FAR 22.101-1—General.
Plain-English Summary
FAR 22.101-1 sets the Government-wide baseline for handling labor relations issues that can affect contract performance. It covers agency duties to maintain sound relations with industry and labor, remain neutral in labor-management disputes, avoid conciliation/mediation/arbitration of disputes, encourage use of outside dispute-resolution resources, exchange labor-related information with other affected agencies, take appropriate actions to protect acquisition programs, and designate programs or requirements where contractors must notify the Government of actual or potential labor disputes. It also points readers to the project labor agreement rules in FAR subpart 22.5 and to the contractor-notification procedures in FAR 22.103-5(a). In practice, this section is about protecting continuity of supply and service while preserving agency neutrality and respecting the separate roles of labor-relations authorities. It matters because labor disputes can delay performance, disrupt critical programs, and create schedule and cost risk, but agencies must respond carefully so they do not interfere with the merits of the dispute or exceed their acquisition responsibilities.
Key Rules
Maintain sound labor relations
Agencies must maintain sound relations with industry and labor so they receive prompt information about labor issues that could harm the acquisition process and so the Government can obtain needed supplies and services without delay. All labor-relations matters must be handled under agency procedures.
Remain neutral in disputes
Agencies must stay impartial in disputes between labor and contractor management and may not undertake conciliation, mediation, or arbitration of a labor dispute. The agency’s role is not to pick sides or resolve the merits of the dispute.
Use outside dispute resources
To the extent practicable, agencies should encourage the parties to use available dispute-resolution methods, including the National Labor Relations Board, Federal Mediation and Conciliation Service, National Mediation Board, and other appropriate Federal, State, local, or private agencies.
See project labor agreement rules
When project labor agreements are involved, the agency must look to FAR subpart 22.5. This section does not itself establish the full PLA framework; it directs users to the specialized rules.
Coordinate with other agencies
When practicable, agencies should exchange labor-matter information with other affected agencies to promote a uniform Government approach to a particular plant or labor-management dispute. This helps avoid inconsistent Government actions across programs.
Take protective actions
Agencies should take other actions on labor-relations problems as long as those actions are consistent with acquisition responsibilities. Examples include notifying the responsible conciliation or mediation agency, providing factual information about the dispute’s impact on acquisition programs, and seeking a voluntary agreement to keep supplies and services flowing.
Do not enter the merits
Any attempt to obtain a voluntary agreement must not involve the agency in the merits of the dispute and may occur only after consultation with the agency responsible for conciliation, mediation, arbitration, or related action. This preserves neutrality while allowing practical continuity measures.
Designate notification programs
The head of the contracting activity may identify programs or requirements where contractors must notify the Government of actual or potential labor disputes that delay or threaten timely performance. This authority ties into the contractor-notification procedures in FAR 22.103-5(a).
Responsibilities
Agencies
Maintain sound relations with industry and labor, handle labor-relations matters under agency procedures, remain impartial in disputes, avoid conciliation/mediation/arbitration, encourage use of outside dispute-resolution bodies, exchange information with other affected agencies when practicable, and take appropriate protective actions consistent with acquisition responsibilities.
Contracting activities / Heads of contracting activity
Designate programs or requirements for which contractors must notify the Government of actual or potential labor disputes that may delay performance, using the authority referenced in FAR 22.103-5(a).
Contracting officers and acquisition staff
Monitor labor-related risks to performance, coordinate with the appropriate agency offices and outside dispute-resolution resources, provide factual impact information when appropriate, and ensure any response stays neutral and within acquisition authority.
Contractors
When required by a designated program or requirement, notify the Government of actual or potential labor disputes that are delaying or may delay timely contract performance.
Parties to the labor dispute
Use available dispute-resolution methods, including the relevant Federal, State, local, private, or specialized labor-relations agencies, to resolve the dispute without unnecessary Government involvement.
Other affected agencies
Share labor-matter information with each other when practicable so the Government can present a consistent approach to the same plant, workforce, or labor-management dispute.
Practical Implications
This section is mainly about risk management: agencies need early awareness of labor disputes that could disrupt performance, but they must respond without taking sides or trying to settle the dispute themselves.
Contracting personnel should know the difference between providing factual impact information and arguing the merits of the labor dispute; crossing that line can create neutrality and authority problems.
If a program is designated for contractor labor-dispute notification, contractors need internal processes to identify potential strikes, lockouts, work stoppages, or other delays early and report them promptly.
Agencies should coordinate internally and with other affected agencies to avoid inconsistent messages or actions that could complicate the dispute or the acquisition response.
When project labor agreements are in play, users must move to FAR subpart 22.5 rather than relying on this general rule alone, because the detailed requirements are elsewhere.
Official Regulatory Text
(a) Agencies shall maintain sound relations with industry and labor to ensure (1) prompt receipt of information involving labor relations that may adversely affect the Government acquisition process and (2) that the Government obtains needed supplies and services without delay. All matters regarding labor relations shall be handled in accordance with agency procedures. (b) (1) Agencies shall remain impartial concerning any dispute between labor and contractor management and not undertake the conciliation, mediation, or arbitration of a labor dispute. To the extent practicable, agencies should ensure that the parties to the dispute use all available methods for resolving the dispute, including the services of the National Labor Relations Board, Federal Mediation and Conciliation Service, the National Mediation Board and other appropriate Federal, State, local, or private agencies. (2) For use of project labor agreements, see subpart 22.5 . (c) Agencies should, when practicable, exchange information concerning labor matters with other affected agencies to ensure a uniform Government approach concerning a particular plant or labor-management dispute. (d) Agencies should take other actions concerning labor relations problems to the extent consistent with their acquisition responsibilities. For example, agencies should- (1) Notify the agency responsible for conciliation, mediation, arbitration, or other related action of the existence of any labor dispute affecting or threatening to affect agency acquisition programs; (2) Furnish to the parties to a dispute factual information pertinent to the dispute’s potential or actual adverse impact on these programs, to the extent consistent with security regulations; and (3) Seek a voluntary agreement between management and labor, notwithstanding the continuance of the dispute, to permit uninterrupted acquisition of supplies and services. This shall only be done, however, if the attempt to obtain voluntary agreement does not involve the agency in the merits of the dispute and only after consultation with the agency responsible for conciliation, mediation, arbitration, or other related action. (e) The head of the contracting activity may designate programs or requirements for which it is necessary that contractors be required to notify the Government of actual or potential labor disputes that are delaying or threaten to delay the timely contract performance (see 22.103-5 (a)).