Overview
FAR Subpart 22.13 implements federal policies requiring government contractors and subcontractors to take affirmative action to employ and advance "protected veterans" and prohibit discrimination against them. It establishes a mandatory reporting framework (VETS-4212) and recruitment requirements for contracts valued at $200,000 or more to ensure equal opportunity within the federal marketplace.
Key Rules
- Applicability Threshold: The regulations apply to all contracts and subcontracts for personal property and non-personal services (including construction) valued at $200,000 or more.
- Mandatory Job Listings: Contractors must list all employment openings with the appropriate state or local employment service delivery system, except for executive/senior management, internal promotions, and temporary positions (3 days or less).
- VETS-4212 Reporting: Contractors must file an annual Federal Contractor Veterans’ Employment Report (VETS-4212). Contracting Officers (COs) are prohibited from obligating funds or entering into contracts with entities that have failed to submit this report for the preceding fiscal year.
- Protected Veteran Categories: The rules specifically protect four categories:
- Disabled veterans.
- Recently separated veterans (within three years of discharge).
- Active duty wartime or campaign badge veterans.
- Armed Forces service medal veterans.
- Affirmative Action & Benchmarks: Contractors must undertake outreach, recruitment, and establish annual hiring benchmarks for protected veterans as prescribed by the Secretary of Labor.
- Noncompliance Sanctions: Violations can lead to the withholding of progress payments, contract termination, or debarment.
Responsibilities
- Contracting Officers (COs):
- Verify a contractor’s VETS-4212 compliance via the Department of Labor (DOL) database before awarding a contract.
- Insert required clauses (52.222-35, 52.222-37, and 52.222-38) into solicitations and contracts.
- Forward any complaints regarding veteran discrimination to the DOL.
- Provide contractors with the necessary posters/notices for their workplace.
- Implement sanctions (termination/debarment) if notified of violations by the DOL.
- Contractors and Subcontractors:
- Submit annual VETS-4212 reports.
- Post job openings with state employment services.
- Maintain affirmative action programs and outreach records.
- Communicate with labor unions regarding any necessary revisions to collective bargaining agreements to remain compliant.
- Department of Labor (DOL):
- Maintain the VETS-4212 database.
- Investigate complaints and grant waivers when in the national interest.
- Agency Head:
- May waive requirements if the contract is essential to national security.
Practical Implications
- "Go/No-Go" for Awards: A contractor’s failure to file the VETS-4212 report acts as a functional "blackball" for new awards. Even if a contractor is the best technical and price value, a CO cannot legally obligate funds if the report is missing from the database.
- Operational Burden on HR: Contractors must integrate their recruitment systems with local employment service delivery systems. They must also track specific veteran status data during the hiring process to meet the annual reporting and benchmarking requirements.
- Commercial Item Nuance: While the VETS-4212 filing is generally required for awards over $200k, the specific prohibition on obligating funds to non-compliant contractors does not apply to contracts for commercial products, commercial services, or awards below the Simplified Acquisition Threshold (SAT).
- Subcontractor Flow-down: Prime contractors must ensure their subcontractors (at the $200k+ level) are also compliant, as the "Act" applies throughout the supply chain, and non-compliance by a major sub could jeopardize project execution.