About Us  |  About Cheetah®  |  Contact Us

OFCCP adopts inflationary adjustments to Section 503 and VEVRAA jurisdictional thresholds

January 18th, 2016  |  Cynthia L. Hackerott

The Federal Acquisition Regulatory Council (FAR Council) has implemented inflationary adjustments to the jurisdictional thresholds under Section 503 of the Rehabilitation Act (Section 503) and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA), a recent update to OFCCP’s website page on jurisdiction notes. The Section 503 and VEVRAA statutes themselves have not been amended, but a law enacted in 2004 requires the FAR Council to review the dollar threshold amounts in certain federal agency procurement related laws every five years to determine whether they need to be adjusted for inflation. Executive Order 11246, also enforced by the OFCCP, is not subject to inflationary adjustment by the FAR Council.

Section 807 of the Ronald Reagan National Defense Authorization Act (41 U.S.C. Section 1908) requires the FAR Council to review the dollar threshold amounts in certain federal agency procurement related laws every five years to determine whether they need to be adjusted for inflation. As a result of these reviews, the FAR Council implemented inflationary adjustments of acquisition-related dollar thresholds for Section 503 and VEVRAA. In 2010, the FAR implemented an adjustment for Section 503 changing the threshold amount from $10,000 to $15,000, effective October 1, 2010 (75 FR 53129-53135; August 30, 2010). In 2015, a similar adjustment to the VEVRAA threshold was made increasing it from $100,000 to $150,000, effective October 1, 2015 (80 FR 38293-38306; July 2, 2015).

While the OFCCP’s regulations at 41 CFR 60 Parts 300 and 741 do not currently reflect these inflationary adjustments, the OFCCP has adopted the FAR Council’s adjusted thresholds for determining whether a contractor is covered by Section 503 and VEVRAA regulatory requirements. These adjusted thresholds are reflected in the OFCCP’s “Jurisdictional Thresholds” Infographic.

The Federal Acquisition Regulation is the principal set of rules in the Federal Acquisition Regulations System, which governs the acquisition process through which the federal government purchases goods and services. The agencies in the FAR Council – the Department of Defense (DoD), the Government Services Administration (GSA) and the National Aeronautical and Space Administration (NASA) – are the federal agencies most heavily involved in entering into contracts to procure goods and services for the federal government.

Leave a Response

Powered by WP Hashcash