The Federal Acquisition Regulation (FAR) Council has published the a final rule implementing Executive Order 13627 and title XVII of the National Defense Authorization Act of 2013, requiring contractors on federal contracts to certify, both prior to award and annually, their human trafficking compliance and monitoring. The Final Rule prohibits contractors from:
- engaging in severe forms of human trafficking during the period of performance of the contract,
- procuring commercial sex acts during the period of performance of the contract,
- using forced labor in the performance of the contract,
- destroying, concealing, confiscating or otherwise denying employees’ access to identity or immigration documents,
- engaging in fraudulent or misleading recruitment practices,
- employing recruiters that violate the labor laws of the country where the recruitment takes place,
- charging recruiting fees,
- failing to provide return transportation to an employee who is not a national of the country where the work is to take place, subject to limited exceptions,
- providing housing, if required, that fails to meet host country safety or housing laws, and
- failing to provide a written work document, if required.
The Final Rule is broadly applicable to all Federal contractors and subcontractors, regardless of contract type or dollar amount, including contractors providing commercial items, commercially-available off-the-shelf items, or goods on General Service Administration (GSA) Federal Supply Schedules (FSS). In addition, certain contractors providing goods and services abroad will be required to make new certifications and implement compliance plans. Failure to comply may result in financial penalties, termination for default, suspension or debarment, and potential litigation, including false claims suits.
This Final Rule will be effective on March 2, 2015. The FAR Council has recommended that Contracting Officers to include the Final Rule in Indefinite Delivery/Indefinite Quantity (IDIQ) contracts with task orders remaining after March 2 through bilateral modification, so both new and existing contracts will be subject to the Final Rule after that date.
To supplement and implement the new FAR provisions in Department of Defense (DoD) contracts, DoD is issuing a final rule in the form of its Defense Federal Acquisition Regulation Supplement (DFARS) at Subpart 252.235-7004. In addition, DoD Procedures, Guidance and Information (PGI) can be found at PGI 222.17. Included is a sample checklist for auditing compliance: CTIPs_Audit_Checklist_10_May_2011.