52.222-20 Contracts for Materials, Supplies, Articles, and Equipment
Source: FAR 52.222-20 on acquisition.gov
Contracts for manufacturing or furnishing materials, supplies, articles, or equipment above the specified threshold must comply with federal labor standards, including minimum wage requirements set by the Department of Labor.
Overview
FAR 52.222-20 requires that contracts for the manufacture or furnishing of materials, supplies, articles, or equipment exceeding a specific dollar threshold (as defined in FAR 22.602) include certain labor standards. These standards are mandated by 41 U.S.C. chapter 65 (the Walsh-Healey Public Contracts Act) and regulations issued by the Secretary of Labor. The clause ensures that all employees working on such contracts are paid at least the minimum wage set by the Department of Labor, with specific exceptions for learners, apprentices, and workers with disabilities as allowed under federal law. The clause also incorporates by reference all relevant Department of Labor rulings and interpretations, both current and future, making compliance a continuing obligation for contractors.
Key Rules
- Incorporation of Labor Standards
- All stipulations from 41 U.S.C. chapter 65 and related Department of Labor regulations are automatically part of the contract.
- Minimum Wage Requirement
- Employees must be paid at least the minimum wage specified by the Secretary of Labor, with limited exceptions for certain categories of workers.
- Applicability of Future Rulings
- Contractors must comply with any current or future rulings and interpretations from the Secretary of Labor regarding these labor standards.
Responsibilities
- Contracting Officers: Must include this clause in applicable solicitations and contracts and ensure contractor compliance.
- Contractors: Must pay employees at least the prescribed minimum wage and adhere to all incorporated labor standards and future rulings.
- Agencies: Must oversee compliance and address any violations or disputes related to labor standards.
Practical Implications
- This clause exists to protect workers on federal supply contracts by ensuring fair wages and labor standards.
- Contractors must stay updated on Department of Labor wage determinations and rulings, as non-compliance can result in penalties or contract termination.
- Common pitfalls include failing to pay the correct minimum wage or misunderstanding which employees are covered by the exceptions.
As prescribed in 22.610 , insert the following clause in solicitations and contracts:
Contracts for Materials, Supplies, Articles, and Equipment (Jun 2020)
If this contract is for the manufacture or furnishing of materials, supplies, articles or equipment in an amount that exceeds or may exceed the threshold specified in Federal Acquisition Regulation 22.602 on the date of award of this contract, and is subject to http://uscode.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title41-chapter65&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU0MC1jaGFwdGVyMzctZnJvbnQ%3D%7C%7C%7C0%7Cfalse%7Cprelim&edition=prelim" target="_blank">41 U.S.C. chapter 65, the following terms and conditions apply:
(a) All stipulations required by http://uscode.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title41-chapter65&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU0MC1jaGFwdGVyMzctZnJvbnQ%3D%7C%7C%7C0%7Cfalse%7Cprelim&edition=prelim" target="_blank">41 U.S.C. chapter 65 and regulations issued by the Secretary of Labor (41 CFR Chapter 50) are incorporated by reference. These stipulations are subject to all applicable rulings and interpretations of the Secretary of Labor that are now, or may hereafter, be in effect.
(b) All employees whose work relates to this contract shall be paid not less than the minimum wage prescribed by regulations issued by the Secretary of Labor (41 CFR 50-202.2). Learners, student learners, apprentices, and workers with disabilities may be employed at less than the prescribed minimum wage (see 41 CFR 50-202.3) to the same extent that such employment is permitted under section 14 of the Fair Labor Standards Act (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section6508&num=0&edition=prelim" target="_blank">41 U.S.C. 6508).
(End of clause)