Bureau of National Affairs
Monday, February 13, 2012
OFCCP Proposed Rule Under Section 503 of the Rehabilitation Act
Key Development: OFCCP extends by 14 days the public comment period for a proposed rule that would, among other things, set a 7 percent national utilization goal for hiring individuals with disabilities in each job group within a federal contractor's workforce.
Next Step: Comments are now due Feb. 21.
By Jay-Anne B. Casuga
The Labor Department's Office of Federal Contract Compliance Programs has extended to Feb. 21 the comment period for a proposal that would revise regulations pertaining to federal contractors' nondiscrimination and affirmative action obligations for individuals with disabilities, DOL announced Feb. 7.
Full Story: http://www.bna.com/ofccp-extends-comment-n12884907860/
News and Commentary on Affirmative Action, Equal Opportunity, Civil Rights and Diversity - Brought to you by the American Association for Access, Equity, and Diversity (AAAED)
Showing posts with label proposed regulations. Show all posts
Showing posts with label proposed regulations. Show all posts
Tuesday, February 14, 2012
OFCCP Extends Deadline for Comments on Sec. 503 Proposed Regulations
Office of Federal Contract Compliance Programs (OFCCP)
Latest Events and News
503 NPRM Comment Period Extended
On December 9, 2011, the Office of Federal Contract Compliance Programs (OFCCP) published in the Federal Register a notice of proposed rulemaking (NPRM). This NPRM (76 FR 77056) proposes to revise the regulations implementing the non-discrimination and affirmative action regulations of section 503 of the Rehabilitation Act of 1973, as amended.
The original comment period is scheduled to end on Tuesday, February 7, 2012. After receiving several requests for extensions, OFCCP is extending the comment period for this NPRM for 14 days until Tuesday, February 21, 2012. This action will provide all interested persons additional time to analyze the issues and provide their comments on the NPRM. Parties who filed comments previously may supplement or submit additional comments during the extended comment period. Parties interested in commenting can view the NPRM and submit comments by using the Federal eRulemaking Portal www.regulations.gov and referencing RIN 1250-AA02.
OFCCP is publishing a Federal Register notice announcing this two-week extension of the comment period.
Read the Labor Department's press release about this extension.
http://www.dol.gov/ofccp/regs/compliance/sec503/Section_503_NPRM_Extension.pdf
http://www.dol.gov/ofccp/OFCCPNews/LatestNews.htm#news2
Latest Events and News
503 NPRM Comment Period Extended
On December 9, 2011, the Office of Federal Contract Compliance Programs (OFCCP) published in the Federal Register a notice of proposed rulemaking (NPRM). This NPRM (76 FR 77056) proposes to revise the regulations implementing the non-discrimination and affirmative action regulations of section 503 of the Rehabilitation Act of 1973, as amended.
The original comment period is scheduled to end on Tuesday, February 7, 2012. After receiving several requests for extensions, OFCCP is extending the comment period for this NPRM for 14 days until Tuesday, February 21, 2012. This action will provide all interested persons additional time to analyze the issues and provide their comments on the NPRM. Parties who filed comments previously may supplement or submit additional comments during the extended comment period. Parties interested in commenting can view the NPRM and submit comments by using the Federal eRulemaking Portal www.regulations.gov and referencing RIN 1250-AA02.
OFCCP is publishing a Federal Register notice announcing this two-week extension of the comment period.
Read the Labor Department's press release about this extension.
http://www.dol.gov/ofccp/regs/compliance/sec503/Section_503_NPRM_Extension.pdf
http://www.dol.gov/ofccp/OFCCPNews/LatestNews.htm#news2
Monday, January 30, 2012
OFCCP Declines to Extend Sec. 503 Comments Deadline
The Equal Employment Advisory Council (EEAC) reports that the Office of Federal Contract Compliance Programs (OFCCP) has denied its request to extend the deadline on the comments regarding the OFCCP's proposed changes to the Section 503 disability regulations. Thus, the deadline for comments remains February 7, 2012.
AAAA members who are filing comments are urged to share them with AAAA so we can truly reflect the views of our members when we file comments on behalf of the association. Thank you!
AAAA members who are filing comments are urged to share them with AAAA so we can truly reflect the views of our members when we file comments on behalf of the association. Thank you!
