Federal Contract Requirements For Affirmative Action

Three federal laws require certain employers that do business with the federal government to implement Affirmative Action Plans (AAPs): Executive Order 11246, the Vietnam Era Veterans' Readjustment Assistance Act, and the Rehabilitation Act. Specifically, under these laws, federal contractors and subcontractors that employ 50 or more employees and enter into a least one contract of $50,000 or more with the federal government must prepare and maintain a written affirmative action program for the recruitment, hiring and promotion of women, minorities, disabled individuals, and protected veterans. (See 41 C.F.R. 60-1.40, 60-250.40, 60-741.40)

In addition, any federal contractor that serves as a depository of government funds in any amount or that is a financial institution which is an issuing and paying agent for U.S. Savings bonds and savings notes in any amount must develop and maintain written affirmative action plans. (See 41 C.F.R. 60-1.40)

An affirmative action plan must be developed with 120 days from the commencement of the covered contract and must be updated annually. (See 41 C.F.R. 60-2.1 (c).) The plan generally should include the following:

1. An organizational profile (that generally may be based on the contractor's organizational chart).
2. A job group analysis that compares jobs with similar content, wage rates and opportunities.
3. An analysis of the placement of incumbents (current employees) in job groups, stating the percentage of minorities and women in each job group.
4. A determination of availability of qualified minorities or women in the area available for employment in a given job group.
5. A comparison of incumbents (current employees) to available qualified minorities and women.
6. Placement goals for particular job groups.
7. A designated person responsible for the implementation of the program.
8. In-depth analysis of the problem area in the contractor's employment process.
9. Action-oriented programs to correct any problem areas identified and to attain established goals and objectives.
10. An internal audit reporting system that periodically measures the effectiveness of the affirmative action plan. (See, e.g., 41 C.F.R. 60-2.10 to 60-2.17.)

For more information on this issue, contact a your nearest NC PTAC counselor at 800.258.0862 or review our counselor listing. The above information came from the Personnel Policy Service Incorporated.

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