Redstone Government Consulting Blog | Government Compliance Training (2)

In late 2008, the Final Rule on Contractor Code of Business Ethics and Conduct (“CoBEC”) was added to FAR Part 3 (Improper Business Practices and Personal Conflicts of Interest) in response to the heightened focus on increased lapses in corporate ethical behavior. FAR Subpart 3.10 sets forth guidance for all contractors with regard to enhanced ethical and compliance standards and requires the insertion of the clause at FAR 52.203-13 in solicitations and contracts if the value of such contract is expected to exceed $6 million, and the performance of which is 120 days or longer. DCAA focuses on compliance with FAR 52.203-13 when conducting accounting system audits.

Throughout this series, we’ve explored the fundamentals of compliance with the regulations administered by the Office of Federal Contractor Compliance Programs (OFCCP) and many of the components of a written Affirmative Action Plan. In this final blog of the series, we will answer a question frequently asked of us…What do you do with all this information?

If your company has an accounting system audit in the near future, now is the time to get prepared, before DCAA starts knocking at your door. So, what are the common deficiencies? We are going to address the typical post award accounting system audit and deficiencies that DCAA frequently identifies during an audit.

As mentioned throughout this series on Office of Federal Contract Compliance Programs (OFCCP) and Affirmative Action (AA), recordkeeping is essential. A particularly important component when developing your AAP , as shown in a previous blog, is Applicant Flow (i.e., records pertaining to each “applicant”). When working with clients, we find that this tends to be the most complex and often confusing information requested. Following are answers to some of the most common questions we are regularly asked:

We hope that the previous blogs have provided a solid explanation as to what an Affirmative Program is and who the Office of Federal Contract Compliance Programs (OFCCP) is. The requirement to maintain a written plan/s and ensure all action items noted within the plan are being executed can be a daunting task. As we begin to steer away from the basics of what the various requirements and components of a written plan are, we will begin to dive into helpful tips and best practices. As shown in the diagram from a previous blog in this series, the establishment of Job Groups and Activity records are critical to establishing a valid Affirmative Action Plan and are therefore worth focusing on.

In the previous blog of this series, we focused on the requirements of federal government contractors (prime and subcontractors) who meet the basic threshold requirements (specific dollar thresholds and fewer than 50 employees). As we progress in this series on OFCCP and Affirmative Action Requirements, we begin to dive into OFCCP’s expectations of a contractor’s Affirmative Action Program (AAP). As a reminder, contractors are required to have an AAP when meeting the dollar thresholds mentioned above and have an employee count of 50 or more.

The last blog in this series focused on who (what) OFCCP is, what they require of contractors of various sizes and why compliance is important. Now we want to provide a bit more clarity as to what these requirements are and later in the series, how those requirements impact your processes and policies.

As mentioned in a previous blog, OFCCP’s Contractor Portal, we are kicking off a blog series related to OFCCP and Affirmative Action requirements for contractors of all sizes. We begin this series by laying the groundwork of who (or what) OFCCP is and what affirmative action is. This series will focus on supply and service contractors; however, construction contractors may also find it helpful. Regardless of the type of contractor, our HR Team is available to assist with all of your OFCCP compliance and Affirmative Action Program (AAP) needs.

On July 9th, 2021, the Department of Defense (DoD)issued a final rule in the Federal Register to implement 10 U.S.C. 2330a which requires the DoD to establish a data collection system to provide certain management information about an awarded contract or task order that is valued in excess of $3 million. This new rule is applicable for the following service acquisition portfolio groups:

• logistics management services
• equipment-related services
• knowledge-based services
• electronics and communications services

You may read the entire rule here.

The focus of fraud used to be primarily on defense contractors, health care providers and health care suppliers. However, other companies are now being exposed to the Federal Claims Act (FCA) including software companies, private equity financiers, insurance companies, and educational institutions. Additionally, fraud is not just related to companies receiving the funds.