Tuesday, January 3, 2012
OFCCP Publishes PowerPoint Presentation on Sec. 503 Proposed Regs
The Department of Labor's Office of Federal Contract Compliance Programs has made available its webinar presentation on the proposed Section 503 disability regulations. The presentation may be found at: http://www.dol.gov/ofccp/Presentation/Webinar_503_December_20_and_21_2011.htm
The deadline for submitting comments on the proposed regulations is February 7, 2011. If you or your organization submits comments, please share them with AAAA by emailing them to execdir@affirmativeaction.org.
Thank you!
The deadline for submitting comments on the proposed regulations is February 7, 2011. If you or your organization submits comments, please share them with AAAA by emailing them to execdir@affirmativeaction.org.
Thank you!
Monday, December 12, 2011
Rule would require federal contractors to hire more disabled workers
Business Insurance
December 9, 2011 - 1:40pm
WASHINGTON—The Department of Labor's Office of Federal Contract Compliance has proposed a new rule under which federal contractors and subcontractors would be required to set a goal of having 7% of their workforce be people with disabilities, it said Thursday.
According to the proposal, which was published Friday in the Federal Register, contractors and subcontractors would have to reach that percentage within each of their job groups rather than within its workforce as a whole.
Full Story: http://www.businessinsurance.com/article/20111209/NEWS07/111209871?tags=%7C309%7C70%7C303#
December 9, 2011 - 1:40pm
WASHINGTON—The Department of Labor's Office of Federal Contract Compliance has proposed a new rule under which federal contractors and subcontractors would be required to set a goal of having 7% of their workforce be people with disabilities, it said Thursday.
According to the proposal, which was published Friday in the Federal Register, contractors and subcontractors would have to reach that percentage within each of their job groups rather than within its workforce as a whole.
Full Story: http://www.businessinsurance.com/article/20111209/NEWS07/111209871?tags=%7C309%7C70%7C303#
OFCCP Announces Proposed Rules on Disability Law
News Release
OFCCP News Release: [12/08/2011]
Contact Name: Laura McGinnis or Mike Trupo
Phone Number: (202) 693-4653 or x6588
Release Number: 11-1614-NAT
US Labor Department seeks to improve job opportunities for Americans with disabilities by setting historic hiring goal for federal contractors and subcontractors
WASHINGTON — The U.S. Department of Labor is proposing a new rule that would require federal contractors and subcontractors to set a hiring goal of having 7 percent of their workforces be people with disabilities, among other requirements. The department's Office of Federal Contract Compliance Programs invites public comment on this proposal, which will be published in the Dec. 9 edition of the Federal Register.
OFCCP's proposed rule would strengthen the affirmative action requirements established in Section 503 of the Rehabilitation Act of 1973 obligating federal contractors and subcontractors to ensure equal employment opportunities for qualified workers with disabilities. The proposed regulatory changes detail specific actions contractors must take in the areas of recruitment, training, record keeping and policy dissemination — similar to those that have long been required to promote workplace equality for women and minorities. In addition, the rule would clarify OFCCP's expectations for contractors by providing specific guidance on how to comply with the law.
"This proposed rule represents one of the most significant advances in protecting the civil rights of workers with disabilities since the passage of the Americans with Disabilities Act," said Secretary of Labor Hilda L. Solis. "President Obama has demonstrated a commitment to people with disabilities. This proposed rule would help federal contractors better fulfill their legal responsibility to hire qualified workers with disabilities."
Although Section 503 regulations have been in place for decades, the current unemployment rate for people with disabilities is 13 percent, 1 1/2 times the rate of those without disabilities. Even more discouraging, data published last week by the department's Bureau of Labor Statistics show stark disparities facing working-age individuals with disabilities, with 79.2 percent outside the labor force altogether, compared to 30.5 percent of those without disabilities.
"For nearly 40 years, the rules have said that contractors simply need to make a 'good faith' effort to recruit and hire people with disabilities. Clearly, that's not working," said OFCCP Director Patricia A. Shiu. "Our proposal would define specific goals, require real accountability and provide the clearest possible guidance for employers seeking to comply with the law. What gets measured gets done. And we're in the business of getting things done."
Establishing a 7 percent hiring goal for the employment of individuals with disabilities would be a tool for contractors to measure the effectiveness of their affirmative action efforts and thereby inform their decision-making. The proposed rule also would enhance data collection and record-keeping requirements — including for documentation and processing of requests for reasonable accommodation — in order to improve accountability. Additionally, it would ensure annual self-reviews of employers' recruitment and outreach efforts, and add a new requirement for contractors to list job openings to increase their pools of qualified applicants.
