Sec. 304. Federal contractor compliance with civil rights laws

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In this section: The term covered contract means a Federal contract for the procurement of property or services, including construction, valued in excess of $500,000. The term covered subcontract — means a subcontract for property or services under a Federal contract that is valued in excess of $500,000; and does not include a subcontract for the procurement of commercially available off-the-shelf items. The term executive agency has the meaning given the term in section 133 of title 41, United States Code.

The head of an executive agency shall ensure that the solicitation for a covered contract requires the offeror— to represent, to the best of the offeror’s knowledge and belief, whether there has been any administrative merits determination, arbitral award or decision, or civil judgment, as defined in guidance issued by the Secretary of Labor, rendered against the offeror in the preceding 3 years for violations of— the Fair Labor Standards Act of 1938 ( 29 U.S.C. 201 et seq.); the Occupational Safety and Health Act of 1970 ( 29 U.S.C. 651 et seq.); the Migrant and Seasonal Agricultural Worker Protection Act ( 29 U.S.C. 1801 et seq.); the National Labor Relations Act ( 29 U.S.C. 151 et seq.); subchapter IV of chapter 31 of title 40, United States Code (commonly known as the Davis-Bacon Act ); chapter 67 of title 41, United States Code (commonly known as the Service Contract Act );

Executive Order 11246 ( 42 U.S.C. 2000e note; relating to equal employment opportunity); section 503 of the Rehabilitation Act of 1973 ( 29 U.S.C. 793 ); section 4212 of title 38, United States Code; the Family and Medical Leave Act of 1993 ( 29 U.S.C. 2601 et seq.); title VII of the Civil Rights Act of 1964 ( 42 U.S.C. 2000e et seq.); the Americans with Disabilities Act of 1990 ( 42 U.S.C. 12101 et seq.); the Age Discrimination in Employment Act of 1967 ( 29 U.S.C. 621 et seq.); title II of the Genetic Information Nondiscrimination Act of 2008 ( 42 U.S.C. 2000ff et seq.);

Executive Order 13658 (79 Fed. Reg. 9851; relating to establishing a minimum wage for contractors); or equivalent State laws, as defined in guidance issued by the Secretary of Labor; to require each subcontractor for a covered subcontract— to represent to the offeror, and the entity designated by the final rule reissued under subsection (e)(1), to the best of the subcontractor’s knowledge and belief, whether there has been any administrative merits determination, arbitral award or decision, or civil judgment, as defined in guidance issued by the Secretary of Labor, rendered against the subcontractor in the preceding 3 years for violations of any of the labor laws listed under subparagraph (A); and to update such information every 6 months for the duration of the subcontract; and to consider the advice rendered by the entity designated by the final rule reissued under subsection (e)(1), or information submitted by a subcontractor pursuant to subparagraph (B), in determining whether the subcontractor is a responsible source with a satisfactory record of integrity and business ethics— prior to awarding the subcontract; or in the case of a subcontract that is awarded or will become effective within 5 days of the prime contract being awarded, not later than 30 days after awarding the subcontract.

A contracting officer, prior to awarding a covered contract, shall, as part of the responsibility determination, provide an offeror who makes a disclosure pursuant to paragraph

(1)an opportunity to report any steps taken to correct the violations of or improve compliance with the labor laws listed in subparagraph

(A)of such paragraph, including any agreements entered into with an enforcement agency. The executive agency’s Labor Compliance Advisor designated under subsection (d), in consultation with relevant enforcement agencies, shall advise the contracting officer whether agreements are in place or are otherwise needed to address appropriate remedial measures, compliance assistance, steps to resolve issues to avoid further violations, or other related matters concerning the offeror. The contracting officer, in consultation with the executive agency’s Labor Compliance Advisor designated under subsection (d), shall consider information provided by the offeror under this subsection in determining whether the offeror is a responsible source with a satisfactory record of integrity and business ethics. The determination shall be based on the guidance reissued under subsection (e)(2)(A) and the final rule reissued under subsection (e)(1). As appropriate, contracting officers, in consultation with their executive agency’s Labor Compliance Advisor, shall refer matters related to information provided under subparagraphs

(A)and

(B)of paragraph

(1)to the executive agency’s suspension and debarment official in accordance with agency procedures. The contracting officer for a covered contract shall require that the contractor update the information provided under subparagraphs

(A)and

(B)of subsection (b)(1) every 6 months. The contracting officer, in consultation with the Labor Compliance Advisor designated pursuant to subsection (d), shall determine whether any information provided under paragraph

(1)warrants corrective action. Such action may include— an agreement requiring appropriate remedial measures; compliance assistance; resolving issues to avoid further violations; the decision not to exercise an option on a contract or to terminate the contract; or referral to the agency suspending and debarring official. The prime contractor for a covered contract, in consultation with the Labor Compliance Advisor, shall determine whether any information provided under subsection (b)(1)(B) warrants corrective action, including remedial measures, compliance assistance, and resolving issues to avoid further violations. The Secretary of Labor shall, as appropriate, inform executive agencies of its investigations of contractors and subcontractors on current Federal contracts for purposes of determining the appropriateness of actions described under subparagraphs

