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tract, including supplemental agree. (2) Under which any portion of the ments, amendments, and extensions. contractor's obligation under any one

“Order," "Executive Order,” or “Ex- or more contracts is performed, underecutive Order 11246” means parts II, taken, or assumed. III, and IV of the Executive Order “Subcontractor" means any person 11246 dated September 24, 1965 (30 holding a subcontract and, for the pur. FR 12319), any Executive order poses of Subpart B of this part, any amending such order, and any other

person who has held a subcontract Executive order superseding such subject to the order. The term “Firstorder.

tier subcontractor” refers to a subcon"Person” means any natural person,

tractor holding a subcontract with a corporation, partnership, unincorpor

prime contractor. ated association, State or local govern

“United States” as used herein shall ment, and any agency, instrumentali

include the several States, the District ty, or subdivision of such a govern

of Columbia, the Commonwealth of ment.

Puerto Rico, the Panama Canal Zone, “Prime contractor" means any

and the possessions of the United person holding a contract and, for the

States. purposes of Subpart B of this part,

$ 60-1.4 Equal opportunity clause. any person who has held a contract subject to the order.

(a) Government contracts. Except as “Recruiting and training agency”

otherwise provided, each contracting means any person who refers workers

agency shall include the following to any contractor or subcontractor or

equal opportunity clause contained in who provides for employment by any

section 202 of the order in each of its contractor or subcontractor.

Government contracts (and modifica"Rules, regulations, and relevant

tions thereof if not included in the orders of the Secretary of Labor” used

original contract): in paragraph (4) of the equal opportu During the performance of this contract, nity clause means rules, regulations, the contractor agrees as follows: and relevant orders of the Secretary of (1) The contractor will not discriminate Labor or his designee issued pursuant

against any employee or applicant for emto the order.

ployment because of race, color, religion,

sex, or national origin. The contractor will "Secretary" means the Secretary of

take affirmative action to ensure that appliLabor, U.S. Department of Labor.

cants are employed, and that employees are “Site of construction” means the treated during employment, without regard general physical location of any build to their race, color, religion, sex, or national ing, highway, or other change or im

origin. Such action shall include, but not be provement to real property which is

limited to the following: Employment, up

grading, demotion, or transfer, recruitment undergoing construction, rehabilita

or recruitment advertising; layoff or termition, alteration, conversion, extension,

nation; rates of pay or other forms of comdemolition, or repair and any tempo.. pensation; and selection for training, includrary location or facility at which a ing apprenticeship. The contractor agrees to contractor, subcontractor, or other post in conspicuous places, available to emparticipating party meets a demand or ployees and applicants for employment, noperforms a function relating to the

tices to be provided by the contracting officontract or subcontract.

cer setting forth the provisions of this non

discrimination clause. "Subcontract” means any agreement

(2) The contractor will, in all solicitations or arrangement between a contractor

or advertisements for employees placed by and any person (in which the parties or on behalf of the contractor, state that all do not stand in the relationship of an qualified applicants will receive consideraemployer and an employee):

tion for employment without regard to race, (1) For the furnishing of supplies or

color, religion, sex, or national origin. services or for the use of real or per

(3) the contractor will send to each labor

union or representative of workers with sonal property, including lease ar

which he has a collective bargaining agreerangements, which, in whole or in

ment or other contract or understanding, a part, is necessary to the performance notice to be provided by the agency conof any one or more contracts; or

tracting officer, advising the labor union or

workers' representative of the contractor's commitments under section 202 of Executive Order 11246 of September 24, 1965, 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 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.

(5) The contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the contracting agency and the Secretary of Labor 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 such rules, regulations, or orders, this contract may be canceled, terminated or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, 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 Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24. 1965. 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 may be directed by the Secretary of Labor as a means of enforcing such provisions including sanctions for noncompli. ance: Provided, however, that in the event the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction, the contractor may request the United States to enter into such litigation to protect the interests of the United States.

quirements 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 modi. fication thereof, as defined in the regulations of the Secretary of Labor at 41 CFR Chapter 60, 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, color, religion, sex, 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, color, religion, sex, 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 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 considerations for employment without regard to race, color, religion, sex, 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' representatives 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 contrator will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.

