Overview
FAR 22.1603 outlines the specific conditions and thresholds under which federal contracts and subcontracts are exempt from the requirement to notify employees of their rights under federal labor laws. It identifies automatic exclusions based on contract value and geography, as well as the process for seeking discretionary exemptions from the Secretary of Labor.
Key Rules
- Monetary Thresholds: The requirements do not apply to prime contracts below the simplified acquisition threshold (SAT) or to subcontracts valued at $10,000 or less.
- Geographic Limitation: Contracts and subcontracts are exempt if the work is performed exclusively outside of the United States.
- Secretary’s Discretionary Exemptions: The Secretary of Labor may exempt specific contracts, agencies, or classes of contracts if the requirements hinder government efficiency or if special circumstances involve the national interest.
- Regulatory Procedure: Requests for discretionary exemptions must be submitted following the specific Department of Labor regulations found at 29 CFR 471.3.
Practical Implications
- Compliance Monitoring: Contractors must track the dollar value and performance location of subcontracts to determine whether the flow-down clause (FAR 52.222-40) is legally required.
- Administrative Relief: These exceptions reduce the regulatory burden for small-scale vendors and international operations, ensuring that labor notification requirements are focused on significant domestic federal expenditures.