What Is the U.S. Federal Acquisition Regulation (FAR)?
The Federal Acquisition Regulation (FAR) applies to U.S. federal contracts and subcontracts, and includes a provision banning the use of human trafficking and forced labor in supply chains (subpart 22.17). Contractors and subcontractors who source services and/or supplies from abroad as part of U.S. contracts are prohibited from denying an employee access to their identity or immigration documents, using misleading practices to recruit workers, charging recruitment fees, failing to provide written contracts of employment and more. Penalties for non-compliance can include the termination of a contract, suspension of payments or a retraction of the award altogether, in addition to reputational and operational losses.
Requirements Under the Federal Acquisition Regulation (FAR)
The FAR applies to companies with U.S. federal contracts or subcontracts for goods and services (other than commercial off-the-shelf-items) to be acquired outside the U.S. with an estimated value of more than $500,000. These companies must ensure they and their subcontractors maintain a compliance plan during the performance of the contract and submit annual certifications regarding implementation of the plan and associated due diligence activities. A compliance plan is not required for companies with contracts under $500,000. However, these companies must still maintain a due diligence program to assess and mitigate risks, and to ensure no trafficking or forced labor is occurring in the supply chain.
What Should a FAR Compliance Plan Include?
Human Trafficking Policy
Employee Awareness Program
Employee Reporting/Grievance Process
Recruitment and Wage Plan
Housing Plan (If Applicable)
Violation Monitoring and Remediation
Assent’s Human Rights Module Highlights
Assent’s Human Rights Module helps companies comply with the Federal Acquisition Regulation. Some features of the module include:
Manages human trafficking compliance and violations throughout the supply chain
Built-in, customizable risk algorithms to rate and assess supplier risk based on human-trafficking template data
In-depth reporting on supplier and customer activities
Improved legal and reputational protection through proactive compliance
Integrated Assent University compliance learning management system