to this assignment system is the building and construction industry for which all agencies which award and administer a substantial amount of contracts for building construction have compliance responsibility.

instituted.

For carrying out their Executive Order responsibilities, the compliance agencies have a program and staff which have EEO enforcement as their sole mission. The agencies carry out their responsibility primarily through the conduct of compliance reviews. A compliance review consists of a regularly scheduled comprehensive investigation of the contractor's employment system and its impact on minorities and women. Where deficiencies are disclosed the contractor is issued a notice to show cause why procedures leading to sanctions should not be During the ensuing 30-day period the contractor may choose either to act upon the compliance review findings and recommendations affirmatively or contest them. If the contractor agrees to achieve compliance based upon the findings and recommendations, a conciliation agreement is entered into containing the precise corrective measures to be taken and the dates for completion. The contractor is then found to be in compliance on the condition that the commitments are faithfully kept. If the contractor fails to achieve concilia

If

forwards a formal notice of proposed sanctions affording the contractor an opportunity for a formal hearing. the contractor fails to avail itself of the opportunity for a hearing, the sanction automatically is imposed. Otherwise, formal proceedings are convened and the resulting findings and recommendations are presented to the agency head who determines whether sanctions or remedies are appropriate. The agency determination is then for

warded to the Director of OFCCP for approval.

Another method of achieving compliance is through

the complaint investigation process which follows the same course as a compliance review except that the undertaking is initiated by complaints involving systemic disComplaints alleging individual discrimination are forwarded to EEOC for processing and disposition under Title VII of the Civil Rights Act of 1974, as

crimination.

amended.

Under the terms of the Executive Order, OFCCP also has the authority to conduct compliance reviews, complaint investigations, hold hearings, impose sanctions, and otherwise conduct compliance and enforcement operations. However, because of limited personnel and budgetary resources, such operational activities by OFCCP are limited to those which are necessary to fulfill a leadership role. OFCCP's activities include the issuance of

achieving compliance, reviewing and approving compliance agency programs, developing systems and procedures for achieving compliance, formulating budget allocations, assessing compliance agency performance, and coordinating with other Federal agencies.

Description of the Section 402 and Section 503 Programs

Requirements under Section 402 prohibit Government contractors and subcontractors with contracts in excess of $10,000 from discriminating against disabled Vietnam era veterans. Under Section 503, Government contractors and subcontractors with contracts in excess of $2,500 are prohibited from discriminating against handicapped persons. Both of these programs require such contractors or subcontractors to take affirmative action. Written AAP's

are required from contractors or subcontractors with contracts of $50,000 or more and 50 or more employees. Contractors subject to these program requirements must demonstrate the initiation of specific required actions contained in the implementing regulations.

OFCCP's mission under Sections 402 and 503 and its basic responsibility, authority, processes, and procedures are essentially the same as under Executive Order No. 11246. However, there are some very important exceptions. First, the affirmative action obligations do not

for administering, implementing, and enforcing Sections 402 and 503 rests exclusively with the Secretary of Labor and the Director of OFCCP. Third, at the present time the primary compliance tool is the complaint process. Although compliance reviews are contemplated, a comprehensive system for conducting such reviews has not yet been developed. Under the current regulatory scheme such compliance reviews would be conducted by the compliance agencies. The fourth significant difference is that the regulations for these two programs do not include precontract award surveys as a compliance instrument.

Magnitude of the Combined Programs

Some 29,000 contractors, including most major corporations are covered by the Executive Order, Section 402, and Section 503 programs. Those corporations employ an estimated 31 million workers. The combined staff and financial resources of the programs include 1,900 positions and approximately $42 million.