Overview
This section outlines the requirements for federal contractors and subcontractors to develop and implement affirmative action programs (AAPs) to ensure equal employment opportunity. The regulations distinguish between nonconstruction and construction contracts, applying specific dollar thresholds and employee counts to determine compliance obligations.
Key Rules
- Nonconstruction Thresholds: A written affirmative action program is required for any nonconstruction prime or subcontractor that has 50 or more employees and a contract of $50,000 or more (or Government bills of lading totaling $50,000 in a 12-month period).
- Nonconstruction Timeline: Eligible contractors must develop their written AAPs within 120 days of commencing their first qualifying government contract or subcontract.
- Construction Requirements: Construction contractors must comply with affirmative action goals for minorities and women in specific trades based on the geographical area where the work is performed, as well as requirements under 41 CFR 60-1 and 60-4.
- Contracting Officer (CO) Duties for Construction: COs must notify the Office of Federal Contract Compliance Programs (OFCCP) within 10 working days of awarding a covered construction contract and must request instructions from the OFCCP for projects exceeding $10,000 in areas with unknown goals.
- Establishment-Based Planning: For nonconstruction, a written AAP must be developed for each of the contractor’s establishments.
Practical Implications
- Compliance Tracking: Contractors must closely monitor their employee headcount and cumulative contract values to ensure they do not miss the 120-day window for establishing a formal AAP once the $50,000/50-employee threshold is met.
- Geographic Sensitivity: Construction firms must tailor their hiring and recruitment efforts to the specific minority and female participation goals of the local "covered geographical area" rather than applying a single corporate-wide standard.