The Office of Federal Contract Compliance Programs has quietly published the agency’s final revised directive regarding functional affirmative action programs (FAAPs). The directive does not appear to have been altered from what was submitted to the White House Office of Management and Budget for final approval earlier this year.
OFCCP’s revised FAAP directive now includes the changes outlined in our previous blog posts OFCCP Submits Revised FAAP Directive for Final Approval and Proposed New Functional Affirmative Action Plan (FAAP) Directive. In short, the revised directive:
- Extends the term of FAAP agreements from 3 to 5 years;
- Eliminates the mandatory audit requirement during the term of a FAAP;
- Extends the audit moratorium period from 2 to 3 years after a closed compliance evaluation;
- Eliminates “consideration” of contractors’ EEO compliance history as part of the FAAP approval process;
- Eliminates the reapplication period after the expiration of a FAAP agreement; and,
- Eliminates the annual update requirement.
The revised directive also requires the OFCCP to issue a decision on FAAP applications within 60 days of receipt of complete application materials.
Unfortunately, contractors participating in the FAAP program are still required to provide the OFCCP with specific information on at least one federal contract or subcontract of $50,000 or more when applying for FAAP approval and every five years thereafter. Overall, though, contractors should breathe easier under the revised FAAP directive. If your organization has ever considered making the switch from establishment-based to functional AAPs, in whole or in part, now might be a very good time to take a closer look at those options. Biddle consultants would be happy to discuss with you the pros and cons of entering into a FAAP agreement. Reach us by phone at 800-999-0438 or email email@example.com.