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Through its notice Monday, OFCCP announced its proposal for an annual Affirmative Action Program (AAP) certification process for federal contractors. In its justification for this plan, OFCCP stated it looks to create a “method for federal contractors to submit AAPs electronically to OFCCP when they are scheduled for a compliance evaluation.”

To ensure consistency, OFCCP developed a new online management portal called the Affirmative Action Program Verification Interface (AAP-VI). The AAP-VI would allow federal contractors to certify their AAPs efficiently, increase compliance, and “optimize the compliance review process.”

New OFCCP Proposal for Annual AAP Compliance Verification

Contractors would be required to create an account through login.gov and confirm their contractor information. Then on an annual basis, users would log in to submit their AAP compliance certification through the AAP-VI program. Users would select one of three options to fulfill their requirement:

  1. Entity has developed and maintained affirmative action programs at each establishment, as applicable, or each functional business unit.
  2. Entity has been party to a qualifying federal contract or subcontract for 120 days or more and has not developed and maintained affirmative action programs at each establishment, as applicable.
  3. Entity became a covered federal contractor or subcontractor within the past 120 days and therefore has not yet developed applicable affirmative action programs.

Existing contractors are given 90 days to comply with the certification requirement (once it takes effect). For new contractors and existing contractors who become subject to AAP requirements after the effective date, they will have 90 days from the time they develop their AAP.

Contractors can request compliance assistance from OFCCP during this 90-day period, and will not be penalized in any way for requesting any help. Following the first certification year, “OFCCP will set a date by which all existing contractors must renew their annual certification.”

Under this proposal, federal contractors would also be required to upload their AAPs through the AAP-VI program when undergoing compliance reviews. There is some consideration, n the future, that an annual upload of AAPs could be an additional certification option for these establishments.

While the current proposal is OFCCP’s preferred option, three alternatives were included in the supporting documentation as OFCCP seeks public comment. The additional options are:

Option 1:

  All contractors would be required to certify annually.  Contractors who are scheduled for a compliance evaluation will submit their AAPs as they currently do, via email or a delivery service.  The total burden in the first year is 46,759 hours at a monetary cost of $3,359,634.  The annual burden in subsequent years is 12,041 hours at a monetary cost of $865,146.

Option 2:

  All contractors would be required to certify and upload their AAPs on an annual basis.  The total burden in the first year is 70,139 hours at a monetary cost of $5,039,487.  The annual burden in subsequent years is 35,421 hours at a monetary cost of $2,544,999.

Option 3:

  All contractors would be required to certify every two years.  Contractors who are scheduled for a compliance evaluation will submit their AAPs as they currently do, via email or a delivery service.  The total burden in the first year is 41,914 hours at a monetary cost of $3,011,521.  The annual burden in subsequent years is 7,196 hours at a monetary cost of $517,033.
The deadline to submit public comment is November 13, 2020. For more information on OFCCP compliance and news, check out the Resources Library provided by Circa.

 

Author

Tim Muma
Product Marketing Lead
Circa

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