Overview
FAR 22.805 establishes the administrative procedures for ensuring contractor compliance with Equal Employment Opportunity (EEO) regulations, primarily through mandatory preaward clearances for high-value contracts. It defines the coordination process between contracting agencies and the Office of Federal Contract Compliance Programs (OFCCP) to verify that prospective contractors meet E.O. 11246 requirements.
Key Rules
- Threshold for Clearance: Preaward clearance is mandatory for all non-construction contracts and first-tier subcontracts estimated at $10 million or more.
- Applicable Actions: The requirement applies to new contracts, indefinite-delivery contracts, letter contracts, and modifications for "new effort" that effectively constitute a new award.
- The Registry Exception: Contracting officers (COs) do not need to request clearance if the contractor is listed in the OFCCP’s National Preaward Registry and the award date is within 24 months of the listed compliance date.
- Timeline for Review: COs should submit clearance requests at least 30 days before the proposed award date. OFCCP has 15 days to signal an intent to evaluate and an additional 20 days to provide conclusions; failure to meet these deadlines results in "presumed clearance."
- Urgent and Critical Needs: If a delay would jeopardize an urgent requirement, the Head of the Contracting Activity (HCA) can approve the award without preaward clearance, provided a postaward evaluation is immediately requested.
- Poster Requirement: Regardless of contract value, the CO is responsible for furnishing the contractor with "Equal Employment Opportunity Is The Law" posters.
Practical Implications
- Acquisition Planning: Acquisition timelines for large-scale requirements must account for the 30-day OFCCP review window to avoid late awards or the need for high-level HCA justifications.
- Due Diligence: Contractors and first-tier subcontractors should proactively monitor their status in the National Preaward Registry to minimize administrative delays during the final stages of the source selection process.