May 23, 2022

Volume XII, Number 143


May 20, 2022

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Notices of Pending Compliance Reviews Issued to Contractors

Government contractors should take note that the Office of Federal Contract Compliance (OFCCP) recently issued prescheduling notices to advise federal contractors that an establishment may be the subject of a compliance review.

Commonly referred to as CSALs, the Corporate Scheduling Announcement Letters recently sent went directly to local facilities, rather than the corporate headquarters of the companies that may be subject to the review. Therefore, contractors and subcontractors should immediately determine whether any facilities received the notice. Whether a compliance review actually occurs following receipt of the CSAL depends on the workload within the District Office which will conduct the review. These letters are sent to establishments twice in a federal fiscal year cycle (October 1 through September 30). This is the second of two scheduling notices in this current fiscal year.

Among the highlights of the establishments selected for compliance reviews are:

Total establishments to be reviewed: 2,193

Number of companies represented: 856

Number of industries: 17 (based on 2-digit NAICS Code)

Number of corporate management compliance evaluations[1]: 40

The OFCCP indicates that federal contractor establishments are selected for compliance evaluation based on the neutral Federal Contractor Selection System, which involves a variety of factors, starting with those contractors listed on the Federal Procurement Data System. Thereafter, the EEO-1 employer information reports, Dun & Bradstreet data, census data and statistical thresholds such as industry type and the employee counts for the federal contractor establishments are used. Notably, the first and 25th establishment listed for a compliance review in each District Office list are identified for a full compliance review per the Active Case Enforcement Directive (ACE).

In scheduling reviews based on the FY2014 list, the OFCCP may schedule compliance reviews for up to 35 establishments for each corporate parent, and may also schedule compliance reviews for contractors not on the list for the pre-award and Functional Affirmative Action Plan compliance, as well as directed review and Conciliation Agreement follow up.

[1] Standard compliance review plus emphasis on management development and selection.

©2022 MICHAEL BEST & FRIEDRICH LLPNational Law Review, Volume IV, Number 56

About this Author

Thomas Obenberger, Michael Best Law Firm, Labor and Employment Attorney

Tom advises Fortune 500 and other national corporations on all aspects of labor, employment and discrimination law. Clients value his extensive, multistate experience spanning a range of industries, including manufacturing, service, chemicals, financial, retail, food, pharmaceuticals, and warehouse/distribution. Clients also turn to Tom for guidance on labor and employment matters arising out of major acquisitions, divestitures, and consolidation of operations.

Marion Smith, Michael Best Law Firm, Director of Employment Relations and Compliance
Director of Employment Relations and Compliance

Marion applies her extensive experience to a broad range of complex labor and employment and strategic planning issues, working with our lawyers on behalf of Michael Best clients.

Clients turn to Marion for comprehensive executive search services and placement for public and private entities, as well as targeted search services assistance in areas ranging from background and reference checking to preparation and negotiation of initial employment agreements.

She also provides comprehensive management training in...