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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: August 17, 2000

FROM: Barry McVay, CPCM

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Construction and Service Contracts in Noncontiguous States

SOURCE: Federal Register, August 17, 2000, Vol. 65, No. 160, page 50150

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: DOD is adopting as final, with changes, the March 16, 2000, interim rule that amended the DFARS to require that DOD contracts for construction or services performed in a noncontiguous state (that is, Alaska, Hawaii, Puerto Rico, and various United States possessions) with an unemployment rate in excess of the national average must include a clause requiring the contractor to employ residents of that state who possess or would be able to acquire promptly the necessary skills.

EDITOR'S NOTE: For more on the interim rule, see the March 16, 2000, FEDERAL CONTRACTS DISPATCH "Defense FAR Supplement (DFARS); Construction and Service Contracts in Noncontiguous States."

EFFECTIVE DATE: August 17, 2000.

FOR FURTHER INFORMATION CONTACT: Amy Williams, Defense Acquisition Regulations Council, OUSD(AT&L)DP(DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-3062; 703-602-0288; fax: 703-602-0350. Cite DFARS Case 98-D308 when referring to this final rule.

SUPPLEMENTAL INFORMATION: On March 16, 2000, an interim rule was published which revised DFARS Subpart 222.70, Restrictions on the Employment of Personnel for Work on Construction and Service Contracts in Noncontiguous States, and FAR 252.222-7000, Restrictions on Employment of Personnel, to implement Section 8071 of the Fiscal Year 2000 Defense Appropriations Act (Public Law 106-79). Section 8071 revised the coverage of the restrictions from "Alaska and Hawaii" to "Noncontiguous States." The restrictions on Alaskan and Hawaiian employment have been in effect since enactment of the Fiscal Year 1986 Defense Appropriations Act (Public Law 99-190). One comment was received, and the interim rule is finalized with additional revisions:

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

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