Contract Compliance Review
WHAT IS A CONTRACT COMPLIANCE REVIEW?
The Equal Employment Opportunity and Affirmative Action (EEO/AA) requirements of a contract are enforced through Contract Compliance Reviews (CCR) conducted by the Contract Compliance Officer (CCO) in the Alaska Department of Transportation and Public Facilities (ADOT&PF) Civil Rights Office (CRO). In agreement with the Federal Highway Administration (FHWA), the ADOT&PF is required to perform a designated number of CCRs annually.
Who is selected for CCRs?
Each year (usually in February) the CRO selects a designated number of contractors for review based on a number of criteria
- Largest dollar value FHWA contract(s)
- Largest number of FHWA contracts
- Contracts which are the type, size, and/or duration to provide the contractor with maximum hiring and promotional opportunities
- Contracts which are the type, size, and/or duration to provide the contractor with maximum hiring and promotional opportunities
- Contractors who have past reporting data which indicates regularly underutilizing women and minorities in their workforce
- Contracts that contain Special Provision Section 645, training program
- Contractors FHWA specifically requests to have reviewed
- Contractors who have complaints filed against them regarding employment practices
Contractors who were found in non-compliance the previous construction season having FHWA work in the upcoming season are automatically selected for a follow-up review regardless of size, duration, etc. of the project(s) involved.
At this time, the CCO also contacts FHWA to see if there are any contractors they want ADOT&PF to review.
What is covered in a CCR?
A comprehensive review investigates all aspects of a contractor's employment practices and conditions and generally consists of meeting with a contractor at their office reviewing files and data, project worksite interviews, and review and analysis of collected information. Review dates are coordinated with contractors and scheduled during their peak employment periods. This allows time to correct deficiencies, should any be found.
DBE Utilization
- review of contractor's utilization of Disadvantaged Business Enterprise (DBE) firm's being utilized on each project
- dollar value of subcontracts
- amount of work accomplished, payments to date, total anticipated participation
- project goals
- any other pertinent information
EEO Objectives
- Verification of information supplied by a contractor regarding it's EEO/AA policy dissemination to supervisory personnel
- Contractor's EEO Officer appointment letter
- Copy of contractor's EEO policy and AA plan
- Information on location, dollar amount, duration, and manager for each project being reviewed.
- Review of Monthly Utilization Reports (MUR, formerly federal form CC-257) for each project and company wide
- Review of certified payroll reports
- Company workforce composition including new hires, rehires, terminated, and hours worked, by craft, gender, and ethnicity
- Review of recruiting efforts, summary of employment applications received, and information regarding union recruiting efforts, if applicable
- Verification of good faith effort to meet federal objectives for female and minority recruitment
Training Special Provisions
- Verify information regarding training positions
for each project and obtain supporting documents
(forms 25A311, 25A312, 25A313)
Project Site Visit/Employee Interviews
At least one project site is visited by the Contract Compliance Officer to:
- Verify required EEO/AA posters are conspicuously displayed and facilities are non-segregated
- Interview randomly selected employees
Exit Conference - After all records and data are reviewed there is an exit conference. This allows the officer conducting the review to discuss with the contractor any preliminary findings that, if not corrected immediately or not corrected by a voluntary corrective action plan (VCAP), would necessitate a finding of non-compliance.
Compliant Status
In order to be in compliance following a review, all areas of the review must be found to be compliant with regulations.
DBE Utilization
If the contractor is meeting or exceeding the DBE goal or DBE commitment for each project, the contractor is found in compliance.
EEO Objectives
If the contractor is meeting or exceeding the federal EEO objectives, the contractor is found in compliance.
OR
If the contractor is not meeting the federal EEO objectives, but has demonstrated they are performing the contractually required good faith effort (GFE), the contractor is found in compliance. The contractor must be able to document their GFE efforts to meet the federal objectives for female and minority employees. This can be done through a variety of methods to include: requesting female/minority dispatches from the union, advertising through various publications or newspapers, directly contacting female/minority organizations soliciting interest in construction trade positions. There are many options available.
Training Special Provisions
If the contractor is meeting or exceeding the training requirement for each project, the contractor is found in compliance.
OR
If the contractor is not meeting the training requirements for each project, but has demonstrated they are performing the contractually required good faith effort, the contractor is found in compliance.
Non-compliance
If any part of the review shows non-compliance, the contractor will be found to be non-compliant.
DBE Utilization
If the contractor is not meeting the DBE goal or DBE commitment for each project, the contractor is found in non-compliance.
EEO Objectives
If the contractor is not meeting the federal EEO objectives and not performing the contractually required GFE, the contractor will be found in non-compliance. The finding of non-compliance is the same regardless of the number of crafts or projects in which the contractor is not meeting the EEO objectives.
Training Special Provisions
If the contractor is not meeting the training requirements for each project and not performing the contractually required good faith effort, the contractor is found in non-compliance.
Voluntary Corrective Action Plan (VCAP)
If during the exit conference the contractor is informed that minor deficiencies can be corrected by a VCAP, the CCO will request that a VCAP be provided at that time. The CCO may assist the contractor in preparing the VCAP to ensure it is correct and complete.
The VCAP must:
- Identify the steps the contractor will follow to correct and prevent the cited deficiency from occurring in the future. The steps must be identifiable and measurable.
- Be prepared in the form of a letter to the appropriate CCO.
Corrective Action Plans (CAP)
If during the review deficiencies are found, which cannot be corrected with a VCAP (or if a requested VCAP was not submitted), a Show Cause Notice (SCN) will be issued. The SCN requires a CAP to be submitted within 30 days of receipt by the contractor. Should a CAP not be received or be unacceptable, the contractor would receive sanctions (i.e., withholding payments to the contractor until deficiencies are corrected; disbarment). The CCO may assist the contractor in preparing the CAP to ensure it is correct and complete.
The CAP must:
- Identify the steps the contractor will follow to correct and prevent the cited deficiency from occurring in the future. The steps must be identifiable and measurable.
- Be prepared in the form of a letter to the appropriate CCO
