2 If redetermination downward only is to be provided for, the following sentence should be substituted for this sentence: "The total of such redetermined prices as established pursuant to any redetermination shall in no event exceed the total contract price as set forth in this contract prior to redetermination, less any part thereof applicable to any terminated portion of the work." Where multiple redeterminations, upward or downward, are to be provided for, subparagraphs (1) and (2) should both be included in paragraph (a). Where a single redetermination only, whether upward or downward or downward only, is to be provided for subparagraph (2) should be entirely omitted. In lieu of "Upon delivery of percent of the articles specified to be furnished," any one of the following substitutes may be used: units of the ar "Upon delivery of ticles to be furnished." "Upon performance of (a specified portion of the work)." "Upon delivery of articles representing percent of the total contract price." In the event wholly retroactive redetermination is to be provided for, the preceding language should be revised to read: "Within days after completion or termination of this contract." [26 F.R. 11491, Dec. 5, 1961] § 9-7.5006-35 Termination. [Reserved] § 9-7.5006-36 Nuclear Reactor Safety. The following clause shall be incorporated in all contracts involving the start-up and/or operation of AEC-owned, nonlicensed reactors including critical facilities. Any deviation in substance affecting the meaning, intent, or basic principles of this clause must be referred to the Director, Division of Contracts, Headquarters for approval. Minor changes in wording which may become necessary in negotiations may be approved by the Manager of Operations after consultation with counsel. (a) The Contractor recognizes that the activities under this contract involve the risk of a nuclear incident which, while the chances of its occurrence are remote, could adversely affect the public health and safety. In the conduct of its activities hereunder, the Contractor will exercise a degree of care commensurate with the risk involved. (b) The Contractor shall comply with all regulations of the Commission concerning nuclear reactor safety and with those requirements (including reporting requirements and instructions) of the Commission concerning nuclear reactor safety of which it is notified in writing by the Contracting Officer. (c) Prior to the initial start-up of any nuclear reactor under this contract and prior to any subsequent start-up following a change which represents a significant deviation from the procedures, equipment, or analyses described in the Hazards Summary Report for that Reactor, the Contractor shall: (1) Prepare a Hazard Summary Report and detailed plans and procedures designed to assure the safe operation and maintenance of the reactor. These will generally cover, but not be limited to: pre-start-up check lists; normal operation of the reactor and supporting auxiliaries; maintenance operation; emergency situations; and technical standards for equipment and systems. (2) Submit such plans and procedures to, and secure the approval of, the Contracting Officer. (3) Carry out a training program that will assure that the approved plans and procedures for nuclear safety are understood by all personnel who will be engaged in the operations and maintenance of the nuclear reactor. (4) Obtain the approval of the Contracting Officer prior to such start-up of the reactor. (d) In the operation and maintenance of any nuclear reactor under this contract, the Contractor shall: (1) Use its best efforts to assure that all operational and maintenance activities are performed by qualified and adequately trained personnel and, except as otherwise agreed in writing, are conducted at all times under the supervision of personnel who are qualified to appraise any emergency condition and take prompt effective action with respect thereto. (2) Follow strictly the plans and procedures for nuclear safety approved by the Contracting Officer and submit to the Contracting Officer for his approval any proposed changes in such plans and procedures. The plans and procedures may specify certain areas in which the Contractor may make changes in operating and maintenance procedures and in the facility without Commission approval. All such changes shall be subject to review by a competent, independent, internal organization of the Contractor. (3) Establish a system of inspection approved by the Contracting Officer (in cluding review of inspection reports by competent technical personnel) that will (i) provide frequent and periodic checks of reactor performance and of the qualifications and training of operating and maintenance personnel and (ii) provide for investigation of any unusual or unpredicted reactor conditions that might affect the safe operation of the reactor. (4) Report promptly to the Contracting Officer any change in the physical condition of the reactor or its operating characteristics that might affect the safe operation of the reactor. (5) Shut down the reactor immediately whenever so instructed by the Contracting Officer, or whenever, in the judgment of the Contractor the risk of a nuclear incident endangering persons or property warrants such action. (6) Prepare, in cooperation with other services and facilities available at the site and with the approval of the Contracting Officer, a plan for minimizing the effects of a nuclear incident upon the health and safety of the operating personnel and the public; instruct the personnel as to their participation in such plan and any personal risk to such personnel that may be involved; and participate in such practice exercises as may be desirable to assure the effectiveness of such plans. [26 F.R. 8315, Sept. 2, 1961, as amended at 26 F.R. 11492, Dec. 5, 1961] § 9-7.5007 Use of escalation and price redetermination clauses. [Reserved] PART 9-12-LABOR Subpart 9-12.1-Basic Labor Policies Sec. 9-12.101 Labor Relations (Contractor Personnel Management and Labor Relations). 