Construction primes or subcontractors with federal funded projects valued at $35 million+ and lasting at least one year should be prepared for OFCCP scrutiny
The Office of Federal Contracts Compliance Programs (OFCCP) has launched its Mega Construction Project (Megaproject) Program to coincide with Equal Pay Day. The Megaproject impacts federal construction contractors with federal funded projects valued at $35 million and higher lasting at least one year. The goal is to “promote equitable hiring and fair workplaces” and increase representation of qualified workers from underrepresented groups in the construction trades on projects created based on President Biden’s Infrastructure Investment and Jobs Act (IILJA).
This program indicates another step in strengthening OFCCP’s efforts to oversee construction contractors’ compliance efforts. In 2022, the OFCCP unveiled the Notification of Construction Contract Award Portal requiring construction companies to electronically submit a notice to OFCCP within 10 working days of an award of a federal or federally-assisted construction contract or subcontract more than $10,000. In the OFCCP FY 2023 budget request, they asked for funds to support the agency’s additional enforcement responsibility for the increased number of federal contractors receiving investments from the Bipartisan Infrastructure Law (BIL), namely mega construction projects.
BIL-funded projects from the Department of Transportation (DOT) and the General Services Administration (GSA) will be the initial group identified by the OFCCP. In the OFCCP’s Mega Construction Projects Reference Sheet, the agency indicates intentions to work with prime and subcontractors at the pre-bid and post-bid stages. They will offer compliance assistance by providing free, continuous, on-the-ground help to project owners. The compliance assistance will include the sharing of information and providing connections through community-based organizations and worker advocates to help identify a diverse pool of applicants.
The Megaproject program’s webpage offers prime and subcontractors:
- Reference Sheet
- Quick Reference Guide
- Letter from OFCCP to IILJA grantees
- Description of the 16 affirmative action steps required of construction contractors
OFCCP has launched the Megaproject program coinciding with Equal Pay Day because the agency recognizes the disparity between the wages of men and women. The Biden administration states that it is “using a whole-of-government approach to close gender and racial wage gaps by creating more opportunities for women and people of color in high-paying careers where they are currently underrepresented.” The construction industry is typically male dominated and has been difficult for women and people of color to bridge the wage gap. [OFCCP Taking a Proactive Approach to Achieving Pay Equity.]
The last construction Corporate Scheduling Announcement Letter (CSAL) was published in 2021 which identified 400 contractors. Based on the launching of this megaproject, OutSolve anticipates contractors with these large long-term federal funded projects will be identified for upcoming audits. On the OFCCP’s Scheduling List Resources webpage, they identify the FY 2023 Mega Construction Designees. Contractors with projects identified on this list, and others with large projects, should ensure their construction affirmative action compliance efforts are implemented and well documented.
For further information or assistance, please contact us at info@Outsolve.com or by calling 888.414.2410.