22.1801 Definitions
Source: FAR 22.1801 on acquisition.gov
For E-Verify compliance under FAR Subpart 22.18, contractors must correctly identify covered employees, covered subcontracts, and whether supplied items truly qualify as COTS, because those definitions drive when verification obligations apply.
Overview
- FAR 22.1801 provides the core definitions used in Subpart 22.18 – Employment Eligibility Verification. These definitions determine when E-Verify-related contract requirements apply and which workers, supplies, and lower-tier agreements are covered.
- For contractors, the section is important because coverage under the employment eligibility verification clause depends on whether workers are employees assigned to the contract, whether an item qualifies as a COTS item, and whether work is performed in the United States.
Key Rules
- COTS item
- A COTS item must be a commercial product, sold in substantial quantities in the commercial marketplace, and offered to the Government without modification in the same form. Bulk cargo is expressly excluded.
- Employee assigned to the contract
- This means an employee hired after November 6, 1986 (or after November 27, 2009, in the Commonwealth of the Northern Mariana Islands) who directly performs work in the United States under a contract containing the clause at 22.1803. Employees performing only indirect or overhead support, without substantial contract duties, are excluded.
- Subcontract / Subcontractor / United States
- The section broadly defines subcontracting relationships and clarifies the U.S. geographic scope, including territories such as Puerto Rico, Guam, CNMI, and the U.S. Virgin Islands.
Responsibilities
- Contracting Officers: apply these definitions when determining clause coverage and subcontract flowdown.
- Contractors: identify covered employees, distinguish direct from indirect support work, and assess whether supplied items are COTS.
- Agencies: ensure consistent interpretation of E-Verify applicability across prime contracts and subcontracts.
Practical Implications
- This section exists to prevent confusion about who must be verified and when Subpart 22.18 applies.
- It affects hiring, subcontract administration, and supply classification decisions.
- Common pitfalls include misclassifying support staff as covered employees, overlooking territorial coverage, and assuming all commercial items are COTS.
As used in this subpart-
Commercially available off-the-shelf (COTS) item-
(1) Means any item of supply that is-
(i) A commercial product (as defined in paragraph (1) of the definition of “commercial product” at 2.101);
(ii) Sold in substantial quantities in the commercial marketplace; and
(iii) Offered to the Government, without modification, in the same form in which it is sold in the commercial marketplace; and
(2) Does not include bulk cargo, as defined in http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section40102(4)&num=0&edition=prelim" target="_blank">46 U.S.C. 40102(4), such as agricultural products and petroleum products. Per 46 CFR 525.1 (c)(2), "bulk cargo" means cargo that is loaded and carried in bulk onboard ship without mark or count, in a loose unpackaged form, having homogenous characteristics. Bulk cargo loaded into intermodal equipment, except LASH or Seabee barges, is subject to mark and count and, therefore, ceases to be bulk cargo.
Employee assigned to the contract means an employee who was hired after November 6, 1986 (after November 27, 2009, in the Commonwealth of the Northern Mariana Islands), who is directly performing work, in the United States, under a contract that is required to include the clause prescribed at 22.1803. An employee is not considered to be directly performing work under a contract if the employee-
(1) Normally performs support work, such as indirect or overhead functions; and
(2) Does not perform any substantial duties applicable to the contract.
Subcontract means any contract, as defined in 2.101, entered into by a subcontractor to furnish supplies or services for performance of a prime contract or a subcontract. It includes but is not limited to purchase orders, and changes and modifications to purchase orders.
Subcontractor means any supplier, distributor, vendor, or firm that furnishes supplies or services to or for a prime contractor or another subcontractor.
United States, as defined in http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title8-section1101(a)(38)&num=0&edition=prelim" target="_blank">8 U.S.C. 1101(a)(38), means the 50 States, the District of Columbia, Puerto Rico, Guam, the Commonwealth of Northern Mariana Islands, and the U.S. Virgin Islands.