Loyalty to the United States is required of all participants in the atomic energy program, including those members and representatives of labor organizations who exercise authority over bargaining units of employees engaged on classified work.

(c) Wages, salaries, and employee benfits. Wages, salaries, and employee benefits on cost-type contracts shall be administered in a manner designed to adapt normal industry or university practices and conditions to the contract work and to provide for appropriate review by AEC. Area practices, valid patterns, and well-established commercial or academic practices of the contractors, as appropriate, form the criteria for the establishment and adjustment of compensation schedules.

It is recognized that these criteria may permit a range of reasonable positions in any given collective bargaining situation. However, the aspects of wages, hours, and working conditions which are the substance of collective bargaining in normal organized industries will be left to the orderly and peaceful processes of negotiation and agreement between AEC contractor managements and employee representatives with maximum possible freedom from government interference.

(d) Employee relations. The handling of employee relations on contract work, including such matters as the conduct and discipline of the work force and the handling of employee grievances, is part of the normal management responsibility of the contractor.

The AEC looks to contractors, in their personnel policies, to provide employees basic guarantees of fair treatment in their relationships with project management.

(e) Collective bargaining. The AEC desires that collective bargaining in the atomic energy program be carried on insofar as possible under the arrangements normally found in American industry. Management and labor in all Government-owned, privately operated atomic energy installations are expected wholeheartedly to accept a special responsibility to seek in every way by voluntary procedures and mutual agreement the peaceful and orderly settlement of all disputes.

AEC review of collective bargaining practices will be premised on the view that management's trusteeship for the operation of the government facilities

includes the duty to adopt practices which are fundamental to the friendly adjustment of disputes, and which experience has shown promote orderly collective bargaining relationships. Practices inconsistent with this view may be objected to if not found to be otherwise clearly warranted.

In line with the policy of assuring continuity of operation of vital facilities, all collective bargaining agreements at Government-owned atomic energy installations should provide that grievances and disputes involving the interpretation or application of the agreement will be settled without resort to strike, lock-out, or other interruption to normal operations. For this purpose each collective bargaining agreement should provide an effective grievance procedure with arbitration as its final step, unless the parties mutually agree upon some other method of assuring continuity of operations for the term of the agreement.

The AEC expects its contractors and the unions representing contractor employees, to cooperate fully with the Federal Mediation and Conciliation Service and the Atomic Energy Labor-Management Relations Panel which has been established by the President, and which, in the event of failure of the parties to resolve their differences by negotiation, may intervene in the interest of furthering the peaceful processes of collective bargaining and of assuring essential continuity of operations.

(f) Personnel training. The AEC encourages and supports personnel training programs aimed at improving work efficiency or developing needed skills which are not otherwise obtainable. AEC also encourages participation by its construction contractors in building trades apprenticeship programs under Federal, State and local apprenticeship standards.

(g) Working conditions. Accident, fire, health and occupational hazards associated with AEC activities will be held to a practical minimum level and controlled in the interest of maintenance of health and prevention of accidents. To this end, contractors are required to maintain comprehensive continuous preventive and protective programs appropriate to the particular activities throughout all operations subject to AEC control. Appropriate financial protection in case of occupational disability will be provided employees on AEC projects. [26 F. R. 12573, Dec. 28, 1961]

Subpart 9-12.2-Convict Labor

§ 9-12.251 Assignments of responsibilities.

Directors, Headquarters Divisions and Offices and Managers of Operations, in accordance with their delegations of authority shall assure that the contract clause appearing in § 1-12.203 is incorporated in contracts subject to the coverage of the regulation as set forth in § 1-12.202.

Subpart 9-12.3-Eight-Hour Law of 1912 (Other Than Construction Contracts)

§ 9-12.351 Assignments of responsibilities.

Directors, Headquarters Divisions and Offices and Managers of Operations, in accordance with their delegations of authority shall assure that the contract clause appearing in § 1-12.303 is incorporated in contracts subject to the coverage of the regulation as set forth in § 1-12.302.

Subpart 9-12.6-Walsh-Healey
Public Contracts Act

§ 9-12.603 Responsibilities of contracting officers.

