Overview
FAR 22.305 prescribes the mandatory inclusion of the clause at 52.222-4, Contract Work Hours and Safety Standards—Overtime Compensation, in solicitations and contracts that involve the employment of laborers or mechanics. It also outlines seven specific categories where the clause is prohibited, primarily based on contract value, item type, or geographic location.
Key Rules
- Mandatory Inclusion: Clause 52.222-4 must be inserted in solicitations and contracts, including Basic Ordering Agreements (BOAs), if they require or involve laborers or mechanics.
- Monetary Threshold: The clause is not required for any contract valued at or below $200,000.
- Commercial Exemption: Contracts for commercial products and commercial services are exempt from this requirement.
- Geographic Limitations: The clause is only applicable to work performed within the United States, Puerto Rico, American Samoa, Guam, the U.S. Virgin Islands, Johnston Island, Wake Island, and the outer Continental Shelf.
- Scope Exclusions: The clause is excluded for transportation/intelligence transmission, work covered by 41 U.S.C. chapter 65 (Walsh-Healey Public Contracts Act), and supply contracts where labor is only incidental.
Practical Implications
- Contracting Officers must perform a "substantiality" test for supply contracts to determine if the labor involved is merely incidental or significant enough to trigger the clause.
- Prime contractors and subcontractors on large-scale construction or non-commercial service projects exceeding $200,000 must strictly adhere to the overtime pay requirements mandated by the inclusion of this clause.