[Federal Register Volume 81, Number 166 (Friday, August 26, 2016)]
[Notices]
[Pages 58964-58980]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-20469]


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DEPARTMENT OF LABOR

Office of Federal Contract Compliance Programs


Proposed Renewal of the Approval of Information Collection 
Requirements; Comment Request

ACTION: Notice.

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SUMMARY: The Department of Labor (DOL), as part of its continuing 
effort to reduce paperwork and respondent burden, conducts a pre-
clearance consultation program to provide the general public and 
Federal agencies with an opportunity to comment on proposed and/or 
continuing collections of information in accordance with the Paperwork 
Reduction Act of 1995 (PRA), 44 U.S.C. 3506(c)(2)(A). This program 
helps to ensure that requested data can be provided in the desired 
format, reporting burden (time and financial resources) is minimized, 
collection instruments are clearly understood, and the impact of 
collection requirements on respondents can be properly assessed. The 
Office of Federal Contract Compliance Programs is soliciting comments 
concerning its proposal to renew the Office of Management and Budget 
(OMB) approval of the following information collections: ``38 U.S.C. 
4212, Vietnam Era Veterans' Readjustment Assistance Act, as Amended'' 
(OMB Control No. 1250-0004) and ``29 U.S.C. 793, Section 503 of the 
Rehabilitation Act of 1973, as Amended'' (OMB Control No. 1250-0005). 
The current OMB approval for these information collections expires on 
January 31, 2017. A copy of the proposed information collection request 
can be obtained by contacting the office listed below in the FOR 
FURTHER INFORMATION CONTACT section of this Notice or by accessing it 
at www.regulations.gov.

DATES: Written comments must be submitted to the office listed in the 
addresses section below on or before October 25, 2016.

ADDRESSES: You may submit comments, identified by Control Number 1250-
0004 and/or 1250-0005, by one of the following methods:
    Electronic comments: Through the federal eRulemaking Portal at 
www.regulations.gov. Follow the instructions for submitting comments.
    Mail, Hand Delivery, Courier: Address comments to Debra Carr, 
Director, Division of Policy and Program Development, Office of Federal 
Contract Compliance Programs, 200 Constitution Avenue NW., Room C3325, 
Washington, DC 20210.
    Instructions: Please submit one copy of your comments by only one 
method. All submissions received must include the agency name and OMB 
Control Number identified above for this information collection. 
Commenters are strongly encouraged to submit their comments 
electronically via the www.regulations.gov Web site or to mail their 
comments early to ensure that they are timely received. Comments, 
including any personal information provided, become a matter of public 
record and will be posted to the www.regulations.gov Web site. They 
will also be summarized and/or included in the request for OMB approval 
of the information collection request.

[[Page 58965]]


FOR FURTHER INFORMATION CONTACT: Debra Carr, Director, Division of 
Policy and Program Development, Office of Federal Contract Compliance 
Programs, 200 Constitution Avenue NW., Room C3325, Washington, DC 
20210. Telephone: (202) 693-0103 (voice) or (202) 693-1337 (TTY) (these 
are not toll-free numbers). Copies of this notice may be obtained in 
alternative formats (e.g., large print, braille, audio recording), upon 
request, by calling the numbers listed above.

SUPPLEMENTARY INFORMATION: 
    I. Background: The Office of Federal Contractor Compliance Programs 
(OFCCP) administers and enforces the three nondiscrimination and equal 
employment opportunity laws listed below.
     Executive Order 11246, as amended (E.O. 11246)
     Section 503 of the Rehabilitation Act of 1973, as amended, 
29 U.S.C. 793 (Section 503)
     Vietnam Era Veterans' Readjustment Assistance Act of 1974, 
as amended, 38 U.S.C. 4212 (VEVRAA)
    These authorities prohibit employment discrimination by Federal 
contractors and subcontractors and require them to take affirmative 
action to ensure that equal employment opportunities are available 
regardless of race, color, religion, sex, sexual orientation, gender 
identity, national origin, disability, or status as a protected 
veteran. Additionally, federal contractors and subcontractors are 
prohibited from discriminating against applicants and employees for 
asking about, discussing, or sharing information about their pay or, in 
certain circumstances, the pay of their co-workers. This information 
collection request covers the recordkeeping and third party disclosure 
requirements for Section 503 and VEVRAA. OFCCP is not proposing to 
collect new information with this renewal.
    Section 503 prohibits employment discrimination against applicants 
and employees because of physical or mental disability and requires 
affirmative action to ensure that persons are treated without regard to 
disability. Section 503 applies to Federal contractors and 
subcontractors with contracts in excess of $15,000.\1\
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    \1\ Effective October 1, 2010, the coverage threshold under 
Section 503 increased from $10,000 to $15,000, in accordance with 
the inflationary adjustment requirements in 41 U.S.C. 1908.
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    VEVRAA prohibits employment discrimination against protected 
veterans and requires affirmative action to ensure that persons are 
treated without regard to their status as a protected veteran. VEVRAA 
applies to Federal contractors and subcontractors with contracts of 
$150,000 or more.\2\
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    \2\ Effective October 1, 2015, the coverage threshold under 
VEVRAA increased from $100,000 to $150,000, in accordance with the 
inflationary adjustment requirements in 41 U.S.C. 1908.
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    II. Review Focus: DOL is particularly interested in comments which:
     Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
     evaluate the accuracy of the agency's estimate of the 
burden of the proposed collection of information, including the 
validity of the methodology and assumptions used;
     enhance the quality, utility and clarity of the 
information to be collected; and
     minimize the burden of the collection of information on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology, e.g., permitting 
electronic submissions of responses.
    III. Current Actions: DOL seeks the approval of the extension of 
this information in order to carry out its responsibility to enforce 
the affirmative action and nondiscrimination provisions of Section 503 
and VEVRAA, which it administers.
    Type of Review: Renewal.
    Agency: Office of Federal Contract Compliance Programs.
    Title: 38 U.S.C. 4212, Vietnam Era Veterans' Readjustment 
Assistance Act, as Amended.
    OMB Number: 1250-0004.
    Agency Number: None.
    Affected Public: Business or other for profit; individuals.
    Total Respondents: 41,814,991.
    Total Annual Responses: 41,814,991.
    Average Time per Response: 7.75 minutes (0.13 hour).
    Estimated Total Burden Hours: 5,427,933.
    Frequency: On occasion.
    Total Burden Cost (capital/startup): $0.
    Total Burden Cost (operating/maintenance): $667,186.56.
    Type of Review: Renewal.
    Agency: Office of Federal Contract Compliance Programs.
    Title: 29 U.S.C. 793, Section 503 of the Rehabilitation Act of 
1973, as Amended.
    OMB Number: 1250-0005.
    Agency Number: None.
    Affected Public: Business or other for profit; individuals.
    Total Respondents: 41,814,991.
    Total Annual Responses: 41,814,991.
    Average Time per Response: 6.3 minutes (0.11 hour).
    Estimated Total Burden Hours: 4,392,369.
    Frequency: On occasion.
    Total Burden Cost (capital/startup): $0.
    Total Burden Cost (operating/maintenance): $667,186.56.
    Comments submitted in response to this notice will be summarized 
and/or included in the request for OMB approval of the information 
collection request; they will also become a matter of public record.

    Dated: August 22, 2016.
Debra A. Carr,
Director, Division of Policy and Program Development, Office of Federal 
Contract Compliance Programs.
Note to Reviewer
    The Office of Federal Contract Compliance Programs (OFCCP) requests 
Office of Management and Budget (OMB) approval for 5,427,933 hours in 
combined recordkeeping and third party disclosure burden hours for 
compliance by federal contractors and subcontractors with the Vietnam 
Era Veterans' Readjustment Assistance Act of 1974, as amended (38 
U.S.C. 4212) (VEVRAA). This compares with 10,546,660 hours in the most 
recently approved clearance request in 2014, a decrease of 5,118,727 
(5,427,933 -10,546,660 = -5,118,727) hours. This decrease reflects an 
adjustment in the number of affected federal contractors, which was 
overestimated in the previous information collection.
    OFCCP will not be collecting any new or different information. The 
burden hours primarily represent those federal contractors and 
subcontractors that are required under VEVRAA to list their job 
openings with the appropriate employment service delivery system and to 
develop, update, and maintain an affirmative action program. Reporting 
requirements under VEVRAA are not included in this information 
collection, but rather, are included in the Scheduling Letter and 
Itemized Listing information collection request for nonconstruction 
supply and service Federal contractors, separately approved under OMB 
Control Number 1250-0003.
    As explained in Section 15 of this supporting statement, the 
decrease in burden hours for this information collection is primarily a 
result of OFCCP's proposal to use data from

[[Page 58966]]

Employer Information Report EEO-1 (EEO-1 Report) to determine the 
number of covered federal contractors and contractor establishments 
instead of the methodology used in the previous information collection, 
which averaged data from multiple sources. That methodology resulted in 
an overestimation of the number of affected contractors. The EEO-1 
Report provides a more accurate estimate of contractors and 
establishments covered by VEVRAA. EEO-1 Reports data from fiscal year 
2014 shows 23,960 federal contractor parent companies filed reports, 
with 115,831 total contractor establishments. These numbers are 
significantly less than the estimates used in the previous information 
collection (57,104 contractor companies and 211,287 contractor 
establishments). In addition, the decrease in burden hours is a result 
of certain requirements in the VEVRAA regulations that are only 
applicable to new contractors.

