FAR 22.1604—Compliance evaluation and complaint investigations and sanctions for violations.
Plain-English Summary
FAR 22.1604 explains how compliance with the clause at 52.222-40 is monitored and enforced. It covers four main topics: the Secretary’s authority to conduct compliance evaluations and investigate complaints involving contractors and subcontractors; the duty of contracting departments and agencies to cooperate and provide information and assistance; the Secretary’s authority to impose sanctions and other actions when a violation is found, as described in 29 CFR 471.14; and a limitation on the Secretary’s ability to terminate, suspend, debar, or otherwise sanction a contractor when the agency head has filed and maintained a written objection based on mission-essential performance. In practice, this section creates the enforcement framework for the underlying clause, making clear that compliance is not just a contract administration issue but also a labor-policy enforcement matter handled with agency support and Department of Labor procedures. It also protects agency mission needs by allowing an agency head to object to certain sanctions when the contractor’s performance is essential to the agency’s mission, provided the objection is documented and sustained. The section points readers to the detailed enforcement procedures in 29 CFR 471.10 through 471.16, which govern how investigations and sanctions are carried out.
Key Rules
Secretary may evaluate compliance
The Secretary has authority to conduct compliance evaluations or investigate complaints involving any contractor or subcontractor to determine whether the requirements of the clause at 52.222-40 have been violated. This means enforcement can begin either through proactive review or in response to a complaint.
Agencies must cooperate fully
Contracting departments and agencies are required to cooperate with the Secretary and provide information and assistance as requested. Agencies cannot treat these matters as purely external to the contract; they must support the enforcement process.
Violations may trigger sanctions
If the Secretary finds a violation, the Secretary may take the actions authorized in 29 CFR 471.14. The FAR section itself does not list every penalty, but it incorporates the Department of Labor’s enforcement remedies by reference.
Agency-head objection can block sanctions
The Secretary may not terminate or suspend a contract, or suspend or debar a contractor, if the agency head provides a written objection that includes reasons and a finding that the contractor’s performance is essential to the agency’s mission, and continues to object to the sanctions. This creates a limited exception based on mission necessity.
Procedures are in the CFR
The enforcement process is governed by 29 CFR 471.10 through 471.16. Those provisions supply the detailed procedures for investigations, findings, and enforcement actions, while FAR 22.1604 establishes the basic authority and agency coordination requirements.
Responsibilities
Secretary
May conduct compliance evaluations and investigate complaints to determine whether a contractor or subcontractor violated the clause at 52.222-40. If a violation is found, the Secretary may pursue the enforcement actions authorized by 29 CFR 471.14, subject to the agency-head objection limitation.
Contracting departments and agencies
Must cooperate with the Secretary and provide information and assistance as required for enforcement activities. They must support investigations and compliance evaluations rather than impede them.
Agency head
May submit a written objection to termination, suspension, debarment, or contract suspension if the objection states the reasons and finds that the contractor’s performance is essential to the agency’s mission. The agency head must continue to object for the limitation on sanctions to apply.
Contractor or subcontractor
Must comply with the requirements of the clause at 52.222-40 and may be subject to compliance evaluations, complaint investigations, and sanctions if violations are found.
Practical Implications
Contractors should expect both complaint-driven and proactive compliance reviews, so internal compliance controls matter even when no dispute is pending.
Agencies need to be ready to respond quickly to DOL information requests; poor recordkeeping or slow coordination can complicate investigations.
The agency-head objection is not automatic protection: it must be written, reasoned, tied to mission-essential performance, and maintained to block certain sanctions.
Because the detailed procedures are in 29 CFR 471.10 through 471.16, practitioners should consult those rules when a potential violation is being investigated or when sanctions are being considered.
A common pitfall is assuming the FAR section itself lists all penalties; in fact, it cross-references the Department of Labor’s enforcement framework, so both the FAR and the CFR must be read together.
Official Regulatory Text
(a) The Secretary may conduct compliance evaluations or investigate complaints of any contractor or subcontractor to determine if any of the requirements of the clause at 52.222-40 have been violated. (b) Contracting departments and agencies shall cooperate with the Secretary and provide such information and assistance as the Secretary may require in the performance of the Secretary’s functions. (c) If the Secretary determines that there has been a violation, the Secretary may take such actions as set forth in 29 CFR 471.14 . (d) The Secretary may not terminate or suspend a contract or suspend or debar a contractor if the agency head has provided written objections, which must include a statement of reasons for the objection and a finding that the contractor’s performance is essential to the agency’s mission, and continues to object to the imposition of such sanctions and penalties. Procedures for enforcement by the Secretary are set out in 29 CFR 471.10 through 29 CFR 471.16 .