Monday, August 3, 2009

OFCCP Issues Guidance and FAQs on Compliance Evaluations for Stimulus Funded Contractors

The U.S. Department of Labor's Office of Federal Contract Compliance Programs has issued a staff directive and FAQs on compliance activity related to contracts funded by the American Recovery and Reinvestment Act of 2009 (ARRA). The American Recovery and Reinvestment Act of 2009 (Recovery Act) was signed into law by President Obama on February 17th, 2009. According to the agency, covered Federal contractors who receive ARRA funding must comply with Executive Order 11246, as amended (EO 11246); Section 503 of the Rehabilitation Act of 1973,as amended (Section 503); and the Vietnam Veterans' Readjustment Assistance Act of 1974, as amended, 38 U.S.C. 4212 (VEVRAA). OFCCP will conduct compliance evaluations and host compliance assistance events to ensure that federal contractors comply and are aware of their responsibilities under EO 11246, Section 503 and VEVRAA.

To increase transparency and accountability of ARRA spending, OFCCP is obligated to track its ARRA-related and non-ARRA-related enforcement activities separately. Accordingly, OFCCP has established separate scheduling procedures to provide for compliance evaluations of ARRA funded contractors. Active Case Management (ACM) procedures are not to be used in ARRA compliance evaluations. ARRA compliance evaluation procedures require that Regional, District and Area offices conduct a full compliance evaluation, including a full desk audit and onsite review, of every S&S (Supply and Service) ARRA funded contractor establishment scheduled, even in the absence of systemic discrimination indicators. See 41 CFR § 60-1.20(a)(1).

For more information about OFCCP's compliance activity, including the ARRA Directive to OFCCP staff, FAQs and the number of construction and non construction (Supply and Service) compliance reviews, go to: http://www.dol.gov/esa/ofccp/arra_web.html.

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