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Overview

FAR 26.504 outlines the mandatory requirements for contractors to maintain a drug-free workplace as a condition of being deemed a "responsible source" for government contract awards. The policy establishes specific administrative, educational, and reporting obligations for business entities and conduct prohibitions for individual contractors.

Key Rules

  • Threshold for Entities: Non-individual offerors must implement a drug-free workplace program for any contract exceeding the simplified acquisition threshold (SAT).
  • Mandatory Program Components: Entities must publish a formal prohibitory statement, distribute it to all employees performing the contract, and establish an ongoing awareness program covering the dangers of drug abuse and available assistance.
  • Employee Notification Requirements: Employees must agree to abide by the policy and are required to notify their employer in writing of any criminal drug statute conviction for a workplace violation within five days.
  • Contracting Officer (CO) Notification: The contractor must notify the CO in writing within 10 days of receiving notice of an employee’s workplace-related drug conviction.
  • Remedial Actions: Within 30 days of a conviction notice, the contractor must either take personnel action (up to termination) or require the employee to participate in an approved drug rehabilitation program.
  • Individual Contractors: Individuals are prohibited from engaging in any illegal drug-related activity during the performance of the contract, regardless of the contract's dollar value.
  • Implementation Timelines: Compliance is generally required within 30 days of contract award for long-term contracts, or prior to completion for contracts lasting fewer than 30 days.

Practical Implications

  • Contractors must maintain active administrative oversight and documentation of their drug-free programs to remain eligible for federal awards and avoid being deemed "non-responsible."
  • Failure to report employee convictions to the government or take the required personnel actions within the specified timeframes can lead to contract default or suspension/debarment proceedings.

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