22.1025
Ineligibility of violators
Contractors and subcontractors listed in SAM for violating Service Contract Labor Standards are ineligible for federal awards without Secretary of Labor approval.
Overview
FAR 22.1025 establishes that individuals or firms found in violation of the Service Contract Labor Standards statute are ineligible for government contracts. Such violators are listed in the System for Award Management (SAM) with an active exclusion record. The regulation prohibits awarding contracts or subcontracts to these entities, or to any organization in which a violator has a substantial interest, unless the Secretary of Labor grants approval. This rule applies to both prime contractors and subcontractors, ensuring that violators are effectively barred from federal contracting opportunities until their exclusion is lifted or a waiver is granted.
Key Rules
- SAM Exclusion Listing
- Violators of the Service Contract Labor Standards statute are listed in SAM with an active exclusion record.
- Prohibition on Awards
- No government contract or subcontract may be awarded to listed violators or entities in which they have a substantial interest, unless approved by the Secretary of Labor.
Responsibilities
- Contracting Officers: Must check SAM for exclusion records and ensure no awards are made to ineligible entities without proper approval.
- Contractors: Must avoid engaging in contracts or subcontracts with listed violators.
- Agencies: Must enforce compliance and seek Secretary of Labor approval if considering award to an ineligible entity.
Practical Implications
- This section exists to enforce labor standards compliance and prevent violators from participating in federal contracting.
- It impacts daily contracting by requiring diligence in vetting all parties for eligibility.
- Common pitfalls include failing to check SAM or overlooking violator interests in related entities.