This week the General Accounting Office (GAO) issued a report to the House of Representatives Committee on Education and the Workforce on its recent audit of OFCCP.  The report reviews (1) how the Agency conducts audits; and, (2) the Agency’s outreach assistance and guidance efforts. 

The 56-page report – titled “Strengthening Oversight Could Improve Federal Contractor Nondiscrimination Compliance” – finds OFCCP audits only “about 2 percent of federal contractor establishments annually.”  Notably, the report concludes OFCCP “does not have reasonable assurance that it is focusing its compliance efforts on those contractors with the greatest risk of noncompliance.”   

The GAO is also concerned 85% of contractors do not timely submit AAPs within the 30-day deadline which “suggests that OFCCP processes do not ensure that all contractors are complying with their obligation to complete and annually update an AAP.”  Some contractors have already seen requests for extensions to submit their AAPs in response to Scheduling Letters shortened or outright denied.  It is likely this practice will continue, and even intensify, in the wake of this observation from the GAO. 

The report makes six recommendations for OFCCP.  Included are recommendations to:

  •  revamp the audit selection process to better target noncompliant contractors
  • develop a mechanism to monitor AAPs on a regular basis, including possibly electronically collecting AAPs and contractor certification of annual updates
  • make changes to the current scheduling process to addresses “changes in human capital and not rely exclusively on geographic location”

The GAO plans to provide updated information when it confirms what actions the agency has taken in response each recommendation.

In response to the release of the report, the House Committee to which the report was issued, published a statement in which it commented

This report demonstrates that there are tools already in place to protect workers and hold federal contractors accountable. Despite the rhetoric we hear from the administration and its Democrat allies in Congress, this also shows the overwhelming majority of employers do the right thing and follow the law

Stay tuned for GAO updates, other developments and impacts of this report on OFCCP’s enforcement actions.

Tags: compliance reviews, GAO, Government Accounting Office, government contractors, House Committee on Education and the Workforce, OFCCP, Office of Federal Contract Compliance Programs
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Photo of Laura A. Mitchell Laura A. Mitchell

Laura Mitchell is a principal in the Denver office of Jackson Lewis P.C. and leads the firm’s Workplace Analytics and Preventive Strategies Pay Equity subgroup. She partners with employers to evaluate, develop and implement policies and practices that ensure workplace fairness while mitigating…

Laura Mitchell is a principal in the Denver office of Jackson Lewis P.C. and leads the firm’s Workplace Analytics and Preventive Strategies Pay Equity subgroup. She partners with employers to evaluate, develop and implement policies and practices that ensure workplace fairness while mitigating legal risk. Laura is a guiding force in the firm’s most specialized and technical practice areas where she leverages an analytics-focused approach to partner with her clients in building legally compliant programs around which they can anchor their workplaces achieving productivity and stability.

Laura understands that creating a competitive advantage for employers in today’s workplace involves using a data-driven approach to counsel companies on the development of proactive and equitable non-discriminatory practices in hiring, promotions, separations and pay—and where advancements in technology can create both opportunities for efficiencies and risk that can be measured. Committed to putting her clients’ organizational goals first and foremost while balancing legal risk, Laura views herself as an extension of her clients’ team, responsible for providing proactive guidance and engaging in transparent, ongoing communication. Staying the course with employers across their organizational journey while balancing legal compliance obligations throughout their employees’ lifecycle ensures Laura’s position as a go-to resource.

Laura works with companies across all industries—both new and well-established multi-national organizations of all sizes—to realize the combined vision of legal compliance, increased productivity and economic growth enhanced by a focus on pay equity.  As part of the pay equity journey, she advises employers on the evolving pay transparency landscape, working to align compliant practices with the practical realities of the business world.

Laura partners closely with government contractors to understand, implement and demonstrate compliance with their EEO regulatory and compliance obligations. She also works closely with non-government contractor clients to conduct risk assessments of their programs, policies, and training to align with federal and state anti-discrimination requirements.

Laura is the editor and a principal contributor of the GovCon Employment Exchange blog and presents on pay equity and government contractor obligations. To round out her days, Laura enjoys spending time with her family and friends attending sports events, working out, riding her bike, playing pickleball and taking in Colorado’s incomparable sunsets.

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