In connection with this § 9-12.603, Directors, Headquarters Divisions and Offices, and Managers of Operations in accordance with their delegations of responsibilities, in addition to complying with § 1-12.603 (a) to (d) shall transmit reports required by § 1-12.603 (e) to the Director, Office of Industrial Relations, Headquarters. The Director, Office of Industrial Relations, Headquarters, shall coordinate with the Department of Labor all activities of the AEC arising under this subpart including the submission to that Department of the reports required by § 1-12.603 (e).

Subpart 9-12.7-Fair Labor Standards Act of 1938

Directors, Headquarters Divisions and Offices, and Managers of Operations in accordance with their delegations of authority shall take such steps as may be reasonable and appropriate to implement the objective stated in § 9-12.751 and in addition shall:

(a) Cooperate with representatives of the Department of Labor in all proceedings involving the enforcement of the Fair Labor Standards Act affecting any AEC contractor;

(b) Exercise such appropriate controls as may be available in cost-reimbursement contracts to protect against the eventuality of unwarranted monetary claims and other costs being passed on to AEC. Subpart 9-12.50-Labor Standards in Construction Activities

§ 9-12.5000 Scope of subpart.

This subpart deals with labor standards for construction contracts as prescribed by the statutes and regulations set forth below.

§ 9-12.5001 Statutes and regulations. § 9-12.5001-1 Davis-Bacon Act (Act of March 3, 1931, as amended, 40 U.S.C. 276a).

The Davis-Bacon Act provides in general that contracts to which the U.S. is a party in excess of $2,000 for the construction, alteration, and/or repair, including painting and decorating, of public buildings or public works, which involve the employment of laborers and/or mechanics, shall contain provisions with respect to minimum wages, payments without deductions, posting of wage scales, withholding from contractors of amounts considered necessary to pay laborers and/or mechanics any differences between the amounts they receive and the amounts due, and termination of work for failure to pay agreed wages.

§ 9-12.5001-2 Copeland (Anti - Kickback) Act.

The Copeland (Anti-Kickback) Act (Act of June 13, 1934, as amended, 18 U.S.C. 874; 40 U.S.C. 276c), makes it illegal for unauthorized deductions to be made from, or rebates to be exacted

from, the wages paid to any person employed by any contractor or subcontractor engaged in the construction, prosecution, completion or repair of any public building or public work, or building or work financed in whole or in part by loans or grants from a federal agency, and provides that the Secretary of Labor shall make reasonable regulations for contractors and subcontractors engaged in such work, including provisions that each such contractor and subcontractor shall furnish weekly a statement with respect to the wages paid each employe during the preceding week.

§ 9-12.5001-3 Eight-Hour Law.

The "Eight-Hour" statute (Act of June 19, 1912, as amended, 40 U.S.C. 321-326) provides, generally, that contracts to which the U.S. is a party, except supply contracts under the WalshHealey Public Contracts Act and other exclusions mentioned in § 9-12.5002-2, involving the employment of laborers and mechanics shall contain a provision that laborers and mechanics doing any part of the work contemplated by such contracts shall not be required or permitted to work more than eight hours in any one calendar day upon such work, unless compensated for all hours worked in excess of the eight at not less than one and one-half times the basic rate of pay.

§ 9–12.5001–4 Department of Labor regulations.

Pursuant to the foregoing statutes and Reorganization Plan No. 14 of 1950 (15 F.R. 3176), the Secretary of Labor has issued regulations, Part 3, Title 29, Subtitle A, Code of Federal Regulations (7 F.R. 687 as amended) and Regulations, Part 5, Title 29, Subtitle A, Code of Federal Regulations (16 F.R. 4430), as amended, relating to the administration and enforcement of these statutes. The requirements under the Davis-Bacon Act apply only in the United States, while the Eight-Hour laws and the Copeland Act also apply to other areas over which the United States has direct legislative control.

§ 9-12.5001-5 Department of Labor Approval of AECPR 9-12.50.