Supporting Statement

Department of Labor, OFCCP

OFCCP Recordkeeping and Reporting Requirements--38 U.S.C. 4212, Vietnam 
Era Veterans' Readjustment Assistance Act of 1974, as Amended

Control Number: 1250-0004

A. Justification

    The Office of Federal Contract Compliance Programs (OFCCP) is 
responsible for administering three equal opportunity laws that 
prohibit discrimination based on particular protected categories and 
require affirmative action to provide equal employment opportunities:
     Executive Order 11246, as amended (E.O. 11246),\1\
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    \1\ The regulations implementing Executive Order 11246 
applicable to supply and service contractors are found at 41 CFR 
parts 60-1, 60-2, 60-3, 60-20, and 60-50.
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     Section 503 of the Rehabilitation Act of 1973, as amended, 
29 U.S.C. 793 (Section 503),\2\ and
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    \2\ The regulations implementing Section 503 applicable to 
supply and service contractors are found at 41 CFR part 741.
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     Vietnam Era Veterans' Readjustment Assistance Act of 
1974,\3\ as amended, 38 U.S.C. 4212 (VEVRAA).
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    \3\ The regulations implementing VEVRAA applicable to supply and 
service contractors are found at 41 CFR part 60-300.
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    E.O. 11246 prohibits covered federal contractors \4\ from 
discriminating against applicants and employees based on race, color, 
religion, sex, sexual orientation, gender identity, and national 
origin. E.O. 11246 also prohibits contractors from taking 
discriminatory actions, including firing, against applicants and 
employees for asking about or sharing their own compensation 
information and, in certain instances, the compensation information of 
their co-workers.\5\ E.O. 11246 applies contractors holding a 
Government contract in excess of $10,000, or Government contracts that 
have, or can reasonably expect to have, an aggregate total value 
exceeding $10,000 in a 12-month period. E.O. 11246 also applies to 
Government bills of lading, depositories of Federal funds in any 
amount, and to financial institutions that are paying agents for U.S. 
Savings Bonds.
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    \4\ As used herein and unless otherwise specified, the term 
``contractors'' refers to federal contractors and subcontractors 
subject to the laws enforced by OFCCP. For E.O. 11246, the term also 
included federally assisted construction contractors and 
subcontractors.
    \5\ E.O. 13665 amended E.O. 11246 to include a prohibition on 
discrimination against any employee or applicant for inquiring 
about, discussing, or disclosing compensation or the compensation of 
another employee or applicant. Executive Order 13665, Non-
Retaliation for Disclosure of Compensation Information, 79 FR 20749 
(April 11, 2014). The final rule published on September 11, 2015 and 
became effective on January 11, 2016. 80 FR 54934 (Sept. 11, 2015).
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    Section 503 prohibits employment discrimination against applicants 
and employees based on disability and requires contractors to take 
affirmative action to employ, advance in employment, and otherwise 
treat qualified individuals without discrimination based on physical or 
mental disabilities. Its requirements apply to contractors with a 
Government contract in excess of $15,000.\6\
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    \6\ Effective October 1, 2010, the coverage threshold under 
Section 503 increased from $10,000 to $15,000, in accordance with 
the inflationary adjustment requirements in 41 U.S.C. 1908. See, 
Federal Acquisition Regulation; Inflation Adjustment of Acquisition-
Related Thresholds, 75 CFR 53129 (Aug. 30, 2010).
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    VEVRAA prohibits employment discrimination against protected 
veterans, namely disabled veterans, recently separated veterans, active 
duty wartime or campaign badge veterans, and Armed Forces service medal 
veterans, and requires contractors to take affirmative action to 
employ, advance in employment, and otherwise treat qualified 
individuals without discrimination based on their status as a protected 
veteran. Its requirements apply to contractors with a Government 
contract of $150,000 or more.\7\
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    \7\ Effective October 1, 2015, the coverage threshold under 
VEVRAA increased from $100,000 to $150,000, in accordance with the 
inflationary adjustment requirements in 41 U.S.C. 1908. See, Federal 
Acquisition Regulation; Inflation Adjustment of Acquisition-Related 
Thresholds, 80 FR 38293 (July 2, 2015).
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    OFCCP promulgated regulations implementing these programs 
consistent with the Administrative Procedure Act. These regulations are 
found at Title 41 of the Code of Federal Regulations (CFR) in Chapter 
60 and are accessible on the Web at http://www.dol.gov/dol/cfr/Title_41/Chapter_60.htm.
    For purposes of OFCCP's recordkeeping and reporting requirements, 
the agency divides the obligations under these authorities into 
multiple information collection requests (ICRs).\8\ These divisions are 
based on OFCCP's distinct enforcement authorities (e.g., E.O. 11246 and 
Section 503 each has its own recordkeeping ICR), programs, and related 
regulatory requirements.
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    \8\ OFCCP's other current ICRs include: Construction 
Recordkeeping Requirements (OMB No. 1250-0001), Complaint Procedures 
(OMB No. 1250-0002), Supply and Service Program (Scheduling Letter 
and Itemized Listing) (OMB No. 1250-0003), Section 503 Recordkeeping 
Requirements (OMB No. 1250-0005), Functional Affirmative Action 
Program Agreement Procedures (OMB No. 1250-0006), Government 
Contractors, Prohibitions Against Pay Secrecy Policies and Actions 
(OMB No. 1250-0008), and Prohibiting Discrimination Based on Sexual 
Orientation and Gender Identity by Contractors and Subcontractors 
(OMB No. 1250-0009). In the future, and as appropriate, OFCCP 
proposes to consolidate several of these ICRs.
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    The reporting requirements under VEVRAA are not included in this 
information collection, but rather, are included in the Scheduling 
Letter and Itemized Listing ICR for nonconstruction supply and service 
contractors, separately approved under OMB Control Number 1250-0003.
    Due to the pending expiration of OMB No. 1250-0004, OFCCP is 
seeking approval of the agency's VEVRAA recordkeeping and third party 
disclosure requirements.

1. Legal And Administrative Requirements

VEVRAA
41 CFR Part 60-300--Affirmative Action and Nondiscrimination 
Obligations of Federal Contractors and Subcontractors Regarding 
Disabled Veterans, Recently Separated Veterans, Active Duty Wartime or 
Campaign Badge Veterans, and Armed Forces Service Medal Veterans
    These regulations establish the basic nondiscrimination and 
affirmative action requirements under the VEVRAA program. They define 
coverage, specify clauses to be included in contracts, provide 
procedures to ensure compliance by covered contractors, specify 
reporting and recordkeeping requirements, establish a benchmark for 
veteran representation in the workforce, and outline the basic 
requirements for AAPs under VEVRAA.

[[Page 58967]]

    Section 60-300.5 describes the equal opportunity clause in Federal 
contracts. Paragraphs 2 through 6 of the clause pertain to the 
mandatory job listing requirements. Each covered contractor must list 
job openings with the appropriate state or local employment service 
delivery system (ESDS) in a format permitted by the ESDS. Each covered 
contractor must also provide and update as necessary information to the 
appropriate ESDS, including: Its status as a Federal contractor; that 
it desires priority referrals of protected veterans from the ESDS; the 
name and location of each hiring location within the state; and the 
contact information for the contractor official responsible for hiring 
at each location as well as any external job search organizations the 
contractor uses to assist in its hiring. Each contractor is required to 
include the EO clause in each of its subcontracts of $150,000 or more, 
although the clause may be incorporated by reference or operation.
    Section 60-300.40 requires contractors with 50 or more employees 
and a contract of $150,000 or more to develop a VEVRAA AAP.
    Section 60-300.42 requires contractors to invite job applicants at 
the pre-offer and post-offer stages to self-identify as protected 
veterans. The invitations to self-identify must state that the 
contractor is required to take affirmative action to employ and advance 
in employment protected veterans, and that the information sought is 
being requested on a voluntary basis.
    Section 60-300.44 identifies the required elements of an AAP, 
including those listed below.

     Develop and include an equal opportunity policy statement 
in the AAP.
     Review personnel processes to ensure that qualified 
protected veterans are provided equal opportunity
     Review all physical and mental job qualification standards 
to ensure that, to the extent any tend to screen out qualified disabled 
veterans, that the standards are job-related and consistent with 
business necessity.
     Provide reasonable accommodations for physical and mental 
limitations.
     Develop and implement procedures to ensure that employees 
are not harassed because of their veteran status.
     Develop procedures and practices to disseminate 
affirmative action policies, both internally and externally, and 
undertake appropriate outreach and positive recruitment activities 
designed to effectively recruit protected veterans.
     Establish an audit and reporting system to measure the 
effectiveness of the AAP.
     Designate a responsible official to implement and oversee 
the AAP.
     Provide training to all personnel involved in the 
recruitment, screening, selection, promotion, disciplinary, and related 
processes to ensure that the commitments in the contractor's 
affirmative action program are implemented.
     Conduct data collection analysis pertaining to applicants 
and hires on an annual basis and maintain them for a period of three 
(3) years, including: The total number of job openings and total number 
of jobs filled; the total number of applicants for all jobs; the number 
of protected veteran applicants hired; the total number of applicants 
hired; and the number of applicants who self-identified as protected 
veterans or who are otherwise known as protected veterans.

    Section 60-300.45 requires contractors to either adopt the a hiring 
benchmark equal to the national percentage of veterans in the civilian 
labor force, or establish a hiring benchmark for protected veterans 
taking into account five factors specified in the regulation.
    Section 60-300.60 identifies the investigative methods OFCCP uses 
to evaluate a contractor's compliance with the agency's regulations. 
These methods range from an in-depth comprehensive evaluation of the 
contractor's employment practices (i.e., compliance review) to a 
narrowly focused analysis of a selected employment practice or policy 
(i.e., compliance check), among others. Evaluation of compliance with 
VEVRAA is concurrent with evaluation of the contractor's compliance 
with E.O. 11246 and Section 503.

2. Use of Materials

    The EO Clause, located at section 60-300.5, requires contractors to 
list job openings with the appropriate state or local ESDS in a format 
permitted by the ESDS. Each covered contractor must also provide and 
update as necessary information to the appropriate ESDS, including: Its 
status as a Federal contractor; that it desires priority referrals of 
protected veterans from the ESDS; the name and location of each hiring 
location within the state; and the contact information for the 
contractor official responsible for hiring at each location as well as 
any external job search organizations the contractor uses to assist in 
its hiring. The mandatory job listing requirement is a critical 
component to helping veterans find work with federal contractors. 
Providing the ESDS with the name and location of the contractor's 
hiring locations and contact information enables the ESDS to develop a 
centralized list of federal contractors and ensures that they have 
appropriate contact information if there are any questions that need to 
be resolved in the job listing or priority referral process.
    Section 60-300.42 outlines the requirements for contractors' 
obligations to invite individuals to self-identify as a protected 
veteran. This process enables the contractor and OFCCP to collect 
valuable data on the number of protected veterans who apply for or are 
hired into federal contractor positions. This allows for assessment of 
the effectiveness of the contractor's recruitment and affirmative 
action efforts over time, and promotes successful recruitment and 
affirmative action.
    Section 60-300.44 describes the required contents of a contractor's 
written affirmative action program. During a compliance evaluation, 
OFCCP reviews the contractor's affirmative action program to determine 
whether the contractor is complying with its obligations not to 
discriminate in employment and to take affirmative action to ensure 
equal employment opportunity.
    Section 60-300.45 requires contractors to set a benchmark for 
hiring protected veterans by using the national average for the number 
of veterans in the civilian labor force which OFCCP will provide (and 
periodically update) on its public Web site, or by setting a benchmark 
that fits the company's specific needs. This requirement provides 
contractors with a yardstick by which they can objectively measure the 
effectiveness of their efforts.

3. Improved Information Technology

    In general, under OFCCP regulations each contractor develops its 
own methods for collecting and maintaining information. Contractors 
have the option to use methods that best suit their needs as long as 
they can retrieve and provide OFCCP with data upon request during a 
compliance evaluation.
    The majority of contractors are repeat contractors. Since they are 
subject to OFCCP's regulatory requirements year after year, most have 
developed their information technology systems to generate the data 
required by OFCCP regulations.
    Information technology systems used to comply with data 
requirements under OFCCP's VEVRAA regulations should be capable of 
performing the below functions.


