Federal Contracts and E-Verify

1
Federal Contracts and E-Verify

• Presented by
• Janet Daley, Business Manager, Geophysical
  Institute
• Maggie Griscavage, Director, OGCA

2
Disclaimer

• This presentation is intended for an audience of
  individuals who need to know about, but will not
  necessarily be responsible for, the mechanics of
  implementing the documentation or actual
  verification process itself, and ensuring
  E-Verify assurance is in place.
• Anticipated audience
• Principal Investigators
• Departmental fiscal officers and technicians
• Departmental grant technicians

3
Agenda

1. E-Verify Requirements
2. Process for new federal contracts
3. Process for existing employees
4. Process for new employees
5. Penalties for noncompliance
6. Process for subcontractors
7. Resources

4
E-verify Requirements

• What is E-Verify?
• E-Verify is an Internet based system operated by
  the Department of Homeland Security (DHS) in
  partnership with the Social Security
  Administration (SSA) that allows participating
  employers to electronically verify the employment
  eligibility of their employees. 
• Who is required to use E-verify?
• All employers with federal contracts that meet
  certain requirements are required to use
  E-Verify. For UAF, Human Resources will be our
  only point-of-contact with E-Verify.

5
How do you know your contract has this
requirement?

• Defense Acquisition Regulations Council amended
  the Federal Acquisition Regulation (FAR) to
  reflect this change
• Contract Officers will insert clauses in new
  contracts and solicitations.
• In addition, certain existing government
  contracts may be amended to include the
  requirements.
• 48 CFR Parts 2, 22 and 52

6
Not all contracts will have the Clause

• The E-Verify clause will be invoked for prime
  federal contracts with a value above the
  simplified acquisition threshold (100,000), and
  a period of performance longer than 120 days.

7
Citations

• Executive Order 13465 Economy and Efficiency in
  Government Procurement through Compliance with
  Certain Immigration and Nationality Act
  Provisions and the Use of an Electronic
  Employment Eligibility Verification System.
• Title 48 Federal Acquisition Regulations System,
  Part 52 Solicitation Provisions and Contract
  Clauses
• Subpart 52.2 Text of Provisions and Clauses

8
Process for New Federal Contracts

• When a department receives notice of a new
  federal contract award that requires E-Verify
• Department should check HR Banner Screen PEA2EMP
  to see if current employee(s) that will be
  working on the award has an E-Verify date.
• Example

9
Process for existing employees

• If the employee does NOT have E-Verify status,
  department must notify the HR office prior to or
  within three days of the employee working on the
  contract.
• The HR office will use existing I-9 information
  for processing. If the I-9 on file is no longer
  valid, the HR office will contact the department
  for a valid form.

10
Process for Existing Employees (continued)

• The HR office will process the employee through
  E-Verify and notify the department of the status.
• Budget may not be set-up in Banner until all
  direct-charge employees on the contract have been
  processed through E-Verify.

11
Process for New Employees

• When a recruitment is completed for a job that is
  funded by a federal contract that requires
  E-Verify then
• Department should check the box (under
  construction) in the UAKJobs posting that
  indicates the job will be assigned to a federal
  contract that requires E-Verify

12
Social Security Number question

• The employee must provide his or her SSN in
  Section 1 of Form I-9 as part of the verification
  process.
• If an employee has applied for but not yet
  received his or her SSN, all payroll must be
  charged to the departments general fund until
  the number is received and the E-Verify process
  is completed.  Once the process is successfully
  completed, HR will assign the E-Verify date and
  labor reallocations will be processed.

13
Process for New Employees (continued)

• Once the job offer has been made and the offer
  accepted, the new employee should submit a
  completed I-9 form with the applicable
  documentation. This can be done prior to start
  date of employment. These documents should be
  delivered personally or by courier to the HR
  office for processing in E-Verify prior to or
  within three days of the employee starting work.
• The HR office will process the employee through
  E-Verify and notify the department of the status.