9-12.5005-1 9-12.5005-2 Subpart 9-12.2-Convict Labor 9-12.5100 Scope of subpart. Steps preliminary to the staffing of new cost-type projects. Role of project contractor management in collective bargaining. Role of the AEC in construction labor relations. 9-12.5104 9-12.5105 Initial wage rates. 9-12.5106 9-12.5107 National Joint Board for the Adjustments in compensation cost-type contracts. Settlement of Jurisdictional Disputes in the Building and Construction Industry. 9-12.5206-1 Responsibility of the Director, Office of Industrial Relations. 9-12.5206-2 The President's Committee on Government Contracts. Assignment of responsibilities. 9-12.5206-4 Compliance reviews. 9-12.5206-3 9-12.5206-5 Complaints. 9-12.5206-6 Incomplete complaints. 9-12.5206-7 Processing of complaints. AUTHORITY: §§ 9-12.101 to 9-12.5206-7 issued under sec. 161 (q), 70 Stat. 1069; 42 U.S.C. 2201 (q). Implement and supplement sec. 205(c), 63 Stat. 390; 40 U.S.C. (c). SOURCE: $ 9-12.101 to 9-12.5206-7 appear at 26 F.R. 728, Jan. 25, 1961, except as otherwise noted. Subpart 9-12.1-Basic Labor Policies § 9-12.101 Labor Relations (Contractor Personnel Management and Labor Relations). The extent of Government ownership of the nation's atomic energy plant and materials, and the overriding concerns of national defense and security, impose special conditions on personnel and labor relations in the atomic energy program; namely, continuity of vital operations at AEC installations must be assured; the AEC must retain absolute authority on all questions of security; the AEC reviews labor expenses under cost-type contracts as a part of its responsibility for assuring judicious expenditure of public funds. It is the intent of AEC, despite these limitations, that personnel and labor policies throughout the atomic energy program should reflect the best experience of American industry in aiming to achieve the type of stable, democratic labor-management relationships which the Commission considers are essential to the proper development of the Atomic Energy program in the national interest. The Commission believes that this purpose will be served best by making broad assignments of authority and responsibility in the field of personnel management to its contractors, enabling contractors and their employees to conduct their employment relationships with maximum freedom from interference by the Government. It looks forward to the cooperation and understanding of contractor managements and labor unions in making good the spirit and goals of this policy statement in their relationships with each other and with the AEC on the contract work. The following is intended as an enunciation of the basic principles upon which AEC policy is founded. (a) Employment standards. Contractors are expected to bring experienced, proven personnel from their private operations to staff key positions on the contract work and to recruit other well-qualified personnel as needed. It is the policy of the AEC that no employee or applicant for employment in the atomic energy program shall be discriminated against because of race, religion, color, or national origin. The job qualifications and suitability of prospective employees should be established by the contractor prior to employment by careful personnel investigations. Where a security clearance will be required, the applicant's suitability must be established before a request is made to the AEC for his security clearance. The contractor is responsible for maintaining satisfactory standards of employee qualifications, performance, conduct, and business ethics under his own personnel policies. (b) Security. The Atomic Energy Commission's responsibilities for the security of the Atomic Energy Program will be carried out in a manner consistent with traditional American concepts of justice. On all matters of security at its installations the AEC retains absolute authority and neither the security rules nor their administration are matters for collective bargaining between management and labor. Insofar as AEC security regulations affect the collective bargaining process, the security policies and regulations will be made known to both parties. To the fullest extent feasible, the AEC will consult with representatives of management and labor in formulating security rules and regulations that affect the collective bargaining process. 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 § 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 performed under conditions which do not violate law or public policy. § 9-12.752 Assignment of responsibilities. 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 back) Act. (Anti - Kick 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 |