(a) Standard Form 99. Two copies of Standard Form 99 shall be prepared for contracts of $2,500 or more but less than $10,000 containing the clause required by 12.1004 (a), the initial order (if less than $10,000) under an indefinite delivery type contract or basic order agreement containing the clause required by § 12.1004 (a), and the initial call under a blanket purchase agreement containing the clause required by § 12.1004(a). Standard Form 99 shall be forwarded to the Department of Labor, Attention: Administrator, Wage and Hour and Public Contracts Divisions, Washington, D.C. 20210. The form shall be completed as follows:

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

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

(3) Item 9: Leave blank;

(4) Item 10: (i) 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 control, laundry and dry cleaning services), and (ii) Enter the heading "Detailed Description," and following this entry set forth a detailed description of the services to be performed; and

(5) Item 11: Enter the dollar amount of the contract, or the estimated dollar value with a notation "estimated" (if the exact amount is not known). If neither the exact nor the estimated dollar value is known, enter "Indefinte," or "Not to exceed $---‒‒‒.”

Supplies of Standard Form 99 are available in all GSA supply depots under stock number 7540-634-4049.

(b) DD Form 350. Awards of service contracts of $10,000 or more and orders of $10,000 or more under indefinite delivery type contracts and basic ordering agreements are reported to the Department of Labor by the Office of the Secre

tary of Defense from information

contained in the Individual Procurement Action Report (DD Form 350). Therefore, the contracting officer need not report such awards directly to the Department of Labor.

§ 12.1005-6 Department of Labor Form SC-1.

The contracting officer shall furnish the contractor with Department of Labor Form SC-1 (combination letter and poster) at the time of contract award and shall ensure that the form is in the possession of the contractor for appropriate posting prior to performance of the contract. The form advises employees of their benefits under the Act and satisfies the notice requirements in paragraph (d) of the contract clause prescribed in § 12.1004 (a). Contractors are required to post the form at a prominent and accessible place at the worksite. Supplies of the form may be obtained from the Wage and Hour and Public Contracts Divisions, Department of Labor, Washington, D.C. 20210.

§ 12.1005-7 Inquiries concerning the Act.

Contractors or contractor employees who inquire concerning the Act shall be advised that rulings regarding 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 (see § 12.607).

§ 12.1005-8 Contract modifications.

(a) Bilateral contract modifications. Generally, a bilateral contract modification affecting the scope of the work is regarded as a new contract for purposes of the Act and the regulations thereunder. Therefore, prior to entering into such modification, the contracting officer shall forward Standard Form 98 to the Administrator, in accordance with the procedure set forth in § 12.1005–2(a), except that:

(1) In the "Estimated Solicitation Date" block, enter the date the information is needed; and

(2) In Block 4, enter "Modification of Existing Contract for‒‒‒‒

(Describe type

Services."

of services) Bilateral contract modifications that are unrelated to the labor requirements of a contract shall not be deemed to create a new contract for purposes of the Act, nor shall insignificant changes related to labor requirements.

(b) Extension of contract through exercise of option or otherwise. A new contract shall be deemed entered into for purposes of the Act when the term of an existing contract is extended, pursuant to an option clause or otherwise, so that the contractor furnishes services over an extended period of time rather than being granted extra time to fulfill his original commitment. Prior to extending the term of the contract, the Contracting Officer shall forward Standard Form 98 as provided in § 12.1005-2 (a) in paragraph (a) of this section, inserting appropriate wording in Block 4. § 12.1005-9 Withholding of contract

payments and contract termination.

(a) Withholding. (1) As provided by the Act, any violation of the contract stipulations required under paragraphs (a) and (c) of the contract clause set forth in § 12.1004(a) or under the contract clause set forth in § 12.1004 (b) 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. Upon the written request of the Department of Labor at a level no lower than a District Director, so much of the accrued payment due on the contract or any other contract between the Government prime contractor and the Federal Government, provided such other contract is not assigned pursuant to 31 U.S.C. 203 or 41 U.S.C. 15, shall be withheld as is necessary to pay such employees. Such withheld sums shall be held in a deposit fund. On order of the Administrator, any compensation which the head of 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 remaining amount of underpayments. Any sums thus recovered shall be held in the deposit fund and shall be paid, on 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 § 12.1004 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.

§ 12.1005-10

Cooperation with the Department of Labor.

The contracting officer 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 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 employer. § 12.1005-11 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 of firms which have been found to be in violation of the Act. Unless the Secretary of Labor otherwise 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. § 12.1006

Labor standards enforcement

report. See 12.107.

