Statutory requirements
All federal supply contracts over $20,000 must include statutory labor standards unless specifically exempted, ensuring worker protections and fair practices.
Overview
FAR 22.602 outlines the statutory requirements for contracts exceeding $20,000 that are subject to 41 U.S.C. chapter 65 (the Walsh-Healey Public Contracts Act). This section mandates that such contracts, when entered into by federal agencies or certain government-owned corporations, must include or reference specific labor stipulations. These stipulations cover minimum wages, maximum working hours, child labor restrictions, the use of convict labor, and requirements for safe and sanitary working conditions. The only exceptions are those listed in FAR 22.604. The regulation ensures that contractors supplying materials, supplies, articles, or equipment to the government adhere to key labor standards designed to protect workers and maintain fair competition.
Key Rules
- Applicability Threshold
- Contracts for supplies exceeding $20,000 are subject to these requirements, unless exempted by FAR 22.604.
- Mandatory Labor Stipulations
- Contracts must include or incorporate by reference statutory requirements on minimum wages, maximum hours, child labor, convict labor, and workplace safety and sanitation.
Responsibilities
- Contracting Officers: Must ensure all applicable contracts include the required labor stipulations.
- Contractors: Must comply with all labor standards specified in the contract.
- Agencies: Must oversee compliance and ensure exceptions are only applied as allowed by FAR 22.604.
Practical Implications
- This section exists to enforce federal labor standards in supply contracts, protecting workers and ensuring ethical practices.
- Contractors must be diligent in understanding and adhering to these requirements to avoid penalties or contract termination.
- Common pitfalls include failing to include required clauses or misunderstanding the applicability threshold.