Overview
This section mandates that federal contracts exceeding $20,000 for the manufacturing or furnishing of supplies must incorporate specific labor protections required by 41 U.S.C. chapter 65 (formerly the Walsh-Healey Public Contracts Act).
Key Rules
- Threshold: The requirements apply to all covered contracts in an amount exceeding $20,000.
- Scope of Goods: Applies specifically to the manufacture or furnishing of materials, supplies, articles, and equipment.
- Applicable Entities: Covers contracts entered into by executive departments, independent establishments, federal agencies, government-owned corporations, and the District of Columbia.
- Mandatory Stipulations: Contracts must include or incorporate by reference standards regarding:
- Minimum wages
- Maximum hours
- Restrictions on child labor
- Prohibitions on convict labor
- Safe and sanitary working conditions
- Exemptions: These requirements apply unless the contract meets the specific exemptions listed in FAR 22.604.
Practical Implications
- Contractors must ensure their manufacturing facilities and labor practices meet these statutory standards to remain eligible for federal supply contracts above the $20,000 threshold.
- Contracting officers are responsible for ensuring these labor stipulations are legally incorporated into solicitations and resulting awards to maintain statutory compliance.