by Late Friday, September 8, 2023, the Office of Federal Contract Compliance Programs (OFCCP) published its second list of supply and service federal contractors to receive a compliance review this year. The list, formally known as the Corporate Scheduling Announcement List or CSAL, is a courtesy notice to 1,000 federal contractors that they have been selected for one of the agency’s compliance reviews. The actual review is commenced when the contractor receives an individual Scheduling Letter and Itemized Listing.
Federal contractors should take the following steps:
- Look at the CSAL to see if they are slated for review. The new CSAL spreadsheet is linked at https://www.dol.gov/agencies/ofccp/scheduling-list under the title “FY2023 CSAL Supply & Service Scheduling List, Release-2.”
- If the contractor’s name is listed, check which kind of review or audit will be held. The spreadsheet will note which type of review will occur: Compliance Review (Establishment Review), Corporate Management Compliance Evaluation, Functional Affirmative Action Program Review, or University Review.
- Review the Frequently Asked Questions regarding the Scheduling Letter and Itemized Listing to understand better what to expect and plan for a timely response. The FAQ are found at https://www.dol.gov/agencies/ofccp/faqs/scheduling-letters#Q1 .
In upcoming weeks, the listed employers will receive a Scheduling Letter and Itemized Listing explaining what will need to be sent in response to the type of review being made. The OFCCP had previously announced that contrary to it past practice, the agency would no longer wait a minimum period of days between publishing the CSAL and issuing the Scheduling Letter to employers identified in the announcement. Employers will have thirty days from the date of the letter to respond by answering detailed questions about their affirmative action plans (AAPs) and equal employment opportunity activities. The required response will include a great deal of documentation and data to provide a starting point for the audit.
Federal contractors and subcontractors who have had compliance reviews in past years will find some surprises in the Scheduling Letter and Itemized Listing they receive. Changes to the Scheduling Letter were proposed last year but just received final approval in August. The updated letter will be effective with this round of audits. The new Scheduling letter made significant changes in what is required in the employer’s first response to the audit. Some of the new components of the employer’s required response package include:
- Providing documentation of policies and practices regarding all employment recruiting, screening, and hiring processes. This includes information on any use of artificial intelligence, automated systems, or other technology-driven selection processes.
- Submission of two years (rather than the previously requested one year) of individual compensation data along with data on other compensation or adjustments to employee total compensation.
- Explanation of the factors used to determine employee compensation, supporting data, and documentation of compensation practices.
Another change from past OFCCP practice is how the employer may receive the Scheduling Letter. The agency notes that it may send the Scheduling Letter and Itemized Listing by email with a read receipt requested. The emailed Scheduling Letter and Itemized Listing is the agency’s official notification, and contractors will not receive a hard copy of the document in addition to the emailed letter.
It is unclear what email address the agency will use to contact the contractor. Contractor representatives who have had contact with the OFCCP, such as those submitting annual AAP certification to the agency’s contractor portal or who have engaged in other correspondence, may be the recipient of the email notice on behalf of the federal contractor. Another way the agency could obtain an email address for the contractor is through the contacts listed on the contractor’s registration on the System for Award Management, known as SAM.gov. A federal contractor’s SAM registration includes the email addresses of several employees as points of contact. However, it may be that none of them may be directly involved in preparing or administering the contractor’s affirmative action program. It is advised that federal contractors listed on the new CSAL alert employees who may receive an email from the OFCCP about the possibility of a letter and explain what action will be needed. Given the tight timeline for employer response to the letter, contractors will want to act promptly. It is a good idea to begin planning and gathering data for the review before receiving the Scheduling Letter.
