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CHAPTER 50—DIVISION OF PUBLIC CONTRACTS

DEPARTMENT OF LABOR

Part 50–201 50–202 50–203 50-210

General regulations.
Minimum wage determinations.
Rules of practice.
Statements of general policy and interpretation not directly related to

regulations.

Note: Other regulations issued by the Department of Labor appear in Title 29.

PART 50–201—GENERAL REGULA

TIONS Sec. 50–201.1 Insertion of stipulations. 50–201.2 Statutory exemptions. 50–201.101 Manufacturer or regular dealer. 50–201.102 Employees affected. 50–201.103 Overtime. 50-201.104 Dealer as agent of undisclosed

principal. 50-201.105 Protection against uninten

tional employment of under

age minors. 50–201.106 Hours worked. 50-201.201 Breach of stipulations. 50–201.501 Records of employment. 50–201.502 Records of injury frequency

rates. 50-201.601 Requests for exceptions and ex-.

emptions. 50-201.602 Decisions concerning exceptions

and exemptions. 50–201.603 Administrative exemptions. 50–201.701 Definition of “person.” 50–201.1101 Minimum wages. 50–201.1102 Tolerance for handicapped

workers. 50–201.1103 Tolerance for apprentices. 50–201.1201 Reports of contracts awarded. 50–201.1202 Complaints. 50–201.1203 Other contracts.

AUTHORITY: $ $ 50–201.1 to 50–201.1203 issued under sec. 4, 49 Stat. 2038; 41 U.S.C. 38. Interpret or apply sec. 6, 49 Stat. 2038, as amended: 41 U.S.C. 40.

§ 50–201.1 Insertion of stipulations.

Except as hereinafter directed in every contract made and entered into by an executive department, independent establishment, or other agency or instrumentality of the United States, or by the District of Columbia, or by any corporation all the stock of which is beneficially owned by the United States, for the manufacture or furnishing of materials, supplies, articles, and equipment, with ect to which invitations for bids are issued on or after September 28, 1936, the contracting officer shall cause to be inserted or incorporated by reference in such invitation or the specifications and in such contract, the following stipulations:

REPRESENTATIONS AND STIPULATIONS PURSUANT

TO PUBLIC LAW 846, 74TH CONGRESS

(a) The contractor is the manufacturer of or a regular dealer in the materials, supplies, articles, or equipment to be manufactured or used in the performance of the contract.

(b) All persons employed by the contractor in the manufacture or furnishing of the materials, supplies, articles, or equipment used in the performance of the contract will be paid, without subsequent deduction or rebate on any account, not less than the minimum wages as determined by the Secretary of Labor to be the prevailing minimum

wages for persons employed on similar work or in the particular or similar industries or groups of industries currently operating in the locality in which the materials, supplies, articles, or equipment are to be manufactured or furnished under the contract: Provided, however, that this stipulation with respect to minimum wages shall apply only

purchases or contracts relating to such industries as have been the subject matter of a determination by the Secretary of Labor.

(C) No person employed by the contractor in the manufacture or furnishing of the materials, supplies, articles, or equipment used in the performance of the contract shall be permitted to work in excess of 8 hours in any 1 day or in excess of 40 hours in any week unless such person is paid such applicable overtime rate as has been set by the Secretary of Labor: Provided, however, that the provisions of this stipulation shall not apply to any employer who shall have entered into an agreement with his employees pursuant to the provisions of paragraphs 1 or 2 of subsection (b) of section 7 of an act entitled "The Fair Labor Standards Act of 1938": Provided, further, That in the case of such an employer, during the life of the agreement referred to the applicable overtime rate set by the Secretary of Labor shall be paid for hours in excess of 12 in any 1 day or in excess of 56 in any 1 week and if such overtime is not paid, the employer shall be required to compensate his employees during that week at the applicable overtime rate set by the Secretary of Labor for hours in excess of 8 in any 1 day or in excess of 40 in any 1 week.

(d) No male person under 16 years of age and no female person under 18 years of age and no convict labor will be employed by the contractor in the manufacture or production or furnishing of any of the materials, supplies, articles, or equipment included in the contract.

(e) No part of the contract will be performed nor will any of the materials, supplies, articles, or equipment to be manufactured or furnished under said contract be manufactured or fabricated in any plants, factories, buildings, or surroundings or under working conditions which are unsanitary or hazardous or dangerous to the health and safety of employees engaged in the performance of the contract. Compliance with the safety, sanitary, and factory inspection laws of the State in which the work or part thereof is to be performed shall be prima facie evidence of compliance with this paragraph.

