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By Kerrie R. Heslin, Esq.

What is this?
In an effort to ensure federal contractors and subcontractors are meeting their affirmative action obligations, the Office of Federal Contract Compliance Programs (OFCCP) is mandating that all supply and service contractors and subcontractors that are required to have Affirmative Action Programs (AAP) certify annually through an online certification portal. This will make it very easy for the OFCCP to identify companies that are out of compliance and target them for audit.

Who must have an Affirmative Action Program (AAP)?
Federal contractors and subcontractors that hold a contract of $50,000 or more and employ 50 or more employees are required to develop and maintain an AAP pursuant to Executive Order 11246 and Section 503 of the Rehabilitation Act of 1973. If a contractor has at least 50 employees and a contract of $150,000 or more, it must develop an AAP pursuant to the Vietnam Era Veterans’ Readjustment Assistance Act of 1974.

How does a company certify?
Companies must register on the OFCCP portal and gather critical information before doing so.

When is certification required?
Existing contractors must certify by June 30, 2022, and annually thereafter. Companies that become covered contractors after June 30, 2022, are required to develop AAPs within 120 days of commencement of the contract or subcontract, and certify through the portal within 90 days from the development of the AAP.

What if my company fails to certify?
Companies must take this requirement very seriously. Companies that do not certify their AAP status on the portal risk being selected for compliance evaluations and potentially losing out on federal contracts.

If you need assistance determining whether your company is required to develop and maintain an Affirmative Action Program or would like guidance on certifying on the OFCCP’s portal by June 30, 2022, please reach out to Kerrie R. Heslin, Esq. or the attorney at NFC with whom you regularly work.


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