Key Details: On April 1, 2024, the US Department of Labor’s (DOL) Office of Federal Contract Compliance Programs (OFCCP) opened the Contractor Portal. Covered federal contractors must log in and certify their compliance with affirmative action requirements before the portal closes on July 1, 2024.
Additionally, the OFCCP adjusted the hiring benchmark for veterans under the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA). OFCCP reduced the benchmark to 5.2% (compared to 5.4% previously) and was effective March 31, 2024. Contractors should review the current benchmarks in their affirmative action plan (AAP) and update accordingly.
Government contractors are encouraged to review their AAPs and to contact Ryan & Wetmore for additional government contracting consulting services.
OFCCP Portal
The Contractor Portal is where covered federal contractors and subcontractors must certify that they meet the requirement to develop and maintain annual AAPs.
Covered Contractors
Currently, the OFCCP only requires annual certifications for supply and service contractors. Supply and service contractors and subcontractors who hold a contract of $50,000 or more and who employ 50 or more employees are covered. Covered contractors must certify that they develop and maintain AAPs pursuant to Executive Order (EO) 11246 and Section 503 of the Rehabilitation Act of 1973. Additionally, contractors who hold a contract of $150,000 or more and who employ at least 50 employees must also develop an AAP that complies with VEVRAA.
Contractors interested in reviewing sample AAPs can view the DOLs illustrative samples here for reference.
VEVRAA Benchmark Adjustment
As mentioned above, the OFCCP released the 2024 VEVRAA benchmark last month. The new benchmark was effective March 31, 2024, and was reduced slightly to 5.2%. Federal contractors use this benchmark to assess the effectiveness of their recruitment and outreach activities for hiring veterans. Contractors may use either the OFCCP national benchmark or establish an individualized benchmark (following the standards and metrics set forth in 41 CFR § 60-300.45(b)(2)).
Additionally, contractors are encouraged to review the examples provided by the OFCCP to ensure adequate AAPs and benchmarks.
Conclusion
Federal contractors and subcontractors are encouraged to review their compliance with AAPs and to perform the following activities to stay ahead.
- Review AAP applicability and whether your company is covered.
- Conduct an internal review of your AAP and identify areas for improvement.
- Ensure AAPs are documented and retained in an easily retrievable location.
- Review your current hiring practices and if they are aligned with your AAPs.
- Certify compliance on the Contractor Portal ahead of the deadline.
- Review VEVRAA hiring benchmarks and analyze the company’s percentages and performance.
For further information and expertise, contact Ryan & Wetmore today.
Today’s Thought Leaders
About Peter Ryan
Partner, Co-founder, & CPA
Peter T. Ryan co-founded Ryan & Wetmore in 1988 with business partner Michael J. Wetmore. Peter provides clients with the best strategies for success. His expertise extends across various industries. Peter obtained a Master of Business Administration in Finance from the University of Baltimore and a Bachelor of Arts in Accounting from the Catholic University of America.
About Rosie Cheng
Finance Consultant
Rosie Cheng is a Finance Consultant at Ryan & Wetmore. She focuses on government contracting services and produces many of the firm’s government contracting newsletters. Rosie graduated from Georgetown University with a Master of Science in Management and from William and Mary with a Bachelor of Business Administration.