The FAR Council has announced a final rule to address human trafficking. Amending to FAR to implement 22 U.S.C. § 7104(g), The Trafficking Victims Protection Reauthorization Act of 2003 (TVPRA), as amended by TVPRA of 2005, prohibits contractors and contractor employees from
- engaging in severe forms of trafficking in persons during the period of performance of the contract;
- procuring commercial sex acts during the period of performance of the contract; or
- using forced labor in the performance of the contract.
As required by FAR 52.222-50, contractors are required to educate contractor personnel regarding the government’s “zero tolerance” policy as described in the new rule, and to take immediate action against employees or subcontractors in violation of the policy. In addition, the new rule obligates contractors to disclose the violation and any actions in response thereto. Contractors that fail to comply with the new rules, which take effect February 17, 2009, may face stiff penalties including suspension of contract payments; loss of award fee for the performance period in which the government determined contractor non-compliance; termination of the contract for default or cause, in accordance with the termination clause of this contract; or suspension or debarment.