Section 1704


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Administrative sanctions Economic sanctions Human trafficking Procurement

Section 1704 sets out the procedure for referral and investigation of human trafficking allegations regarding the recipients of Federal Government grants or contracts, and the remedial action that may be taken.  Allegations, including reports from an alleged victim or victim’s representative, are referred to the Inspector General for investigation.  Following the investigation, a report is submitted to the head of the executive agency that awarded the relevant grant or contract, and remedial action may be taken, including requiring the recipient to remove an employee or terminate a subcontract, and terminating the recipients grant or contract as a whole.  Substantiated allegations are entered in the Federal Awardee Performance and Integrity Information System (FAPIIS).


Under Subsection 3, the fact that a recipient had a plan to prevent human trafficking, in accordance with Section 1703, and was complying with that plan, may be treated as a mitigating factor. Likewise, the failure to enforce the requirements of a compliance plan, or to act to stop an alleged violation, may be considered aggravating factors.

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Law / United States / National Defense Authorization Act of 2013

The National Defense Authorization Act is a federal law that specifies the budget and expenditure for the US Department of Defense each year. Title XVII of the 2013 Act provides  governmental agencies the ability to terminate any contract or grant with any organization or individual that engages in human trafficking, forced labour, or in” acts that directly support or advance trafficking in persons.” The Act also establishes a certification requirement, and methods of reporting and investigating allegations of human trafficking associated with government contracts and grants.