The Department of Labor has reviewed and approved this subpart 912.50, "Labor Standards in Construction Activities" as guides for the application

of the Davis-Bacon Act in construction, operation or maintenance activities specifically related to the situations that exist in facilities of the Atomic Energy Commission.

§ 9-12.5002 Applicability.

The requirements set forth in § 912.5001 apply to construction contracts. Although the statutes therein referenced do not contain definitions, the Secretary of Labor's regulations in 29 CFR, Subtitle A, Part 5, include definitions of "contract", "building", "work", "construction", "prosecution”, “completion”, "repair", "public building", and "public work". In general, contracts are classifiable as being covered by the statutes when performance by the contractor consists substantially of the erection or assembly of new plants (including laboratory or other buildings or works), or the alteration and/or repair, including painting and decorating, of new or existing plants. The fact that certain contracts may be entered into without regard to general statutory requirements as to advertising for bids or proposals, or upon a cost-type basis or otherwise, is not determinative in the classification of such contracts, activities, construction Irojects, or other work or services performed thereunder.

§ 9-12.5002-1 Non-coverage (DavisBacon and Copeland Acts).

(a) The requirements set forth in § 9-12.5001 in respect to the Davis-Bacon and Copeland Acts do not apply to the following:

(1) Contracts regardless of their nature not in excess of $2,000. (Does not However, apply to the Copeland Act.)

no item of work, the cost of which is estimated to be in excess of $2,000, shall be artificially divided into portions less than $2,000 for the purpose of avoiding the applicability of the Davis-Bacon Act.

(2) Contracts for furnishing supplies and equipment, including installation, where the installation requires only an incidental amount of work (as defined in "(c)" below) that would otherwise be considered construction, alteration and/or repair of a public building or work. (See § 9-12.5005-2(g).)

(3) Contracts for servicing or maintenance work in an existing plant, including installation or movement of machinery or other equipment, and plant

rearrangement which involve only an incidental amount of work (as defined in "(c)" below) that would otherwise be considered construction, alteration and/ or repair. (See § 9-12.5005-2(g).)

or

(4) Contracts for operational maintenance activities (e.g., production, research and development, or community services, as distinguished from contracts for construction). In general, these are contracts where performance by the contractor consists primarily of the utilization of existing facilities and the services of personnel to produce materials, conduct research and development, or provide community-type services, and of the use of or maintenance of plant. However, the classification of a contract as a contract for operational or maintenance activities does not necessarily mean that all work and activities at the contract location are not covered, since it may be necessary to separate out work which should be classified as covered. (See 9-12.5004-7.) As used in connection with "operational activities", the term "produce" means to manufacture, make, or refine special nuclear or other material; to separate material from other substances in which contained; or to make new material. The term "materials" includes supplies, articles, or equipment; and the term "research and development" means same as defined in the Atomic Energy Act of 1954, as amended.

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(5) Contracts to be performed outside the States and the District of Columbia. (Does not apply to the Copeland Act.)

(6) Contracts for demolition, except when indispensable and preliminary to scheduled new construction.

(7) Contracts with a state or political subdivision thereof (although the requirements do apply, and the contract must so provide, to a subcontract thereunder with a private person or firm which involves the construction, alteration, and/or repair of public buildings or public works).

(8) Contracts with railroads for construction services to the extent that the services are performed by railroad employees covered by the Railway Labor Act.

(b) It should be noted, however, that the requirements do apply to work performed by laborers and mechanics employed by a construction contractor or subcontractor at the site of the work

under a contract for the construction, alteration and/or repair, including painting and decorating of public buildings or public works, which is otherwise subject to these Acts whether or not such work would be covered if it were a separate contract.

(c) As used in (a) (2) and (a) (3) above, "an incidental amount of work” is defined to mean work directly related to the installation, movement or rearrangement of equipment or machinery, relatively small in amount, and which does not include changes in a facility affecting its architectural or structural strength, stability, safety, size, or function as a public work. (See § 9-12.50052(g) (3).)

