Wednesday, July 22, 2009

OFCCP flagging contractors who receive bailout money

There has been significant discussion around the country recently stating that contractors who receive bailout money from the Federal government will be subjected to additional scrutiny from the OFCCP. Additional scrutiny allegedly meaning more audits!

Note that it is expected that contractors who receive bailout money will be listed in the Federal Contractor Selection System (FCSS) for potential audits and the Pre-Award list on the OFCCP site is now identifying companies as having received or not received bailout money.

The OFCCP website offers the following statement on their website under: http://www.dol.gov/esa/ofccp/arra_web.html

Quote from the website:
"Implementing the American Recovery and Reinvestment Act of 2009 (ARRA):
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."

In addition, contractors who have recently undergone an FCSS audit (using the active case managment method) but have since received ARRA funds can then be subject to an ARRA audit after only 6 months (as opposed to the normal 24 month window). There is also not a limit on the number of open ARRA audits (they can have more than 25 current audits if the contractor has received ARRA funding).

Please visit OFCCP's website for more information:
http://www.dol.gov/esa/ofccp/arra_data/arra_faqs.htm

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