(5) The contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investi

(b) Federally assisted construction contracts. (1) Except as otherwise provided, each administering agency shall require the inclusion of the following language as a condition of any grant, contract, loan, insurance, or guarantee involving federally assisted construction which is not exempt from the re

gation to ascertain compliance with such rules, regulations, and orders.

(6) In the event of the contractor's non compliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, this contract may be canceled, 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 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law.

(7) The contractor will include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, 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 non

e: 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 administering 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 with respect to its own employment practices when it participates in federally assisted construction work: Provided, That if the applicant so participating is a State or local government, the above equal opportunity clause is not applicable to any agency, instrumentality or subdivision of such government which does not participate in work on or under the contract.

The applicant agrees that it will assist and cooperate actively with the administering agency and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the equal opportunity clause and the rules, regulations, and relevant orders of the Secretary of Labor, that it will furnish the administering agency and the Secretary of Labor 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 11246 of September 24, 1965, with a contractor debarred from, or who has not demonstrated eligibility for, Government contracts and federally assisted construction contracts pursuant to the Executive order 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 Secretary of Labor pursuant to Part II, Subpart D of the Executive order. In addition, the applicant agrees that if it fails or refuses to comply with these undertakings, the administering agency may take any or all of the following actions: Cancel, terminate, or suspend in whole or in part this grant (contract, loan, insurance, guarantee); refrain from extending any further assistance to the applicant under the program with respect to which the failure or refund occurred until satisfactory assurance of future compliance has been received from such applicant; and refer the case to the Department of Justice for appropriate legal proceedings.

(c) Subcontracts. Each nonexempt prime contractor or subcontractor shall include the equal opportunity clause in each of its nonexempt subcontracts.

(d) Incorporation by reference. The equal opportunity clause may be incorporated by reference in all Government contracts and subcontracts, including Government bills of lading, transportation requests, contracts for deposit of Government funds, and contracts for issuing and paying U.S. sav. ings bonds and notes, and such other contracts and subcontracts as the Director may designate.

(e) Incorporation by operation of the Order. By operation of the Order, the equal opportunity clause shall be considered to be a part of every contract and subcontract required by the Order and the regulations in this part to include such a clause whether or not it is physically incorporated in such contracts and whether or not the contract between the agency and the contractor is written.

(f) Adaptation of language. Such necessary changes in language may be made in the equal opportunity clause as shall be appropriate to identify properly the parties and their undertakings.

$ 60-1.5 Exemptions.

(a) General-(1) Transactions of $10,000 or under. Contracts and subcontracts not exceeding $10,000, other than Government bills of lading, and other than contracts and subcontracts with depositories of Federal funds in any amount and with financial institutions which are issuing and paying agents for U.S. savings bonds and sav. ings notes, 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. No agency, contractor, or subcontractor shall procure supplies or services in a manner so as to avoid applicability of the equal opportunity clause: Provided, that where a contractor has contracts or subcontracts with the Government

nt in any 12-month period which have an aggregate total value (or can reasonably be expected to have an aggregate total value) exceeding $10,000, the $10,000 or under exemption does not apply, and the contracts are subject to the order and the regulations issued pursuant thereto regardless of whether any single contract exceeds $10,000.

(2) Contracts and subcontracts for indefinite quantities. With respect to contracts and subcontracts for indefinite quantities (including, but not limited to, open end contracts, require ment-type contracts, Federal Supply Schedule contracts, “call-type" contracts, and purchase notice agreements), the equal opportunity clause shall be included unless the purchaser has reason to believe that the amount to be ordered in any year under such contract will not exceed $10,000. The applicability of the equal opportunity clause shall be determined by the purchaser at the time of award for the first year, and annually thereafter for succeeding years, if any. Notwith standing the above, the equal opportunity clause shall be applied to such contract whenever the amount of a single order exceeds $10,000. Once the equal opportunity clause is determined to be applicable, the contract shall continue to be subject to such clause

for its duration, regardless of the amounts ordered, or reasonably expected to be ordered in any year.

(3) Work outside the United States. Contracts and subcontracts are exempt from the requirements of the equal opportunity clause with regard to work performed outside the United States by employees who were not recruited within the United States.

