Legal Update
Nov 20, 2024
OFCCP Releases FY 2025 Corporate Scheduling Announcement List and Scheduling Methodology
Seyfarth Synopsis: The Office of Federal Contract Compliance Programs (“OFCCP”) issued its FY 2025 Corporate Scheduling Announcement List (Release 1) (“CSAL”) today. This list provides advance notice of 2,000 compliance reviews, which OFCCP plans to schedule although the exact timing is unclear. Federal contractors and subcontractors should review the list to determine whether they have been selected for an upcoming compliance review.
OFCCP has posted its FY 2025 CSAL identifying the supply and service contractors on the scheduling list for 2025 and the Methodology for Developing the Supply and Service Scheduling List FY 2025 used to select contractors for review. The list is comprised of 2,000 federal contractor and subcontractor establishments for the following types of compliance reviews:
- 1,880 Standard Establishment Reviews
- 60 Corporate Management Compliance Evaluations (CMCE)
- 48 Functional Affirmative Action Program (FAAP) Reviews
- 12 University Reviews
Federal contractors should immediately review the CSAL because it serves as the only advance notification to contractors of upcoming compliance reviews. OFCCP has also confirmed that any unscheduled reviews from prior lists will still proceed as planned.
How Were Contractors Selected For Review?
According to the Scheduling Methodology released today, OFCCP compiled the pool of eligible contractors by analyzing federal contracts worth $50,000 or more from USAspending.gov. Exclusions included contracts with federal, state, and local governments, school districts, and construction-only contractors. Healthcare contracts covered under the TRICARE Final Rule and Veterans Affairs Health Benefits Program moratorium were also excluded. The agency prioritized establishments with the highest employee counts in each district jurisdiction and cross-referenced the information against the 2022 EEO-1 filings to obtain workforce counts. The agency further narrowed the list to those U.S.-based establishments with at least 400 employees, while establishments in U.S. territories required at least 50 employees.
OFCCP also eliminated establishments: (1) already under review, (2) in a monitoring period pursuant to a conciliation agreement, (3) currently within the exemption period following a closed review, (4) pending review based on prior scheduling lists, or (5) subject to an active separate facilities waiver.
The list was further refined by selecting the establishments with the highest employee counts per district office and capping selections at 10 establishments per parent company. Additional considerations included ensuring no more than one hospital and two universities/colleges per region were selected and limiting FAAP unit reviews at four per parent company. Despite OFCCP’s stated scheduling methodology, there are some anomalies on the CSAL including establishments still within an audit closure exemption period and contractors that have been selected for more than 10 audits.
Contractors should also note that while unscheduled cases from prior lists remain eligible for review, regions may transfer cases across district offices to balance workloads. The OFCCP further advised that contractor establishments with fewer than 400 employees at the time the Scheduling Letter is received remain subject to review, assuming they otherwise meet OFCCP’s jurisdictional thresholds.
What Should You Do If One (Or More) of Your Establishments Are on the List?
Contractors on the list should act now. Per OFCCP Directive (DIR) 2022-02 | Effective Compliance Evaluations and Enforcement, OFCCP may begin scheduling contractors immediately upon the publication of the CSAL.
A compliance review will not officially commence until OFCCP sends a contractor a notice using the Office of Management and Budget (OMB)-approved Scheduling Letter. It has been OFCCP’s general practice for the local District Office to first reach out to the federal contractor to obtain the contact information for the proper person to receive the Scheduling Letter, but that may not occur in all cases.
Upon receipt of the Scheduling Letter, a contractor will have 30 days to submit its affirmative action program (“AAP”) and support data for the establishment under review. As such, advance preparation will be key, including: (1) identifying internal resources for supporting the audit; (2) updating and reviewing the establishment’s AAPs, adverse impact analyses, outreach efforts, compensation data, and progress toward goals; and (3) ensuring compliance practices, policies and required self-assessments are in place.
Workplace Solutions
We encourage you to contact the authors of this article or a member of Seyfarth’s People Analytics team if you seek assistance regarding OFCCP’s CSAL or affirmative action compliance.