Define: Public Contracts Act

Public Contracts Act
Public Contracts Act
Quick Summary of Public Contracts Act

The Walsh-Healey Act, also referred to as the Public Contracts Act, was enacted in 1936. This legislation mandates that companies engaging in government contracts must compensate their employees with at least the minimum wage, ensure an eight-hour workday and a 40-hour workweek, and provide additional compensation for any overtime work. Additionally, the law prohibits the utilization of convict labor and the employment of females under 18 or males under 16 years old. Lastly, it obligates companies to uphold clean and safe working environments for their workers.

Full Definition Of Public Contracts Act

The Public Contracts Act, also known as the Walsh-Healey Act, is a federal law enacted in 1936. It mandates that companies engaging in government contracts must adhere to specific regulations to ensure equitable treatment of their employees. According to this act, government contractors are obligated to:
– Compensate their workers with at least the minimum wage
– Restrict the workday to eight hours and the workweek to 40 hours, with additional compensation for any extra hours worked
– Prohibit the use of convict labor and the employment of females under 18 or males under 16 years of age
– Maintain clean and safe working conditions
For instance, if a company is granted a contract to construct a new government building, they must comply with the provisions of the Public Contracts Act when hiring workers for the project. This entails fair payment, limited working hours, and a secure work environment.

Public Contracts Act FAQ'S

The Public Contracts Act is a federal law that governs the procurement process for government contracts. It sets out the rules and regulations that must be followed by both government agencies and contractors when entering into public contracts.

The Public Contracts Act applies to all government agencies at the federal, state, and local levels, as well as to contractors who bid on and perform public contracts.

Some key requirements under the Public Contracts Act include competitive bidding, transparency in the procurement process, equal opportunity for all qualified contractors, and adherence to specific contract terms and conditions.

The competitive bidding process requires government agencies to solicit bids from multiple contractors for a specific project or service. Contractors must submit their bids, and the agency will evaluate them based on various factors such as price, qualifications, and past performance.

Yes, there are certain exceptions to the competitive bidding requirement under the Public Contracts Act. These exceptions may include emergencies, sole-source procurements, or contracts with small businesses or disadvantaged groups.

Non-compliance with the Public Contracts Act can result in severe penalties, including contract termination, financial penalties, suspension or debarment from future government contracts, and even criminal charges in some cases.

Yes, a contractor can challenge a government agency’s decision under the Public Contracts Act. This can be done through various means, such as filing a bid protest or pursuing a legal action in court.

Yes, contractors are generally required to maintain accurate records of their contract performance, including financial records, invoices, and other relevant documentation. They may also be required to submit periodic reports to the government agency overseeing the contract.

Yes, a government agency can terminate a contract under certain circumstances, such as non-performance, breach of contract, or if it is in the best interest of the government. However, there are specific procedures and requirements that must be followed to ensure fairness and due process.

To ensure compliance with the Public Contracts Act, contractors should familiarize themselves with the specific requirements of the Act, maintain accurate records, participate in training programs, and seek legal advice when necessary. Additionally, staying updated on any changes or amendments to the Act is crucial to maintaining compliance.

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This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 17th April 2024.

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