Have You Been Selected for an Audit?

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By: Mary Kathryn Curry and Erin Schilling

A second wave of the Corporate Scheduling Announcement Letters (CSALs) were released to 750 more contractors.  As we previously reported, 1,000 CSALs were mailed in February, with scheduling letters that followed on March 19, 2018.

CSALs do not initiate an audit – only a scheduling letter can do that. However, a CSAL notifies a contractor that their establishment is on the scheduling letter list giving the contractor extra time to get their Affirmative Action Program (AAP) ready for submission. The CSAL gives recipients at least 45 days’ notice of a scheduling letter.  Once the OMB approved scheduling letter arrives, contractors only have 30 days to submit their AAP.

The supplement CSALs that were recently issued went to 445 companies, 69 CMCEs, and 66 FAAP functional units. The OFCCP has published a list of the CSAL recipients in its FOIA library, which can be found here. The OFCCP explained that it elected to publish this list because it is a frequently requested document and does not fall into any exemption from disclosure. Like with its spring release, the OFCCP has also released its methodology for selecting contractors for this scheduling letter list, which can be found here.

The CSALs were sent to the actual facility identified on the OFCCP’s scheduling list and were addressed to “Human Resources Director” or the company’s designated point of contact.  CSALs were not sent to companies who are subject to evaluation by the OFCCP because of a contract award notice or as a result of a consent decree or other ongoing monitoring by the OFCCP. The OFCCP indicated that actual scheduling letters may go out soon.

The OFCCP also published a new FAQ that addresses the one-time 30-day extension a contractor may receive for supporting data related to the E.O. 11246, VEVRAA and Section 503 AAPs. A contractor is eligible, provided that it:

  • Requests the extension before the initial 30-day due date for the AAPs; and

  • Timely submits the basic E.O. 11246, Section 503 and VEVRAA AAPs within the initial 30-day period after receiving the Scheduling Letter and Itemized Listing.

Contractors should heed the warning in the FAQ that a “[f]ailure to submit AAPs and/or supporting data timely, with approved extensions, will result in an immediate Notice to Show Cause why OFCCP should not initiate enforcement proceedings.”

The OFCCP made clear that the additional CSALs were a supplement to the February 2018 scheduling list, which means we can expect a new scheduling list in “early 2019.” Polsinelli will continue to monitor developments and will provide updates as they become available. In the event your organization received a CSAL, we recommend you contact counsel immediately.

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