or of a foreign nation, including aircraft owned by the United States or by a foreign nation and constituting a part of the armed forces thereof. The undersigned understands that if the article or articles are used for any purpose other than as stated in this certificate, or are resold or otherwise disposed of, the purchaser must report such fact to the manufacturer; or, in the case of special motor fuel, that if the fuel is sold or used otherwise than as stated in this certificate and for a taxable purpose specified in section 4041(b) of the Internal Revenue Code, liability for the tax upon such sale or use will attach. The undersigned also understands that the purchaser must be prepared to establish by satisfactory evidence the purpose for which the article was used. The fraudulent use of this certificate for the purpose of securing exemption from the payment or adjustment of taxes will subject the guilty party to a fine of not more than $10,000 or imprisnment for not more than five (5) years, or both, together with costs of prosecution. metals, or upon its sale or other disposition of the oil, it is required to notify the manufacturer. The fraudulent use of this certificate for the purpose of purchasing oil tax free, rather than subject to tax at the rate of 6 cents a gallon, will subject the guilty party to a fine of not more than $10,000, or imprisonment for not more than five (5) years, or both, together with the costs of prosecution. (Signature) (Title) (Address) [31 FR 6373, Apr. 27, 1966. Redesignated at 31 FR 6373, Apr. 27, 1966] 81-11.502 State and local tax exemption forms. § 1-11.502-1 Types of evidence of immunity or exemption. Evidence appropriate to establish immunity or exemption claimed, the parties to the transaction, and the requirements of the taxing jurisdiction. Such evidence includes but is not limited to the following: (a) Copies of purchase orders, shipping documents, credit card imprinted sales slips, paid or acknowledged invoices, and similar documents created in due course which identify an agency or instrumentality of the U.S. Government as the vendee; (b) A copy of the contract or applicable portion thereof; (c) A State or local form indicating that supplies or services are for the exclusive use of the U.S. Government; (d) Any other State or locally required form, certificate, or document to establish general or specific exemption; or (e) Standard Form 1094, U.S. Tax Exemption Certificate. (Use of this form is appropriate when no other evidence is available and the amount of tax is large enough to justify its completion.) [46 FR 17560, Mar. 19, 1981] § 1-11.502-2 When evidence of immunity or exemption is to be furnished. (a) The general rules for asserting immunity or exemption from State and local taxes are outlined in the policy statements contained in § 111.301. Special rules for asserting tax immunity or exemption on imprest fund purchases are discussed in § 13.604-7. (b) To reduce uneconomical paperwork, immunity or exemptions shall not be asserted on transactions on which a particular State or local tax is $10 or less. For this purpose, a transaction is defined as a purchase, invoice, aggregate billing, or payment for multiple purchases. (c) If a reasonable basis to sustain immunity or an exemption exists, and the $10 tax threshold as discussed in paragraph (b) of this § 1-11.502-2 is exceeded, contractors, including vendors, will be furnished evidence of immunity or an exemption under: (1) Contracts containing the clauses prescribed in either § 1-11.401-1 or § 111.401-2 in accordance with the terms of those clauses; (2) Cost-reimbursement type contracts; and (3) Contracts or purchase orders which contain no provision regarding taxes if the contactor warrants that the contract price does not include the tax, or the contractor consents to a reduction in the contract price if the evidence of immunity or an exemption is accepted by the taxing jurisdiction. (d) In case of disagreement as to whether a reasonable basis exists that would sustain the immunity or exemption of a transaction, the matter should be resolved in accordance with § 1-11.000(b). [46 FR 17560, Mar. 19, 1981] Sec. PART 1-12-LABOR Sec. 1-12.102 Overtime, extra-pay shifts, and multi-shift work 1-12.102-1 Definitions. 1-12.102-2 Policy. 1-12.102-3 Procedures. 1-12.102-4 Approvals. 1-12.102-5 Other authorized overtime. 1-12.103 Federal and State labor requirements. Subpart 1-12.2-Convict Labor 1-12.200 Scope. 1-12.201 General. 1-12.202 Basic requirement. 1-12.203 Applicability. 1-12.204 Contract clause. Subpart 1-12.3-Contract Work Hours and Safety Standards Act (Other Than Construction Contracts) 1-12.300 Scope of subpart. Subparts 1-12.4-1-12.5—[Reserved] 1-12.601 Statutory requirement. 1-12.602-2 Statutory exemptions. 1-12.602-3 Department of Labor regulations and interpretations. 1-12.603 Determinations of eligibility as manufacturer or regular dealer. 