5 C.F.R. Subpart C—Determining Rates for Principal Types of Positions


Title 5 - Administrative Personnel

Title 5: Administrative Personnel
PART 532—PREVAILING RATE SYSTEMS

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Subpart C—Determining Rates for Principal Types of Positions

§ 532.301   Definitions.

For purposes of this subpart:

Nearest similar wage area means the nearest wage area which is most similar to the local wage area in terms of private employment, population, relative numbers of private employers in major industry categories, and kinds and sizes of industry establishments and in which adequate private establishments exist in the survey area whose activities are similar to those in the dominant industry.

Principal types of appropriated or nonappropriated fund positions means those groups of occupations which require work of a specialized nature and which are peculiar to a specific Government industry which is the dominant industry among the total wage employment in the wage area.

Specialized private industry means private industry establishments in those industry groups, comparable to the specialized Government industries listed in §532.303 of this section, which must be included in a wage survey in order to obtain data comparable to a dominant industry.

§ 532.303   Specialized industry.

(a)(1) Under the appropriated fund wage system, a “specialized industry” is a Federal activity engaged in the production or repair of aircraft, ammunition, artillery and combat vehicles, communication equipment, electronic equipment, guided missiles, heavy duty equipment, shipbuilding, sighting and fire control equipment, or small arms.

(2) Under the nonappropriated fund wage system a “specialized industry” includes only nonappropriated fund operated eating and drinking places. Additional industries may be considered as specialized industries upon approval of the Office of Personnel Management.

§ 532.305   Dominant industry.

(a)(1) A specialized industry is a “dominant industry” if the number of wage employees in the wage area who are subject to the wage schedule for which the survey is made and employed in occupations which comprise the principal types of appropriated or nonappropriated fund positions in the specialized industry comprise:

(i) For appropriated fund activities,

(A) At least 25 percent of the total wage employment or

(B) 1,000 or more employees in a wage area having more than 4,000 wage employees; and

(ii) For nonappropriated fund activities

(A) At least 25 percent of the total wage employment or

(B) 100 or more wage employees in a wage area having 400 or more wage employees.

(2) If two or more specialized industries in a wage area qualify as dominant industries, the two specialized industries having the largest number of wage employees shall be the dominant industries for purposes of applying the requirements of this subpart.

§ 532.307   Determinating whether a dominant industry exists in a wage area.

(a) The chairperson of the local wage survey committee shall, before a full-scale wage survey is scheduled to begin, notify all appropriated or nonappropriated fund activities having employees subject to the wage schedules for which the survey is conducted so that organizations and individuals may submit written recommendations and supporting evidence to the local wage survey committee concerning principal types of appropriated or nonappropriated fund positions in the area. Each appropriated or nonappropriated fund activity shall publicize the opportunity to make such recommendations.

(b)(1) Before conducting a full-scale wage survey an occupational inventory of employees subject to the wage schedules for which the survey is conducted shall be obtained from each appropriated or nonappropriated fund activity in the area having such employees.

(2) After reviewing the occupational inventory and considering the recommendations received pursuant to paragraph (a) of this section, the local wage survey committee shall formulate its recommendations and prepare a written report concerning the existence of specialized industries within the wage area.

(3) The report of the recommendations, the occupational inventory, and the recommendations and supporting evidence received pursuant to paragraph (a) of this section shall be forwarded to the lead agency.

(c) The lead agency shall refer the occupational inventory and the reports received pursuant to paragraph (b) of this section to the agency wage committee for its consideration and recommendation if:

(1) The lead agency proposes not to accept the recommendation of the local wage survey committee concerning the specifications of the local wage survey; or

(2) The local wage survey committee's report is accompanied by a minority report.

(d) The lead agency shall determine, in writing, after taking into consideration the reports and recommendations received under paragraphs (b) and (c) of this section, and prior to ordering a full-scale wage survey to begin, whether the principal types of appropriated or nonappropriated fund positions in a local wage area comprise a dominant industry. The determination shall remain in effect until the next full-scale wage survey in the area.

