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ices, OASD (Installations and Logistics), (d) Reports submitted in accordance briefly indicating those disputes which with paragraph (c) of this section shall threaten important military programs be developed by the Headquarters Labor and any actions taken in connection Relations Office concerned and shall therewith. Negative reports are not cover the following areas of fact, as required.

appropriate: (30 F.R. 6004, Apr. 29, 1965, as amended at

(1) Description of military program, 30 F.R. 14092, Nov. 9, 1965; 33 F.R. 7401, May project, or service. Identify item, project, 18, 1968; 34 F.R. 13846, Aug. 29, 1969; 35 F.R.

or service which will be or is being af6834, Apr. 30, 1970)

fected by the work stoppage, describing $ 12.101-4. Impact of labor disputes on its normal use and current functions in defense programs.

combat, combat support, or deterrent

operations. For components or raw ma(a) Each Military Department shall

terials identify the end item(s) for which determine the degree of impact of poten

used. tial or actual labor disputes on its own

(2) Requirements and assets. State reprograms and requirements, considering

quirements and assets in appropriate deamong others the following factors:

tail in terms commonly used by the DOD (1) Whether the dispute involves a

component. product, project, or service which must be obtained in order to meet schedules

(i) For “production programs” include

requirements for each using military for urgently needed military programs or

service. Where applicable, state in detail requirements; or

production schedules, inventory objec(2) Whether alternative sources of

tives, assets against these objectives, and supply for the product, project, or serv

critical shortages. For spares and highly ice involved are reasonably available to fulfill the requiremeni or program in

expendable items, such as ground and air time to maintain essential military

ammunition, show usage (consumption)

rates and assets in absolute terms and schedules.

in terms of daily, weekly, or monthly sup(b) Within each Military Department,

plies. For components, include requirethe procuring activity involved shall ob

ments for spares. tain and develop data reflecting the im

(ii) For “projects” describe the potenpact of a dispute on requirements and

tial adverse effects of a delay in meeting programs. Upon determining the impact,

schedules and explain how a security disthe Head of the Procuring Activity shall

advantage would result from such a submit through appropriate channels a

delay. Attention should be given to report of his findings, together with rec

feature any relative loss in balance of ommendations, to the headquarters

strength vis-a-vis potential enemies' labor relations office originally notified

capabilities. pursuant to [ 12.101-3(b). Such reports

(iii) For “services,” describe how a shall be in narrative form and shall in

loss or interruption affects ability to clude the following information:

support defense operations in terms of (1) Location of dispute and name of

traffic requirements, assets, testing procontractor or subcontractor involved;

grams, etc. (2) A statement indicating the degree

(3) Possible measures to minimize of impact, relating specific items or con

strike impact. Describe: (i) Capabilities, struction involved to the programs or re

if any, to substitute items or to use alterquirements affected;

nate sources. (Note how many other (3) Identity of alternate sources avail facilities are available and the relative able to furnish supply or service within capabilities of such facilities in meeting the time required; and

total requirements.); (4) A description of any action taken (ii) How much time would be required to reduce impact.

to replace the loss of the facilities or (c) Reports of impact shall be made service affected by a work stoppage; and to the Office of the Assistant Secretary of (iii) Feasibility of transfer of assets Defense (Installations and Logistics): from theater to theater to relieve deficits (1) Upon specific request; or

in some areas of urgency. (2) When considered by the Military (4) Conclusion; impact on operations Department to be of sufficient urgency to of a 1530, of a 30-60, and of a 60-90 warrant the attention of the Assistant day work stoppage. Degree of criticality Secretary of Defense (Installations and of a program, project or service resulting Logistics).

from a work stoppage will be projected on

a calendar basis, indicating the increased impact, if any, as the stoppage lengthens. Criticality is measured by the time required for the work stoppage to have an effect on operational capability. This time must be stated in terms of days. (35 F.R. 6834, Apr. 30, 1970] § 12.101-5 Movement and removal of

items from facilities affected by work

stoppages. (a) It is the policy of the Department of Defense with respect to the movement of items from facilities affected by work stoppages to avoid the use of force or the appearance of force and to prevent the occurrence of incidents which will detrimentally affect relations with labor and management.

