Overview
This section establishes the United States Government’s zero-tolerance policy regarding trafficking in persons, forced labor, and unethical recruitment practices for all federal contracts. It mandates that solicitations and contracts include specific prohibitions and requires high-value international contracts to implement formal compliance plans and certifications.
Key Rules
- Prohibited Activities: Contractors, subcontractors, and their agents are strictly forbidden from engaging in severe forms of trafficking, procuring commercial sex acts, using forced labor, confiscating employee identity documents, or charging recruitment fees.
- Recruitment and Housing Standards: Recruitment must be transparent and comply with local labor laws; contractors must provide written employment documents in a language the employee understands and ensure housing meets host-country safety standards.
- Return Transportation: For work performed outside the U.S. or under specific temporary worker programs, contractors must generally pay for return transportation for employees who are not nationals of the country where the work occurs.
- Compliance Plan Threshold: For contracts exceeding $700,000 involving services performed or non-COTS (Commercially Available Off-the-Shelf) items acquired outside the U.S., contractors must maintain a formal compliance plan and provide annual certifications.
- Mandatory Disclosure: Contractors must immediately notify the Contracting Officer and the agency Inspector General of any credible information regarding violations and must cooperate fully with government audits and investigations.
- Flow-down Requirements: These policy requirements apply to subcontractors at all tiers, and prime contractors are responsible for obtaining certifications from their subcontractors when the $700,000 international threshold is met.
Practical Implications
- Contractors operating internationally must implement rigorous due diligence and monitoring systems to oversee both their internal operations and their global supply chains to prevent human rights abuses.
- Failure to comply with these anti-trafficking requirements exposes a company to severe remedies, including contract termination, loss of award fees, and potential suspension or debarment from government contracting.