FAR 22.406-11—Contract terminations.
Plain-English Summary
FAR 22.406-11 addresses what happens after a contract or subcontract is terminated because of a violation of the labor standards clauses. Its focus is not on the termination decision itself, but on the required reporting that follows a termination for labor standards noncompliance. The section requires the contracting agency to send a report to the Administrator of the Wage and Hour Division and specifies exactly what information must be included: the terminated contract number, the name and address of the terminated contractor or subcontractor, the name and address of any replacement contractor or subcontractor that will complete the work, the amount and number of any replacement contract, and a description of the work. In practice, this provision creates a formal record for labor enforcement and oversight, helping the Department of Labor track enforcement actions and understand how the work will be completed after termination. For contracting personnel, it means termination for labor standards violations triggers a mandatory administrative reporting step, and the report must be complete and accurate.
Key Rules
Report required after termination
If a contract or subcontract is terminated for violating labor standards clauses, the contracting agency must submit a report to the Administrator, Wage and Hour Division. This is a mandatory follow-up action tied specifically to labor standards enforcement.
Report the terminated contract
The report must identify the terminated contract by number. This ensures the enforcement record is tied to the exact procurement action involved.
Identify the terminated party
The report must include the name and address of the terminated contractor or subcontractor. This provides the Wage and Hour Division with the identity and location of the party whose contract or subcontract was terminated.
Identify any replacement performer
If another contractor or subcontractor will complete the work, the report must include that party’s name and address. This allows the government to track who took over performance after termination.
State replacement contract details
If there is a replacement contract, the report must include its amount and number. This helps document the financial and contractual disposition of the remaining work.
Describe the work
The report must include a description of the work. This gives context for the termination and the replacement arrangement and helps the Wage and Hour Division understand the scope of the affected effort.
Responsibilities
Contracting Agency
Prepare and submit the required report to the Administrator, Wage and Hour Division whenever a contract or subcontract is terminated for violation of labor standards clauses. Ensure the report contains all required data elements.
Contracting Officer / Agency Contracting Staff
As part of the agency’s contract administration process, gather the contract number, party names and addresses, replacement contract information, and work description, and ensure the report is accurate and transmitted promptly.
Terminated Contractor or Subcontractor
No reporting duty is assigned in this section, but the party is the subject of the report and may need to provide information or records to support the agency’s reporting and termination actions.
Replacement Contractor or Subcontractor
No direct duty is imposed by this section, but if selected to complete the work, its identity and address must be included in the agency’s report.
Administrator, Wage and Hour Division
Receive the report as the enforcement and oversight recipient for terminations based on labor standards violations.
Practical Implications
A labor-standards termination is not complete from an administrative standpoint until the agency prepares the required report to Wage and Hour Division.
Missing or incorrect contract numbers, party names, addresses, or replacement contract details can undermine the usefulness of the report and create compliance issues.
If the work is reprocured or completed by another firm, the agency should capture the replacement contract information early so the report can be finalized accurately.
This section is about reporting only; it does not itself explain the termination authority, the underlying labor standards violation, or the procedures for reprocurement.
Contracting staff should treat the report as part of the official termination file and ensure the description of work is clear enough for enforcement review.
Official Regulatory Text
If a contract or subcontract is terminated for violation of the labor standards clauses, the contracting agency shall submit a report to the Administrator, Wage and Hour Division. The report shall include- (a) The number of the terminated contract; (b) The name and address of the terminated contractor or subcontractor; (c) The name and address of the contractor or subcontractor, if any, who is to complete the work; (d) The amount and number of the replacement contract, if any; and (e) A description of the work.