FAR 13.006—Inapplicable provisions and clauses.
Plain-English Summary
FAR 13.006 explains which FAR provisions and clauses do not apply to contracts and subcontracts at or below the simplified acquisition threshold (SAT), even though other statutes may still apply. This section specifically addresses the inapplicability of the Covenant Against Contingent Fees, Restrictions on Subcontractor Sales to the Government, Anti-Kickback Procedures, Audits and Records—Negotiation (with a limited exception for ARRA-funded actions using Alternate I), Contract Work Hours and Safety Standards—Overtime Compensation, Drug-Free Workplace (except for individuals), and Estimate of Percentage of Recovered Material Content for EPA-designated items. Its purpose is to streamline simplified acquisitions by removing clauses that are generally unnecessary at this dollar level, while preserving any statutory requirements that still apply independently of the FAR clause. In practice, contracting officers should not include these clauses in SAT-level solicitations or contracts unless a specific exception applies, and contractors should understand that omission of these clauses does not eliminate all legal obligations—some requirements may still arise from statute, funding source, or other contract terms. The section is important because it prevents over-cluttering simplified acquisitions with inapplicable clauses and reduces administrative burden, but it also requires careful attention to exceptions, especially for audit rights tied to ARRA funds and any separate statutory compliance obligations.
Key Rules
SAT-level clauses are inapplicable
For contracts and subcontracts at or below the simplified acquisition threshold, the listed FAR provisions and clauses do not apply. This means they generally should not be inserted into these acquisitions unless another rule or exception specifically requires them.
Contingent fee and kickback clauses excluded
The Covenant Against Contingent Fees, Restrictions on Subcontractor Sales to the Government, and Anti-Kickback Procedures clauses are inapplicable at or below the SAT. Even so, contractors remain subject to any separate statutory prohibitions against fraud, bribery, or kickbacks.
Audit clause generally excluded
The Audits and Records—Negotiation clause is inapplicable at or below the SAT, except when used with Alternate I for contracts funded with American Recovery and Reinvestment Act of 2009 funds. That exception preserves audit-related requirements for those specific funding situations.
Overtime compensation clause excluded
The Contract Work Hours and Safety Standards—Overtime Compensation clause does not apply at or below the SAT. This removes the FAR overtime clause from simplified acquisitions, though other wage-and-hour laws may still apply depending on the work and labor category.
Drug-free workplace clause limited
The Drug-Free Workplace clause is inapplicable at or below the SAT, except for individuals. This means the clause is generally not used for these acquisitions, but the exception for individuals must be observed where applicable.
Recovered material estimate clause excluded
The clause requiring an estimate of the percentage of recovered material content for EPA-designated items is inapplicable at or below the SAT. Contracting officers should not require this clause in simplified acquisitions unless another procurement rule independently calls for it.
Responsibilities
Contracting Officer
Determine whether the acquisition is at or below the simplified acquisition threshold and omit the listed clauses unless a specific exception applies. The contracting officer must also recognize when a separate statutory or funding-source requirement still makes a clause or alternate applicable, such as ARRA-funded audit rights.
Contractor
Review the solicitation and contract to confirm which clauses are included and understand that the absence of these FAR clauses does not eliminate all legal obligations. The contractor must still comply with any applicable statutes, labor laws, anti-fraud rules, or funding-specific requirements that apply outside the FAR clause structure.
Subcontractor
Follow the terms that actually flow down from the prime contract and comply with any independent legal requirements that apply to the subcontract work. Subcontractors should not assume that simplified acquisition status automatically removes all compliance obligations.
Agency
Ensure acquisition policies and templates reflect the inapplicability of these clauses at or below the SAT and train personnel on the exceptions. Agencies must also preserve any mandatory statutory requirements that remain applicable despite the FAR clause exclusions.
Practical Implications
Do not automatically load simplified acquisitions with standard clauses that FAR 13.006 makes inapplicable; doing so can create unnecessary compliance burden and confusion.
The biggest trap is assuming that a clause’s inapplicability means the underlying law no longer matters. Statutes, labor standards, anti-kickback rules, and funding-specific requirements may still apply even when the FAR clause does not.
Pay close attention to the ARRA exception for the audit clause. If the contract uses ARRA funds, the alternate version may still be required even though the base clause is otherwise inapplicable.
For contractors, the practical takeaway is to read the solicitation carefully and verify whether any omitted clause is truly unnecessary or whether another authority imposes a similar obligation.
For contracting officers, the key day-to-day task is clause hygiene: include only what applies, document any exception, and avoid inconsistent clause prescriptions across simplified acquisitions.
Official Regulatory Text
While certain statutes still apply, pursuant to Public Law103-355, the following provisions and clauses are inapplicable to contracts and subcontracts at or below the simplified acquisition threshold: (a) 52.203-5 , Covenant Against Contingent Fees. (b) 52.203-6 , Restrictions on Subcontractor Sales to the Government. (c) 52.203-7 , Anti-Kickback Procedures. (d) 52.215-2 , Audits and Records-Negotiation, except as used with its Alternate I, when using funds appropriated or otherwise made available by the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5). (e) 52.222-4 , Contract Work Hours and Safety Standards-Overtime Compensation. (f) 52.226-7 , Drug-Free Workplace, except for individuals. (g) 52.223-9 , Estimate of Percentage of Recovered Material Content for EPA-Designated Items.