However, I ran across an article in the April 2010 issue of HR Magazine, written by Alissa Horvitz and Joshua Roffman, called A High Bar in which they detail several other compliance areas that may cause problems and cost money for businesses which desire to be contractors. As most of you know Federal Contracts are controlled by the Office of Federal Contract Compliance Programs (OFCCP) (almost looks Soviet doesn't it?) and there are several requirements that include:
- Understanding prevailing wage issues and doing proper trainning
- Having your computer and accounting systems set up to track required OFCCP fields
- Making sure applicant data is being recorded
- Instituting the Drug-Free Workplace Act requirements
- Having a statement of non-discrimination or a full Affirmative Action Plan if needed. An AAP is necessary if you have 50 employees and a contract greater than $50,000.
- Tracking subcontracts awarded to enterprises owned by women, minorities, veterans and people with disabilities
- Making sure that all jobs filled externally are posted with the appropriate state and local unemployment offices
- Necessary use of the E-verify system for background checks
- Posting required notices about rights under the National Labor Relations Act (due out later in 2010.)
Because of the size of contracts, and the way the law is written, often the requirements for compliance are either not clearly articulated or are buried deep in contract language. Either way ignorance of the law is no excuse.
Contracts with the Federal government can be lucrative, however, there are many obligations that go with being a Federal contractor and they should not be pursued or entered into lightly.