44 CFR Part 332

Fed. Emergency Mgmt. Agency, DHS

Pt. 332

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§ 331.2 Policy.
(a) It is the policy of the Federal
Government to award appropriate contracts to eligible labor surplus area
concerns, to place production facilities
in labor surplus areas, and to make the
best use of our natural, industrial and
labor resources in order to achieve the
following objectives:
(1) To preserve management and employee skills necessary to the fulfillment of Government contracts and
purchases;
(2) To maintain productive facilities;
(3) To improve utilization of the Nation’s total economic potential by
making use of the labor force resources
of each area; and
(4) To help ensure timely delivery of
required goods and services and to promote readiness for mobilization by locating procurement where the needed
labor force and facilities are fully
available.
(b) This policy is consonant with the
intent of Public Law 95–89 and Public
Law 95–507 as implemented by E.O.
12073. In carrying out this policy, Federal departments and agencies shall be
guided by E.O. 12073, the policy direction of the Office of Federal Procurement Policy and implementing regulations.
§ 331.3 Scope and applicability.
The provisions of this policy apply to
all Federal departments and agencies,
except as otherwise prohibited by law.
In addition to these normal duties;
(a) The Secretary of Commerce shall:
(1) In cooperation with State economic development agencies, the Secretary of Defense, the Administrator of
General Services, and the Administrator of Small Business Administration, assist concerns which have agreed
to perform contracts in labor surplus
areas in obtaining Government procurement business by providing such
concerns with timely information on
proposed Government procurements.
(2) Urge concerns planning new production facilities to consider the advantages of locating in labor surplus
areas.
(3) Provide technical advice and
counsel to groups and organizations in
labor surplus areas on planning industrial parks, industrial development or-

ganizations, expanding tourist business, and available Federal aids.
(b) The Administrator of the Small
Business Administration shall make
available to small business concerns in
labor surplus areas all of its services,
endeavor to ensure opportunity for
maximum participation by such concerns in Government procurement, and
give consideration to the needs of these
concerns in the making of joint small
business set-asides with Government
procurement agencies.
(c) OFPP shall coordinate the maintenance by Federal agencies of current
information on the manufacturing capabilities of labor surplus area concerns with respect to Government procurement and disseminate such information to Federal departments and
agencies.
§ 331.4 Special consideration.
When an entire industry that sells a
significant proportion of its production
to the Government is generally depressed or has a significant proportion
of its production, manufacturing and
service facilities located in a labor surplus area, the Administrator, Federal
Emergency Management Agency, or
successor in function, after notice to
and hearing of interested parties, will
give consideration to appropriate
measures applicable to the entire industry.
§ 331.5 Production facilities.
All Federal departments and agencies
shall give consideration to labor surplus areas in the selection of sites for
Government-financed production facilities, including expansion, to the extent
that such selection is consistent with
existing law and essential economic
and strategic factors.

PART 332—VOLUNTARY AGREEMENTS UNDER SECTION 708 OF
THE DEFENSE PRODUCTION ACT
OF 1950, AS AMENDED
Sec.
332.1 General provisions.
332.2 Developing voluntary agreements.
332.3 Carrying out voluntary agreements.
332.4 Termination or modifying voluntary
agreements.
332.5 Public access to records and meetings.

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§ 332.1

44 CFR Ch. I (10–1–23 Edition)

AUTHORITY: Sec. 708, Defense Production
Act of 1950, as amended (50 U.S.C. app. 2158);
E.O. 10480, 3 CFR, 1949–1953 Comp., p. 961, as
amended; E.O. 12148, 44 FR 43239.
SOURCE: 46 FR 2350, Jan. 9, 1981, unless otherwise noted.

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§ 332.1

General provisions.

(a) Pursuant to section 708 of the Defense Production Act of 1950, as amended (50 U.S.C. App. 2158), the President
may consult with representatives of industry,
business,
financing,
agriculture, labor, or other interests, and
may approve the making of voluntary
agreements to help provide for the defense of the United States by developing preparedness programs and expanding productive capacity and supply beyond levels needed to meet essential civilian demand.
(b) Sponsor. (1) As used in this part,
‘‘sponsor’’ of a voluntary agreement is
an officer of the Government who, pursuant to a delegation or redelegation of
the functions given to the President by
section 708 of the Defense Production
Act (DPA) of 1950, as amended, proposes or otherwise provides for the development or carrying out of a voluntary agreement.
(2) The use of voluntary agreements,
as authorized by section 708 of the DPA
to help provide for the defense of the
United States through the development
of preparedness programs, is an activity coordinated by the Administrator
of the Federal Emergency Management
Agency, as provided by sections 101 and
501(a) of Executive Order 10480, as
amended.
(3) The sponsor of a voluntary agreement shall carry out sponsorship functions subject to the direction and control of the Administrator of the Federal Emergency Management Agency.
(c) This part applies to the development and carrying out under section
708 of the DPA, as amended, of all voluntary agreements, and the carrying
out of any voluntary agreement which
was entered into under former section
708 of the DPA and in effect immediately prior to April 14, 1976, and
which is in a period of extension as authorized by subsection 708(f)(2) of the
DPA.
(d) The rules in the part void any
provision of a voluntary agreement to

