A little light has been shined on one of the great mysteries for many supply and service federal contractors–how the OFCCP selects establishments for a compliance review.
The agency issued a new set of Corporate Scheduling Announcement Letters (CSAL) on February 1, 2018. The notices provide selected contractors with advance notice that their establishment has been selected to undergo a compliance evaluation as part of a scheduling list generated from OFCCP’s Federal Contractor Selection System (FCCS). A total of 1,000 establishments are on the new scheduling list. But the question for many contractors is—how did this establishment get on the scheduling list?
Last week, OFCCP released a detailed document which explains the scheduling methodology for the agency’s FY 2018 scheduling list. The document, available on OFCCP’s website at https://www.dol.gov/ofccp/scheduling/SL18R1Methodology-WebsiteESQA508c.pdf, is a must-read for anyone who might have thought the agency doesn’t take its obligation to schedule contractors in a neutral fashion seriously.
According to the summary, the OFCCP first gathered information from the Federal Procurement Data System – Next Generation (FPDS-NG) about federal contracts for the years 2015 - 2017. After removing certain contracts due to jurisdictional and other issues, the names and addresses of companies holding contracts were matched with the EEO-1 database. During this process, OFCCP also identified the parent company of any direct establishment holding a 2015-2017 contract in the FPDS-NG. In addition to the establishment directly holding the contract, and any parent company, all establishments of the parent company in the EEO-1 database that reported 100 or more employees were also added to the potential scheduling list. Finally, the agency added all functional units of companies that had active Functional Affirmative Action Program (FAAP) agreements and all other establishments of FAAP contractors.
The agency next removed establishments from the list. The reasons for the removal included but were not limited to establishments that:
- Completed a review within the past five years
- Had a separate facility waiver
- Had contracts expiring before March 31, 2018
- Were currently under OFCCP review or monitoring
- Had less than 70 employees and were the holder of a direct federal contract
- Were independent subsidiaries based on available Duns and Bradstreet and Lexis-Nexis corporate information
The OFCCP then matched the available pool to its district offices based on physical address, and set caps for the number of reviews per OFCCP district office based on available FTE and other criteria, with an overall scheduling list of no more than 1,000 establishments. Finally, the agency ordered the available scheduling pool by employee count and selected the specific number of establishments each district office would receive based on a variety of factors, with priority given to establishments in the available pool with higher employee counts.
There are some important lessons in here for contractors—particularly about filing small location EEO-1 reports correctly. Contact your Berkshire consultant for more guidance on this and other scheduling issues. In the meantime, kudos to the agency for this level of transparency about its scheduling process. Let’s hope we see more information sharing in other areas by the OFCCP.