In June, the OFCCP released a new directive outlining updates to the FAAP process. According to Director Patricia Shiu, “the FAAP is back and is better than before.” Below are excerpts from the OFCCP’s Functional Affirmative Action Program (FAAP) FAQs. Click here to read the full version.
What is a Functional Affirmative Action Program?
Each covered non-construction contractor must develop and maintain an affirmative action program (AAP) in accordance with 41 CFR Part 60-2.
- The majority of contractors develop and maintain establishment-based AAPs
- Multi-establishment contractors may develop an FAAP, an AAP by functional or business unit, to examine personnel practices and affirmative action efforts of a unit rather than establishment(See Functional AAP Directive for criteria.)
How does a company apply for an agreement following use of a FAAP?
Companies may submit a written request to the OFCCP Director, at least 120 calendar days prior to expiration of current AAP or within 120 days from award of first-time Federal Contract, explaining why a FAAP would be most appropriate.
How long is the application process?
The process may take a few months as OFCCP evaluates the submitted materials, performs background research and may request a meeting with company officials to further discuss the application and company profile.
Can my company have a FAAP and an establishment-based AAP?
In some cases, it may be appropriate for a contractor to use both.
How does OFCCP select a functional or business unit for a compliance evaluation?
OFCCP uses administratively neutral criteria when selecting functional or business units for a compliance evaluation. A unit may also be scheduled for a compliance evaluation if:
- A complaint or an EEOC or state fair employment practices agency investigation reveals equal employment opportunity issues;
- The OFCCP Director receives a credible report of violation of an OFCCP enforced law; or
- The contractor fails to submit the annual update of its FAAP Agreement specified in the FAAP Directive.
Which OFCCP office will send scheduling letters for the compliance evaluation of a function or business unit? Where is the written AAP and support data submitted?
The FAAP Unit of the OFCCP’s National Office sends the OMB approved scheduling letters and conducts compliance evaluations of functional or business units. Contractors should submit FAAPs to this office within 30 days of receipt of the scheduling letter.
Will other of my company’s functional or business units get evaluated during the current year?
That is possible. Since OFCCP uses administratively neutral selection criteria, more than one unit may be selected in a given year.
Does a compliance evaluation of a functional or business unit resemble an establishment-based evaluation? How does it differ?
The analytical techniques and procedures used by OFCCP to evaluate functional or business units look very much like those of establishment evaluations.
A compliance evaluation of a functional or business unit differs in the necessary logistics to perform it.
- OFCCP may need to travel to more than one facility for onsite review.
- OFCCP’s efficient use of resources may dictate staff from a nearby regional, district or area office to perform certain aspects of the evaluation on behalf of the national office.
Once a compliance evaluation has been completed, when can my company expect that functional or business unit to be evaluated again?
OFCCP will follow the policy for establishments and will not revisit a functional or business unit within 24 months after compliance review completion (date of the closure letter).