Overview
FAR Subpart 22.6 implements 41 U.S.C. chapter 65 (formerly known as the Walsh-Healey Public Contracts Act), which establishes labor standards for federal contracts involving the manufacture or furnishing of supplies. It applies to contracts exceeding $20,000 and mandates specific stipulations regarding minimum wages, maximum hours, child labor, convict labor, and workplace safety.
Key Rules
- Threshold: The subpart applies to contracts, indefinite-delivery contracts, Basic Ordering Agreements (BOAs), and Blanket Purchase Agreements (BPAs) exceeding $20,000.
- Core Stipulations: Contractors must comply with federal requirements for minimum wages, maximum hours (overtime), prohibitions on child and convict labor, and maintaining safe/sanitary working conditions.
- Geographic Scope: Requirements apply only to work performed within the United States, Puerto Rico, or the U.S. Virgin Islands.
- Indefinite-Delivery Vehicles: IDIQs and BPAs are subject to these rules unless it is determined in advance that the total orders for the year will not exceed $15,000.
- Modification Thresholds:
- If a contract is modified to increase from $20,000 or less to more than $20,000, it becomes subject to the statute.
- If a contract is modified downward to $20,000 or less, the statute no longer applies to work performed after the modification.
- Statutory Exemptions: Includes "open market" purchases (such as commercial products/services under FAR Part 12), perishables, and certain agricultural products.
- Regulatory Exemptions: Includes public utilities, foreign-manufactured supplies, and newspapers/periodicals purchased from sales agents.
Responsibilities
- Contracting Officers (COs):
- Must insert the clause at 52.222-20 in solicitations and contracts that meet the criteria.
- Provide the contractor with DOL publication WH-1313 (Notice to Employees Working on Government Contracts).
- Notify the Department of Labor (DOL) Wage and Hour Division in the event of a breach or violation.
- Make annual determinations for IDIQs/BPAs regarding the $15,000 aggregate threshold.
- Agency Heads: Responsible for requesting exemptions from the Secretary of Labor if the conduct of Government business would be "seriously impaired" by the application of the statute.
- Secretary of Labor: Authorized to issue rulings, interpretations, and grant exemptions for specific contracts or classes of contracts.
- Contractors: Must adhere to the labor standards, display required employee notices, and flow down stipulations if acting as a government agent.
Practical Implications
- Commercial Item Strategy: Because "open market" purchases and FAR Part 12 acquisitions are generally exempt, the administrative burden of Subpart 22.6 is significantly reduced for contractors selling standard commercial goods.
- Threshold Monitoring: Program Managers and COs must be vigilant when modifying small-dollar supply contracts; crossing the $20,000 threshold triggers compliance requirements that the contractor may not have factored into their initial pricing or operations.
- Post-Award Compliance: Once a contract is awarded, the CO’s role shifts to an administrative/oversight capacity, ensuring the WH-1313 poster is provided and acting as the intermediary between the agency and the Department of Labor if labor disputes or safety violations arise.
- Global Supply Chain: Since goods manufactured outside the U.S. and its territories are exempt, this subpart creates a compliance distinction between domestic manufacturing and international sourcing.