Field staff in OFCCP’s 6 regional offices and 48  district and area offices manage and carry out the agency’s activities. During its compliance evaluations, OFCCP reviews the selected  contractor’s hiring, promotion, compensation, termination, and other  employment practices. While OFCCP conducted compliance  evaluations for about 2 percent of all contractors in its jurisdiction, it is not  able to determine the extent contractors are complying with equal  employment opportunity requirements because of weaknesses in the  contractor selection process. Instead, OFCCP relies on federal  contractors to voluntarily comply with equal employment opportunity  requirements, and some contractors may not be completing certain  required activities. For example, in fiscal year 2015  OFCCP did not find violations in 83 percent of its evaluations and found  discrimination in about 1 percent of evaluations (see table 1). In 2015, OFCCP conducted 2,345 compliance evaluations, which  represents about 2 percent of federal contractor establishments in its  jurisdiction. OFCCP’s contractor selection process is  nonrandom and does not produce a generalizable sample of contractors  for evaluation. Given these limitations, OFCCP is unable to  quantify the extent to which federal contractors in its jurisdiction are  noncompliant, and does not have reasonable assurance that it is focusing  its efforts on those contractors at greatest risk of not following equal  employment opportunity or affirmative action requirements. However, according to OFCCP compliance  evaluation data, in 2015, close to 85 percent of contractor establishments  did not submit an AAP within 30 days of receiving a scheduling letter, as  requested, and OFCCP officials said that it was not unusual for  establishments to request an extension. Implementing a mechanism, such as by  allowing contractors to submit their AAPs electronically or certify that they  have completed annual updates, could provide OFCCP reasonable  assurance that contractors are complying with this requirement, which is  a central component of OFCCP’s efforts to prevent discrimination and  ensure covered contractors take affirmative action to ensure equal  employment opportunities for protected workers. OFCCP Outreach and Compliance Assistance Activities Have Decreased and Stakeholders Reported Need for Improvement

		Outreach Activities and Compliance Assistance Have Decreased Since 2012 and Contractors Often Use Third Parties for Compliance Support

			Outreach

Prior to 2014, OFCCP focused its outreach on conducting a wide range of  outreach events that furthered its mission through informing protected  workers and applicants of their rights. Of the 24 contractors we spoke with, 20 told us that they use third-party  support, such as consultants and attorneys knowledgeable about the  relevant federal laws, executive orders, regulations, and processes, to  help them understand the applicable requirements, interpret guidance  materials, and develop their AAP. Stakeholders and contractors also  identified various reasons for not using OFCCP compliance assistance,  including:  fear that asking OFCCP for assistance would call attention to them  and possibly make them a target for future OFCCP enforcement  actions, such as compliance evaluations; and having their own resources, such as third party assistance, or not  needing OFCCP assistance. However, without  increased contractor utilization of OFCCP compliance assistance, federal  contractors may face challenges in complying with federal equal  employment and affirmative action requirements, all to the potential  detriment of protected workers. More than half of the contractors we spoke with said the OFCCP  guidance is generally helpful, with some citing the FAQs as particularly  helpful. Seven contractors and one industry group official told us that OFCCP’s  guidance may sometimes be conflicting and could be simplified. Our interviews with contractors and stakeholder groups show  that many contractors do not clearly understand OFCCP compliance  requirements and do not know what they are supposed to do to meet the  requirements. The  process OFCCP uses to select contractors for compliance evaluations, its  primary tool for enforcement, is not designed to focus on contractors with  the greatest risk of noncompliance. Develop a mechanism to monitor AAPs from covered federal  contractors on a regular basis. Agency Comments and Our Evaluation

We provided a draft of the report to the Department of Labor’s Office of  Federal Contract Compliance Programs for review and comment.
Why GAO Did This Study

OFCCP is charged with ensuring that about 200,000 federal contractor establishments refrain from discrimination and take affirmative action to provide equal employment opportunities for certain protected classes of workers. GAO was asked to review OFCCP practices.
In this report, GAO (1) assessed how OFCCP conducts supply and service compliance evaluations, including the methodology, resources, and results, and (2) evaluated OFCCP outreach, assistance, and guidance efforts to assist contractors in complying with the requirements it enforces. GAO analyzed both OFCCP Information System data and a nongeneralizable sample of 43 case files and reviewed relevant federal laws, executive orders, regulations, guidance, and agency documents. GAO also interviewed a nongeneralizable sample of 24 contractors with and without experience with a compliance evaluation; managers and staff in OFCCP's headquarters and all six regional offices; and representatives of national organizations representing contractors and protected workers' interests.

What GAO Found

Since 2010, most compliance evaluations conducted by the Department of Labor's (DOL) Office of Federal Contract Compliance Programs (OFCCP) of federal supply and service contractors identified no violations; however, the methods used may not focus evaluations on contractors posing the greatest risk. OFCCP relies on compliance evaluations to detect equal employment violations by federal contractors and conducts evaluations for about 2 percent of federal contractor establishments annually. Since 2010, about 78 percent of evaluations found no violations and about 2 percent had discrimination findings (see figure). However, when it selects contractors for evaluations, OFCCP does not use a generalizable sample that would allow for conclusions about the federal contractor population. Therefore, it does not have reasonable assurance that it is focusing its compliance efforts on those contractors with the greatest risk of noncompliance. During evaluations, OFCCP requested and reviewed documents related to contractors' equal employment efforts, including their Affirmative Action Program (AAP), which outlines contractors' compliance efforts. In 2015, close to 85 percent of evaluated contractor establishments did not submit their AAP within 30 days of OFCCP's request and were granted extensions in some cases. This suggests that OFCCP processes do not ensure that all contractors are complying with their obligation to complete and annually update an AAP.
Figure: Findings of Federal Contractor Nondiscrimination Compliance Evaluations From Fiscal Years 2010-2015
Since 2012, OFCCP's outreach and compliance assistance activities to assist contractors and other stakeholders, such as protected workers and industry groups, have declined as the agency refocused its activities on enforcement, and some stakeholders said guidance could be clearer. Outreach activities, such as community group presentations and job fair participation, decreased more than 80 percent from 2012 to 2014. Some stakeholders told GAO that workers, applicants, and contractors may benefit from more outreach activities. OFCCP's compliance assistance activities, such as seminars, for contractors—are down 30 percent since 2012. Many contractors told GAO they do not feel comfortable contacting OFCCP for assistance and hire third party support to help comply with federal nondiscrimination and affirmative action requirements. While contractors generally found OFCCP guidance helpful, both stakeholders and contractors said the guidance could be clearer to help them understand the requirements. Without clear guidance, contractors may not be able to understand their equal employment obligations.

What GAO Recommends

GAO is making six recommendations to DOL, including that OFCCP develop a contractor selection process that reflects contractor noncompliance risk, develop a mechanism to monitor contractors' compliance with AAP requirements, and review and assess the clarity of its contractor guidance. DOL agreed with GAO's recommendations.