(b) Materials which the contractor is unable to deliver because of a work stoppage at the plant, and the delivery of which is urgent and critical to an important program, may be obtained in accordance with procedures set forth below:

(1) Subject to § 12.101-1(d), the procuring contracting officer or his representative, upon the direction of the Departmental Headquarters Labor Relations Office, shall furnish a written request for removal of the material to Contract Administration Office (CAO) having cognizance over the plant. The Commander of the cognizant CAO or his representative shall attempt to work out an arrangement agreeable to both management and the labor representatives involved for shipment by normal means of urgently required material. Prior to making any removal, the Departmental Headquarters Labor Relations Office will solicit the opinion of the National Office of the Federal Mediation and Conciliation Service or other appropriate mediation agency as to the effect the movement of items would have on negotiations. The procuring contracting officer's request will include the following:

(i) A statement as to the urgency and criticality of the system, subsystem or item needed;

(ii) Description of items to be moved (Nature of item, amount, approximate weight and cubic feet, contract number, item number, etc.);

(iii) Mode of transportation by which items are to be moved if different from contract and whether by Government or commercial bill of lading; and

(iv) Destination of material if different than contract.

(2) If an arrangement in accord with subparagraph (1) cannot be made, the Commander of the CAO or his representative, after obtaining approval from the responsible Departmental Headquarters Labor Relations Office, may seek the concurrence of parties to the dispute to permit movement of the required material by military vehicles with military personnel to the extent needed. On receipt of such concurrences, he may proceed to make necessary arrangements to move the material.

(3) If satisfactory arrangements under subparagraph (1) and (2) cannot be made, the matter shall be referred to the responsible Departmental Headquarters Labor Relations Office with the information required by $ 12.101-4(b). If that office is unsuccessful in obtaining the voluntary concurrences of the parties for movement of the material involved and further action to obtain the material is deemed necessary, the matter shall be referred to the Director, Production Sevices, Office of the Assistant Secretary of Defense (Installations and Logistics).

(4) Upon review and verification that the material is urgently or critically needed and cannot be moved with the consent of the parties, the OASD (Installations and Logistics) may request the Secretary of the Department to order removal of the material from the plant or plants involved.

(c) When the requirements of two or more departments are or may become involved in the movement or removal of the material, the CAO shall coordinate such requirements with the departments concerned. 130 F.R. 6005, Apr. 29, 1965, as amended at 35 F.R. 6834, Apr. 30, 1970) § 12.101-6 Procurement of stevedoring

services during labor disputes. Where stevedoring services are furnished by a contractor to a Military Department, and the performance under the contract, although urgently required, is delayed through a labor dispute, the following procedures shall be utilized in the order of priority listed. Each successive procedure shall be used only when the preceding steps are inadequate.

(a) An attempt shall be made to have management and labor voluntarily agree to exempt military supplies from the labor dispute by continuing the movement of such material.

(b) Vessels shall be diverted to alternate ports able to provide necessary ste. vedoring services.

(c) Consideration shall be given to contracting with reliable alternative sources of supply within the stevedoring industry.

(d) Civil Service stevedores shall be utilized to perform the work theretofore performed by contract stevedores.

(e) Military personnel shall be utilized to handle the cargo which was being handled by contract stevedores prior to the labor dispute.

(f) Where the exigencies of a situation require deviation from the procedures outlined above. Departmental labor relations headquarters offices set forth in $ 12.101-3(d) shall be notified promptly. Such offices shall report the action taken to the Industrial Relations Advisor, OASD (I&L). [30 F.R. 6005, Apr. 29, 1965, as amended at 35 F.R. 6835, Apr. 30, 1970) & 12.102 Overtime. [32 F.R. 12099, Aug. 23, 1967] § 12.102–1 Definitions.

As used throughout $$ 12.102–12.102–7:

(a) “Normal workweek" and "normal workday" mean, generally, a workweek of 40 hours and a workday of 8 hours, respectively: Provided, That in any area outside the United States, its possessions, and Puerto Rico, a workweek longer than 40 hours, or a workday longer than 8 hours, will be considiered normal (1) if such workweek or workday does not exceed that which is normal for such area, as determined by local custom, tradition, or law and (2) if bours worked in excess of 40 in such workweek, or 8 in such workday, are not compensated at a premium rate of pay.

(b) “Overtime” means time worked by a contractor's employee in excess of the employee's normal workweek or normal workday.

(c) "Overtime premium" means the difference between the contractor's regular rate of pay to an employee for the shift involved and the higher rate paid for overtime. It does not include shift premium which is the difference between the compensation paid to an employee at the contractor's regular rate of pay for the base shift and that paid at the regular rate of pay for extra-pay shift work. (32 F.R. 12099, Aug. 23, 1967)

§ 12.102-2 Policy.

