Determining Whether Your Company Is a Federal Contractor
Uncategorized November 7, 2024
Federal contracting offers significant opportunities for businesses, ranging from small enterprises to large corporations. Engaging with the federal government can provide a steady revenue stream, enhanced credibility, and access to a wide range of projects. However, the process can be complex, requiring a clear understanding of regulations, compliance, and competitive dynamics. This article explores the essentials of becoming a federal contractor and navigating the landscape effectively.
The following are four critical initial questions to ask if your company is currently a federal contractor:
- Does the company have the requisite type of federal contract?
- Does the contract meet the minimum jurisdiction dollar amount?
- Does the company employ more than 50 employees at a single physical location?
- Is the company a financial institution issuing U.S. savings bonds, FDIC or NCUA covered?
If the company doesn’t meet the above, it still may be held to affirmative action requirements and, ultimately, Office of Federal Contract Compliance Programs (OFCCP) jurisdiction. Two more common scenarios are subcontracting and being part of a single entity. For assistance in determining if this applies, just reach out, we are a phone call away!
Federal contractors or sub-contractors are subject to complying with the following Affirmative Action requirements, which are covered by Executive Order 11246, Section 503, and/or VEVRRA.
- Affirmative action plans (AAPs) (i.e., typically must prepare one for each company location that has more than 50 employees)
- Detailed recordkeeping (i.e., tracking the race, sex, protected vets, and disabled status of all employees and applicants and detailed statistical analysis on compensation, terminations, hires, & promotions)
- Posting and notice requirements (i.e., mandatory notices for employees, applicants, and third-party vendors)
- Submission to audits (i.e., providing the requested information within the 30-day time frame)
AIM HR Solutions and our partners at MRA are here to help!
For assistance understanding your obligations, preparing your affirmative action plans, offering training, implementing programs that comply with OFCCP requirements, or preparing for responding to an OFCCP audit, please contact HRinfo@aimhrsolutions.com or call 617-488-8321.