Nonconstruction
Nonconstruction contractors and subcontractors with 50+ employees and $50,000+ in contracts must develop written affirmative action programs for each establishment within 120 days of contract start.
Overview
FAR 22.804-1 outlines the requirement for nonconstruction prime contractors and subcontractors to develop written affirmative action programs (AAPs) when certain thresholds are met. Specifically, if a contractor or subcontractor has 50 or more employees and holds a contract, subcontract, or government bills of lading totaling $50,000 or more in any 12-month period, they must create an AAP for each establishment. The regulation mandates that these programs be developed within 120 days from the start of the first qualifying contract, subcontract, or bill of lading. Exceptions may apply as specified in FAR 22.807.
Key Rules
- Affirmative Action Program Requirement
- Contractors and subcontractors meeting the employee and contract value thresholds must develop a written AAP for each establishment.
- Thresholds for Applicability
- Applies to entities with 50+ employees and contracts/subcontracts or government bills of lading of $50,000 or more in a 12-month period.
- Timeline for Compliance
- Written AAPs must be developed within 120 days of the commencement of the first qualifying contract or bill of lading.
Responsibilities
- Contracting Officers: Ensure contractors are aware of and comply with AAP requirements.
- Contractors/Subcontractors: Develop and maintain written AAPs for each establishment within the specified timeframe.
- Agencies: Monitor compliance and enforce requirements as needed.
Practical Implications
- This section ensures equal employment opportunity compliance for nonconstruction contractors and subcontractors.
- Contractors must be proactive in tracking employee counts and contract values to determine applicability.
- Failure to develop timely AAPs can result in noncompliance findings, impacting contract eligibility and performance.