Equitable Federal Contractor Workplaces

Ensure Greater Compliance Among OFCCP Subcontractors

Description :

Ensure Greater Compliance Among OFCCP Subcontractors by Requiring Subcontract Award Notification

Currently, construction contractors are required to give written notice to OFCCP within 10 working days of awarding a construction subcontract in excess of $10,000 (41 CFR 60-4.2). https://www.dol.gov/agencies/ofccp/contract-award-notifications

This requirement gives OFCCP visibility into construction subcontractors. There is no similar requirement for supply and service contractors, which leads to many supply and service subcontractors not aware of their OFCCP compliance obligations as a condition of their federal subcontract and can lead to non-compliance. While there is an EEO clause required in subcontracts and purchase orders, it does not achieve the goal of bringing visibility and driving awareness of and accountability for compliance obligations. 

Since the OFCCP already has a system in place for subcontract award notification for construction, it can leverage and use the same system for the reporting of supply and service subcontractors. There are two possible ways to implement this. The first would place the responsibility of reporting on the prime contractor, similar to the requirement for construction contractors. To reduce the burden on prime contractors, another way this can be implemented is by shifting the burden of reporting to the subcontractor, and have the prime contractor include in its subcontract a clause stating the subcontractor requirement to report its subcontract award to OFCCP.

By bringing visibility to all federal contractors and subcontractors, we can ensure greater compliance, reach and educate more contractors of their obligations, drive accountability, and create more workplaces that are diverse and inclusive.

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Idea No. 138