22.103-5 Contract clauses
Source: FAR 22.103-5 on acquisition.gov
Contracting officers must include specific labor-related clauses in designated contracts to ensure proper handling of labor disputes and overtime premium payments.
Overview
FAR 22.103-5 outlines the mandatory inclusion of specific labor-related contract clauses in certain government solicitations and contracts. It directs contracting officers to insert the clause at 52.222-1, Notice to the Government of Labor Disputes, for contracts involving designated programs or requirements under 22.101-1(e). Additionally, it requires the inclusion of the clause at 52.222-2, Payment for Overtime Premiums, in cost-reimbursement contracts expected to exceed the simplified acquisition threshold, with exceptions for contracts involving vessel operations or certain cost-plus-incentive-fee contracts. These clauses ensure that labor disputes and overtime premium payments are properly managed and communicated in applicable contracts.
Key Rules
- Notice to the Government of Labor Disputes (52.222-1)
- Must be included in contracts involving designated programs or requirements under 22.101-1(e).
- Payment for Overtime Premiums (52.222-2)
- Required in cost-reimbursement contracts over the simplified acquisition threshold, except for vessel operations or specific cost-plus-incentive-fee contracts.
Responsibilities
- Contracting Officers: Ensure the correct clauses are included in solicitations and contracts as specified.
- Contractors: Comply with the requirements of the inserted clauses regarding labor disputes and overtime premium payments.
- Agencies: Oversee compliance with clause inclusion and monitor contract administration for labor-related issues.
Practical Implications
- This section ensures that labor disputes and overtime premium payments are addressed contractually, reducing risk and ensuring compliance with labor standards.
- Contractors must be aware of these clauses and their obligations, particularly in cost-reimbursement contracts.
- Failure to include or comply with these clauses can lead to contract disputes or noncompliance findings.
(a) The contracting officer shall insert the clause at 52.222-1, Notice to the Government of Labor Disputes, in solicitations and contracts that involve programs or requirements that have been designated under 22.101-1(e).
(b) The contracting officer shall include the clause at 52.222-2, Payment for Overtime Premiums, in solicitations and contracts when a cost-reimbursement contract is contemplated and the contract amount is expected to exceed the simplified acquisition threshold; unless-
(1) A cost-reimbursement contract for operation of vessels is contemplated; or
(2) A cost-plus- incentive-fee contract that will provide a swing from the target fee of at least plus or minus 3 percent and a contractor’s share of at least 10 percent is contemplated.