sanctions and penalties as may be necessary or appropriate to achieve the purposes of the Orders.

(b) No case shall be referred to the Department of Justice under section 312 of the Order and no contract shall be cancelled or terminated in whole or in part under section 312(d) of the Order without compliance with § 60-1.28. Whenever debarment from contracts under section 312(e) of the Order may be proposed, the Executive Vice Chairman shall afford the contractor an opportunity for a hearing in accordance with § 60-1.27.

(c) The Executive Vice Chairman shall promptly notify the agency of any corrective action to be taken or any sanctions to be imposed by the agency. The agency shall take such action, and report the results thereof to the Executive Vice Chairman within the time specified in individual cases.

Sec. 60-1.27. Hearings

(a) General hearing procedure-(1) Notice. Whenever a hearing is to be held pursuant to Subpart B of this part reasonable notice of such hearing shall be given by registered mail, return receipt requested, to the contractor or subcontractor complained against. Such notice shall include (i) a convenient time and place of hearing, (ii) a statement of the provisions of the Order and regulations pursuant to which the hearing is to be held, and (iii) a concise statement of the matters pursuant to which the action forming the basis of the hearing has been taken or is proposed to be taken.

(2) Hearings. The Executive Vice Chairman, the head of the agency, or such other official or officials designated as hearing officers shall regulate the course of the hearing. Hearings shall be informally conducted. Every party shall have the right to counsel, and a fair opportunity to present his case or defense including such cross-examination as may be appropriate in the circumstances. Hearing officers shall make their proposed findings and recommended conclusions upon the basis of the record before them.

(b) Contract ineligibility cases. When hearings are held pursuant to section 310 (b) of the Order to declare a contractor or subcontractor ineligible for further contracts, the procedure provided in paragraph (a) of this section shall be followed except as hereinafter set forth.

(1) Notice of proposed ineligibility. Before any determination is made to declare any contractor or subcontractor ineligible for further contracts or subcontracts under sections 301 and 312 of the Order, a notice of proposed determination in writing and signed by the Executive Vice Chairman or head of the agency, or his authorized representative, as the case may be, shall be sent to the last known address of the contractor or subcontractor, return receipt requested. (2) Hearing request. Whenever a contractor or subcontractor has been notified by an agency of a proposed determination of contract ineligibility under the Orders, such contractor or subcontractor shall be entitled to request an opportunity to be heard by the agency. When such notice is received from the Executive Vice Chairman, a request for an opportunity to be heard may be made to the Committee. The letter to the Executive Vice Chairman or the head of the agency, or his authorized representative, as the case may be, may include a request for a written statement specifying charges in reasonable detail. The request for an opportunity to be heard shall be made within ten days from the date of receipt of notice of the proposed determination. If at the end of such ten day period, no request has been received, the Executive Vice Chairman or the head of the agency, or his authorized representative, may assume that an opportunity to be heard is not desired, and the Executive Vice Chairman may enter an order declaring such contractor or subcontractor ineligible for further contracts, or extensions or other modifications of existing contracts, until such contractor or subcontractor shall have satisfied the Committee that he has established and will carry out personnel and employment policies in compliance with the provisions of the Orders.

(3) Hearing, time and place. Upon receipt of a request for an opportunity to be heard, the Executive Vice Chairman or the head of the agency, or his authorized representative, shall arrange a timely hearing. The hearing shall be conducted by the head of the agency or his authorized representative or by a panel of the Committee consisting of not less than three members thereof appointed by the Chairman or Vice Chairman of the Committee. When the hearing is conducted by an agency, no decision by the head of the agency, or his authorized representative, shall be final without the prior approval of a panel of the Committee.

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

No case shall be referred to the Department of Justice under section 312(b) of the Order and no contract shall be terminated in whole or in part under section 312 (d) of the Order until the expiration of at least ten days from the mailing of notice of such proposed referral or contract termination to the contractor or subcontractor involved, affording him an opportunity to comply with the provisions of the Orders. Reasonable efforts to persuade the contractor or subcontractor to comply with the provisions of the Orders and to take such corrective action as may be appropriate shall be made during this period.

Sec. 60-1.29. Contract ineligibility list

The Executive Vice Chairman shall distribute periodically a list to all executive departments and agencies giving the names of contractors and subcontractors who have been declared ineligible under these regulations and the Orders. The Executive Vice Chairman may also publish such a list together with a list of those contractors for subcontractors who may have reestablished their eligibility in such form and in such places as he may deem appropriate.

