Individuals or firms who enter into a contract with any government department or agency to perform a specified task, provide labor and materials, or sell goods and services are known as federal contractors. A federal subcontractor is a business that works with another business that has direct government contracts.
Both federal contractors and subcontractors take on certain responsibilities while doing business with the federal government. Discrimination based on sex, race, color, national origin, religion, disability, or veteran status is prohibited under the law. Affirmative action is required when hiring people from historically discriminated-against groups or minority-owned enterprises.