Overview
This section prescribes the mandatory inclusion of FAR clause 52.222-54, Employment Eligibility Verification (E-Verify), in federal solicitations and contracts exceeding $150,000, unless specific exemptions apply. It serves as the regulatory trigger for enforcing E-Verify requirements on federal contractors and subcontractors.
Key Rules
- Threshold: The clause is required for all solicitations and contracts valued above $150,000.
- Location Exemption: Contracts are exempt if the work is performed entirely outside of the United States.
- Duration Exemption: Contracts with a period of performance shorter than 120 days are exempt.
- COTS Exemption: Commercially available off-the-shelf (COTS) items are exempt, including:
- Items with only minor modifications.
- Items that would be COTS except for being shipped as bulk cargo.
- Commercial Services Exemption: Services are exempt if they are part of a COTS purchase, performed by the COTS provider, and are services normally provided for that item.
Practical Implications
- Compliance Burden: Contractors winning service or construction contracts over $150,000 must be prepared to enroll in and use the E-Verify system for all new hires and employees assigned to the contract.
- Market Research Criticality: Contracting Officers must accurately categorize acquisitions; misclassifying a product as "Commercial" rather than "COTS" can inadvertently trigger E-Verify requirements that may deter some commercial vendors from bidding.