Overview
This section prescribes the mandatory inclusion of FAR clause 52.222-40, which requires contractors to notify employees of their rights under the National Labor Relations Act (NLRA), across most federal solicitations and contracts. It defines the specific thresholds for applicability and establishes exemptions based on contract value, geography, and Department of Labor waivers.
Key Rules
- Mandatory Inclusion: The clause at 52.222-40 must be included in all solicitations and contracts, including those for commercial products, commercial services, and Commercially Available Off-the-Shelf (COTS) items.
- Threshold Exemption: Contracts at or below the Simplified Acquisition Threshold (SAT) are exempt.
- Indefinite-Quantity Rule: For IDIQ contracts, the clause is required only if the value of orders in any calendar year is expected to exceed the SAT.
- Geographic Exemption: The requirement does not apply to work performed exclusively outside the United States.
- Secretary Exemptions: Contracts are exempt if the Secretary of Labor grants a specific waiver for the entire acquisition.
- Agency Modifications: Contracting agencies are permitted to modify the standard clause text to reflect specific exemptions granted by the Secretary.
Practical Implications
- Workplace Compliance: Prime contractors and subcontractors (above the SAT) must ensure they physically or electronically post the required employee rights notices in their facilities for domestic performance.
- IDIQ Monitoring: Contracting Officers and contractors must forecast annual task order volumes to determine if the clause is triggered for indefinite-delivery vehicles.