Page images

$ 11.501–3 Cutting oil certificate.

(c) Shipping documents indicating

that shipments are in interstate or forThe following form of certificate shall

eign commerce; be used by the purchaser of cutting oil,

(d) A State or local form indicating in accordance with § 11.102–4(c).

that supplies or services are for the exCUTTING OIL CERTIFICATE

clusive use of the United States; or

(e) Any other State or locally required (For use by purchaser of lubricating oil subject to tax under section 4091 of the In form, certificate, or document to estabternal Revenue Code of 1954, for use by lish general or specific exemption. purchaser in cutting and machining opera

$ 11.502–2 When evidence of exemptions on metals)

tion is to be furnished.

- 19.. Contract:

(a) Unless there does not exist any Contract Period:

reasonable basis to sustain a claimed exContractor:

emption, a contractor or vendor will be Product:

furnished evidence of exemption under End Use:

a: The undersigned certifies that he is an (1) Contract which contains the authorized agent of the United States of clause prescribed in either § 11.401-1 or America and that the oil covered by the $ 11.401–2 in accordance with the terms contract identified above is purchased for of those clauses: the use indicated as a lubricant in cutting (2) Cost-reimbursement type contract and machining operations on metals.

at the request of the contractor or at the The undersigned understands that the discretion of the contracting officer; or purchaser must be prepared to establish by

(3) Contract or purchase order which satisfactory evidence the actual use or dis

contains no provision regarding taxes, at position made of such oil, and that upon its

the request of the contractor or at the use of the oil for a lubricating purpose other

discretion of the contracting officer, if the than in cutting and machining operations

contractor warrants that the contract on metals, or upon its sale or other disposi

price does not include the tax, or if he tion of the oil, it is required to notify the manufacturer.

consents to a reduction in the contract The fraudulent use of this certificate for

price if the evidence of exemption is acthe purpose of purchasing oil tax free, rather

cepted by the taxing jurisdiction. than subject to tax at the rate of 6 cents a

(b) In case of disagreement as to gallon, will subject the guilty party to a fine

whether there exists a reasonable basis of not more than $10,000 or imprisonment

upon which to sustain exemption of any for not more than five (5) years, or both,

transaction, the matter should be retogether with the costs of prosecution.

solved in accordance with § 11.000.





12.000 Scope of part.

Subpart A Basic Labor Policies [31 F.R. 13336, Oct. 14, 1966)

12.101 Labor relations.

12.101-1 General. § 11.502 State and local taxes.

12.101-2 Contract pricing and administra$ 11.502–1 Types of evidence of exemp

tion. tion

12.101-3 Reporting of labor disputes.

12.101-4 Impact of labor disputes on de. Evidence appropriate to establish ex

fense programs. emption or immunity from State or local

12.101-5 Movement and removal of items taxes will vary depending upon the

from facilities affected by work grounds of exemption or immunity

stoppage. claimed, the parties to the transaction, 12.101-6 Procurement of stevedoring servand the requirements of the taxing juris

ices during labor disputes. diction. Such evidence includes but is

12.102 Overtime.

12.102–1 Definitions. not limited to the following:

12.102–2 Policy. (a) U.S. Government Tax Exemption

12.102–3 Approval of overtime premiums. Certificate (Standard Form 1094);

12.102-4 Approval of overtime premiums in (b) A copy of the contract, or a por

certain cost-reimbursement type tion thereof;



Sec. 12.102–5 Contract administration.

12.607 Wage and Hour and Public con12.102–6 Payment of overtime premiums

tracts Divisions of the U.S. Declause.

partment of Labor Regional Of12.102–7 Construction contracts.

fices—Geographical Jurisdictions 12.103 Federal and State labor require

and Addresses of Regional ments.

Directors. 12.103-1 General. 12.103–2 Applications for relaxation of re

Subpart G Fair Labor Standards Act of 1938 quirements.

12.701 Basic statute. 12.104 Meeting manpower requirements. 12.702 Suits against Government contrac12.106 Supply, services, or maintenance

tors. contracts involving construction 12.703 Rulings on applicability or interwork.

pretation, 12.106–1 When construction labor standards and clauses are applicable.

Subpart H–Equal Employment Opportunity 12.106–2 When construction labor standards

12.800 Scope of Subpart. and clauses are not applicable. 12.801 Policy. 12.107 Labor standards enforcement re

12.802 Definitions. port.

12.803 Administration. Subpart B-Convict Labor

12.804 Equal opportunity clause.

12.805 Exemptions. 12.201 Basic requirement.

12.806 Equal opportunity solicitation pro12.202 Applicability.

visions. 12.203 Contract clause.

