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Rule

Prevailing Rate Systems; North American Industry Classification System Based Federal Wage System Wage Surveys

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AGENCY:

Office of Personnel Management.

ACTION:

Final rule.

SUMMARY:

The Office of Personnel Management is issuing a final rule to replace the Standard Industrial Classification codes currently used in Federal Wage System regulations with the more recent North American Industry Classification System codes, published by the Office of Management and Budget. The purpose of this change is to update the wage survey industry regulations by adopting the new classification system.

DATES:

Effective date: This rule is effective on July 20, 2006.

Applicability date: This rule applies for local wage surveys beginning on or after November 1, 2006.

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FOR FURTHER INFORMATION CONTACT:

Mark Allen, (202) 606-2838; e-mail pay-performance-policy@opm.gov; or FAX: (202) 606-4264.

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SUPPLEMENTARY INFORMATION:

On November 16, 2005, the Office of Personnel Management (OPM) issued a proposed rule (70 FR 69467) to replace all Standard Industrial Classification (SIC) codes in the Federal Wage System (FWS) regulations with the most closely corresponding North American Industry Classification System (NAICS) codes. Adopting the NAICS system will update the FWS wage survey industry regulations, while making as few changes as possible in the types of industrial establishments already included in FWS wage surveys under the SIC system. These regulations use 2002 NAICS codes. As the Office of Management and Budget updates the NAICS periodically, we will update these regulations to correspond to the updated NAICS codes based on advice we receive from the Federal Prevailing Rate Advisory Committee.

The proposed rule had a 30-day public comment period, during which OPM received no comments. However, the final rule incorporates some formatting changes in the industry charts to improve consistency and readability, and three additional minor changes that are consistent with the intent of the proposed rule. First, section 532.313(b) of title 5, Code of Federal Regulations, limits special job coverage to Automotive Mechanic, Engine Mechanic, and Heavy Mobile Equipment Mechanic only in certain industries included in surveys concerning the Artillery and Combat Vehicles specialized industry, not in all of the specialized industries, as was originally proposed. Second, the four SIC codes in section 532.223(a) have been converted to comparable NAICS codes. We inadvertently overlooked this section in the proposed rule. Third, we are adding NAICS 5175, Cable and other program distribution, to the communications specialized industry in section 532.313 to better match NAICS wage survey industry coverage to the industry coverage of the SIC system. We inadvertently overlooked this industry in the proposed rule.

This final regulation is effective 30 days after publication. However, to provide the lead agency (the Department of Defense) with sufficient time and a fixed date for planning surveys and implementing changes required by the new industry classification system, the regulation is applicable for wage surveys ordered to begin on or after November 1, 2006.

Regulatory Flexibility Act

I certify that these regulations will not have a significant economic impact on a substantial number of small entities because they will affect only Federal agencies and employees.

E.O. 12866, Regulatory Review

The Office of Management and Budget has reviewed this final rule in accordance with Executive Order 12866.

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List of Subjects in 5 CFR Part 532

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Office of Personnel Management.

Linda M. Springer,

Director.

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Accordingly, the Office of Personnel Management is amending

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PART 532—PREVAILING RATE SYSTEMS

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1. The authority citation for part 532 continues to read as follows:

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Authority: 5 U.S.C. 5343, 5346; § 532.707 also issued under 5 U.S.C. 552.

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Subpart B—Prevailing Rate Determinations

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2. In § 532.213, revise paragraph (a) to read as follows:

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Industries included in regular appropriated fund wage surveys.