1-12.603-1 Manufacturer. 1-12.603-2 Regular dealer. 1-12.603-3 Coal dealers. 1-12.603-4 Agents. 1-12.604 Responsibilities of contracting officers. 1-12.605 Contract clause. Subpart 1-12.7—Fair Labor Standards Act of 1938 1-12.701 Basic statute. 1-12.702 Rulings on applicability or interpretation. Subpart 1-12.8—Equal Opportunity in Employment 1-12.800 Scope of subpart. 1-12.801 General. 1-12.802 Definitions. 1-12.803 Basic requirements. 1-12.803-1 Government contracts. 1-12.803-2 Equal Opportunity clause. 1-12.803-6 Adaptation of language. 1-12.803-7 Incorporation by reference. 1-12.803-8 Incorporation by operation of the Order and agency regulations. 1-12.803-9 Notice to bidders regarding preaward equal opportunity compliance reviews. 1-12.803-10 Elimination of segregated facilities. 1-12.804 Exemptions. 1-12.804-1 General. 1-12.804-2 Specific contracts. 1-12.804-3 Facilities not connected with contracts. 1-12.804-4 Effect of exemption. 1-12.804-5 Withdrawal of exemption. 1-12.805 Administration. 1-12.805-1 Duties of agencies. 1-12.805-2 Educational responsibility. 1-12.805-3 Notices to be posted. 1-12.805-4 Reports and other required information. 1-12.805-5 Compliance reviews. 1-12.805-6 Complaints. 1-12.805-7 Processing of matters by agencies. 1-12.805-8 Assumption of jurisdiction by or referrals to the Director. 1-12.805-9 Sanctions and penalties. 1-12.805-10 Disputed matters related to the equal opportunity program. 1-12.805-11 Preaward notices. 1-12.806 [Reserved] 1-12.807 Hearings. 1-12.807-1 General. 1-12.807-2 Informal hearings. 1-12.807-3 Formal hearings. 1-12.808 Reinstatement of ineligible contractors or subcontractors. 1-12.809 Intimidation and interference. 1-12.810 Affirmative action compliance programs. 1-12.811 Access to records of employment. 1-12.812 Rulings and interpretations. 1-12.813 Solicitations or advertisements for employees. 1-12.814 Existing contracts and subcontracts. Subpart 1-12.9—Service Contract Act of 1965 1-12.900 Scope of subpart. 1-12.901 Statutory requirements. 1-12.902 Applicability. 1-12.902-1 Geographical coverage of the Act. 1-12.902-2 Definitions. 1-12.902-3 Statutory exemptions. 1-12.902-4 Administrative limitations, vari ations, tolerances, and exemptions. Sec. 1-12.903 Department of Labor regulations. 1-12.904 Contract clauses. 1-12.904-1 Clause for Federal service contracts in excess of $2,500. 1-12.904-2 Clause for Federal service contracts not exceeding $2,500. 1-12.904-3 Price adjustment clause for fixed-price multiyear service contracts and fixed-price service contracts with renewal options. 1-12.905 Administration and enforcement. 1-12.905-1 Responsibilities of contracting officers. 1-12.905-2 Register of wage determinations and fringe benefits. 1-12.905-3 Notice of intention to make a service contract. 1-12.905-4 Use of minimum wage determinations and fringe benefit specifications. 1-12.905-5 Additional classifications. 1-12.905-6 Notice of award. 1-12.905-7 Withholding of contract payments and contract termination. 1-12.905-8 Cooperation with the Department of Labor. 1-12.905-9 Role of the Comptroller General. 1-12.905-10 Absence of minimum wage determinations and fringe benefit specifications. 1-12.905-11 Hearings. Subpart 1-12.10—Nondiscrimination Because of Age. 1-12.1000 Scope of subpart. 1-12.1001 Policy. 1-12.1002 Implementation of policy. 1-12.1003 Handling of complaints. 81-12.101-1 General. (a) With respect to Government contract activities, procurement agencies should maintain and encourage the best possible relations with industry and labor in order that the Government may procure needed supplies and services without delay. All problems arising out of the Government contract labor relations of private contractors, and all communications with labor organizations or Federal agencies relative thereto, shall be handled in accordance with agency procedures. (b) Procurement agencies should remain impartial in, and should refrain from taking a position on, the merits of a dispute between labor and private management. No procuring activity should undertake the conciliation, mediation, or arbitration of a labor dispute. 81-12.101-2 Contract pricing and administration. (a) Nothing in § 1-12.101-1 should be construed to relieve a contracting officer from his responsibility to achieve efficient contract pricing and administration. (b) Contractor labor policies and compensation practices, whether or not they are provided for in labormanagement agreements, are not an acceptable basis for allowance of cost in cost-reimbursement type contracts or for recognition of costs in pricing fixed-price type contracts if and insofar as they result in unreasonable costs to the Government. Part 1-15, particularly 1-15.205-6(a), explains that the term "unreasonable costs" includes costs resulting from practices that are discriminatory against the Government or unwarranted in