Group or joint liability Human trafficking Procurement
This provision imposes certain requirements on contractors or subcontractors where the estimated value of the supplies or services required to be performed outside the United States exceed $500,000. All contractors and subcontractors who meet this threshold must create and publish a compliance plan (at the workplace and on the contractor or subcontractor’s website) and must certify prior to receiving an award and annually thereafter, that their contract or subcontract contains a compliance plan, and that to the best of their knowledge, neither they nor their subcontractors have engaged in any trafficking activities.
The requirements of a compliance plan under this section include:
(i) An awareness program to inform employees of a policy against human trafficking and that actions will be taken against employees who violate this plan;
(ii) A process for employees to report trafficking activity without fear of retaliation;
(iii) A recruitment and wage plan that only permits the use of recruitment companies with trained employees, prohibits charging recruitment fees and ensures that wages meet the applicable legal requirements;
(iv) A housing plan that meets host country housing and safety standards; and
(v) Procedures to prevent subcontractors from engaging in human trafficking. However this provision does not apply to contracts or subcontracts for commercially available off-the-shelf items.
Law / 25 September 2012 / United States / Executive Order 13627 - Strenthening Protections Against Trafficking in Persons in Federal Contracts
Executive Order 13627 prohibits federal contractors from engaging in practices that relate to or may lead to human trafficking. The order also imposes certain requirements for the prevention of human trafficking on contracts and subcontracts for materials or services outside the United States.
Failure to comply with the requirements may result in suspension/debarment, termination of the federal contract, imprisonment for false certification, False Claims Act liability and civil litigation. The Order also tasks the President’s Interagency Task Force to Monitor and Combat Trafficking in Persons with establishing a process for evaluating and identifying high-risk industries or sectors.