(a) The lead agency must include the industries in the following North American Industry Classification System (NAICS) codes in all regular appropriated fund wage surveys:

2002 NAICS codes2002 NAICS industry titles
311 through 339 (except 323)All manufacturing classes except printing and related support activities (NAICS 323).
221Utilities.
481Air transportation.
482Rail transportation.
484Truck transportation.
485 (except 4853)Transit and ground passenger transportation except taxi and limousine service (NAICS 4853).
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487 (except 4872)Scenic and sightseeing transportation except scenic and sightseeing transportation, water (NAICS 4872).
488 (except 4883 and 4884)Support activities for transportation except support activities for water transportation (NAICS 4883) and support activities for road transportation (NAICS 4884).
492Couriers and messengers.
493Warehousing and storage.
515Broadcasting (except Internet).
517Telecommunications.
5621Waste collection.
5622Waste Treatment and Disposal.
423Merchant wholesalers, durable goods.
424Merchant wholesalers, nondurable goods.
* * * * *
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3. In § 532.221, revise paragraph (a) to read as follows:

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Industries included in regular nonappropriated fund surveys.

(a) The lead agency must include the following North American Industry Classification System (NAICS) codes in all regular nonappropriated fund wage surveys:

2002 NAICS codes2002 NAICS industry titles
42312Motor vehicle supplies and new parts merchant wholesalers.
4232Furniture and home furnishing merchant wholesalers.
42362Electrical and electronic appliance, television, and radio set merchant wholesalers.
42369Other electronic parts and equipment merchant wholesalers.
42371Hardware merchant wholesalers.
42391Sporting and recreational goods and supplies merchant wholesalers.
42399Other miscellaneous durable goods merchant wholesalers.
4241Paper and paper product merchant wholesalers.
42421Drugs and druggists' sundries merchant wholesalers.
4243Apparel, piece goods, and notions merchant wholesalers.
42445Confectionery merchant wholesalers.
4247Petroleum and petroleum products merchant wholesalers.
4249Miscellaneous nondurable goods merchant wholesalers.
44132Tire dealers.
44311Appliance, television, and other electronic stores.
44411Home centers.
44611Pharmacies and drug stores.
4471Gasoline stations.
44814Family clothing stores.
4521Department stores.
45299All other general merchandise stores.
45321Office supplies and stationery stores.
4542Vending machine operators.
71391Golf courses and country clubs.
71395Bowling centers.
72111Hotels (except casino hotels) and motels.
7221Full-service restaurants.
7222Limited-service eating places.
7224Drinking places (alcoholic beverages).
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4. In § 532.223, revise paragraph (a) to read as follows:

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Establishments included in regular nonappropriated fund surveys.

(a) All establishments having 20 or more employees in the prescribed industries within a survey area must be included in the survey universe. Establishments in NAICS codes 4471, 4542, 71391, and 71395 must be included in the survey universe if they have eight or more employees.

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5. In § 532.267, revise paragraph (c)(1) to read as follows:

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Special wage schedules for aircraft, electronic, and optical instrument overhaul and repair positions in the Puerto Rico wage area.
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(c) * * *

(1) Surveys must, at a minimum, include the air transportation and electronics industries in the following North American Industry Classification System (NAICS) codes:

2002 NAICS codes2002 NAICS industry titles
3341Computer and peripheral equipment manufacturing.
33422Radio and television broadcasting and wireless communications equipment manufacturing.
33429Other communications equipment manufacturing.
3343Audio and video equipment manufacturing.
334412Bare printed circuit board manufacturing.
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334413Semiconductor and related device manufacturing.
334418Printed circuit assembly (electronic assembly) manufacturing.
334419Other electronic component manufacturing.
334511Search, detection, navigation, guidance, aeronautical, and nautical system and instrument manufacturing.
334613Magnetic and optical recording media manufacturing.
42342Office equipment merchant wholesalers.
42343Computer and computer peripheral equipment and software merchant wholesalers.
4811Scheduled air transportation.
4812Nonscheduled air transportation.
4879Scenic and sightseeing transportation, other.
4881Support activities for air transportation.
4921Couriers.
56172Janitorial services.
62191Ambulance services.
81142Reupholstery and furniture repair.
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6. In § 532.279, revise paragraphs (c), introductory text, and (c)(1) to read as follows:

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Special wage schedules for printing positions.
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(c) The lead agency must establish survey specifications for the printing survey as follows:

(1) The lead agency must include North American Industry Classification System (NAICS) codes 323110 and 323114 in the printing survey and may add other NAICS codes in subsector 323 to the survey based on its survey experience.

