Overview
FAR 22.603 defines the scope and criteria under which the Walsh-Healey Public Contracts Act requirements apply to federal supply contracts and specific small business subcontracts. It establishes geographic, monetary, and categorical benchmarks that determine whether a contract must adhere to specific statutory labor standards.
Key Rules
- Contract Types: Applies to standard contracts, indefinite-delivery contracts, Basic Ordering Agreements (BOAs), Blanket Purchase Agreements (BPAs), and Section 8(a) subcontracts.
- Subject Matter: Limited to the manufacture or furnishing of supplies.
- Geographic Scope: Performance must occur within the United States, Puerto Rico, or the U.S. Virgin Islands.
- Monetary Threshold: The contract value must exceed, or have the potential to exceed, $20,000.
- Exemption Check: The requirements apply only if the contract is not otherwise exempted under the provisions of FAR 22.604.
Practical Implications
- Clause Inclusion: Contracting officers must incorporate Walsh-Healey labor standards into supply solicitations and awards if there is any expectation that the total orders will surpass the $20,000 threshold.
- Compliance Monitoring: Manufacturers and suppliers operating in the specified U.S. territories must maintain records and adhere to federal minimum wage, maximum hours, and safety standards for all covered employees working on the contract.