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Affirmative Action Plans: What Can New Federal Contractors Expect?

AAP Blog

So, you finally won that hard fought government bid. Congratulations, you are now officially a federal contractor! You might be thinking you have reached the end of the line and it’s time to sit back, relax, and enjoy your victory. If only.

Now is not the time to get too comfortable. You have attained federal contractor status and with that, comes all the fine print…namely The Office for Federal Contract Compliance Programs (OFCCP). Your organization will soon become aware of all the government regulations, executive orders, laws, and requirements that come along with winning the contract.

Most companies have an understanding of EEO (Equal Employment Opportunity) standards and obligations that have been established for the protection of minorities, women, and individuals with disabilities, but there is a bit more involved. It begins with implementing a written affirmative action plan (AAP). Your AAP is an official document that outlines your organization's commitment to diversity and equal employment opportunity for all.

The OFCCP, a division of the Department of Labor (DOL), is the enforcer of your federal contractor obligations. They take the administration of their office seriously and conduct various audits on a regular basis. These audits are to confirm federal contractors are maintaining records that pertain to Executive Order 11246, Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) and Section 503 of the Rehabilitation Act.

No employer wants to suffer the consequence of failing an OFCCP audit. Besides the bad publicity, penalties can include loss of contract, financial judgements and/or legal rulings. So, there’s value in working with experienced compliance providers you can trust. Providers who have been through the process numerous times and have existing relationships at the local, state, and national levels.

Here are some of the compliance obligations federal contractors must comply with:

Recruitment & Outreach – Posting and distribution of all external job openings to proper state workforce agencies and job banks, a tracked effort with veterans and individuals with disabilities and documented “good faith efforts” to address underutilization goals and benchmarks.

Job Distribution – Posting and distribution of all openings to state employment service delivery systems (ESDS), local diverse community-based organizations and securing veteran preference on state boards.

Pay Compensation – Analyses of impact ratios, utilization, and compensation system(s) to identify any inconsistencies based on race, gender, or ethnicity.

Verification & Reporting – Applicant lifecycle tracking and record keeping, statistical trends, and government reporting (EEO-1, Annual AAP Verification Certification, etc.)

Regulated Notifications – Posting and distribution in required EEO and AA language, providing self-identification opportunities, vendor notification requirements and online application system access.

You will need to adhere to various other laws, rules and regulations that are there for the protection of underrepresented classes, women, veterans, and individuals with disabilities. All these requirements can seem quite overwhelming. Have no fear—we are here to help!

Broadbean’s OFCCP Compliance Management has been providing contractors with prepared sections of your AAP and exclusively partners with OutSolve to fulfil the remainder of your government obligations. Our team and partners are experienced in working with federal contractors and their mandated obligations. Broadbean’s Compliance Team can guide you through this tricky intensive process so that you stay on track and keep your contract in good standing, to avoid costly penalties.

Contact us directly to find out more!