Act of 1938, as amended (section 2(b) of this Act), of all contracts for which no such wage or fringe benefit has been determined for any class of service employees to be employed thereunder; and (ii) from the fringe benefits section (section 2(a) (2) of the Act) of all contracts and of all classes of service employees employed thereunder if no such benefits have been determined for any such class of service employ

ees.

or

(2) The exemptions provided in subparagraph (1) of this paragraph (b) which were adopted pursuant to section 4(b) of the Act prior to its amendment by Pub. L. 92-473 do not extend to undetermined wages or fringe benefits in contracts for which one more, but not all, classes of service employees are the subject of an applicable wage determination. The procedure for determination of wage rates and fringe benefits for any classes of service employees engaged in performing such contracts whose wages and fringe benefits are not specified in a wage determination included in the register is set forth in 29 CFR 4.6(b).

(3) The exemptions provided in subparagraph (1) of this paragraph (b) do not apply to any contract for which section 10 of the Act, as amended, and 29 CFR 4.3 require an applicable wage determination.

(4) The exemptions provided in subparagraph (1) of this paragraph (b) do not exempt any contract from the application of the provisions of section 4(c) of the Act, as amended.

(c) If the notice of intention required by 29 CFR 4.4 is not filed with the required supporting documents within the time provided in such section, the contracting agency shall exercise any and all of its power that may be needed (including, where necessary, its power to negotiate, its power to pay any necessary additional costs, and its power under any provision of the contract authorizing changes) to include in the contract any wage determinations communicated to it within 30 days of the filing of such notice or of the discovery by the Employment Standards Administration, U.S. Department of Labor, of such omission.

[43 FR 11991, Mar. 23, 1978]

§ 1-12.905-5 Additional classifications.

Where any classes of service employees which are to be engaged in the performance of the contract are not listed in the wage and fringe benefit determination attached to the contract (see paragraph (a) of the clause in §112.904-1), such employees shall be classified by the contractor so as to bear a reasonable relationship to the classifications listed in the determination. The wages paid and the fringe benefits provided to employees so classified shall be determined by agreement between the interested parties. Such parties shall be deemed to be the contracting agency, the contractor, and the employees (or their representatives) who will perform under the contract. If the interested parties do not agree on a classification or reclassification which is, in fact, conformable with the wage and fringe benefit determination, the contracting officer shall submit the question, together with his recommendation, to the Administrator of the Wage and Hour and Public Contracts Divisions, Department of Labor, or his authorized representative for final determination.

[33 FR 19082, Dec. 21, 1968]

§ 1-12.905-6 Notice of award.1

Whenever an agency of the United States shall award a contract which may be in excess of $2,500 subject to the Act, it shall furnish the Office of Special Wage Standards, ESA, an original and one copy of Standard Form 99, Notice of Award of Contract. The form shall be completed as follows:

(a) Items 1 through 7 and 12 and 13: Self-explanatory;

(b) Item 8: Enter the notation "Service Contract Act of 1965;"

(c) Item 9: Leave blank;

(d) Item 10: (1) Enter the notation "Major Category," and indicate beside this entry the general service area into which the contract falls (e.g., food services, custodial-janitorial service, garbage collection, insect and rodent

'For a document relating to this section, see Appendix-Temporary Regulations appearing at the end of Chapter 1.

control, laundry and drycleaning services), and (2) enter the heading "Detailed Description," and following this entry set forth a detailed description of the services to be performed; and

(e) Item 11: Enter the dollar amount of the contract, or the estimated dollar value with the notation "estimated" (if the exact amount is not known). If neither the exact nor the estimated dollar value is known, enter "indefinite," or "not to exceed $-." Supplies of Standard Form 99 are available in all GSA supply depots under stock number 7540-634-4049.

[33 FR 7429, May 18, 1968, as amended at 37 FR 26718, Dec. 15, 1972; 43 FR 11991, Mar. 23, 1978]

§ 1-12.905-7 Withholding of contract payments and contract termination.

(a) Withholding. (1) As provided by the Act, any violation of the contract under stipulations required paragraphs (a) and (c) of the contract clause set forth in § 1-12.904-1 or under the contract clause set forth in § 1-12.904-2 renders the party responsible therefor liable for a sum equal to the amount of any deductions, rebates, refunds, or underpayment of compensation due to any employee engaged in the performance of such contract. So much of the accrued payment due on the contract or any other contract between the Government prime contractor and the Federal Government may be withheld as is necessary to pay such employees. Such withheld sums shall be held in a deposit fund. On order of the Administrator of the Wage and Hour and Public Contracts Divisions of the Department of Labor, any compensation which the head of a Federal agency or the Administrator of the Wage and Hour and Public Contracts Divisions has found to be due pursuant to the Act shall be paid directly from any accrued payments withheld under the Act.

