Whether a state DOT is required to comply with VEVRAA and Section 503 depends on the nature of its contract with an agency of the federal government. If the state DOT has a direct federal contract, and the amount of the contract is above the dollar threshold, then the state DOT's contract likely would contain Section 503 and VEVRAA compliance obligations. Many state DOTs have federal financial assistance agreements, however, not direct contracts, with a federal agency. Federal financial assistance agreements do not impose Section 503 or VEVRAA obligations on the contractor. The dollar thresholds are $10K for nondiscrimination obligations under Section 503, $50K for affirmative action plan obligations under Section 503, and $150K for both nondiscrimination and affirmative action obligations under VEVRAA.
