Revisions do not change the law but provides clarity into the procedures for requesting, modifying, or renewing FAAP agreements

On September 21, 2022, the Office of Federal Contracts Compliance Programs (OFCCP) published a revision to the existing Functional Affirmative Action Programs (FAAP) Directive, 2013-01. The revision establishes policies and procedures for requesting, modifying, and renewing FAAP agreements. It makes language and formatting changes to the FAAP application process to make it more “efficient, fluid, and collaborative.”

Contractors may be interested in applying for a FAAP agreement if they operate their business functionally instead of physically where employees are located. In this case, the affirmative action plans (AAPs) are developed by business function and not by establishment. Contractors are also able to tailor their plans to include both FAAPs and establishment-based plans if their organization is structured in that fashion. Upon requesting a FAAP agreement, the contractor is assigned a dedicated OFCCP FAAP Manager to assist in the application and review process.

The Directive will impact any contractor entering, modifying or renewing a FAAP agreement on or after the effective date of September 21, 2022. FAAP agreements are valid for five (5) years and may be renewed, prior to expiration by certifying in writing whether there have been any changes to functional or business units, the structure or organization, or other situations that may impact the agreement.

OFCCP is planning on hosting a webinar soon on FAAPs to discuss the revisions. Contractors that may be considering a FAAP agreement may contact the Branch of National Programs at OFCCP_FAAP-Unit@dol.gov or by calling 202.693.1125. More information may be found on the OFCCP FAAP webpage.

OutSolve’s Take 

There are advantages and disadvantages of developing and managing FAAPs. One of the advantages is that your AAP analysis will align with your organizational structure and management responsibilities, which should render a more effective program. However, the scope of the analysis is broader and includes a larger and wider set of employees instead of individual location based plans. Contractors considering developing FAAP plans, in addition to or in lieu of, establishment plans and would like to better understand the pros vs cons of developing FAAPs should contact their consultant or call OutSolve directly at 888-414-2410 or by email at info@outsolve.com.