FAR 22.604-2—Regulatory exemptions.
Plain-English Summary
FAR 22.604-2 explains when contracts are exempt from the statutory labor standards incorporated under this part, and how agencies can seek additional exemptions. It covers four categories of acquisitions that are fully exempt by rule: public utility services, supplies manufactured outside the United States and certain territories, purchases made against a defaulting contractor’s account when the required stipulations were not in the defaulted contract, and newspapers, magazines, or periodicals ordered through sales agents or publisher representatives for delivery by the publishers. It also describes the process for obtaining a discretionary exemption from the Secretary of Labor for a specific contract or class of contracts when the agency head finds that Government business would be seriously impaired without the exemption. The section further distinguishes where exemption requests must be sent depending on whether the request concerns safety and health standards or other labor standards. In practice, this provision matters because it tells contracting officers and agencies when the statute does not apply automatically, when they must document a serious-impairment justification, and which Department of Labor office must receive the request.
Key Rules
Automatic statutory exemptions
Certain acquisitions are fully exempt from the statute without further approval: public utility services, foreign-manufactured supplies, purchases against a defaulting contractor’s account when the original contract lacked the required stipulations, and periodical subscriptions ordered through sales agents or publisher representatives for publisher delivery.
Foreign-manufactured supplies
Supplies manufactured outside the United States, Puerto Rico, and the U.S. Virgin Islands are excluded from coverage under this exemption rule. Contracting personnel should verify the place of manufacture, not just the place of purchase or shipment.
Defaulted contract purchases
When the Government buys against a defaulting contractor’s account, the exemption applies only if the required statutory stipulations were not included in the defaulted contract. If the stipulations were included, this automatic exemption does not apply.
Discretionary Labor exemption
The Secretary of Labor may exempt a specific contract or class of contracts from one or more statutory stipulations, but only when the agency head requests the exemption and provides a finding that Government business will be seriously impaired without it.
Safety and health request path
Requests that relate solely to safety and health standards must be sent to the Assistant Secretary for Occupational Safety and Health at the Department of Labor. The regulation assigns these requests to a different office than other exemption requests.
Other exemption request path
All exemption requests not limited to safety and health standards must be sent to the Administrator of the Wage and Hour Division at the Department of Labor. Proper routing is part of the required process for obtaining a valid exemption.
Responsibilities
Contracting Officer
Identify whether an acquisition falls within one of the automatic exemption categories and ensure the correct statutory stipulations are omitted or applied. If an exemption is needed beyond the automatic categories, prepare the record and route the matter through agency channels for the agency head’s request to the Department of Labor.
Agency Head
Make the required finding that Government business will be seriously impaired unless the exemption is granted, and formally request the exemption from the Secretary of Labor for a specific contract or class of contracts.
Secretary of Labor
Review agency requests and decide whether to exempt specific contracts or classes of contracts from inclusion or application of one or more statutory stipulations.
Assistant Secretary for Occupational Safety and Health
Receive exemption requests that relate solely to safety and health standards and process them within the Department of Labor’s designated channel.
Administrator of the Wage and Hour Division
Receive all exemption requests that do not relate solely to safety and health standards and process them within the designated Department of Labor channel.
Contractor
Understand whether the contract is exempt from the statute and, where applicable, comply with the contract terms as issued. Contractors should not assume an exemption applies unless it is clearly supported by the contract and the governing exemption authority.
Practical Implications
This section is mainly a coverage-and-process rule: it tells you when the statute does not apply and when you must seek a formal exemption. Missing an exemption issue can lead to inserting the wrong clauses or failing to include required labor stipulations.
The automatic exemptions are narrow. Contracting officers should confirm the acquisition fits the exact category, especially for foreign-manufactured supplies and defaulted-contract purchases.
For discretionary exemptions, the agency head’s written finding is essential. A request without a documented serious-impairment rationale is vulnerable to rejection.
Routing matters. Safety and health-only requests go to OSHA’s Assistant Secretary; all others go to the Wage and Hour Division. Sending a request to the wrong office can delay procurement actions.
Contractors should review solicitations and awards carefully to see whether the statute’s stipulations were included or omitted, because that affects compliance obligations and potential performance requirements.
Official Regulatory Text
(a) Contracts for the following acquisitions are fully exempt from the statute (see 41 CFR50-201.603): (1) Public utility services. (2) Supplies manufactured outside the United States, Puerto Rico, and the U.S. Virgin Islands. (3) Purchases against the account of a defaulting contractor where the stipulations of the statute were not included in the defaulted contract. (4) Newspapers, magazines, or periodicals, contracted for with sales agents or publisher representatives, which are to be delivered by the publishers thereof. (b) (1) Upon the request of the agency head, the Secretary of Labor may exempt specific contracts or classes of contracts from the inclusion or application of one or more of the Act’s stipulations; provided, that the request includes a finding by the agency head stating the reasons why the conduct of Government business will be seriously impaired unless the exemption is granted. (2) Those requests for exemption that relate solely to safety and health standards shall be transmitted to the- Assistant Secretary for Occupational Safety and Health U.S. Department of Labor Washington, DC 202 l0. All other requests shall be transmitted to the- Administrator of the Wage and Hour Division U.S. Department of Labor Washington, DC 202 l0.