To read the notice of proposed rulemaking or submit a comment, visit the federal e-rulemaking portal at http://www.regulations.gov. Comments also can be submitted by mail to Debra Carr, Office of Federal Contract Compliance Programs, U.S. Department of Labor, Room C-3325, 200 Constitution Ave. NW, Washington, D.C. 20210. All comments must be received by Feb. 7, 2012, and should include identification number (RIN) 1250-AA02.
In addition to Section 503, OFCCP enforces Executive Order 11246 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974. As amended, these three laws require those who do business with the federal government, both contractors and subcontractors, to follow the fair and reasonable standard that they take affirmative action and not discriminate in employment on the basis of sex, race, color, religion, national origin, disability or status as a protected veteran. For general information, call OFCCP's toll-free helpline at 800-397-6251 or visit its website at http://www.dol.gov/ofccp/.
Read this news release en EspaƱol.
OFCCP News Release: [12/08/2011]
Contact Name: Laura McGinnis or Mike Trupo
Phone Number: (202) 693-4653 or x6588
Release Number: 11-1614-NAT
US Labor Department seeks to improve job opportunities for Americans with disabilities by setting historic hiring goal for federal contractors and subcontractors
WASHINGTON — The U.S. Department of Labor is proposing a new rule that would require federal contractors and subcontractors to set a hiring goal of having 7 percent of their workforces be people with disabilities, among other requirements. The department's Office of Federal Contract Compliance Programs invites public comment on this proposal, which will be published in the Dec. 9 edition of the Federal Register.
OFCCP's proposed rule would strengthen the affirmative action requirements established in Section 503 of the Rehabilitation Act of 1973 obligating federal contractors and subcontractors to ensure equal employment opportunities for qualified workers with disabilities. The proposed regulatory changes detail specific actions contractors must take in the areas of recruitment, training, record keeping and policy dissemination — similar to those that have long been required to promote workplace equality for women and minorities. In addition, the rule would clarify OFCCP's expectations for contractors by providing specific guidance on how to comply with the law.
"This proposed rule represents one of the most significant advances in protecting the civil rights of workers with disabilities since the passage of the Americans with Disabilities Act," said Secretary of Labor Hilda L. Solis. "President Obama has demonstrated a commitment to people with disabilities. This proposed rule would help federal contractors better fulfill their legal responsibility to hire qualified workers with disabilities."
Although Section 503 regulations have been in place for decades, the current unemployment rate for people with disabilities is 13 percent, 1 1/2 times the rate of those without disabilities. Even more discouraging, data published last week by the department's Bureau of Labor Statistics show stark disparities facing working-age individuals with disabilities, with 79.2 percent outside the labor force altogether, compared to 30.5 percent of those without disabilities.
"For nearly 40 years, the rules have said that contractors simply need to make a 'good faith' effort to recruit and hire people with disabilities. Clearly, that's not working," said OFCCP Director Patricia A. Shiu. "Our proposal would define specific goals, require real accountability and provide the clearest possible guidance for employers seeking to comply with the law. What gets measured gets done. And we're in the business of getting things done."
Establishing a 7 percent hiring goal for the employment of individuals with disabilities would be a tool for contractors to measure the effectiveness of their affirmative action efforts and thereby inform their decision-making. The proposed rule also would enhance data collection and record-keeping requirements — including for documentation and processing of requests for reasonable accommodation — in order to improve accountability. Additionally, it would ensure annual self-reviews of employers' recruitment and outreach efforts, and add a new requirement for contractors to list job openings to increase their pools of qualified applicants.
To read the notice of proposed rulemaking or submit a comment, visit the federal e-rulemaking portal at http://www.regulations.gov. Comments also can be submitted by mail to Debra Carr, Office of Federal Contract Compliance Programs, U.S. Department of Labor, Room C-3325, 200 Constitution Ave. NW, Washington, D.C. 20210. All comments must be received by Feb. 7, 2012, and should include identification number (RIN) 1250-AA02.
In addition to Section 503, OFCCP enforces Executive Order 11246 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974. As amended, these three laws require those who do business with the federal government, both contractors and subcontractors, to follow the fair and reasonable standard that they take affirmative action and not discriminate in employment on the basis of sex, race, color, religion, national origin, disability or status as a protected veteran. For general information, call OFCCP's toll-free helpline at 800-397-6251 or visit its website at http://www.dol.gov/ofccp/.
Read this news release en EspaƱol.
Letter from OFCCP Director on Proposed Disability Regs
U.S. Department of LaborDecember 9, 2011
Dear Friends:
Today we made history at the Department of Labor. This morning, OFCCP proposed a new rule to strengthen the affirmative action obligations of federal contractors and subcontractors to improve job opportunities for people with disabilities.
