Business Engagement and Compliance

External Equal Employment Opportunity Contractor Compliance

EEO Review Process Map

ADOT has established an External Equal Employment Opportunity (EEO) Compliance program in accordance with the regulations of the U.S. Department of Transportation (USDOT), 23 CFR Part 230. As a condition of receipt of funding, ADOT has signed an assurance that it will comply with 23 CFR Part 230.

Contractors working on federal-aid projects must not discriminate and take affirmative action to assure equal employment opportunities on federal-aid contracts in accordance with 23 CFR Appendix A Subpart A of Part 230. This includes, but is not limited to, these actions:

  • Developing, implementing and disseminating an EEO policy with specific language found in FHWA Form 1273 to all staff
  • Identifying an EEO liaison to work with ADOT on EEO issues
  • Including in all advertisement for employees the notation that the contractor is "An Equal Opportunity Employer"
  • Ensuring that personnel action, including hiring, wages, working conditions, promotions and employee benefits, are taken without regard to race, color, sex or national origin
  • Assisting in locating, qualifying and increasing the skills of minority groups and women employees and applicants for employment
  • Using its best efforts to solicit bids from and to use minority and women subcontractors on federal-aid contracts

The Business Engagement and Compliance Office (BECO) is required by FHWA to conduct periodic EEO reviews of contractors to help ensure that they are in compliance with EEO requirements. Below are guidelines for implementation of these reviews.

EEO Contractor Compliance Review Elements
A. General

1. Consolidated Compliance Reviews will be implemented to determine employment opportunities on an area-wide rather than an individual project basis. The Consolidated Compliance Review approach will be adopted and directed by either FHWA Headquarters, region, division, or BECO. However, Consolidated Compliance Reviews will at all times remain a cooperative effort.

Note: OFCCP policy requires contracting agencies to ensure compliance, in hometown and imposed plan areas, on an area-wide rather than a project basis. The Consolidated Compliance Review approach facilitates implementation of this policy.

B. Methodology

1. Selection of a target area. In identifying the target area of a Consolidated Compliance Review (e.g., Standard Metropolitan, hometown or imposed plan area, a multicounty area, or an entire State), consideration will at least be given to the following factors:

  • Minority and female work force concentrations
  • Suspected or alleged discrimination in union membership or referral practices by local unions involved in highway construction
  • Present or potential problem areas
  • The number of highway projects in the target area
  • Hometown or imposed plan reports that indicate underutilization of minorities or females

2. Determine the review period. After the target area has been selected, the dates for the actual onsite reviews will be established.

3. Obtain background information. EEO-3 Report (known as the Local Union Report) shall be obtained from EEOC's regional offices. Target area civilian labor force statistics providing percentage of minorities and females in the target area will be obtained from State employment security agencies or similar State agencies.

4. Identify Contractors. Every nonexempt federally assisted or direct Federal Contractor and Subcontractor in the target area will be identified. In order to establish area-wide employment patterns in the target area, employment data is needed for all Contractors and Subcontractors in the area. However, only those Contractors with significant workforces (working prior to peak and not recently reviewed) may need to be actually reviewed onsite. Accordingly, once all Contractors are identified, those Contractors that will actually be reviewed onsite will be determined. Compliance determinations will only reflect the status of crafts covered by Part II of plan bid conditions. Employment data of crafts covered by Part I of plan bid conditions will be gathered and identified as such in the composite report; however, OFCCP has reserved the responsibility for compliance determinations on crafts covered by Part I of the plan bid conditions.

5. Contractor notification. Contractors selected for onsite review will be sent a Notification Letter along with a request for current workforce data for completion and submission at the onsite review.  Contractors in the target area not selected for onsite review will also be requested to supply current workforce data as of the onsite review period, and will return the data within 15 days following the onsite review period.

Note: The Consolidated Workforce Questionnaire is convenient for the purpose and appears as Attachment 4 to volume 2, chapter 2, section 3 of the Federal-Aid Highway Program Manual, which is available at the offices listed in 23 CFR Subpart D, Appendix D.

6. Onsite reviews. Compliance Reviews will be conducted in accordance with the requirements set forth in § 230.409. It is of particular importance during the onsite reviews that the review team provides for adequate coordination of activities at every stage of the review process.

7. Compliance determinations. Upon completion of the Consolidated Reviews, compliance determinations will be made on each review by the reviewer. Individual Show Cause Notices or Compliance Notifications will be sent (as appropriate) to each contractor reviewed.

Note: The compliance determination will be based on the Contractor's target area workforce (Federal, Federal-aid and non-Federal), except when the target area is coincidental with hometown plan area, compliance determinations must not be based on that part of a Contractor's workforce covered by Part I of the plan bid conditions, as previously set forth in this regulation. For example: ABC Contracting, Inc. employs carpenters, operating engineers, and cement masons. Carpenters and operating engineers are covered by Part II of the plan bid conditions, however, cement masons are covered by Part I of the plan bid conditions. The compliance determination must be based only on the Contractor's use of carpenters and operating engineers.

C. Reporting

1. Composite report. A final composite report will be submitted as a complete package to the FHWA Washington Headquarters, Office of Civil Rights, within 45 days after the review period and will consist of the following:

  • Compliance Review Report for each Contractor and Subcontractor with accompanying Show Cause Notice or Compliance Notification.
  • Workforce data to show the aggregate employment of all Contractors in the target area.
  • A narrative summary of findings and recommendations to include the following:
    • A summary of highway construction employment in the target area by craft, race, and sex. This summary should explore possible patterns of discrimination or underutilization and possible causes, and should compare the utilization of minorities and females on Contractors' workforces to the civilian labor force percent age for minorities and females in the target area.
    • If the target area is a plan area, a narrative summary of the plan's effectiveness with an identification of Part I and Part II crafts. This summary will discuss possible differences in minority and female utilization between Part I and Part II crafts, documenting any inferences drawn from such comparisons.
    • If applicable, discuss local labor unions' membership and/or referral practices that impact on the use of minorities and females in the target area. Complete and current copies of all collective bargaining agreements and copies of EEO-3 Local Union Reports for all appropriate unions will accompany the composite report.
    • Any other appropriate data, analyses, or information determined necessary for a complete picture of the area-wide employment.
    • Considering the information compiled from the summaries listed above, make concrete recommendations on possible avenues for correcting problems uncovered by the analyses.

2. Annual planning report. The proper execution of Consolidated Compliance Reviews necessitates scheduling, along with other fiscal program planning. The FHWA Washington Headquarters, Office of Civil Rights, will be notified of all planned Consolidated Compliance Reviews by August 10 of each year and of any changes in the target area or review periods, as they become known. The annual Consolidated Planning Report will indicate:

  • Selected target areas
  • The basis for selection of each area
  • The anticipated review period (dates) for each target area