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

OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 532

RIN 3206-AK94

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

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.

FOR FURTHER INFORMATION CONTACT:

Mark Allen, (202) 606-2838; e-mail

pay-performance-policy@opm.gov;

or FAX: (202) 606-4264.

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.

List of Subjects in 5 CFR Part 532

Administrative practice and procedure, Freedom of information, Government employees, Reporting and recordkeeping requirements, Wages.

Office of Personnel Management.

Linda M. Springer,

Director.

Accordingly, the Office of Personnel Management is amending 5 CFR part 532 as follows:

PART 532—PREVAILING RATE SYSTEMS

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

Authority:

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

Subpart B—Prevailing Rate Determinations

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

§ 532.213

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 codes

2002 NAICS industry titles

311 through 339 (except 323)

All manufacturing classes except printing and related support activities (NAICS 323).

221

Utilities.

481

Air transportation.

482

Rail transportation.

484

Truck transportation.

485 (except 4853)

Transit and ground passenger transportation except taxi and limousine service (NAICS 4853).

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).

492

Couriers and messengers.

493

Warehousing and storage.

515

Broadcasting (except Internet).

517

Telecommunications.

5621

Waste collection.

5622

Waste Treatment and Disposal.

423

Merchant wholesalers, durable goods.

424

Merchant wholesalers, nondurable goods.

3. In § 532.221, revise paragraph (a) to read as follows:

§ 532.221

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 codes

2002 NAICS industry titles

42312

Motor vehicle supplies and new parts merchant wholesalers.

4232

Furniture and home furnishing merchant wholesalers.

42362

Electrical and electronic appliance, television, and radio set merchant wholesalers.

42369

Other electronic parts and equipment merchant wholesalers.

42371

Hardware merchant wholesalers.

42391

Sporting and recreational goods and supplies merchant wholesalers.

42399

Other miscellaneous durable goods merchant wholesalers.

4241

Paper and paper product merchant wholesalers.

42421

Drugs and druggists' sundries merchant wholesalers.

4243

Apparel, piece goods, and notions merchant wholesalers.

42445

Confectionery merchant wholesalers.

4247

Petroleum and petroleum products merchant wholesalers.

4249

Miscellaneous nondurable goods merchant wholesalers.

44132

Tire dealers.

44311

Appliance, television, and other electronic stores.

44411

Home centers.

44611

Pharmacies and drug stores.

4471

Gasoline stations.

44814

Family clothing stores.

4521

Department stores.

45299

All other general merchandise stores.

45321

Office supplies and stationery stores.

4542

Vending machine operators.

71391

Golf courses and country clubs.

71395

Bowling centers.

72111

Hotels (except casino hotels) and motels.

7221

Full-service restaurants.

7222

Limited-service eating places.

7224

Drinking places (alcoholic beverages).

4. In § 532.223, revise paragraph (a) to read as follows:

§ 532.223

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.

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

§ 532.267

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

(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 codes

2002 NAICS industry titles

3341

Computer and peripheral equipment manufacturing.

33422

Radio and television broadcasting and wireless communications equipment manufacturing.

33429

Other communications equipment manufacturing.

3343

Audio and video equipment manufacturing.

334412

Bare printed circuit board manufacturing.

334413

Semiconductor and related device manufacturing.

334418

Printed circuit assembly (electronic assembly) manufacturing.

334419

Other electronic component manufacturing.

334511

Search, detection, navigation, guidance, aeronautical, and nautical system and instrument manufacturing.

334613

Magnetic and optical recording media manufacturing.

42342

Office equipment merchant wholesalers.

42343

Computer and computer peripheral equipment and software merchant wholesalers.

4811

Scheduled air transportation.

4812

Nonscheduled air transportation.

4879

Scenic and sightseeing transportation, other.

4881

Support activities for air transportation.

4921

Couriers.

56172

Janitorial services.

62191

Ambulance services.

81142

Reupholstery and furniture repair.

6. In § 532.279, revise paragraphs (c), introductory text, and (c)(1) to read as follows:

§ 532.279

Special wage schedules for printing positions.

(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.

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

§ 532.285

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 codes

2002 NAICS industry titles

211

Oil and gas extraction.

212

Mining (except oil and gas).

213

Support activities for mining.

221

Utilities.

333

Machinery manufacturing.

334

Computer and electronic product manufacturing.

335

Electrical equipment, appliance, and component manufacturing.

484

Truck transportation.

492

Couriers and messengers.

493

Warehousing and storage.

515

Broadcasting (except Internet).

517

Telecommunications.

562

Waste management and remediation services.

811

Repair and maintenance.

8. Revise § 532.313 to read as follows:

§ 532.313

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 codes

2002 NAICS industry titles

Aircraft Specialized Industry

332912

Fluid power valve and hose fitting manufacturing.

336411

Aircraft manufacturing.

336412

Aircraft engine and engine parts manufacturing.

336413

Other aircraft part and auxiliary equipment manufacturing.

336415

Guided missile and space vehicle propulsion unit and propulsion unit parts manufacturing.

336419

Other guided missile and space vehicle parts and auxiliary equipment manufacturing.

4811

Scheduled air transportation.

4812

Nonscheduled air transportation.

4879

Scenic and sightseeing transportation, other.

4881

Support activities for air transportation.

4921

Couriers.

54171

Research and development in the physical, engineering, and life sciences.

56172

Janitorial services.

62191

Ambulance services.

81142

Reupholstery and furniture repair.

Ammunition Specialized Industry

32592

Explosives manufacturing.

332992

Small arms ammunition manufacturing.

332993

Ammunition (except small arms) manufacturing.

