22.1002-1
General
Service contracts over $2,500 must include specific labor standards provisions and cannot exceed five years in duration.
Overview
FAR 22.1002-1 establishes the foundational requirements for service contracts exceeding $2,500, mandating the inclusion of specific labor standards provisions. These provisions ensure that contractors provide minimum wages and fringe benefits, maintain safe and sanitary working conditions, notify employees of their minimum compensation, and align compensation with equivalent Federal employee classifications and wage rates. Additionally, the regulation limits the maximum duration of service contracts to five years, as stipulated by 41 U.S.C. 6707(d). The purpose is to protect service employees and ensure fair labor standards in federal service contracts.
Key Rules
- Mandatory Labor Provisions
- Service contracts over $2,500 must include clauses on minimum wages, fringe benefits, safe working conditions, employee notification, and wage parity with Federal employees.
- Contract Duration Limit
- Service contracts may not exceed a five-year period, regardless of options or extensions.
Responsibilities
- Contracting Officers: Must ensure all required labor provisions are included in applicable contracts and that contract duration does not exceed five years.
- Contractors: Must comply with wage, benefit, and working condition requirements, and inform employees of their rights and compensation.
- Agencies: Must oversee compliance and enforce statutory limits and labor standards.
Practical Implications
- This section exists to uphold fair labor standards and protect service employees working on federal contracts.
- Contractors must be diligent in adhering to wage and benefit requirements and contract duration limits to avoid penalties or contract termination.
- Common pitfalls include omitting required clauses or exceeding the five-year contract limit.