13.005 List of laws inapplicable to contracts and subcontracts at or below the simplified acquisition threshold
Source: FAR 13.005 on acquisition.gov
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.
(a) The following laws are inapplicable to all contracts and subcontracts (if otherwise applicable to subcontracts) at or below the simplified acquisition threshold pursuant to http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section1905&num=0&edition=prelim" target="_blank">41 U.S.C. 1905:
(1) https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section983&num=0&edition=prelim" target="_blank">10 U.S.C. 983, Institutions of Higher Education that Prevent ROTC Access or Military Recruiting on Campus: Denial of Grants and Contracts from Department of Defense, Department of Education, and Certain Other Departments and Agencies (see 9.110).
(2) https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3321&num=0&edition=prelim" target="_blank">10 U.S.C. 3321(b) and https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section3901&num=0&edition=prelim" target="_blank">41 U.S.C. 3901(b) (contract clause regarding contingent fees).
(3) https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3841&num=0&edition=prelim" target="_blank">10 U.S.C. 3841 and https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section4706&num=0&edition=prelim" target="_blank">41 U.S.C. 4706 (authority to examine books and records of (contractors).
(4) https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4655&num=0&edition=prelim" target="_blank">10 U.S.C. 4655 and https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section4704&num=0&edition=prelim" target="_blank">41 U.S.C. 4704 (prohibition on limiting subcontractors direct sales to the United States).
(5) https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2593e&num=0&edition=prelim" target="_blank">22 U.S.C. 2593e Measures Against Persons Involved in Activities that Violate Arms Control Treaties or Agreements with the United States. (The requirement at https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2593e&num=0&edition=prelim" target="_blank">22 U.S.C. 2593e(c)(3)(B) to provide a certification does not apply.)
(6) https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section1354&num=0&edition=prelim" target="_blank">31 U.S.C. 1354(a) Limitation on Use of Appropriated Funds for Contracts with Entities Not Meeting Veterans' Employment Reporting Requirements (see 22.1302).
(7) http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section8102(a)(1)&num=0&edition=prelim" target="_blank">41 U.S.C. 8102(a)(1) (Drug-Free Workplace), except for individuals.
(b) The Federal Acquisition Regulatory Council (FAR Council) will include any law enacted after October 13, 1994, that sets forth policies, procedures, requirements, or restrictions for the acquisition of property or services, on the list set forth in paragraph (a) of this section. The FAR Council may make exceptions when it determines in writing that it is in the best interest of the Government that the enactment should apply to contracts or subcontracts not greater than the simplified acquisition threshold.
(c) The provisions of paragraph (b) of this section do not apply to laws that-
(1) Provide for criminal or civil penalties; or
(2) Specifically state that notwithstanding the language of http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section1905&num=0&edition=prelim" target="_blank">41 U.S.C. 1905, the enactment will be applicable to contracts or subcontracts in amounts not greater than the simplified acquisition threshold.
(d) Any individual may petition the Administrator, Office of Federal Procurement Policy (OFPP), to include any applicable provision of law not included on the list set forth in paragraph (a) of this section unless the FAR Council has already determined in writing that the law is applicable. The Administrator, OFPP, will include the law on the list in paragraph (a) of this section unless the FAR Council makes a determination that it is applicable within 60 days of receiving the petition.