OFCCP Publishes Fall Corporate Scheduling Announcement List of Federal Contractor Audit Targets

September 11, 2023

On Sept. 8, 2023, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) published its latest Corporate Scheduling Announcement List (CSAL) for supply and service contractors, designating 1,000 contractor and subcontractor locations for potential audit.

What’s a CSAL?

Although not an official audit “scheduling letter” notice, per OFCCP the CSAL is “a courtesy notification” to an establishment selected for a compliance review (also known as an “establishment review”), corporate management compliance evaluation (CMCE), functional affirmative action program (FAAP) review or university review. Thus, the fact that a listed employer is on the CSAL does not necessarily mean the employer will be audited in the near future — just that it likely will be. Likewise, the fact that an employer or given location is not on the list does not mean that it will not be audited, as OFCCP can send an audit scheduling letter without giving employers a CSAL heads-up.

Regardless, the advance warning of a future OFCCP audit provides employers on the CSAL an opportunity to engage promptly in a privileged risk management review and begin human resources, legal and other preparations.

Who’s on the New List?

In the past, CSAL letters were mailed to federal contractors and subcontractors for advance notification. OFCCP, however, no longer does this and simply posts periodic CSALs on the agency’s website. Employers should therefore review the latest CSAL to determine if they are listed — even if they believe they are not a current federal contractor or subcontractor (as listing errors can sometimes occur).

The new CSAL can be downloaded at dol.gov/agencies/ofccp/scheduling-list by clicking “FY 2023 CSAL Supply & Service Scheduling List, Release – 2.”

How Was the New CSAL Developed?

With respect to how the Sept. 8, 2023, CSAL was compiled, per OFCCP:

  • For establishment-based reviews (except for financial institutions, universities, and colleges), initial selection focus was on contractors “engaged in low-wage industries.”
  • To determine this, OFCCP utilized the Bureau of Labor Statistics Quarterly Census of Employment and Wages data for the fourth quarter of 2022.
  • Further, “OFCCP identified non-construction industries that received the highest frequency of contracts awarded through the Bipartisan Infrastructure Bill.”

Across these two parameters, OFCCP selected contractors and subcontractors engaged in the following North American Industry Classification System (NAICS) sectors: agriculture, forestry, fishing and hunting; manufacturing; retail trade; professional, scientific, and technical services; administrative and support and waste management and remediation services; accommodation and food services; and other services (except public administration).

OFCCP then refined the pool of eligible contractors and subcontractors using contracts valued at $50,000 or more and other parameters, selecting the following to finalize the list:

  1. Five CMCE reviews per region with the highest employee count in a district office.

  2. Six FAAP reviews per region with the highest employee count between 200 and 400 in each district office (with no more than three functional units of any parent company).

  3. Two financial institutions per region with the highest employee count in each region.

  4. Two colleges or universities per region with the highest employee count in each region.

  5. An unspecified number of establishment reviews based on locations with the highest employee count in each district office (with no more than two establishments of any parent company).

Where Can I Learn More?

For added details, please follow the links below.

  • OFCCP Sept. 2023 CSAL Methodology

For questions about the new CSAL or assistance preparing for related potential OFCCP audits, contact the authors, your McGuireWoods contact, or a member of the firm’s affirmative actionlabor and employment, and federal contracting teams.

Register for McGuireWoods’ Sept. 14 complimentary webinar discussing OFCCP’s new scheduling letter, predetermination notice rule and other enforcement trends.