(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)).

§ 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.

(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

Law," as provided by the notice posting requirements of the equal opportunity clause.

§ 303.6-4 Reports and other required information.

(a) Requirements for prime contractors and subcontractors. (1) TVA requires each prime contractor and each prime contractor and subcontractor shall cause its subcontractors to file annually, on or before March 31, complete and accurate reports on Standard Form 100 (EEO-1) promulgated jointly by the Office of Federal Contract Compliance, the Equal Employment Opportunity Commission, and Plans for Progress, or on such form as may hereafter be promulgated in its place, if such prime contractor or subcontractor (i) is not exempt from the provisions of this section in accordance with § 303.5; (ii) has 50 or more employees; (iii) is a prime contractor or first-tier subcontractor; and (iv) has a contract, subcontract, or purchase order amounting to $50,000, or more, or serves as a depository of Government funds in any amount, or is a financial institution which is an issuing and paying agent for U.S. savings bonds and savings notes: Provided, That any subcontractor below the first tier which performs construction work at the site of construction shall be required to file such a report if it meets the requirements in subdivisions (i), (ii), and (iv) of this paragraph (a)(1).

(2) Each person required by subparagraph (1) of this paragraph to submit reports shall file such a report with TVA within 30 days after the award to him of a contract or subcontract, unless such person has submitted such a report within 12 months preceding the date of the award. Subsequent reports shall be submitted annually in accordance with subparagraph (1) of this paragraph, or at such other intervals as TVA or the Director may require. TVA with the approval of the Director, may extend the time for filing any report.

(3) The Director, TVA or the applicant, on their own motions, may require a prime contractor to keep employment or other records and to furnish, in the form requested, within

reasonable limits, such information as the Director, TVA, or the applicant deems necessary for the administration of the order.

(4) The failure to file timely, complete, and accurate reports, as required, constitutes noncompliance

with the prime contractor's or subcontractor's obligations under the equal opportunity clause and is a ground for the imposition by TVA, the Director, an applicant, prime contractor or subcontractor, of any sanctions authorized by the order and the regulations in this part. Any such failure which TVA is unable to correct shall be reported in writing to the Director by TVA as soon as practicable after it

occurs.

(b) Requirements for bidders or prospective contractors. (1) TVA requires each bidder or prospective prime contractor and proposed subcontractor, where appropriate, to state in the bid or at the outset of negotiations for the contract whether it has participated in any previous contract or subcontract subject to the equal opportunity clause; and, if so, whether it has filed with the Joint Reporting Committee, the Director, an agency, or the former President's Committee on Equal Employment Opportunity, all reports due under the applicable filing requirements. The statement shall be in the form of a representation by the bidder or offeror substantially as follows:

The bidder represents that he:

1. Has participated in a previous contract or subcontract subject to the equal opportunity clause in form TVA 9923 or the almost identical equal opportunity clauses previously required under Executive Orders 10925 and 11114: Yes

No

2. Has filed Employer Information Report EEO-1 (Standard Form 100) with the Joint Reporting Committee within the past 12 months: Yes -- No

3. Has filed other equal oportunity compliance reports with Government contracting agencies as required by such agencies: Yes - No

4. Will obtain representations indicating submission of required compliance reports, signed by each proposed subcontractor, before awarding each subcontract of $10,000 or more: Yes No

Where a bidder or offeror fails to execute the representation, the omission shall be considered a minor informal

ity and the bidder or offeror shall be permitted to satisfy the requirement prior to award.

(2) In any case in which a bidder or prospective prime contractor or proposed subcontractor, which participated in a previous contract or subcontract subject to Executive Orders Nos. 10925, 11114, or 11246, has not filed a report due under the applicable filing requirements, no contract or subcontract shall be awarded, unless such contractor submits a report covering the delinquent period or such other period specified by TVA or the Director.

(3) A bidder or prospective prime contractor or proposed subcontractor shall be required to submit such information as TVA or the Director requests prior to the award of the contract or subcontract. When a determination has been made to award the contract or subcontract to a specific contractor, such contractor shall be required, prior to award, or after the award, or both, to furnish such other information as TVA, the applicant, or the Director requests.

(c) Use of reports. Reports filed pursuant to § 303.6-4 shall be used only in connection with the administration of the order, the Civil Rights Act of 1964, or in furtherance of the purposes of the order and said Act.

§ 303.6-5 Compliance reviews.

(a) The purpose of a compliance review is to determine if the prime contractor or subcontractor maintains nondiscriminatory hiring and employment practices and is taking affirmative action to ensure that applicants are employed and that employees are placed, trained, upgraded, promoted, and otherwise treated during employment without regard to race, color, religion, sex, or national origin. It consists of a comprehensive analysis and evaluation of each aspect of the aforementioned practices, policies, and conditions resulting therefrom. Where necessary, recommendations for appropriate sanctions shall be made.