Our proposed rule would revise and update Section 503 of the Rehabilitation Act of 1973, giving millions of Americans with disabilities a better and fairer shot at competing for jobs. The proposal also aims to give businesses greater clarity on what is expected of them, leveling the playing field so that employers who play by the rules don’t have to compete at a disadvantage against those who shirk their legal responsibilities.
The rule we are proposing is historic: businesses with at least 50 employees and $50,000 or more in government contracts would be required to set a hiring goal of 7 percent for workers with disabilities.
That’s never been done before.
I believe that what gets measured gets done. When four out of every five working-age individuals with a disability are outside the labor force, we have serious work to do. This proposed rule is a concrete step we can take to help close that gap, to ensure that discouraged workers in the disability community have a reason to believe they too can have meaningful opportunities to work.
The concept of setting a goal is not new. A goal is yardstick for employers to assess how they’re doing and a tool to help us better evaluate their efforts. Our proposal would require employers to take specific actions with respect to recruitment, training, record-keeping and the dissemination of policies – actions similar to those which have long been required to promote equal opportunity in the workplace for women and minorities.
I invite you to read our proposal and submit comments on how we can make it better. Throughout this rulemaking process, we have sought as much input as possible from workers, employers, advocates, experts, scholars and the public at-large. Last year, we published an Advance Notice of Proposed Rulemaking – the government equivalent of a national brainstorming session – to get ideas on what this rule should look like. The input we received on the ANPRM and in stakeholder and town hall meetings throughout the country helped shape the rule we put before you now.
Our proposed rule is open for public comment from now until February 7, 2012. My staff and I will read, review and consider every comment we receive. That is part of the public trust we hold at the Department of Labor.
Now we need you to please look over our proposal and give us your honest and constructive feedback. Go to http://www.dol.gov/ofccp/503 to read and comment on the rule. There, you will also find a short summary of the proposed rule, a fact sheet you can print and share, answers to frequently asked questions and other useful materials.
Today we made history. Now we ask you to help us make possibility.
Many thanks,
Patricia A. Shiu
Director
Office of Federal Contract Compliance Programs
Letter from Director Patricia A. Shiu
Dear Friends:
Today we made history at the Department of Labor. This morning, OFCCP proposed a new rule to strengthen the affirmative action obligations of federal contractors and subcontractors to improve job opportunities for people with disabilities.
Our proposed rule would revise and update Section 503 of the Rehabilitation Act of 1973, giving millions of Americans with disabilities a better and fairer shot at competing for jobs. The proposal also aims to give businesses greater clarity on what is expected of them, leveling the playing field so that employers who play by the rules don’t have to compete at a disadvantage against those who shirk their legal responsibilities.
The rule we are proposing is historic: businesses with at least 50 employees and $50,000 or more in government contracts would be required to set a hiring goal of 7 percent for workers with disabilities.
That’s never been done before.
I believe that what gets measured gets done. When four out of every five working-age individuals with a disability are outside the labor force, we have serious work to do. This proposed rule is a concrete step we can take to help close that gap, to ensure that discouraged workers in the disability community have a reason to believe they too can have meaningful opportunities to work.
The concept of setting a goal is not new. A goal is yardstick for employers to assess how they’re doing and a tool to help us better evaluate their efforts. Our proposal would require employers to take specific actions with respect to recruitment, training, record-keeping and the dissemination of policies – actions similar to those which have long been required to promote equal opportunity in the workplace for women and minorities.
I invite you to read our proposal and submit comments on how we can make it better. Throughout this rulemaking process, we have sought as much input as possible from workers, employers, advocates, experts, scholars and the public at-large. Last year, we published an Advance Notice of Proposed Rulemaking – the government equivalent of a national brainstorming session – to get ideas on what this rule should look like. The input we received on the ANPRM and in stakeholder and town hall meetings throughout the country helped shape the rule we put before you now.
Our proposed rule is open for public comment from now until February 7, 2012. My staff and I will read, review and consider every comment we receive. That is part of the public trust we hold at the Department of Labor.
Now we need you to please look over our proposal and give us your honest and constructive feedback. Go to http://www.dol.gov/ofccp/503 to read and comment on the rule. There, you will also find a short summary of the proposed rule, a fact sheet you can print and share, answers to frequently asked questions and other useful materials.
Today we made history. Now we ask you to help us make possibility.
