Supply & Service Contractor Compliance

Executive Order 11246 (41 CFR 60-2)

A contractor or subcontractor that provides supplies or services to the federal government is required to develop a written Affirmative Action Program (AAP) for minorities and women for each establishment within 120 days from the start of the federal contract if it:

•Has 50 or more employees

•Has a federal contract or subcontract of $50,000 or more; 

•Has government bills of lading which in any 12-month period total, or can reasonably be expected to total, $50,000 or more; 

•Serves as a depository of federal funds in any amount; or 

•Is a financial institution that is an issuing and paying agent for U.S. savings bonds and savings notes in any amount.


Section 503 of the Rehabilitation Act of 1973 (41 CFR 60-741)

A Supply & Service contractor or subcontractor must prepare an AAP covering persons with disabilities within 120 days after the contract takes effect if it has: 

• 50 or more employees and 

• A contract or subcontract with a value of $50,000 or more 


Vietnam Era Veterans Readjustment Assistance Act of 1974 (41 CFR 60-300)

There are two coverage thresholds for determining which AAP must be developed for veterans.  You may be subject to both.  A Supply & Service contractor or subcontractor must prepare an AAP for covered veterans within 120 days after the contract takes effect if it has: 

• 50 or more employees and at least one single contract or subcontract of $100,000 or more entered into or modified on or after December 1, 2003

For more information please see our Supply and Service page or contact Dyas HRD.