On December 2, 2021, the Office of Federal Contract Compliance Programs (OFCCP) officially announced its long-awaited annual affirmative action plan (AAP) certification process, which will require federal contractors and subcontractors (contractors) to register with its new Contractor Portal beginning in 2022.
The Contractor Portal will require covered contractors to certify whether they are meeting their existing requirement to develop and maintain annual AAPs. Specifically, contractors that hold a contract of $50,000 or more and employ 50 or more employees must develop and maintain AAPs pursuant to Executive Order 11246 and Section 503 of the Rehabilitation Act of 1973. If a contractor has at least 50 employees and a contract of $150,000 or more, then it must also develop an AAP pursuant to the Vietnam Era Veterans’ Readjustment Assistance Act of 1974. While contractors already certify AAP compliance, at least implicitly, as a part of the regular contracting process, this new requirement necessarily imposes an added obligation to conduct the appropriate diligence required in order to certify accurately and explicitly. As such, contractors need to be particularly mindful of False Claims Act exposure in the event of an inaccurate or false certification.
For the full alert, visit the Faegre Drinker website.
The material contained in this communication is informational, general in nature and does not constitute legal advice. The material contained in this communication should not be relied upon or used without consulting a lawyer to consider your specific circumstances. This communication was published on the date specified and may not include any changes in the topics, laws, rules or regulations covered. Receipt of this communication does not establish an attorney-client relationship. In some jurisdictions, this communication may be considered attorney advertising.