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7. In § 532.285, revise paragraph (c)(1) to read as follows:

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Special wage schedules for supervisors of negotiated rate Bureau of Reclamation employees.
* * * * *

(c) * * *

(1) Based on Bureau of Reclamation activities and types of supervisory positions in the special wage area, the Bureau of Reclamation must survey private industry companies, with no minimum employment size requirement for establishments, in the following North American Industry Classification System code subsectors:

2002 NAICS codes2002 NAICS industry titles
211Oil and gas extraction.
212Mining (except oil and gas).
213Support activities for mining.
221Utilities.
333Machinery manufacturing.
334Computer and electronic product manufacturing.
335Electrical equipment, appliance, and component manufacturing.
484Truck transportation.
492Couriers and messengers.
493Warehousing and storage.
515Broadcasting (except Internet).
517Telecommunications.
562Waste management and remediation services.
811Repair and maintenance.
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8. Revise § 532.313 to read as follows:

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Private sector industries.

(a) For appropriated fund surveys, the lead agency must use the private sector industries in the following North American Industry Classification System (NAICS) codes when it makes its wage schedule determinations for each specialized Federal industry:

2002 NAICS codes2002 NAICS industry titles
Aircraft Specialized Industry
332912Fluid power valve and hose fitting manufacturing.
336411Aircraft manufacturing.
336412Aircraft engine and engine parts manufacturing.
336413Other aircraft part and auxiliary equipment manufacturing.
336415Guided missile and space vehicle propulsion unit and propulsion unit parts manufacturing.
336419Other guided missile and space vehicle parts and auxiliary equipment manufacturing.
4811Scheduled air transportation.
4812Nonscheduled air transportation.
4879Scenic and sightseeing transportation, other.
4881Support activities for air transportation.
4921Couriers.
54171Research and development in the physical, engineering, and life sciences.
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56172Janitorial services.
62191Ambulance services.
81142Reupholstery and furniture repair.
Ammunition Specialized Industry
32592Explosives manufacturing.
332992Small arms ammunition manufacturing.
332993Ammunition (except small arms) manufacturing.
Artillery and Combat Vehicles Specialized Industry
2211Electric power generation, transmission, and distribution.
2212Natural gas distribution.
32732Ready-mix concrete manufacturing.
332212Hand and edge tool manufacturing.
332323Ornamental and architectural metal work manufacturing.
332439Other metal container manufacturing.
332995Other ordnance and accessories manufacturing.
332999All other miscellaneous fabricated metal product manufacturing.
33311Agricultural implement manufacturing.
33312Construction machinery manufacturing.
333611Turbine and turbine generator set units manufacturing.
333618Other engine equipment manufacturing.
333922Conveyor and conveying equipment manufacturing.
333923Overhead traveling crane, hoist, and monorail system manufacturing.
333924Industrial truck, tractor, trailer, and stacker machinery manufacturing.
3361Motor vehicle manufacturing.
336211Motor vehicle body manufacturing.
336212Truck trailer manufacturing.
336312Gasoline engine and engine parts manufacturing.
336322Other motor vehicle electrical and electronic equipment manufacturing.
33633Motor vehicle steering and suspension components (except spring) manufacturing.
33634Motor vehicle brake system manufacturing.
33635Motor vehicle transmission and power train parts manufacturing.
336399All other motor vehicle parts manufacturing.
33651Railroad rolling stock manufacturing.
336992Military armored vehicle, tank, and tank component manufacturing.
4231Motor vehicle and motor vehicle parts and supplies merchant wholesalers.
42381Construction and mining (except oil well) machinery and equipment merchant wholesalers.
42382Farm and garden machinery and equipment merchant wholesalers.
4413Automotive parts, accessories, and tire stores.
44421Outdoor power equipment stores.
484Truck transportation.
4862Pipeline transportation of natural gas.
492Couriers and messengers.
5171Wired telecommunications carriers.
5172Wireless telecommunications carriers (except satellite).
5173Telecommunications resellers.
5621Waste collection.
81299All other personal services.
Communications Specialized Industry
