This chapter describes the procedures COs follow when conducting the on-site review of a compliance evaluation for a supply and service contractor. During an on-site review, COs gather data and information from the contractors, employees, applicants and others to better assess the contractor’s compliance with the regulations implementing Executive Order 11246, VEVRAA and Section 503,81 and with any other appropriate mandates.82 This chapter provides guidance to COs on how to prepare for, conduct and conclude an on-site review.
The nature and scope of the on-site review in each instance will vary depending on the type of compliance evaluation a CO is conducting and whether the CO has already identified potential problems. As noted in Chapter 1, Desk Audit, a compliance evaluation may consist of any one or any combination of the following investigative procedures.83
- Compliance Review. A comprehensive analysis and evaluation of the hiring and employment practices of the contractor, the written AAP, and the results of their affirmative action efforts. This procedure may proceed in three stages: desk audit, on-site review, and off-site analysis.
- Off-Site Review of Records. An analysis and evaluation of the AAP, or any part thereof, and supporting documentation.
- Compliance Check. A determination of whether the contractor maintained appropriate records consistent with 41 CFR 60-1.12, 41 CFR 60-300.80 and 41 CFR 60-741.80. At the contractor’s option, the contractor may provide the documents on-site or off-site.
- Focused Review. An on-site review that is restricted to one or more components of the contractor’s organization, or one or more aspects of the contractor’s employment practices.
Of the four options, the compliance review is the most common and is typically the most comprehensive. For this reason, this chapter focuses on the specific procedures COs follow when conducting an on-site review as a part of a compliance review.84 There are generally four major tasks in an on-site review:
- Investigating potential problem areas the CO identified at a desk audit;
- Verifying the contractor’s implementation of its AAP(s) or its assertions regarding its personnel activity and employment practices, or both;
- Investigating matters that cannot be fully examined at the desk audit; and
- Initiating resolution of identified violations.
The on-site review principles discussed in this chapter also provide guidance for performing an on-site review as part of other types of reviews. If the compliance evaluation is of a contractor that maintains a FAAP, then the evaluation will essentially be the same as the other processes. A possible addition is on-site visits to more than one location to address all of the components of the FAAP. Chapter 5 discusses FAAP reviews in more detail.
A preaward compliance evaluation covers the contractor’s compliance with Executive Order 11246, Section 503, and VEVRAA, and occurs primarily on-site unless it is converted to a postaward review.85 The purpose of a preaward compliance evaluation is to determine whether a prospective prime contractor or known first-tier subcontractor will be able to comply with the provisions of the equal opportunity clauses for Executive Order 11246, Section 503, and VEVRAA. For preaward reviews, the desk audit is normally part of the on-site review at the contractor’s establishment. COs conduct a postaward review in the same manner as a compliance review under 41 CFR 60-1.20(a)(1), 41 CFR 60-300.60(a)(1) and 41 CFR 60-741.60(a)(1), and they must cover a contractor’s compliance with Executive Order 11246, Section 503 and VEVRAA.
Complaint investigations include an on-site review that responds to the specific allegations raised in the complaint unless OFCCP converts a complaint into a full compliance review. Complaint investigations are discussed in detail in Chapter 6, Complaint Investigations.
81. The regulations implementing Executive Order 11246 applicable to supply and service contractors are at 41 CFR Part 60-1, Obligations of Contractors and Subcontractors; 41 CFR Part 60-2, Affirmative Action Programs; and 41 CFR Part 60-3, Uniform Guidelines on Employee Selection Procedures. Part 60-20 contains the regulations specifically covering Discrimination on the Basis of Sex; and Part 60-50 contains the Guidelines on Discrimination Because of Religion or National Origin. VEVRAA implementing regulations are at 41 CFR Part 60-300, and the regulations implementing Section 503 are at 41 CFR Part 60-741.
82. When on-site, OFCCP is responsible for assessing a contractor’s compliance with Executive Order 13496, if applicable.
83. 41 CFR 60-1.20, 41 CFR 60-300.60 and 41 CFR 60-741.60.
84. In light of their more limited scope, focused reviews and compliance checks may not always include all of the elements discussed in this chapter.
85. A preaward compliance evaluation is subject to specific timeframes and is conducted before the award of a nonconstruction contract of $10 million or more. See 41 CFR 60-1.20(d), 41 CFR 60-300.60(d) and 41 CFR 60-741.60(c). The preaward review requirement applies to prospective contractors and their known first-tier subcontractors with subcontracts of $10 million or more.