(f) Any breach or violation of any of the foregoing representations and stipulations shall render the party responsible therefor liable to the United States of America' for liquidated damages, in addition to damages for any other breach of the contract, in the sum of $10 per day for each male person under 16 years of age or each female person under 18 years of age, or each convict laborer

knowingly employed in the performance of the contract, and a sum equal to the amount of any deductions, rebates, refunds, or underpayment of wages due to any employee engaged in the performance of the contract; and, in addition, the agency of the United States entering into the contract shall have the right to cancel same and to make openmarket purchases or enter into other contracts for the completion of the original. contract, charging any additional cost to the original contractor. Any sums of money due to the United States of America by reason of any violation of any of the representations and stipulations of the contract as set forth herein may be withheld from any amounts due on the contract or may be recovered in a suit brought in the name of the United States of America by the Attorney General thereof. All sums withheld or recovered as deductions, rebates, refunds, or underpayments of wages shall be held in a special deposit account and shall be paid, on order of the Secretary of Labor, directly to the employees who have been paid less than minimum rates of pay as set forth in such contracts and on whose account such sums were withheld or recovered: Provided, That no claims by employes for such payments shall be entertained unless made within 1 year from the date of actual notice to the contractor of the withholding or recovery of such sums by the United States of America,

(g) The contractor shall post a copy of the stipulations in a prominent and readily accessible place at the site of the contract work and shall keep such employment records as are required in the regulations under the act available for inspection by authorized representatives of the Secretary of Labor.

(h) The contractor is not a person who is ineligible to be awarded Government contracts by virtue of sanctions imposed pursuant to the provisions of section 3 of the act.

(i) No part of the contract shall be performed and none of the materials, articles, supplies or equipment manufactured or furnished under the contract shall be manufactured or furnished by any person found by the Secretary of Labor to be ineligible to be awarded Government contracts pursuant to section 3 of the act.

(j) The foregoing stipulations shall be deemed inoperative if this contract is for a definite amount not in excess of $10,000. [7 F.R. 4494, June 13, 1942, as amended at 7 F.R. 11086, Dec. 30, 1942, 11 F.R. 6233, June 8, 1946. Redesignated at 24 F.R. 10952, Dec. 30, 1959]

NOTE: The following modifications with respect to $ 50–201.1 have been issued:

$ 50–201.1 was modified by permitting the award of contracts between contracting agencies of the United States and Defense Production Pools approved by the Adminis

trator of the Defense Production Administration without the inclusion of the representations and stipulations of section 1(a) of the act by Order, Secretary of Labor, 16 F.R. 5847, June 19, 1951.

"Defense Production Pools" was changed to "Small Business Production Pools", and the contracts approved by the Administrator of the Small Defense Plants Administration were also exempted from the inclusion of the representations and stipulations of section (1)(a) of the act by Order, Secretary of Labor, 17 F.R. 8925, Oct. 4, 1952.

$ 50–201.1 was modified by permitting an exception from the operation of all representations and stipulations of section 1 of the act contained in any contract for the procurement of the following canned fruits and vegetables for the Armed Forces of the United States and the Veterans' Administration awarded between the date hereof until and including December 31, 1953: Provided, That,

(1) The exception from the contract stipulations and representations of section 1 of the act shall not be available in weeks in which the canning of fruits and vegetables required under the contract is not exempt under sections 7(b) (3) or 7(c) of the Fair Labor Standards Act, as amended; and

(2) The exception from the child labor stipulations required by sections 1(d) and 2 of the act shall not be available with respect to children under sixteen years of age knowingly employed in the performance of any such contract:

Apples, canned.
Applesauce, canned.
Apricots, canned.
Asparagus, canned.
Beans, lima, canned.
Beans, string, canned.
Beets, canned.
Berries, canned.
Carrots, canned.
Catsup, tomato.
Cherries, sour, canned.
Cherries, sweet, canned.
Corn, cream style, canned.
Corn, whole grain, canned.
Figs, canned.
Fruit cocktail, canned.
Grapefruit, canned.
Juice, citrus.
Juice, grape.
Juice, pineapple.
Peas, green, canned.
Peaches, canned.
Pears, canned.
Pineapple, canned.
Plums (prunes), canned.
Potatoes, sweet, canned.
Pumpkin, canned.
Puree, tomato.
Sauce, cranberry.
Spinach, canned.
Tomatoes, canned.
Tomato Juice, canned.
Tomato Paste, canned.

$ 50–201.2 Statutory exemptions.

Inclusion of the stipulations enumerated in $ 50–201.1 is not required in the following instances:

(a) Where the contracting officer is authorized by the express language of a statute to purchase “in the open market”, or where a purchase of articles, supplies, materials or equipment, either in being or virtually so, is made without advertising for bids under circumstances bringing such purchase within the exception to the General Purchase Statute, R.S. 3709, that is, where immediate delivery is required by the public exigency.

