areas or subject matters immediately after the desk audit and within a reasonable period in advance of the on-site review.

(d) On-site review. (1) If upon selection of an affirmative action compliance program for desk audit, the compliance agency finds that the material submitted does not demonstrate a reasonable effort by the contractor to meet the requirements of Part 60-2 of this chapter, the on-site review need not be carried out and the enforcement procedures specified in Part 60-1 of this chapter shall be applicable. Otherwise, following a desk audit of the affirmaitve action compliance program the agency will schedule an on-site review of the establishment: Provided, That the compliance review need not be pursued when the agency can determine that there are no apparent deficiencies for which an in-depth examination is warranted.

(2) The primary purpose of the onsite review is to collect sufficient facts, including supporting documentation, to make a determination regarding problems identified during the desk audit. To assist in achieving this purpose, the compliance agency should request that those contractors scheduled for on-site reviews make available on-site that information necessary to perform the review. This may include, inter alia, (i) information necessary to conduct an indepth analysis of apparent disparities in the employment of women or minorities, (ii) information required for a complete and thorough understanding of data contained in or offered as support for the affirmative action compliance programs and (iii) information concerning matters relevant to a determination of compliance with the requirements of Executive Order 11246, as amended, but not adequately addressed in the affirmative action compliance program. However, the contractor should be requested to furnish only the specific items of information which the compliance officer determines are necessary for conducting the review and developing an adequate record, and which is not contained in and cannot be derived from the material already submitted by the contractor. In order to pursue certain issues uncovered in the compliance review, it may be necessary for the compliance officer to request certain additional information on-site even though such data have not been previously identified. Such additional information must also meet the above criteria.

(e) Off-site analysis. Where necessary, the compliance officer may take information made available during the onsite review off-site for further analysis. An off-site analysis should be conducted where issues have arisen concerning deficiencies or an apparent violation which, in the judgment of the compliance officer, should be more thoroughly analyzed offsite before a determination concerning compliance is made.

PROPOSED RULES

review.

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Exit conference.

Upon completion of the on-site review the compliance officer should schedule an exit conference with contractor officials to itemize any deficiencies which lend themselves to immediate correction and solicit the contractor's agreement to take adequate corrective action by specified dates. However, in cases where the apparent resolutions require further analysis subsequent to the on-site review, the compliance officer will advise the contractor of the areas of concern, secure the data necessary for an ultimate determination and complete the review later by forwarding a notice of compliance, or a notice of deficiencies followed by a conciliation conference.

§ 60-8.7 Notice of deficiencies.

Each violation which does not lend itself to immediate correction should be communicated to the contractor in the form of a written notice of deficiencies. The notice of deficiencies should be presented to the contractor within a reasonable period in advance of the conciliation conference and should contain:

(1) An itemization of the sections of the Executive Order and of the regula tions with which the contractor has been found in apparent violation, and a summary of the conditions, practices, facts or circumstances which give rise to each apparent violation;

(2) The corrective actions necessary to achieve compliance or, as may be appropriate, the concepts and principles of an acceptable remedy and/or the corrective action results anticipated;

(3) A request for a written response to the findings, including commitments to corrective action or the presentation of opposing facts and evidence; and

(4) A suggested date for the conciliation conference.

§ 60-8.8 Conciliation conference.

The purpose of the conciliation conference is to expend reasonable efforts to achieve compliance through conference, conciliation, mediation and persuasion. In preparation for the conference, the agency should conduct an in-depth analysis and evaluation of the contractor's written response. Any conciliation agreement shall include a specific commitment, in writing, to correct all violations. The commitment must include the precise action to be taken, dates for completion, and appropriate remedies. The time period alloted shall be no longer than the minimum period necessary to effect such changes. Upon approval by the compliance agency, unless disapproved by the Director, the contractor may be considered in compliance, on condition that the commitments are faithfully kept.

Within 90 days of receipt of the affirmative action compliance program for desk audit purposes, except where the Director has granted an extension, the compliance agency must have found the contractor in compliance and notified the contractor of that fact, or must have issued a notice of deficiencies. During the 90-day period the compliance agency shall:

(1) Complete the desk audit. (2) Schedule the on-site review. (3) Complete the on-site review. (4) Complete the off-site analysis, if conducted.

(5) Give notice of compliance or issue a notice of deficiencies. Within 90 days after issuing a notice of deficiencies the compliance agency shall forward to OFCCP a conciliation agreement or a request to institute enforcement proceedings. The request shall comply with the requirements of § 601.25(b) of this chapter.

Subpart C-Disclosure and Review of
Contractor Data

(a) Desk audit data. If the contractor is concerned about the confidentiality of such information as lists of employees, employee names, reasons for termination and pay data, then alphabetic or numeric coding or the use of an index of pay ranges are acceptable.

(b) On-site data. The contractor must provide full access to all relevant data on-site including lists of employees, reasons for termination, employment applications, pay and salary information, and all other data necessary to a determination of compliance with the Order and the regulations in this chapter (see § 60-1.43 of this chapter).