12.807 Affirmative action programs.

12.807-1 General Subpart C—Work Hours Act of 1962 (Other Than

12.807-2 Contracts other than construction Construction Contracts)

contracts. 12.300 Scope of subpart.

12.807–3 Construction contracts. 12.301 Statutory requirement.

12.308 Compliance reviews and preaward 12.302 Applicability.

clearances. 12.303 Contract clause.

12.808-1 General. 12.304 Computation of overtime and 12.808–2 Contracting officers' responsibility liquidated damages.

for requesting preaward clear12.305 Administration and enforcement.

ance. 12.306 Variations and tolerances.

12.808–3 CCO responsibility for preaward 12.307 Labor standards enforcement re

compliance actions. port.

12.809 Filing complaints.

12.810 Processing complaints. Subpart D-Labor Standards in Construction 12.811 Resolution of complaints and vioContracts


12.812 Subpart E-U.S. Department of Labor Safety and

Reports and other required infor

mation. Health Regulations for Ship Repairing and

12.813 Enforcement procedures. Shipbuilding

12.813-1 Informal enforcement procedures. 12.501 Safety and health regulations.

12.813-2 Formal enforcement procedures. 12.502 Applicability.

12.814 Sanctions and penalties. 12.503 Contract clause. 12.504 Administration and enforcement.

Subpart 1Nondiscrimination Because of Age

12.901 Policy regarding nondiscriminaSubpart F-Walsh-Healey Public Contracts Act

tion because of age. 12.601 Statutory requirement. 12.602 Applicability.

Subpart J-Service Contracts Act of 1965 12.602-1 General.

12.1001 Statutory requirements. 12.602-2 Exemptions.

12.1002 Applicability. 12.602–3 Department of Labor regulations 12.1002-1 General. and interpretations.

12.1002–2 Geographical coverage of the Act, 12.603 Determinations of eligibility 8.8 12.1002-3 Service employee.

manufacturer or regular dealer. 12.1003 Department of Labor regulations, 12.603-1 Manufacturer.

12.1004 Contract clauses. 12.603-2 Regular dealer,

12.1005 Administration and enforcement, 12.603-3 Coal dealers.

12.1005-1 Responsibilities of Department 12.603-4 Agents.

of Labor. 12.604 Eligibility of a bidder or offeror. 12.1005–2 Notice of intention to make a 12.605 Contract clause.

service contract. 12.606 Procedure for obtaining exemp- 12.1005–3 Contract minimum wage detertions with respect to stipulations

minations and fringe benefit required by the Act.


Sec. 12.1005-4 Additional classifications (con

formable rates). 12.1005-5 Notice of award. 12.1005-6 Department of Labor Form SC-1. 12.1005–7 Inquiries concerning the Act. 12.1005-8 Contract modifications. 12.1005–9 Withholding of contract pay

ments and contract termina

tion. 12.1005–10 Cooperation with the Depart

ment of Labor. 12.1005–11 Role of the Comptroller General. 12.1006 Labor Standards Enforcement

Report. AUTHORITY: The provisions of this part 12 Issued under R.S. 161, secs. 2202, 2301-2314, 70 Stat. 120, 127–133; 5 U.S.C. 301, 10 U.S.C. 2202, 2301-2314. $ 12.000 Scope of part.

This part (a) deals with general policies regarding labor, so far as they relate to procurements; (b) sets forth certain pertinent labor laws and requirements, indicating in connection with each its applicability and any procedures thereunder; and (c) prescribes the contract clauses with respect to each labor law or requirement. Labor standards and clauses which are applicable only to construction contracts are treated separately in Subpart G, Part 18 of this chapter. (32 F.R. 538, Jan. 18, 1967]

Subpart A-Basic Labor Policies § 12.101 Labor relations. (27 F.R. 3453, Apr. 11, 1962] § 12.101-1 General.

(a) Military procurement depends on industry and labor for uninterrupted performance of contracts to meet defense objectives. Each Military Department must establish and maintain sound working relationships with industry and labor to assure prompt receipt of information involving labor relations matters which may affect adversely military procurement and to assure that procurement actions are carried on without delay and at reasonable costs to the Government.

(b) All problems arising out of the labor relations of contractors and all communications with labor organizations or Federal agencies relative thereto shall be handled in accordance with the procedures prescribed in this part. Industrial security matters concerning contractor employees are governed by the Armed Forces Industrial Security

Regulation (AR 380–130, OPNAV Instructions 5540.8C, AFR 205-4).

