ing the employment of labor within the United States. The requirement does not prohibit the employment of persons on parole or probation, or of persons who have been pardoned or who have served their terms. Furthermore, the requirement does not apply to contracts: (a) Subject to the provisions of the Walsh-Healey Public Contracts Act (see Subpart 1-12.6) which contains its own requirement that "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 such contract." (b) For the purchase of supplies or services from Federal Prison Industries, Inc. (c) For the purchase from any State prison of finished supplies which may be secured in the open market or from existing stocks as distinguished from supplies requiring special fabrication. § 1-12.203 Contract clause. The contract clause required is as follows: CONVICT LABOR In connection with the performance of work under this contract, the Contractor agrees not to employ any person undergoing sentence of imprisonment at hard labor. Subpart 1-12.3-Eight-Hour Law of 1912 (Other Than Construction Contracts) § 1-12.300 Scope of subpart. This subpart deals with the requirements of the Eight-Hour Law of 1912, as amended (40 U.S.C. 324–326), as applicable to contracts other than construction contracts. § 1-12.301 Statutory requirement. In accordance with the requirement of the Eight-Hour Law of 1912, as amended (40 U.SC. 324-326), certain contracts entered into by any executive agency shall contain a clause to the effect that no laborer or mechanic doing any part of the work contemplated by the contract shall be required or permitted to work more than eight hours in any one calendar day upon such work, unless such laborer or mechanic is compensated for all hours worked in excess of eight hours in any one calendar day at not less than one and one-half times the basic rate of pay. § 1-12.302 Applicability. The requirement set forth in section 1-12.301 applies, except as stated in this section 1-12.302, to all contracts which may require or involve the employment of laborers or mechanics either by a contractor or by any subcontractor. The requirement does not apply to the following kinds of contracts: (a) Contracts (or portions thereof) to be performed in a foreign country over which the United States has no direct legislative control, to the extent that such contracts (or portions thereof) may require or involve the employment of laborers or mechanics there. (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 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 (or portions thereof) for materials or articles (other than armor or armor plate) usually bought in the open market (although the requirement does apply, and the contract must so provide, with respect to any contract involving the performance of any class of work which is ordinarily, and not merely occasionally or to a limited extent, performed by the Government). (e) Contracts (or portions thereof) subject to the provisions of the WalshHealey Public Contracts Act (see Subpart 1-12.6). § 1-12.303 Contract clauses. § 1-12.303-1 Clause for general use. Except for those kinds of contracts referred to in section 1-12.303-2, the contract clause required is as follows: EIGHT-HOUR LAW OF 1912-OVERTIME This contract, to the extent that it is of a character specified in the Eight-Hour Law of 1912, as amended (40 U.S. Code 324–326) and is not covered by the Walsh-Healey Public Contracts Act (41 U.S. Code 35-45), is subject to the following provisions and exceptions of said Eight-Hour Law of 1912, as amended, and to all other provisions and exceptions of said Law: No laborer or mechanic doing any part of the work contemplated by this contract, in the employ of the Contractor or any sub contractor contracting for any part of said work contemplated, shall be required or permitted to work more than eight hours in any one calendar day upon such work, except upon the condition that compensation is paid to such laborer or mechanic in accordance with the provisions of this clause. The wages of every laborer and mechanic employed by the Contractor or any subcontractor engaged in the performance of this contract shall be computed on a basic day rate of eight hours per day; and work in excess of eight hours per day is permitted only upon the condition that every such laborer and mechanic shall be compensated for all hours worked in excess of eight hours per day at not less than one and one-half times the basic rate of pay. For each violation of the requirements of this clause a penalty of five dollars shall be imposed for each laborer or mechanic for every calendar day in which such employee is required or permitted to labor more than eight hours upon said work without receiving compensation computed in accordance with this clause, and all penalties thus imposed shall be withheld for the use and benefit of the Government. § 1-12.303-2 Clause for contracts with a State or political subdivision. In the case of contracts with a State or political subdivision thereof (see section 1-12.302(b)), the contract clause required shall be the clause set forth in section 1-12.303-1, except that it shall be prefaced by the following provision: The Contractor agrees to insert the following clause in all subcontracts hereunder with private persons or firms. Subpart 1-12.4-[Reserved] § 1-12.601 Statutory requirement. In accordance with the requirement of the Walsh-Healey Public Contracts Act (41 U.S C. 35-45) and subject to section 1-12.602, all contracts entered into by any executive agency for the manufacture or furnishing of supplies in any amount exceeding $10,000 (a) will be with manufacturers or regular dealers, and (b) shall incorporate the representations and stipulations required by said Act pertaining to such matters as minimum wages, maximum hours, child labor, convict labor, and safe and sanitary working conditions. § 1-12.602 Applicability. § 1-12.602-1 General. The requirement set forth in section 1-12.601 applies to contracts for the man ufacture or furnishing of "materials, supplies, articles, and equipment" which are to be performed within the United States, Hawaii, Puerto Rico, or Virgin Islands, and which exceed or may exceed $10,000 in amount. § 1-12.602-2 Department of Labor regulations and interpretations. (a) Pursuant to the Walsh-Healey Act, the Secretary of Labor has issued detailed regulations and interpretations as to the coverage of said Act, and exemptions and procedures thereunder. These regulations and interpretations are compiled in a document entitled "Walsh-Healey Public Contracts Act, Rulings and Interpretations." (b) Attention is directed to an opinion of the Department of Labor that contracts which are originally $10,000 or less, but are subsequently modified to increase the price to an amount in excess of $10,000, are subject to the WalshHealey Act; and that contracts in an amount exceeding $10,000, which are subsequently modified to a figure of $10,000 or less, are not subject to said Act with respect to work performed after such modification, if modification is effective by mutual agreement. Whenever the Walsh-Healey Act is applicable, the contracting officer shall, pursuant to regulations or instructions issued by the Secretary of Labor and in accordance with procedures prescribed by each respective executive agency: (a) Inform prospective contractors of the possible applicability of minimum wage determinations; (b) Furnish to the contractor a poster (Form PC-13); (c) Furnish to the contractor a form letter (Form PC-12) explaining application of the Walsh-Healey Act and giving instructions for display of the poster; (d) Prepare and transmit to the Department of Labor a Notice of Award of Contract (Standard Form 99) immediately on award of the contract; and (e) Report to the Department of Labor any violation of the representations or stipulations required by the WalshHealey Act. § 1-12.604 Contract clause. The following clause shall be used as required by this Subpart 1-12.6: WALSH-HEALEY PUBLIC CONTRACTS ACT If this contract is for the manufacture or furnishing of materials, supplies, articles, or equipment in an amount which exceeds or may exceed $10,000 and is otherwise subject to the Walsh-Healey Public Contracts Act, as amended (41 U.S. Code 35-45), there are hereby incorporated by reference all representations and stipulations required by said Act and regulations issued thereunder by the Secretary of Labor, such representations and stipulations being subject to all applicable rulings and interpretations of the Secretary of Labor which are now or may hereafter be in effect. [24 F.R. 1973, Mar. 17, 1959, as amended at 24 F.R. 4454, June 2, 1959] Subpart 1-12.7-Fair Labor Standards Act of 1938 The Fair Labor Standards Act of 1938 (29 U.S.C. 201-219) provides for the establishment of minimum wage and maximum hour standards, creates a wage and hour division in the Department of Labor for purposes of interpretation and enforcement (including investigation and inspection of Government contractors), and prohibits oppressive child labor. Said Act applies to all employees, unless otherwise exempted, who are engaged in (a) interstate commerce or foreign commerce, or (b) the production of goods for such commerce, or (c) any closely related process or occupation essential to such production. § 1-12.702 Rulings on applicability or interpretation. 1-15.205-11 1-15.205-12 1-15.205-13 welfare costs and credits. Entertainment costs. Excess facility costs. Fines and penalties. 1-15.205-14 Food service and dormitory 1-15.205-15 1-15.205-16 1-15.205-17 1-15.205-18 1-15.205-19 1-15.205-20 1-15.205-21 costs and credits. Fringe benefits. Insurance and indemnification. Interest and other financial costs. Labor relations costs. Losses on other contracts. Maintenance and repair costs. engineering costs. 1-15.205-22 Material costs. 1-15.205-23 1-15.205-24 1-15.205-25 1-15.205-26 1-15.205-27 1-15.205-28 Plant protection costs. 1-15.205-29 Plant reconversion costs. 1-15.205-30 1-15.205-31 Precontract costs. Professional service costs-legal, accounting, engineering, and other. Sec. 1-15.602 1-15.603 Basic considerations. Cost principles and their use. AUTHORITY: §§ 1-15.000 to 1-15.603 issued under sec. 205(c), 63 Stat. 390; 40 U.S.C. 486 (c). SOURCE: §§ 1-15.000 to 1-15.603 appear at 25 F.R. 6947, July 22, 1960. § 1-15.000 Scope of part. This part contains general cost principles and procedures for the determination and allowance of costs in connection with the negotiation and administration of cost-reimbursement type contracts and contains guidelines for use, where appropriate, in the evaluation of costs in connection with certain negotiated fixed-price type contracts and contracts terminated for the convenience of the Government. Subpart 1-15.1-Applicability § 1-15.101 Scope of subpart. This subpart describes the applicability of succeeding subparts of this part to the various types of contracts in connection with which cost principles and procedures are used, and the need for advance understandings. § 1-15.102 Cost-reimbursement supply and research contracts with concerns other than educational institutions. This category includes all cost-reimbursement type contracts (see § 1-3.404) for supplies, services, or experimental, developmental, or research work (other than with educational institutions, as to which § 1-15.103 applies), except that it does not include construction contracts (see 1-15.104) or facilities contracts. The cost principles and procedures set forth in Subpart 1-15.2 may be incorporated by reference in cost-reimbursement supply and research contracts with other than educational institutions as the basis (a) For determination of reimbursable costs under such contracts, including cost-reimbursement type subcontracts thereunder, and the cost-reimbursement portion of time-and-materials contracts (§ 1-3.405-1); (b) For the negotiation of overhead rates; and (c) For the determination of costs of terminated cost-reimbursement type contracts, and for settlement of such contracts by determination. |