FAR 13.005—List of laws inapplicable to contracts and subcontracts at or below the simplified acquisition threshold.
Plain-English Summary
FAR 13.005 identifies which statutes do not apply to contracts and subcontracts at or below the simplified acquisition threshold (SAT), and it explains how additional laws may be added to or removed from that list. In practical terms, this section creates a streamlined legal framework for small-dollar federal buys by exempting certain statutory requirements that would otherwise add burden, delay, or administrative cost. The section specifically lists the inapplicable laws, including provisions related to ROTC access and military recruiting restrictions, contingent fees, examination of books and records, limits on subcontractor direct sales, arms-control-related measures, veterans’ employment reporting, and the Drug-Free Workplace requirement for most entities. It also explains the FAR Council’s authority to add later-enacted laws to the list, the exceptions for laws that impose criminal or civil penalties or expressly override the SAT exemption, and the petition process by which any individual may ask OFPP to add a law to the list. For contracting officers and contractors, the practical effect is that SAT acquisitions generally carry fewer statutory clauses and certifications, but users must still verify whether a law is expressly made applicable, whether an exception applies, and whether a subcontract is otherwise subject to the law.
Key Rules
Statutory exemptions at SAT
The section lists specific laws that do not apply to contracts and subcontracts at or below the simplified acquisition threshold, if those laws would otherwise apply to subcontracts. This means contracting personnel should not flow down or enforce those listed statutory requirements for SAT acquisitions unless another rule independently requires them.
Listed laws are excluded
The inapplicable laws include ROTC access/military recruiting restrictions, contingent fee provisions, authority to examine books and records, limits on subcontractor direct sales, certain arms-control measures, veterans’ employment reporting restrictions, and the Drug-Free Workplace statute except for individuals. The section also notes that the certification requirement under 22 U.S.C. 2593e(c)(3)(B) does not apply.
FAR Council adds later laws
Any law enacted after October 13, 1994 that sets policies, procedures, requirements, or restrictions for acquiring property or services must be added to the list unless the FAR Council determines in writing that the law should apply to SAT contracts and subcontracts. This creates a default presumption of exclusion for later procurement-related laws, subject to Council review.
Exceptions for penalties and express applicability
The FAR Council’s authority to exclude later laws does not apply to laws that impose criminal or civil penalties, or to laws that specifically state they apply notwithstanding 41 U.S.C. 1905. Those laws remain applicable even at or below the SAT.
Petition process through OFPP
Any individual may petition the Administrator of OFPP to add an applicable law to the list if it is not already there and the FAR Council has not already determined it is applicable. OFPP must add the law unless the FAR Council determines within 60 days that the law is applicable.
Responsibilities
Contracting Officer
Determine whether the acquisition is at or below the simplified acquisition threshold and apply the SAT statutory exemptions when selecting clauses and administering the contract. The contracting officer must also watch for laws that expressly override the exemption or otherwise remain applicable despite the general list.
Contractor
Understand that certain statutory requirements do not apply to SAT contracts and should not assume every procurement-related law or clause will be included. The contractor should still comply with any law or clause that is expressly applicable, and should not rely on the SAT exemption where a statute specifically overrides it.
Subcontractor
Recognize that the same SAT-based inapplicability can extend to subcontracts if the underlying law would otherwise apply to subcontracts. Subcontractors should review flowdown requirements carefully and confirm whether a listed law is excluded or whether another statute or prime contract requirement still applies.
FAR Council
Maintain the list of laws inapplicable to SAT contracts and subcontracts, add later-enacted procurement-related laws unless a written best-interest exception is made, and determine whether a petitioned law should be treated as applicable within the required timeframe.
OFPP Administrator
Receive petitions from individuals seeking to add laws to the inapplicable list and include the law on the list unless the FAR Council determines within 60 days that the law is applicable.
Individual Petitioner
May petition OFPP to add an applicable law not already on the list, triggering review by the FAR Council and OFPP’s obligation to update the list absent a contrary determination.
Practical Implications
For day-to-day buying, FAR 13.005 reduces clause and certification burden on SAT acquisitions, which supports faster awards and simpler administration. Contracting teams should still verify whether a statute is on the list, whether a later law has been added, and whether the law expressly overrides the SAT exemption.
A common pitfall is assuming that every procurement-related statute applies automatically to small purchases. This section does the opposite: it creates a statutory exclusion for the listed laws and for later laws unless the FAR Council decides otherwise, so clause selection must be deliberate.
Another risk is overlooking the exceptions for criminal/civil penalty statutes and laws that expressly state they apply notwithstanding 41 U.S.C. 1905. Those laws can still apply at or below the SAT, so legal review is important when a new statute appears relevant to procurement.
Contractors and subcontractors should not treat the Drug-Free Workplace exception as a blanket waiver for all entities; the text specifically says the exception is for individuals, so entity-level compliance questions still need careful reading of the underlying statute and clause.
Because the list can change through FAR Council action or OFPP petition, acquisition personnel should not rely only on memory or old templates. They should check current FAR text and agency supplements before issuing solicitations or flowdowns.
Official Regulatory Text
(a) The following laws are inapplicable to all contracts and subcontracts (if otherwise applicable to subcontracts) at or below the simplified acquisition threshold pursuant to 41 U.S.C. 1905 : (1) 10 U.S.C. 983 , Institutions of Higher Education that Prevent ROTC Access or Military Recruiting on Campus: Denial of Grants and Contracts from Department of Defense, Department of Education, and Certain Other Departments and Agencies (see 9.110 ). (2) 10 U.S.C. 3321(b) and 41 U.S.C. 3901(b) (contract clause regarding contingent fees). (3) 10 U.S.C. 3841 and 41 U.S.C. 4706 (authority to examine books and records of (contractors). (4) 10 U.S.C. 4655 and 41 U.S.C. 4704 (prohibition on limiting subcontractors direct sales to the United States). (5) 22 U.S.C. 2593e Measures Against Persons Involved in Activities that Violate Arms Control Treaties or Agreements with the United States. (The requirement at 22 U.S.C. 2593e (c)(3)(B) to provide a certification does not apply.) (6) 31 U.S.C. 1354 (a) Limitation on Use of Appropriated Funds for Contracts with Entities Not Meeting Veterans' Employment Reporting Requirements (see 22.1302 ). (7) 41 U.S.C. 8102(a)(1) (Drug-Free Workplace), except for individuals. (b) The Federal Acquisition Regulatory Council (FAR Council) will include any law enacted after October 13, 1994, that sets forth policies, procedures, requirements, or restrictions for the acquisition of property or services, on the list set forth in paragraph (a) of this section. The FAR Council may make exceptions when it determines in writing that it is in the best interest of the Government that the enactment should apply to contracts or subcontracts not greater than the simplified acquisition threshold. (c) The provisions of paragraph (b) of this section do not apply to laws that- (1) Provide for criminal or civil penalties; or (2) Specifically state that notwithstanding the language of 41 U.S.C. 1905 , the enactment will be applicable to contracts or subcontracts in amounts not greater than the simplified acquisition threshold. (d) Any individual may petition the Administrator, Office of Federal Procurement Policy (OFPP), to include any applicable provision of law not included on the list set forth in paragraph (a) of this section unless the FAR Council has already determined in writing that the law is applicable. The Administrator, OFPP, will include the law on the list in paragraph (a) of this section unless the FAR Council makes a determination that it is applicable within 60 days of receiving the petition.