22.406-11
Contract terminations
When a contract is terminated for labor standards violations, the contracting agency must promptly report detailed information to the Wage and Hour Division.
Overview
FAR 22.406-11 outlines the reporting requirements for contracting agencies when a contract or subcontract is terminated due to violations of labor standards clauses. The regulation mandates that the contracting agency must submit a detailed report to the Administrator of the Wage and Hour Division. This report must include specific information about the terminated contract, the contractor or subcontractor involved, any replacement contractor, the replacement contract details, and a description of the work. The purpose is to ensure proper documentation and oversight when labor standards violations result in contract termination.
Key Rules
- Reporting Obligation
- Contracting agencies must report all terminations for labor standards violations to the Wage and Hour Division.
- Required Report Contents
- The report must include the terminated contract number, contractor/subcontractor details, replacement contractor information (if applicable), replacement contract details, and a description of the work.
Responsibilities
- Contracting Officers: Must ensure timely and complete submission of the required report to the Wage and Hour Division.
- Contractors: Should be aware that violations of labor standards can lead to termination and reporting to federal authorities.
- Agencies: Must maintain oversight and proper documentation of terminations related to labor standards violations.
Practical Implications
- This section exists to enforce accountability and transparency when contracts are terminated for labor standards violations.
- It impacts daily contracting by requiring prompt and thorough reporting, which can affect future contracting opportunities for terminated parties.
- Common pitfalls include incomplete reports or failure to notify the Wage and Hour Division, which can result in compliance issues for the agency.