FAR 22.1803—Contract clause.
Plain-English Summary
FAR 22.1803 tells contracting officers when they must include the Employment Eligibility Verification clause at FAR 52.222-54 in solicitations and contracts. The section is about the scope of the E-Verify requirement, the dollar threshold, and the specific exceptions that remove a procurement from coverage. It applies to contracts exceeding $150,000 unless the work is performed entirely outside the United States, the period of performance is less than 120 days, or the acquisition is limited to certain exempt items and services tied to commercial products. In practice, this section matters because it determines whether the contractor must use E-Verify to confirm the employment eligibility of certain employees working on the contract. For contractors, the rule affects compliance planning, staffing, and subcontract flowdown considerations; for contracting officers, it is a solicitation-and-award screening requirement that must be applied carefully to avoid improper omission or improper inclusion of the clause.
Key Rules
Clause required over threshold
Insert FAR 52.222-54, Employment Eligibility Verification, in all solicitations and contracts that exceed $150,000. The clause is mandatory unless one of the listed exceptions applies.
Outside-U.S. work exception
Do not include the clause when the contract is only for work that will be performed outside the United States. The exception is limited to contracts entirely for overseas performance.
Short performance exception
Do not include the clause when the period of performance is less than 120 days. This exception is based on the contract’s total performance period, not just the time an individual employee may work.
COTS item exception
Do not include the clause when the contract is only for commercially available off-the-shelf items. The exemption is limited to acquisitions consisting solely of COTS items.
Minor-modification COTS exception
Do not include the clause when the contract is only for items that would be COTS items but for minor modifications as defined in FAR 2.101. The item remains exempt if the modification is only minor under the commercial products definition.
Bulk cargo COTS-like exception
Do not include the clause when the contract is only for items that would be COTS items if they were not bulk cargo. This preserves the exemption for certain bulk cargo acquisitions that otherwise fit the COTS concept.
Covered commercial services exception
Do not include the clause when the contract is only for commercial services that are part of the purchase of a COTS item, performed by the COTS provider, and normally provided for that COTS item. All three conditions must be met for the exception to apply.
Responsibilities
Contracting Officer
Determine whether the solicitation or contract exceeds $150,000 and whether any exception applies. If no exception applies, insert FAR 52.222-54 in the solicitation and contract and ensure the requirement is carried through appropriately.
Contractor
If the clause is included, comply with the Employment Eligibility Verification requirements in FAR 52.222-54, including using E-Verify as required for covered employees and maintaining compliance with the contract terms.
Agency
Apply the rule consistently in acquisition planning and contract formation, and ensure contracting personnel understand the threshold and exceptions so the clause is included only when required.
Practical Implications
This section is a gatekeeping rule: before award, the contracting officer must decide whether the E-Verify clause belongs in the solicitation and contract.
A common pitfall is treating the exceptions too broadly; the contract must be only for the exempt work or items, not merely include some exempt elements.
The 120-day exception is based on the contract’s period of performance, so short task durations do not automatically qualify if the overall contract runs longer.
For commercial acquisitions, the exemption is narrow and depends on the exact nature of the item or service, especially whether the service is normally provided with the COTS item and by the COTS provider.
If the clause is omitted when required, the government may lose a needed compliance mechanism; if it is included when an exception applies, contractors may face unnecessary administrative burden and confusion.
Official Regulatory Text
Insert the clause at 52.222-54 , Employment Eligibility Verification, in all solicitations and contracts that exceed $150,000, except those that— (a) Are only for work that will be performed outside the United States; (b) Are for a period of performance of less than 120 days; or (c) Are only for- (1) Commercially available off-the-shelf items; (2) Items that would be COTS items, but for minor modifications (as defined at paragraph (3)(ii) of the definition of "commercial products" at 2.101 ); (3) Items that would be COTS items if they were not bulk cargo; or (4) Commercial services that are- (i) Part of the purchase of a COTS item (or an item that would be a COTS item, but for minor modifications); (ii) Performed by the COTS provider; and (iii) Are normally provided for that COTS item.