[Federal Register: May 16, 2001 (Volume 66, Number 95)]
[Rules and Regulations]               
[Page 27416-27417]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]





48 CFR Parts 22 and 52

[FAC 97-26; FAR Case 2001-017; Item III]
RIN 9000-AJ13

Federal Acquisition Regulation; Executive Order 13204, Revocation 
of Executive Order on Nondisplacement of Qualified Workers Under 
Certain Contracts

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Interim rule with request for comments.


SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) have agreed on an interim 
rule amending the Federal Acquisition Regulation (FAR) to implement 
Executive Order (E.O.) 13204, Revocation of Executive Order on 
Nondisplacement of Qualified Workers Under Certain Contracts, signed by 
the President on February 17, 2001. The E.O. requires that any rules 
implementing E.O. 12933, Nondisplacement of Qualified Workers Under 
Certain Contracts, be promptly rescinded.

DATES: Effective Date: May 16, 2001.
    Comment Date: Interested parties should submit comments to the FAR 
Secretariat at the address shown below on or before July 16, 2001 to be 
considered in the formulation of a final rule.

ADDRESSES: Submit written comments to: General Services Administration, 
FAR Secretariat (MVP), 1800 F Street, NW, Room 4035, Attn: Ms. Laurie 
Duarte, Washington, DC 20405.
    Submit electronic comments via the Internet to: farcase.2001-
    Please submit comments only and cite FAC 97-26, FAR case 2001-017 
in all correspondence related to this case.

Building, Washington, DC 20405, (202) 501-4755, for information 
pertaining to status or publication schedules. For clarification of 
content, contact Ms. Linda Klein, Procurement Analyst, at (202) 501-
3775. Please cite FAC 97-26, FAR case 2001-017.


A. Background

    Executive Order 12933 was signed October 20, 1994, by President 
Clinton and published in the Federal Register on October 24, 1994 (59 
FR 53559). The E.O. required that building service contracts for public 
buildings include a clause requiring the contractor under a contract 
that succeeds a contract for performance of similar services at the 
same public building to offer certain employees under the predecessor 
contract, a right of first refusal to employment under the new 
contract. E.O. 12933 was implemented in the FAR as an interim rule in 
FAC 97-01 (62 FR 44823) dated August 22, 1997. The regulation was 
finalized with minor changes in FAC 97-11 (64 FR 10545) dated March 4, 
1999. A further change was made in FAC 97-15 adding the clause to the 
commercial item clause list at 52.212-5 (64 FR 72450, December 27, 
    On February 17, 2001, President George W. Bush signed E.O. 13204 
rescinding E.O. 12933 and calling for the prompt recession of any 
orders, rules, regulations, guidelines, or policies implementing or 
enforcing E.O. 12933, to the extent consistent with law. Contracting 
officers should not take any action on any complaint filed under former 
FAR Subpart 22.12.
    Effective March 23, 2001, the Department of Labor rescinded its 
rule implementing E.O. 12933 (66 FR 16126, March 23, 2001).
    This is not a significant regulatory action and, therefore, was not 
subject to review under Section 6(b) of Executive Order 12866, 
Regulatory Planning and Review, dated September 30, 1993. This rule is 
not a major rule under 5 U.S.C. 804.

B. Regulatory Flexibility Act

    The interim rule is not expected to have a significant economic 
impact on a substantial number of small entities within the meaning of 
the Regulatory Flexibility Act, 51 U.S.C. 601, et seq., because the 
rule merely removes requirements from the FAR that implemented 
regulations issued by the Department of Labor (DoL) for which DoL 
certified would not have a significant economic effect on a substantial 
number of small entities (62 FR 28175, May 22, 1997). This rule 
implements the requirements of E.O. 13204. Therefore, an Initial 
Regulatory Flexibility Analysis has not been performed. The Councils 
will consider comments from small entities concerning the affected FAR 
Parts in accordance with 5 U.S.C. 610. Interested parties must submit 
such comments separately and should cite 5 U.S.C. 601, et seq. (FAC 97-
26, FAR case 2001-017), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose information collection requirements that require 
the approval of the Office of Management and Budget under 44 U.S.C. 
3501, et seq.

D. Determination To Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense (DoD), the Administrator of General Services (GSA), and the 
Administrator of the National Aeronautics and Space Administration 
(NASA) that urgent and compelling reasons exist to promulgate this 
interim rule without prior opportunity for public comment. This action 
is necessary to implement E.O. 13204, Revocation of Executive Order on 
Nondisplacement of Qualified Workers Under Certain Contracts, dated 
February 17, 2001. E.O. 13204 required the Federal Acquisition 
Regulatory Council to promptly rescind any orders, rules, regulations, 
guidelines, or policies implementing or enforcing E.O. 12933. However, 
pursuant to Public Law 98-577 and FAR 1.501, public comments

[[Page 27417]]

received in response to this interim rule will be considered in 
formulating the final rule.

List of Subjects in 48 CFR Parts 22 and 52

    Government procurement.

    Dated: May 10, 2001.
Al Matera,
Director, Acquisition Policy Division.

    Therefore, DoD, GSA, and NASA amend 48 CFR parts 22 and 52 as set 
forth below:
    1. The authority citation for 48 CFR parts 22 and 52 continues to 
read as follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).


Subpart 22.12  [Reserved]

    2. Remove and reserve Subpart 22.12.


52.212-5  [Amended]

    3. Amend section 52.212-5 by revising the clause date to read May 
2001; and by removing paragraph (c)(6).

52.222-50  [Reserved]

    4. Remove and reserve section 52.222-50.

[FR Doc. 01-12246 Filed 5-15-01; 8:45 am]