In the wake of Executive Order 13627 (2012), the Federal Acquisition Regulatory Council (FARC) published a proposed rule on Sept. 26, 2013 that would impose requirements on contractors related to combating human trafficking. The proposed rule would require certain contractors with non-COTS (commercially available off-the-shelf) contracts to implement a compliance plan with procedures to prevent federal contractor agents/subcontractors from engaging in human trafficking, and to monitor, detect, and terminate those who have engaged in that practice. All contractors (including contractors for COTS items) would also be required to inform the contracting officer and the agency inspector general “immediately” of any “credible information” that any employee, subcontractor, or agent has engaged in any prohibited activities.
Contractors who violate the rule would be subject to penalties, including suspension of payments, termination of the contract, or suspension and debarment of any entity that engages in prohibited activities. Moreover, the rule would institute reporting obligations to the FAPIIS (Federal Awardee Performance and Integrity Information System), including reporting unproven allegations of human trafficking.
Planning Tip: All contractors should familiarize themselves with the proposed rule and stay tuned for any changes before the rule is finalized.