Many thanks,
Patricia A. Shiu
Director
Office of Federal Contract Compliance Programs
Letter from Director Patricia A. Shiu
Tuesday, October 25, 2011
Proposed Contractor Compensation Data Collection Tool Will Enhance Accountability and Transparency
The following is a letter to the Department of Labor's OFCCP in support of it's proposed Data Collection Tool
POGO - Project on Government Oversight
October 11, 2011
Debra A. Carr, DirectorDivision of Policy, Planning, and Program DevelopmentOffice of Federal Contract Compliance ProgramsRoom C-3325200 Constitution Avenue, NWWashington, DC 20210
Submitted via Regulations.gov
Subject: RIN 1250-AA03
Dear Ms. Carr:
The Project On Government Oversight (POGO) provides the following public comment to RIN 1250-AA03, “Non-Discrimination in Compensation; Compensation Data Collection Tool,” (76 Fed. Reg. 49398, August 10, 2011). The Office of Federal Contract Compliance Programs (OFCCP) seeks input on a proposal to develop and implement a tool to collect compensation data from federal supply and service contractors and subcontractors.
As an independent nonprofit organization committed to achieving a more accountable and transparent federal government, POGO has a keen interest in federal contracting matters. POGO supports the creation of this compensation data collection tool. It will improve OFCCP’s ability to identify, and ultimately eliminate, discriminatory pay practices by federal contractors, which may improve overall performance of the government’s contractor workforce. It will also help the government keep better track of the contractor workforce.
More Responsible Contractors, Higher Quality Goods and Services
The award of contracts is predicated on the basic principle of responsibility, which, according to the Federal Acquisition Regulation (FAR), includes “a satisfactory record of integrity and business ethics.”[1] POGO believes that a contractor’s labor practices, including its employee compensation practices, constitute a large part of its record of integrity and business ethics. The proposed compensation data collection tool will improve the government’s ability to determine companies’ responsibility, which in turn will lead to better contracting decisions and help the agencies achieve their missions.
Recent studies have confirmed that contractors’ labor practices–how they treat their employees in terms of compensation and workplace conditions–directly affect the quality of goods and services they deliver to their government customers.[2] Unfortunately, contractors with checkered or questionable labor practice track records still make up a substantial segment of the government’s vendor list. For example, POGO’s Federal Contractor Misconduct Database (www.contractormisconduct.org), which tracks the misconduct records of the largest federal contractors, shows that the government awards billions of taxpayer dollars to companies with multiple instances of gender, race, religion, ethnicity, and disability-based discrimination resulting in millions of dollars in fines, penalties, and legal settlements.
The federal government is starting to accept that a direct correlation exists between a contractor’s labor practices and the overall quality of its goods and services. As a result, there is movement toward placing greater emphasis on criteria such as a company’s compensation practices when making responsibility determinations.
A More Accurate Picture of the Size and Cost of the Contractor Workforce
OFCCP’s proposed data collection tool also has the potential for enabling the government to better monitor and assess the size of its “shadow” contractor workforce, as well as the savings or excessive costs resulting from reliance upon contractors. Currently, the federal government does not keep timely and accurate statistics about its contractor workforce: the number of employees, the race/ethnicity/gender make-up of the workforce, and the wages and benefits contractors pay their workers. This leaves the government unable to assess whether using contractors saves money and helps agencies achieve their missions.
POGO suggests that the new tool be designed and utilized to facilitate specific public/private sourcing decisions as well as to facilitate cost effectiveness analyses of program and agency contracting practices.
Specifically, POGO makes the following recommendations:
1. Design two sets of questions, one crafted for small business contractors, the other for larger contractors. Much of the proposed data would not be cost-beneficial as applied to small business contractors. The tool should apply to all federal contractors – supply and service contractors, as well as construction contractors. Data should be collected periodically to establish accurate trend lines on the size and cost of the government’s contractor workforce. 2. Design the tool to require contractors to provide contract-specific information as well as company-wide data, thereby facilitating more valid and reliable public/private cost comparisons.3. Design the tool to require contractors to provide data not only for themselves but also for all tiers of subcontractors providing services under each specific contract. 4. Regarding which job classification system to adopt, OPM’s General Schedule Classification System is preferable because it permits the best match for comparing contractor compensation with federal employee compensation. If OFCCP adopts the Bureau of Labor Statistics’ Standard Occupational Classification (SOC) system, it should upgrade and update OPM’s crosswalk between the GS and SOC job classifications.5. Because there are significant variances in the range of compensation within any job classification, POGO recommends adopting a method for stratifying levels of compensation within each job classification, similar to OPM’s stratification system. In addition, this breakdown should be contract specific to allow for valid and reliable public/private cost comparisons.6. There is value in collecting data on both an establishment basis as well as a nationwide basis, as costs and practices vary in different markets and locales.7. Companies bidding on federal contracts should be required to submit compensation data as part of the request for proposal process. This is most critical to an agency’s ability to make fair and reasonable cost comparisons that should inform their sourcing decisions.8. OFCCP should require contractors to submit data electronically. These submissions should also be made available to the public in a format that fully describes and explains the data. This will allow the public to monitor whether the government is effectively analyzing the data.9. OFCCP should confer with other federal agencies (for example, the Office of Personnel Management, the Office of Federal Procurement Policy, the Bureau of Labor Statistics, and the Office of Management and Budget) to ensure that this data collection tool is achieving its goals without imposing unnecessary duplication.
