60-1.20 Compliance review by the agency. 60-1.21 Who may ale complaints. 60-1.22 Where to file.

60-1.23 Contents of complaint.

60-1.24 Processing of matters by agencies. 60-1.25 Assumption of jurisdiction by the Executive Vice Chairman over matters before an agency. 60-1.26 Processing of matters by the Executive Vice Chairman.

60-1.27 Hearings. 60-1.28 Opportunity to achieve compliance before referrals to the Department of Justice or contract termination.

60-1.29 Contract ineligibility list. 60-1.30 Notification of Comptroller General in cases of contract ineligibility or contract termination.

60-1.31 Reinstatement of ineligible contractors or subcontractors.

Subpart C-Certificates of Merit

60-1.40 By the Committee on its own initiative.

60-1.41 By the Executive Vice Chairman upon agency recommendation.

60-1.43 Suspension or revocation.

Subpart D-Ancillary Matters

60-1.60 Solicitations or advertisements for employees.

60-1.61 Access to records of employment. 60-1.62 Rulings and interpretations. 60-1.63 Reports to the Committee. 60-1.64 Existing contracts and subcontracts.

AUTHORITY: The provisions of this Part 60-1 issued pursuant to sec. 306, E.O. 10925 (26 F.R. 1977) and sec. 105, E.O. 11114 (28 F.R. 6485).

SOURCE: The provisions of this Part 60-1 appear at 28 F.R. 9812, Sept. 2, 1963; 28 F.R. 11305, Oct. 23, 1963.

Subpart A-Preliminary Matters; Equal Opportunity Clause; Exemptions; Compliance Reports

§ 60-1.1 Purpose and application.

The purpose of the regulations in this part is to achieve the aims of Part III of Executive Order 10925 and Executive Order 11114 for the promotion and insuring of equal opportunity for all qualified persons, without regard to race, color, creed or national origin, employed or seeking employment with Government contractors or with contractors performing under federally assisted construction contracts. These regulations apply to all contracting agencies of the Federal Government and to contractors and subcontractors who perform under Government contracts, to the extent set forth in this part. These regulations also apply to all agencies of the Federal Government administering programs involving Federal financial assistance which may involve a construction contract, and, to the extent set forth in this part, to all contractors and subcontractors performing under construction contracts which are related to any such programs. The rights and remedies of the Government hereunder are not exclusive and do not affect rights and remedies provided elsewhere by law, regulation, or contract; neither do the regulations limit the exercise by the Committee or by any other Government agencies of powers not herein specifically set forth, but granted to them by Executive Orders 10925 and 11114.

(a) "Committee" means the President's Committee on Equal Employment Opportunity.

(b) "Chairman" means the Chairman of the Committee.

(c) "Vice Chairman" means the Vice Chairman of the Committee.

(d) "Executive Vice Chairman" means the Executive Vice Chairman of the Committee.

(e) "Order" means Executive Order 10925 of March 6, 1961 (26 F.R. 1977), as amended by Parts II and III of Executive Order 11114 of June 22, 1963 (28 F.R. 6485).

(f) "Orders" means those parts of Executive Order 10925 of March 6, 1961 relating to Government contracts and 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.

(o) "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 Departments 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

(b) Federally contracts.

assisted construction

(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 affirmative 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 will 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 supervision 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 fails 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, guarantee], 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.

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

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 shalll 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 subcontracts 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

and personal property where no appreciable amount of work is involved are exempt from the requirements of the equal opportunity clause.

(5) Contracts and subcontracts for an indefinite quantity. Contracts and subcontracts for an indefinite quantity (including, without limitation, open-end contracts, requirement-type contracts, Federal Supply Schedule contracts, “calltype" contracts, and purchase notice agreements) which are not to extend for more than one year are exempt from the requirements of the equal opportunity clause if the purchaser determines that the amounts to be ordered under any such contract or subcontract are not reasonably expected to exceed $100,000 in the case of contracts or subcontracts for standard commercial supplies and raw materials, or $10,000 in the case of all other contracts and subcontracts. When not so determined to be exempt from the requirements of the equal opportunity clause, such contracts or subcontracts shall be subject to those requirements even though the amounts actually ordered do not exceed the appropriate dollar limitation. With respect to contracts or subcontracts for an indefinite quantity which are to extend for more than one year or continue indefinitely, the equal opportunity clause shall be included unless the purchaser knows in advance that the amounts to be ordered in any year under such contract or subcontract will not exceed the appropriate dollar limitation. When so included in any contract the applicability of the equal opportunity clause shall be determined by the purchaser at the time of award for the first year, and at the end of each year for the succeeding year, based upon the amounts that are reasonably expected to be ordered during such year, and the purchaser shall notify the contractor or subcontractor in writing when the equal opportunity clause is so determined to be applicable. Once the equal opportunity clause is determined to be applicable, the contract or subcontract shall continue for its duration to be subject to such clause, regardless of the amounts ordered, or reasonably expected to be ordered, in any succeeding year. Whenever it has been determined in accordance with the provisions of this subparagraph (5) that a contract or subcontract for an indefinite quantity is exempt from the require

ments of the clause, or that such requirements are not to be applicable in any one year, such determination shall be controlling even though the amounts actually ordered exceed the appropriate dollar limitation.

(b) Specific contracts and facilities— (1) Specific contracts. The Executive Vice Chairman may, with the approval of the Vice Chairman, exempt an agency from requiring the inclusion of any or all of the equal opportunity clause in any specific contract, or subcontract, when he deems that special circumstances in the national interest so require. The Executive Vice Chairman may also, with the approval of the Vice Chairman, exempt groups or categories of contracts of the same type where he finds it impracticable to act upon each request individually or where group exemptions will contribute to convenience in the administration of the Orders.

(2) Facilities not connected with contracts. The Executive Vice Chairman may, with the approval of the Vice Chairman, exempt from the requirements of the equal opportunity clause any of a contractor's or subcontractor's facilities which he finds to be in all respects separate and distinct from activities of the contractor or subcontractor related to the performance of the contract or subcontract: Provided, That he also finds that such an exemption will not interfere with or impede the effectuation of the Orders.

(3) Review of exemptions. The Executive Vice Chairman shall report periodically to the Committee for its review any exemptions granted under subparagraphs (1) and (2) of this paragraph.

(c) Effect of exemption. Notwithstanding the inclusion in any contract or subcontract of the equal opportunity clause, the contractor or subcontractor shall be exempt from compliance therewith if the contract or subcontract containing such clause is exempt.

(d) Withdrawal of exemption. When any contract or subcontract is of a class exempted under this section, the Executive Vice Chairman may withdraw the exemption for a specific contract or subcontract or group of contracts or subcontracts when in his judgment such action is necessary or appropriate to achieve the purposes of the Orders. Such withdrawal shall not apply to any