13.006 Inapplicable provisions and clauses
Source: FAR 13.006 on acquisition.gov
For contracts at or below the simplified acquisition threshold, several major FAR clauses are not required, streamlining compliance for small purchases.
Overview
FAR 13.006 specifies that certain statutory provisions and contract clauses are not applicable to contracts and subcontracts at or below the simplified acquisition threshold (SAT), as authorized by Public Law 103-355. This section lists specific FAR clauses that do not need to be included in such contracts, streamlining the acquisition process for smaller purchases. However, it notes that some statutes still apply, and there are exceptions, such as when using funds from the American Recovery and Reinvestment Act of 2009 for certain audit requirements.
Key Rules
- Inapplicability of Certain Clauses
- The listed FAR clauses (e.g., Covenant Against Contingent Fees, Anti-Kickback Procedures, Drug-Free Workplace) are not required for contracts at or below the SAT.
- Exceptions for Specific Funding
- The audit clause (52.215-2) may still apply when using funds from the American Recovery and Reinvestment Act of 2009.
- Statutory Requirements Still Apply
- While these clauses are inapplicable, underlying statutes may still impose requirements.
Responsibilities
- Contracting Officers: Must ensure these clauses are not included in contracts at or below the SAT, except where exceptions apply.
- Contractors: Should be aware that these requirements do not apply to their contracts at or below the SAT, unless otherwise specified.
- Agencies: Must oversee compliance with the streamlined requirements and ensure exceptions are properly handled.
Practical Implications
- This section reduces administrative burden for small-dollar contracts by removing certain compliance requirements.
- Contractors benefit from fewer reporting and procedural obligations for contracts at or below the SAT.
- Common pitfalls include mistakenly including inapplicable clauses or overlooking exceptions related to specific funding sources.
While certain statutes still apply, pursuant to Public Law103-355, the following provisions and clauses are inapplicable to contracts and subcontracts at or below the simplified acquisition threshold:
(a) 52.203-5, Covenant Against Contingent Fees.
(b) 52.203-6, Restrictions on Subcontractor Sales to the Government.
(c) 52.203-7, Anti-Kickback Procedures.
(d) 52.215-2, Audits and Records-Negotiation, except as used with its Alternate I, when using funds appropriated or otherwise made available by the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5).
(e) 52.222-4, Contract Work Hours and Safety Standards-Overtime Compensation.
(f) 52.226-7, Drug-Free Workplace, except for individuals.
(g) 52.223-9, Estimate of Percentage of Recovered Material Content for EPA-Designated Items.