Impacts Direct-Federal Contractors Only
Earlier this year, the Federal Acquisition Regulation (FAR) Council issued a 鈥攁s a result of a 鈥攖o help prevent human trafficking on direct federal government contracts. The rule applies to direct federal prime contracts or subcontracts鈥攊.e., a contract directly with any federal agency or a subcontract through a prime contractor working for a federal agency鈥攚ith an estimated value over $500,000 for supplies acquired outside the U.S., or services to be performed outside the U.S. It requires contractors on applicable contracts to certify both prior to award and annually post-award their human trafficking compliance efforts. For example, a subcontract under a USACE prime contract for $500,001 of building materials from China will require due diligence by the prime contractor to ensure the steel supplier does not engage in human trafficking. The rule does not apply to federally assisted contracts or grants鈥攊.e., state department of transportation projects; it only applies to contracts governed under the FAR.
The rule will require direct-federal contractors to certify and take preventative actions to ensure that their subcontractors鈥攁t all tiers鈥攁re not engaged in human trafficking. Contractors must specifically certify that they have: (1) implemented an anti-human trafficking compliance plan and procedures to prevent human trafficking violations; and (2) performed due diligence on its agents and subcontractors and taken remedial actions, if necessary.
The rule took effect March 2 and applies to contracts awarded on or after that date as well as individual orders on indefinite delivery, indefinite quantity contracts awarded on or after March 2. 51风流 of America will host a free webinar for 51风流 members in several weeks to address this rule as well as a host of others coming down the pipe and impacting direct-federal contractors. Stay tuned for further details.
For more information, please contact Jimmy Christianson at (703) 837-5325 orchristiansonj@agc.org.