(c) No Department shall take any independent action which would have the effect of establishing major policy with respect to labor relations matters. Approval of the Office of the Assistant Secretary of Defense (Installations and Logistics) will be obtained on major policies relating to potential and actual work stoppage matters. Recommendations for plant seizure, injunctive action or resolution of interservice disagreements would be examples of actions establishing major policy relating to work stoppage matters. Approval of the Office of the Assistant Secretary of Defense (I&L) will be obtained also on major policies relating to all other labor relations matters.

(d) Heads of procuring activities or subordinate commands or their representatives shall obtain authorization from the responsible Departmental headquarters office prior to initiating any contact on labor relations matters with a national office of any labor organization, Government department, agency or other govermental organization and shall promptly notify such headquarters office of each contact by the national office of any of these organizations.

(e) Military Departments shall remain impartial in, and refrain from tak. ing a position on the merits of, any labor dispute, and shall refrain from the conciliation, mediation or arbitration of any such dispute. They shall, however, act to avoid or minimize the impact of labor disputes on important procurement by assuring, to the extent practicable, that the parties to the dispute utilize all available methods for resolving the dispute, including the services of the National Labor Relations Board, Federal Mediation and Conciliation Service, National Mediation Board and other appropriate Federal, state, local, or private agencies.

(f) Each Department shall take other action in connection with labor relations problems which is consistent with its procurement responsibilities, as for example:

(1) Giving notice of the existence of a labor dispute, which affects, or threatens to affect, procurement of supplies or services, to the Government agency which has responsibility for conciliation, mediation, arbitration, or other action with respect thereto;

(2) Advising the Government agency unreasonable costs to the Government. responsible for action with respect to Part 15 of this subchapter particularly labor disputes, or the parties to a labor $ 15.205-6(a) explains that the term “un. dispute, of factual information pertain reasonable costs" includes costs resulting ing to procurement of the supplies or from practices that are discriminatory services involved, to the extent consist against the Government or unwarranted ent with security regulations; or

in the context of the particular contract (3) Advising the National Office of the work. Federal Mediation and Conciliation (c) In some cases, labor disputes may Service or other appropriate mediation give rise to work stoppages which cause agency of the proposed award of a new delays in the timely performance of imcontract, or the increase in quantities or portant contracts. The contracting officer scope of work under existing contract, should impress on the contractor that totaling $5 million or more to be per he will be held accountable for delays formed at a facility involved in an ac that are reasonably avoidable. It should tual or imminent work stoppage. The be emphasized that the standard conHeadquarters, Labor Relations Office of tract clauses dealing with default, exthe Department concerned, will monitor cusable delays, etc., do not relieve the information concerning proposed con- contractor for delays that are within his tract awards by using standard Depart or his subcontractors' control, such as mental reports of prior notification of may be the case with delays precipitated contract awards. The reports will be used by an unfair labor practice of the conto initiate consultation with the National tractor. In addition, a delay caused by a Office of the Federal Mediation and Con strike which the contractor could not ciliation Service or other appropriate reasonably prevent can be excused only mediation agency. After such consulta- to the extent that it does not go beyond tion, a determination will be made the point at which a reasonably diligent whether the announcement of the con contractor could resume the delayed tract award would have a detrimental performance by ending the strike by such effect on labor-management negotia means as: Contractor could resume the tions. If no mediation agency is involved delayed performance by ending the strike in the labor-management negotiations, by such means as: the Labor Relations Office at Depart (1) Filing a charge with the National mental level will provide advice in the Labor Relations Board so as to permit the above determination; or

NLRB to seek injunctive relief in court; (4) Seeking to obtain such voluntary

(2) Recourse to the procedures of the agreement between management and Federal Mediation and Conciliation Serylabor as will permit, notwithstanding the ice, or other available Government progeneral continuance of the dispute, un cedures; or interrupted procurement of military

(3) Use of the National Joint Board supplies and services, provided such for the Settlement of Jurisdictional Disactivity does not involve the Department putes, or other private Boards or orgain the merits of a labor difference or nizations for the settlement of disputes dispute.

(d) The normal and regular functions (30 F.R. 6003, Apr. 29, 1965, as amended at

of inspection at the plant of a military 35 F.R. 6834, Apr. 30, 1970)

supplier, as required during the perform8 12.101-2

ance of a contract, shall be continued Contract pricing and admin

without regard to the existence at such istration.

plant of a labor dispute, strike, or picket (a) Nothing in § 12.101–1 should be line. Inspection should not be performed construed to relieve a contracting officer if there is reason to believe that the from his responsibility to achieve effi physical safety of the individual inspeccient contract pricing and administra tor may be endangered thereby. It is tion.