[46 FR 21344, Apr. 10, 1981, as amended at 55 FR 46179, Nov. 1, 1990]

§ 532.309   Determining adequacy of specialized private industry.

(a) Specialized private industry comparable to an appropriated fund dominant industry is adequate when:

(1) The survey area is one of the 25 largest Standard Metropolitan Statistical Areas, or the total number of employees of private industry establishments in the specialized private industry located in the survey area is at least equal to the total number of appropriated fund wage employees in occupations which comprise the principal types of appropriated positions in the dominant industry who are subject to the wage schedules for which the survey is made; or

(2) For any dominant industry except “ammunition,” the job matches obtained from the specialized private industry include one regular survey job in the WG–01 through 04 range, one regular survey job in the WG–05 through 08 range, one regular survey job in the WG–09 and above range, and one special survey job in the WG–09 and above range all providing at least 20 unweighted samples each; and three other regular or special survey jobs, each providing at least 10 unweighted samples.

(3) For the dominant industry “ammunition,” the job matches obtained from the specialized survey industries include one regular survey job in the WG–01 through 04 range, one special survey job in the WG–05 through 08 range, and one regular survey job in the WG–09 through 15 range, all providing at least 20 unweighted samples each; and three other regular or special survey jobs, each providing at least 10 unweighted samples.

(b) Specialized private industry comparable to a nonappropriated fund dominant industry is adequate when:

(1) The total number of employees of private industry establishments similar to the dominant industry located in the survey are at least equal to the number of nonappropriated fund wage employees in positions which comprise the principal types of nonappropriated fund positions in the dominant industry who are subject to the wage schedules for which the survey is made; and

(2) The job matches obtained from all industries surveyed for regular survey jobs related to the dominant industry include one regular survey job in the NA–01 through 04 range providing at least 10 samples; and one regular survey job in the NA–05 through 15 range and one other regular survey job, each providing at least five samples.

§ 532.311   Survey of specialized private industry related to a dominant industry.

If it is determined that there are one or more dominant industries within a wage area, the lead agency shall insure that the survey includes the industries and survey jobs related to the dominant industries. When the related industry within the local wage survey area fails to meet the criteria in §532.309 of this subpart, the lead agency shall obtain data related to the dominant industry from the survey area of the wage area which is determined to be the nearest similar area which will provide adequate data under the criteria in §532.309 of this subpart.

[46 FR 21344, Apr. 10, 1981, as amended at 55 FR 46179, Nov. 1, 1990]

§ 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.

[71 FR 35375, June 20, 2006]

§ 532.315   Additional survey jobs.

(a) For appropriated fund surveys, when the lead agency adds to the industries to be surveyed, it shall add to the required survey jobs the specialized survey jobs listed below opposite the industry added:

 ------------------------------------------------------------------------  Specialized industry      Specialized survey jobs          Grade------------------------------------------------------------------------Aircraft................  Electronics Mechanic......  WG-11                          Aircraft Structures         WG-7                           Assembler B.                          Aircraft Structures         WG-9                           Assembler A.                          Aircraft Mechanic.........  WG-10                          Aircraft Mechanic includes  ..................                          Aircraft Electrician......  WG-10                          Aircraft Welder...........  WG-10                          Aircraft Sheetmetal Worker  WG-10                          Hydromechanical Fuel        WG-10                           Control Repairer.                          Aircraft Engine Mechanic..  WG-10                          Aircraft Jet Engine         WG-10                           Mechanic.                          Flight Line Mechanic......  WG-10                          Aircraft Attendant (ground  WG-7                           services).Ammunition..............  Munitions Handler.........  WG-4                          Munitions Operator........  WG-4                          Munitions Operator........  WG-6                          Munitions Operator........  WG-8                          Munitions Operator........  WG-9                          Explosives Operator.......  WG-9Artillery and combat      Automotive Mechanic         WG-10 vehicles.                 (limited to data obtained                           in special industries).                          Heavy Mobile Equipment      WG-10                           Mechanic.                          Artillery Repairer........  WG-9                          Combat Vehicle Mechanic...  WG-8                          Combat Vehicle Mechanic     WG-10                           (Engine).                          Combat Vehicle Mechanic...  WG-11                          Diesel Engine Mechanic      WG-10                           (limited to data obtained                           in special industries.Communications..........  Telephone Installer-        WG-9                           Repairer.                          Central Office Repairer...  WG-11                          Electronic Test Equipment   WG-11                           Repairer.                          Television Station          WG-11                           Mechanic.Electronics.............  Electronics Mechanic......  WG-11                          Industrial Electronic       WG-10                           Controls Repairer.                          Electronic Test Equipment   WG-11                           Repairer.                          Electronic Computer         WG-11                           Mechanic.                          Television Station          WG-11                           Mechanic.Guided missiles.........  Electronic Computer         WG-11                           Mechanic.                          Guided Missile Mechanical   WG-11                           Repairer.Heavy duty equipment....  Heavy Mobile Equipment      WG-10                           Mechanic.Shipbuilding............  Electronics Mechanic......  WG-11                          Electrician, Ship.........  WG-10                          Pipefitter, Ship..........  WG-10                          Shipfitter................  WG-10                          Shipwright................  WG-10                          Machinist (Marine)........  WG-10Sighting and fire         Electronic Computer         WG-11 control.                  Mechanic.                          Fire Control Instrument     WG-11                           Repairman.                          Electronic Fire Control     WG-11                           Systems Repairer.                          Electronic Fire Control     WG-12                           Systems Repairer.                          Electronic Fire Control     WG-13                           Systems Repairer.Small arms..............  Small Arms Repairer.......  WG-8------------------------------------------------------------------------

(b) For nonappropriated fund surveys, a lead agency must obtain prior approval of OPM to add a job not listed in §532.223 of this subpart.

[55 FR 46180, Nov. 1, 1990]

§ 532.317   Use of data from the nearest similar area.

(a)(1) For prevailing rate employees other than those in the Department of Defense, the lead agency shall, in establishing the regular schedule under the provisions of this subpart, analyze and use the acceptable data from the nearest similar wage area together with the data obtained from inside the local wage survey area. The regular schedule for Department of Defense prevailing rate employees shall be based on local wage data only.

(2) The total number of job matches obtained from the nearest similar wage area shall be equal to the number required for adequacy in §532.309(a) (2) and (3) of this subpart for appropriated fund surveys and §532.309(b)(2) of this subpart for nonappropriated fund surveys.

(3) Data shall be selected for inclusion on the basis of the most populous survey jobs as determined by the weighted job matches found in the dominant industry in the selected reference area. In identifying survey jobs for which reference area samples will be included, the jobs required at limited grade ranges shall be selected before jobs in the unlimited grade range. When there is a tie in the selection procedure, the highest graded job shall be selected first.

(4) If there are two dominant industries for which data are obtained from nearest similar areas, the procedure described in paragraph (a)(2) of this section shall be applied independently for each of the specialized industries.

(b)(1) The wage rates established for a grade by using data from the nearest similar area may not exceed the wage rates for the same grade in the nearest similar area.

(2) If data are obtained from two nearest similar areas for two dominant industries, the wage rates established for a grade by using these data may not exceed the higher of the wage rates for the same grade in the two nearest similar areas.

(c) The wage data obtained from the nearest similar area or areas may not be used to reduce the wage rates for any grade in the local area below the rates that would be established for that grade without the use of the data from the nearest similar area or areas.

[46 FR 21344, Apr. 10, 1981, as amended at 54 FR 38197, Sept. 15, 1989. Redesignated and amended at 55 FR 46179, Nov. 1, 1990]

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