On September 8, 2023, the Office of Federal Contract Compliance Programs (OFCCP) released a second round of audits for the year. In this round, the OFCCP listed 1,000 establishments specifically for supply and service federal contractors. These entities are the next to receive advance audit notices, otherwise known as Corporate Scheduling Announcement Letters (CSALs).
The number of audits specified in this recent CSAL list marks a significant increase in governmental oversight. Notably, it is exactly double the number of contractor establishments selected in the OFCCP’s previous supply and service CSAL list, which was released on January 20, 2023.
The implications of an increased number of audits are manifold. Not only does it indicate tighter regulatory control on federal contractors, but it may potentially indicate major shifts in federal contracting trends. Rigorous audits generally signal not just an desire to maintain standards, but a broader aim to bolster integrity within the sector.
This news impacts many sectors and professionals, including legal practitioners dealing with public procurement and contract management, as well as in-house counsels of federal contractors. Advance notice of audits may provide an opportunity to review and bolster current compliance practices before audits officially commence.
For more details on the recent OFCCP audit announcements, you can refer to the original article published by Morrison & Foerster LLP.