Impacts Direct-Federal Contractors Only
Earlier this year, the Federal Acquisition Regulation (FAR) Council issued a final rule—as a result of a presidential executive order—to help prevent human trafficking on direct federal government contracts. The rule applies to direct federal prime contracts or subcontracts—i.e., a contract directly with any federal agency or a subcontract through a prime contractor working for a federal agency—with 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—i.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—at all tiers—are 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. AGC of America will host a free webinar for AGC 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. Return to Top