On August 7, 2023, a proposed amendment to the Federal Acquisition Regulation (FAR) was introduced with the aim of enforcing anti-trafficking reporting requirements on US-flag air carriers. This proposal was put forward by multiple US federal entities, namely the Department of Defense, the General Services Administration, and the National Aeronautics and Space Administration. If approved, this amendment will apply to certain contracts between US-flag air carriers and US federal government agencies for the air transportation of passengers.
According to the proposed amendment, this move is a part of a broader effort by these agencies to mitigate trafficking risks in their operations. Please note, it’s not been disclosed whether these risks pertain to human trafficking, illicit trafficking of goods, or both.
This proposed change to the FAR is expected to have far-reaching implications, impacting air carrier contractors who deal with US federal government agencies. These contractors will now have an added responsibility of meeting stringent reporting requirements, ensuring that their operations do not facilitate or condone any forms of trafficking.
While anti-trafficking measures are, by far, an urgent necessity worldwide, imposing these reporting requirements on air carriers might bring about various administrative and operational challenges. Contractors will be compelled to revamp their compliance programs, reporting structures, and perhaps even their entire operations model to align with the proposed rules.
This development warrants close attention and input from the stakeholders, especially considering the broad implications it might have on the airline industry and government contractors in particular. Moving forward, those in the legal profession engaging with air carrier contractors need to stay informed about this legislative progress and its impact on their clients.