Quick Hits
- On November 20, 2024, OFCCP published a CSAL that identified 2,000 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 November 2024 CSAL, continuing to focus on establishments with large employee counts and coordinating multiple reviews of larger contractors.
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 removed a number of categories, 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 2022 EEO-1 reports. Notably absent again from the methodology document was any reference to the 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 400 employees, but the methodology notes an establishment is still appropriate for review even if the employee threshold drops below 400 at the time OFCCP schedules an audit. The cap has increased from a maximum of two per parent company to ten per parent company. As with prior CSALs, OFCCP may transfer or consolidate compliance evaluations of different establishments to different districts or regions to balance workloads.
OFCCP’s scheduling methodology statement reminds 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—such as the list of 500 establishments identified in June 2024—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.
Next Steps
It is anticipated that OFCCP may start scheduling audits immediately. Federal contractors subject to OFCCP’s jurisdiction may want to take quick action to ensure they are prepared in the event they are on the fiscal year 2025 CSAL.
Ogletree Deakins’ OFCCP Compliance, Government Contracting, and Reporting Practice Group will continue to monitor developments and provide updates on the Government Contractors and OFCCP Compliance, Government Contracting, and Reporting blogs as additional information becomes available.
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