Artillery and Combat Vehicles Specialized Industry

2211

Electric power generation, transmission, and distribution.

2212

Natural gas distribution.

32732

Ready-mix concrete manufacturing.

332212

Hand and edge tool manufacturing.

332323

Ornamental and architectural metal work manufacturing.

332439

Other metal container manufacturing.

332995

Other ordnance and accessories manufacturing.

332999

All other miscellaneous fabricated metal product manufacturing.

33311

Agricultural implement manufacturing.

33312

Construction machinery manufacturing.

333611

Turbine and turbine generator set units manufacturing.

333618

Other engine equipment manufacturing.

333922

Conveyor and conveying equipment manufacturing.

333923

Overhead traveling crane, hoist, and monorail system manufacturing.

333924

Industrial truck, tractor, trailer, and stacker machinery manufacturing.

3361

Motor vehicle manufacturing.

336211

Motor vehicle body manufacturing.

336212

Truck trailer manufacturing.

336312

Gasoline engine and engine parts manufacturing.

336322

Other motor vehicle electrical and electronic equipment manufacturing.

33633

Motor vehicle steering and suspension components (except spring) manufacturing.

33634

Motor vehicle brake system manufacturing.

33635

Motor vehicle transmission and power train parts manufacturing.

336399

All other motor vehicle parts manufacturing.

33651

Railroad rolling stock manufacturing.

336992

Military armored vehicle, tank, and tank component manufacturing.

4231

Motor vehicle and motor vehicle parts and supplies merchant wholesalers.

42381

Construction and mining (except oil well) machinery and equipment merchant wholesalers.

42382

Farm and garden machinery and equipment merchant wholesalers.

4413

Automotive parts, accessories, and tire stores.

44421

Outdoor power equipment stores.

484

Truck transportation.

4862

Pipeline transportation of natural gas.

492

Couriers and messengers.

5171

Wired telecommunications carriers.

5172

Wireless telecommunications carriers (except satellite).

5173

Telecommunications resellers.

5621

Waste collection.

81299

All other personal services.

Communications Specialized Industry

33422

Radio and television broadcasting and wireless communications equipment manufacturing.

33429

Other communications equipment manufacturing.

334511

Search, detection, navigation, guidance, aeronautical and nautical system and instrument manufacturing.

334514

Totalizing fluid meter and counting device manufacturing.

334515

Instrument manufacturing for measuring and testing electricity and electrical signals.

335311

Power, distribution, and specialty transformer manufacturing.

48531

Taxi service.

5151

Radio and television broadcasting.

5152

Cable and other subscription programming.

5171

Wired telecommunications carriers.

5172

Wireless telecommunications carriers (except satellite).

5173

Telecommunications resellers.

5174

Satellite telecommunications.

5175

Cable and other program distribution.

5179

Other telecommunications.

Electronics Specialized Industry

3341

Computer and peripheral equipment manufacturing.

33422

Radio and television broadcasting and wireless communications equipment manufacturing.

33429

Other communications equipment manufacturing.

33431

Audio and video equipment manufacturing.

334412

Bare printed circuit board manufacturing.

334413

Semiconductor and related device manufacturing.

334414

Electronic capacitor manufacturing.

334415

Electronic resistor manufacturing.

334416

Electronic coil, transformer, and other inductor manufacturing.

334417

Electronic connector manufacturing.

334418

Printed circuit assembly (electronic assembly) manufacturing.

334419

Other electronic component manufacturing.

334511

Search, detection, navigation, guidance, aeronautical and nautical system and instrument manufacturing.

334613

Magnetic and optical recording media manufacturing.

42342

Office equipment merchant wholesalers.

42343

Computer and computer peripheral equipment and software merchant wholesalers.

Guided Missiles Specialized Industry

332912

Fluid power valve and hose fitting manufacturing.

3341

Computer and peripheral equipment manufacturing.

33422

Radio and television broadcasting and wireless communications equipment manufacturing.

33429

Other communications equipment manufacturing.

334418

Printed circuit assembly (electronic assembly) manufacturing.

334511

Search, detection, navigation, guidance, aeronautical and nautical system and instrument manufacturing.

334613

Magnetic and optical recording media manufacturing.

3364

Aerospace product and parts manufacturing.

54131

Architectural services.

54133

Engineering services.

54136

Geophysical surveying and mapping services.

54137

Surveying and mapping (except geophysical) services.

54171

Research and development in the physical, engineering, and life sciences.

Heavy Duty Equipment Specialized Industry

332439

Other metal container manufacturing.

332999

All other miscellaneous fabricated metal product manufacturing.

33312

Construction machinery manufacturing.

333923

Overhead traveling crane, hoist, and monorail system manufacturing.

333924

Industrial truck, tractor, trailer, and stacker machinery manufacturing.

33651

Railroad rolling stock manufacturing.

42381

Construction and mining (except oil well) machinery and equipment merchant wholesalers.

Shipbuilding Specialized Industry

336611

Ship building and repairing.

48839

Other support activities for water transportation.

Sighting and Fire Control Equipment Specialized Industry

333314

Optical instrument and lens manufacturing.

3341

Computer and peripheral equipment manufacturing.

33422

Radio and television broadcasting and wireless communications equipment manufacturing.

33429

Other communications equipment manufacturing.

334418

Printed circuit assembly (electronic assembly) manufacturing.

334511

Search, detection, navigation, guidance, aeronautical and nautical system and instrument manufacturing.

334613

Magnetic and optical recording media manufacturing.

Small Arms Specialized Industry

332994

Small arms manufacturing.

(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.

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

BILLING CODE 6325-39-P