22.604-2 Regulatory exemptions
Source: FAR 22.604-2 on acquisition.gov
Certain contracts are categorically exempt from labor statute requirements, and agencies can request further exemptions with proper justification.
Overview
FAR 22.604-2 outlines specific regulatory exemptions from the statute governing labor standards for government contracts. It details categories of contracts that are fully exempt and describes the process for requesting additional exemptions from the Secretary of Labor. The section is crucial for contracting professionals to determine when statutory labor requirements do not apply and how to seek further exemptions if necessary.
Key Rules
- Fully Exempt Contracts
- Contracts for public utility services, supplies manufactured outside the U.S., purchases against a defaulting contractor (if the original contract lacked statutory stipulations), and certain periodical subscriptions are fully exempt from the statute.
- Agency-Requested Exemptions
- Agency heads may request exemptions for specific contracts or classes of contracts if government business would be seriously impaired without the exemption. Requests must include a justification and be sent to the appropriate Department of Labor office depending on the nature of the exemption (safety/health or other stipulations).
Responsibilities
- Contracting Officers: Must identify and apply statutory exemptions, and coordinate exemption requests with agency heads as needed.
- Contractors: Should be aware of exemption categories and ensure compliance with applicable labor standards unless exempted.
- Agencies: Must provide justification and follow proper channels when seeking exemptions from the Secretary of Labor.
Practical Implications
- This section helps avoid unnecessary application of labor standards to contracts where Congress or the Department of Labor has determined they are not needed. It streamlines procurement for exempted categories and provides a formal process for seeking additional exemptions, reducing administrative burden and ensuring compliance.
(a) Contracts for the following acquisitions are fully exempt from the statute (see 41 CFR50-201.603):
(1) Public utility services.
(2) Supplies manufactured outside the United States, Puerto Rico, and the U.S. Virgin Islands.
(3) Purchases against the account of a defaulting contractor where the stipulations of the statute were not included in the defaulted contract.
(4) Newspapers, magazines, or periodicals, contracted for with sales agents or publisher representatives, which are to be delivered by the publishers thereof.
(b)
(1) Upon the request of the agency head, the Secretary of Labor may exempt specific contracts or classes of contracts from the inclusion or application of one or more of the Act’s stipulations; provided, that the request includes a finding by the agency head stating the reasons why the conduct of Government business will be seriously impaired unless the exemption is granted.
(2) Those requests for exemption that relate solely to safety and health standards shall be transmitted to the-
Assistant Secretary for Occupational Safety and Health U.S. Department of Labor Washington, DC 202 l0.
All other requests shall be transmitted to the-
Administrator of the Wage and Hour Division U.S. Department of Labor Washington, DC 202 l0.