ConclusionThe proposed compensation data collection tool would greatly enhance government transparency and accountability. Past experience with a similar initiative, the OFCCP’s 2000 Equal Opportunity Survey, strongly suggests that this tool could provide valuable information with minimal burden on contractors.
Thank you for your consideration of these comments.
Sincerely,
Neil Gordon Investigator ngordon@pogo.org
http://www.pogo.org/pogo-files/letters/contract-oversight/co-ca-20111011.html
POGO - Project on Government Oversight
October 11, 2011
Debra A. Carr, DirectorDivision of Policy, Planning, and Program DevelopmentOffice of Federal Contract Compliance ProgramsRoom C-3325200 Constitution Avenue, NWWashington, DC 20210
Submitted via Regulations.gov
Subject: RIN 1250-AA03
Dear Ms. Carr:
The Project On Government Oversight (POGO) provides the following public comment to RIN 1250-AA03, “Non-Discrimination in Compensation; Compensation Data Collection Tool,” (76 Fed. Reg. 49398, August 10, 2011). The Office of Federal Contract Compliance Programs (OFCCP) seeks input on a proposal to develop and implement a tool to collect compensation data from federal supply and service contractors and subcontractors.
As an independent nonprofit organization committed to achieving a more accountable and transparent federal government, POGO has a keen interest in federal contracting matters. POGO supports the creation of this compensation data collection tool. It will improve OFCCP’s ability to identify, and ultimately eliminate, discriminatory pay practices by federal contractors, which may improve overall performance of the government’s contractor workforce. It will also help the government keep better track of the contractor workforce.
More Responsible Contractors, Higher Quality Goods and Services
The award of contracts is predicated on the basic principle of responsibility, which, according to the Federal Acquisition Regulation (FAR), includes “a satisfactory record of integrity and business ethics.”[1] POGO believes that a contractor’s labor practices, including its employee compensation practices, constitute a large part of its record of integrity and business ethics. The proposed compensation data collection tool will improve the government’s ability to determine companies’ responsibility, which in turn will lead to better contracting decisions and help the agencies achieve their missions.
Recent studies have confirmed that contractors’ labor practices–how they treat their employees in terms of compensation and workplace conditions–directly affect the quality of goods and services they deliver to their government customers.[2] Unfortunately, contractors with checkered or questionable labor practice track records still make up a substantial segment of the government’s vendor list. For example, POGO’s Federal Contractor Misconduct Database (www.contractormisconduct.org), which tracks the misconduct records of the largest federal contractors, shows that the government awards billions of taxpayer dollars to companies with multiple instances of gender, race, religion, ethnicity, and disability-based discrimination resulting in millions of dollars in fines, penalties, and legal settlements.
The federal government is starting to accept that a direct correlation exists between a contractor’s labor practices and the overall quality of its goods and services. As a result, there is movement toward placing greater emphasis on criteria such as a company’s compensation practices when making responsibility determinations.
A More Accurate Picture of the Size and Cost of the Contractor Workforce
OFCCP’s proposed data collection tool also has the potential for enabling the government to better monitor and assess the size of its “shadow” contractor workforce, as well as the savings or excessive costs resulting from reliance upon contractors. Currently, the federal government does not keep timely and accurate statistics about its contractor workforce: the number of employees, the race/ethnicity/gender make-up of the workforce, and the wages and benefits contractors pay their workers. This leaves the government unable to assess whether using contractors saves money and helps agencies achieve their missions.
POGO suggests that the new tool be designed and utilized to facilitate specific public/private sourcing decisions as well as to facilitate cost effectiveness analyses of program and agency contracting practices.