The requirements set forth in § 9-12.5001 in respect to the Eight-Hour Law do not apply to the following:

(a) Contracts (or portions thereof) to be performed in a foreign country;

(b) Contracts with a state or political subdivision thereof (although the requirement does apply, and the contract must so provide, to a subcontract thereunder with a private person or firm);

(c) Contracts (or portions thereof) for materials or articles usually bought in the open market, or for supplies in connection with which any required services are merely incidental to the sale and do not require substantial employment of laborers or mechanics;

(d) Contracts as to which the provisions of the Walsh-Healey Public Contracts Act are clearly applicable to complete performance of the contract;

(e) Contracts for transportation by land or water;

(f) Contracts for transmission of intelligence;

(g) Contracts for construction or repair of levees and revetments necessary for protection against floods or overflows on navigable waters of the United States.

Except as provided in § 9-12.5003-4, every construction contract for public buildings or public works for $2,000 or less within the United States shall inIclude the Labor Standards Provisions appearing as clause 10 on page 2 of Standard Form 19. (See § 1-16.901-19.) § 9-12.5003-3 Contracts outside the United States.

Every construction contract for public buildings or public works outside the United States, but within an area over which the United States has direct legislative control, shall include clauses 2 and 7 of Standard Form 19A, except that the first sentence of clause 7 shall be modified to refer only to clauses 2 and 7, and the phrase "except in the phrase 'government prime contractor'" in the last sentence of clause 7 shall be deleted. § 9-12.5003-4 Contracts with a state or political subdivision.

In the case of contracts with a state or political subdivision thereof which include construction, alteration and/or repair, including painting and decorating of public buildings or public works, the contract clause required by Standard Form 19, Standard Form 19A, or Standard Form 23A, whichever is applicable, shall be inserted therein, and such clause shall be prefaced by the following provision: "The contractor agrees to insert the following in all subcontracts hereunder with private persons or firms".

§ 9-12.5003-5 Special clauses for "operating type" contracts.

The following article is for use in prime contracts when the prime contractor is to perform no covered work with his own forces but may procure construction by subcontract: "Upon request of the Commission and acceptance thereof by the Contractor, the Contractor shall procure by subcontract the construction of new facilities or the alteration or repair of Governmentowned facilities at the plant. Any subcontract entered into under this paragraph shall be subject to the written approval of the Commission and shall contain the provisions relative to labor and wages required by law to be included in contracts for the construction, altera

tion and/or repair, including painting and decorating, of a public building or public work".

§ 9-12.5004 Administration and enforcement.

§ 9-12.5004-1 General.

The statutes and regulations cited and summarized in § 9-12.5001 impose direct responsibilities for administration and enforcement upon the Atomic Energy Commission. Therefore, Directors, Headquarters Divisions and Offices, and Managers of Operations, consistent with their assignments of responsibilities and delegations of authority, shall assure that AEC contract activities are carried out consistent with these laws, regulations, and policies.

§ 9-12.5004-2 Specific responsibilities.

In discharging their assigned responsibilities, Directors, Headquarters Divisions and Offices, and Managers of Operations shall:

(a) Incorporate in contracts, as applicable, the contract clauses required by § 9-12.5003.

(b) Obtain certification of compliance or dispute from the contractor (29 CFR 5.6(a).)

(c) Assure that under the DavisBacon Act classification or reclassification of classes of labor or mechanics is effected (29 CFR 5.6(c).)

(d) Obtain and examine payrolls and preserve them for three years from the date of completion of the contract (29 CFR 5.6(d).)

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(e) Make investigations for pliance with labor standards, stipulations and applicable laws (29 CFR 5.6(e).)

(f) Cooperate with any representative of the Secretary of Labor making an authorized inspection (29 CFR 5.10(a).)

(g) Suspend payment of funds or order restitution (29 CFR 5.8 or 5.9(a).) (h) Submit to the Director, Office of Industrial Relations, Headquarters:

(1) Reports of violations including recommendations as to ineligibility sanction (29 CFR 5.6(b) and 5.7.)

(2) Recommendations for a hearing by the Secretary of Labor (29 CFR 5.10(b).)

(3) Requests for rulings or interpretations by the Secretary of Labor (29 CFR 5.11).

(4) Requests for wage determinations by the Secretary of Labor (29 CFR 5.3 and 5.4).