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PART 6021-OBLIGATIONS OF CON. Subpart A-Preliminary Matters; TRACTORS AND SUBCONTRACTORS Equal Opportunity Clause; Exemp

tions; Compliance Reports Subpart A-Preliminary Matters; Equal Oppor. & 60-1.1 Purpose and application. tunity Clause; Exemptions; Compliance Reports

The purpose of the regulations in this Sec. 60-1.1 Purpose and application.

part is to achieve the aims of Part III 60–1.2 Definitions.

of Executive Order 10925 and Executive 60-1.3 Equal opportunity clause.

Order 11114 for the promotion and in60-1.4 Exemptions.

suring of equal opportunity for all qual60–1.5 Duties of agencies.

ified persons, without regard to race, 60–1.6 Compliance reports.

color, creed or national origin, employed 60–1.7 Compliance by labor unions.

or seeking employment with Government 60–1.8 Use of corr.pliance reports.

contractors or with contractors performSubpart B-General Enforcement; Complaint

ing under federally assisted construction Procedure

contracts. These regulations apply to 60–1.20 Compliance review by the agency.

all contracting agencies of the Federal 60-1.21 Who may Ale complaints.

Government and to contractors and sub60–1.22 Where to file.

contractors who perform under Govern60-1.23 Contents of complaint.

ment contracts, to the extent set forth in 60-1.24 Processing of matters by agencies. this part. These regulations also apply 60–1.25 Assumption of jurisdiction by the to all agencies of the Federal Govern

Executive Vice Chairman over ment administering programs involving

matters before an agency. 60–1.26 Processing of matters by the Ex

Federal financial assistance which may ecutive Vice Chairman.

involve a construction contract, and, to 60-1.27 Hearings.

the extent set forth in this part, to all 60-1.28 Opportunity to achieve compliance contractors and subcontractors perform

before referrals to the Depart ing under construction contracts which ment of Justice or contract are related to any such programs. The termination.

rights and remedies of the Government 60–1.29 Contract ineligibility list. 60–1.30 Notification of Comptroller General

hereunder are not exclusive and do not in cases of contract ineligibility

affect rights and remedies provided elseor contract termination.

where by law, regulation, or contract; 60–1.31 Reinstatement of ineligible con

neither do the regulations limit the exertractors or subcontractors.

cise by the Committee or by any other Subpart C-Certificates of Merit

Government agencies of powers not here

in specifically set forth, but granted to 80–1.40 By the Committee on its own ini them by Executive Orders 10925 and tiative.

11114. 60-1.41 By the Executive Vice Chairman

upon agency recommendation. $ 60–1.2 Definitions. 80–1.43 Suspension or revocation.

(a) “Committee” means the PresiSubpart D-Ancillary Matters

dent's Committee on Equal Employment 60–1.60 Solicitations or advertisements for Opportunity. employees.

(b) "Chairman" means the Chairman 60–1.61 Access to records of employment.

of the Committee. 60–1.62 Rulings and interpretations.

(c) “Vice Chairman” means the Vice 60–1.63 Reports to the Committee.

Chairman of the Committee. 60–1.64 Existing contracts and subcon. (d) “Executive Vice Chairman" means tracts.

the Executive Vice Chairman of the Committee.

(e) “Order" means Executive Order

10925 of March 6, 1961 (26 F.R. 1977), AUTHORITY: The provisions of this part

as amended by Parts II and III of Ex60-1 issued pursuant to sec. 306, E.O. 10925

ecutive Order 11114 of June 22, 1963 (26 F.R. 1977) and sec. 105, E.O. 11114 (28

(28 F.R. 6485). F.R. 6485).

(f) "Orders" means those parts of

Executive Order 10925 of March 6, 1961 SOURCE: The provisions of this part 60–1 appear at 28 F.R. 9812, Sept. 2, 1963; 28 F.R.

relating to Government contracts and 11305, Oct. 23, 1963.

Executive Order 11114 of June 22, 1963.

(g) "Contract" means any Government contract or any federally assisted construction contract.

(h) "Government contract” means any binding legal agreement or modification thereof between the Government and a contractor for supplies or services, including construction, or for the use of Government property, in which the parties, respectively, do not stand in the relationship of employer and employee.

