Overview
This section mandates that contracting officers promptly implement sanctions directed by the Department of Labor (DOL) when a contractor fails to comply with equal opportunity requirements for veterans.
Key Rules
- Mandatory Enforcement: The contracting officer is required to take action "as soon as possible" once notified by the appropriate agency official of a violation.
- Triggering Clause: These actions apply specifically to violations of FAR clause 52.222-35, Equal Opportunity for Veterans.
- Authorized Sanctions: Under 41 CFR 60-300.66, enforcement actions may include:
- Withholding of progress payments.
- Termination or suspension of the contract.
- Debarment of the contractor from future government work.
Practical Implications
- Contractors face severe financial and operational risks—including the total loss of current revenue and future eligibility—if they fail to adhere to veteran employment compliance standards.
- While the Department of Labor typically conducts the compliance reviews and determines the penalties, the Contracting Officer serves as the primary enforcement arm to execute those penalties against the specific contract.