U.S. Government Contractor Compliance
This information is being provided to contractors and subcontractors who supply goods or services to Papa John’s International, Inc. and its affiliates and subsidiaries.
Because Papa John’s is an approved federal government contractor, Papa John’s and its affiliates and subsidiaries (including Papa John’s International, Inc., Papa John’s USA, Inc., PJ Food Service, Inc., and Preferred Marketing Solutions, Inc.) are required to comply with certain federal laws and regulations. In addition, we are required to “flow down” certain compliance requirements to providers of products and services used in performance of our government contracts.
If you are a “Subcontractor/Supplier” of products or services used in the performance of our government contracts, you must comply with all applicable requirements. Not all requirements will apply to every Subcontractor/Supplier, and Papa John’s encourages all Subcontractor/Suppliers to consult with legal counsel to determine what specific compliance obligations apply. The principal requirements are summarized below:
- Examination of Records If the annual value of the Agreement exceeds $10,000, Subcontractor/Supplier agrees that the U.S. Government or its authorized representative will have the right to examine and audit the books and records of Subcontractor/Supplier directly pertaining to the Government Contract.
If the annual value of the Agreement exceeds $100,000 or is an indefinite quantity contract estimated to exceed $100,000 in one year, Subcontractor/Supplier stipulates:
- that any facility located inside the United States utilized in the performance of any nonexempt contract or subcontract is not listed on the U.S. Environmental Protection Agency (“EPA”) List of Violating Facilities as of the date of subcontract award;
- that its agreement to comply with all requirements of Section 114 of the Air Act and Section 308 of the Water Act relating to inspection, monitoring, entry, reports, and information, as well as all other requirements specified in sections 114 and 308 of the Air Act and the Water Act, respectively, and all regulations and guidelines issued thereunder;
- that Subcontractor/Supplier shall promptly notify PJFS of the receipt of any communication from the Director, Office of Federal Activities, EPA, or delegate, indicating that a facility to be utilized for the Government Contract is under consideration to be listed on the EPA List of Violating Facilities;
- its agreement to include the criteria and requirements in subparagraphs (a) through (d) in every non-exempt subcontract, and to take such actions the Government may direct as a means of enforcing such provisions.
Restrictions on Purchases of Foreign Goods
- Subcontractor/Supplier will not acquire for use in the performance of this Agreement any merchandise, equipment, supplies or services originating from, processed in, or transported from or through, the countries prohibited from commerce by the U.S. Government. This restriction includes merchandise, equipment, supplies or services from any other country that is restricted by law, regulation or executive order at any time during performance of the Agreement.
- Subcontractor/Supplier agrees to insert the provisions of this clause, including this paragraph, in its subcontracts.
Payment Card Industry (“PCI”) Compliance
- If payment cardholder data is shared with Subcontractor/Supplier under the terms and conditions of this Agreement, Subcontractor/Supplier must adhere to the most current version of the PCI DSS (Data Security Standard) requirements. These requirements are available at https://www.pcisecuritystandards.org.
- Subcontractor/Supplier acknowledges that each contractor, subcontractor, merchant and service provider with access to payment cardholder data is responsible for the security of the cardholder data the provider possesses. Subcontractor/Supplier will also include this clause in any subcontract that provides access to cardholder data.
- EEO and Affirmative Action To the extent applicable, Subcontractor/Supplier agrees to comply with the requirements of the equal opportunity clauses set forth at 41 C.F.R. §§ 60-1.4, 60-250.5, and 60-741.5, and those provisions are incorporated into the Agreement by reference.
- Contract Work Hours and Safety Standards Act To the extent applicable, Subcontractor/Supplier agrees to comply with the Contract Work Hours and Safety Standards Act, 40 U.S.C. 327, applies, and the clauses set forth at 29 C.F.R. § 5.5(b)(1)-(4), and those provisions are incorporated into the Agreement by reference.
Service Contract Act
[NOTE: This applies only to subcontracts for services to be performed under the Government Contract.]
To the extent applicable, Subcontractor/Supplier agrees to comply with the Service Contract Act of 1965, as amended (41 U.S.C. §§ 351, et seq.), and the labor standards clauses set forth at 29 C.F.R. § 4.6, and those provisions are incorporated into the Agreement by reference.