(i) "Federally assisted construction contract” means any binding legal agreement or modification thereof between an applicant and a contractor for construction work which is paid for in whole or in part with funds obtained from the Federal Government or borrowed on the credit of the Federal Government pursuant to any Federal program involving a grant, contract, loan, insurance or guarantee, or undertaken pursuant to any Federal program involving such grant, contract, loan, insurance or guarantee; or any approved application or modification thereof for a grant, contract, loan, insurance or guarantee under which the applicant itself performs construction work other than through the permanent work force directly employed by an agency of government.

(j) "Modification" means any written alteration in the terms and conditions of a contract accomplished by bilateral action of the parties to the contract, including supplemental agreements and amendments.

(k) "Subcontract” means any agreement made or purchase order executed by a prime contractor or a subcontractor where a material part of the supplies or services covered by such agreement or purchase order is being obtained for use in the performance of a contract.

(1) "Prime contractor" means any person holding a contract.

(m) "Subcontractor" means any person holding a subcontract “First-tier subcontractor” refers to a subcontractor holding a subcontract with a prime contractor. “Second-tier subcontractor" refers to a subcontractor holding a subcontract with a first-tier subcontractor.

(n) "Agency" means any contracting or any administering agency.

(0) "Contracting agency” means any department (including the Departments of the Army, Navy, and Air Force), agency and establishment in the Executive Branch of the Government, includ

ing any wholly owned Government corporation, which enters into contracts.

(p) “Administering agency” means any department (including the Depart. ments of the Army, Navy and Air Force), agency and establishment in the Executive Branch of the Government, including any wholly owned Government corporation, which administers a program involving federally assisted construction contracts.

(q) "Applicant” means an applicant for Federal assistance or, as determined by regulation of an administering agency, other program participant, with respect to whom an application for any grant, contract, loan, insurance or guarantee, or change therein, is not finally acted upon prior to July 22, 1963, and it includes such an applicant after becoming a recipient of such Federal assistance.

(r) "Equal opportunity clause" means the contract provisions of section 301 of the Order.

(s) "Rules, regulations and relevant orders” of the Committee as used in paragraph 4 of the equal opportunity clause mean rules, regulations and relevant orders issued pursuant to the Orders and in effect at the time the particular contract subject to the Orders was entered into.

(t) “United States" as used herein shall include the Commonwealth of Puerto Rico, the Panama Canal Zone and the possessions of the United States.

(u) "Standard commercial supplies" means an article:

(1) Which in the normal course of business is customarily maintained in stock by the manufacturer or any dealer, distributor, or other commercial dealer for the marketing of such article; or

(2) Which is manufactured and sold by two or more persons for general commercial or industrial use or which is identical in every material respect with an article so manufactured and sold.

(v) “Construction work" means the construction, rehabilitation, alteration, conversion, extension, demolition or repair of buildings, highways, or other changes or improvements to real property, including facilities providing utility services.

(w) "Site of construction" means the physical location of any building, highway or other change or improvement to real property which is undergoing construction, rehabilitation, alteration, con

version, extension, demolition, or repair and any temporary location or facility established by a contractor or subcontractor specifically to meet the demands of his contract or subcontract. $ 60–1.3 Equal opportunity clause.

(a) Government contracts. Each contracting agency shall include the equal opportunity clause in each of its Government contracts (including modifications thereof) which is not exempt from the requirements of the clause. Government bills of lading may incorporate by reference the equal opportunity clause.

(b) Federally assisted construction contracts. (1) Each administering agency shall require the inclusion of the following language as a condition of any grant, contract, loan, insurance or guarantee involving a federally assisted construction contract which is not exempt from the requirements of the equal opportunity clause:

The applicant hereby agrees that it will incorporate or cause to be incorporated into any contract for construction work, or modification thereof, as defined in the rules and regulations of the President's Committee on Equal Employment Opportunity, which is paid for in whole or in part with funds obtained from the Federal Government or borrowed on the credit of the Federal Government pursuant to a grant, contract, loan, insurance or guarantee, or undertaken pursuant to any Federal program involving such grant, contract, loan, insurance or guarantee, the following equal opportunity clause:

During the performance of this contract, the contractor agrees as follows:

(1) The contractor will not discriminate against any employee or applicant for employment because of race, creed. color or national origin. The contractor will take afirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, creed, color or national origin. Such action shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause.

