Friday, March 29, 2013

Federal Acquisition Regulations (FAR) for Preaward Affirmative Action Program Clearance

According to Federal Acquisition Regulations (subpart 22.805; copy directly below), a preaward AAP clearance is required for companies entering into service and supply contracts with the federal government in amounts exceeding 10 million dollars. In these contract negotiations, contracting officers are required to ensure AAP clearance and the contracting officer will ask contractors to disclose whether or not they have written affirmative action programs and if they have undergone a compliance review of the AAP in the preceding 24 months.  If they haven’t been reviewed in the preceding 24 months then the contracting officer requests a review by the OFCCP prior to completing a contract. The contracting officer however need not request clearance from the OFCCP if the company has undergone a successful compliance review in the preceding 2 years (22.805 (a)(4)).  

Federal Acquisition Regulations (22.805):
22.805 Procedures.
(a) Preaward clearances for contracts and subcontracts of $10 million or more (excluding construction).

(1) Except as provided in paragraphs (a)(4) and (a)(8) of this section, if the estimated amount of the contract or subcontract is $10 million or more, the contracting officer shall request clearance from the appropriate OFCCP regional office before—
(i) Award of any contract, including any indefinite delivery contract or letter contract; or
(ii) Modification of an existing contract for new effort that would constitute a contract award.

(2) Preaward clearance for each proposed contract and for each proposed first-tier subcontract of $10 million or more shall be requested by the contracting officer directly from the OFCCP regional office(s). Verbal requests shall be confirmed by letter or facsimile transmission.

(3) When the contract work is to be performed outside the United States with employees recruited within the United States, the contracting officer shall send the request for a preaward clearance to the OFCCP regional office serving the area where the proposed contractor’s corporate home or branch office is located in the United States, or the corporate location where personnel recruiting is handled, if different from the contractor’s corporate home or branch office. If the proposed contractor has no corporate office or location within the United States, the preaward clearance request action should be based on the location of the recruiting and training agency in the United States.

(4) The contracting officer does not need to request a preaward clearance if—
(i) The specific proposed contractor is listed in OFCCP’s National Preaward Registry via the Internet at;
(ii) The projected award date is within 24 months of the proposed contractor’s Notice of Compliance completion date in the Registry; and
(iii) The contracting officer documents the Registry review in the contract file.

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