FAR 22.602—Statutory requirements.
Plain-English Summary
FAR 22.602 explains when federal supply contracts must include the labor standards clauses required by 41 U.S.C. chapter 65, commonly associated with the Walsh-Healey Public Contracts Act. It applies to contracts for the manufacture or furnishing of materials, supplies, articles, and equipment—called “supplies” in this subpart—when the contract is over $20,000 and is entered into by an executive department, independent establishment, other U.S. agency or instrumentality, the District of Columbia, or a corporation wholly owned by the United States. The section also makes clear that these requirements apply only unless an exemption in FAR 22.604 applies. In practice, this means contracting officers must identify covered supply contracts and ensure the required statutory stipulations are included directly or by reference. The required stipulations address minimum wages, maximum hours, child labor, convict labor, and safe and sanitary working conditions, so the section is a gateway provision that triggers important labor compliance obligations for contractors performing covered federal supply work.
Key Rules
Coverage threshold applies
The statute applies to supply contracts exceeding $20,000. If the contract value is at or below that threshold, this section does not require the statutory stipulations.
Applies to covered federal entities
The rule covers contracts entered into by executive departments, independent establishments, other federal agencies or instrumentalities, the District of Columbia, and wholly U.S.-owned corporations. The identity of the contracting entity matters because the statute is not limited to traditional executive agencies.
Limited to supply contracts
The section applies to contracts for the manufacture or furnishing of materials, supplies, articles, and equipment. FAR treats these items as “supplies” for this subpart, so the focus is on supply procurement rather than services or construction.
Required stipulations must be included
Covered contracts must include or incorporate by reference the stipulations required by 41 U.S.C. chapter 65. Those stipulations address minimum wages, maximum hours, child labor, convict labor, and safe and sanitary working conditions.
Exemptions can remove coverage
The rule begins with an exception for the exemptions in FAR 22.604. If an exemption applies, the contract does not have to include the statutory stipulations even if it otherwise meets the dollar and contract-type criteria.
Responsibilities
Contracting Officer
Determine whether the procurement is a covered supply contract over $20,000 and whether any FAR 22.604 exemption applies. If coverage exists, include or incorporate by reference the required statutory stipulations in the contract.
Agency / Contracting Activity
Use procurement procedures that identify covered contracts and ensure the correct labor standards clauses are available and applied consistently. Support contracting officers with policy, clause templates, and exemption determinations.
Contractor
Comply with the incorporated statutory stipulations on covered contracts, including requirements related to wages, hours, child labor, convict labor, and safe and sanitary working conditions.
Subcontractors / Suppliers
Follow the applicable labor standards requirements when the prime contract flowdown or contract terms make them applicable to their work, especially where the contract is for covered supply manufacturing or furnishing.
Practical Implications
This section is a coverage trigger, so the first practical question on a supply procurement is whether the contract exceeds $20,000 and whether an exemption applies.
A common mistake is assuming all federal contracts are covered; FAR 22.602 is limited to supply contracts and does not automatically apply to services or construction.
Contracting officers should not rely on memory or general labor clause practice—coverage depends on the specific statutory basis, the contracting entity, the dollar threshold, and any exemption in FAR 22.604.
Because the required stipulations may be included by reference, the contract file should clearly show which clause or reference was used so compliance can be verified later.
Contractors should treat these requirements as substantive labor compliance obligations, not mere boilerplate, because they can affect workforce practices, subcontracting arrangements, and performance risk.
Official Regulatory Text
Except for the exemptions at 22.604 , all contracts subject to 41 U.S.C. chapter 65 , (the statute), and entered into by any executive department, independent establishment, or other agency or instrumentality of the United States, or by the District of Columbia, or by any corporation (all the stock of which is beneficially owned by the United States) for the manufacture or furnishing of materials, supplies, articles, and equipment (referred to in this subpart as supplies) in any amount exceeding $20,000, shall include or incorporate by reference the stipulations required by the statute pertaining to such matters as minimum wages, maximum hours, child labor, convict labor, and safe and sanitary working conditions.