(2) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive considera

tion for employment without regard to race, creed, color or national origin.

(3) The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representative of the contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

(4) The contractor will comply with all provisions of Executive Order No. 10925 of March 6, 1961, as amended by Executive Order 11114 of June 22, 1963, and of the rules, regulations and relevant orders of the President's Committee on Equal Employment Opportunity created thereby.

(5) The contractor will furnish all information and reports required by Executive Order 10925 of March 6, 1961, as amended by Executive Order 11114 of June 22, 1963, and by the rules, regulations and orders of the said Committee, or pursuant thereto, and will permit access to his books, records and accounts by the administering agency and the Committee for purposes of investigation to ascertain compliance with such rules, regulations and orders.

(6) In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations or orders, this contract may be cancelled, terminated or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order No. 10925 of March 6, 1961, as amended by Executive Order 11114 of June 22, 1963, and such other sanctions may be imposed and remedies invoked as provided in the said Executive Order or by rule, regulation or order of the President's Committee on Equal Employment Opportunity, or as otherwise provided by law.

(7) The contractor will include the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations or orders of the President's Committee on Equal Employment Opportunity issued pursuant to section 303 of Executive Order 10925 of March 6, 1961, as amended by Executive Order 11114 of June 22, 1963, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the administering agency may direct as a means of enforcing such provisions, including sanctions for noncompliance: Provided, however, that in the event a contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction

by the agency, the contractor may request the United States to enter into such litigation to protect the interests of the United States.

The applicant further agrees that it wili be bound by the above equal opportunity clause in any federally assisted construction work which it performs itself other than through the permanent work force directly employed by an agency of government.

The applicant agrees that it will cooperate actively with the administering agency and the President's Committee on Equal Employment Opportunity in obtaining the compliance of contractors and subcontractors with the equal opportunity clause and the rules, regulations and relevant orders of the Committee, that it will furnish the administering agency and the Committee such information as they may require for the super vision of such compliance, and that it will otherwise assist the administering agency in the discharge of the agency's primary responsibility for securing compliance. The applicant further agrees that it will refrain from entering into any contract or contract modification subject to Executive Order 11114 with a contractor debarred from, or who has not demonstrated eligibility for, Government contracts and federally assisted construction contracts pursuant to Part III, Subpart D of Executive Order 10925 and will carry out such sanctions and penalties for violation of the equal opportunity clause as may be imposed upon contractors and subcontractors by the administering agency or the Committee pursuant to Part III, Subpart D of Executive Order 10925. In addition, the applicant agrees that if it falls or refuses to comply with these undertakings the administering agency may cancel. terminate or suspend in whole or in part this grant contract. loan. insurance. guaranteel. may refrain from extending any further assistance under any of its programs subject to Executive Order 11114 until satisfactory assurance of future compliance has been received from such applicant, or may refer the case to the Department of Justice for appropriate legal proceedings.

(2) In any case in which the administering agency makes a determination that inclusion of the language prescribed in $ 60_1.3(b) (1) for applicants would be inconsistent with law, the agency shall notify the Executive Vice Chairman of the determination and the reasons therefor. The Executive Vice Chairman shall request a ruling from the Attorney General regarding such determination and shall report thereon to the Committee.

nonexempt subcontracts, provided that except upon special order of the contracting agency or the Executive Vice Chairman, and except in the case of subcontracts for the performance of construction work at the site of construction, the clause shall not be required to be inserted in subcontracts below the second tier. Subcontracts may incorporate by reference the equal opportunity clause.

(d) Adaptation of language. Such necessary changes in language may be made in the equal opportunity clause, and in the clause prescribed by paragraph (b) (1) of this section, as shalli be appropriate to identify properly the parties and their undertakings. $ 60–1.4 Exemptions.

(a) General (1) Transactions of $10,000 or under. Contracts and subcontracts not exceeding $10,000, other than Government bills of lading, are exempt from the requirements of the equal opportunity clause. In determining the applicability of this exemption to any federally assisted construction contract, or subcontract thereunder, the amount of such contract or subcontract rather than the amount of the Federal financial assistance shall govern.