Specifically, POGO makes the following recommendations:
1. Design two sets of questions, one crafted for small business contractors, the other for larger contractors. Much of the proposed data would not be cost-beneficial as applied to small business contractors. The tool should apply to all federal contractors – supply and service contractors, as well as construction contractors. Data should be collected periodically to establish accurate trend lines on the size and cost of the government’s contractor workforce. 2. Design the tool to require contractors to provide contract-specific information as well as company-wide data, thereby facilitating more valid and reliable public/private cost comparisons.3. Design the tool to require contractors to provide data not only for themselves but also for all tiers of subcontractors providing services under each specific contract. 4. Regarding which job classification system to adopt, OPM’s General Schedule Classification System is preferable because it permits the best match for comparing contractor compensation with federal employee compensation. If OFCCP adopts the Bureau of Labor Statistics’ Standard Occupational Classification (SOC) system, it should upgrade and update OPM’s crosswalk between the GS and SOC job classifications.5. Because there are significant variances in the range of compensation within any job classification, POGO recommends adopting a method for stratifying levels of compensation within each job classification, similar to OPM’s stratification system. In addition, this breakdown should be contract specific to allow for valid and reliable public/private cost comparisons.6. There is value in collecting data on both an establishment basis as well as a nationwide basis, as costs and practices vary in different markets and locales.7. Companies bidding on federal contracts should be required to submit compensation data as part of the request for proposal process. This is most critical to an agency’s ability to make fair and reasonable cost comparisons that should inform their sourcing decisions.8. OFCCP should require contractors to submit data electronically. These submissions should also be made available to the public in a format that fully describes and explains the data. This will allow the public to monitor whether the government is effectively analyzing the data.9. OFCCP should confer with other federal agencies (for example, the Office of Personnel Management, the Office of Federal Procurement Policy, the Bureau of Labor Statistics, and the Office of Management and Budget) to ensure that this data collection tool is achieving its goals without imposing unnecessary duplication.
ConclusionThe proposed compensation data collection tool would greatly enhance government transparency and accountability. Past experience with a similar initiative, the OFCCP’s 2000 Equal Opportunity Survey, strongly suggests that this tool could provide valuable information with minimal burden on contractors.
Thank you for your consideration of these comments.
Sincerely,
Neil Gordon Investigator ngordon@pogo.org
http://www.pogo.org/pogo-files/letters/contract-oversight/co-ca-20111011.html
Monday, May 23, 2011
FOLLOWING UP ON OFCCPs’ PROPOSED RULES RECOMMENDING BENCHMARKS FOR HIRING VETERANS
DCI Consulting
by Art Gutman Ph.D., Professor, Florida Institute of Technology
May 16, 2011
Under a proposed rule by the OFCCP on April 26, 2011 federal contractors would be required for the first time to establish annual benchmarks for hiring veterans. In an interview on April 28, 2011, DCI president David Cohen told SHRM Online that he expects that the OFCCP would use referral and hiring ratios as evidence of discrimination in hiring by contractors. According to Cohen, the benchmarks would be expressed as the percentage of total hires who are protected veterans, and would apply to contractors with 50 or more employees and contracts of $100,000 or more (under 60-300). The basis for suit would be the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA), as amended, which requires each federal contractor with a federal contract of $100,000 or more to take affirmative action to hire and advance in employment qualified Armed Forces Service Medal veterans, disabled veterans, recently separated veterans and other protected veterans.
Full Blog Post: http://ofccp.blogspot.com/2011/05/following-up-on-ofccps-proposed-rules.html
by Art Gutman Ph.D., Professor, Florida Institute of Technology
May 16, 2011
Under a proposed rule by the OFCCP on April 26, 2011 federal contractors would be required for the first time to establish annual benchmarks for hiring veterans. In an interview on April 28, 2011, DCI president David Cohen told SHRM Online that he expects that the OFCCP would use referral and hiring ratios as evidence of discrimination in hiring by contractors. According to Cohen, the benchmarks would be expressed as the percentage of total hires who are protected veterans, and would apply to contractors with 50 or more employees and contracts of $100,000 or more (under 60-300). The basis for suit would be the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA), as amended, which requires each federal contractor with a federal contract of $100,000 or more to take affirmative action to hire and advance in employment qualified Armed Forces Service Medal veterans, disabled veterans, recently separated veterans and other protected veterans.
