any amount (29 F.R. 14835, Oct. 31, 1964)

exceeding $10,000 (a) will be with manu

facturers or regular dealers, and (b) shall § 12.502 Applicability.

incorporate by reference the representaThese regulations apply to ship repair tions and stipulations required by said and shipbuilding or related work, as de Act pertaining to such matters as mini

fined therein, performed within the Fed- mum wages, maximum hours, child la L eral maritime jurisdiction on the navi

convict labor, and safe and sanitary gable waters of the United States, in working conditions. cluding any dry dock or marine railway. $12.602 Applicability. $ 12.503 Contract clause.

$ 12.602-1 General. Stop The Master Contract for the Repair

The requirement set forth in § 12.601 and Alteration of Vessels (DD ASPR

applies to contracts for the manufacture - Form 731) includes a clause entitled or furnishing of “materials, supplies, “U.S. Department of Labor Safety and

articles, and equipment” which are to be Health Regulations for Ship Repairing"

performed within the United States, directing the attention of the contractor

Puerto Rico, or the Virgin Islands, and to the applicability of these regulations.

which exceed or may exceed $10,000 in Similar clauses should be included in

amount unless exempt pursuant to shipbuilding and ship conversion con $ 12.602–2. tracts.

f 12.602–2 Exemptions. $ 12.504 Administration and enforce

The following transactions are exempt ment.

from the Walsh-Healey Act: The responsibility for compliance with

(a) Purchases of generally available the U.S. Department of Labor Regula

commercial items, negotiated pursuant tions is placed upon employers, any of

to the authority set forth in $ 3.202 of whose employees are engaged in any ship

this chapter; repair, shipbuilding, or related employ

(b) Purchases of perishables including ment aboard any vessel upon the naviga

dairy, livestock, and nursery products; ble waters of the United States, including

and any dry dock or marine railway. Conse

(c) Purchases of agricultural or farm quently, prime contractors or subcontrac

products processed for first sale by the cors, or both, may be responsible for com

original producers. pliance with these regulations. Insofar as the Government is concerned, the re

§ 12.602–3 Department of Labor regu. sponsibility for the administration and

lations and interpretations. enforcement of these regulations is with Pursuant to the Walsh-Healey Act, the the U.S. Department of Labor. Contrac- Secretary of Labor has issued detailed regulations and interpretations as to the terials, supplies, articles, or equipment Es coverage of said Act, and exemptions of the general character described by the 13 and procedures thereunder. These regu- specifications and required under the E. lations and interpretations are compiled contract are bought, kept in stock, and in a document entitled “Walsh-Healey sold to the public in the usual course of E Public Contracts Act, Rulings and Inter business. In order to qualify as a regue pretations,” which may be obtained from lar dealer, a bidder must be able to sbor the Department of Labor Regional Offices before the award: listed in § 12.607. In addition to the (1) That he has an establishment or interpretations stated in that document, leased or assigned space in which be attention is directed to an opinion of regularly maintains a stock of goods in the Department of Labor that contracts which he claims to be a dealer; if the la which are originally $10,000 or less, but space is in a public warehouse, it must are subsequently modified to increase the be maintained on a continuing, and not price to an amount in excess of $10,000, on a demand basis; are subject to the Walsh-Healey Act; (2) That the stock maintained is a t. and that contracts in an amount exceed true inventory from which sales are ing $10,000, which are subsequently made; the requirement is not satisfied by modified to a figure of $10,000 or less, a stock of sample or display goods, or are not subject to said Act with respect by a stock consisting of surplus goods to work performed after such modifica remaining from prior orders, or by g tion if modification is effected by mutual stock unrelated to the supplies which agreement

are the subject of the bid, or by a stock (30 FR. 6008, Apr. 29, 1965)

maintained primarily for the purpose of

token compliance with the Act from $ 12.603 Determinations of eligibility as which few, if any, sales are made; manufacturer or regular dealer.