Sec. 60-1.30. Notification of Comptroller General in cases of contract ineligibility or contract termination

Whenever a contract or subcontract is terminated or whenever a contractor or subcontractor is declared ineligible from receiving further contracts or subcontracts because of noncompliance with the equal opportunity clause, the Executive Vice Chairman shall notify the Comptroller General of the United States.

Sec. 60-1.31. Reinstatement of ineligible contractors and subcontractors

Any contractor or subcontractor declared ineligible for further contracts or subcontracts under the Orders may request reinstatement in a letter directed to the Executive Vice Chairman. In connection with the reinstatement proceeding, the contractor or subcontractor shall be required to show that it has now complied with the Orders or that it has a program of compliance acceptable to the Executive Vice Chairman.

SUBPART C-CERTIFICATES OF MERIT

Sec. 60-1.40. By the Committee on its own initiative

The Committee acting through the Chairman or Vice Chairman may award United States Government Certificates of Merit to employers or employee organizations which are or may hereafter be engaged in work under contracts, if the Committee is satisfied that the personnel and employment practices of the employer, or that the personnel, training, apprenticeship, membership, grievance and representation, upgrading, and other practices and policies of the employee organization conform to the purposes and provisions of the Order.

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

The Committee, acting through the Executive Vice Chairman, may award a United States Government Certificate of Merit upon the recommendation of an agency. The recommendation should include a statement in sufficient detail to inform the Executive Vice Chairman of the basis for the proposed award.

Sec. 60-1.43. Suspension or revocation

The Committee acting through the Chairman or Vice Chairman may at any time review the continued entitlement of any employer or employee organization to a United States Government Certificate of Merit, and may suspend or revoke in the public interest the Certificate if the holder thereof, in the judgment of the Executive Vice Chairman, is no longer in compliance with the provisions of the regulations and those of the Order. The Executive Vice Chairman shall notify all agencies of such suspension or revocation of the Certificate of Merit.

SUBPART D-ANCILLARY MATTERS

Sec. 60-1.60. Solicitations or advertisements for employees

In solicitations or advertisements for employees placed by or on behalf of a contractor or subcontractor, the requirements of paragraph (2) of the equal opportunity clause shall be satisfied whenever the contractor or subcontractor complies with any of the following:

(a) States expressly in the solicitations or advertising that all qualified applicants will receive consideration for employment without regard to race, creed, color, or national origin;

(b) Uses display or other advertising, and the advertising includes an appropriate insignia prescribed by the Committee. The use of the insignia is considered subject to the provisions of 18 U.S.C. 701;

(c) Uses a single advertisement, and the advertisement is grouped with other advertisements under a caption which clearly states that all employers in the group assure all qualified applicants equal consideration for employment without regard to race, creed, color, or national origin;

(d) Uses single advertisement in which appears in clearly distinguishable type the phrase "an equal opportunity employer."

Sec. 60-1.61. Access to records of employment

Each contractor and subcontractor shall permit access during normal business hours to his books, records, and accounts pertinent to compliance with the Orders, and all rules and regulations promulgated pursuant thereto, by the agency, the Committee, the Executive Vice Chairman, and the Secretary of Labor for purposes of investigation to ascertain compliance with the Orders and the rules, regulations, and relevant orders of the Committee. Information obtained in this manner shall be used only in connection with the administration of the Orders.

Sec. 60-1.62. Rulings and interpretations

The Executive Vice Chairman shall have authority to issue rulings and interpretations regarding the contracts portion of the Orders and the regulations contained in this part. The rulings and interpretations of the Executive Vice Chairman, unless and until modified or revoked, shall be authoritative.

Sec. 60-1.63. Reports to the Committee

The Executive Vice Chairman shall make periodic reports to the Committee and such other reports as may be requested by the Chairman or Vice Chairman of the Committee.

