The Supply and Services list includes Corporate Management Reviews, Establishment, and Functional reviews
OFCCP just released the 2022 Corporate Scheduling Announcement Lists (CSAL) for supply and service contractors, identifying 400 possible reviews. The CSAL is an advance notice of audits to be scheduled in the future.
The Supply and Service list identifies 309 contractors that have been identified for one of the following audits.
For those contractors identified on one of the CSAL lists, OFCCP has the following guides to assist in the preparation of an audit
In recent events, OFCCP representatives have discussed an updated selection methodology to create the scheduling list. We are now seeing the results of that updated methodology. The list was developed using the USAspending database as a source of information to identify federal contractors and subcontractors with contracts valued at over $50,000. The results identified 400 compliance evaluation selections.
The updated methodology includes factors such as industries experiencing employment growth during the pandemic and industries expected to receive significant federal investments for infrastructure and economic recovery. Hiring rates were also considered for selecting industries with average hiring rates that have increased after March 2020. Information from the Job Offers and Labor Turnover Survey, i.e., JOLTS from the U.S. Bureau of Labor Statistics (BLS) was used in comparing hiring rates.
The methodology describes neutral criteria that included an undefined statistical methodology using predictive modeling to create the final selection list. The process also continues to use data from the EEO-1 Component 1 submissions. The analysis included a comparison of the representation of EEO-1 job categories vs. industry and local labor market averages. Any differences were factored into the model on the selection methodology.
Other additional details were also provided describing how the final list was created: “(1) OFCCP did not include more than four establishments of any parent company; and (2) OFCCP selected two CMCE reviews per region using the same methodology as establishment reviews. For FAAP reviews, OFCCP selected two functional units with the highest employee count in each region.”
It is important to note that OFCCP is coordinating compliance reviews for parent companies that have three or more establishments on the CSAL. In this case, OFCCP reassigned the compliance reviews to the same region. We expected this to happen based on Directive 2022-02 where OFCCP described how companies with multiple audits would be coordinated to address efficiencies but also to identify any similarities and/or patterns that may indicate systemic discrimination.
Any contractor/subcontractor that is included in the CSAL should take immediate steps to prepare for a compliance review. The OFCCP has eliminated the 45-day delay between the published date of the CSAL and the mailing of the Audit Scheduling letters. Therefore, it is possible that a contractor/subcontractor could receive an Audit Scheduling letter within the next few days.
Contractors/subcontractors should act now to prepare their affirmative action data, record-keeping items, and other material for a timely submission. Extension requests will also be very limited.
In the meantime, contractors/subcontractors are required to complete their certification on the Contractor Portal by June 30, 2022. The scope of the certification is the Affirmative Action Program and not simply the affirmative action reports. This includes all the programmatic elements of the program including the identification of problem areas and good faith efforts.
OFCCP will also be expecting contractors/subcontractors to provide information on the analysis of compensation systems as required by 60-2.17(b)(3). The recent Pay Equity Directive reinforced the requirement to perform a pay equity analysis and to provide the information to OFCCP as part of a compliance review.
For assistance with your affirmative action and/or pay equity requirements, please contact us at 888.414.2410 or at info@outsolve.com as early as possible or upon receipt of a scheduling notice so that we can be of assistance. If you are an existing OutSolve client, please contact your consultant directly for assistance in preparing for a compliance review.