13.005
List of laws inapplicable to contracts and subcontracts at or below the simplified acquisition threshold
FAR 13.005 exempts contracts at or below the simplified acquisition threshold from certain federal laws, streamlining requirements for small-dollar acquisitions.
Overview
FAR 13.005 provides a list of specific federal laws that do not apply to contracts and subcontracts at or below the simplified acquisition threshold (SAT), unless otherwise stated. This section is designed to streamline procurement for smaller contracts by exempting them from certain statutory requirements that typically apply to larger acquisitions. It also outlines the process for updating this list and exceptions where laws may still apply, such as those with criminal or civil penalties or those that explicitly override the exemption.
Key Rules
- List of Inapplicable Laws
- Contracts and subcontracts at or below the SAT are exempt from several specified laws, including those related to ROTC access, contingent fees, examination of contractor records, subcontractor sales restrictions, arms control certifications, veterans' employment reporting, and drug-free workplace requirements (except for individuals).
- Future Laws
- New laws affecting acquisitions will be added to this list unless the FAR Council determines otherwise in writing, except for laws with penalties or explicit applicability below the SAT.
- Petition Process
- Individuals may petition the OFPP Administrator to add laws to the exemption list, with a 60-day review period for the FAR Council to object.
Responsibilities
- Contracting Officers: Must ensure that contracts at or below the SAT do not include clauses or requirements from the listed inapplicable laws.
- Contractors: Should be aware that certain statutory requirements do not apply to their contracts at or below the SAT, but must comply with all other applicable laws and regulations.
- Agencies: Must monitor and update the list as new laws are enacted and respond to petitions for changes.
Practical Implications
- This section reduces administrative burden and compliance costs for small-dollar contracts, making the acquisition process more efficient. Contractors should confirm which requirements are waived under the SAT, but remain vigilant for exceptions, especially for laws with penalties or explicit applicability. Misapplying exemptions or overlooking exceptions can lead to compliance issues.