Sec. 60-1.64. Existing contracts and subcontracts

All Government contracts and subcontracts in effect prior to April 5, 1961, which are not subsequently modified shall be administered in accordance with the nondiscrimination provisions of any prior applicable Executive Orders. Any Government contract or subcontract modified on or after April 5, 1961, but before June 22, 1963, shall be subject to Executive Order 10925. Any Government contract or subcontract modified on or after June 22, 1963, shall be subject to the Order, and shall include as part of such modification the equal opportunity clause contained in Part II of Executive Order 11114. All federally assisted construction contracts in effect prior to July 22, 1963, which are not subsequently modified shall be administered in accordance with the provisions of any prior applicable agency regulations or instructions. Any federally assisted construction contract or subcontract modified on or after July 22, 1963, shall be subject to Executive Order 11114. Complaints received by, and violations coming to the attention of agencies regarding contracts and subcontracts not subject to either Executive Order 10925 or 11114 shall be reported to the Executive Vice Chairman. The agency shall, upon its own initiative or upon the request of the Executive Vice Chairman, investigate such complaints or alleged violations and take such other action as may be appropriate.

PART 60-80-INTERPRETATIONS

Sec. 60-80.1. Section 301 of Executive Order 10925

The President's Committee on Equal Employment Opportunity interprets the requirements of contruct provision (2) of section 301 of Executive Order 10925 of March 6, 1961 (26 F.R. 1977), relating to solicitations or advertisements for employees on public contracts as being satisfied whenever the contractor or subcontractor does any of the following:

(a) States expressly in the solicitations or advertising that all qualified applicants will receive consideration for employment without regard to race, creed, color, or national origin;

(b) Uses display advertising, and the advertising includes an appropriate insignia prescribed by the Committee. The use of the insignia is considered subject to the provisions of 18 U.S.C. 701.

(c) Uses a single advertisement, and the advertisement is grouped with other advertisements under a caption which clearly states that all employers in the group assure all qualified applicants equal consideration for employment without regard to race, creed, color, or national origin.

(d) Uses single advertisement in which appears in clearly distinguishable type the phrase "an equal opportunity employer."

(Sec. 306, E.O. 10925, 26 F.R. 1977) [26 F.R. 5623, June 23, 1961]

VOL. VII. CONTRACT LAWS

ASSIGNMENTS OF CLAIMS; SET-OFF AGAINST
ASSIGNEE

31 U.S.C., sec. 203

Sec. 203. Assignments of claims; set-off against assignee

All transfers and assignments made of any claim upon the United States, or of any part or share thereof, or interest therein, whether absolute or conditional, and whatever may be the consideration therefor, and all powers of attorney, orders, or other authorities for receiving payment of any such claim, or of any part or share thereof, except as hereinafter provided, shall be absolutely null and void, unless they are freely made and executed in the presence of at least two attesting witnesses, after the allowance of such a claim, the ascertainment of the amount due, and the issuing of a warrant for the payment thereof. Such transfers, assignments, and powers of attorney, must recite the warrant for payment, and must be acknowledged by the person making them, before an officer having authority to take acknowledgments of deeds, and shall be certified by the officer; and it must appear by the certificate that the officer, at the time of the acknowledgment, read and fully explained the transfer, assignment, or warrant of attorney to the person acknowledging the same. The provisions of this section shall not apply to payments for rent of postoffice quarters made by postmasters to duly authorized agents of the lessors.

The provisions of the preceding paragraph shall not apply in any case in which the moneys due or to become due from the United States or from any agency or department thereof, under a contract providing for payments aggregating $1,000 or more, are assigned to a bank, trust company, or other financing institution, including any Federal lending agency: Provided,

1. That in the case of any contract entered into prior to October 9, 1940, no claim shall be assigned without the consent of the head of the department or agency concerned ;

2. That in the case of any contract entered into after October 9, 1940, no claim shall be assigned if it arises under a contract which forbids such assignment;

3. That unless otherwise expressly permitted by such contract any such assignment shall cover all amounts payable under such contract and not already paid, shall not be made to more than one party, and shall not be subject to further assignment, except that any such assignment may be made to one party as agent or trustee for two or more parties participating in such financing;

4. That in the event of any such assignment, the assignee thereof shall file written notice of the assignment together with a true copy of the instrument of assignment with (a) the contracting officer or the head of his department or agency; (b) the surety or sureties upon the bond or bonds, if any, in connection with such contract; and (c) the disbursing officer, if any, designated in such contract to make payment.

Notwithstanding any law to the contrary governing the validity of assignments, any assignment pursuant to this section, shall constitute a valid assignment for all purposes.

In any case in which moneys due or to become due under any contract are or have been assigned pursuant to this section, no liability of any nature of the assignor to the United States or any department or agency thereof, whether arising from or independently of such contract, shall create or impose any liability on the part of the assignee to make restitution, refund, or repayment to the United States of any amount heretofore since July 1, 1950, or hereafter received under the assignment.

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