Overview
FAR 22.1704 establishes the framework for identifying, investigating, and penalizing violations of the government's anti-trafficking policies. It mandates specific reporting procedures for Contracting Officers and outlines the administrative process for determining contractor liability and applying remedies.
Key Rules
- Definition of Violations: Violations include engaging in severe forms of trafficking, procuring commercial sex acts, using forced labor, or failing to comply with the requirements of FAR clause 52.222-50.
- Liability Scope: Contractors are held responsible for the actions of their employees, subcontractors, subcontractor employees, and agents during the period of performance.
- Mandatory Reporting: Upon receiving "credible information" of a violation, the Contracting Officer (CO) must notify the agency Inspector General (IG) and the Suspending and Debarring Official (SDO).
- Administrative Due Process: Before a final determination is made, an authorized official must conduct an administrative proceeding, giving the contractor an opportunity to respond to the IG's findings.
- Mandatory Remedy: Any substantiated violation must be recorded in the Federal Awardee Performance and Integrity Information System (FAPIIS).
- Mitigating and Aggravating Factors: COs must consider whether the contractor had an active compliance plan and provided reparations (mitigating) or failed to abate violations when directed (aggravating).
Practical Implications
- Strict Oversight: The "credible information" trigger means contractors may face formal IG investigations based on tips or preliminary evidence before a violation is fully proven.
- Risk Management: Because contractors are liable for the actions of subcontractors and agents, robust supply chain auditing and the implementation of the compliance plans mentioned in the mitigation factors are essential for legal protection and business continuity.