[[Page 58968]]


 Collecting and analyzing employment activity data related to 
VEVRAA
 Analyzing outreach and recruitment
 Tracking self-identification
 Disseminating internal and external EO policies
 Providing notice to subcontractors and vendors
 Facilitating calculation of VEVRAA benchmarks
 Auditing and reporting of AAP program elements

    In addition, OFCCP provides compliance assistance to all 
contractors, including smaller contractors by leveraging information 
technology. For example, OFCCP's Web site provides access to compliance 
resources and information, including the following.

 VEVRAA Contractor Resources http://www.dol.gov/ofccp/regs/compliance/Resources.htm
 Fact Sheets, Frequently Asked Questions and Webinar training 
http://www.dol.gov/ofccp/regs/compliance/vevraa.htm
 Sample AAPs http://www.dol.gov/ofccp/regs/compliance/AAPs/AAPs.htm
 Contractors' VEVRAA Hiring Benchmark Database https://ofccp.dol-esa.gov/errd/VEVRAA.jsp
 Disability and Veterans Community Resources Directory https://ofccp.dol-esa.gov/errd/Resources.503VEVRAA.html
 Employment Resource Referral Directory https://ofccp.dol-esa.gov/errd/index.html

    OFCCP believes that advances in technology make contractor 
compliance with the recordkeeping and reporting requirements easier and 
less burdensome. However, in the absence of empirical data, OFCCP is 
unable to quantify the impact of improved information technology and 
thus, OFCCP does not include it in the calculation of burden hours.
    According to the Government Paperwork Elimination Act (GPEA, Pub. 
L. 105-277, 1998), by October 2003, Government agencies must generally 
provide the option of using and accepting electronic documents and 
signatures, and electronic recordkeeping, where practicable. OFCCP 
fulfills its GPEA requirements by permitting contractors to submit AAPs 
and supporting documentation via email or other electronic format.

4. Description of Efforts To Identify Duplication

    The recordkeeping requirements contained in this request result 
exclusively from the implementation of VEVRAA. This authority uniquely 
empowers the Secretary of Labor, and by a Secretary's Order, the OFCCP, 
to require the collection, analysis, and reporting of data and other 
information in connection with the enforcement of the law and 
regulations requiring contractors to take affirmative action to ensure 
equal employment opportunity. No duplication of effort exists because 
no other Government agency has these specific data collection 
requirements.
    While contractors maintain other employment data in the normal 
course of business, affirmative action programs under VEVRAA are unique 
in that contractors create them specifically to meet the requirements 
of OFCCP regulations. This comprehensive document is not available from 
any other source. Therefore, no duplication of effort exists.

5. Collection From Small Organizations

    OFCCP's information collection does not have a significant economic 
impact on a substantial number of small entities. OFCCP minimizes the 
information collection and recordkeeping burden on a significant number 
of small businesses by exempting contractor establishments with fewer 
than 50 employees from the AAP requirement. However, once OFCCP's 
authority covers one contractor's establishment, all of its employees 
must be accounted for in an AAP whether or not each of the contractor's 
establishments meet the minimum 50 employees threshold.\9\
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    \9\ 41 CFR 60-300.40--Applicability of the affirmative action 
program requirement.
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6. Consequences for Federal Programs if This Information Is Collected 
Less Frequently

    The requirements outlined in this ICR ensure that covered 
contractors meet their equal opportunity obligations to protected 
veterans. The nondiscrimination requirements of VEVRAA apply to all 
covered contractors. See 41 CFR 60-300.4. The requirement to prepare 
and maintain an affirmative action program, the specific obligations of 
which are detailed at 41 CFR 60-300.44, apply to those contractors with 
a Government contract of $150,000 or more and 50 or more employees.
    If this information is collected less frequently than required, it 
could compromise OFCCP's enforcement of VEVRAA and its implementing 
regulations. OFCCP reviews contractor compliance through its compliance 
evaluation process. See 41 CFR 60-300.60. In order to accurately 
determine compliance, both OFCCP and the contractor must be able to 
analyze contractor actions taken and results obtained. Additionally, 
the data collection frequency for this ICR mirrors that of OFCCP's 
other programs, particularly the E.O. 11246 and Section 503 supply and 
service program, as VEVRAA compliance evaluations are conducted 
concurrently with that program.
    As noted under Control Number 1250-0003, the older the data, the 
greater the chances that more qualified workers are the victims of any 
discrimination that has occurred and that the discrimination continues 
for a longer period. A consequence of such older data may be that the 
scope of the violation, resulting harm and the overall burden of 
contractor compliance are greater.

7. Special Circumstances for the Collection of Information

    There are no special circumstances for the collection of this 
information.

8. Consultation Outside the Agency

    OFCCP publishes all regulations containing recordkeeping or 
reporting requirements in the Federal Register for public comment 
before agency adoption. In addition, OFCCP maintains an ongoing 
dialogue, through compliance assistance, with contractor groups on a 
number of compliance issues, among them reporting and recordkeeping.
    OFCCP will address comments received from the public under this 
paragraph at the end of the 60-day Federal Register comment period.

9. Gift Giving

    OFCCP provides neither payments nor gifts to respondents.

10. Assurance of Confidentiality

    Contractors who submit the required information may view it as 
sensitive information. OFCCP will evaluate all information pursuant to 
the public inspection and disclosure provisions of the Freedom of 
Information Act (FOIA), 5 U.S.C. 552, and the Department of Labor's 
implementing regulations at 29 CFR part 70. OFCCP requires that a 
contractor affected by a FOIA disclosure request be notified in writing 
and no decision to disclose information is made until the contractor 
has an opportunity to submit objections to the release of the 
information. Furthermore, it is OFCCP's position that it does not 
release any data obtained during the course of a compliance evaluation 
until the matter is completed.

[[Page 58969]]

11. Sensitive Questions

    VEVRAA requires contractors to invite applicants to self-identify 
as a protected veteran and indicate whether a reasonable accommodation 
is required. The protected veteran category includes disabled veterans. 
Generally, a contractor informs its protected veteran employees that it 
collects and maintains their data strictly for affirmative action 
purposes. Race and sex data is not required under VEVRAA.

12. Estimate of Annual Information Collection Burden

    The following is a summary of the methodology for the calculation 
of the recordkeeping and third party disclosure requirements for 
OFCCP's VEVRAA ICR.
    As noted at the beginning of this supporting statement, the total 
in combined recordkeeping and third party disclosure burden hours for 
this ICR (5,398,974) is less than total number of hours approved in 
2014 (10,546,660), as detailed in Sec. 15 below.

A. Information Collections

Section 60-300.5 Equal Opportunity Clause

    Paragraph 2 of the Equal Opportunity Clause (EO Clause) requires 
contractors to list their job openings with the state or local 
employment service delivery system (employment service). OFCCP 
estimates that gathering records and providing the job listing to the 
employment service will take 25 minutes for approximately 15 listings 
per year. The burden for this third-party disclosure is 723,944 hours 
(115,831 contractor establishments x 25 minutes x 15 listings/60 = 
723,944 hours).
    Paragraph 4 of the EO Clause requires contractors to provide the 
appropriate employment service with the name and location of each of 
the contractor's hiring locations, a statement of its status as a 
federal contractor, the contact information for the hiring official at 
each location in the state, and a request for priority referrals of 
protected veterans. Paragraph 4 also requires contractors that use job 
search organizations to provide the employment service with the contact 
information for each job search organization. These requirements apply 
to new contractors, which OFCCP estimates to be 1 percent of all 
covered contractors. Existing contractors (or 99 percent of 
contractors) would have already provided the required information to 
the appropriate employment service or job search organization, as 
accounted for in the previous information collection. OFCCP estimates a 
total of 15 minutes for a new contractor to ensure that its information 
is provided to the employment service. The annual burden for this 
provision is 290 hours (1,158 new contractor establishments x 15 
minutes/60 = 290 hours). OFCCP further estimates that 25 percent of new 
contractors, or 290, will use outside job search organizations and 
incur an additional 5-minute burden to notify the employment service of 
the contact information for its outside job search organizations. The 
annual burden for this provision is 24 hours (290 contractor 
establishments x 5 minutes/60 = 24 hours). This is a third-party 
disclosure.

Section 60-300.42 Invitation to Self-Identify

    Section 60-300.42(a) requires contractors to extend a pre-offer 
invitation to self-identify as a ``protected veteran.'' In the previous 
information collection, OFCCP estimated that contractors working at the 
company level will take 1.5 hours to review and retrieve existing 
sample invitations to self-identify, adopt the sample ``as is'' or make 
revisions to their existing form, save the invitation to self-identify 
and incorporate the document in the contractor's application form. 
Existing contractors will no longer need to take these steps to comply 
with the pre-offer invitation requirement, so the estimated burden in 
this information collection applies to only new contractor parent 
companies, or 1 percent of the 23,960 contractor companies. The burden 
for this provision is 360 hours (240 new contractor companies x 1.5 
hours = 360 hours).
    Applicants for available positions with covered contractors will 
have a minimal burden complying with Sec.  60-300.42(a) in the course 
of completing their application for employment with the contractor. 
Section 60-300.42(a), on pre-offer self-identification, requires 
contractors to invite all applicants to self-identify whether or not 
they are a protected veteran. OFCCP estimates that there will be an 
average of 24 applicants per job vacancy for on average 15 vacancies 
per year. OFCCP further estimates that it will take applicants 
approximately 5 minutes to complete the form. The burden for this 
provision, assuming that all applicants complete the form, is 3,474,930 
hours (115,831 contractor establishments x 15 listings x 24 applicants 
x 5 minutes/60 = 3,474,930 hours). This is a third-party disclosure.
    OFCCP further estimates that it will take contractors 15 minutes to 
maintain self-identification forms. This time includes either manually 
storing the forms in a filing cabinet or saving them to an electronic 
database. The burden for this provision is 28,958 hours (115,831 
contractor establishments x 15 minutes/60 = 28,958 hours).

Section 60-300.44 Required Contents of the Affirmative Action Program

    OFCCP estimates that it takes existing contractors (99 percent of 
all contractor establishments), or 114,673, approximately 7.5 hours to 
document and maintain material evidence of annually updating a joint 
section 503 and VEVRAA affirmative action program. The burden for this 
requirement is 860,048 hours (114,673 contractor establishments x 7.5 
hours = 860,048 hours).
    OFCCP estimates that 1 percent of all contractors, or 1,158, are 
new contractors that will need to initially develop a joint section 503 
and VEVRAA affirmative action program. OFCCP estimates that it takes 
approximately 18 hours to document and maintain material evidence of 
developing the program. Therefore, the recordkeeping burden for this 
provision is 20,844 hours (1,158 contractor establishments x 18 hours = 
20,844 hours).

