OFCCP Seeks Debarment of Federal Contractor

According to a January 17, 2013 press release, the Office of Federal Contract Compliance Programs (“OFCCP”) has filed a lawsuit against U.S. Security Associates, Inc. (“USA”) with the Office of Administrative Law Judges (“OALJ”) seeking to cancel its contracts and debar it from being award future contracts for refusing to submit affirmative action plans and other documents during audits.  USA has previously been awarded $8 million in federal contracts to provide uniformed and trained guards and other emergency responders to the federal government.

OFCCP sent USA scheduling letters on December 7, 2011 and December 13, 2011 to conduct a compliance reviews of USA’s Milwaukee and Portage establishments.  USA refused to submit the information OFCCP requested.  On June 21, 2012, USA filed a complaint with the OALJ seeking declaratory relief from OFCCP’s compliance reviews.  An Administrative Law Judge (“ALJ”) dismissed USA’s complaint for lack of subject matter jurisdiction, and USA appealed the decision to the Administrative Review Board where the matter is currently pending.

Since USA filed its complaint, OFCCP has continued to request documents from the company, which USA has refused to submit. According to the press release, USA currently has twenty sites with open compliance evaluations.

In OFCCP’s complaint, it has requested the OALJ order USA to provide it with access to “all documents and information requested” and “cooperate” with the compliance reviews.  If USA fails to comply, OFCCP has requested the OALJ to “cancel all of USA’s current government contracts and to debar the entire company from entering future contracts.”

OFCCP has issued this press release as a warning that it will vigorously pursue enforcement actions against contractors who fail to provide OFCCP access to documents.  Director Patricia Shiu stated that “[p]roviding OFCCP investigators with access to the documents they need in order to do their jobs is not optional.”  OFCCP also noted that the “issue of providing OFCCP with access to such information has been affirmed by the courts numerous times.  In November 2011, Chief Judge Royce C. Lamberth of the U.S. District Court for the District of Columbia ruled, in a similar case, that ‘Submission to such lawful investigations is the price of working as a federal contractor.’”

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Filed under Affirmative Action Plan (AAP), Department of Labor, OFCCP

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