Affirmative Action and OFCCP
$50K
Threshold
Federal contract value
50
Employees
AAP requirement
3
AAP Plans
EO 11246 + VEVRAA + Section 503
contract size triggers more obligations
The Contract-Value Pyramid
As contract value rises, more AAP obligations stack on top. Each tier inherits everything below it. A $200K contract carries every obligation in the stack.
how to read this
- › Tiers stack — a $200K contract carries every obligation from tiers 1-4.
- › Below $10K: no AAP obligation under federal contracting rules.
- › Tiers are per contract, not annual revenue. A large multi-year contract triggers all four obligations even if annual run-rate is small.
the most-tested distinction
Goals vs Quotas
The exam offers both as plausible answers. One is required by AAP. The other is unlawful. Tell them apart by SHAPE — goals widen the pipeline, quotas narrow the hire.
Goals
required- › Aspirational TARGETS for outreach
- › Compare workforce to availability
- › Hiring still based on qualifications
Quotas
unlawful- › HIRE-rate mandates regardless of fit
- › Rejected by Supreme Court (Bakke, etc.)
- › Treats race or sex as the deciding factor
OFCCP — The Enforcer
The Office of Federal Contract Compliance Programs runs compliance reviews (audits) of federal contractors. Penalties are leveraged through the contract itself — not federal court.
Compliance Review
On-site or desk audit of AAP and outreach
Conciliation
Negotiated resolution if violations found
Debarment
Suspension or termination from future contracts
Exam Traps
AAP applies ONLY to federal contractors
Private employers without federal contracts have no AAP obligation under federal law. The exam tests this scope.
AAP goals are NOT quotas
Goals are aspirational targets for outreach. Quotas are unlawful under OFCCP regulations and Supreme Court precedent.
$50K is per CONTRACT value, not annual
A large multi-year contract triggers obligations. The exam tests this nuance.
Voluntary AA must comply with Title VII
Voluntary affirmative action by non-contractors must follow Weber, Johnson Supreme Court precedent. Cannot displace majority workers.
Goals not quotas
Goals are aspirational targets for outreach. Quotas would be unlawful. The exam loves this distinction.
Federal contractors only
AAP obligation only attaches when there is a federal contract. Private non-contractors have no federal AAP duty.
Now you must follow EO 11246, VEVRAA, and Section 503. Three separate AAP requirements stack.
Analyze workforce by category. Compare to availability in the labor market. Identify gaps. Set outreach goals.
"We hope to hire X% more women in this job group." Outreach to widen the pipeline. NOT a hiring guarantee.
"We will hire X% women regardless of qualifications." Supreme Court has repeatedly rejected this.
Compliance review = audit. Failure can lead to suspension or debarment from future federal contracts.
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