Source: http://www.benchmarkoutsourcing.com/who-needs-an-aap/
Timestamp: 2017-08-21 04:38:53
Document Index: 660668944

Matched Legal Cases: ['art_60', 'art_60', 'art_60', 'art_60', 'art_60', 'art 60']

Who Needs an AAP - Benchmark Outsourcing
Who Needs An AAP – FAQ
All contractors and subcontractors who hold a Federal or federally-assisted construction contract in excess of $10,000 will be subject to regulatory requirements under one or more of the laws enforced by OFCCP depending upon the amount of the contract. Once it has been determined that a contractor or subcontractor is subject to OFCCP jurisdiction, the regulations implementing the civil rights requirements enforced by OFCCP apply to all of the contractor’s or subcontractor’s employees who are engaged in on site construction, including those construction employees who work on a non-Federal or non-federally assisted construction site.
In addition, some businesses or organizations that do not independently hold Government contracts/subcontracts may still be covered under the laws enforced by OFCCP if they are considered a “single entity” with a related business or organization that holds such contracts. In such instances, OFCCP uses a “single entity” test to determine whether the businesses or organizations are so closely related that they may constitute a single entity for purposes of OFCCP jurisdiction. The test requires OFCCP to consider whether:
One entity has de facto day-to-day control over the other through policies, management or supervision of the entity’s operations;
Our business operates as a fund depository, and an issuing and paying agent for U.S. Saving Bonds and savings notes; therefore, are we required to comply with the Affirmative Actions Program (AAP) obligations under Executive Order (E.O.) 11246, as amended, the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA), as amended, 38 U.S.C. 4212 and Section 503 of the Rehabilitation Act of 1973 (Section 503), as amended?
Under Section 503, a Government contractor with 50 or more employees and a Government contract of $50,000 or more must develop a Section 503 affirmative action program. 41 CFR 60-741.40(a). The Section 503 regulations define a Government contract as “any agreement or modification thereof between any contracting agency and any person for the purchase, sale or use of personal property or nonpersonal services.” 41 CFR 60-741.2(i). The term “nonpersonal services” as used in this section includes fund depository. 41 CFR 60-741.2(i)(4). Thus, the agreement to serve as a Federal funds depository is a “Government contract.” To view the regulation, click on http://www.dol.gov/dol/allcfr/ESA/Title_41/Part_60-741/41CFR60-741.2.htm.
The same holds true under VEVRAA as under Section 503 for any Government contractor with 50 or more employees and a contract of $50,000 or more to serve as a depository of Federal funds or as an issuing and paying agent for savings bonds and notes, if the Government contract was entered into before December 1, 2003. To view the regulation, click on http://www.dol.gov/dol/allcfr/ESA/Title_41/Part_60-250/41CFR60-250.40.htm.
For your additional information, there is an interactive electronic tool called the Federal Contract Compliance Advisor, also referred to as Elaws Advisor, to assist Federal contractors and subcontractors in understanding basic coverage and the requirements for compliance with the laws administered by OFCCP. This electronic tool can be accessed at http://www.dol.gov/elaws/ofccp.htm. You may wish to consult the Elaws Advisor if you have additional questions about coverage.”
Is a hospital or other health care provider covered under the laws enforced by OFCCP as a result of the reimbursements it receives for medical services provided to Federal employees, retirees, or their dependents from a health insurance carrier that participates in the Federal Employee Health Benefits Program (FEHB)?
Is a financial institution that is covered by the Federal Deposit Insurance Corporation (FDIC) for insurance coverage subject to the Affirmative Actions Program (AAP) requirements under Executive Order 11246, as amended, the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA), as amended, 38 U.S.C. 4212 and Section 503 of the Rehabilitation Act of 1973 (Section 503), as amended?
Financial institutions with federal share and deposit insurance are considered to be government contractors within the meaning of the regulations implementing Executive Order 11246, as amended, the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA), as amended, 38 U.S.C. 4212 and Section 503 of the Rehabilitation Act of 1973 (Section 503), as amended. These three programs enforced by the OFCCP require equal employment opportunity by government contractors.
The implementing regulations for Executive Order 11246 (41 CFR 60-1.3), have consistently defined a government contract as 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 “nonpersonal services” as used in this section includes, but is not limited to, the following services: utilities, construction, transportation, research, insurance, and fund depository. This definition explicitly includes agreements for insurance. To review the definition, click on http://www.dol.gov/dol/allcfr/ESA/Title_41/Part_60-1/41CFR60-1.3.htm.
The implementing regulations for the VEVRAA and Section 503 programs, found at 41 CFR 60-250.2 ( http://www.dol.gov/dol/allcfr/ESA/Title_41/Part_60-250/41CFR60-250.2.htm ) and 60-741.2 ( http://www.dol.gov/dol/allcfr/ESA/Title_41/Part_60-741/41CFR60-741.2.htm) respectively, also define a government contract as 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 “nonpersonal services” as used in this section includes, but is not limited to, the following services: utilities, construction, transportation, research, insurance, and fund depository. This definition also explicitly includes agreements for insurance. Therefore, financial institutions with federal share and deposit insurance are considered to be government contractors.
The purpose and application section of the 1980 final rule (Sec. 60-250.1) states that Part 60-250 applies to all Government contracts, “including Federal deposit and share insurance.” The preamble to the 1980 final rule (45 FR 86218) states that OFCCP believes that Federal deposit and share insurance are contracts within the meaning of Section 4212. In the course of preparing its 1996 final rule implementing Section 503, OFCCP conducted a careful and detailed reevaluation of its position in light of changes in some of the statutes affecting the financial industry. Based upon that review, OFCCP continues to believe in the soundness of its position. However, today’s proposal differs from the 1980 final rule in that it does not expressly state that the regulations cover Federal deposit and share insurance. The proposal does not otherwise make reference to the precise subject matter of particular types of covered contracts, and therefore OFCCP no longer considers it necessary to single out deposit and share insurance for express mention in the regulations. OFCCP wishes to reemphasize that it will continue to maintain its long-standing policy of imposing sanctions other than debarment of financial institutions from future deposit or share insurance, or cancellation, termination or suspension of a financial institution’s deposit or share insurance for violations of Section 4212.