SectionUpdated April 16, 2026

    FAR 22.1309Actions because of noncompliance.

    Plain-English Summary

    FAR 22.1309 explains what the contracting officer must do when the Department of Labor (DOL) imposes sanctions on a contractor for violating the veterans’ equal opportunity clause at FAR 52.222-35, Equal Opportunity for Veterans. The section covers the trigger for action—notification by the appropriate agency official—the contracting officer’s duty to act as soon as possible, and the types of sanctions that may be imposed under the DOL enforcement scheme: withholding progress payments, terminating or suspending the contract, and debarment of the contractor. In practice, this provision ensures that DOL enforcement decisions are carried out promptly in the procurement system and that agencies do not continue normal contract administration when a contractor has been found noncompliant with veterans’ employment requirements. It is a coordination rule between labor enforcement and contracting administration, so the contracting officer is not independently deciding whether a violation occurred, but is implementing the sanction once notified. For contractors, the section signals that noncompliance with the veterans’ equal opportunity clause can have immediate and serious contract and eligibility consequences across current and future federal work.

    Key Rules

    Act promptly on notice

    Once the contracting officer is notified by the appropriate agency official, the contracting officer must take necessary action as soon as possible. The rule is designed to ensure rapid implementation of DOL-imposed sanctions rather than delayed or discretionary follow-through.

    Sanctions come from DOL enforcement

    The sanctions addressed here are imposed by the Department of Labor for violations of FAR 52.222-35, not independently created by the contracting officer. The contracting officer’s role is to implement the sanction that DOL has ordered under its enforcement authority.

    Withholding progress payments

    One possible sanction is withholding progress payments. This can affect the contractor’s cash flow and performance financing, and it is used as an enforcement tool to pressure compliance with veterans’ equal opportunity requirements.

    Suspend or terminate the contract

    Another possible sanction is suspension or termination of the contract. This is a severe remedy that can stop ongoing performance and may create significant operational and contractual consequences for both the contractor and the agency.

    Debarment is possible

    DOL may also impose debarment of the contractor. Debarment affects the contractor’s eligibility for future federal contracting and is one of the most serious consequences of noncompliance.

    Responsibilities

    Contracting Officer

    Upon notification by the appropriate agency official, promptly take the necessary action to implement the DOL-imposed sanction. The contracting officer must carry out the sanction in the contract administration process, including withholding payments, suspending or terminating the contract, or supporting debarment actions as directed.

    Appropriate Agency Official

    Notify the contracting officer when DOL has imposed sanctions for violations of the veterans’ equal opportunity clause. This notification is the trigger for the contracting officer’s required action.

    Department of Labor

    Determine violations of FAR 52.222-35 and impose appropriate sanctions under the applicable enforcement regulations, including withholding progress payments, contract suspension or termination, or debarment.

    Contractor

    Comply with the veterans’ equal opportunity clause and any related DOL requirements. If found noncompliant, the contractor must accept the consequences of the imposed sanction and address the underlying compliance failure.

    Practical Implications

    1

    This section matters because it turns a labor-law enforcement decision into an immediate contracting action, so agencies cannot treat DOL sanctions as merely advisory.

    2

    Contracting officers should act quickly once notified and coordinate closely with labor/compliance officials to ensure the sanction is implemented correctly and documented in the contract file.

    3

    A common pitfall is assuming the contracting officer must independently investigate the violation; under this section, the key trigger is notification of an already imposed DOL sanction.

    4

    Contractors should understand that violations of the veterans’ equal opportunity clause can affect both current contract performance and future eligibility through debarment.

    5

    Because sanctions can include payment withholding or contract termination, noncompliance can create immediate financial and operational disruption, not just reputational risk.

    Official Regulatory Text

    The contracting officer must take necessary action as soon as possible upon notification by the appropriate agency official to implement any sanctions imposed on a contractor by the Department of Labor for violations of the clause at 52.222-35 , Equal Opportunity for Veterans. These sanctions (see 41 CFR 60-300 .66) may include- (a) Withholding progress payments; (b) Termination or suspension of the contract; or (c) Debarment of the contractor.