(3) That the goods stocked are of the & 12.603–1 Manufacturer.

same general character as the goods to

be supplied under the contract; to be of As used in § 12.601, a manufacturer is the same general character, the items a person who owns, operates, or main to be supplied must be either identical tains a factory or establishment that with those in stock or be goods for which produces on the premises the materials, dealers in the same line of business supplies, articles, or equipment required would be an obvious source; under the contract and of the general (4) That sales are made regularis character described by the specifications. from stock on a recurring basis; they In order to qualify as a manufacturer, a cannot be only occasional and constitute bidder must be able to show before the an exception to the usual operations of award that he is (a) an established man the business; the proportion of sales ufacturer of the particular goods or goods from stock that will satisfy the requireof the general character sought by the ments will depend upon the character Government, and (b) if he is newly en of the business; tering into such manufacturing activity, (5) That sales are made regularly in that he has made all necessary prior ar the usual course of business to the public, rangements for space, equipment and i.e., to purchasers other than Federal, personnel to perform the manufacturing State, or local government agencies; this operations required for the fulfillment requirement is not satisfied if the conof the contract. A new firm which, prior tractor merely seeks to sell to the public to the award of the contract, has made but has not yet made such sales; if gove such definite commitments in order to ernment agencies are the sole purchasers, enter & manufacturing business which the bidder will not qualify as a regular will later qualify it, shall not be barred dealer; the number and amount of sales from receiving the award because it has which must be made to the public will not yet done any manufacturing.

necessarily vary with the amount of total

sales and the nature of the business; and § 12.603–2 Regular dealer.

(6) That his business is an established (a) Except as set forth in paragraph and going concern; it is not sufficient to (b) of this section, as used in § 12.601 a show that arrangements have been made regular dealer is a person who owns, op- to set up such business. erates, or maintains a store, warehouse, (b) For certain specific products or other establishment in which ma- (lumber and timber products, machine

tools, hay, grain, feed or straw, raw cotton, green coffee, petroleum, agricultural liming materials, tea, and raw or un manufactured cotton linters), there are alternative definitions of regular dealers. The qualifications required under the alternative definitions are listed in the regulations of the Secretary of Labor (41 CFR 50–201.101(b)). $ 12.603–3 Coal dealers.

Coal dealers are exempt from the regular dealer requirements if they meet the terms and conditions set forth by the Secretary of Labor in his regulation (41 CFR 50–201.604 (a)). If these terms and conditons are not met, coal dealers must meet the requirements set forth in $ 12.603–2 in order to be considered regular dealers. $ 12.603_4 Agents.

A manufacturer or regular dealer may bid, negotiate, and contract through an authorized agent if the agency disclosed, and the agent acts and contracts in the name of his principal. In this connection, see the clause entitled “Covenant Against Contingent Fees" set forth in $ 7.103-20 of this chapter and the procedures prescribed for obtaining information concerning contingent or other fees, as set forth in Subpart E, Part 1 of this chapter. $ 12.604 Responsibilities of contracting

officers. The responsibility for applying the eligibility requirements set forth in $8 12.601 and 12.603 rests, in the first instance, with the contracting officer. The Department of Labor does not conduct pre-award investigations, nor render final determinations of eligibility until the contracting officer has initially determined whether the eligibility requirements have been met. When the eligibility of a bidder or offeror is challenged before award, it should be treated in a manner similar to a protest before award (see $ $ 2.407–9 and 3.509 of this chapter). The contracting officer should make an initial determination and should process the protest in accordance with applicable procedures for submission to the Department of Labor for a final determination. Whenever the WalshHealey Public Contracts Act is applicable, the contracting officer shall, pursuant to regulations or instructions is sued by the Secretary of Labor and in

accordance with procedures prescribed by each respective Military Department:

(a) Inform prospective contractors of the applicability of minimum wage determinations;

(b) Furnish to the contractor a poster (Form PC-13) and a form letter (Form PC-12) explaining the Walsh-Healey Act (forms are available through normal publication supply channels);

(c) Prepare and transmit three copies of DD Form 350 as provided in $ 16.803–2 (c) of this chapter; when a contract of $10,000 or less is modified to exceed $10,000, the report on DD Form 350 shall be prepared and transmitted.

(d) Report to the Department of Labor any violation of the representations or stipulations required by the Walsh-Healey Act. (30 F.R. 14092, Nov. 9, 1965) $ 12.605 Contract clause.

The contract clause required by this subpart shall be as follows: WALSH-HEALEY PUBLIC CONTRACTS ACT

(Jan. 1958) If this contract is for the manufacture of materials, supplies, articles, or equipment in an amount which exceeds or may exceed $10,000 and is otherwise subject to the Walsh-Healey Public Contracts Act, as amended (41 U.S.C. 35-45), there are hereby incorporated by reference all representations and stipulations required by said Act and regulations issued thereunder by the Secretary of Labor, such representations and stipulations being subject to all applicable rulIngs and interpretations of the Secretary of Labor which are now or may hereafter be in effect. $ 12.606 Procedure for obtaining ex

emptions with respect to stipulations

required by the Act. Section 7 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 which are subject to the Act. Applications for such exceptions shall be submitted through procurement channels with pertinent data and recommendation to the Labor Advisor, OASA (I&L) for the Army; Chief of Naval Material for the Navy; Hq., USAF (AFSPPDB) for the Air Force; Directorate, Procurement and Production, DSAH-P, for the Defense Supply Agency. (30 F.R. 6009, Apr. 29, 1965)

