Affirmative Action Compliance Requirements for Construction
FAR 52.222-27 requires construction contractors on federal projects to implement and document robust affirmative action steps to ensure equal employment opportunity for minorities and women, with strict recordkeeping and subcontract flow-down obligations.
Overview
FAR 52.222-27 sets forth affirmative action compliance requirements for contractors and subcontractors performing construction work on federal contracts. The clause mandates specific actions to ensure equal employment opportunity for minorities and women, including the implementation of detailed affirmative action steps, recordkeeping, and reporting. It applies to all construction subcontracts over $10,000 and requires inclusion of the clause and notice of participation goals in each applicable subcontract. Contractors must make good-faith efforts to meet participation goals, regardless of union practices or collective bargaining agreements, and cannot use these as excuses for noncompliance. The regulation also requires contractors to designate a responsible official for monitoring, reporting, and recordkeeping related to affirmative action efforts.
Key Rules
- Inclusion in Subcontracts
- All construction subcontracts exceeding $10,000 must include this clause and the notice of participation goals.
- Affirmative Action Steps
- Contractors must implement at least 16 specific affirmative action steps, such as maintaining recruitment lists, notifying minority and female organizations of job opportunities, and ensuring a harassment-free workplace.
- Recordkeeping and Reporting
- Contractors must keep detailed records on employment activity and submit reports as required by the government.
- Good-Faith Efforts
- Contractors are evaluated on their efforts to achieve participation goals, not just results, and must make uniform progress in each trade.
- No Discrimination or Retaliation
- Goals and affirmative action standards cannot be used to discriminate against any individual.
- Sanctions for Noncompliance
- Failure to comply may result in sanctions, including suspension or termination of subcontracts.
Responsibilities
- Contracting Officers: Ensure inclusion of the clause in solicitations and contracts, monitor compliance, and enforce sanctions if necessary.
- Contractors: Implement affirmative action steps, maintain records, submit reports, and ensure all subcontracts over $10,000 include the clause.
- Agencies: Oversee contractor compliance and take enforcement actions as needed.
Practical Implications
- This clause exists to promote equal opportunity in federal construction contracting and to ensure contractors take proactive steps to recruit, hire, and retain minorities and women. It impacts daily HR, recruitment, and subcontracting practices, and failure to comply can result in serious penalties. Common pitfalls include inadequate documentation, failure to notify recruitment sources, or not making good-faith efforts toward participation goals.