which they apply, if that provision is
contrary to or inconsistent with them.
Each voluntary agreement shall be
construed as containing every substantive provision that these rules require, whether or not a particular provision is included in the agreement.
(e) Pursuant to subsection 708(d) of
the DPA, the sponsor may establish
such advisory committees as he deems
to be necessary for developing or carrying out voluntary agreements. Such
advisory committees shall comply with
this part as well as with the requirements and procedures of the Federal
Advisory Committee Act (Pub. L. 92–
463, as amended).
§ 332.2 Developing voluntary agreements.
(a) Purpose and scope. This section establishes the standards and procedures
by which voluntary agreements may be
developed through consultation, pursuant to subsection 708(c) of the DPA.
(b) Proposal to develop an agreement.
(1) A sponsor who wishes to develop a
voluntary agreement shall submit to
the Attorney General and the Administrator of the Federal Emergency Management Agency a document proposing
the agreement. The proposal will include statements as to: The purpose of
the agreement; the factual basis for
making the finding required in subsection 708(c)(1) of the DPA; the proposed participants in the agreement;
and any coordination with other Federal agencies accomplished in connection with the proposal.
(2) If the Attorney General, after consultation with the Chairman of the
Federal Trade Commission, approves
this proposal, the sponsor shall then
initiate one or more meetings of interested persons to develop the agreement.
(c) Conduct of meetings held to develop
the agreement. (1) The sponsor shall give
to the Attorney General, the Chairman
of the Federal Trade Commission, and
the Administrator of the Federal
Emergency Management Agency adequate written notice of each meeting
to develop a voluntary agreement. The
sponsor shall also publish in the FEDERAL REGISTER notice of the time,
place, and nature of each meeting at
least seven days prior to the meeting.

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Fed. Emergency Mgmt. Agency, DHS

§ 332.3

(2) The sponsor shall chair each
meeting held to develop a voluntary
agreement. Both the Attorney General
and the Chairman of the Federal Trade
Commission, or their delegates, shall
attend each of these meetings.
(3) Any interested person may attend
a meeting held to develop a voluntary
agreement, unless the sponsor of the
agreement limits attendance pursuant
to § 332.5 of this part.
(4) Any interested person may, as set
out in the FEDERAL REGISTER meeting
notice, submit written data and views
concerning the proposed voluntary
agreement, and at the discretion of the
Chairman of the meeting, may be given
the opportunity for oral presentation.
(d) Maintenance of records. (1) The
sponsor is responsible for the making
of a full and verbatim transcript of
each meeting. The Chairman shall send
this transcript, and any voluntary
agreement resulting from the meeting,
to the Attorney General, the Chairman
of the Federal Trade Commission, the
Administrator of the Federal Emergency Management Agency, and any
other party or repository required by
law.
(2) The sponsor of a voluntary agreement shall maintain each meeting
transcript and voluntary agreement,
and make them available for public inspection and copying the extent required by § 332.5 of this part.
(e) Effectiveness of agreements. The following steps must occur before a new
voluntary agreement or an extension of
an existing agreement may become effective:
(1) The sponsor must approve the
agreement and certify in writing that
it is necessary to carry out the purposes of subsection 708(c)(1) of the
DPA;
(2) The Administrator of the Federal
Emergency Management Agency must
approve this certification, and submit
it to the Attorney General with a request for a written finding; and
(3) The Attorney General, after consulting with the Chairman of the Federal Trade Commission, must issue a
written finding that the purposes of
subsection 708(c)(1) can not reasonably
be achieved through a voluntary agreement having less anti-competitive ef-