$ 12.607 Wage and Hour and Public

Contracts Divisions of the United States Department of Labor Regional Offices-geographical jurisdictions and addresses of Regional

Directors. Region I: Connecticut, Maine, Massachu

setts, New Hampshire, Rhode Island, Vermont-18 Oliver Street, Boston, Mass.,

02110. Region II: New Jersey and New York—341

Ninth Avenue, New York, N.Y., 10001. Region III: Delaware, District of Columbia,

Maryland, Pennsylvania-Wolf Avenue and Commerce Street, Chambersburg, Pa.,

17201. Region IV: Alabama, Arkansas, Louisiana,

Mississippi-American Liberty Insurance Co. Building, 1401 South 20th Street, Birmingham, Ala., 35205. Region V: Michigan, Ohio—216 Engineers

Building, 1365 Ontario Street, Cleveland,

Ohio, 44114. Region VI: Illinois, Indiana, Minnesota, Wis

consin-11th Floor, Bankers Building, 105

West Adams Street, Chicago, Ill., 60603. Region VII: Colorado, Iowa, Kansas, Mis

souri, Nebraska, North Dakota, South Dakota, Wyoming—2000 Federal Office Building, 911 Walnut Street, Kansas City, Mo., 64106. Region VIII: New Mexico, Oklahoma, Texas

Room 222, 1114 Commerce Street, Dallas,

Tex., 75201. Region X: Alaska, Arizona, California,

Hawaii, Idaho, Montana, Nevada, Oregon, Utah, Washington-329 Appraisers Building, 630 Sansome Street, San Francisco,

Calif., 94111. Region X: Kentucky, Tennessee, Virginia,

West Virginia-U.S. Court House Building,

801 Broad Street, Nashville, Tenn., 37203. Region XI: Florida, Georgia, North Carolina,

South Carolina-Room 300, 1365 Peachtree

Street NE., Atlanta, Ga., 30309.
Puerto Rico: 7th Floor, Concominio San

Alberto Building, 1200 Ponce De Leon,
Stop 17, Post Office Box 9092, Santurce,

Puerto Rico, 00908.
District of Columbia: 14th Street and Con-

stitution Avenue NW., Washington, D.C.,

20210. (30 F.R. 6009, Apr. 29, 1965) Subpart G-Fair Labor Standards Act

of 1938 SOURCE: The provisions of this Subpart G appear at 25 F.R. 14273, Dec. 31, 1960. $ 12.701 Basic statute.

The Fair Labor Standards Act of 1938 (Act of June 30, 1938; 29 U.S. Code 201219), as amended, provides for the establishment of minimum wage and maximum hour standards, creates a Wage and

Hour Division in the Department of Labor for purposes of interpretation and enforcement (including investigations and inspections of Government contractors), and prohibits oppressive child labor. Said act applies to all employees, unless otherwise exempted, who are engaged in (a) interstate commerce or foreign commerce or (b) the production of goods for such commerce or (c) any poi closely related process or occupation essential to such production. $ 12.702 Suits against Government con

tractors. Payments made pursuant to the provision sions of the Fair Labor Standards Act ? are usually reimbursable under cost or to cost-plus-a-fixed-fee contracts. Con sequently, each military department has su a direct interest in claims and suits under 2 said Act which are made or brought in connection with such contracts. In this connection, procedures have been estab. I lished, by agreement between the Depart. De ment of Justice on the one hand and the me military departments on the other hand, governing the defense of such Fair Labor Standards Act suits. These procedures in general contemplate the defense of Fair Labor Standards Act suits by private counsel employed by the contractor, the employment of whom is approved by the military department concerned. These procedures must be followed if contractors are to be reimbursed for the amount of any judgment under said Act, or for any litigation expenses (including the reasonable fees of such private counsel). 8 12.703 Rulings on applicability or in

terpretation. Contractors or contractor employees who inquire concerning applicability or interpretation of the Fair Labor Standards Act shall be advised that rulings concerning such matters fall within the jurisdiction of the Department of Labor, and shall be given the address of the appropriate Regional Director of the Wage and Hour and Public Contracts Divisions of the Department of Labor. Subpart H-Nondiscrimination in

Employment $ 12.801 Policy.

Executive Order No. 10925, dated 6 March 1961, as amended by Executive Order No. 11114, dated 22 June 1963, states that discrimination because of

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