(2) If the accrued payments withheld are insufficient to reimburse all underpaid service employees, the Government may bring an action against the contractor, subcontractor, or any contract sureties to recover the re

maining amount of underpayments. Any sums thus recovered shall be held in the deposit fund and shall be paid, or order of the Secretary of Labor, directly to such underpaid employees. Instances of insufficient funds withheld shall be reported to: the General Accounting Office for possible setoff as may be appropriate; to the Administrator of the Wage and Hour and Public Contracts Divisions of the Department of Labor for any of his purposes; and to the Department of Justice for any other necessary action.

(b) Termination. In addition, as provided by the Act, any failure to comply with the requirements of any of the provisions of the contract clauses set forth under § 1-12.904 may be grounds for termination, by written notice, of the contractor's right to proceed with the contract work. In such event, the Government may enter into other contracts or arrangements for completion of the work, charging the contractor with any additional cost.

§ 1-12.905-8 Cooperation with the Department of Labor.

The agency concerned shall cooperate with representatives of the Department of Labor in the examination of records, interviews with service employees, and all other aspects of investigations undertaken by the Department of Labor. When requested, agencies shall furnish to the Administrator of the Wage and Hour and Public Contracts Divisions of the Department of Labor any available information with respect to contractors, subcontractors, their contracts and the nature of the contract services. Violations apparent to the contracting agency and complaints received shall be promptly referred to the Department of Labor. In no event, however, shall complaints by employees be disclosed to the employ

er.

§ 1-12.905-9 Role of the Comptroller General.

The Act provides that the Comptroller General shall distribute a list to all Federal agencies giving the names of persons or firms which have been found to be in violation of the Act. Unless the Secretary of Labor other

wise recommends, no Government contract shall be awarded to any violator so listed or to any firm, corporation, partnership, or association in which such violator has a substantial interest until three years have elapsed from the date of publication of the list containing the name of the violator.

§ 1-12.905-10 Absence of minimum wage determinations and fringe benefit specifications.

(a) Authority. The Secretary of Labor, pursuant to his authority under the Act to allow reasonable variations, tolerances, and exemptions (see § 1-12.902-4), has made the finding set forth in § 1-12.905-10(b) with respect to service contracts in excess of $2,500 for which minimum monetary wages and fringe benefits have not been determined as provided in § 1-12.905-4.

(b) Finding. To avoid serious impairment of the conduct of Government business, it is hereby found necessary and proper to provide exemption (1) from the determined wage and fringe benefits section of the Act (section 2(a) (1) and (2)), but not the minimum wage specified under section 6(a)(1) of the Fair Labor Standards Act of 1938, as amended (section 2(b) of this Act), of all contracts for which no such wage or fringe benefit has been determined for any class of service employees to be employed thereunder, and (2) from the fringe benefits section (section 2(a)(2)) of all contracts and of all classes of service employees employed thereunder if no such benefits have been determined for any such class of service employees. Accordingly, such exemptions are hereby provided.

(c) Application of finding. The exemptions covered by the finding do not extend to undetermined wages or fringe benefits in contracts for which one or more, but not all, classes of service employees are the subject of an applicable wage and fringe benefit determination (see § 1-12.905-5).

[33 FR 19082, Dec. 21, 1968]

§ 1-12.905-11 Hearings.1

Detailed procedures with respect to hearings arising under questions pertaining to this Subpart 1-12.9 are contained in 29 CFR 4.10.

[43 FR 11991, Mar. 23, 1978]

Subpart 1-12.10-Nondiscrimination Because of Age.

§ 1-12.1000 Scope of subpart.

This subpart prescribes the public policy against discrimination on the basis of age as set forth in Executive Order No. 11141, of February 12, 1964, (29 FR 2477).

§ 1-12.1001 Policy.

It is the policy of the Executive Branch of the Government that (a) contractors and subcontractors engaged in the performance of Federal contracts shall not, in connection with the employment, advancement, or discharge of employees, or in connection with the terms, conditions, or privileges of their employment, discriminate against persons because of their age except upon the basis of a bona fide occupational qualification, retirement plan, or statutory requirement, and (b) that contractors and subcontractors, or persons acting on their behalf, shall not specify, in solicitations or advertisements for employees to work on Government contracts, a maximum age limit for such employment unless the specified maximum age limit is based upon a bona fide occupational qualification, retirement plan, or statutory requirement.

§ 1-12.1002 Implementation of policy.

Implementation of this policy is to be handled by bringing the policy to the attention of business concerns. Use of contract clauses is not required. § 1-12.1003 Handling of complaints.