14
Process continued..

• The department should send a copy of the
  confirmation with the original I-9 documents to
  the HR office as a part of the new hire packet.
• You must continue to use E-Verify for the life of
  the contract for any direct hires on the
  contract, no matter at what point they do work on
  that contract (not just at the beginning).

15
Authorization

• E-Verify actions may return questionable results
  during the validation process. HR will
  immediately notify the individual of the result.
  The individual will have a window of opportunity
  to challenge the results before a final
  determination is made.
• Individual(s) may continue to work against fund
  one until the challenge is complete.

16
Work not Authorized

• If the E-Verify system responds that the employee
  is not authorized to work, ALL employment will be
  terminated with the University of Alaska
  IMMEDIATELY.
• NOTE This includes jobs that are not funded by
  federal contract.

17
Penalties for Noncompliance

• If the E-Verify process is not completed within
  the three days of the employee starting work on
  the federal contract then all labor costs shall
  be charged to the departments general fund.
  Labor that has been charged to general funds can
  only be reallocated back to three days prior to
  the actual E-Verify date. The following
  transactions will not be allowed until the
  E-Verify process is completed
• Job changes
• Timesheet Overrides
• Labor Reallocations

18
Process for Subcontractors

• If a subcontract is required to contain the
  E-Verify requirement, then
• The Procurement office will insert the applicable
  E-Verify clause in the subcontract
• The Procurement office will have the
  subcontractor sign the Subcontract Compliance
  Assurance Statement.
• The subcontractor is responsible for processing
  their employees that are working on the
  subcontract through E-Verify.
• The Procurement office is responsible to assure
  that the subcontractor is compliant with the
  E-Verify requirement.

19

• SUBCONTRACT COMPLIANCE ASSURANCE STATEMENT
• E-Verify Code of Business Ethics and Conduct
• The Subcontractor shall comply with the FAR
  clauses that the Contracting Officer has
  indicated as being incorporated in this
  Subcontract by reference to implement provisions
  of law or Executive orders.
• 1. SUBCONTRACTING ENTITY (SUBCONTRACTOR)
• 2. SUBCONTRACT NO.
• 3. PROJECT TITLE
• FAR Clause 52.222-54, Employment Eligibility
  Verification (E-Verify)
• This Subcontract is subject to the requirements
  of FAR clause 52.222-54, Employment Eligibility
  Verification. The Subcontractor agrees to assume
  primary responsibility for complying with both
  the intent and the procedures of 52.222-54 as
  prescribed by 22.1803. The Subcontractor agrees
  to include this clause in all applicable
  lower-tier Subcontracts.
• In accordance with the Subcontract General
  Provisions, the University of Alaska and its
  primary funding source may at reasonable times
  and places, audit the books and records of the
  Subcontractor and its lower-tier Subcontractors
  to assure compliance with this requirement.

20
Definitions

• Employee assigned to the contract means an
  employee who was hired after November 6, 1986,
  (when I-9s were first required) who is directly
  performing work, in the United States, under a
  contract that is required to include the clause.
• Subcontractor means any supplier, distributor,
  vendor, or firm that furnishes supplies or
  services to or for a prime Contractor or another
  subcontractor.
• COTS Commercial off-the-shelf item

21

• Subcontract means any contract. entered into by
  a subcontractor to furnish supplies or services
  for performance of a prime contract or a
  subcontract. It includes but is not limited to
  purchase orders, and changes and modifications to
  purchase orders.
• (1) Is for
• (i) Commercial or noncommercial services (except
  for commercial services that are part of the
  purchase of a COTS item (or an item that would be
  a COTS item, but for minor modifications),
  performed by the COTS provider, and are normally
  provided for that COTS item) or
• (ii) Construction
• (2) Has a value of more than 3,000 and
• (3) Includes work performed in the United States.

22
Resources
Your departmental PPA. The UA E-Verify FAQ
at www.alaska.edu/hr/procedures/PDF/personnel.ref
erence.everify_faq.pdf Federal Forms and
Procedures http//www.dhs.gov/E-Verify http//ww
w.dhs.gov/xprevprot/programs/gc_1185221678150.shtm