Overview
Subpart 22.14 implements Section 503 of the Rehabilitation Act of 1973, requiring federal contractors and subcontractors to take affirmative action to employ and advance qualified individuals with disabilities. It establishes the policy that government business should be conducted without discrimination based on physical or mental disability while promoting proactive recruitment and utilization goals.
Key Rules
- Threshold for Applicability: These regulations apply to all Government contracts and subcontracts for supplies and services (including construction) exceeding $20,000.
- Affirmative Action Requirements: Contractors must not only avoid discrimination but also engage in "affirmative action," which includes proactive outreach and recruitment activities designed to reach individuals with disabilities.
- Utilization Goals: Contractors are required to perform an annual comparison of their workforce against utilization goals prescribed by the Secretary of Labor.
- Mandatory Clause: FAR clause 52.222-36, Equal Opportunity for Workers with Disabilities, must be included in all qualifying solicitations and contracts.
- Geographic Exception: Requirements do not apply to work performed entirely outside the United States, Puerto Rico, and other specified U.S. territories.
- Sanctions for Noncompliance: Failure to comply can result in severe penalties, including withholding of payments, contract termination, or debarment from future government work.
Responsibilities
- Contracting Officer (CO):
- Ensures FAR clause 52.222-36 (or its Alternate I) is inserted into applicable contracts.
- Provides contractors with required Department of Labor (DOL) notices/posters.
- Forwards any complaints regarding the Act to the OFCCP.
- Notifies labor unions if contract performance may impact collective bargaining agreements.
- Executes sanctions (termination, payment withholding) upon notification from the DOL.
- Director of the Office of Federal Contract Compliance Programs (OFCCP):
- Grants waivers for specific contracts or categories of contracts based on national interest.
- Investigates complaints and develops case records.
- Sets workforce utilization goals.
- Agency Head:
- Authorized to waive requirements if the contract is deemed essential to national security.
- Contractors/Subcontractors:
- Must implement affirmative action programs and conduct annual workforce self-assessments.
- Must post DOL-provided notices in conspicuous places for employees and applicants.
Practical Implications
- Compliance Burden for Small Contracts: Because the threshold is only $20,000, many small businesses that fall below the Simplified Acquisition Threshold (SAT) are still subject to these affirmative action and record-keeping requirements.
- Documentation is Key: In the event of an OFCCP audit, contractors must be able to demonstrate "positive recruitment" efforts. Merely being "open to" hiring individuals with disabilities is insufficient; the contractor must show active outreach.
- Labor Relations Sensitivity: If implementing affirmative action requires changing work rules or seniority systems governed by a union, the CO must notify the union, but the FAR strictly prohibits the CO from participating in the actual collective bargaining discussions.
- Integration with HR Systems: Contractors need to ensure their applicant tracking systems and HR workflows allow for the voluntary self-identification of disability status to meet the annual utilization comparison requirements.