60-300.44(f) External Dissemination of Policy, Outreach and Positive 
Recruitment

    Section 60-300.44(f)(1)(ii) requires contractors to send written 
notification of the company's affirmative action program policies to 
subcontractors, vendors, and suppliers. OFCCP estimates that 
contractors will take 15 minutes to prepare the notification and send 
it to subcontractors, vendors, and suppliers, and an additional 15 
minutes to update email address changes in the company's email system. 
Likewise, the burden for any information technology assistance needed 
to send the written communication is estimated at 15 minutes. The 
burden for this request is 86,873 hours (115,831 contractor 
establishments x 45 minutes/60 = 86,873 hours). This is a third-party 
disclosure.
    Section 60-300.44(f)(4) requires contractors to document all 
outreach activities it undertakes for protected veterans, and retain 
these documents for a period of 3 years. OFCCP estimates that it will 
take contractors 15 minutes to retain the required documentation. 
Retaining these records means storing the records generated either 
electronically or in hardcopy, consistent with the contractor's 
existing business practices for how to store records. The annual 
recordkeeping burden for this provision is 28,958 hours (115,831

[[Page 58970]]

contractor establishments x 15 minutes/60 = 28,958 hour).

Section 60-300.44(h) Audit and Reporting System

    Section 60-300.44(h)(1)(vi) requires contractors to document the 
actions taken to meet the requirements of 60-300.44(h). OFCCP estimates 
that it will take contractors 10 minutes to document compliance with 
this provision to create an audit and reporting system. Documentation 
may include, as an example, the standard operating procedure of the 
system including roles and responsibilities, and audit and reporting 
timeframes and lifecycles. The annual recordkeeping burden of this 
provision is 19,305 hours (115,831 contractor establishments x 10 
minutes/60 = 19,305 hours).

Section 60-300.44(k) Data Collection and Analysis

    Section 60-300(k) requires contractors to collect and analyze 
certain categories of data. OFCCP believes that most contractors have 
the capability to conduct the required calculations electronically. 
However, some companies may have to calculate this information 
manually. Therefore, OFCCP estimates that the average time to conduct 
the analysis and maintain the relevant documentation would be 1 hour 25 
minutes. Relevant documentation could include the report or other 
written documentation generated by the calculations that explain the 
methodology, the data used, and the findings and conclusions; the data 
used to conduct the calculations for subsequent validation of the 
results; and other material used by the contractor for the 
calculations. The recurring burden for this provision is 164,094 hours 
(115,831 contractor establishments x 85 minutes/60 = 164,094 hours).

Section 60-300.45 Benchmarks for Hiring

    Section 60-300.45 requires the contractor to establish benchmarks 
in one of two ways. A contractor may use as its benchmark the national 
average number of veterans in the civilian labor force, which OFCCP 
will provide (and periodically update) on its public Web site. Or, 
alternatively, the contractor may establish its own individual 
benchmark using the five-factor method set forth in Section 60-
300.45(b)(2)(i)-(v). OFCCP estimates that it will take contractors on 
average 10 minutes to maintain material evidence of compliance with 
this provision. The burden of this provision would be 19,305 hours 
(115,831 establishments x 10 minutes/60 = 19,305 hours).

Section 60-300.81 Access to Records

    Section 60-300.81 requires contractors who are the subject of a 
compliance evaluation or complaint investigation to specify all 
available record formats and allow OFCCP to select preferred record 
formats from those identified by the contractor during a compliance 
evaluation. Pursuant to 5 CFR 1320.4(a)(2), this information collection 
is excluded from the PRA requirements because it is related to an 
``administrative action, investigation, or audit involving an agency 
against specific individuals or entities.''

B. Summary of Costs

    The estimated cost to contractors is based on Bureau of Labor 
Statistics data in the publication ``Employer Costs for Employee 
Compensation'' (December 2015), which lists total compensation for 
management, professional, and related occupations as $55.47 per hour 
and administrative support as $24.75 per hour. OFCCP estimates that 52 
percent of the burden hours will be management, professional, and 
related occupations and 48 percent will be administrative support, for 
a weighted average of $40.72 per burden hour.

Table 1--Summary of Recordkeeping Burden Hours and Costs for Contractors
------------------------------------------------------------------------
            Requirements                Burden hours      Burden costs
------------------------------------------------------------------------
300.42 (Invitation to Self-Identify)            29,318        $14,659.20
300.44--Existing Contractors                   860,048     35,021,154.56
 (Written Affirmative Action
 Program)...........................
300.44--New Contractors (Written                20,844        848,767.68
 Affirmative Action Program)........
300.44(f)(4) (Outreach and                      28,958      1,179,169.76
 Recruitment Recordkeeping).........
300.44(h) (Audit & Reporting System             19,305        786,099.60
 Recordkeeping).....................
300.44(k) (Data Collection Analysis)           164,094      6,681,907.68
300.45 (Benchmarks Recordkeeping)...            19,305        786,099.60
                                     -----------------------------------
    Total...........................         1,141,872     46,497,027.80
------------------------------------------------------------------------


  Table 2--Summary of Third Party Disclosure Burden Hours and Costs for
                               Contractors
------------------------------------------------------------------------
            Requirements                Burden hours      Burden costs
------------------------------------------------------------------------
300.5 (EO Clause, Parag 2--Mandatory           723,944    $29,478,999.68
 Job Listing).......................
300.5 (EO Clause, Parag 4--Contact                 290         11,808.80
 Information).......................
300.5 (EO Clause, Parag 4--Job                      24            977.28
 Search Orgs Contact Information)...
300.44(f)(1) (Notice to                         86,873      3,537,468.56
 Subcontractors, etc.)..............
                                     -----------------------------------
    Total...........................           811,131     33,029,254.32
------------------------------------------------------------------------


  Table 3--Summary of Third Party Disclosure Burden Hours and Costs for
                             Non-Contractors
------------------------------------------------------------------------
             Requirement                Burden hours      Burden costs
------------------------------------------------------------------------
Section 60-300.42 (Self-                     3,474,930   $116,688,149.40
 Identification)....................
------------------------------------------------------------------------

    The total estimated cost for applicants to fill out the self-
identification form is based on Bureau of Labor Statistics data in the 
publication ``Employer Costs for Employee Compensation'' (December 
2015), which lists an average total

[[Page 58971]]

hourly compensation for all civilian workers of $33.58.

 Table 4--Total Burden for Sec.  Sec.   60-300.5; 60-300.42; 60-300.44;
                              and 60-300.45
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Recordkeeping Burden Hours..........................           1,141,872
Reporting Burden Hours..............................                   0
Third Party Disclosure Burden Hours.................           4,286,061
                                                     -------------------
    Total Burden Hours..............................           5,427,933
------------------------------------------------------------------------

13. Operations and Maintenance Costs

    OFCCP estimates that contractors will have some operations and 
maintenance costs in addition to the burden calculated above.
60-300.42 Invitation To Self Identify
    OFCCP estimates that the contractor will have some operations and 
maintenance cost associated with the invitations to self-identify. The 
contractor must invite all applicants to self-identify at both the pre-
offer and post-offer stage of the employment process. Given the 
increasingly widespread use of electronic applications, any contractor 
that uses such applications would not incur copy costs. However, to 
account for contractors who may still choose to use paper applications, 
we are including printing and/or copying costs. Therefore, we estimate 
a single one-page form for both the pre- and post-offer invitation. 
Assuming 20 percent of all contractors will use a paper-based 
application system, and receive 24 applications for an average of 15 
listings per establishment, the minimum estimated total cost to 
contractors will be $667,186.56 ((115,831 establishments x 20 percent) 
x 360 copies x $0.08 = $667,186.56).

14. Estimate of Annual Cost to Federal Government

    OFCCP associates no unique federal costs with this information 
collection. OMB Control Numbers 1250-0001 and 1250-0003 currently 
include the annual costs of federal contractor compliance evaluations 
to ensure their compliance with the information collection requirements 
contained herein.

15. Changes in Burden Hours

    OFCCP is requesting OMB approval of 5,427,933 burden hours. The 
2014 clearance contained approval of 10,546,660 hours. The decrease in 
hours of the current request is attributable to OFCCP's proposal to use 
data from EEO-1 Reports to determine the number of covered contractors 
and contractor establishments instead of the methodology used in the 
previous information collection, which averaged data from multiple 
sources. EEO-1 data from fiscal year (FY) 2014 shows 23,960 federal 
contractor parent companies filed reports, with 115,831 total 
contractor establishments. These numbers are significantly less than 
the estimates used in the previous information collection (57,104 
contractor companies and 211,287 contractor establishments).
    OFCCP believes that the EEO-1 Report provides the more accurate 
estimate of Federal contractors and establishments covered by this 
VEVRAA information collection. Section 60-1.7 requires specified 
Federal prime contractors and subcontractors to file an EEO-1 Report 
annually.\10\
---------------------------------------------------------------------------

    \10\ The U.S. Equal Employment Opportunity Commission (EEOC) and 
OFCCP use EEO-1 Report data to analyze employment patterns for women 
and minorities and as a civil rights enforcement tool. OMB approved 
the EEO-1 Report information collection under OMB No. 3046-0007. The 
information collection can be viewed at http://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=201412-3046-001. It is currently in the 
renewal process, and OMB most recently approved an extension of the 
ICR expiration date of October 31, 2016.
---------------------------------------------------------------------------

    Employers use the EEO-1 Report (question 3) to self-identify as 
federal contractors and subcontractors and indicate whether they meet 
the thresholds under E.O. 11246 for AAP coverage: 50 or more employees 
and $50,000 or more contract value.\11\ The $50,000 contract threshold 
is less than the $150,000 contract value threshold for AAP coverage 
under VEVRAA. Thus, the number of contractors identified in the EEO-1 
Reports will be greater than the number of contractors required to 
establish a VEVRAA AAP. Nevertheless, the number of contractors 
identified in the EEO-1 Reports provides a reasonable estimate for 
calculating the burden in this information collection, even if it 
overestimates the universe of contractors.\12\ Any overestimate will be 
offset to some degree by the requirement that covered contractors must 
develop AAPs to cover employees at all of their establishments, even 
those with fewer than 50 employees. Any overestimate will be further 
offset to a small degree by the estimates for section 60-300.5 (Equal 
Opportunity Clause), which applies to contracts of $150,000 or more but 
has no employee threshold. Taking these considerations into account, 
OFCCP believes that the 115,831 contractor establishment total is a 
reasonable, if not perfect, estimate.
---------------------------------------------------------------------------

