ceive a subcontract of $1 million or more will be subject to a review to determine compliance with the equal opportunity clause and the regulations issued pursuant to Executive Order 11246. In order to qualify in this respect for award, the contractor and such subcontractors must be found, on the basis of such review, to be able to comply with these requirements.

Where a previous compliance review has been made within 6 months of the expected date of award, an additional full review will ordinarily not be needed to determine compliance.

If your bid is $1 million or more, supply the following data for each of your establishments (and subcontractor establishments if subcontract is $1 million or more) where work on the contract will be performed: Name and location of establishment; latest compliance review, date, and agency which made the review.

The following notice shall be included in the invitation for bids for each formally advertised construction or installation contract which may result in an award of $1 million or more:

Equal opportunity preaward conference. Where the bid of the apparent low responsible bidder is in the amount of $1 million or more, the bidder will be subject to a preaward conference with TVA for the purpose of determining whether the bidder and his subcontractors are able to comply with the provisions of the equal opportunity clause and carry out an affirmative action program of equal opportunity.

§ 303.4-10 Elimination of segregated facilities.

(a) Prime contractors, subcontractors, and applicants subject to the Equal Opportunity clause must ensure that the facilities provided for employees are provided in a manner that segregation on the basis of race, color, religion, or national origin cannot result. They may neither require such segregated use by explicit directives nor tolerate such use by employee custom. The obligation extends further to ensuring that employees are not assigned to perform their services at any location under the prime contractor's, subcontractor's, or applicant's (where he is himself performing federally assisted construction) control where the facilities are segregated. Such segregation at any facility provided by a prime contractor, subcontractor, or applicant is an unacceptable failure to

comply with the contractor's equal opportunity obligations. Discharge of this obligation in no way whatsoever diminishes or relieves a prime contractor, subcontractor, or applicant of his responsibility to carry out fully the other nondiscrimination and affirmative action requirements of his contract.

(b) TVA provides for the giving of the notice prescribed by this paragraph (b) to, and for its inclusion in agreements with applicants which may involve federally assisted construction contracts and related subcontracts exceeding $10,000 which are not exempt from the provisions of the equal opportunity clause. The notice to be included in agreements with applicants is as follows:

NOTICE TO APPLICANTS OF REQUIREMENT FOR CERTIFICATIONS OF NONSEGREGATED FACILI

TIES

(a) A certification of nonsegregated facilities must be submitted by the applicant prior to any agreement for Federal financial assistance where the applicant will himself perform a federally assisted construction contract exceeding $10,000 which is not exempt from the provisions of the equal opportunity clause.

(b) Applicants for Federal Assistance shall notify prospective federally assisted construction contractors of the certification of nonsegregated facilities required, as follows: NOTICE TO PROSPECTIVE FEDERALLY ASSISTED CONSTRUCTION CONTRACTORS

(a) A certification of nonsegregated facilities must be submitted prior to the award of a federally assisted construction contract exceeding $10,000 which is not exempt from the provisions of the equal opportunity clause.

(b) Contractors receiving federally assisted construction contract awards exceeding $10,000 which are not exempt from the provisions of the equal opportunity clause will be required to provide for the forwarding of the following notice to prospective subcontractors for supplies and construction contracts where the subcontracts exceed $10,000 and are not exempt from the provisions of the equal opportunity clause.

NOTICE TO PROSPECTIVE SUBCONTRACTORS OF REQUIREMENT FOR CERTIFICATIONS OF NONSEGREGATED FACILITIES

(a) A certification of nonsegregated facilities must be submitted prior to the award of a subcontract exceeding $10,000 which is

not exempt from the provisions of the equal opportunity clause.

(b) Contractors receiving subcontract awards exceeding $10,000 which are not exempt from the provisions of the equal opportunity clause will be required to provide for the forwarding of this notice to prospective subcontractors for supplies and construction contracts where the subcontracts exceed $10,000 and are not exempt from the provisions of the equal opportunity clause.

(c) TVA includes a requirement for a certification of nonsegregated facilities in its (1) invitation for bids, (2) requests for proposals, (3) modifications of contracts (in the absence of a certification), (4) contracts resulting from unsolicited proposals, (5) federally assisted construction contracts of applicants, and (6) agreements with applicants. Pursuant to this requirement bidders, offerors, recipients of contract awards and contract modifications, applicants performing federally assisted construction contracts, federally assisted construction contractors, and their respective subcontractors, shall submit the certification prescribed by this paragraph (c) in connection with their bids, proposals, contracts, contract modifications, and agreements where awards and agreements may result in contracts and subcontracts exceeding $10,000 which are not exempt from the provisions of the equal opportunity clause. Certifications shall be individually signed except where the certification is executed by reason of the signature on the bid or offer. The certifications submitted by subcontractors shall be retained in the files of the prime contractor or subcontractor receiving the certification. Where a prime contractor or subcontractor does business with a concern on a continuing basis, a single certification may be submitted periodically (quarterly, semiannually, or annually) rather than with each transaction.