13.802 Assignment of contracts for property administration.

13.803 Records of Government property.

AUTHORITY: The provisions of this Part 13 issued under secs. 2202, 2301-2314, 70A Stat. 120, 127-133; 5 U.S.C. 301, 10 U.S.C. 2202, 2301-2314.

SOURCE: The provisions of this Part 13 appear at 30 F.R. 1744, Feb. 9, 1965, unless otherwise noted.

§ 13.000 Scope of part.

This part sets forth the policies of the Department of Defense with respect to providing property for use by contractors in connection with procurement by the Military Departments and references applicable contract clauses for contracts other than facilities contracts. (For facilities contract clauses, see subpart G, part 7 of this chapter.) This section does not apply to the lease of property to contractors under 10 U.S.C. 2667 or other leasing authorities, except as to nonGovernment use of industrial plant equipment under § 13.405 or to property to which the Government has acquired a lien for title solely as a result of partial, advance or progress payments. [36 F.R. 7949, Apr. 28, 1971]

Provide, as used in the context of such phrases as "Government property provided to the contractor" and "Government-provided property", means either to furnish, as in "Government-furnished property", or to acquire, as in "contractor-acquired property."

§ 13.101-4 Material.

Material means property which may be incorporated into or attached to an end item to be delivered under a contract or which may be consumed or expended in the performance of a contract. It includes, but is not limited to, raw and processed material, parts, components, assemblies, and small tools and supplies which may be consumed in normal use in the performance of a contract. § 13.101-5 Special tooling.

Special tooling means all jigs, dies, fixtures, molds, patterns, taps, gauges, other equipment and manufacturing aids, and replacements thereof, which are of such a specialized nature that, without substantial modification or alteration, their use is limited to the development or production or particular supplies or parts thereof, or the performance of particular services. The term includes all components of such items, but does not include:

(a) Consumable property;

(b) Special test equipment; or

(c) Buildings, nonseverable structures (except foundations and similar improvements necessary for the installation of special tooling), general or special machine tools, or similar capital items.

§ 13.101-6 Special test equipment.

Special test equipment means electrical, electronic, hydraulic, pneumatic, mechanical or other items or assemblies of equipment, which are of such a specialized nature that, without modification or alteration, the use of such items (if they are to be used separately) or assemblies is limited to testing in the development or production of particular supplies or parts thereof, or in the performance of particular services. term "special test equipment" includes all components of any assemblies of such equipment, but does not include:

(a) Consumable property;
(b) Special tooling; or

The

Facilities means industrial property (other than material, special tooling, military property, and special test equipment) for production, maintenance, research, development, or test, including real property and rights therein, buildings, structures, improvements, and plant equipment (see § 30.2 of this chapter, item 102.10).

[33 F.R. 274, Jan. 9, 1968]

§ 13.101-9 Government production and research property.

Government production and research property means:

(a) Government-owned facilities, (b) Government-owned special test equipment, and

(c) Special tooling to which the Government has title or the right to acquire title.

Facilities contract means a contract under which Government facilities, and occasionally special tooling and special test equipment, are provided to a contractor or a subcontractor by the Government for use in connection with the performance of a separate contract or contracts for supplies or services.

§ 13.101-12 Facilities project.

Facilities project means an undertaking by the Government to provide facilities to a contractor for the performance of a Government contract or subcontract or to modernize or replace facilities for the same purpose.

§ 13.101-13 Nonprofit organization.

Nonprofit organization means any corporation, foundation, trust, or institution operated for scientific, educational, or medical purposes, not organized for profit, no part of the net earnings of which inures to the benefit of any private shareholder or individual.

§ 13.102 Responsibility and liability for Government property.

§ 13.102-1 Prime contractors.

It is the policy of the Department of Defense not to hold a contractor responsible for loss of or damage to Government property caused by certain perils when such Government property is provided under:

(a) A facilities contract;

(b) A negotiated, fixed-price-type procurement contract for which the price is not based on (1) adequate price competition, (2) established catalog or market prices of commercial items sold in substantial quantities to the general public (see 3.807-1(b)), or (3) prices set by law or regulation; or

(c) A cost-type procurement contract. [31 F.R. 13336, Oct. 14, 1966]

§ 13.102-2 Subcontractors.

(a) If Government property is provided to a subcontractor directly by the Government, § 13.102-1 shall apply.