(c) Data required for off-site analysis. The contractor must provide all data determined by the compliance officer to be necessary for off-site analysis (see § 608.4(e) and § 60-8.10(b) above).

(d) Public access to information. Information obtained from a contractor under Subpart B will be subject to the public inspection and copying provisions of the Freedom of Information Act (5 U.S.C. 552). Upon submission of an affirmative action compliance program for desk audit purposes, contractors shall identify any information which they believe is not subject to disclosure under 5 U.S.C. 552 and should specify in detail the reasons why such information should not be disclosed. Upon receipt of a request under the Freedom of Information Act for an affirmative action compliance program, the contract compliance agency shall consider the contractor's claim and make a determination thereon within the time limits in the Freedom of Information Act.

(e) Examination and copying of documents. Nothing contained herein is intended to supersede or otherwise limit the provisions contained in Part 60-6 of this chapter for public access to information from records of the OFCCP or its various compliance agencies.

[FR Doc.76-27432 Filed 9-16-76;8:45 am)

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Section 2012. Veterans' employment emphasis under Federal contracts.

(a) Any contract in the amount of $10,000 or more entered into by any department or agency for the procurement of personal property and non-personal services (including construction) for the United States, shall contain a provision requiring that the party contracting with the United States shall take affirmative action to employ and advance in employment qualified disabled veterans and veterans of the Vietnam era. The provisions of this section shall apply to any subcontract entered into by a prime contractor in carrying out any contract for the procurement of personal property and non-personal services (including construction) for the United States. In addition to requiring affirmative action to employ such veterans under such contracts and subcontracts and in order to promote the implementation of such requirement, the President shall implement the provisions of this section by promulgating regulations within 60 days after the date of enactment of this section, which regulations shall require that (1) each such contractor undertake in such contracts to list immediately with the appropriate local employment service office all of its suitable employment openings, and (2) each such local office shall give

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such veterans priority in referral to such employment openings.

(b) If any disabled veteran or veteran of the Vietnam era believes any contractor has failed or refuses to comply with the provisions of his contract with the United States, relating to the employment of veterans, such veteran may file a complaint with the Veterans' Employment Service of the Department of Labor. Such complaint shall be promptly referred to the Secretary who shall promptly investigate such complaint and shall take such action thereon as the facts and circumstances warrant consistent with the terms of such contract and the laws and regulations applicable thereto.

(Section 2013 regarding eligibility under manpower training is omitted.)

Section 2014. Employment within the Federal Government

(a) It is the policy of the United States and the purpose of this section to promote the maximum of employment and job advancement opportunities within the Federal Government for qualified disabled veterans and veterans of the Vietnam era.

(b) To further this policy, veterans of the Vietnam era shall be eligible, in accordance with regulations which the Civil Service Commission shall prescribe, for veterans readjustment appointments up to and including the GS-5, as specified in subchapter II of chapter 51 of title 5, conditions specified in Executive Order Numbered 11521 (March 26, 1970), except that in applying the one-year period of eligibility specified in section 2(a) of such order to a veteran or disabled veteran who enrolls, within one year following separation from the Armed Forces or following release from hospitalization or treatment immediately following separation from the Armed Forces, in a program of education (as defined in section 1652 of this title) on more than a half-time basis (as

defined in section 1788 of this title), the time spent in such program of education (including customary periods of vacation and permissible absences) shall not be counted. The eligibility of such a veteran for a readjustment appointment shall continue for not less than six months after such veteran first ceases to be enrolled therein on more than a halftime basis. No veterans' readjustment appointment may be made under authority of this subsection after June 30, 1978.

(c) Each department, agency, and instrumentality in the executive branch shall include in its affirmative action plan for the hiring, placement, and advancement of handicapped individuals in such department, agency, or instrumentality as required by section 501(b) of Public Law 93-112 (87 Stat. 391), a separate specification of plans (in accordance with regulations which the Civil Service Commission shall prescribe in consultation with the Administrator, the Secretary of Labor, and the Secretary of Health, Education, and Welfare, consistent with the purposes, provisions, and priorities of such Act) to promote and carry out such affirmative action with respect to disabled veterans in order to achieve the purpose of this section.

(d) The Civil Service Commission

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shall be responsible for the review and evaluation of the implementation of this section and the activities of each such department, agency, and instrumentality to carry out the purpose and provisions of this section. The Commission shall periodically obtain and publish (on at least a semiannual basis) reports on such implementation and activities from each such department, agency, and instrumentality, including specification of the use and extent of appointments made under subsection (b) of this section and the results of the plans required under subsection (c) thereof.

(e) The Civil Service Commission shall submit to the Congress annually a report on activities carried out under this section, except that, with respect to subsection (c) of this section, the Commission may include a report of such activities separately in the report required to be submitted by section 501(d) of such Public Law 93-112, regarding the employment of handicapped individuals by each department, agency, and instrumentality.

(f) Notwithstanding section 2011 of this title, the terms "veteran" and "disabled veteran" as used in this section shall have the meaning provided for under generally applicable civil service law and regulations.