Scheduling list identifies 500 contractors for establishment, CMCE and FAAP reviews
We are seeing the new administration quickly making changes which ultimately impact government contractors in both positive and negative ways. This new change updates the OFCCP’s supply and service scheduling list to remove contractors previously identified as selected for a focused review or a compliance check. OFCCP claims that this change is a way to “more thoroughly evaluate contractors through the strategic allocation of limited agency resources."
OFCCP is concentrating their efforts towards conducting full scale establishment-based reviews, Corporate Management Compliance Evaluation reviews (CMCE), Functional Affirmative Action Program (FAAP) reviews, and university reviews. These are the reviews that typically yield more deficiencies and higher financial payouts. These are also the reviews that take longer to complete so we anticipate less reviews during the year unless OFCCP is able to garner an increase in staffing budget.
The new list identifies 67 contractors identified for CMCE reviews, 402 scheduled for establishment reviews, and 31 scheduled for a FAAP review.
Contractors who have been removed from the list should know that they have a temporary reprieve; however, we do not know whether these contractors will be identified for other types of audits in the future. In FY 2020 OFCCP secured $35.6 million in monetary remedies which was the second-highest year in the agency’s history. During the fiscal year, OFCCP also entered into numerous Early Resolution Conciliation Agreements with large organizations like Google and Lockheed Martin agreeing to pay out large sums of money to resolve allegations of discrimination relating to hiring and pay practices.
Contractors should continue to be vigilant with their compliance programs and regularly evaluate their personnel policies and practices to ensure that there are no red flags.
See the scheduling list here.