Must a college adopt an affirmative action plan (AAP) because it has accepted federal funds in support of some of the college’s programs when the funds are "grants" supporting certain college activities, not "government contracts," i.e., they are not payments received in exchange for providing services directly to any federal agency?
The obligation to create an AAP is triggered when an organization with 50 or more employees enters into a government contract or subcontract in excess of $50,000. The requirement for government contractors to adopt AAPs arises from Executive Order 12246, a declaration issued by President Johnson prohibiting government contractors from engaging in employment discrimination. For purposes of Executive Order 11246, a "government contract" is "any agreement . . . between any contracting [federal] agency and any person for the purchase, sale or use of personal property or nonpersonal services."