Laketown System Corp., a federal contractor, chooses not to comply with the affirmative action plan established to increase the representation of women and minorities within its workplace. Which of the following is an implication of noncompliance?

A) Laketown System Corp. cannot be subject to any action for noncompliance as it is a federal contractor.
B) Laketown System Corp. cannot be subject to any action for noncompliance as it is not a voluntary affirmative action plan.
C) Laketown System Corp. can be debarred from further participation in government contracts for noncompliance.
D) Laketown System Corp. can be prohibited from adopting affirmative action plans in the future for noncompliance.

Answer: The implication of noncompliance is; Laketown System Corp. can be debarred from further participation in government contracts for noncompliance. The correct answer is C.

Explanation:

Since Laketown System Corp is a federal contractor they will possibly be debarred and will not be able to participate in any government contracts since they are non compliant. They will not be able to bid on any type of government job. This will also make the company lose their reputation and possibly lose business in the public and private sector.

According to Executive Order 11246, any company that has a total of 50 or more employees and a nonconstruction contract must have a written affirmative action plan in place. Their contract must also total $50,000 to have this written plan in place.

All companies must implement and develop all internal auditing systems that will measure the companies affirmative action plan. This must show the effectiveness of the plan that the company has written.