fects or without any voluntary agreement.
§ 332.3 Carrying out voluntary agreements.
(a) Purpose and scope. This section establishes the standards and procedures
by which the participants in each approved voluntary agreement shall
carry out the agreement.
(b) Participants. The participants in
each voluntary agreement shall be reasonably representative of the appropriate industry or segment of that industry.
(c) Conduct of meetings held to carry
out an agreement. (1) The sponsor of a
voluntary agreement shall initiate, or
approve in advance, each meeting of
the participants in the agreement held
to discuss problems, determine policies, recommend actions, and make decisions necessary to carry out the
agreement.
(2) The sponsor shall provide to the
Attorney General, the Chairman of the
Federal Trade Commission, and the Administrator of the Federal Emergency
Management Agency adequate prior
notice of the time, place, and nature of
each meeting, and a proposed agenda of
each meeting. The sponsor shall also
publish in the FEDERAL REGISTER, reasonably in advance of each meeting, a
notice of time, place, and nature of the
meeting. If the sponsor has determined,
pursuant to § 332.5 of this part, to limit
attendance at the meeting, the sponsor
shall publish this FEDERAL REGISTER
notice within ten days of the meeting.
(3) Any interested person may attend
a meeting held to carry out a voluntary agreement unless the sponsor
has restricted attendance pursuant to
§ 332.5 of this part. A person attending a
meeting under this section may
present oral or written data, views, and
arguments to any limitations on the
manner of presentation that the sponsor may impose.
(4) No meeting shall be held to carry
out any voluntary agreement unless a
Federal employee, other than an individual employed pursuant to 5 U.S.C.
3109, is in attendance. Any meeting to
carry out a voluntary agreement may
be attended by the sponsor of the
agreement, the Attorney General, the

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§ 332.4

44 CFR Ch. I (10–1–23 Edition)

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Chairman of the Federal Trade Commission, the Administrator of the Federal Emergency Management Agency,
or their delegates.
(5) Notwithstanding any other provision of this section, a meeting between
a single participant and the sponsor
solely to deliver or exchange information is not subject to the requirements
and procedures of this section, provided
that a copy of the information is
promptly delivered to the Attorney
General, the Chairman of the Federal
Trade Commission, and the Administrator of the Federal Emergency Management Agency.
(d) Maintenance of records. (1) The
participants in any voluntary agreement shall maintain for five years all
minutes of meetings, transcripts,
records, documents, and other data, including any communications among
themselves or with any other member
of their industry, related to the carrying out of the voluntary agreement.
The participants shall agree, in writing, to make available to the sponsor,
the Attorney General, the Chairman of
the Federal Trade Commission and the
Administrator of the Federal Emergency Management Agency for inspection and copying at reasonable times
and upon reasonable notice any item
that this section requires them to
maintain.
(2) Any person required by this paragraph to maintain records shall indicate specific portions, if any, that such
person believes should not be disclosed
to the public pursuant to § 332.5 of this
part, and the reasons therefor. Any
item made available to a Government
official named in this paragraph shall
be available from that official for public inspection and copying to the extent set forth in § 332.5 of this part.
§ 332.4 Termination or modifying voluntary agreements.
The Attorney General may terminate
or modify a voluntary agreement, in
writing, after consultation with the
Chairman of the Federal Trade Commission and the sponsor of the agreement. The sponsor of the agreement,
with the concurrence of or at the direction of the Administrator of the Federal Emergency Management Agency,
may terminate or modify a voluntary

agreement, in writing, after consultation with the Attorney General and the
Chairman of the Federal Trade Commission. Any person who is a party to
a voluntary agreement may terminate
his participation in the agreement
upon written notice to the sponsor.
Any antitrust immunity conferred
upon the participants in that agreement by subsection 708(j) of the DPA
shall not apply to any act or omission
occurring after the termination of the
voluntary
agreement.
Immediately
upon modification of a voluntary
agreement, no antitrust immunity
shall apply to any subsequent act or
omission that is beyond the scope of
the modified agreement.
§ 332.5 Public access to records and
meetings.
(a) Interested persons may, pursuant
to 5 U.S.C. 552, inspect or copy any voluntary agreement, minutes of meetings, transcripts, records, or other data
maintained pursuant to these rules.
(b) Except as provided by paragraph
(c) of this section, interested persons
may attend any part of a meeting held
to develop or carry out a voluntary
agreement pursuant to these rules.
(c) The sponsor of a voluntary agreement may withhold material described
in this section from disclosure and restrict attendance at meetings only on
the grounds specified in:
(1) Section 552(b)(1) of 5 U.S.C., which
applies to matter specifically required
by Executive Order to be kept secret in
the interest of the national defense or
foreign policy. This section shall be interpreted to included matter protected
under Executive Order 12065, dated
June 28, 1978 (3 CFR 1979–1975 Comp. p.
678), establishing categories and criteria for classification; and
(2) Section 552(b)(3) of 5 U.S.C., which
applies to matter specifically exempted
from disclosure by statute; and
(3) Section 552(b)(4) of 5 U.S.C., which
applies to trade secrets and commercial or financial information obtained
from a person as privileged and confidential.

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