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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: March 16, 2000

FROM: Barry McVay, CPCM

SUBJECT: DFARS; Construction and Service Contracts in Noncontiguous States

SOURCE: Federal Register, March 16, 2000, Vol. 65, No. 52, page 14402

AGENCIES: Department of Defense (DOD)

ACTION: Interim Rule

SYNOPSIS: DOD is amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement Section 8071 of the Fiscal Year 2000 Defense Appropriations Act (Public Law 106-79). Section 8071 provides that DOD contracts for construction or services performed in a noncontiguous state (that is, Alaska, Hawaii, Puerto Rico, and various United States possessions) that has an unemployment rate in excess or the national average must include a clause requiring the contractor to employ individuals "who are residents of such state and who, in the case of any craft or trade, possess or would be able to acquire promptly the necessary skills."

DATES: This interim rule is effective March 16, 2000. Comments should be submitted in writing on or before May 15, 2000.

ADDRESSES: Submit written comments to Defense Acquisition Regulations Council, Attn: Ms. Amy Williams, PDUSD (AT&L) DP (DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-3062, fax: 703-602-0350, e-mail: dfars@acq.osd.mil. Cite DFARS Case 99-D308 in all correspondence related to the interim rule.

FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, 703-602-0288.

SUPPLEMENTAL INFORMATION: This interim rule revises DFARS Subpart 222.70, Restrictions on the Employment of Personnel for Work on Construction/Service Contracts in Alaska and Hawaii, and DFARS 252.222-7000, Restrictions on Employment of Personnel, to implement Section 8071 of the Fiscal Year 2000 Defense Appropriations Act (Public Law 106-79), which went into effect October 25, 1999, to revise the coverage 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).

To implement Section 8071 of the Fiscal Year 2000 Defense Appropriations Act, DFARS Subpart 222.70 is retitled "Restrictions on the Employment of Personnel for Work on Construction and Service Contracts in Noncontiguous States"; DFARS 222.7001, Definition, is added which defines "noncontiguous states" as "Alaska, Hawaii, Puerto Rico, the Northern Mariana Islands, American Samoa, Guam, the U.S. Virgin Islands, and any minor outlying island of the United States" (DFARS 222.7001 through DFARS 222.7003 are redesignated as DFARS 222.7002 through DFARS 222.7004, respectively); and references to "Alaska and Hawaii" and "states" are changed to "noncontiguous states" throughout DFARS Subpart 222.70.

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

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