Applicability
FAR 22.603 defines when labor standards requirements apply to supply contracts, focusing on location, value, and exemption status.
Overview
FAR 22.603 outlines when the requirements of FAR 22.602 apply to government contracts and subcontracts. Specifically, it clarifies that these requirements cover contracts (including indefinite-delivery contracts, basic ordering agreements, and blanket purchase agreements) and subcontracts under Section 8(a) of the Small Business Act for the manufacture or furnishing of supplies. The regulation applies if the work is performed in the United States, Puerto Rico, or the U.S. Virgin Islands, the contract value exceeds or may exceed $15,000, and the contract is not exempt under FAR 22.604. This section helps contracting professionals determine whether the labor standards and requirements in 22.602 must be followed for a given procurement action.
Key Rules
- Geographic Applicability
- Applies to contracts performed in the United States, Puerto Rico, or the U.S. Virgin Islands.
- Contract Value Threshold
- Applies to contracts exceeding or potentially exceeding $15,000.
- Exemptions
- Does not apply to contracts exempted under FAR 22.604.
- Contract Types Covered
- Includes indefinite-delivery contracts, basic ordering agreements, blanket purchase agreements, and 8(a) subcontracts.
Responsibilities
- Contracting Officers: Must determine if a contract meets these applicability criteria before applying FAR 22.602 requirements.
- Contractors: Should be aware if their contract falls under these rules and comply with labor standards if applicable.
- Agencies: Ensure oversight and proper application of labor standards to qualifying contracts.
Practical Implications
- This section exists to clarify which contracts are subject to labor standards for materials, supplies, articles, and equipment.
- It impacts daily contracting by requiring a threshold and location check before applying labor standards.
- Common pitfalls include overlooking the value threshold, missing exemptions, or misapplying the rules to contracts performed outside the specified locations.