FAR 22.804-1—Nonconstruction.
Plain-English Summary
FAR 22.804-1 sets the basic affirmative action program (AAP) requirement for nonconstruction federal contractors and subcontractors. It explains who must prepare a written AAP, when the requirement applies, what dollar and employee thresholds trigger coverage, how Government bills of lading are treated, and the deadline for creating the program after the first covered federal contract, subcontract, or bill of lading begins. In practice, this section is the starting point for determining whether a nonconstruction business must maintain establishment-level affirmative action plans under the federal equal employment opportunity rules. It matters because failure to identify coverage early can lead to missed compliance deadlines, audit findings, and broader labor and employment risk on federal awards. The section also points readers to FAR 22.807, which contains exceptions that can remove or modify the requirement in some cases.
Key Rules
Coverage for nonconstruction contractors
The rule applies to each nonconstruction prime contractor and each subcontractor that meets the employee and contract-value thresholds. It is not limited to prime contractors; covered subcontractors must also comply.
Employee threshold of 50 or more
A written affirmative action program is required only if the contractor or subcontractor has 50 or more employees. Smaller firms are outside this specific requirement unless another provision applies.
Contract value threshold
Coverage generally applies when the contractor or subcontractor has a contract or subcontract of $50,000 or more. The threshold is measured against the covered federal contract or subcontract amount.
Government bills of lading count
Government bills of lading can also trigger coverage if they total, or can reasonably be expected to total, $50,000 or more in any 12-month period. This means transportation-related federal business can create AAP obligations even without a traditional procurement contract.
Establishment-level written AAPs
The contractor or subcontractor must develop a written affirmative action program for each of its establishments. The requirement is not satisfied by a single company-wide plan unless it addresses each covered establishment as required by the applicable rules.
120-day development deadline
The written AAP must be developed within 120 days from the commencement of the first covered Government contract, subcontract, or Government bill of lading. The clock starts when the first qualifying federal relationship begins, so contractors should not wait until the end of the 120-day period to begin compliance work.
Subject to exceptions in 22.807
This section applies except as provided in FAR 22.807. Users must check that section for any exemptions or special rules that may remove or alter the AAP obligation.
Responsibilities
Nonconstruction prime contractor
Determine whether it has 50 or more employees and a covered contract or Government bill of lading meeting the dollar threshold; if so, develop a written affirmative action program for each establishment within 120 days of the first covered award or bill of lading.
Nonconstruction subcontractor
Assess whether it meets the same employee and dollar thresholds; if covered, prepare and maintain establishment-level written affirmative action programs within the required 120-day timeframe.
Contracting Officer / Government customer
Identify and flow down applicable equal employment opportunity and affirmative action requirements as required by the contract framework, and ensure the contractor is aware of coverage triggers and compliance obligations.
Contractor compliance or HR staff
Track employee counts, contract and subcontract values, and Government bill of lading totals; create and maintain the written AAPs and ensure they are completed on time for each establishment.
Practical Implications
Contractors should evaluate coverage as soon as a federal award is anticipated, not after performance starts, because the 120-day deadline begins with the first covered contract, subcontract, or bill of lading.
The employee count and dollar thresholds both matter; a business with 50 or more employees can become covered quickly once it receives a qualifying federal award or transportation business.
Because the rule applies to each establishment, multi-site companies need to map where plans are required and avoid assuming one corporate plan is enough.
Government bills of lading can trigger obligations even for firms that do not think of themselves as traditional federal contractors, so transportation and logistics companies should monitor cumulative annual totals closely.
A common pitfall is overlooking subcontract coverage; lower-tier firms may still need AAPs if they meet the thresholds and are performing covered federal work.
Official Regulatory Text
Except as provided in 22.807 , each nonconstruction prime contractor and each subcontractor with 50 or more employees and either a contract or subcontract of $50,000 or more, or Government bills of lading that in any 12-month period total, or can reasonably be expected to total, $50,000 or more, is required to develop a written affirmative action program for each of its establishments. Each contractor and subcontractor shall develop its written affirmative action programs within 120 days from the commencement of its first such Government contract, subcontract, or Government bill of lading.