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What is an affirmative action plan – and what goes into one?
Most federal contractors are required to have an Affirmative Action Plan (AAP) when they are awarded a government contract. However, developing an...
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The deadline for federal contractors and subcontractors to certify they have a current Affirmative Action Plan (AAP) with the Office of Federal Contract Compliance Programs (OFCCP) is June 30, 2022. Earlier this year, the OFCCP launched the new Contractor Portal for contractors to certify if they are meeting their obligations to develop and maintain annual AAPs. The certification process does not require contractors to submit their actual AAPs to the OFCCP at this point in time.
What is the Contractor Portal?
Aimed at increasing accountability, the Contractor Portal is for covered federal contractors and subcontractors to certify whether they meet their requirements to develop and maintain annual AAPs. Not certifying by the June 30, 2022 deadline will likely open organizations up to a greater risk of undergoing an OFCCP compliance audit.
The portal was developed in response to Report 16-750 by the U.S. Government Accountability Office, which highlighted the OFCCP’s lack of process for ensuring that contractors are developing an AAP within 120 days of their contract start date, or that contractors have updated their AAP(s) annually.
Who is required to use the Contractor Portal?
According to the OFCCP, those required to use the portal include:
Contractors with 50 or more employees and hold a contract of $50,000 or more.
This threshold requires organizations to also develop an AAP pursuant to Executive Order 11246 and Section 503 of the Rehabilitation Act.
Contractors with 50 or more employees and hold a contract of $150,000 or more.
This threshold requires organizations to also develop an AAP pursuant to the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA).
At this time, construction contractors who are not also supply and service contractors will not be required to use the portal or certify AAP compliance.
For more information on thresholds, please see the OFCCP Jurisdiction Thresholds Infographic.
Use 2018 EEO-1 Data with the Contractor Portal
Currently, the Contractor Portal's registration process is configured to work only with information from the 2018 EEO-1 report. The EEO –1 report is a mandatory annual data collection requiring all private-sector employers with more than 100 employees, and federal contractors with 50 or more employees meeting certain criteria, to submit demographic workforce data, including data by race/ethnicity, sex, and job categories.
A more aggressive approach
Increasing their focus on contractor accountability, the OFCCP is pivoting to a more aggressive approach to compliance. With the implementation of the Contractor Portal, it has become more important than ever to make sure you have an AAP in place and up to date. Not doing so can put your organization at risk of costly violations.
Disclaimer: This is not intended to offer legal advice. Secure legal counsel when ensuring government compliance.
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