FAR 7.108 Limits How Agencies Restrict Contractor Telework

FAR 7.108 provides an important distinction for contractors navigating federal return-to-office policies: an agency’s workplace rules for federal employees do not automatically determine whether contractor personnel may telework. Under the rule as described in the source material, agencies generally may not prohibit contractor employees from teleworking or evaluate offers unfavorably because an offeror proposes telework. A restriction or adverse evaluation must be connected to agency requirements and handled through the required contracting documentation and solicitation provisions.

The procurement process is central to that distinction. FAR 7.108(b) states: “The contracting officer shall document the basis for the determination in writing and address the evaluation procedures in the solicitation.” The source identifies security and mission requirements as relevant considerations that may support a restriction. For industry, this makes the solicitation—not broad reports about federal employee attendance—the key document for determining whether telework is permitted, limited, or evaluated in a particular competition.

The news signal also cites the Office of Personnel Management (OPM) as reporting a 73% decline in federal telework from 2024 to 2025 following a return-to-office order. A second signal repeats the 73% figure but does not provide supporting data. That reported change concerns the federal workforce and should not be treated as evidence that contractor telework has declined by the same amount or that FAR 7.108 has changed. The source notes that reports of agency-specific exceptions and workplace effects are anecdotal, not measured outcomes.

For contractors, the practical response is to assess each opportunity on its own terms. Review solicitations for telework restrictions, evaluation procedures, and stated agency needs; ask procurement questions when the terms are unclear; and ensure proposed staffing approaches align with any disclosed security or mission requirements. Contracting officers, in turn, should document the rationale for a determination and address relevant procedures in the solicitation. The Department of Transportation is listed among the agencies associated with this signal, but the source does not establish a specific department-wide telework rule or procurement action. Businesses should avoid drawing broader conclusions from that mention or from unverified anecdotal reports.

• FAR 7.108 generally bars agencies from prohibiting contractor telework or evaluating offers unfavorably because of telework without a documented, requirement-based determination.
• FAR 7.108(b) requires the contracting officer to document the basis in writing and address evaluation procedures in the solicitation.
• Security and mission requirements may be relevant grounds for agency-specific restrictions, according to the source material.
• Contractors should review each solicitation for telework limits, evaluation criteria, and the stated basis for any restriction.
• The source cites OPM as reporting a 73% decline in federal telework from 2024 to 2025 after a return-to-office order.
• A second signal repeats the 73% figure without supporting data, so the statistic should be treated cautiously.
• The reported federal employee telework decline does not itself establish a change to contractor telework rules.
• Reports of agency-specific exceptions and workplace effects are anecdotal and should not be presented as measured outcomes.
• Department of Transportation is named in the source, but no specific department-wide restriction or contract action is established.