It is the policy of the Department of Defense that all contracts will be performed, so far as practicable, without the use of overtime, particularly as a regular employment practice, except where lower overall costs to the Government will result. Contractors should utilize whatever work schedule results in the lowest overall cost to the Government consistent with contract delivery and performance requirements. Extra-pay shifts and multi-shift work should be scheduled, as required, to achieve these objectives. In the negotiation of contracts, overtime premiums will be recognized in establishing a fixed price or estimated cost only to the extent consistent with the needs of the Government for the supplies or services being procured. (32 F.R. 12099, Aug. 23, 1967) $ 12.102–3 Approval of overtime pre

miums. (a) Approval of overtime premiums is required:

(1) By the contracting officer under time and material and labor-hour contracts (see paragraph (a) (3) of the clause set forth in $ 7.901-6 of this chapter); and

(2) By the approving official (see $ 12.102-4(e)), (1) prior to execution of cost reimbursement type contracts containing the clause set forth in $ 12.102–6, for any overtime to be included in paragraph (d) of the clause, and (ii) prior to modification of such a contract for any increase in the overtime included in paragraph (d) of the clause.

(b) Approval of overtime premiums under contracts other than those referenced in paragraph (a) of this section shall not be required. 132 F.R. 12099, Aug. 23, 1967) $ 12.102–4. Approval of overtime pre

miums in certain cost-reimbursement

type contracts. (a) To prevent uneconomic use of overtime, at Government expense, the clause set forth in $ 12.102–6 shall be included in all cost-reimbursement type contracts in excess of $100,000, except cost-reimbursement type contracts for the operation of vessels and cost-plus-incentive-fee contracts having a cost incentive which provides for a swing from target fee of at least +3 percent and a contractor's share of cost of at least 10

percent. Whenever this clause is used, the need for such overtime and forward the procedural requirements of this sec the request, with his comments, as ex

peditiously as possible to the PCO. (b) An amount for overtime premiums Thereupon, the PCO, if he desires that at Government expense may be included the requested overtime be approved in in paragraph (d) of the clause set forth whole or in part, shall, unless a prior in § 12.102–6 when the use of overtime authorization is sufficient to cover the has been approved by an official desig overtime requested, request the approval nated as provided in paragraph (e) of of the appropriate official designated as this section. Only overtime premiums for provided in paragraph (e) of this section work in those departments, sections, etc., and, as expeditiously as possible, modify of the contractor's plant which have been paragraph (d) of the clause to reflect the individually evaluated and the necessity approval. for overtime confirmed, will be considered (e) The Deputy or Assistant Deputy for approval, and then only for overtime for Procurement, Office of the Assistant premiums not reimbursable under the Secretary of the Army (Installations and exceptions contained in paragraph (a) Logistics), for the Army; the Deputy (ii) of the clause, Approval may be Chief of Naval Material (Procurement), granted when such official determines for the Navy; the Director of Procurein writing that overtime is necessary: ment Policy, Headquarters, USAF, for the

(1) To meet delivery or performance Air Force; and the Executive Director for schedules, and such schedules are deter Procurement and Production, for the Demined to be consistent with essential fense Supply Agency, are authorized, military objectives;

without power of delegation, to designate (2) To make up for delays beyond the without power of redesignation, officers control and without the fault or negli and civilian officials for the purpose of gence of the contractor; or

approving overtime premiums at Gov(3) To eliminate foreseeable produc ernment expense. Such approval may be tion bottlenecks of an extended nature for an individual contract, project, or which cannot be eliminated in any other program, or for a plant, division, or comway.

pany, as most practicable, and shall ordi(c) When, during negotiation, it be- narily be prospective, but may be comes apparent that overtime will be re retroactive when justified by the cirquired during the performance of the cumstances. When two or more purchascontract and the contract will contain ing offices have current contracts at a the clause in § 12.102-6, the PCO shall single facility, and the approval of oversecure from the contractor a request time by one purchasing office will affect substantially in accordance with the re the performance or cost of contracts of quest procedures in paragraph (c) of another, the approving official will obtain such provision for all overtime to be the concurrence of other appropriate used during the life of the contract, to approving officials and seek agreement the extent that it can be estimated with as to the contracts under which overtime reasonable certainty. If the contem premiums will be approved. If the applated overtime premium could affect proving officials do not agree within a the costing of other work performed by reasonable time as to the action to be the contractor or is significant in taken, a decision shall be obtained amount, the PCO may avail himself of through normal channels. Ordinarily, in the advisory services of the cognizant the absence of evidence to the contrary, Defense Contract Audit Agency office to a purchasing office may rely on the condetermine the proper accounting treat

tractor's statement that such approval ment of such premium. The PCO shall will not affect the performance, or payrequest from the appropriate official ments in connection with any contract designated, as provided in paragraph (e) of another purchasing office. of this section, approval for overtime 132 F.R. 12100, Aug. 23, 1967, as amended at premiums at Government expense. Upon

36 F.R. 7949, Apr. 28, 1971] receipt of such approval, the PCO $ 12.102-5 Contract administration. shall complete paragraph (d) of the clause.

