Companies Seeking Stimulus Funds Should Expect a More Aggressive OFCCP


As part of the Obama administration's commitment to accountability in spending under the American Recovery and Reinvestment Act (ARRA), the federal Office of Federal Contract Compliance Programs (OFCCP) will be tracking its ARRA-related and non-ARRA-related enforcement activities separately and aggressively auditing recipients of ARRA funds.

On July 7, 2009, OFCCP released a new directive that explains the different procedures that will apply in scheduling and conducting compliance evaluations for ARRA-funded contractors versus other federal contractors.

Under the new procedures, there will be an increased focus on construction contractors. In addition, supply and service contractors receiving ARRA funds will be subjected to full desk audits and onsite reviews. Existing 24-month moratoriums on audits for companies on the pre-award registry will not apply, and the current audit ceiling of no more than 25 audits per company will not apply to companies receiving ARRA funds.

Please see full ASAP for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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