OFCCP Issues Directive On TRICARE Moratorium

by FordHarrison

Executive Summary:  The Office of Federal Contract Compliance Programs (OFCCP) has issued a Directive officially establishing its five-year moratorium on enforcement of the affirmative action obligations of TRICARE subcontractors. The Directive states that within 30 business days of the effective date of the Directive (May 7, 2014), the OFCCP will administratively close any open compliance evaluations of TRICARE subcontractors affected by the moratorium.  It also provides additional information regarding the moratorium and the agency's proposed outreach efforts during that time period.  Additionally, the Directive provides guidance to TRICARE subcontractors covered by the moratorium who receive an OFCCP Scheduling Letter or Corporate Scheduling Announcement Letter (CSAL).   


As discussed in our prior Alert, in March of this year Labor Secretary Perez announced a five-year moratorium on enforcement of the affirmative action obligations of all TRICARE providers.  On May 7, 2014, the OFCCP published a Directive on its website establishing the moratorium and providing additional information and guidance.  The Directive is available at: http://www.dol.gov/ofccp/regs/compliance/directives/dir2014_01.htm.

Who is Covered by the Moratorium?  The Directive states that the moratorium applies to all health-care entities that participate in TRICARE as subcontractors under a prime contract between the Department of Defense (DOD) TRICARE Management Activity and one of the prime managed-care contractors, including:

  • Health-care entities that participate in TRICARE only as subcontractors;
  • Health-care entities that participate in TRICARE as subcontractors and as subcontractors under any Medicare program;
  • Health-care entities that participate in TRICARE as subcontractors and as subcontractors under the Federal Employee Health Benefits Program (FEHBP); and
  • Health-care entities that participate in TRICARE as subcontractors and as subcontractors under any other federal health program.

The moratorium does not apply to health-care entities who are TRICARE subcontractors and hold a prime contract with a federal agency.  Additionally, it does not apply to TRICARE subcontractors who hold a separate, independent, non-health-care related federal subcontract.

Scope of the Moratorium

The moratorium applies to the OFCCP's enforcement of a covered TRICARE subcontractor's obligations under Executive Order 11246, Section 503 of the Rehabilitation Act, and VEVRAA, including enforcement of obligations related to affirmative action programs and recordkeeping.  It does not apply to the processing of complaints of discrimination under 41 CFR 60-1.24; 41 CFR 60-300.61 and 41 CFR 60-741.61.  Additionally, the moratorium does not apply to obligations a TRICARE subcontractor may have under other federal nondiscrimination laws. 

Administrative Closure of Open Compliance Evaluations

Within 30 business days of the effective date of the Directive (May 7, 2014), the OFCCP will administratively close any open compliance evaluations of TRICARE subcontractors affected by the moratorium.  If a TRICARE subcontractor receives an OFCCP scheduling letter requesting the subcontractor's Affirmative Action Program (AAP) and supporting data, the Directive states that it should send its local OFCCP office a written request that the compliance evaluation be administratively closed, along with a copy of its agreement to participate in the TRICARE program. The Directive further states that TRICARE subcontractors covered by the moratorium who have received a Corporate Scheduling Announcement Letter (CSAL) should not contact the OFCCP.  Instead, the subcontractor should wait to receive a scheduling letter before it contacts the local OFCCP office to request that the compliance evaluation be administratively closed. The OFCCP has provided a list of local offices on its web site at: http://www.dol.gov/ofccp/contacts/ofnation2.htm.

OFCCP's Outreach and Assistance Efforts During the Moratorium

During the moratorium period, the OFCCP will provide technical assistance on compliance with the affirmative action obligations under Executive Order 11246, Section 503 and VEVRAA.  Among other things, the agency will: 

  • Provide information, materials, and technical assistance training to TRICARE subcontractors on how to develop cost effective affirmative action plans and recordkeeping and applicant tracking systems;
  • Conduct regional and national webinars that cover OFCCP's legal authorities, jurisdiction, and federal contractor and subcontractor obligations; and
  • Convene listening sessions to learn about the unique issues facing TRICARE subcontractors in order to provide relevant and targeted technical assistance under all of OFCCP's legal authorities.

The Bottom Line:

While the moratorium provides welcome relief for covered TRICARE subcontractors, that relief is only temporary. In fact, the outreach efforts described in the Directive, which are aimed at helping TRICARE subcontractors comply with the affirmative action obligations the OFCCP enforces, seem to emphasize the agency's claim of jurisdiction over these subcontractors. Thus, absent legislation excluding TRICARE subcontractors from the OFCCP's jurisdiction, health-care entities that receive federal funds should be prepared to comply with the affirmative action obligations the agency enforces when the moratorium has expired.


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.

© FordHarrison | Attorney Advertising

Written by:


FordHarrison on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.


JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.