In the event that letters or other representations are received regarding a concern's compliance with the foregoing public policy against discrimina

1For a document relating to this section, see Appendix-Temporary Regulations appearing at the end of Chapter 1.

tion on the basis of age, the matter should be handled on the basis of a communication directed to the concern involved (letter, if appropriate) which sets forth the policy, indicates that the concern's compliance with the policy has been questioned, and requests that the concern review its compliance and, if necessary, take appropriate measures to comply with the policy.

Subpart 1-12.11-Listing of Employment Openings [Reserved] 1

Subpart

of the appropriate regional or area office of the Occupational Safety and Health Administration of the Department of Labor.

[38 FR 21405, Aug. 8, 1973]

1

Sec.

1-12.12-Williams-Steiger Occupational Safety and Health Act of 1970

§ 1-12.1201 Basic statute.

The Williams-Steiger Occupational Safety and Health Act of 1970 (29 U.S.C. 651-678) provides for the establishment and enforcement of occupational safety and health standards; for the training of employers, employees, and others in the field of occupational safety and health; for the participation of the States; and for recordkeeping. The Act applies to all employees unless otherwise exempted who are employed in a business that affects interstate commerce.

[38 FR 21404, Aug. 8, 1973]

§ 1-12.1202 Regulations and rulings on applicability of interpretation.

Regulations relating generally to occupational safety and health standards appear in 29 CFR Part 1910. Those relating particularly to construction appear in 29 CFR Part 1926, and solicitations for offers in the construction field should reference the Occupational Safety and Health Standards as set forth therein. Contractors and contractor employees who inquire concerning the applicability or interpretation of the WilliamsSteiger Act or standards and regulations issued thereunder should be advised that these matters fall within the jurisdiction of the Department of Labor and should be given the address

For a document relating to this section, see Appendix-Temporary Regulations appearing at the end of Chapter 1.

Subpart 1-12.13 [Reserved] 1

PART 1-14-INSPECTION AND ACCEPTANCE

§ 1-14.000 Scope of part.

This part deals with inspection and acceptance under contracts for supplies or services (other than construction contracts).

Subpart 1-14.1-Inspection

§1-14.100 Definitions.

(a) "Inspection" means the examination (including testing) of supplies and services (including, when appropriate, raw materials, components, and intermediate assemblies) to determine whether the supplies and services conform to contract requirements.

(b) "Testing" is an element of inspection and generally denotes the determination by technical means of the properties or elements of supplies, or components thereof, and involves the application of established scientific principles and procedures.

§1-14.101 General.

(a) Inspection on behalf of the Government shall be conducted in all cases prior to acceptance, except as permitted by §1-14.205. Inspection shall be accomplished by or under the direction or supervision of Government personnel. The contractor may be required under the terms of the contract to establish and maintain an acceptable inspection or quality control system (see § 1-14.104) to assure compliance with contract specifications with a minimum of Government inspection. Except as otherwise provided in the contract, testing required to be performed by the contractor may be performed in the contractor's or subcontractor's laboratory or any other laboratory acceptable to the Government. A manufacturer's certificate or other statement of quality or quantity may be considered in determining whether supplies or services are in conformity with the contract. In no event shall any contract preclude the Government from performing inspection.

(b) The type and extent of inspection needed depend on the particular procurement. For example, when items which would involve small losses in the event of defects or when knowl

edge of the contractor's reputation or past performance provides assurance that the supplies would be replaced or corrected without contest, and the cost of detailed inspection is not justified, inspection may consist only of checks for identity, quantity, and shipping damage.

§1-14.102 Responsibility for inspection.

Inspection, or the arrangement therefor, is the responsibility of the contracting activity. Where a contracting activity uses the inspection services of another Federal agency, the agency performing such inspection has primary inspection cognizance, and its inspection determinations are binding on the contracting activity for which the inspection services are performed. In interdepartmental procurements where Government inspection is to be made at source, it generally will be made by inspectors of the contracting agency; but this general rule does not alter inspection interchange agreements or preclude the use of inspectors of another agency located at or servicing the contractor's plant. Where Government inspection at destination is required in interdepartmental procurements, the agency requiring the supplies may be requested to arrange for the inspection.

§ 1-14.103 Use of Government inspection facilities.

§ 1-14.103-1 General.

By appropriate inspection agreements, executive agencies shall provide for the use of inspection services of other agencies when such use will assure the most economical and effective inspection consistent with the best interest of the Government.

(a) Inspection services may be arranged for on the basis of individual plants, geographic areas, specified contracts, or groups or classes of contracts or commodities.

(b) Inspection agreements shall set forth the arrangements regarding reimbursement, if any, for inspection services (see § 1-14.103-5) and shall include specific provisions for (1) use of the practices, records, and forms of the activity performing inspection,