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thereunder as they relate to ERDA contracts and construction projects. The Division of Labor Relations provides assistance to all contracting officers in obtaining pre-award evaluations from compliance agencies for prospective prime contracts and subcontracts.

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(a) Nonconstruction contracts. Prior to the award of a nonconstruction, nonexempt contract of $1 million or more, the contracting officer shall determine that, as outlined in FPR 1-12.805-5(d), the prime contractor and each of its known first-tier subcontractors which will be awarded subcontracts of $1 million or more are in compliance with the equal opportunity clause pursuant to 41 CFR 60-1. In the event that the prospective contractor or subcontractor has not held a previous contract containing the equal opportunity clause the contracting officer shall determine that the prospective contractor appears able to conform to the requirements of the EEO clause. The contracting officer shall request the Director, Division of Labor Relations to make this determination, which is required by FPR 1-12.805.5.

(b) Construction contracts.

(1) Construction contracts, including cost-sharing contracts, are subject to Office Federal Contract Compliance Programs (OFCCP) orders applicable in particular areas.

(i) When a proposed nonexempt Federal or Federally-assisted construction contract is within a geographic area where construction is subject to the provisions of Federal EEO Bid Conditions Part I or Part II, the solicitation shall contain those bid conditions. The contracting officer shall include in such solicitation a statement that "the offeror shall adhere to the affirmative action plan (bid conditions) set forth in this solicitation."

(ii) Lists of areas for which OFCCP has designated specific affirmative action requirements are available through the Division of Labor Relations. Contracting officers shoud assure that this list and copies of pertinent orders are made available to all concerned ERDA procurement offices and to ERDA contractors and construction subcontractors for work to be performed in the specified geographical areas.

(2) Other nonexempt construction contracts.

(i) When a proposed nonexempt Federal or Federally-assisted

construction contract is not in a "plan area" and is in the amount of $10,000 or more, offerors must agree to comply with the equal opportunity clause.

(ii) When proposed nonexempt contracts of $1,000,000 or over are not in plan areas and have not been designated as high impact, offerors also must submit to the contracting officer details regarding specific affirmative steps to be taken by the offeror in connection with all work under the contract. Such details shall include estimates of the percentage of minority group persons expected to be employed in each craft involved in the performance of the contract work. All solicitations for construction contracts shall reference the affirmative action requirements and the offeror's obligation to make good faith efforts to employ women in craft positions.

(iii) Pursuant to the Office of Federal Contract Compliance Programs (OFCCP), order dated August 30, 1976, agencies shall develop "Special Bid Conditions" for use on high impact projects in non-plan areas. These special bid conditions will include mandatory goals and timetables for the utilization of minorities. The Division of Labor Relations using the criteria issued by OFCCP will determine those projects that are "high impact." The contracting office is responsible for compliance with policies and procedures contained in the OFCCP "Construction Compliance Program Operations Manual." Language for inclusion in solicitation or contracts contained in the manual may be modified provided all of the requirements are retained. The contracting office shall develop the goals and timetables and shall confer with the appropriate OFCCP regional office. The Division of Labor Relations will provide assistance as necessary, when requested. Special bid conditions will be submitted by the contracting office to the appropriate OFCCP Regional Office for approval unless otherwise directed by the Division of Labor Relations. When special bid conditions are applicable, adequate presolicitation lead time should be allowed for submission of the special bid conditions to OFCCP national and regional offices.

(3) Failure to submit an unqualified bid or proposal. Attempt to limit in any major respect the equal opportunity requirements included in an invitation for bid or request for proposal for a construction contract shall constitute grounds for a determination that the offeror does not qualify as a responsible offeror and for rejection of the bid or proposal.

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The Office of Federal Contract Compliance Programs (OFCCP)

maintains a list of firms for which special attention is required before entering into contracts. The Senior Procurement Official, Headquarters, or designee is responsible for the maintenance and distribution of such lists and will provide updated copies to contracting officers.


Affirmative action compliance programs (AACP).

(a) Whenever a nonexempt, nonconstruction contractor has 50 or more employees and a contract of $50,000 or more, or a nonexempt construction contractor has a regular work force of 50 or more and the contract is in the amount of $50,000 or more, the contractor shall develop a written affirmative action compliance program for each of its establishments, unless the contract is exempt as per FPR 1-12.804. Each prime contractor and subcontractor shall require each subcontractor who has 50 or more employees and a subcontractor of $50,000 or more to develop a written AACP for each of its establishments, unless the subcontract is exempt as per FPR 1-12.804. Elements of a satisfactory AACP are outlined in 41 CFR 60-2.

(b) Within 120 days from the start of the contract or subcontract, each contractor or subcontractor shall maintain a copy of separate AACPs for each establishment at each local office responsible for personnel matters of such establishment. An AACP shall become part of the human resource and development plans for each new establishment and be made available prior to the staffing of a new establishment. Results of such programs shall be compiled periodically, as prescribed by ERDA, but not less frequently than anually, and the program shall be updated annually. This information shall be made available to representatives of the agency or Director, Office of Federal Contract Compliance Programs, upon request.

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9-15.5009-1 9-15.5009-2

Compensation through fee.

General basis for determination of costs.

Cost determination based on audit.

Contractor's accounting system.

Advanced understandings on particular cost items.
Direct and indirect costs.

Explanation of direct costs and indirect costs.
Treatment of indirect costs.

Company general and administrative expenses.

Negotiated fixed-price contracts when costs incurred are a factor in determining the amount payable. General policy.


Contractor's cost accounting system.
Treatment of indirect costs.

Direct charging of costs.

Appropriate departmentization.

Subpart 9-15.50














Cost Principles and Procedures (cont.)

Distribution of service department costs to

production departments.

Distribution of indirect costs of productive

departments to work done.

General and administrative expenses.

Application of basic principles to particular situations.
Consideration of costs confined to locations involved.

Field Work.

Use of Government-owned facilities.

Contractor's costs covering plant and equipment.
Overtime, shift, and holiday premiums.

Outside technical and professional consultants.
Preparatory and make-ready costs.

Severance pay.

Precontract costs.

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9-15.5010-14 Compensation for personal services. 9-15.5010-15 Air travel.

9-15.5010-16 Page charges in scientific journals.




Special funds in the construction industry.
Employee morale, health, welfare, and food
service and dormitory costs.

Procurements or transfers from contractor-controlled
sources by certain cost-type contractors.

9-15.5010-20 Relocation costs.

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