Office of Federal Contract Compliance Programs (OFCCP)

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Federal Contractor Selection System (FCSS) — Questions and Answers

• How does OFCCP select contractors establishment for a compliance evaluation?
• How does OFCCP plan to schedule the evaluations among the selected establishments?
• What scheduling cycle does OFCCP use for the FCSS?
• Is there a limit on the number of evaluations that can be scheduled per contractor?
• Can a contractor establishment that is not on the FCSS list be scheduled for a compliance evaluation?
• Can a contractor establishment that was evaluated recently be scheduled for another evaluation?

How does OFCCP select contractors establishment for a compliance evaluation?

OFCCP's Federal Contractor Selection System (FCSS) is an administratively neutral selection system that uses multiple information sources and analytical procedures to identify Federal contractor establishments for evaluation. The FCSS process may include the use of EEO-1 reports; development of threshold requirements, such as establishment size; random sampling; analysis of external Federal contract databases to better establish jurisdictional coverage; and a mathematical model that ranks Federal contractor establishments based on an indicator of potential workplace discrimination. OFCCP also schedules evaluations based on a variety of other factors, such as contract award notices, directed reviews, as a result of conciliation agreement monitoring or individual or class complaints, or as part of the agency's Corporate Management Compliance Evaluation (CMCE) or Functional Affirmative Action Plan (FAAP) initiatives.

One of the component's of OFCCP's selection system involves the use of a mathematical model that predicts the likelihood of a finding of systemic discrimination. The mathematical model is based on external research conducted by research firm Westat. Westat thoroughly analyzed data from five years of OFCCP compliance evaluations to formally identify and characterize relationships between reported EEO-1 workforce profiles and findings of discrimination (defined as a compliance evaluation that resulted in a conciliation agreement in the amount of $100,000 or more between 1995 to 2000). OFCCP's Division of Statistical Analysis further refined the Westat model to incorporate recently released Census data. The mathematical model involves multiple factors that compare the workforce profile of the establishment to those of establishments in the same industry classification and to that of the local labor market using 2000 Census data.

Contractors should note that while the mathematical model that is part of this system does assign a higher likelihood of discrimination to some establishments than others, and that this measure was used to make selections, a test of the model is underway. OFCCP also is researching other targeting methods and data sources to continually update the system. Furthermore, while the model develops an individual establishment measure, OFCCP does not rely upon those measures to conclude that discrimination exists in a particular establishment. The strength of such measures rests in their use in an aggregate setting to separate a large group of establishments with higher values from those with lower ones, which only on average, we expect to have greater need for a compliance evaluation. Given the limited conclusions that can be drawn from the individual results, contractors should not consider the model a tool for identifying discrimination at their establishments.

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How does OFCCP plan to schedule the evaluations among the selected establishments?

Once identified by the FCSS, establishments selected for evaluation appear on a computer-generated list developed by the OFCCP National Office. This list has the contractor establishments that each Regional/District Office is to schedule during the current scheduling cycle. When an office is ready to schedule an establishment for evaluation, it accesses a computer system -- maintained by the OFCCP National Office -- that releases to that office the name of the very next establishment on the list. The establishments are released one name at a time in the specific order determined by the National Office.

To ensure consistent and fair application of OFCCP's administratively neutral selection process, an office only has sequential access to its list and cannot schedule a particular contractor establishment before taking action on prior candidates. When an office gets the name of a contractor establishment, it must note in the computer system whether it will schedule the establishment for evaluation and, if so, must enter the date of the selection. If an office rejects the establishment for evaluation, it must identify the reason for the rejection. Offices must enter the above information regarding the selection or rejection before the system permits an office to access the next name on the list. All of this information is then recorded in an electronic database maintained by OFCCP's National Office.

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What scheduling cycle does OFCCP use for the FCSS?

For the past several years, OFCCP's scheduling cycle for supply and service contractor establishments has been based on its Fiscal Year, which runs from October 1 through September 30 of the next year. Each FCSS scheduling cycle generally includes two scheduling list releases. The first scheduling list is released to the OFCCP regional offices near the beginning of OFCCP's Fiscal Year, while the second scheduling list is released in late second quarter or early third quarter of the Fiscal Year, depending on regional office workload.

For Fiscal Year 2009, OFCCP's FCSS scheduling cycle will begin October 1, 2008, when a list of approximately 2500 establishments is released to OFCCP regional offices for scheduling during the week of October 6. A second list of 5000 contractor establishments will be released to OFCCP regional offices for scheduling on March 9, 2009. Regional offices may continue to schedule using these lists through September 30, 2009.

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Is there a limit on the number of evaluations that can be scheduled per contractor?

FCSS limits the number of identified establishments per contractor to no more than 25 new evaluations per scheduling cycle. The 25-establishment limit does not apply to compliance evaluations scheduled as a result of the agency's CMCE or FAAP initiatives, contract award notices, directed reviews, conciliation agreement monitoring, or credible reports of an alleged violation of a law or regulation, including complaints. In addition, evaluations of establishments selected in previous scheduling cycles which remain open are not counted towards this limit.

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Can a contractor establishment that is not on the FCSS list be scheduled for a compliance evaluation?

Yes. The list of establishments provided with the CSAL is not all-inclusive for a variety of reasons. For example, company establishments that are not clearly associated with your parent organization through currently-available EEO-1 Reports, such as those that have been acquired through recent mergers, are not included on the CSAL. The list also does not include evaluations of a company's corporate headquarters or any of its approved Functional Affirmative Action Plans.

In addition, when OFCCP receives notification that a contractor establishment is being considered for a Federal contract or that the contractor establishment has been awarded a Federal contract of $10 million or more, a compliance evaluation may be scheduled if the contractor establishment in question has not had a compliance evaluation, other than a compliance check, within 24 months prior to the date of the notification. This is considered a preaward compliance evaluation.

OFCCP also may schedule an evaluation when OFCCP receives a credible report of an alleged violation of a law or regulation enforced by OFCCP, including an individual complaint or a class action complaint filed with the OFCCP, EEOC, or State Fair Employment Practice agencies alleging a pattern or practice of employment discrimination problems.

Can a contractor establishment that was evaluated recently be scheduled for another evaluation?

A contractor establishment that has undergone a compliance evaluation during the 24 months prior to the development of the FCSS list or a contractor establishment that is still subject to reporting obligations as the result of a prior compliance evaluation should not be scheduled for a compliance evaluation. If an establishment evaluated in the past 24 months is selected for a compliance evaluation, the establishment's representative should call the local OFCCP office issuing the scheduling letter.

Notwithstanding this limitation, OFCCP may schedule a follow-up compliance evaluation if there is an indication that the contractor establishment is not complying with either reporting requirements or agreed upon actions that resulted from an active Conciliation Agreement. OFCCP also may schedule a compliance evaluation when it receives an individual or class complaint, or what it determines to be a credible report of an alleged violation of a law or regulation enforced by OFCCP.