How does OFCCP select contractors establishment for a compliance evaluation?

OFCCP's Federal Contractor Selection System (FCSS) is an administratively neutral selection system that uses multiple information sources and analytical procedures to identify Federal contractor establishments for evaluation. The FCSS process may include the use of EEO-1 reports; development of threshold requirements, such as establishment size; random sampling; analysis of external Federal contract databases to better establish jurisdictional coverage; and a mathematical model that ranks Federal contractor establishments based on an indicator of potential workplace discrimination. OFCCP also schedules evaluations based on a variety of other factors, such as contract award notices, directed reviews, as a result of conciliation agreement monitoring or individual or class complaints, or as part of the agency's Corporate Management Compliance Evaluation (CMCE) or Functional Affirmative Action Plan (FAAP) initiatives.

One of the component's of OFCCP's selection system involves the use of a mathematical model that predicts the likelihood of a finding of systemic discrimination. The mathematical model is based on external research conducted by research firm Westat. Westat thoroughly analyzed data from five years of OFCCP compliance evaluations to formally identify and characterize relationships between reported EEO-1 workforce profiles and findings of discrimination (defined as a compliance evaluation that resulted in a conciliation agreement in the amount of $100,000 or more between 1995 to 2000). OFCCP's Division of Statistical Analysis further refined the Westat model to incorporate recently released Census data. The mathematical model involves multiple factors that compare the workforce profile of the establishment to those of establishments in the same industry classification and to that of the local labor market using 2000 Census data.

Contractors should note that while the mathematical model that is part of this system does assign a higher likelihood of discrimination to some establishments than others, and that this measure was used to make selections, a test of the model is underway. OFCCP also is researching other targeting methods and data sources to continually update the system. Furthermore, while the model develops an individual establishment measure, OFCCP does not rely upon those measures to conclude that discrimination exists in a particular establishment. The strength of such measures rests in their use in an aggregate setting to separate a large group of establishments with higher values from those with lower ones, which only on average, we expect to have greater need for a compliance evaluation. Given the limited conclusions that can be drawn from the individual results, contractors should not consider the model a tool for identifying discrimination at their establishments.

For more information contact James Gutierrez - james@crincorporated.com