Under CTIP, certification and compliance plan requirements apply to contracts outside the US or services outside the US with value exceeding what amount?

• A. $100,000
• B. $550,000
• C. $1,000,000
• D. $10,000,000

Answer: (B)

The level at which CTIP requires a Certification and Compliance Plan is when the contract value exceeds $550,000. This means that for contracts or services performed outside the United States, if the total value goes over $550,000, you must include a Certification and Compliance Plan as part of your procurement actions. The purpose is to ensure that higher-value, cross-border engagements have formal due diligence, training, and oversight to prevent trafficking in persons in the supply chain.

In practice, the plan covers commitments against trafficking, processes for vetting suppliers and subcontractors, training requirements, monitoring and auditing mechanisms, flow-down obligations, and corrective actions, including termination if trafficking is found. If the value does not exceed $550,000, CTIP’s certification and compliance plan requirement does not apply to that contract, though other anti-trafficking rules may still matter. So for a contract or service performed abroad with a value of $600,000, you would need to prepare and attach the Certification and Compliance Plan.