Overview
This section outlines specific administrative interpretations by the Secretary of Labor regarding the applicability of the Walsh-Healey Public Contracts Act, focusing on contract value thresholds, modifications, and specific organizational arrangements.
Key Rules
- Threshold Modifications: A contract not previously covered becomes subject to the statute if a modification increases its value to over $20,000; conversely, a contract ceases to be subject to the statute if a mutual modification reduces the value to $20,000 or less.
- Prime Contractors as Agents: If a prime contractor acts as an agent of the Government, they must include the statute's stipulations in subcontracts exceeding $20,000 for supplies used in Government facilities.
- Facility Operations: Employees of contractors operating Government-owned facilities are subject to the same statutory stipulations as those working in privately owned facilities.
- Indefinite-Delivery Vehicles (IDVs): Agreements such as BOAs and BPAs are subject to the statute unless the estimated aggregate value of orders is $15,000 or less for the year.
- Annual Re-evaluations: For IDVs, the Government must perform an annual determination to check if the estimated value exceeds the $15,000 threshold and modify the agreement if necessary.
Practical Implications
- Contracting Officers must monitor contract values throughout the lifecycle, as a simple modification can trigger new compliance and reporting requirements under the statute.
- For indefinite-delivery contracts, agencies must maintain proactive oversight through annual reviews to ensure labor stipulations are correctly applied or removed based on updated ordering estimates.