(a) The cost of overtime premiums (d) During contract performance, re

under the clause set forth in § 12.102–6, quests for overtime, submitted pursuant and all overtime premiums under costto the clause in § 12.102-6, will be sub- reimbursement type contracts which do mitted to the ACO who shall evaluate not contain the clause set forth in

$ 12.102–6, shall be allowed only to the extent the amount thereof is reasonable and properly allocable to the work under the contract, in accordance with $ 15.201 of this chapter.

(b) In administration of contracts under which overtime has been approved pursuant to $ 12.102–4, the ACO and the cognizant audit activity shall review periodically the use of such overtime to assure that it is reasonable and properly allocable to work under the contract. (32 F.R. 12100, Aug. 23, 1967) § 12.102-6 Payment of overtime pre

miums clause. The following clause shall be used when required by $ 12.102-4(a). PAYMENT FOR OVERTIME PREMIUMS

(JUNE 1967) (a) Allowable cost shall not include any amount on account of overtime premiums except when (1) specified in (d) below or (ii) paid for work

(A) Necessary to cope with emergencies such as those resulting from accidents, natural disasters, breakdowns of production equipment, or occasional production bottlenecks of a sporadic nature;

(B) By indirect labor employees such as those performing duties in connection with administration, protection, transportation, maintenance, standby plant protection, operation of utilities, or accounting;

(C) In the performance of tests, industrial processes, laboratory procedures, loading or unloading of transportation media, and operations in fight or afloat, which are continuous in nature and cannot reasonably be interrupted or otherwise completed; or

(D) Which will result in lower overall cost to the Government.

(b) The cost of overtime premiums otherwise allowable under (a) above shall be al. lowed only to the extent the amount thereof is reasonable and properly allocable to the work under this contract.

(c) Any request for overtime, in addition to any amount specified in (d) below, will be for all overtime which can be estimated with reasonable certainty shall be used for the remainder of the contract, and shall contain the following:

(1) Identification of the work unit, such as the department or section in which the requested overtime will be used, together with present workload, manning and other data of the affected unit, sufficient to permit an evaluation by the Contracting Officer of the necessity for the overtime;

(i) The effect that denial of the request will have on the delivery or performance schedule of the contract;

(iii) Reasons why the required work cannot be performed on the basis of utilizing multi-shift operations or by the employment of additional personnel; and

(iv) The extent to which approval of overtime would affect the performance or payments in connection with any other Government contracts, together with any identifica. tion of such affected contracts.

(d) The Contractor is authorized to perform overtime, in addition to that performed under (a) (il), to the extent that the overtime premium does not exceed ------------

*Insert the amount, in dollars, agreed to during negotiations as representing the overtime premiums applicable to overtime not reimbursable under the exceptions contained in (a) (ii) of the clause. If it was agreed that the contract could be performed without the use of additional overtime, insert “Zero." (32 F.R. 12100, Aug. 23, 1967] 8 12.102–7 Construction contracts.

See § 18.111 of this chapter regarding expediting actions involving additional costs. (32 F.R. 12100, Aug. 23, 1967] $ 12.103 Federal and State labor re

quirements. (30 F.R. 6005, Apr. 29, 1965) $ 12.103–1 General.

The Department of Defense shall cooperate and encourage contractors to cooperate, to the fullest extent practicable, with Federal and State agencies responsible for enforcing labor requirements with respect to such matters as safety, health and sanitation, maximum hours and minimum wages, equal pay for women, and child and convict labor. (30 F.R. 6005, Apr. 29, 1965) $ 12.103–2 Applications for relaxation

of requirements. (a) Military Departments shall not initiate applications of any kind for suspension or relaxation of labor requirements. They may, however, support such applications by contractors or suppliers when all of the following circumstances and conditions have been met:

(1) The interested contractor or supplier has filed his application for relaxation of the laws, orders or regulations involved with the appropriate Governmental official charged with the enforcement of such labor requirements applicable to the contract involved;

(2) The required products or services are in short supply and unless the application is granted, production schedules for critically needed military material cannot be met;

(3) There is no alternative source of supply reasonably available to furnish

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