FAR 22.1303—Applicability.
Plain-English Summary
FAR 22.1303 explains when the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) requirements apply in federal contracting. It covers three main topics: the contract and subcontract coverage threshold for personal property and nonpersonal services, including construction; a special limitation on the Equal Opportunity for Veterans clause when a State or local government is the contracting party and some of its agencies or subdivisions do not actually perform work under the contract; and the requirement to submit the VETS-4212 Report when a contractor or subcontractor receives an award of $200,000 or more. In practice, this section tells contracting officers and contractors when veteran-employment obligations attach, when they do not, and which entities are excluded from the reporting requirement. It matters because failure to identify applicability correctly can lead to missing required clause flowdowns, incomplete subcontract compliance, and late or missing VETS-4212 submissions. The section also helps distinguish between contract coverage and reporting coverage, which are related but not identical.
Key Rules
Coverage threshold applies broadly
The Act applies to all contracts and subcontracts for personal property and nonpersonal services, including construction, when the value is $200,000 or more. This is the basic trigger for the veteran-employment requirements unless the Secretary of Labor has granted a waiver.
Waivers can remove coverage
Even when the dollar threshold is met, the requirements may be waived by the Secretary of Labor. A waiver is an exception to the normal rule and must be treated as a specific, authorized exemption rather than a contractor or agency choice.
State and local government limitation
For contracts with a State or local government, the Equal Opportunity for Veterans clause at 52.222-35 does not apply to any agency, instrumentality, or subdivision of that government that does not participate in work on or under the contract. Only the entities actually involved in performance are subject to the clause’s requirements.
VETS-4212 reporting is required at award
The Act requires submission of the VETS-4212 Report whenever the contractor or subcontractor receives an award of $200,000 or more. This reporting obligation is tied to the award amount and applies even where the contract is not otherwise a direct federal prime contract.
Reporting exceptions are limited
The VETS-4212 reporting requirement does not apply to awards to State and local governments, and it does not apply to foreign organizations when the workers are recruited outside the United States. These exceptions are narrow and should not be expanded beyond their stated terms.
Responsibilities
Contracting Officer
Determine whether the contract or subcontract meets the $200,000 threshold, whether any waiver applies, and whether the 52.222-35 clause must be included. For State or local government contracts, identify whether any agency, instrumentality, or subdivision is actually participating in the work before applying the clause.
Prime Contractor
Assess whether the award triggers VEVRAA coverage and ensure required veteran-employment obligations are implemented. Submit the VETS-4212 Report when required and flow down applicable requirements to covered subcontractors.
Subcontractor
Comply with veteran-employment requirements when the subcontract is covered and submit the VETS-4212 Report if the subcontract award meets the reporting threshold and no exception applies.
State or Local Government Entity
Identify which agencies, instrumentalities, or subdivisions are participating in the contract work and which are not, so the Equal Opportunity for Veterans clause is applied only to participating entities.
Secretary of Labor
Grant waivers where authorized, thereby exempting otherwise covered contracts or subcontracts from the Act’s requirements.
Practical Implications
The $200,000 threshold is the first screening question, but it is not the only one; contractors also need to check whether a waiver exists and whether the work falls within the covered contract types.
Contractors often confuse clause applicability with reporting applicability. A contract may require the VEVRAA clause and related compliance actions even when the reporting obligation is handled separately through the VETS-4212 process.
For State and local government contracts, the clause does not automatically reach every agency or subdivision on paper; it applies only to those actually participating in the work. Misidentifying participating entities can lead to overbroad or incomplete compliance.
Foreign organizations may be exempt from VETS-4212 reporting only when workers are recruited outside the United States. If recruitment occurs in the United States, the exception may not apply.
Contracting officers should document applicability decisions early, because missing a required clause or failing to recognize a reporting obligation can create downstream compliance problems for both primes and subcontractors.
Official Regulatory Text
(a) The Act applies to all contracts and subcontracts for personal property and nonpersonal services (including construction) of $200,000 or more except as waived by the Secretary of Labor. (b) The requirements of the clause at 52.222-35 , Equal Opportunity for Veterans, in any contract with a State or local government (or any agency, instrumentality, or subdivision) do not apply to any agency, instrumentality, or subdivision of that government that does not participate in work on or under the contract. (c) The Act requires submission of the VETS-4212 Report in all cases where the contractor or subcontractor has received an award of $200,000 or more, except for awards to State and local governments, and foreign organizations where the workers are recruited outside of the United States.