Human Trafficking Is Forbidden by Government Contracts. But What Is “Human Trafficking”?

Sheppard Mullin Richter & Hampton LLP
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FAR 52.222-50 prohibits “human trafficking.” To quote the current GEICO TV commercials, “Everybody knows that.” But do you know exactly what the FAR prohibits? The answer includes some obvious pernicious acts, but it also covers some related activities that might not necessarily jump immediately to mind. Remember, these prohibitions apply to all contractors – large and small, commercial and non-commercial, whether the contract was awarded via sealed bidding or negotiation – and to their employees and agents, and they must be flowed down to subcontractors. Moreover, there is an obligation to conduct “due diligence” and certify to subcontractor compliance with the prohibitions if the subcontract exceeds $500,000 and any portion is for non-COTS supplies acquired or for services performed outside the United States.

So, click here to see the ten types of activities that could earn you a default termination, suspension or debarment, forbearance in the exercise of contract options, suspension of contract payments, or loss of award fee, or that might require you to discharge non-compliant employees or terminate non-compliant subcontractors, or garner you some unflattering publicity in the media.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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