New Compliance Requirement for Federal Contractors

Beginning in 2022, federal contractors will have a new online portal to submit information about their affirmative action programs.

On August 31, 2021, the Office of Management and Budget (OMB) approved the Office of Federal Contract Compliance Programs’ (OFCCP) information collection request for the Affirmative Action Program Verification Interface, through a new online portal, referred to as the Contractor Portal.

Covered federal contractors and subcontractors (“contractors”) must use this portal to certify, on an annual basis, whether they have developed and maintained an affirmative action program for each establishment and/or functional unit, as applicable. In addition, the Contractor Portal will provide a secure way for scheduled contractors to submit their affirmative action program (AAP) to OFCCP during compliance evaluations.

Who is considered a contractor, required to have an affirmative action program, under Executive Order 11246, Section 503 (Section 503 of the Rehabilitation Act of 1973), and VEVRAA (Vietnam Era Veterans’ Readjustment Assistance Act of 1974)?
A non-construction federal contractor must develop and maintain a written affirmative action program for each of its establishments if it has 50 or more employees and:

• Has a contract of $50,000 or more and/or $150,000 or more under VEVRAA; or
• Has government bills of lading that, in any 12-month period, total or can reasonably be expected to total $50,000 or more; or
• Serves as a depository of government funds in any amount; or
• Is a financial institution that is an issuing and paying agent for U.S. savings bonds and savings notes in any amount.

Multi-establishment companies must have an individual AAP for each location, facility, or establishment that has 50 or more employees.

Important reporting dates for contractors

• On Feb. 1, 2022, contractors may begin registering for access to the portal. OFCCP will also send an email to each covered federal contractor in its jurisdiction, whose email information is available in its system, inviting them to register.
• On March 31, 2022, contractors will be able to utilize the certification feature in the portal to certify their AAP compliance.
• By June 30, 2022, existing contractors must certify whether they have developed and maintained an affirmative action program for each establishment and/or functional unit, as applicable.

More information about registration and certification will be forthcoming in the next few months. Additional information on the Contractor Portal, including Frequently Asked Questions, can be found on OFCCP’s Contractor Portal landing page. Members may also contact the 24/7 HR Hotline at (866) HR-HOTLINE (866.474.6854) or [email protected].

Or contact MRA’s Affirmative Action Team.