Should we be subject to Executive Orders? We are a third- party of a company doing business with the

We do not provide goods and services to the government and never have.  So we have never concerned ourselves with the provisions of Executive Order 11246, VEVRAA, or Section 503 of the Rehabilitation Act of 1973.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />


Today I received a letter from a Company that we do have business with, and has government contracts.  The letter from their VP of HR states that we may be subject to the foregoing provisions even as a third party.  


I cannot find any evidence of the veracity of this.  I am inclined to believe that as they deal directly with the government they send off this letter rather perfunctorily as part of their own compliance.


What say you, my esteemed colleagues in the field? Inquiring minds want to know.


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  • It may be just a mass mailing, but you may also be required to comply if you are a covered subcontractor. Executive Order 11246 sets requirements for federal contractors and federally assisted construction contractors and subcontractors who do more than $10,000 worth of business in 1 year with the federal government. Every contract/subcontract covered by this order must include an equal opportunity (EO) clause and a notice of goals and timetables for female and minority participation in the contractor's workforce.

    An employer with a government contract or subcontract amounting to $10,000 or more must take affirmative action to employ mentally or physically qualified disabled individuals.

    Employers with a subcontract of $50,000 or more with a nonconstruction subcontractor must have a formal written affirmative action plan for women and minorities.


  • Thanks for your response. Still a bit confused though. We do not provide any goods and services to the government.  We are also not subcontracted to provide services to the government.  All we do is provide equipment to the contractor or subcontractor who is themselves working with the government<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

    It’s like if person A was contracted by the government to build a road.  They clearly have an obligation to comply with the various statues and regulations for persons providing good and services to the government.


    If they come to us to make the hard hats that their employees will wear while working on this government contract, can we also be classified as a subcontractor?  It's more of an auxiliary relationship.



  • It's been quite awhile since I've had to deal with this but here's a sort of formalized short story:

    If X receives federal funding in excess of some amount, and X contracts Y for an amount above some number to do something, X must ensure that Y does certain things (such as have an AAP in place).

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