If you have a direct federal contract valued at $100,000, using the jurisdictional thresholds established under the three regulations that apply, you are required to develop a written Affirmative Action Program (AAP) under Section 503 (the contract threshold is $50,000) but not for VEVRAA (the threshold is $150,000). Under Executive Order 11246, where the threshold for construction contractors is $10,000, you have affirmative action obligations as well; however, unlike federal supply and service contractors, federal construction contractors are not required to develop written AAPs under Executive Order 11246. To comply with Executive Order 11246, federal construction contractors must make good faith efforts to meet the participation goals for minorities and women by taking the 16 affirmative action steps, or what OFCCP refers to as “16 Specifications.” These specifications cover: a) Recruitment Practices, b) Training, c) Equal Employment Opportunity Policy and Implementation, d) Personnel Operations, and e) Contracting Activity. You can find more information about this in pages 21-31 of OFCCP’s Construction Contractors Technical Assistance Guide. With respect to your question on whether or not the AAP or 16 Specifications should only cover the entity that holds the federal government contract, unfortunately, coverage under the regulations may apply to all the legal entities, including those establishments other than the one where the contract is being performed, with the exclusion of entities which are independently operated corporate affiliates. Your entire corporate structure, along with your parent company, and all of its subsidiaries, might fall under OFCCP’s jurisdiction under what is known as the “Single Entity Rule.” To determine whether OFCCP would treat your company as a single entity, the agency uses the following five-factor test: 1. Do the entities have common ownership? 2. Do the entities share common directors and/or officers? 3. Does one entity have de facto day-to-day control over the other through policies, management or supervision of operations? 4. Do the entities’ personnel policies emanate from a common or centralized source? 5. Are the entities’ operations dependent on each other? (e.g. 1 entity principally providing services for the other and/or the entities share management, offices, or services)? Keep in mind that you do not have to satisfy all five factors to be considered a single entity, especially if you exercise centralized control over labor relations, personnel functions, and implementation of personnel policies. OFCCP has developed a useful online tool that walks you through this test.

You can use this OFCCP audit checklist to ensure you're doing what is required to maintain OFCCP's regulations including VEVRAA, Section 503, and EO 11246. Or request a demo to streamline your compliance and recruiting efforts.