(1) Certification to be submitted by (i) bidders, (ii) offerors, (iii) contractors, (iv) subcontractors, and (v) applicants who are themselves performing federally assisted construction tracts:

con

Certification of nonsegregated facilities. By the submission of his bid, the bidder, offeror, applicant, or subcontractor certifies

that he does not maintain or provide for his employees any segregated facilities at any of his establishments, and that he does not permit his employees to perform their services at any location, under his control, where segregated facilities are maintained. He certifies further that he will not maintain or provide for his employees any segregated facilities at any of his establishments, and that he will not permit his employees to perform their services at any location, under his control, where segregated facilities are maintained. The bidder, offeror, applicant, or subcontractor agrees that a breach of this certification is a violation of the equal opportunity clause in this contract.

As used in this certification, the term "segregated facilities" means any waiting rooms, work areas, rest rooms and washrooms, restaurants and other eating areas, time clocks, locker rooms and other storage or dressing areas, parking lots, drinking fountains, recreation or entertainment areas, transportation, housing facilities provided for employees which are segregated by explicit directive or are in fact segregated on the basis of race, creed, color, or national origin, because of habit, local custom, or otherwise.

He further agrees that (except where he has obtained identical certifications from proposed subcontractors for specific time periods) he will obtain identical certifications from proposed subcontractors prior to the award of subcontracts exceeding $10,000 which are not exempt from the provisions of the equal opportunity clause; that he will retain such certifications in his files, and that he will forward the following notice to such proposed subcontractors (except where the proposed subcontractors have submitted identical certifications for specific time periods):

NOTICE TO PROSPECTIVE SUBCONTRACTORS OF REQUIREMENT FOR CERTIFICATIONS OF NONSEGREGATED FACILITIES

A certification of nonsegregated facilities must be submitted prior to the award of a subcontract exceeding $10,000 which is not exempt from the provisions of the equal opportunity clause. The certification may be submitted either for each subcontract or for all subcontracts during a period (i.e., quarterly, semiannually, or annually).

NOTE: The penalty for making false statements in offers is prescribed in 18 U.S.C. 1001.

(2) Certification to be submitted by federally assisted construction contractors or applicants and their subcontractors:

Certification of nonsegregated facilities. (Applicable to federally assisted construction contracts and related subcontracts exceeding $10,000 which are not exempt from the equal opportunity clause.)

The federally assisted construction contractor certifies that he does not maintain or provide for his employees any segregated facilities at any of his establishments, and that he does not permit his employees to perform their services at any location, under his control, where segregated facilities are maintained. The federally assisted construction contractor certifies further that he will not maintain or provide for his employees any segregated facilities at any of his establishments, and that he will not permit his employees to perform their services at any location, under his control, where segregated facilities are maintained. The federally assisted construction contractor agrees that a breach of this certification is a violation of the equal opportunity clause in this contract. As used in this certification, the term "segregated facilities" means any waiting rooms, work areas, rest rocms, and washrooms, restaurants, and other eating areas, time clocks, locker rooms and other storage or dressing areas, parking lots, drinking fountains, recreation or entertainment areas, transportation, and housing facilities provided for employees which are segregated by explicit directive or are in fact segregated on the basis of race, color, religion, or national origin, because of habit, local custom, or otherwise. The federally assisted construction contractor agrees that (except where he has obtained identical certifications from proposed subcontractors for specific time periods) he will obtain identical certifications from proposed subcontractors prior to the award of subcontracts exceeding $10,000 which are not exempt from the provisions of the equal opportunity clause, and that he will retain such certifications in his files.

NOTE: The penalty for making false statements in offers is prescribed in 18 U.S.C. § 1001.

(d) The failure of a prime contractor or subcontractor to comply with the terms of his certification of nonsegregated facilities or with the terms of the equal opportunity clause as construed by paragraph (a) of this section shall be a ground for termination or cancellation of contracts or subcontracts as provided in § 303.6-9.

§ 303.5 Exemptions.

§ 303.5-1 General.

are

Contracts and subcontracts exempt from the requirements of the equal opportunity clause as provided in this section.

(a) Transactions of $10,000 or under. Contracts and subcontracts not exceeding $10,000, other than Government bills of lading, are exempt. 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 contractor, or subcontractor shall procure supplies or services in less than usual quantities to avoid applicability of the equal opportunity clause.

(b) Contracts and subcontracts for indefinite quantities. Contracts and subcontracts for indefinite quantities (including, but not limited to, openend contract, requirement-type contracts, Federal Supply Schedule contracts, call-type contracts, and purchase notice agreements) shall include the equal opportunity clause 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. Notwithstanding 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.

(c) 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.

(d) 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, State and local governments are exempt from the requirements of filing the annual compliance report provided for by § 303.6–4 and maintaining a written affirmative action compliance program prescribed by § 303.11.

(e) National security. Any requirement set forth in the regulations in this part shall not apply to any contract or subcontract whenever the TVA Board determines that such contract or subcontract is essential to the national security and that its award without complying with such requirement is necessary to the national security. Upon making such a determination, the TVA Board notifies the Director in writing within 30 days.