    \11\ 41 CFR 60-1.7--Reports and other required information.
    \12\ The number of contractors with contracts of at least 
$150,000 cannot be separately identified using the EEO-1 survey.
---------------------------------------------------------------------------

    In the previous information collection approved in 2014 and in the 
VEVRAA final rule published in September 2013, OFCCP estimated the 
number of affected contractors and establishments to be 57,104 and 
211,287, respectively. OFCCP now believes that these figures are an 
overestimate of the number of contractors with recordkeeping and third 
party disclosure burdens under this information collection. The numbers 
estimated in the final rule derived from a combination of data from FY 
2009 EEO-1 Reports, the Federal Procurement Data System, the Veterans 
Employment and Training Services annual report, and other sources. See 
78 FR 58658. The data from these sources is no longer current. 
Moreover, the methodology used to arrive at the estimates was based in 
large part on how OFCCP develops its Scheduling List of contractors for 
compliance evaluations. OFCCP develops its list of contractors for 
scheduling compliance evaluations by using multiple sources of 
information such as Federal acquisition and procurement databases, EEO-
1 Reports, Dun & Bradstreet (D&B) data, and the U.S. Census Bureau 
tabulations. Statistical thresholds such as industry type and employee 
counts of contractor establishments are also used. The list may be 
further refined by applying a number of neutral factors such as 
contract expiration date and contract value on the number of 
establishments per contractor that will be scheduled in any one cycle. 
This methodology is appropriate for scheduling compliance evaluations, 
but it does not accurately reflect the number of contractors required 
to develop AAPs.
    This distinction is recognized in the most recent Scheduling Letter 
and Itemized Listing ICR (Control Number

[[Page 58972]]

1250-0003), in which OFCCP estimated the number of contractors required 
to develop AAPs under E.O. 11246 using data from only the EEO-1 
Reports, instead of the more complex methodology OFCCP uses to create 
its Scheduling Letter and Itemized Listing. Thus, to be consistent with 
that approach, OFCCP will now use data from only the EEO-1 Reports to 
estimate the number of contractors affected by this information 
collection, which consists primarily of recordkeeping and third party 
disclosures resulting from the VEVRAA AAP requirements.
    A summary of the change in hours is below.
a. Recordkeeping Burden Hours
    The previous submission included 2,205,468 hours. The current 
request is 1,141,872 hours for an adjustment decrease of 1,063,596 
hours. This decrease is primarily a result of the use of the contractor 
totals from the EEO-1 Reports data, discussed above, but also includes 
adjustments due to requirements that are no longer applicable to 
existing contractors.
b. Third Party Disclosure Burden Hours
    The previous submission included 8,341,192 hours. The current 
request is 4,286,061 hours for an adjustment decrease of 4,055,131 
hours. This decrease is primarily a result of the use of the contractor 
totals from the EEO-1 Reports data, discussed above, but also includes 
adjustments due to requirements that are no longer applicable to 
existing contractors.
c. Other Burden Hours and Costs
    The previous submission included 1,670,297 hours in initial capital 
or start-up costs and $1,217,002 in printing/copying costs. The current 
request no longer includes any initial capital and start-up costs, and 
estimates $667,186.56 for printing/copying. This is an adjustment 
decrease of 1,670,294 hours and $549,815.44. This decrease in printing/
copying costs is exclusively a result of the use of the contractor 
totals from the EEO-1 Reports data, discussed above.

16. Statistical Uses and Publication of Data

    OFCCP does not publish the data collected by way of the items 
contained in this request as statistical tables.

17. Approval Not To Display the Expiration Date

    OFCCP is not seeking such approval.

18. Exceptions to the Certification Statement

    OFCCP is able to certify compliance with all provisions.

B. Collection of Information Employing Statistical Methods

    This information collection does not employ statistical methods.
Note to Reviewer
    The Office of Federal Contract Compliance Programs (OFCCP) requests 
Office of Management and Budget (OMB) approval for 4,392,369 hours in 
combined recordkeeping and third party disclosure burden hours for 
compliance by federal contractors and subcontractors with Section 503 
of the Rehabilitation Act, as amended (29 U.S.C. 793). This compares 
with 10,229,910 hours in the most recently approved clearance request 
in 2014, a decrease of 5,837,541 (6,629,073 - 10,229,910 = -5,837,541) 
hours. This decrease reflects an adjustment in the number of affected 
federal contractors, which was overestimated in the previous 
information collection.
    OFCCP will not be collecting any new or different information. The 
burden hours primarily represent those federal contractors and 
subcontractors that are required under Section 503 to develop, update, 
and maintain an affirmative action program. Reporting requirements 
under Section 503 are not included in this information collection, but 
rather, are included in the Scheduling Letter and Itemized Listing 
information collection request for nonconstruction supply and service 
federal contractors, separately approved under OMB Control Number 1250-
0003.
    As explained in Section 15 of this supporting statement, the 
decrease in burden hours for this information collection is largely a 
result of OFCCP's proposal to use data from Employer Information Report 
EEO-1 (EEO-1 Report) to determine the number of covered federal 
contractors and contractor establishments instead of the methodology 
used in the previous information collection, which averaged data from 
multiple sources. That methodology resulted in an overestimation of the 
number of affected contractors. The EEO-1 Report provides a more 
accurate estimate of contractors and establishments covered by Section 
503. EEO-1 Report data from fiscal 2014 shows 23,960 federal contractor 
parent companies filed reports, with 115,831 total contractor 
establishments. These numbers are significantly less than the estimates 
used in the previous information collection (57,104 contractor 
companies and 211,287 contractor establishments). In addition, the 
decrease in burden hours is a result of adjustments in the estimated 
time contractors need to complete the employee self-identification 
survey, to account for the five-year interval between having to conduct 
surveys, and for certain requirements in the Section 503 regulations 
that are only applicable to new contractors.

Supporting Statement

Department of Labor, OFCCP

OFCCP Recordkeeping and Reporting Requirements--29 U.S.C. 793 Section 
503 of the Rehabilitation Act of 1973, as Amended

Control Number: 1250-0005

A. Justification

    The Office of Federal Contract Compliance Programs (OFCCP) is 
responsible for administering three equal opportunity laws that 
prohibit discrimination based on particular protected categories and 
require affirmative action to provide equal employment opportunities:

 Executive Order 11246, as amended (E.O. 11246),\1\
---------------------------------------------------------------------------

    \1\ The regulations implementing Executive Order 11246 
applicable to supply and service contractors are found at 41 CFR 
parts 60-1, 60-2, 60-3, 60-20, and 60-50.
---------------------------------------------------------------------------

     Section 503 of the Rehabilitation Act of 1973, as amended, 
29 U.S.C. 793 (Section 503),\2\ and
---------------------------------------------------------------------------

    \2\ The regulations implementing Section 503 applicable to 
supply and service contractors are found at 41 CFR part 741.
---------------------------------------------------------------------------

     Vietnam Era Veterans' Readjustment Assistance Act of 
1974,\3\ as amended, 38 U.S.C. 4212 (VEVRAA).
---------------------------------------------------------------------------

    \3\ The regulations implementing VEVRAA applicable to supply and 
service contractors are found at 41 CFR part 60-300.
---------------------------------------------------------------------------

    E.O. 11246 prohibits federal contractors \4\ from discriminating 
against applicants and employees based on race, color, religion, sex, 
sexual orientation, gender identity, and national origin. E.O. 11246 
also prohibits contractors from taking discriminatory actions, 
including firing, against applicants and employees for asking about or 
sharing information about their own compensation and, in certain 
instances, the compensation information of their co-workers.\5\ E.O.

[[Page 58973]]

11246 applies to contractors holding a Government contract in excess of 
$10,000, or Government contracts that have, or can reasonably expect to 
have, an aggregate total value exceeding $10,000 in a 12-month period. 
E.O. 11246 also applies to Government bills of lading, depositories of 
Federal funds in any amount, and to financial institutions that are 
paying agents for U.S. Savings Bonds.
---------------------------------------------------------------------------

    \4\ As used herein and unless otherwise specified, the term 
``contractors'' refers to federal contractors and subcontractors 
subject to the laws enforced by OFCCP. For E.O. 11246, the term also 
included federally assisted construction contractors and 
subcontractors.
    \5\ E.O. 13665 amended E.O. 11246 to include a prohibition on 
discrimination against any employee or applicant for inquiring 
about, discussing, or disclosing compensation or the compensation of 
another employee or applicant. Executive Order 13665, Non-
Retaliation for Disclosure of Compensation Information, 79 FR 20749 
(April 11, 2014). The final rule published on September 11, 2015 and 
became effective on January 11, 2016. 80 FR 54934 (Sept. 11, 2015).
---------------------------------------------------------------------------

    Section 503 prohibits employment discrimination against applicants 
and employees based on disability and requires contractors to take 
affirmative action to employ, advance in employment, and otherwise 
treat qualified individuals without discrimination based on physical or 
mental disabilities. Its requirements apply to contractors with a 
Government contract in excess of $15,000.\6\
---------------------------------------------------------------------------

    \6\ Effective October 1, 2010, the coverage threshold under 
Section 503 increased from $10,000 to $15,000, in accordance with 
the inflationary adjustment requirements in 41 U.S.C. 1908. See, 
Federal Acquisition Regulation; Inflation Adjustment of Acquisition-
Related Thresholds, 75 CFR 53129 (Aug. 30, 2010).
---------------------------------------------------------------------------

    VEVRAA prohibits employment discrimination against protected 
veterans, namely disabled veterans, recently separated veterans, active 
duty wartime or campaign badge veterans, and Armed Forces service medal 
veterans, and requires contractors to take affirmative action to 
employ, advance in employment, and otherwise treat qualified 
individuals without discrimination based on their status as a protected 
veteran. Its requirements apply to contractors with a Government 
contract of $150,000 or more.\7\
---------------------------------------------------------------------------

    \7\ Effective October 1, 2015, the coverage threshold under 
VEVRAA increased from $100,000 to $150,000, in accordance with the 
inflationary adjustment requirements in 41 U.S.C. 1908. See, Federal 
Acquisition Regulation; Inflation Adjustment of Acquisition-Related 
Thresholds, 80 FR 38293 (July 2, 2015).
---------------------------------------------------------------------------

    OFCCP promulgated regulations implementing these programs 
consistent with the Administrative Procedure Act. These regulations are 
found at Title 41 of the Code of Federal Regulations (CFR) in Chapter 
60 and are accessible on the Web at http://www.dol.gov/dol/cfr/Title_41/Chapter_60.htm.
    For purposes of OFCCP's recordkeeping and reporting requirements, 
the agency divides the obligations under these authorities into 
multiple information collection requests (ICRs).\8\ These divisions are 
based on OFCCP's distinct enforcement authorities (e.g., E.O. 11246 and 
VEVRAA each has its own recordkeeping ICR), programs, and related 
regulatory requirements.
---------------------------------------------------------------------------

    \8\ OFCCP's other current ICRs include: Construction 
Recordkeeping Requirements (OMB No. 1250-0001), Complaint Procedures 
(OMB No. 1250-0002), Supply and Service Program (Scheduling Letter 
and Itemized Listing) (OMB No. 1250-0003), VEVRAA Recordkeeping 
Requirements (OMB No. 1250-0004), Functional Affirmative Action 
Program Agreement Procedures (OMB No. 1250-0006), Government 
Contractors, Prohibitions Against Pay Secrecy Policies and Actions 
(OMB No. 1250-0008), and Prohibiting Discrimination Based on Sexual 
Orientation and Gender Identity by Contractors and Subcontractors 
(OMB No. 1250-0009). In the future, and as appropriate, OFCCP 
proposes to consolidate several of these ICRs.
---------------------------------------------------------------------------

    The reporting requirements under Section 503 are not included in 
this information collection, but rather, are included in the Scheduling 
Letter and Itemized Listing ICR for nonconstruction supply and service 
contractors, separately approved under OMB Control Number 1250-0003.
    Due to the pending expiration of OMB No. 1250-0005, OFCCP is 
seeking approval of the agency's Section 503 recordkeeping and third 
party disclosure requirements.