the context of the particular contract work. (c) In some cases, labor disputes may give rise to work stoppages which cause delays in the timely performance of important contracts. The contracting officer should impress on the contractor that he will be held accountable for delays that are reasonably avoidable. It should be emphasized that the standard contract clauses dealing with default, excusable delays, etc., do not relieve the contractor of delays that are not beyond his control or, with respect to delays of subcontractors, that are not beyond the control of both the contractor and the subcontractor. A delay caused by a strike which is an unfair labor practice, as identified in the National Labor Relations Act, as amended (29 U.S.C. 158), and which the contractor could not reasonably prevent can be excused only to the extent that it does not go beyond the point at which a reasonably diligent contractor could resume the delayed performance by taking action toward ending the strike by such means as: (1) Filing a charge with the National Labor Relations Board so as to permit the NLRB to seek injunctive relief in court; (2) Recourse to other available Government procedures; or (3) Use of private boards or organizations for the settlement of disputes. As used in this § 1-12.102, the following terms shall have the meanings set forth: (a) "Normal workweek" and "normal workday" mean, generally, a workweek of 40 hours and a workday of 8 hours, respectively. 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 considered normal if (1) such workweek or workday does not exceed that which is normal for such area, as determined by local custom, tradition, or law, and (2) hours 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) "Shift premium" means the difference between the compensation paid to an employee at the contractor's regular rate of pay for the base or regular work shift and that paid at the regular rate of pay for extra-payshift work. (d) "Overtime premium" means the difference between the compensation paid to an employee at the contractor's regular rate of pay for the work period or shift involved and that paid for hours worked overtime. (a) To the extent practicable, invitations for bids and requests for proposals shall not specify delivery or performance schedules which may be reasonably anticipated to necessitate overtime, at Government expense. (b) In the negotiation of contracts in excess of $10,000, the contracting officer, consistent with the nature and size of the procurement should use his best efforts (1) to ascertain the extent to which proposals and quotations are based on the payment of overtime premiums and shift premiums, and (2) to negotiate contract prices or estimated costs which are not based on the payment of overtime premiums or shift premiums, taking into consideration the practicability of procurement from other sources of all or part of the requirement. (c) All contracts, other than firm fixed-price contracts or fixed-price contracts with escalation (which do not provide for any labor escalation), should provide that payment of overtime premiums and shift premiums shall be allowed, or considered in pricing, only to the extent approved in accordance with § 1-12.102-4, or as provided in § 1-12.102-5. (d) Overtime for which overtime premiums would be at Government expense should not be approved under a contract where the contractor is already obligated, without the right to additional compensation, to meet the required delivery date. (e) Where overtime premiums or shift premiums are being paid at Government expense in connection with the performance of Government contracts, the continued need therefor should be subject to periodic review in accordance with agency procedures. § 1-12.102-4 Approvals. (a) In the three following situations, overtime premiums and shift premiums at Government expense may be considered proper for approval when determined in writing by the agency head, or his designee or designees, that approval: (1) Is necessary to meet delivery or performance schedules, and such schedules are determined to be extended to the maximum consistent with essential program objectives; (2) Is necessary to make up for delays which are beyond the control and without the fault or negligence of the contractor and, in construction contracts, which result from unforeseeable causes; or (3) Is necessary to eliminate foreseeable production bottlenecks of an extended nature which cannot be eliminated in any other way. (b) Approvals should ordinarily be prospective, but may be retroactive where justified by the circumstances. (c) Such approvals may be for an individual contract, project, or program, or for a plant, division, or company, as most practicable. 81-12.102-5 Other authorized overtime. (a) Approved overtime premiums or shift premiums may be paid for work, without the approval required by § 112.102-4: |