Statutory exemptions
FAR 22.604-1 exempts certain contracts—such as those for perishables, specific agricultural products, and urgent open market purchases—from statutory labor requirements, streamlining procurement in these cases.
Overview
FAR 22.604-1 outlines specific statutory exemptions from certain labor statutes for contracts involving the acquisition of particular supplies. The section details categories of goods and circumstances under which contracts are not subject to the statute, including open market purchases authorized by statute, urgent public exigency situations, and specific agricultural and perishable products. This allows contracting officers and contractors to identify when certain labor requirements do not apply, streamlining procurement for these exempted items.
Key Rules
- Open Market Purchases and Public Exigency
- Contracts are exempt if the contracting officer is expressly authorized by statute to purchase in the open market or if the purchase is made under urgent circumstances requiring immediate delivery (see FAR 6.302-2).
- Perishable Goods
- Contracts for perishables such as dairy, livestock, and nursery products are exempt.
- First Sale Agricultural Products
- Contracts for agricultural or farm products processed for first sale by the original producers are exempt.
- Secretary of Agriculture Purchases
- Contracts for agricultural commodities or their products purchased by the Secretary of Agriculture are exempt.
Responsibilities
- Contracting Officers: Must determine and document when a contract qualifies for exemption under these categories.
- Contractors: Should verify if their products or services fall under these exemptions to understand applicable labor requirements.
- Agencies: Ensure proper application and oversight of exemptions to maintain compliance.
Practical Implications
- This section exists to clarify when certain labor statutes do not apply, reducing administrative burden for specific procurements.
- It impacts daily contracting by allowing faster or less encumbered acquisitions in urgent or specialized cases.
- Common pitfalls include misclassifying products or failing to document the basis for exemption, which can lead to compliance issues.