1. Legal and Administrative Requirements

Section 503
41 CFR 60-741--Affirmative Action and Nondiscrimination Obligations of 
Federal Contractors and Subcontractors Regarding Individuals With 
Disabilities
    These regulations address the affirmative action and 
nondiscrimination obligations of contractors and subcontractors related 
to individuals with disabilities. They define coverage, specify clauses 
to be included in contracts, provide a procedure to ensure compliance 
by covered contractors, and specify certain reporting and recordkeeping 
requirements, establish an aspirational utilization goal of 7 percent, 
and specify the basic requirements for AAPs under Section 503.
    Section 60-741.5 sets forth the equal opportunity clause in Federal 
contracts.
    Section 60-741.40 requires the development and maintenance of a 
Section 503 AAP. This regulation requires each contractor and 
subcontractor that has 50 or more employees, and a contract of $50,000 
or more, to develop an AAP at each establishment.
    Section 60-741.42 requires contractors to invite job applicants at 
the pre-offer and post-offer stages to self-identify as individuals 
with a disability. In addition, the contractor is required to invite 
each of its employees to voluntarily self-identify as an individual 
with a disability. This employee survey must be conducted at five year 
intervals.
    Section 60-741.44 identifies the required elements of an AAP, 
including those listed below.
     Develop and include an equal opportunity policy statement 
in the AAP.
     Review personnel processes to ensure that qualified 
individuals with disabilities are provided equal opportunity.
     Review all physical and mental job qualification standards 
to ensure that, to the extent any tend to screen out qualified 
individuals with disabilities on the basis of disability, that the 
standards are job-related and consistent with business necessity.
     Provide reasonable accommodations for physical and mental 
limitations.
     Develop and implement procedures to ensure that employees 
are not harassed because of their disability.
     Develop procedures and practices to disseminate 
affirmative action policies, both internally and externally, and 
undertake appropriate outreach and positive recruitment activities 
designed to effectively recruit qualified individuals with 
disabilities.
     Establish an audit and reporting system to measure the 
effectiveness of the AAP.
     Designate a responsible official to implement and oversee 
the AAP.
     Provide training to all personnel involved in the 
recruitment, screening, selection, promotion, disciplinary, and related 
processes to ensure that the commitments in the contractor's 
affirmative action program are implemented.
     Conduct data collection analysis pertaining to applicants 
and hires on an annual basis and maintain them for a period of three 
(3) years, including, the number of applicants who self-identified as 
individuals with disabilities or who are otherwise known to be 
individuals with disabilities; the total number of job openings and 
total number of jobs filled; the total number of applicants for all 
jobs; the number of applicants with disabilities hired; and the total 
number of applicants hired.
    Section 60-741.45 establishes a 7 percent utilization goal for 
employment of individuals with disabilities for each job group in the 
contractor's workforce or to the entire workforce if the contractor has 
100 or fewer employees. Contractors must conduct an annual utilization 
analysis and assessment of problem areas, and establish specific

[[Page 58974]]

action-oriented programs to address any identified problems.
    Section 60-741.60 identifies the investigative methods OFCCP uses 
to evaluate a contractor's compliance with the agency's regulations. 
These methods range from an in-depth comprehensive evaluation of the 
contractor's employment practices (i.e. compliance review) to a 
narrowly focused analysis of a selected employment practice or policy 
(i.e. compliance check). Evaluation of compliance with Section 503 is 
concurrent with evaluation of a contractor's compliance with E.O. 11246 
and VEVRAA.

2. Use of Materials

    Section 60-741.42 outlines the requirements for contractors' 
obligations to invite individuals to self-identify as a person with a 
disability. This process enables the contractor to collect valuable 
data on the number of individuals with disabilities who apply for, are 
hired into, and are employed in federal contractor positions. If this 
data shows that the contractor is not meeting the utilization goal, the 
contractor must determine if impediments to equal employment 
opportunity for individuals with disabilities exist, and if so, develop 
and execute action-oriented programs to correct these problem areas.
    The form that contractors use to invite voluntary self-
identification of disability includes a field for applicants and 
employees to provide their name and the date. This is included to 
enable contractors to identify the job groups into which individuals 
should be placed when performing their utilization analysis. 
Identification by name enables OFCCP to verify the accuracy of a 
contractor's utilization analysis during a compliance evaluation.
    Section 60-741.44 describes the required contents of a contractor's 
written affirmative action program. During a compliance evaluation, 
OFCCP reviews the contractor's affirmative action program to determine 
whether the contractor is complying with its obligations not to 
discriminate in employment and to take affirmative action to ensure 
equal employment opportunity.
    Section 60-741.45 requires contractors to establish a national goal 
for the employment of individuals with disabilities by contractors, 
sets out the process contractors will use to assess whether the goal 
has been met, and requires contractors to maintain records of their 
assessment. This requirement provides contractors and OFCCP with a 
yardstick to objectively measure the effectiveness of nondiscrimination 
and affirmative action efforts.

3. Improved Information Technology

    In general, under OFCCP regulations each contractor develops its 
own methods for collecting and maintaining information. Contractors 
have the option to use methods that best suit their needs as long as 
they can retrieve and provide OFCCP with the requested data upon 
request during a compliance evaluation.
    The majority of contractors and subcontractors are repeat 
contractors. Since they are subject to OFCCP's regulatory requirements 
year after year, most have developed their information technology 
systems to generate the data required by OFCCP regulations.
    Information technology systems used to comply with data 
requirements under OFCCP's regulations should be capable of performing 
the below functions.

 Collecting employment activity data related to Section 503
 Conducting Section 503 utilization analysis
 Analyzing outreach and recruitment
 Tracking self-identification
 Disseminating internal and external EO policies
 Providing notice to subcontractors and vendors
 Auditing and reporting of AAP program elements

    In addition, OFCCP provides compliance assistance to all 
contractors, including smaller contractors by leveraging information 
technology. For example, OFCCP's Web site provides access to compliance 
resources and information, including the following.

 Section 503 Contractor Resources http://www.dol.gov/ofccp/regs/compliance/Resources.htm
 Fact Sheets, Frequently Asked Questions and Webinar training 
http://www.dol.gov/ofccp/regs/compliance/section503.htm
 Sample AAPs http://www.dol.gov/ofccp/regs/compliance/AAPs/AAPs.htm
 Disability and Veterans Community Resources Directory: https://ofccp.dol-esa.gov/errd/Resources.503VEVRAA.html
 Employment Resource Referral Directory: https://ofccp.dol-esa.gov/errd/index.html
 Checklist for Compliance with Section 503: http://www.dol.gov/ofccp/regs/compliance/ChecklistforCompliancewithSection503_JRF_QA_508c.pdf

    OFCCP believes that advances in technology make contractor 
compliance with the recordkeeping and reporting requirements easier and 
less burdensome. However, in the absence of empirical data, OFCCP is 
unable to quantify the impact of improved information technology and 
thus, OFCCP does not include it in the calculation of burden hours.
    According to the Government Paperwork Elimination Act (GPEA, Pub. 
L. 105-277, 1998), by October 2003, Government agencies must generally 
provide the option of using and accepting electronic documents and 
signatures, and electronic recordkeeping, where practicable. OFCCP 
fulfills its GPEA requirements by permitting contractors to submit AAPs 
and supporting documentation via email or other electronic format.

4. Description of Efforts To Identify Duplication

    The recordkeeping requirements contained in this request result 
exclusively from the implementation of Section 503. This authority 
uniquely empowers the Secretary of Labor, and by a Secretary's Order, 
the OFCCP, to require the collection, analysis, and reporting of data 
and other information in connection with the enforcement of the law and 
regulations requiring Government contractors to take affirmative action 
to ensure equal employment opportunity. No duplication of effort exists 
because no other Government agency has these specific data collection 
requirements.
    While contractors maintain other employment data in the normal 
course of business, affirmative action programs under Section 503 are 
unique in that contractors create them specifically to meet the 
requirements of OFCCP regulations. This comprehensive document is not 
available from any other source. Therefore, no duplication of effort 
exists.

5. Collection From Small Organizations

    OFCCP's information collection does not have a significant economic 
impact on a substantial number of small entities. OFCCP minimizes the 
information collection and recordkeeping burden on a significant number 
of small businesses by exempting contractor establishments with fewer 
than 50 employees from the AAP requirement. However, once OFCCP's 
authority covers one contractor's establishment, all of its employees 
must be accounted for in an AAP whether or not each of the contractor's 
establishments meet the minimum 50 employees threshold.\9\
---------------------------------------------------------------------------

    \9\ 41 CFR 60-741.40--Applicability of the affirmative action 
program.
---------------------------------------------------------------------------

    OFCCP also minimized the burden of the information collection 
requirements

[[Page 58975]]

on small entities by giving contractors with a total workforce of 100 
or fewer employees the option to compare the individuals with 
disabilities in their entire workforce to the 7 percent utilization 
goal, whereas larger contractors must measure utilization for each job 
group. This will decrease the burden of the utilization analysis.

