Sec. 601. Limitation on the allowability of costs

309 words·~1 min read·/bill/114/hr/5939/ih/section-601

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Chapter 43 of division C of subtitle I of title 41, United States Code, is amended by adding at the end the following new section: Costs incurred by a contractor relating to any covered activity are not allowable as reimbursable costs under a contract entered into by an executive agency. Such unallowable costs shall be excluded from any billing, claim, proposal, or disbursement applicable to any such contract. For purposes of subsection (a), a covered activity, with respect to a contract entered into by an executive agency, includes any activity undertaken to persuade employees of the contractor to exercise or not to exercise, or concerning the manner of exercising, rights to organize and bargain collectively through representatives of the employees’ own choosing, and includes the following:

Preparing and distributing materials. Hiring or consulting legal counsel or consultants. Holding meetings (including paying the salaries of the attendees at meetings held for this purpose). Planning or conducting activities by managers, supervisors, or union representatives during work hours. The costs described in subsection

(a)do not include costs of maintaining satisfactory relations between the contractor and its employees, including costs of labor-management committees, employee publications (other than those undertaken to persuade employees to exercise or not to exercise, or concerning the manner of exercising, the right to organize and bargain collectively), and other related activities. . The table of sections at the beginning of chapter 43 of division C of subtitle I of title 41, United States Code, is amended by adding after the item relating to section 4310 the following new item: 4311. Limitation on the allowability of costs. . Section 31.205–21 of title 48, Code of Federal Regulations (relating to labor relations costs), shall be considered to implement the provisions of section 4311 of title 41, United States Code, as added by subsection (a), and may be revised as necessary.