Social and economic obligations of a contract - Essay Example

Social and economic obligations of a contract Introduction USCGC Seahalk contract has certain social and economic obligations that should be fulfilled by the contractor. The contract requires the contractor to implement equal opportunity and affirmative action since the contract is of more than$ 10,000. According to Executive order 11246, that was amended by FAR 52.222-26, if the contractor such as USCGC seahalk, the contractor is required to have a well documnted affirmative action plan (AAP) on all business establishment locations if the contract entails a value of $ 50,000 and above and the contractor or sub-contractor has a total of fifty or more employees.

This social obligation requires the contractor to outline the measures he or she will utilize in ensuring equal employment opportunities without any discriminatio on the basis of gender, age, sex, race, and national origin. The contractor or sub-contractor should outline the measures he will undertake to ensure affirmative action measures are folowed in order to cater for the needs of minorities such as women and minority groups in the country. The USCGC seahalk contract will also entail additional requirements as pertains to employment of handicapped individuals or vietnam era veterans as per FAR 52.

22-35 and 36 regulations. The contractor will have to submit annual compliance report and allow the authorities to scrutinize the employment records such as VETS 100 form and EEO-1 (Kutz 54). USCGC seahalk contract will require the contractors to implement a drug-free working environment, Drug-free workplace Act of 1998, 200-690 is applicable to this contract since the value is above $ 100,000 and it entails a non-comercial item. In this regard, the contractors will have to notify the employees of possible actions against the contravention of the drug prohibition policy and also notify federal authorities within ten days of the receipt of any employee conviction notice for drug-related cases.

Drug prohibition should be a condition for employment and contractor should implement a drug-free working environment with utmost good faith. The conract should also meet the Hotel and Motel fire safety Act of 1990 standards as perains to the quality of the bething facilities and the health and safety requirements (Manuel 221). USCGC seahalk contract has certain legal economic obligations that pertain to the wage rates. According to labor standards or service contract Act, the contrcator in case of fedral contracts will have to pay his mechanics or laborers a rate of 1 and ½ of the basic pay rate for all hours worked in excess of the standard hours of 40 hours per week.

Several statututes such as Contract hours and safety standards Act, 40 U.S.C 327-333 and Davis-Bacon Act that governs federal construction contracts are applicable in this contract. This contract is fully governed by the Service contract Act since it entails a value of more than $ 2,500 and the contractors will have to pay the laborers a wage rate that is not less than that determined by the Secretary of Labor. The contractor should pay the laborers a as folllows; for houseman and maid the wage rate should be a minimum of $ 12.

50 per hour while for desk clerks the minimum wage should be $ 12.77. The contractor should meet the fair labor standards Act (Ford 554). Works cited: Ford, Karen., Notestine, Kerry and Hill, Richard. Fundamentals of employment law. Chicago. Tort and Insurance Practice. 2000. Kutz, Gregory. Federal contracting: assessments and citations of federal labor. New Jersey. Routledge. 2011. Manuel, Kate. Interagency contracting: an overview of federal procureemt and contracts. New Jersey. Routledge. 2010.