Full Blog Post: http://ofccp.blogspot.com/2011/05/following-up-on-ofccps-proposed-rules.html
Monday, May 9, 2011
OFCCP issues proposed rule to enhance veterans’ regulations for federal contractors
Lexology.com
Ogletree Deakins
Leigh M. Nason
USA
April 26 2011
In keeping with its mantra of “good jobs for everyone,” the Office of Federal Contract Compliance Programs (OFCCP) has published a Notice of Proposed Rulemaking to revise current nondiscrimination and affirmative action obligations of federal contractors under the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA). OFCCP is a program of the Department of Labor and is charged with enforcing affirmative action obligations of federal contractors and subcontractors.
Highlights of the proposed rule and attached appendices include:
Clarifying the definition of “protected veterans,” including “special disabled veterans,” “veterans of the Vietnam era,” “veterans who served on active duty in the Armed Forces during a war or in a campaign or expedition for which a campaign badge has been authorized,” and “recently separated veterans”;
Eliminating the classification of “other protected veteran”;
Strengthening affirmative action regulations, including requiring annual meetings with employees and management to discuss written affirmative action programs (AAPs), contractor responsibilities, and employee opportunities for advancement;
Detailing enhanced contractor responsibilities for providing information on job openings to appropriate employment service delivery systems in the manner that the employment service requires, and including identification of federal contractor status and contact information;
Requiring contractors to engage in outreach and recruitment efforts, including entering into “linkage agreements” and consulting the Employer Resources section of the National Resources Directory, as well as mandating certain steps to be taken when reviewing and documenting outreach efforts on an annual basis;
Increasing contractors’ data collection obligations with regard to referrals from state employment services, including priority veteran referrals and protected veteran applicants and hires;
Requiring all applicants to be invited to self-identify as a veteran prior to an offer of employment;
Requiring all such records to be maintained for five years;
Allowing OFCCP to identify and review contractors’ electronic data and requiring contractors to notify OFCCP of all formats (including electronic formats) in which records are available; and
Requiring contractors to establish annual “hiring benchmarks,” expressed as the percentage of total protected veterans that the contractor seeks to hire in the following year.
Full Story: http://www.lexology.com/library/detail.aspx?g=16b64264-43c6-45fa-ae18-1eb9535c560c&utm_source=Lexology+Daily+Newsfeed&utm_medium=HTML+email+-+Body+-+Federal+section&utm_campaign=Lexology+subscriber+daily+feed&utm_content=Lexology+Daily+Newsfeed+2011-05-04&utm_term=
Ogletree Deakins
Leigh M. Nason
USA
April 26 2011
In keeping with its mantra of “good jobs for everyone,” the Office of Federal Contract Compliance Programs (OFCCP) has published a Notice of Proposed Rulemaking to revise current nondiscrimination and affirmative action obligations of federal contractors under the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA). OFCCP is a program of the Department of Labor and is charged with enforcing affirmative action obligations of federal contractors and subcontractors.
Highlights of the proposed rule and attached appendices include:
Clarifying the definition of “protected veterans,” including “special disabled veterans,” “veterans of the Vietnam era,” “veterans who served on active duty in the Armed Forces during a war or in a campaign or expedition for which a campaign badge has been authorized,” and “recently separated veterans”;
Eliminating the classification of “other protected veteran”;
Strengthening affirmative action regulations, including requiring annual meetings with employees and management to discuss written affirmative action programs (AAPs), contractor responsibilities, and employee opportunities for advancement;
Detailing enhanced contractor responsibilities for providing information on job openings to appropriate employment service delivery systems in the manner that the employment service requires, and including identification of federal contractor status and contact information;
Requiring contractors to engage in outreach and recruitment efforts, including entering into “linkage agreements” and consulting the Employer Resources section of the National Resources Directory, as well as mandating certain steps to be taken when reviewing and documenting outreach efforts on an annual basis;
Increasing contractors’ data collection obligations with regard to referrals from state employment services, including priority veteran referrals and protected veteran applicants and hires;
Requiring all applicants to be invited to self-identify as a veteran prior to an offer of employment;
Requiring all such records to be maintained for five years;
Allowing OFCCP to identify and review contractors’ electronic data and requiring contractors to notify OFCCP of all formats (including electronic formats) in which records are available; and
Requiring contractors to establish annual “hiring benchmarks,” expressed as the percentage of total protected veterans that the contractor seeks to hire in the following year.
Full Story: http://www.lexology.com/library/detail.aspx?g=16b64264-43c6-45fa-ae18-1eb9535c560c&utm_source=Lexology+Daily+Newsfeed&utm_medium=HTML+email+-+Body+-+Federal+section&utm_campaign=Lexology+subscriber+daily+feed&utm_content=Lexology+Daily+Newsfeed+2011-05-04&utm_term=
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