Who is Required to File?

Every non-construction contractor/subcontractor with 50 or more employees is required to develop a written Affirmative Action Program (AAP) for each of its establishments within 120 days from the start of the Federal contract, if it:

  • Has a federal contract or sub contract 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 federal depository of Federal funds; or
  • Is a financial institution that is an issuing and paying agent for U.S. Savings Bonds and Savings Notes in any amount 

 Ideally, affirmative action should be part of the way the contractor regularly conducts its business. 

These requirements refer to the organization as a whole, so if just one location in a company contracts with the government, all of its locations are potentially subject to this Executive Order.

 Risk of Non-Compliance

Failure to comply with the non-discrimination or affirmative action provisions is a violation of the contract. A contractor in violation may have its contract terminated or suspended in whole or part with the future potential of debarrment, i.e. declared ineligible for future government contracts.

Other Uses for Affirmative Action Planning 

  • Affirmative Action for Diversity - Use the results from your AAP to drive Diversity initiatives and strategies.
  • Annual Diagnostic Tool - Developing an Affirmative Action Plan affords your company an opportunity to annually engage in self analysis of staffing practices, policies and procedures to ensure there are no barriers or impediments to equal employment opportunity. 
  • Mitigate Legal Risk & Bad PR - Mitigate damages associated with Title VII class action litigation by proactively staying on top of potential areas of concern.  Over 51 million given out in financial remedies for discrimination claims in 2007.

At the heart of Affirmative action is the desire to identify and eliminate non job-related barriers to employment.  Eliminating non job-related barriers is the right thing to do.  Removing barriers ensures that all qualified individuals have the ability to compete evenly for benefits of employment. 

"Major American businesses have made clear that the skills needed in today's increasingly global marketplace can only be developed through exposure to widely diverse people, cultures, ideas and viewpoints."


Let our experts complete your AAPs TODAY. Contact AAP 360© at info@aap360.com or call 404-402-5242