(A)and (B). Each executive agency shall designate a senior official to act as the agency’s Labor Compliance Advisor. The Labor Compliance Advisor shall— meet quarterly with the Deputy Secretary, Deputy Administrator, or equivalent executive agency official with regard to matters covered under this section; work with the acquisition workforce, agency officials, and agency contractors to promote greater awareness and understanding of the requirements of the labor laws listed in subsection (b)(1)(A), including record keeping, reporting, and notice requirements, as well as best practices for obtaining compliance with these requirements; coordinate assistance for executive agency contractors seeking help in addressing and preventing violations of such laws; in consultation with the Secretary of Labor or other relevant enforcement agencies, and pursuant to subsection (b)(2) as necessary, provide assistance to contracting officers regarding appropriate actions to be taken in response to violations of the labor laws listed in subsection (b)(1)(A) identified prior to or after contracts are awarded, and address complaints in a timely manner, by— providing assistance to contracting officers and other executive agency officials in reviewing the information provided under paragraphs

(1)and

(2)of subsection

(b)and subsection (c)(1), or other information indicating such a violation, in order to assess the serious, repeated, willful, or pervasive nature of any such violation and evaluate steps contractors have taken to correct such violations or improve compliance with relevant requirements; helping agency officials determine the appropriate response to address violations of the labor laws listed in subsection (b)(1)(A) or other information indicating such a violation (particularly a serious, repeated, willful, or pervasive violation), including an agreement requiring appropriate remedial measures, a decision not to award a contract or exercise an option on a contract, contract termination, or a referral to the executive agency suspension and debarment official; providing assistance to appropriate executive agency officials in receiving and responding to, or making referrals of, complaints alleging violations by agency contractors and subcontractors of the labor laws listed in subsection (b)(1)(A); and supporting contracting officers, suspension and debarment officials, and other agency officials in the coordination of actions taken pursuant to this subsection to ensure agency-wide consistency, to the extent practicable; as appropriate, send information to agency suspension and debarment officials in accordance with agency procedures; consult with the agency’s Chief Acquisition Officer and Senior Procurement Executive, and the Department of Labor as necessary, in the development of regulations, policies, and guidance addressing compliance by contractors and subcontractors with the labor laws listed in subsection (b)(1)(A); make recommendations to the agency to strengthen agency management of contractor compliance with such labor laws; publicly report, on an annual basis, a summary of agency actions taken to promote greater compliance with such laws, including the agency’s response under this section to serious, repeated, willful, or pervasive violations of such laws; and participate in the interagency meetings regularly convened by the Secretary of Labor under subsection (e)(2)(B)(iii). Notwithstanding Public Law 115–11 (131 Stat. 75) and section 553 of title 5, United States Code, not later than 1 year after the date of enactment of this Act, the Secretary of Defense, the Administrator of the General Services Administration, and the Administrator of the National Aeronautics and Space Administration shall reissue the final rule entitled Federal Acquisition Regulation; Fair Pay and Safe Workplaces (81 Fed. Reg. 58,562 (Aug. 25, 2016)), subject to subparagraph (B). The agencies described in subparagraph

(A)may, in reissuing the final rule under such subparagraph, update any date provided in such final rule as reasonable and necessary. Not later than 1 year after the date of enactment of this Act, the Secretary of Labor shall reissue the guidance entitled Guidance for Executive Order 13673, (81 Fed. Reg. 58,654 (Aug. 25, 2016)). In reissuing such guidance, the Secretary of Labor may update any date provided in such guidance as reasonable. Fair Pay and Safe Workplaces The Secretary of Labor shall— develop a process— for the Labor Compliance Advisors designated pursuant to subsection

(d)to consult with the Secretary of Labor in carrying out their responsibilities under subsection (d)(2)(D); by which contracting officers and Labor Compliance Advisors may give appropriate consideration to determinations and agreements made by the Secretary of Labor and the heads of other executive agencies; and by which contractors may enter into agreements with the Secretary of Labor, or the head of another executive agency, prior to being considered for a contract; review data collection requirements and processes, and work with the Director of the Office of Management and Budget, the Administrator of General Services, and other agency heads to improve such requirements and processes, as necessary, to reduce the burden on contractors and increase the amount of information available to executive agencies; regularly convene interagency meetings of Labor Compliance Advisors to share and promote best practices for improving labor law compliance; and designate an appropriate contact for executive agencies seeking to consult with the Secretary of Labor with respect to the requirements and activities under this section. The Director of the Office of Management and Budget shall— work with the Administrator of General Services to include in the Federal Awardee Performance and Integrity Information System the information provided by contractors pursuant to subsections (b)(1)(A) and (c)(1) and data on the resolution of any issues related to such information; and designate an appropriate contact for agencies seeking to consult with the Office of Management and Budget on matters arising under this section. The Administrator of General Services, in consultation with other relevant executive agencies, shall establish a single Internet website for Federal contractors to use for all Federal contract reporting requirements under this section, as well as any other Federal contract reporting requirements to the extent practicable. The heads of executive agencies with covered contracts shall provide the Administrator of General Services with the data necessary to maintain the Internet website established under subparagraph (A). After reissuing the guidance under paragraph (2)(A) or the final rule under paragraph (1), the Secretary of Labor or the Secretary of Defense, the Administrator of the General Services Administration, and the Administrator of the National Aeronautics and Space Administration may, respectively, amend such guidance or final rule consistent with the requirements under chapter 5 of title 5, United States Code. Not later than 9 months after the date of enactment of this Act, the Federal Acquisition Regulatory Council shall amend the Federal Acquisition Regulation to carry out the provisions of this section. Nothing in this section shall be construed as— impairing or otherwise affecting the authority granted by law to an executive agency or the head thereof; or impairing or otherwise affecting the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

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