OFCCP Identifies 500 Supply and Service Establishments for Audits in Its 2024 Corporate Scheduling Announcement List

Quick Hits

• On June 7, 2024, OFCCP published a CSAL that identified 500 establishments of federal supply and service contractors and subcontractors for compliance reviews.
• The CSAL operates as a “courtesy notification” to a contractor that an OFCCP compliance review will be undertaken; the compliance review process begins when the company establishment receives a scheduling letter from OFCCP.
• OFCCP published the methodology it used for developing the June 2024 CSAL.

In its scheduling methodology statement, OFCCP notes that the eligible contractor list was created from information housed at USAspending.gov. The CSAL methodology also reveals that OFCCP made a number of categorical removals, then refined the pool to those contractor establishments with the highest employee count in each OFCCP district office’s jurisdiction. To identify employee headcounts, OFCCP pulled data from 2021 EEO-1 reports. OFCCP identified financial institutions by downloading Federal Deposit Insurance Corporation (FDIC)-insured banks, addresses, and employee counts from the FDIC’s publicly available database. Notably absent from the methodology document was any reference to use of data from OFCCP’s own contractor portal.

For each parent company in the United States with at least one contract of $50,000 or more, OFCCP identified establishments with at least 500 employees or FAAP units with at least 300 employees that met other scheduling methodology requirements. As with prior CSALs, OFCCP is consolidating compliance evaluations of different establishments within one OFCCP region. The methodology states, “Where a parent company has two establishments on the scheduling list, OFCCP reassigned these compliance reviews to a single region so that both the agency and the contractor can engage in these reviews in a coordinated manner.” With this consolidation, OFCCP has more visibility on common “issues,” such as hiring and compensation, to try to leverage technical and/or discrimination allegations among two or more contractor establishments.

OFCCP’s scheduling methodology statement reminded contractors that “OFCCP does not purge unscheduled cases from prior lists before releasing a new scheduling list.” This means any evaluations not yet initiated from a prior list remain in OFCCP’s upcoming compliance evaluation queue. The CSAL does not start the compliance review process, but it gives the contractor notice and time to prepare for the upcoming compliance evaluation.

Ogletree Deakins’ OFCCP Compliance, Government Contracting, and Reporting Practice Group will continue to monitor developments and will provide updates on the Government Contractors and OFCCP Compliance, Government Contracting, and Reporting blogs as additional information becomes available.

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