6. Consequences for Federal Programs if This Information Is Collected 
Less Frequently

    The requirements outlined in this ICR ensure that covered 
contractors and subcontractors meet their equal opportunity obligations 
to individuals with disabilities as described in Section 503. The 
nondiscrimination requirements and general affirmative action 
requirements of Section 503 apply to all covered contractors. See 41 
CFR 60-741.4. The requirement to prepare and maintain an affirmative 
action program, the specific obligations of which are detailed at 41 
CFR 60-741.44, apply to those contractors with a Government contract of 
$50,000 or more and 50 or more employees.
    If this information is collected less frequently, it could 
compromise OFCCP's enforcement of Section 503 and its implementing 
regulations. OFCCP reviews contractor compliance through its compliance 
evaluation process. See 41 CFR 60-741.60. In order to accurately 
determine compliance, both OFCCP and the contractor must be able to 
analyze contractor actions taken and results obtained. Additionally, 
the data collection frequency for this ICR largely mirrors that of 
OFCCP's other programs, particularly the E.O. 11246 supply and service 
program, as Section 503 compliance evaluations are conducted 
concurrently with that program.
    As noted under the supply and service ICR (OMB No. 1250-0003), the 
older the data the greater the chances are that more qualified workers 
are victims of discrimination and that the discrimination continues for 
a longer period. A consequence of such older data may be that the scope 
of the violation, resulting harm and the overall burden of contractor 
compliance are greater.

7. Special Circumstances for the Collection of Information

    There are no special circumstances for the collection of this 
information.

8. Consultation Outside the Agency

    OFCCP publishes all regulations containing recordkeeping or 
reporting requirements in the Federal Register for public comment 
before agency adoption. In addition, OFCCP maintains an ongoing 
dialogue, through compliance assistance, with contractor groups on a 
number of compliance issues, among them reporting and recordkeeping.
    OFCCP will address comments received from the public under this 
paragraph at the end of the 60-day Federal Register comment period.

9. Gift Giving

    OFCCP provides neither payments nor gifts to respondents.

10. Assurance of Confidentiality

    Contractors who submit the required information may view it as 
sensitive information. OFCCP will evaluate all information pursuant to 
the public inspection and disclosure provisions of the Freedom of 
Information Act (FOIA), 5 U.S.C. 552, and the Department of Labor's 
implementing regulations at 29 CFR part 70. OFCCP requires that a 
contractor affected by a FOIA disclosure request be notified in writing 
and no decision to disclose information is made until the contractor 
has an opportunity to submit objections to the release of the 
information. Furthermore, it is OFCCP's position that it does not 
release any data obtained during the course of a compliance evaluation 
until the matter is completed.

11. Sensitive Questions

    Section 503 requires contractors to provide a form to applicants 
and employees asking them to voluntarily self-identify as an individual 
with a disability and informing them of their right to request 
reasonable accommodation, if it is needed. This data is necessary to 
enable OFCCP to assess contractors' compliance with Section 503 and 
ensure that individuals with disabilities are being accorded equal 
employment opportunity. The information will also enable contractors to 
assess their utilization of qualified individuals with disabilities and 
their outreach efforts and recruitment of such individuals with 
disabilities. The form states clearly that the submission of the 
requested information is voluntary, and that the data is collected and 
maintained strictly for affirmative action purposes and will otherwise 
be kept confidential. Race and sex data are not required under the 
Section 503 regulations.

12. Estimate of Annual Information Collection Burden

    The following is a summary of the methodology for the calculation 
of the recordkeeping and third party disclosure requirements for 
OFCCP's Section 503 ICR.
    As noted at the beginning of this supporting statement, the total 
in combined recordkeeping and third party disclosure burden hours for 
this ICR (4,392,369) is less than the total number of hours approved in 
2014 (10,229,910), as detailed in Sec. 15 below.

A. Information Collections

Standard Form--Voluntary Self-Identification of Disability

    Pursuant to Sec.  60-741.42, contractors use the standard form 
entitled ``Voluntary Self-Identification of Disability'' to invite 
applicants, hires, and employees to identify as an individual with a 
disability pre-offer, post-offer, and through periodic invitations to 
all employees.
    Section 60-741.42(a) requires contractors to extend a pre-offer 
invitation to self-identify as an ``individual with a disability.'' In 
the previous information collection, OFCCP estimated that contractors 
working at the company level will take 1.5 hours to review and retrieve 
existing sample invitations to self-identify, adopt the sample ``as 
is'' or make revisions to their existing form, save the invitation to 
self-identify and incorporate the document in the contractor's 
application form. Existing contractors will no longer need to take 
these steps to comply with the pre-offer invitation requirement, so the 
estimated burden in this information collection applies to only new 
contractor parent companies, or 1 percent of the 23,960 contractor 
companies. The burden for this provision is 360 hours (240 new 
contractor companies x 1.5 hours = 360 hours).
    Applicants for available positions with covered contractors will 
have a minimal burden complying with Sec.  60-741.42(a) in the course 
of completing their application for employment with the contractor. 
Section 60-741.42(a), on pre-offer self-identification, requires 
contractors to invite all applicants to self-identify whether or not 
they are an individual with a disability. OFCCP estimates that there 
will be an average of 24 applicants per job vacancy for on average 15 
vacancies per year. OFCCP further estimates that it will take 
applicants approximately 5 minutes to complete the form. The burden for 
this provision is 3,474,930 hours (115,831 contractor establishments x 
15 listings x 24 applicants x 5 minutes/60 = 3,474,930 hours). This is 
a third-party disclosure.
    In the previous information collection, OFCCP estimated that it 
will

[[Page 58976]]

take contractors 1.5 hours to conduct the invitation to self-identify 
employee survey. This includes the time needed to set up procedures to 
conduct the invitation, distribute communications, and collect and 
track self-identification forms. OFCCP believed this process would 
become much more streamlined over time and require significantly less 
than 1.5 hours in subsequent years. Therefore, for this information 
collection, OFCCP estimates that it will take contractors 1 hour to 
conduct the invitation to self-identify survey. Contractors are 
required to conduct the survey at five-year intervals. The estimated 
annual burden for this provision is 23,166 hours (115,831 contractor 
establishments x 1 hour/5 years = 23,166 hours).
    Contractor employees will have to spend some time reviewing and/or 
completing the survey. There are approximately 31,626,890 contractor 
employees. OFCCP estimates that employees will take 5 minutes to 
complete the self-identification form. The burden for this provision, 
assuming every employee completes the form, is 527,115 hours 
((31,626,890 employees x 5 minutes/60)/5 years = 527,115 hours). 
Utilizing Bureau of Labor Statistics data in the publication ``Employer 
Costs for Employee Compensation'' (December 2015), which lists an 
average total compensation for all civilian workers as $33.58 per hour, 
the cost of this provision would be $17,700,521.70. This is a third-
party disclosure.
    OFCCP further estimates that it will take contractors 15 minutes to 
maintain self-identification forms. This time includes either manually 
storing the forms in a filing cabinet or saving them to an electronic 
database. The burden for this provision is 28,958 hours (115,831 
contractor establishments x 15 minutes/60 = 28,958 hours).
Section 60-741.44 Required Contents of the Affirmative Action Program
    OMB Control Number 1250-0004 contains the burden estimates for 
documenting and maintaining material evidence of annually updating and, 
for new contractors, developing parts of a joint Section 503 and VEVRAA 
affirmative action program. Therefore, there is no additional burden 
for those parts of the Section 503 AAP in this information collection 
request. OFCCP separately identifies provisions below that are not 
included in burden estimates currently approved by 1250-0004.
Section 60-741.44(f) External Dissemination of Policy, Outreach and 
Positive Recruitment
    Section 60-741.44(f)(1)(ii) requires contractors to send written 
notification of the company's affirmative action program policies to 
subcontractors, vendors, and suppliers. Section 60-300.44(f)(1)(ii) of 
the VEVRAA regulations also requires contractors to send written 
notification of the company policy related to its affirmative action 
efforts to all subcontractors, including subcontracting vendors and 
suppliers. OFCCP therefore expects that contractors will send a single, 
combined notice, informing subcontractors, vendors and suppliers of 
their VEVRAA and Section 503 policies. Accordingly, OFCCP estimates 
that there is no additional burden for this provision than what was 
already calculated in the companion ICR for VEVRAA Recordkeeping 
Requirements (OMB No. 1250-0004).
    Section 60-741.44(f)(4) requires a contractor to document all 
outreach activities it undertakes for individuals with disabilities, 
and retain these documents for a period of 3 years. OFCCP estimates 
that it will take contractors 10 minutes to maintain the outreach and 
recruitment documentation that would typically be generated as a result 
of their obligations pursuant to other provisions in the regulations. 
This does not include any additional time to make the software 
configuration needed on the contractor's computer system to store data 
for an additional year, as this burden was previously accounted for in 
the VEVRAA ICR's burden analysis of Sec.  60-300.80(b). Therefore, the 
recurring burden for this provision is 19,305 hours (115,831 contractor 
establishments x 10 minutes/60 = 19,305 hours).
Section 60-741.44(h) Audit and Reporting System
    Section 60-741.44(h)(1)(vi) requires contractors to document the 
actions taken to meet the requirements of 60-741.44(h), as mandated in 
the current regulations. OFCCP estimates that it will take contractors 
10 minutes to document compliance with this existing provision. 
Documentation may include, as an example, the standard operating 
procedure of the system including roles and responsibilities, and audit 
and reporting timeframes and lifecycles. The annual recordkeeping 
burden of this provision is 19,305 hours (115,831 contractor 
establishments x 10 minutes/60 = 19,305 hours).
Section 60-741.44(k) Data Collection and Analysis
    Section 60-741.44(k) requires contractors to collect and analyze 
certain categories of data. OFCCP believes that most contractors have 
the capability to conduct the required calculations electronically. 
However, some companies may have to calculate this information 
manually. Therefore, OFCCP estimates that the average time to conduct 
the analysis and maintain the relevant documentation would be 1 hour 25 
minutes. Relevant documentation could include the report or other 
written documentation generated by the calculations that explain the 
methodology, the data used, and the findings and conclusions; the data 
used to conduct the calculations for subsequent validation of the 
results; and other material used by the contractor for the 
calculations. The recurring burden for this provision is 164,094 hours 
(115,831 contractor establishments x 85 minutes/60 = 164,094 hours).
Section 60-741.45 Utilization Goal
    Section 60-741.45 requires contractors to conduct a utilization 
analysis to evaluate the representation of individuals with 
disabilities in each job group within the contractor's workforce with 
the utilization goal established in paragraph (a) of this section. 
OFCCP estimates that contractors will take 1 hour to conduct the 
utilization analysis. The burden for this provision is 115,831 hours 
(115,831 contractor establishments x 1 hour = 115,831 hours).
    OFCCP further estimates that it will take contractors an additional 
10 minutes to maintain records of the utilization analysis. The 
recordkeeping burden is 19,305 hours (115,831 contractor establishments 
x 10 minutes/60 = 19,305 hours).
Section 60-741.81 Access to Records
    Section 60-741.81 requires contractors who are the subject of a 
compliance evaluation or complaint investigation to specify all 
available record formats and allow OFCCP to select preferred record 
formats from those identified by the contractor during a compliance 
evaluation. Pursuant to the regulations implementing the PRA at 5 CFR 
1320.4(a)(2), this information collection is excluded from the PRA 
requirements because it is related to an ``administrative action, 
investigation, or audit involving an agency against specific 
individuals or entities.''

