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Office of Federal Contract Compliance Programs (OFCCP)

Corporate Management Compliance Evaluation

What is the purpose of a CMCE?

A CMCE is designed to ensure that qualified minorities, women, persons with disabilities and protected veterans do not encounter artificial barriers to future advancement into mid-level and senior corporate management. The CMCE focuses on the contractor's obligation to make good faith efforts to ensure equal employment opportunity extends to all levels of the workforce, including the developmental and selection processes for corporate management positions. In addition, the CMCE will determine whether there is any unlawful discrimination in the selection process for mid-level and senior corporate management positions.

Does a "Corporate Management Review" continue to exist or has the term been replaced by "Corporate Management Compliance Evaluation?"

The term "compliance evaluation" was adopted to reflect the overall compliance assessment process and the combination of investigative procedures authorized in 41 CFR 60-1.20. In that light, the term "Corporate Management Review" has been renamed "Corporate Management Compliance Evaluation." In all other respects, the CMCE is the same as the Corporate Management Review.

How was the CMCE List developed?

The CMCE List was developed in two ways:

  1. The results of the new Federal Contractor Selection System (FCSS) model was applied to the list of companies who completed Status 3 information (corporate headquarters) in their most current EEO-1 Report and had never undergone a CMCE in the past. These facilities were rank ordered based on the criteria used to rank non-headquarters establishments.
  2. Those corporate headquarters that had been reviewed at any time more than 24 months before the list was developed were next on the list, ranked from earliest date of evaluation completion to most recent date of evaluation completion.

How frequently does a contractor's headquarters establishment undergo a CMCE?

OFCCP does not have a fixed period for scheduling a CMCE of a contractor's corporate headquarters. Generally, OFCCP will not schedule a contractor's headquarters for a CMCE more frequently than every two years. Further, first priority in scheduling is given to contractors that have never had a CMCE. Contractors that have undergone a CMCE more than 24 months prior to the development of the scheduling lists are next in line for evaluations starting with those contractors with the earliest CMCE closure dates.

Which federal contractors are eligible to be included on the CMCE List?

Supply and service contractors with 4,000 or more employees in the organization and more than one reporting subordinate establishment are included on the CMCE List. The headquarters establishments of contractors with fewer than 4,000 employees are included on the FCSS lists for compliance evaluations.

Are contractors that have a Functional Affirmative Action Program (FAAP) agreement included on the CMCE List?

A contractor with a FAAP agreement may be included on the CMCE List if the corporate headquarters is not covered under the FAAP agreement. Some contractors with FAAP agreements maintain an establishment-based AAP for their corporate headquarters. If those contractors meet the eligibility criteria for a CMCE, their headquarters establishments would be included on the CMCE List. Where the contractor's corporate headquarters is one of the functional or business units covered by the FAAP agreement, it will be considered for evaluations under the selection and scheduling procedures for contractors with FAAP agreements.

Once a CMCE has been completed, when can the contractor's headquarters establishment be evaluated again?

OFCCP will follow its policy of not scheduling an establishment for compliance evaluation within the 24 month-period following the completion of a compliance evaluation. Thus, an eligible headquarters establishment will not be scheduled for a CMCE for at least 24 months from the date of the CMCE Notice of Review Completion (if no violations were found) or the date of the Conciliation Agreement (CA) (if violations were found and resolved with a CA).

What other exceptions to scheduling are available for a contractor corporation?

A contractor corporation will not be scheduled for a CMCE if the corporate headquarters is under a consent degree which is still under administrative or judicial supervision or if the headquarters is within the reporting period of a current Conciliation Agreement. In addition, the Secretary of Labor's Opportunity and EVE Awards recipients are given a defined a three-year moratorium, from the date the award is received, on being scheduled for compliance evaluations unless: (1) a complaint suggests equal employment opportunity problems that warrant a compliance evaluation; (2) State Fair Employment agencies or EEOC investigations reveal significant equal employment opportunity problems; or (3) the Deputy Assistant Secretary, acting upon a credible report of a violation of a law enforced by OFCCP, determines that a compliance evaluation is warranted. In addition, in the case of EVE award recipients, a corporate headquarters would be entitled to the moratorium only if the company is the recipient of a "corporate-wide EVE award."

Will the number of establishments selected for FCSS compliance evaluations affect whether a contractor's corporate headquarters will be selected for a CMCE?

No. The number of FCSS compliance evaluations that a multi-establishment contractor has scheduled will not affect the scheduling of the corporate headquarters for a CMCE. Thus, a contractor's headquarters establishment may be scheduled for a CMCE regardless of whether, or how many, of its other establishments have been scheduled for an FCSS compliance evaluation.

What practical things can a company do to prepare for a CMCE?

There are several steps the company can take to prepare for the evaluation.

First, ensure that the leadership of the corporation learns of the compliance evaluation. The CMCE will focus on the top corporate leadership; their participation and cooperation is essential during the evaluation. You can ask OFCCP to make a presentation to your leadership to explain the evaluation process.

Second, ensure that the Affirmative Action Programs and the related supporting data are updated. This is also a good time to review all self audits conducted, update them and take any appropriate corrective action. If a corporation needs assistance in conducting a self-audit, it should contact OFCCP.

Third, if not established yet, develop a relationship with the OFCCP team that will be conducting the evaluation. Normally, a CMCE is headed by a Regional Director or Deputy Regional Director with the support of the local district office. The Regional Director or a CMCE representative can clear up any questions a corporation may have about the scheduling letter, its attachments, and any concerns you have about the evaluation.

Whom should the contractor contact for information about the CMCE process?

Questions about the compliance evaluation process should be directed to your nearest OFCCP Regional or District Area Office.