Federal Construction Contract vs. Federally Assisted Construction Contracts

Two Types of Government Construction Contracts

A direct federal construction contract is an agreement, or a change in an existing agreement entered by a contractor directly with the federal government. The contract is made with one of the government’s agencies for the purchase, sale, or use of personal property or construction services.

A federally-assisted construction contract on the other hand, is an agreement, or a change in an existing agreement, paid for in whole or partially with funds provided by the federal government, but where the government has no involvement in the construction contract. A federally-assisted construction project can be funded through a federal grant, loan, insurance, or guarantee, among others.

OFCCP Enforced Laws on Federal Construction Contracts and Federally Assisted Construction Contracts

The Office of Federal Contract Compliance Programs (OFCCP) requires compliance on the following laws, from federal construction contractors and federally assisted construction contractors:

Executive Order 11246 (applies to both) – Nondiscrimination obligations of government contractors

Section 503 of the Rehabilitation Act of 1973 (applies only to federal construction contractors) – Nondiscrimination obligation of government contractors to individuals with disabilities. It requires employers to take affirmative steps to recruit, hire, promote, and retain these individuals.

Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (applies only to federal construction contractors) – Nondiscrimination obligation of government contractors to protected veterans. It requires employers to take affirmative steps to recruit, hire, promote, and retain these individuals.

Executive Order 11246 Paperwork Requirements for Federal Construction Contractors and Federally Assisted Construction Contractors

Under EO 11246, each contractor is mandated to maintain personnel and employment records for one to two years, depending on the size of the contract and the contractor. For contractors involved in government contracting that have less than 150 prevailing wage workers, or do not have a government contract of at least $150,000, the minimum period for which records shall be kept will be one year from the date the record of personnel was made. Otherwise, personnel or employment records must be kept and maintained for at least two years from the date the record was made.

Personnel or employment records may include the following, but not limited to:

(a)  records on the following: hiring, assignment, promotion, demotion, transfer, layoff, and termination;

(b)  rates of pay and other terms of compensation and benefits;

(c)  selection for training or apprenticeship;

(d)  other records such as, physical examination results, job advertisements, applications, resumes, etc.

From these records, based on the information that they contain, the government contractor must be able to identify the following: gender, race, and ethnicity of each prevailing wage employee and applicant (if possible).

ARCHER JORDAN Works with Prevailing Wage Contractors!

ARCHER JORDAN is a third party administrator that has been helping government contractors comply with federal and state laws for decades. Work with us and we will guide you through the overwhelming, and sometimes confusing, world of government contracting.

By partnering with ARCHER JORDAN, you can focus your time and energy to what truly matters: your construction project.

5-Easy Steps to Fringe Benefit Compliance

In this FREE guide we’ll show you how to create a fringe benefit plan that secures your business

   
           
   

Categories