Contractors Can Better Meet OFCCP Requirements with New Portal

By Rachael Kvapil

AGC members now have an easier way to fulfill US Department of Labor reporting requirements with an online portal released by the Office of Federal Contract Compliance Programs, or OFCCP, earlier this year. Existing regulations require construction employers to identify subcontractors that are awarded contracts valued at $10,000 or more. The new Notification of Construction Contract Award Portal, or NCAP, creates an easier way to submit this information in a timely manner.

Federal money plays a crucial role in funding construction projects nationwide, including infrastructure like roads, bridges, military structures, courthouses, and prisons, in addition to other emergency projects reimbursed by the Federal Emergency Management Agency, or FEMA. Direct federal contractors, such as those with contracts directly with the US Army Corps of Engineers, General Services Administration, or other federal agencies, and federally assisted prime construction contractors, or contractors with transportation contracts directly with state departments of transportation, are subject to reporting subcontractor awards of $10,000 or more within ten working days of the award. Claiborne Guy, director of employment policy and practices for the Associated General Contractors of America, says reporting this information within this timeframe wasn’t so easy in the past.

“Previously, contractors had to mail, fax, or email this information, often without receiving confirmation of its submission,” says Guy. “Using this portal, contractors can now be sure that they’re in compliance.”

NCAP streamlines the reporting process and allows contractors to submit the information on a secure platform. Information collected by the OFCCP includes contract value, estimated start and completion dates of the contract, contact information, contract awarding entity, contract receiving entity, and where the contract is being performed.

Contractors with multiple subcontractor awards of more than $10,000 can submit them all at once using a single bulk upload.

Guy encourages prime contractors to adapt their bid solicitation notices so potential subcontractors know up front that OFCCP will know their identities due to this reporting process and that the office will be able to schedule the subcontracting company for equal opportunity and affirmative action compliance review if they are selected. Compliance reviews are neutral selections based on a random methodology; the methodology has been improved after a 2018 court case in which the neutrality of the review process came into question. Though OFCCP released its methodology during litigation in an effort to maintain transparency, Guy says OFCCP has only released the latest methodology for supply and service contractors, who follow different regulatory requirements than construction employers. The latest methodology for construction is still unknown.

“Subcontractors need to know that OFCCP has their data and [their companies] are subject to potential selection for audit,” says Guy.

Alissa Horvitz, member attorney of Virginia-based law firm Roffman Horvitz, PLC, says the portal will allow OFCCP to compile a more accurate database that allows them a full view of the layer below the direct contractor. Though there aren’t currently any detailed consequences for violating reporting regulations, she emphasizes the importance of timely reporting as a way to ensure prime contractors continue to comply with regulatory requirements.

“Ultimately, a contractor who doesn’t comply with reporting regulations could be cited for a technical violation in an audit,” says Horvitz. “No contractor wants the publicity of noncompliance, which could impact their ability to bid on future work.”

There are a number of regulatory obligations with which federal subcontractors must comply when awarded work, including meeting goals and timetables for minority and female participation for each trade within a geographic area, and keeping extensive records on applicants.

To use the NCAP portal for reporting, contractors need to set up an account on the OFCCP NCAP page (ncap.dol.gov). Tutorials and webinars to help with setup and online reporting are available on a separate OFCCP informational page: dol.gov/agencies/ofccp/ncap

Guy says the OFCCP portal for construction is different from the office’s new portal for supply and service contractors. Contractors should double-check they are registering for the correct one before going through the process, he says.