(b) Where the contract relates to perishables, including dairy, livestock, and nursery products ("perishables” covers products subject to decay or spoilage and not products canned, salted, smoked, or otherwise preserved);

(c) Where the contract relates to agricultural or farm products processed for first sale by the original producers;

(d) Where the contract is by the Secretary of Agriculture for the purchase of agricultural commodities or the products thereof;

(e) Where the contract is with a common carrier for carriage of freight or personnel by vessel, airplane, bus, truck, express, or railway line, where published tariff rates are in effect;

(f) Where the contract is for the furnishing of service by radio, telephone, telegraph, or cable companies, subject to the Federal Communications Act of 1934 (48 Stat. 1064 as amended; 47 U.S.C. Chapter 5). (Regs. 504, 1 F.R. 1626, Sept. 19, 1933, as amended at 9 F.R. 8347, July 22, 1944. Redesignated at 24 F.R. 10952, Dec. 30, 1959

$ 50–201.101 Manufacturer or regular

dealer. A bidder or contractor shall be deemed to be a “manufacturer” or “regular dealer" within the meaning of the stipulation required by section 1(a) of the act and $ 50-201.1(a) if he falls within one of the following categories:

(a) A manufacturer is a person who owns, operates, or maintains a factory or establishment that produces on the premises the materials, supplies, articles, or equipment required under the contract and of the general character described by the specifications.

and whose principal business is such purchase and sale of such materials, supplies, articles, or equipment.

or

(b) A regular dealer is a person who owns, operates, or maintains a store, warehouse, or other establishment in which the materials, supplies, articles, or equipment of the general character described by the specifications and required under the contract are bought, kept in stock, and sold to the public in the usual course of business.

(1) A regular dealer in lumber and timber products, if a wholesale lumber dealer, may be a person who owns, operates, or maintains a place of business in which the materials, supplies, articles, or equipment of the general character described by the specifications and required under the contract are bought for the account of such person and sold to the public in the usual course of business: Provided, That at least more than 50 percent of his business is such purchase and sale of such materials, supplies, articles, or equipment; And provided further, That upon all orders to manufacturers for direct shipment to the United States he agrees to insert a notice to the manufacturer to the effect that the supplies are purchased for the United States and that the manufacturer is within the terms of $ 50-201.104 requiring compliance with the provisions of the Public Contracts Act.

(2) A machine tool dealer may be a person possessing, through contract or agreement with a manufacturer, the responsibility for selling that manufacturer's products, with respect to a specific territory and who is authorized by such manufacturer to offer its products and to negotiate and conclude contracts for the furnishing thereof: Provided, That upon all orders to manufacturers for direct shipment to the United States he agrees to insert a notice to the manufacturer to the effect that the supplies are purchased for the United States and that the manufacturer is within the terms of $ 50–201.104 requiring compliance with the provisions of the Public Contracts Act.

(3) A regular dealer in hay, grain, feed, or straw may be a person who owns, operates, or maintains a store, warehouse, or other place of business in which the materials, supplies, articles, or equipment of the general character described by the specifications and required under the contract are bought for the account of such person and sold to the public in the usual course of business,

(4) A regular dealer in raw cotton may be a person who owns, operates or maintains a store, warehouse, or other place of business in which materials, supplies, articles or equipment of the general character described by the specifications and required under the contract are bought for the account of such person and sold to the public in the usual course of business, and whose principal business is such purchase and sale of such materials, supplies, articles equipment.

(5) A regular dealer in green coffee may be a person who owns, operates or maintains a store, warehouse, or other place of business in which materials, supplies, articles or equipment of the general character described by the specifications and required under the contract are bought for the account of such person and sold to the public in the usual course of business, and whose principal business is such purchase and sale of such materials, supplies, articles or equipment.

(6) A regular dealer in petroleum may be a person who owns, operates, or maintains petroleum distribution equipment and a store, warehouse, or other place of business in which petroleum products of the general character described by the specifications and required under the contract are bought for the account of such person and sold to the public in the usual course of business, and whose principal business is such purchase and sale of such petroleum products.

(7) A regular dealer in agricultural liming materials may be a person who owns or controls the necessary equipment customarily required for delivering agricultural liming materials to farms or for spreading such materials on fields, who has made arrangements to purchase liming materials of the general character described by the specifications and required under the contract from a manufacturer, and who offers such material for sale to the public in the usual course of business.

(8) A regular dealer in tea may be an importer who owns, operates, or main. tains a store, warehouse, or other place of business in which materials, supplies, articles or equipment of the general

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