emphasized that inspection personnel in (b) Contractor labor policies and com

the discharge of their duties, consistent pensation practices, whether or not they

with the policy of § 12.101-1(e), shal! are provided for in labor-management

refrain from taking or expressing a posiagreements, are not an acceptable basis

tion upon the merits of any dispute befor allowance of cost in cost-reimburse

tween labor and private management. ment-type contracts or for recognition of

127 F.R. 3453, Apr. 11, 1962, as amended at costs in pricing fixed-price-type con

30 F.R. 6004, Apr. 29, 1965; 33 F.R. 19923, tracts if and insofar as they result in Dec. 28, 1968)

$ 12.101-3 Reporting of labor disputes. When strikes affect AFLC programs, con

tracts, or activities, a copy of the report (a) The responsible military com

shall be sent directly to the AFLC buying mander or contracting officer or the rep

activity. No copies shall be sent to Headresentative of either shall obtain and

quarters AFLC unless specifically retransmit information relating to poten

quested.) An information copy of initial tial or actual labor disputes which may

and weekly reports shall be sent to Headinterfere with performance of any con

quarters, AFSC (SCKML), Andrews Air tract within his cognizance.

Force Base, Washington, D.C. 20331. (b) Whenever it is determined that

Consolidated weekly reports shall be subsuch an interference is likely to occur,

mitted by AFSC to Headquarters USAF he shall notify all offices listed below for

(AFSPPDA). Initial and subsequent rethe affected Department, except as pro

ports containing all the information imvided in paragraph (d) of this section:

mediately available shall be submitted (1) Reports involving Army contracts.

promptly after a work stoppage occurs. Reports shall be submitted to the Head

(4) Reports involving Defense Supply of the Procuring Activity concerned

Agency contracts. Reports shall be subwith information copies to intermedi

mitted to the head of the procuring ate procurement offices. Simultaneous

activity concerned. Only those disputes, ly, copies of each report shall be sent

stoppages, or threatened stoppages directly to the Assistant Secretary of the

which, in the opinion of the head of the Army (Installations and Logistics),

procuring activity, are of sufficient im. ATTN: Labor Advisor, and to ODCSLOG,

portance to warrant attention of higher ATTN: Chief, PEMA Execution Division.

authority shall be reported, in duplicate, (2) Reports involving Navy contracts.

to the labor advisor, Defense Supply Reports shall be submitted simultane

Agency, as prescribed in § 12.101-4. ously to the Chief of Naval Material,

(c) Labor disputes should be reported Attention: Labor Relations Advisor

on DD Form 1507, Work Stoppage Re(MAT 02L); Head of the Procuring

port. An initial report should be subActivity concerned; cognizant contract

mitted when a work stoppage due to a ing officers; inspection offices concerned;

labor dispute is imminent or when such status control activities; and the Deputy Commander for Transportation

work stoppage occurs and thereafter (NAVSUP 05), Naval Supply Systems

when a significant change occurs in the

dispute situation. Command, when contracts involve (i)

(d) In cases where the responsible packing, crating, and drayage of household goods: and (ii) stevedoring services individual originating the report is outat naval activities.

side the Military Department which (3) Reports involving Air Force con placed the contract, he shall give notice tracts. The responsible military com to the procuring office (which shall procmander, the contracting officer, or the ess the notice in accordance with (b) representative of either, shall submit re

above) and to the appropriate Departports as follows:

mental headquarters labor relations office (i) Reports relating to any missile or

(for the Army, the Labor Advisor, OASA test site or other high priority Air Force

(I&L); for the Navy, Chief of Naval program as designated by Hq USAF or

Material, Attention: Labor Relations Hq AFSC shall be submitted daily by

Advisor; for the Air Force, Headquarters electrical transmission to Hq AFSC USAF, AFSPPDA; for Defense Supply (SCKML) with copies to SAMSO

Agency, Labor Advisor, DSA). (SMKIP-1), Norton Air Force Base,

(e) Reports shall be made to the Office Calif. 92409; SAMSO and AFCMD both of the Secretary of Defense: located at Air Force Unit Post Office, Los (1) Individual cases. In any case Angeles, Calif. 30045; Hq SAC (DM6B), where a Military Department determines Offutt Air Force Base, Omaha, Nebr. that a labor dispute significantly affects, 68113; and Hq USAF (AFSPPDA), or threatens to affect, an important proWashington, D.C. 20330.

curement, the Department concerned (ii) Reports of disputes not directly shall notify the Director, Production affecting missile or test sites or other Services, OASD (Installations and Logishigh-priority programs shall be sub- tics), by furnishing an information copy mitted when the dispute arises and of DD Form 1507. weekly thereafter to the major air com (2) Weekly reports. A weekly report mand responsible for the program, con- shall be made by each Military Departtract, or activity affected. (Exception: ment to the Director, Production Sery

« PreviousContinue »