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CHAPTER 50—DIVISION OF PUBLIC CONTRACTS

DEPARTMENT OF LABOR

Part 50–201 50-202 50-203 50-204 50-210

General regulations.
Minimum wage determinations.
Rules of practice.
Safety and health standards for Federal supply contracts.
Statements of general policy and interpretation not directly related to

regulations.

Note: Other regulations issued by the Department of Labor appear in Titles 20 and 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 Full administrative exemptions. 50–201.604 Partial administrative exemp

tions. 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 respect 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 to 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 1 week unless such pe on 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 trator of the Defense Production Administrą. under 18 years of age, or each convict laborer tion without the inclusion of the representaknowingly employed in the performance of tions and stipulations of section 1(a) of the the contract, and a sum equal to the amount act by Order, Secretary of Labor, 16 F.R. of any deductions, rebates, refunds, or un 5847 June 19 1951. derpayment of wages due to any employee “Defense Production Pools" was changed engaged in the performance of the contract; to "Small Business Production Pools". and and, in addition, the agency of the United the contracts anproved by the Administrator States entering into the contract shall have of the Small Defense Plants Administration the right to cancel same and to make open were also exempted from the inclusion of the market purchases or enter into other con representations and stipulations of secting tracts for the completion of the original (1)(a) of the art by Order, Secretary of contract, charging any additional cost to Labnr. 17 F.R. 8925. Oct. 4, 1952. the original contractor. Any sums of money § 50–201.1 was modified by permitting an due to the United States of America by exception from the operation of all reprereason of any violation of any of the rep sentations and stipulations of section 1 of resentations and stipulations of the contract the act contained in any contract for the as set forth herein may be withheld from prorurement of the following canned fruits any amounts due on the contract or may be and vegetables for the Armed Forces of the recovered in a suit brought in the name of United States and the Veterans' Administrathe United States of America by the Attorney tion awarded between the date herenf until General thereof. All sums withheld or re and including December 31, 1953: Provided, covered as deductions, rebates, refunds, or That. underpayments of wages shall be held in a (1) The excention from the contract stipspecial deposit account and shall be paid, ulations and representations of section 1 of on order of the Secretary of Labor, directly the act shall not be available in weeks in to the employees who have been paid less which the canning of fruits and vegetables than minimum rates of pay as set forth in required under the contract is not exempt such contracts and on whose account such under sections 7(b) (3) or 7(c) of the Fair sums were withheld or recovered: Provided, Labor Standards Act. as amended: And That no claims by employes for such pay (2) The exreption from the child labor ments shall be entertained unless made stipulations required by sections 1(d) and within 1 year from the date of actual notice 2 of the act shall not be available with reto the contractor of the withholding or re

snect to children under sixteen years of age covery of such sums by the United States of knowingly employed in the performance of America.

any such contract: (g) The contractor shall post a copy of

Apples. canned. the stipulations in a prominent and readily

Applesauce, canned. accessible place at the site of the contract

Anricots, canned. work and shall keep such emolovment rec

Asparagus, canned. ords as are required in the regulations under

Beans. lima, canned. the act available for inspection by authorized

Beans. string, canned. representatives of the Secretary of Labor.

Beets, canned. (h) The contractor is not a person who is

Berries, canned. ineligible to be awarded Government con

Carrots, canned. tracts by virtue of sanctions imposed pur

Catsun, tomato. suant to the provisions of section 3 of the

Cherries, sour, canned. act.

Cherries, sweet. canned. (1) No part of the contract shall be per

Corn, cream stvle, canned. formed and none of the materials, articles,

Corn, whole grain, canned. supplies or equipment manufactured or fur

Figs, canned. nished under the contract shall be manu

Fruit cocktail, canned. factured or furnished by any person found

Grapefruit, canned. bv the Socretary of Labor to be ineligible

Juice, citrus. to be awarded Government contracts pur

Juice, grape. suant to section 3 of the act.

Juice, pineapple. (1) The foregoing stipulations shall be

Peas, green, canned. deemed inoperative if this contract is for

Peaches, canned. a definite amount not in excess of $10.000.

Pears, canned. 17 FR 4494, June 16, 1942, as amended at

Pineapple, canned. 7 FR. 11086. Dec. 30, 1942. 11 F.R. 6238, June

Plums (prunes), canned. 8, 1946. Redesignated at 24 F.R. 10952, Dec.

Potatoes, sweet, canned. 30, 1959]

Pumpkin, canned. NOTE: The following modifications with Puree, tomato. respect to $ 50–201.1 have been issued:

Sauce, cranberry. $ 50–201.1 was modified by permitting the Spinach, canned. award of contracts between contracting

Tomatoes, canned. agencies of the United States and Defense

Tomato Juice, canned. Production Pnols apnroved by the Adminis

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 (“fperishables” 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, 1936, 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.

(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, 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,

or

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