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elaws - employment laws assistance for workers and small businesses - Federal Contractor Compliance Advisor

Does one or both of the following apply to your business or organization:

  • In any 12-month period, I expect the total dollar amount of my business's or organization's Federal contracts or subcontracts (construction and nonconstruction) to exceed $10,000.00.
  • My business or organization holds a single Federal contract or subcontract in excess of $10,000.00 to be performed over a period of more than a year.

When making your decision exclude any federally assisted construction contracts or subcontracts.

SPECIAL NOTE: Holders of contracts and/or subcontracts for indefinite quantities should select “Yes” to the above question if they have reason to believe that the amount to be ordered in any given year under such contracts and/or subcontracts will exceed $10,000.00.

OFCCP regulations implementing Executive Order 11246 (see 41 CFR Sec. 60-1.3) define the term “Government contract” to mean “any agreement or modification thereof between any contracting agency and any person for the purchase, sale or use of personal property or nonpersonal services.” The term “personal property,” as used in this section, includes supplies and contracts for the use of real property (such as lease arrangements), unless the contract for the use of real property itself constitutes real property (such as easements). The term “nonpersonal services,” as used in this section, includes, but is not limited to, the following services: utilities, construction, transportation, research, insurance, and fund depository.

The term “Government contract” does not include:

  1. Agreements in which the parties stand in the relationship of employer and employee; and

  2. Federally assisted construction contracts.

Regulations implementing Section 503 and VEVRAA define the term “Government contract” to mean “any agreement or modification thereof between any contracting agency and any person for the purchase, sale or use of personal property or nonpersonal services (including construction).” The term “Government contract” does not include agreements in which the parties stand in the relationship of employer and employee, and federally assisted contracts. (See 41 CFR Sec. 60-250.2 and 41 CFR Sec. 60-741.2)