Contract clause
Contracting officers must include the 52.222-40 clause in most federal contracts to notify employees of their rights under the National Labor Relations Act, except for specific exemptions.
Overview
FAR 22.1605 requires contracting officers to include the clause at 52.222-40, Notification of Employee Rights under the National Labor Relations Act, in nearly all federal solicitations and contracts. This includes contracts for commercial products, commercial services, and commercially available off-the-shelf (COTS) items. There are specific exceptions: contracts under the simplified acquisition threshold, contracts for work performed exclusively outside the United States, and contracts fully exempted by the Secretary. For indefinite-quantity contracts, the clause is required only if annual order values are expected to exceed the simplified acquisition threshold. Agencies may modify the clause to reflect any Secretary-granted exemptions.
Key Rules
- Clause Inclusion Requirement
- The 52.222-40 clause must be included in most solicitations and contracts, including commercial and COTS acquisitions.
- Exceptions to Clause Inclusion
- The clause is not required for contracts under the simplified acquisition threshold, for work performed exclusively outside the U.S., or for contracts fully exempted by the Secretary.
- Indefinite-Quantity Contracts
- For these contracts, include the clause only if annual order values are expected to exceed the simplified acquisition threshold.
- Clause Modification
- Agencies may modify the clause to reflect Secretary-granted exemptions.
Responsibilities
- Contracting Officers: Must ensure the proper inclusion or modification of the 52.222-40 clause in applicable contracts and solicitations.
- Contractors: Must comply with the requirements of the 52.222-40 clause when it is included in their contracts.
- Agencies: May need to coordinate with the Secretary regarding exemptions and ensure clause modifications reflect such exemptions.
Practical Implications
- This section ensures employees are informed of their rights under the National Labor Relations Act.
- Contractors must be aware of when the clause applies and ensure compliance if included.
- Common pitfalls include failing to include the clause in eligible contracts or misunderstanding the exceptions, especially for indefinite-quantity contracts or overseas work.