Our business operates as a fund depository and an issuing and paying agent for U.S. Saving Bonds and savings notes. Are we required to have a written affirmative action plan?

Executive Order 11246 implementing regulations at 41 CFR 60-1.40(a) and 60-2.1(b) stating that any non-construction (Supply and Service) contractor that serves as a depository of Government funds in any amount or a financial institution which is an issuing and paying agent for U.S. saving bonds and saving notes in any amount must develop an affirmative action program has been revoked as of 2025. This means you are no longer required to maintain an affirmative action plan for race, color, religion, sex, sexual orientation, gender identity, or national origin.

Under Section 503, however, a Government contractor with 50 or more employees and a Government contract of $50,000 or more must develop a Section 503 affirmative action program. 41 CFR 60-741.40(a). The Section 503 regulations define a Government contract as “any agreement or modification thereof between any contracting agency and any person for the purchase, sale or use of personal property or nonpersonal services.” 41 CFR 60-741.2(i). The term “nonpersonal services” as used in this section includes fund depository. 41 CFR 60-741.2(i)(4). Thus, the agreement to serve as a Federal funds depository is a “Government contract.”

Under Section 503, all government contracts must meet the dollar threshold amount of $50,000 for coverage. Therefore, if you serve as a depository for Federal funds of $50,000 or more, or have an agreement valued at $50,000 or more to be an issuing and paying agent for savings bonds and notes, you would be obligated to develop and maintain a Section 503 affirmative action program.