B. Summary of Costs

    The estimated recordkeeping cost to contractors is based on Bureau 
of Labor

[[Page 58977]]

Statistics data in the publication ``Employer Costs for Employee 
Compensation'' (December 2015), which lists total compensation for 
management, professional, and related occupations as $55.47 per hour 
and administrative support as $24.75 per hour. OFCCP estimates that 52 
percent of the burden hours will be management, professional, and 
related occupations and 48 percent will be administrative support, for 
a weighted average of $40.72 per burden hour.

Table 1--Summary of Recordkeeping Burden Hours and Costs for Contractors
------------------------------------------------------------------------
            Requirements                Burden hours      Burden costs
------------------------------------------------------------------------
741.42 (Employee Survey)............            23,166       $943,319.52
741.42 (Modifying Application                      360         14,659.20
 System)............................
741.42 (Self-Identification                     28,958      1,179,169.76
 Recordkeeping).....................
741.44(f)(4) (Recordkeeping Outreach            19,305        786,099.60
 Activities)........................
741.44(h) (Recordkeeping Affirmative            19,305        786,099.60
 Action Program Audit)..............
741.44(k) (Data Collection and                 164,094      6,681,907.68
 Analysis)..........................
741.45 (Utilization Analysis).......           115,831      4,716,638.32
741.45 (Utilization Analysis                    19,305        786,099.60
 Recordkeeping).....................
                                     -----------------------------------
    Total...........................           390,324     15,893,993.28
------------------------------------------------------------------------


  Table 2--Summary of Third Party Disclosure Burden Hours and Costs for
                               Contractors
------------------------------------------------------------------------
           Requirement               Burden hours        Burden costs
------------------------------------------------------------------------
741.42 (Employee Survey)........            527,115      $17,700,521.70
------------------------------------------------------------------------

    The estimated cost for contractor employees to complete the self-
identification survey is based on Bureau of Labor Statistics data in 
the publication ``Employer Costs for Employee Compensation'' (December 
2015), which lists an average total hourly compensation for all 
civilian workers of $33.58.

  Table 3--Summary of Third Party Disclosure Burden Hours and Costs for
                             Non-Contractors
------------------------------------------------------------------------
           Requirement               Burden hours        Burden costs
------------------------------------------------------------------------
Section 60-741.42 (Self-                  3,474,930     $116,688,149.40
 Identification)................
------------------------------------------------------------------------

    The total estimated cost for applicants to fill out the self-
identification form is based on Bureau of Labor Statistics data in the 
publication ``Employer Costs for Employee Compensation'' (December 
2015), which lists an average total hourly compensation for all 
civilian workers of $33.58.

  Table 4--Total Burden for Sec.  Sec.   60-741.42; 60-741.44; and 60-
                                 741.45
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Recordkeeping Burden Hours..............................         390,324
Reporting Burden Hours..................................               0
Third Party Disclosure Burden Hours.....................       4,002,045
Total Burden Hours......................................       4,392,369
------------------------------------------------------------------------

13. Operations and Maintenance Costs

    OFCCP estimates that contractors will have some operations and 
maintenance costs in addition to the burden calculated above.
60-741.42 Invitation to Self Identify
    OFCCP estimates that the contractor will have some operations and 
maintenance cost associated with the invitations to self-identify. The 
contractor must invite all applicants to self-identify at both the pre-
offer and post-offer stage of the employment process. Given the 
increasingly widespread use of electronic applications, any contractor 
that uses such applications would not incur copy costs. However, to 
account for contractors who may still choose to use paper applications, 
we are including printing and/or copying costs. Therefore, we estimate 
a single one page form for both the pre- and post-offer invitation. 
Assuming 20 percent of all contractors will use a paper-based 
application system, and receive 24 applications for an average of 15 
listings per establishment, the minimum estimated total cost to 
contractors will be $667,186.56 ((115,831 establishments x 20 percent) 
x 360 copies x $0.08 = $667,186.56).

14. Estimate of Annual Cost to Federal Government

    OFCCP associates no unique federal costs with this information 
collection. OMB Control Numbers 1250-0001 and 1250-0003 currently 
include the annual costs of federal contractor compliance evaluations 
to ensure their compliance with the information collection requirements 
contained herein.

15. Changes in Burden Hours

    OFCCP is requesting OMB approval of 4,392,369 burden hours. The 
2014 clearance contained approval of 10,229,910 hours. The decrease in 
hours of the current request is attributable largely to OFCCP's 
proposal to use data from EEO-1 Reports to determine the number of 
covered contractors and contractor establishments instead of the 
methodology used in the previous information collection, which averaged 
data from multiple sources. EEO-1 data from FY 2014 shows 23,960 
contractor parent companies filed reports, with 115,831 total 
contractor establishments. These numbers are significantly less than 
the estimates used in the previous information collection (57,104 
contractor companies and 211,287 contractor establishments).
    OFCCP believes that the EEO-1 Report provides the more accurate 
estimate of contractors and establishments covered by this Section 503 
information collection. Section 60-1.7 requires specified Federal prime

[[Page 58978]]

contractors and subcontractors to file an EEO-1 Report annually.\10\
---------------------------------------------------------------------------

    \10\ The U.S. Equal Employment Opportunity Commission (EEOC) and 
OFCCP use EEO-1 Report data to analyze employment patterns for women 
and minorities and as a civil rights enforcement tool. OMB approved 
the EEO-1 Report information collection under OMB No. 3046-0007. The 
information collection can be viewed at http://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=201412-3046-001. It is currently in the 
renewal process, and OMB most recently approved an extension of the 
ICR expiration date of October 31, 2016.
---------------------------------------------------------------------------

    Employers use the EEO-1 Report (question 3) to self-identify as 
contractors and subcontractors and indicate whether they meet the 
thresholds under E.O. 11246 for AAP coverage: 50 or more employees and 
$50,000 or more contract value.\11\ This employee and contract value 
threshold is the same jurisdictional threshold for AAP coverage under 
Section 503. Thus, the number of contractors identified in the EEO-1 
Reports should be equal to the number of contractors required to 
establish a Section 503 AAP, making the EEO-1 Reports the most accurate 
source for estimating the number of covered contractors subject to this 
information collection.
---------------------------------------------------------------------------

    \11\ 41 CFR 60-1.7--Reports and other required information.
---------------------------------------------------------------------------

    In the previous information collection approved in 2014 and in the 
Section 503 final rule published in September 2013, OFCCP had estimated 
the number of affected contractors and establishments to be 57,104 and 
211,287, respectively. OFCCP now believes that these figures are an 
overestimate of the number of contractors with recordkeeping and third 
party disclosure burdens under this information collection. The numbers 
estimated in the final rule derived from a combination of data from FY 
2009 EEO-1 Reports, the Federal Procurement Data System, the Veterans 
Employment and Training Services annual report, and other sources. See 
78 FR 58729. The data from these sources is no longer current. 
Moreover, the methodology used to arrive at the estimates was based in 
large part on how OFCCP develops its Scheduling List of contractors for 
compliance evaluations. OFCCP develops its list of contractors for 
scheduling compliance evaluations by using multiple sources of 
information such as Federal acquisition and procurement databases, EEO-
1 Reports, Dun & Bradstreet (D&B) data, and the U.S. Census Bureau 
tabulations. Statistical thresholds such as industry type and employee 
counts of contractor establishments are also used. The list may be 
further refined by applying a number of neutral factors such as 
contract expiration date and contract value on the number of 
establishments per contractor that will be scheduled in any one cycle. 
This methodology is appropriate for scheduling compliance evaluations, 
but it does not accurately reflect the number of contractors required 
to develop AAPs.
    This distinction is recognized in the most recent Scheduling Letter 
and Itemized Listing ICR (Control Number 1250-0003), in which OFCCP 
estimated the number of contractors required to develop AAPs under E.O. 
11246 using data from only the EEO-1 Reports, instead of the more 
complex methodology OFCCP uses to create its Scheduling Letter and 
Itemized Listing. Thus, to be consistent with that approach, OFCCP will 
now use data from only the EEO-1 Reports to estimate the number of 
contractors affected by this information collection, which consists of 
recordkeeping and third part disclosures resulting from the Section 503 
AAP requirements.
    In addition, the decrease in burden hours is a result of 
adjustments in the estimated time contractors need to complete the 
employee self-identification survey, to account for the five-year 
interval between having to conduct surveys, and for certain 
requirements in the Section 503 regulations that are only applicable to 
new contractors.
    A summary of the change in hours is below.
a. Recordkeeping Burden Hours
    The previous submission included 862,756 hours. The current request 
is 390,324 hours for an adjustment decrease of 472,432 hours. This 
decrease is a result of the use of the contractor totals from the EEO-1 
Reports data, discussed above, as well as adjustments in the time 
estimated for contractors to conduct the invitation to self-identify 
survey under section 60-741.42(a), to reflect that the survey is to be 
completed at five-year intervals, and to account for requirements that 
are applicable only to new contractors.
b. Third Party Disclosure Burden Hours
    The previous submission included 9,367,154 hours. The current 
request is 4,002,045 hours for an adjustment decrease of 5,365,109 
hours. This decrease is primarily a result of the use of the contractor 
totals from the EEO-1 Reports data, discussed above, as well as an 
adjustment to account for the requirement that contractor employees are 
invited to complete the self-identification survey only once every five 
years.
c. Other Burden Hours and Costs
    The previous submission included 1,556,089 hours in initial capital 
or start-up costs and $1,217,002 in printing/copying costs. The current 
request no longer includes any initial capital and start-up costs, and 
estimates $667,186.56 for printing/copying. This is an adjustment 
decrease of 1,556,089 hours and $549,815.44. This decrease in printing/
copying costs is exclusively a result of the use of the contractor 
totals from the EEO-1 Reports data, discussed above.

16. Statistical Uses and Publication of Data

    OFCCP does not publish the data collected by way of the items 
contained in this request as statistical tables.

17. Approval not to Display the Expiration Date

    OFCCP is not seeking such approval.

18. Exceptions to the Certification Statement

    OFCCP is able to certify compliance with all provisions.

B. Collection of Information Employing Statistical Methods

    This information collection does not employ statistical methods.
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[FR Doc. 2016-20469 Filed 8-25-16; 8:45 a.m.]
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