(2) Standard commercial supplies and raw materials. Contracts and subcon. tracts not exceeding $100,000 for standard commercial supplies or raw materials are exempt from the requirements of the equal opportunity clause, except that the Executive Vice Chairman may, whenever he finds it necessary or appropriate to achieve the purposes of the Orders, withdraw such exemption in whole or in part with regard to any specified articles or raw materials. No agency, contractor or subcontractor shall procure supplies or materials in less than usual quantities to avoid applicability of the equal opportunity clause.

(3) Contracts outside the United States. Contracts and subcontracts under which work is to be or has been performed outside the United States and where no recruitment of workers within the United States is involved are exempt from the requirements of the equal opportunity clause. To the extent that work pursuant to such contracts is done within the United States the equal opportunity clause shall be applicable.

(4) Sales contracts. Contracts providing for the sale of Government real

(c) Prime contractors and subcontractors. Each nonexempt prime contractor and subcontractor shall include the equal opportunity clause in each of their

and personal property where no appre- ments of the clause, or that such reciable amount of work is involved are quirements are not to be applicable in exempt from the requirements of the any one year, such determination shall equal opportunity clause.

be controlling even though the amounts (5) Contracts and subcontracts for an actually ordered exceed the appropriate indefinite quantity. Contracts and sub dollar limitation. contracts for an indefinite quantity (in (b) Specific contracts and facilitiescluding, without limitation, open-end (1) Specific contracts. The Executive contracts, requirement-type contracts, Vice Chairman may, with the approval Federal Supply Schedule contracts, "call of the Vice Chairman, exempt an agency type" contracts, and purchase notice from requiring the inclusion of any or all agreements) which are not to extend for of the equal opportunity clause in any more than one year are exempt from the specific contract, or subcontract, when requirements of the equal opportunity he deems that special circumstances in clause if the purchaser determines that the national interest so require. The the amounts to be ordered under any Executive Vice Chairman may also, with such contract or subcontract are not the approval of the Vice Chairman, exreasonably expected to exceed $100,000 empt groups or categories of contracts in the case of contracts or subcontracts of the same type where he finds it imfor standard commercial supplies and practicable to act upon each request raw materials, or $10,000 in the case of individually or where group exemptions all other contracts and subcontracts. will contribute to convenience in the adWhen not so determined to be exempt ministration of the Orders. from the requirements of the equal op (2) Facilities not connected with conportunity clause, such contracts or sub tracts. The Executive Vice Chairman contracts shall be subject to those re may, with the approval of the Vice Chairquirements even though the amounts man, exempt from the requirements of actually ordered do not exceed the ap the equal opportunity clause any of a propriate dollar limitation. With respect contractor's or subcontractor's facilities to contracts or subcontracts for an in which he finds to be in all respects definite quantity which are to extend for separate and distinct from activities of more than one year or continue in the contractor or subcontractor related definitely, the equal opportunity clause to the performance of the contract or shall be included unless the purchaser subcontract: ProvidedThat he also knows in advance that the amounts to finds that such an exemption will not be ordered in any year under such con interfere with or impede the effectuation tract or subcontract will not exceed the of the Orders. appropriate dollar limitation. When so (3) Review of exemptions. The Exincluded in any contract the applicabil ecutive Vice Chairman shall report ity of the equal opportunity clause shall periodically to the Committee for its be determined by the purchaser at the review any exemptions granted under time of award for the first year, and at subparagraphs (1) and (2) of this the end of each year for the succeeding paragraph. year, based upon the amounts that are (c) Effect of exemption. Notwithreasonably expected to be ordered during standing the inclusion in any contract or such year, and the purchaser shall notify subcontract of the equal opportunity the contractor or subcontractor in writ clause, the contractor or subcontractor ing when the equal opportunity clause is shall be exempt from compliance thereso determined to be applicable. Once with if the contract or subcontract conthe equal opportunity clause is deter- taining such clause is exempt. mined to be applicable, the contract or (d) Withdrawal of exemption. When subcontract shall continue for its dura any contract or subcontract is of a class tion to be subject to such clause, regard exempted under this section, the Execless of the amounts ordered, or reason utive Vice Chairman may withdraw the ably expected to be ordered, in any exemption for a specific contract or subsucceeding year. Whenever it has been contract or group of contracts or subdetermined in accordance with the pro contracts when in his judgment such visions of this subparagraph (5) that a action is necessary or appropriate to contract or subcontract for an indefinite achieve the purposes of the Orders. quantity is exempt from the require. Such withdrawal shall not apply to any

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