(4) Contracts with State or local governments. The requirements of the equal opportunity clause in any contract or subcontract with a State or local government (or any agency, instrumentality or subdivision thereof) shall not be applicable to any agency, instrumentality or subdivision of such government which does not participate in work on or under the contract or subcontract. In addition, any agency, instrumentality or subdivision of such government, except for educational institutions and medical facilities, are exempt from the requirements of filing the annual compliance report provided for by $ 60-1.7(a)(1) and maintaining a written affirmative action compliance program prescribed by $ 60-1.40 and part 60-2 of this chapter.

(5) Contracts with certain educational institutions. It shall not be a violation of the equal opportunity clause for a school, college, university, or other educational institution or institution of learning to hire and employ employees of a particular religion if such school, college, university, or other educational institution or institution of learning is, in whole or in substantial part, owned, supported, controlled, or managed by a particular religion or by a particular religious corporation, association, or society, or if the curriculum of such school, college, university, or other educational institution or institution of learning is directed toward the propagation of a particular religion. The primary thrust of this provision is directed at religiously oriented church-related colleges and universities and should be so interpreted.

(6) Work on or near Indian reservations. It shall not be a violation of the equal opportunity clause for a construction or nonconstruction contractor to extend a publicly announced

preference in employment to Indians (d) Withdrawal of exemption. When living on or near an Indian reservation any contract or subcontract is of a in connection with employment oppor class exempted under this section, the tunities on or near an Indian reserva. Director may withdraw the exemption tion. The use of the word “near” for a specific contract or subcontract would include all that area where a or group of contracts or subcontracts person seeking employment could rea- when in his judgment such action is sonably be expected to commute to necessary or appropriate to achieve and from in the course of a work day. the purposes of the order. Such withContractors or subcontractors extend drawal shall not apply to contracts or ing such a preference shall not, howev. subcontracts awarded prior to the er, discriminate among Indians on the withdrawal, except that in procurebasis of religion, sex, or tribal affili ments entered into by formal advertisation, and the use of such a preference ing, or the various forms of restricted shall not excuse a contractor from formal advertising, such withdrawal complying with the other require shall not apply unless the withdrawal ments contained in this chapter.

is made more than 10 calendar days (b) Specific contracts and facilities, before the date set for the opening of (1) Specific contracts. The Director the bids. may exempt an agency or any person

[43 FR 49240, Oct. 20, 1978; 43 FR 51400, from requiring the inclusion of any or Nov. 3, 1978) all of the equal opportunity clause in any specific contract or subcontract $ 60-1.6 [Reserved] when he deems that special circumstances in the national interest so re- $ 60-1.7 Reports and other required inforquire. The Director may also exempt

mation. groups or categories of contracts or (a) Requirements for prime contracsubcontracts of the same type where tors and subcontractors. (1) Each he finds it impracticable to act upon prime contractor and subcontractor each request individually or where shall file annually, on or before the group exemptions will contribute to 31st day of March, complete and accuconvenience in the administration of rate reports on Standard Form 100 the order.

(EEO-1) promulgated jointly by the (2) Facilities not connected with Office of Federal Contract Compliance contracts. The Director may exempt Programs, the Equal Employment Opfrom the requirements of the equal portunity Commission and Plans for opportunity clause any of a prime con- Progress or such form as may hereaftractor's or subcontractor's facilities ter be promulgated in its place if such which he finds to be in all respects prime contractor or subcontractor (i) separate and distinct from activities of is not exempt from the provisions of the prime contractor or subcontractor these regulations in accordance with related to the performance of the con- $ 60-1.5; (ii) has 50 or more employees; tract or subcontract, provided that he (iii) is a prime contractor or first tier also finds that such an exemption will subcontractor; and (iv) has a contract, not interfere with or impede the effec subcontract or purchase order tuation of the order.

amounting to $50,000 or more or (c) National security. Any require serves as a depository of Government ment set forth in these regulations in funds in any amount, or is a financial this part shall not apply to any con- institution which is an issuing and tract or subcontract whenever the paying agent for U.S. savings bonds head of an agency determines that and savings notes: Provided, That any such contract or subcontract is essen- subcontractor below the first tier tial to the national security and that which performs construction work at its award without complying with such the site of construction shall be rerequirement is necessary to the na- quired to file such a report if it meets tional security. Upon making such a requirements of paragraphs (a)(1) (i), determination, the head of the agency (ii), and (iv) of this section. will notify the Director in writing (2) Each person required by $ 60within 30 days.

1.7(a)(1) to submit reports shall file

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