Describes how contractor must comply with all applicable federal, state, and local laws and regulations.
Applicability: Required in all contracts.
Key Requirements
Comply with all laws and regulations applicable to the contract work
Implement controls to ensure employee compliance with federal requirements
Notify government of legal changes that affect contract performance
Maintain compliance documentation
Common Issues & Pitfalls
Assuming federal law overrides state/local regulations (both apply)
Not establishing internal compliance processes with employees
Ignoring regulatory changes during contract performance
Treating compliance as one-time certification rather than ongoing obligation
Contractor Guidance for Your Bid
Compliance is an ongoing obligation, not a checkbox. Train your team on relevant requirements for the work. Monitor regulatory changes in your sector. If something becomes illegal, notify the government immediately—hiding it creates liability.
Related FAR Clauses
Frequently Asked Questions
What are the key requirements for FAR 52.206-1: Administration of Federal Requirements?
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Describes how contractor must comply with all applicable federal, state, and local laws and regulations. Required in all contracts.
When does FAR 52.206-1 apply to a federal contract?
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Required in all contracts.
What are the most common compliance issues with FAR 52.206-1?
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Assuming federal law overrides state/local regulations (both apply) Not establishing internal compliance processes with employees Ignoring regulatory changes during contract performance Treating compliance as one-time certification rather than ongoing obligation
How should contractors approach FAR 52.206-1 in their proposals?
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Compliance is an ongoing obligation, not a checkbox. Train your team on relevant requirements for the work. Monitor regulatory changes in your sector. If something becomes illegal, notify the government immediately—hiding it creates liability.
What related FAR clauses should contractors review alongside FAR 52.206-1?
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Contractors reviewing FAR 52.206-1 should also study related clauses: 52-203-2, 52-209-5. Understanding how these clauses interact helps avoid compliance gaps that can trigger contract disputes or disqualify bids.
What happens if a contractor fails to comply with FAR 52.206-1?
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Non-compliance with FAR 52.206-1 can result in contract termination for default, withholding of payments, debarment proceedings, or False Claims Act liability. Contracting officers typically issue a cure notice before termination. Contractors should consult with a contract attorney if they receive a cure notice related to this clause.