FAR 26.504—Policy.
Plain-English Summary
FAR 26.504 sets the core policy for the Drug-Free Workplace Act requirements in federal contracting. It explains when a contractor or offeror must agree to maintain a drug-free workplace, what that agreement must include, and how the rules differ for organizations versus individuals. The section covers the responsibility determination for non-individual offerors on contracts above the simplified acquisition threshold, the specific workplace policy and employee-notification steps the contractor must implement, the employee duty to report drug convictions, the contractor’s duty to notify the contracting officer, the required response to a conviction, and the need for a good-faith effort to keep the workplace drug-free. It also addresses the separate rule for individual contractors, who must agree not to use, possess, distribute, dispense, or manufacture controlled substances while performing the contract. Finally, it sets the timing for compliance after award, including the normal 30-day implementation period for contracts of 30 days or more and the “as soon as possible” standard for shorter contracts. In practice, this section matters because failure to meet these conditions can affect responsibility determinations, contract award eligibility, and post-award compliance obligations.
Key Rules
Drug-free workplace شرط
For contracts above the simplified acquisition threshold, a non-individual offeror is not a responsible source unless it agrees to maintain a drug-free workplace. This is a condition tied to responsibility and award eligibility, not just a post-award administrative requirement.
Required workplace statement
The contractor must publish a written statement prohibiting unlawful manufacture, distribution, dispensing, possession, or use of controlled substances in the workplace and must state the disciplinary actions that may be taken for violations. This statement is the foundation of the contractor’s drug-free workplace policy.
Employee awareness program
The contractor must establish an ongoing drug-free awareness program that educates employees about workplace drug abuse dangers, the contractor’s drug-free policy, available counseling or assistance programs, and the penalties for drug abuse violations. The program must be active and continuing, not a one-time notice.
Employee notice and reporting duty
Employees performing the contract must receive a copy of the statement and be told, in writing, that they must follow the policy and notify the employer within 5 days after a workplace-related drug conviction. This creates a direct employee reporting obligation tied to contract performance.
Contractor notice to CO
The contractor must notify the contracting officer in writing within 10 days after receiving notice of an employee’s qualifying conviction, whether the notice comes from the employee or from another source. The notice must include the employee’s position title.
Required action after conviction
Within 30 days after receiving notice of a conviction, the contractor must either take appropriate personnel action, up to and including termination, or require the employee to satisfactorily participate in an approved drug abuse assistance or rehabilitation program. The contractor must choose one of these responses.
Good-faith maintenance standard
The contractor must make a good-faith effort to maintain a drug-free workplace by implementing all of the required policy, awareness, notice, reporting, and response steps. This means compliance is judged by actual implementation and effort, not just paper policies.
Individual contractor rule
An individual may be awarded a contract of any dollar value only if the individual agrees not to engage in unlawful manufacture, distribution, dispensing, possession, or use of controlled substances while performing the contract. This rule applies regardless of contract size.
Compliance timing after award
For contracts with a performance period of 30 days or more, the contractor must comply within 30 days after award unless the contracting officer approves a longer period in writing. For contracts under 30 days, compliance must occur as soon as possible and before performance ends.
Responsibilities
Contracting Officer
Determine whether the offeror’s agreement to maintain a drug-free workplace is required for award eligibility, and for contracts of 30 days or more decide whether a longer compliance period is warranted in writing. The contracting officer must also receive timely notice of employee convictions from the contractor.
Offeror / Contractor (non-individual)
Agree to maintain a drug-free workplace as a condition of being considered a responsible source for covered contracts, publish the required statement, establish the awareness program, distribute the statement to employees, obtain employee acknowledgments and reporting commitments, notify the contracting officer of convictions, and take required action after a conviction.
Individual Contractor
Agree not to engage in unlawful manufacture, distribution, dispensing, possession, or use of controlled substances while performing the contract, regardless of contract dollar value.
Employees performing the contract
Abide by the contractor’s drug-free workplace statement and notify the employer in writing within 5 days after a conviction under a criminal drug statute for a workplace-related violation.
Agency / Government
Apply the policy framework in source selection and responsibility determinations and rely on the contractor’s compliance with the required drug-free workplace commitments as part of contract administration.
Practical Implications
This section is both a pre-award and post-award compliance requirement, so contractors need a policy in place before award or very soon after award depending on contract length.
A common pitfall is treating the requirement as just a handbook statement; FAR 26.504 requires an ongoing awareness program, employee distribution, written employee notice, reporting procedures, and action after convictions.
Contractors must track employee convictions carefully because the deadlines are short: employees have 5 days to notify the employer, and the contractor has 10 days to notify the contracting officer after receiving notice.
For short-term contracts, contractors often overlook the accelerated timing rule; compliance must happen as soon as possible and before performance ends, not on a standard 30-day schedule.
The contractor’s response to a conviction is not optional: it must either take personnel action or require approved rehabilitation, and failure to do so can undermine the good-faith effort standard.
Official Regulatory Text
(a) No offeror other than an individual shall be considered a responsible source (see 9.104-1 (g) and 19.602-1 (a)(2)(i)) for a contract that exceeds the simplified acquisition threshold, unless it agrees that it will provide a drug-free workplace by- (1) Publishing a statement notifying its employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the contractor’s workplace, and specifying the actions that will be taken against employees for violations of such prohibition; (2) Establishing an ongoing drug-free awareness program to inform its employees about- (i) The dangers of drug abuse in the workplace; (ii) The contractor’s policy of maintaining a drug-free workplace; (iii) Any available drug counseling, rehabilitation, and employee assistance programs; and (iv) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; (3) Providing all employees engaged in performance of the contract with a copy of the statement required by paragraph (a)(1) of this section; (4) Notifying all employees in writing in the statement required by paragraph (a)(1) of this section, that as a condition of employment on a covered contract, the employee will- (i) Abide by the terms of the statement; and (ii) Notify the employer in writing of the employee’s conviction under a criminal drug statute for a violation occurring in the workplace no later than 5 days after such conviction; (5) Notifying the contracting officer in writing within 10 days after receiving notice under subdivision (a)(4)(ii) of this section, from an employee or otherwise receiving actual notice of such conviction. The notice shall include the position title of the employee; (6) Within 30 days after receiving notice under paragraph (a)(4) of this section of a conviction, taking one of the following actions with respect to any employee who is convicted of a drug abuse violation occurring in the workplace: (i) Taking appropriate personnel action against such employee, up to and including termination. (ii) Requiring such employee to satisfactorily participate in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency. (7) Making a good faith effort to maintain a drug-free workplace through implementation of paragraphs (a)(1) through (a)(6) of this section. (b) No individual shall be awarded a contract of any dollar value unless that individual agrees not to engage in the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance while performing the contract. (c) For a contract of 30 days or more performance duration, the contractor shall comply with the provisions of paragraph (a) of this section within 30 days after contract award, unless the contracting officer agrees in writing that circumstances warrant a longer period of time to comply. Before granting such an extension, the contracting officer shall consider such factors as the number of contractor employees at the worksite, whether the contractor has or must develop a drug-free workplace program, and the number of contractor worksites. For contracts of less than 30 days performance duration, the contractor shall comply with the provisions of paragraph (a) of this section as soon as possible, but in any case, by a date prior to when performance is expected to be completed.