Subcontractor/Supplier will purchase and maintain, at its expense using an insurance company or companies acceptable to PJI, the following insurance and furnish PJI with certificates of insurance, evidencing that required coverage is in effect, no later than 10 days after award of contract and that not less than 30 days prior written notice will be given the PJI in the event of modification, cancellation, or nonrenewal. In the event of any conflict between this clause and any provision in the Subcontractor’s/Supplier’s contract with PJI, the higher insurance requirements will apply.
- Worker’s Compensation and Employer’s Liability Insurance in amounts complying with state or military installation requirements, whichever is greater, where this subcontract is performed.
- Commercial General Liability Insurance with a $1,000,000 limit for each occurrence and a $2,000,000 general aggregate limit. This insurance policy must be written on an “occurrence” basis, not a “claims made” basis.
- Automobile Bodily Injury and Property Damage Liability Insurance for vehicles operated for performance of this subcontract by the Subcontractor/Supplier on the military instillation maintain coverage in amounts complying with state or military installation requirements, whichever is greater, where this subcontract is performed.
Combating Trafficking In Persons
- The U.S. Government and PJI have adopted a zero tolerance policy regarding trafficking in persons. Subcontractor/Suppliers and Subcontractor/Supplier employees shall not engage in severe forms of trafficking in persons, procure commercial sex acts, or use forced labor, all as defined by applicable law, in the performance of the subcontract or during the period of performance of the subcontract.
- Subcontractor/Supplier shall notify its employees of the U.S. Government’s and PJI’s zero tolerance policy and the actions that will be taken against employees for violations of this policy, including but not limited to removal from the subcontract, reduction in benefits, or termination of employment; take appropriate action, up to and including termination, against employees or Subcontractors/Suppliers that violate the policy; and inform the Contracting Officer immediately of any information it receives from any source that alleges a Subcontractor/Supplier employee, Subcontractor, or Subcontractor employee has engaged in conduct that violates this policy, and any actions taken against them pursuant to this clause.
- In addition to other remedies, Subcontractor/Supplier’s failure to comply with the requirements of this clause may result in requiring the Subcontractor/Supplier to remove an employee from performance of the subcontract, termination of the subcontract, suspension of subcontract payments, loss of award fee, or suspension or debarment of the Subcontractor/Supplier.
- The Subcontractor/Supplier shall include the substance of this clause, including this paragraph, in all subcontracts.
- The Contracting Officer may consider whether the Subcontractor/Supplier had a Trafficking in Persons awareness program at the time of the violation as a mitigating factor when determining remedies. Additional information about Trafficking in Persons and examples of awareness programs can be found at the website for the Department of State’s Office to Monitor and Combat Trafficking in Persons at http://www.state.gov/g/tip.
Personal Identity Verification of Certain Contractor Personnel
- This clause is to provide guidance concerning compliance with Homeland Security Presidential Directive (HSPD) 12 and Policy for Common Identification Standard for Contractors and Subcontractors, when contract performance requires routine physical access to a Federally-controlled facility and/or routine access to a Federally-controlled information system. As processes and procedures could change over time, go to http://www.aafes.com/, click on “Doing Business with AAFES,” click on “EXISTING Vendors/Suppliers,” and then click on the “Instructions to Obtain Authorization to Enter Military Installations” for the most up to-date instructions.
- After contract award and prior to performance on any Federal installation, Subcontractor/Supplier shall seek guidance concerning, and comply with, the local installation’s personal identity verification procedures identified by that installation that implement HSPD-12 policy for a Common Identification Standard for Federal Employees and Contractors. These guidelines may vary from one installation to another and it is the Subcontractor/Supplier’s responsibility to seek guidance. If Subcontractor/Supplier or their employees will access sensitive data or go to multiple installations, they must obtain a Common Access Card (CAC) and will be required to submit a clearance package not less than 30 days in advance of needed access and pay any costs associated with the clearance process.
- Subcontractor/Supplier shall insert this clause in all subcontracts when the Subcontractor is required to have routine physical access to a Federally-controlled facility and/or routine access to a federally controlled information system.
- Subcontractor/Supplier is responsible for securing and returning to the issuing office all identification cards issued under these procedures for all employees at the end of the contract and for individual employees no longer employed or no longer assigned to perform the contract or subcontract.