(f) Sales contracts. Contracts providing for the sale of Government real and personal property are exempt from the requirements of the equal opportunity clause by reason of the definition of the term "Government contract" (see § 303.3(m)).

subcontractor's facilities which he finds to be in all respects separate and distinct from the activities of the prime contractor, or subcontractor, related to the performance of the contract, or subcontract, provided that he also finds that such an exemption will not interfere with or impede the effectuation of the order.

§ 303.5-4 Effect of exemption.

Notwithstanding the inclusion in any contract or subcontract of the equal opportunity clause, the contractor or subcontractor shall be exempt from compliance therewith if the contract or subcontract containing such a clause is exempt.

§ 303.5-5 Withdrawal of exemption.

When any contract or subcontract is of a class exempted under § 303.5, the Director may withdraw the exemption for a specific contract, or subcontract, or group of contracts or subcontracts when in his judgment such action is necessary or appropriate to achieve the purposes of the order. Such withdrawal shall not apply to contracts or subcontracts awarded prior to the withdrawal except that in procurements entered into by formal advertising, or the various forms of restricted formal advertising, such withdrawal shall not apply unless the withdrawal is made more than 10 calendar days before the date set for the opening of bids.

§ 303.6 Administration.

§ 303.6-1 Duties.

(a) General responsibility. TVA is primarily responsible for obtaining compliance with the equal opportunity clause, the order, the regulations of the Secretary of Labor, and orders issued pursuant thereto. TVA cooperates with the Director and furnishes him such information and assistance as he may require in the performance of his functions under the order. Such information shall include compliance review reports, schedules of compliance reviews, and any other information relevant to the administration of the order.

(b) TVA programs. The Director of the Division of Purchasing is designated as TVA's Contract Compliance Officer. He administers the equal opportunity clause in TVA contracts and is TVA's liaison with Department of Labor's Office of Federal Contract Compliance and with other agencies in equal opportunity compliance matters. He may designate such Deputy Contract Compliance Officers as he deems necessary to assist him in the performance of his duties. The names, addresses, and telephone numbers of TVA's Contract Compliance Officer and Deputy Contract Compliance Officers are furnished to the Director.

(c) TVA regulations. TVA's regulations are submitted to the Director for review and approval prior to issuance and may be enforced upon approval of the Director, or 60 days after submission if not disapproved by the Director.

(d) Award of contracts. Sixty days after the effective date (July 1, 1968) of the rules, regulations, and relevant orders of the Secretary of Labor, TVA shall follow the procedures described in this paragraph (d) before the award of any nonexempt contract exceeding $100,000.

(1) All contracting officers and officers approving applications for Federal financial assistance involving a construction contract shall notify the Contract Compliance Officer or appropriate Deputy or Assistant as soon as practicable of the impending award of each nonexempt contract exceeding $100,000, the name and address of the prime contractor, anticipated time of performance, name and address of each known nonexempt subcontractor, whether the prime contractor and known nonexempt subcontractors have previously held any Government contracts or federally assisted construction contracts subject to Executive Orders Nos. 10925, 11114, or 11246, and whether the prime contractor has previously filed compliance reports required by Executive Orders Nos. 10925, 11114, or 11246, or by regulations of the Equal Employment Opportunity Commission issued pursuant to Title VII of the Civil Rights Act of 1964.

(2) The Contract Compliance Officer or appropriate Deputy or Assistant shall review the available information relative to the prospective prime contractor's equal opportunity compliance status and notify the contracting officer or approving officer of equal opportunity clearance or of any deficiencies found to exist. A copy of any written report shall be forwarded to the Director.

(3) Contracting officers or approving officers shall: (i) Notify the bidder, offeror, or applicant of any deficiencies found to exist by the Contract Compliance Officer (or appropriate Deputy or Assistant), and (ii) direct any bidder, offeror, or applicant so notified to negotiate with the Contract Compliance Officer (or appropriate Deputy or Assistant), and to take such actions as he may require.

(4) The award of any such contract shall be conditioned upon the Contract Compliance Officer's (or appropriate Deputy's or Assistant's) nctification to the contracting officer or approving officer that the bidder, offeror, or applicant has taken action or has agreed to take action satisfactory to the Contract Compliance Officer (or appropriate Deputy or Assistant), or the TVA Board as provided in the regulations in this part. Any such agreement to take action shall be stated in the contract, if the Contract Compliance Officer (or appropriate Deputy or Assistant) so requires.

§ 303.6-2 Educational responsibility.

(a) Contracting officers and other personnel concerned with procurement are apprised of their responsibilities for obtaining compliance with the equal opportunity clause.

(b) TVA publicizes the equal opportunity policy to prospective bidders and contractors, and makes available to contractors information concerning their responsibilities under the clause.

§ 303.6-3 Notices to be posted.

Unless alternative notices are prescribed by the Director, or by TVA with the approval of the Director, prime contractors and subcontractors shall post the notice entitled "Equal Employment Opportunity Is The