22.807
Exemptions
FAR 22.807 provides specific exemptions to E.O. 11246, allowing certain contracts or contractors to be excluded from equal opportunity requirements under defined circumstances, but requires careful documentation and approval for most exemptions.
Overview
FAR 22.807 outlines specific exemptions to the requirements of Executive Order (E.O.) 11246, which mandates equal employment opportunity in federal contracting. This section details circumstances under which contracts or contractors may be partially or wholly exempt from E.O. 11246, including national security, certain contract types, work locations, contract values, and specific entities such as religious organizations or state/local governments. It also establishes procedures for requesting exemptions and conditions under which exemptions may be withdrawn.
Key Rules
- National Security Exemption
- Agency heads may exempt contracts from E.O. 11246 if compliance would compromise national security, with notification to the Deputy Assistant Secretary required within 30 days.
- Special Circumstances Exemption
- The Deputy Assistant Secretary can exempt specific contracts or groups of contracts for national interest reasons or administrative convenience.
- Automatic Exemptions
- Contracts under $10,000 (unless aggregate exceeds $10,000 in 12 months), work performed outside the U.S. by non-U.S.-recruited employees, certain state/local government contracts, Indian employment preferences near reservations, and certain facilities or religious entities may be exempt.
- Indefinite-Quantity Contracts
- Equal Opportunity clause applies if annual orders are expected to exceed $10,000; once applicable, it remains for the contract duration.
- Exemption Requests and Withdrawals
- Contracting officers must submit detailed justifications for exemptions; the Deputy Assistant Secretary may withdraw exemptions under specified conditions.
Responsibilities
- Contracting Officers: Identify and process exemption requests, ensure proper documentation, and monitor applicability of Equal Opportunity clauses.
- Contractors: Understand which exemptions may apply and maintain compliance with E.O. 11246 where required.
- Agencies: Notify and coordinate with the Deputy Assistant Secretary, maintain oversight, and ensure proper application of exemptions.
Practical Implications
- This section clarifies when E.O. 11246 requirements do not apply, helping contractors and agencies avoid unnecessary compliance burdens.
- It is critical for contracting professionals to assess contract value, type, and performance location to determine applicability.
- Failure to properly apply or document exemptions can result in compliance violations or contract disputes.