33422Radio and television broadcasting and wireless communications equipment manufacturing.
33429Other communications equipment manufacturing.
334511Search, detection, navigation, guidance, aeronautical and nautical system and instrument manufacturing.
334514Totalizing fluid meter and counting device manufacturing.
334515Instrument manufacturing for measuring and testing electricity and electrical signals.
335311Power, distribution, and specialty transformer manufacturing.
48531Taxi service.
5151Radio and television broadcasting.
5152Cable and other subscription programming.
5171Wired telecommunications carriers.
5172Wireless telecommunications carriers (except satellite).
5173Telecommunications resellers.
5174Satellite telecommunications.
5175Cable and other program distribution.
5179Other telecommunications.
Electronics Specialized Industry
3341Computer and peripheral equipment manufacturing.
33422Radio and television broadcasting and wireless communications equipment manufacturing.
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33429Other communications equipment manufacturing.
33431Audio and video equipment manufacturing.
334412Bare printed circuit board manufacturing.
334413Semiconductor and related device manufacturing.
334414Electronic capacitor manufacturing.
334415Electronic resistor manufacturing.
334416Electronic coil, transformer, and other inductor manufacturing.
334417Electronic connector manufacturing.
334418Printed circuit assembly (electronic assembly) manufacturing.
334419Other electronic component manufacturing.
334511Search, detection, navigation, guidance, aeronautical and nautical system and instrument manufacturing.
334613Magnetic and optical recording media manufacturing.
42342Office equipment merchant wholesalers.
42343Computer and computer peripheral equipment and software merchant wholesalers.
Guided Missiles Specialized Industry
332912Fluid power valve and hose fitting manufacturing.
3341Computer and peripheral equipment manufacturing.
33422Radio and television broadcasting and wireless communications equipment manufacturing.
33429Other communications equipment manufacturing.
334418Printed circuit assembly (electronic assembly) manufacturing.
334511Search, detection, navigation, guidance, aeronautical and nautical system and instrument manufacturing.
334613Magnetic and optical recording media manufacturing.
3364Aerospace product and parts manufacturing.
54131Architectural services.
54133Engineering services.
54136Geophysical surveying and mapping services.
54137Surveying and mapping (except geophysical) services.
54171Research and development in the physical, engineering, and life sciences.
Heavy Duty Equipment Specialized Industry
332439Other metal container manufacturing.
332999All other miscellaneous fabricated metal product manufacturing.
33312Construction machinery manufacturing.
333923Overhead traveling crane, hoist, and monorail system manufacturing.
333924Industrial truck, tractor, trailer, and stacker machinery manufacturing.
33651Railroad rolling stock manufacturing.
42381Construction and mining (except oil well) machinery and equipment merchant wholesalers.
Shipbuilding Specialized Industry
336611Ship building and repairing.
48839Other support activities for water transportation.
Sighting and Fire Control Equipment Specialized Industry
333314Optical instrument and lens manufacturing.
3341Computer and peripheral equipment manufacturing.
33422Radio and television broadcasting and wireless communications equipment manufacturing.
33429Other communications equipment manufacturing.
334418Printed circuit assembly (electronic assembly) manufacturing.
334511Search, detection, navigation, guidance, aeronautical and nautical system and instrument manufacturing.
334613Magnetic and optical recording media manufacturing.
Small Arms Specialized Industry
332994Small arms manufacturing.
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(b) For wage surveys involving the specialized Federal industry “Artillery and Combat Vehicles” in paragraph (a) of this section, the lead agency must limit special job coverage for industries in NAICS codes 2211, 2212, 32732, 484, 4862, 5621, 492, 5171, 5172, and 5173 to automotive mechanic, diesel engine mechanic, and heavy mobile equipment mechanic.

(c) For nonappropriated fund wage surveys, the lead agency must use NAICS codes 71111, 7221, 7222, 72231, 72232, and 7224 (eating and drinking places) when it determines a wage schedule for a specialized industry.

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[FR Doc. E6-9667 Filed 6-19-06; 8:45 am]

BILLING CODE 6325-39-P