Glossary /
 

Federal Contractor(s)

by | Oct 30, 2024

A federal contractor (also known as a government contractor) is a business or organization that enters into a contract with the federal government of the United States to provide goods or services. These contracts can vary widely in scope, including construction projects and supply & service.

VEVRAA Federal Contractor

Federal contractors and subcontractors must comply with equal employment opportunity (EEO) and affirmative action requirements when they meets specific criteria outlined by the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) of 1974, as follows:

  1. Federal Contract or Subcontract: The organization must have a contract or subcontract with the federal government.
  2. Monetary Threshold: The contract or subcontract must be valued at $150,000 or more. Note: This threshold is subject to change, so contractors should stay informed about current regulations.

Responsibilities

  1. Affirmative Action: Federal contractors are required to take affirmative action to employ and advance in employment qualified veterans. This means actively recruiting, hiring, and promoting veterans and ensuring they have equal opportunities in the workplace.
  2. Job Listing: Federal contractors must list all employment openings with the appropriate state workforce agency job bank or with the appropriate local employment service delivery system (ESDS). Exceptions to this requirement include executive and senior management positions, positions that will be filled from within the contractor’s organization, and positions lasting three days or less.
  3. Equal Employment Opportunity Statement: Contracts must include a clause stating that the contractor will not discriminate against protected veterans and will take affirmative action to employ and advance in employment qualified protected veterans.
  4. Annual Reporting: Contractors must submit an annual VETS-4212 report to the Department of Labor’s Veterans’ Employment and Training Service (VETS). This report provides data on the number of protected veterans employed and newly hired during the reporting period.

VEVRAA Federal Contractor Examples

The following are some examples of federal contractors who must comply with VEVRAA regulations:

  • Large corporations with federal contracts exceeding $150,000.
  • Small and medium-sized businesses with specific federal contracts or subcontracts that meet the monetary threshold.
  • Universities and research institutions receiving federal contracts (VEVRAA requirements generally do not cover federal grants).
  • Non-profit organizations with federal contracts.

Compliance & Oversight

The Office of Federal Contract Compliance Programs (OFCCP) within the U.S. Department of Labor is responsible for enforcing VEVRAA. The OFCCP ensures that VEVRAA federal contractors comply with the affirmative action and non-discrimination requirements.

In summary, federal contractors are entities that have contractual relationships with the U.S. federal government to provide goods or services. They are subject to regulations aimed at ensuring fair competition, protecting taxpayer interests, and promoting equal employment opportunities for the workers they employ.