OFCCP – Who Must Comply
Compliance with OFCCP requirements:
Generally speaking, any business or organization that holds a single Federal contract, subcontract, or Federally assisted construction contract in excess of $10,000.00 or has Federal contracts or subcontracts that combined total in excess of $10,000.00 in any 12-month period will be subject to requirements under one or more of the laws enforced by OFCCP. Additionally, an organization that provides goods or services to a prime contractor that are used in the performance of a federal contract are considered federal-subcontractors and are subject to OFCCP compliance as well.
In 2005, the OFCCP required prime contractors to report the suppliers from whom they purchased $ 50,000.00 per year or more in goods or services that were used in the performance of their contracts. In 2006, the OFCCP’s budget was increased by 15% and the enforcement division in Washington took back the responsibility for providing notices to organizations for audits. In 2006, 8,000 firms are projected to receive desk audit notices, 2,000 notices going out each quarter. Second quarter notices are now going out in the mail. Initial notices sent to the employer are simultaneously sent to the local OFCCP office to whom the employer must submit the required compliance data.