(b) Where deficiencies are found to exist, reasonable efforts shall be made to secure compliance through conciliation and persuasion. Before the con

tractor can be found to be in compliance with the order, he must make a specific commitment, in writing, to correct any such deficiencies. The commitment must include the precise action to be taken and dates for completion. The time period allotted shall be no longer than the minimum period necessary to effect such changes. Upon approval of such commitment by the Contract Compliance Officer, appropriate Deputy or Assistant, or the TVA Board, the contractor may be considered in compliance, on condition that the commitments are faithfully kept. The contractor shall be notified that making such commitments does not preclude future determinations of noncompliance based on a finding that the commitments are not sufficient to achieve compliance.

(c) When TVA is the compliance agency it has the primary responsibility for the conduct of compliance reviews. TVA regularly conducts compliance reviews in accordance with the Director's guidelines, and also conducts compliance reviews in accordance with any special requests or instructions of the Director. Compliance reviews may also be conducted by the Director. Whenever possible compliance reviews are conducted by qualified specialists regularly involved in equal opportunity programs.

(d) Before the award of any formally advertised supply contract which may result in an award of $1 million or more, a preaward compliance review of the prospective contractor and his known first-tier subcontractors which will be awarded subcontracts of $1 million or more must be conducted by the compliance agency within 6 months prior to the award of the contract. Where a previous compliance review has been made within 6 months of the expected date of award or where the contractor has been submitting adequate special compliance reports to TVA following a compliance review made more than 6 months before the expected date of award, an additional full compliance review usually will not be needed to determine eligiblity. If an agency other than the awarding agency is the compliance agency, the awarding agency shall notify the com

pliance agency and request appropriate action and finding in accordance with this paragraph (d). Whenever possible compliance agencies provide awarding agencies with written reports of compliance reviews within 30 days following the requests. In order to qualify for the award of a contract, a contractor and such first-tier subcontractors must be found on the basis of such review to be able to comply with the equal opportunity clause or carry out an acceptable program for compliance as provided in paragraph (b) of § 303.6-5 (see § 303.4-9 regarding the notice required to be included in formally advertised supply contracts which may result in awards of $1 million or more).

(e) Before award of any formally advertised construction or installation contract which will amount to $1 million or more, a preaward conference is held with the prospective contractor to determine whether he and his known subcontractors are able to comply with the provisions of the equal opportunity clause and carry out an affirmative action program. OFCC's area coordinator is included in the conference if he is available. The contractor must submit an acceptable written affirmative action compliance program in order to be eligible for award.

§ 303.6-6 Complaints.

(a) Any employee of any contractor or applicant for employment with such contractor may, by himself or by an authorized representative, file in writing a complaint of alleged discrimination in violation of the equal opportunity clause. Such complaint is to be filed not later than 180 days from the date of the alleged discrimination, unless the time for filing is extended by TVA or the Director upon good cause shown.

(b) Complaints may be filed with TVA or with the Director. Those filed with the Director may be referred to TVA for processing, or they may be processed in accordance with § 303.6-8.

(c) Complaints will be required to be signed by the complainants or their authorized representatives and to contain the following information:

(1) Name and address (including telephone number) of the complainant;

(2) Name and address of the contractor or subcontractor who committed the alleged act of discrimination;

(3) A description of the act or acts considered to be discriminatory; and (4) Other pertinent information which will assist in the investigation and resolution of the complaint.

(d) Where a complaint contains incomplete information, TVA or the Director shall seek promptly the needed information from the complainant. In the event such information is not furnished to TVA or the Director within 60 days of the date of such request, the case may be closed.

§ 303.6-7 Processing of matters.

(a) Complaints. Where complaints are filed with TVA, the Contract Compliance Officer shall transmit a copy of the complaint to the Director within 10 days after receipt.

(b) Investigations. When TVA is the compliance agency it institutes a prompt investigation of each complaint filed with it or referred to it, and is responsible for developing a complete case record. A complete case record consists of the following:

(1) Name and address of each person interviewed;

(2) A summary of his statement; (3) Copies or summaries of pertinent documents; and

(4) A narrative summary of the evidence disclosed in the investigation as it relates to each violation revealed.

When a complaint is filed against a prime contractor or subcontractor who has contracts involving more than one agency, unless otherwise provided, the compliance agency shall conduct the investigation and make such findings and determinations as shall be appropriate for the administration of the order.

(c) Resolution of matters. (1) If the investigation of a complaint by TVA pursuant to paragraph (b) of § 303.6-7 shows no violation of the equal opportunity clause, TVA so informs the Director. The Director may review TVA's findings, and he may request further investigation by TVA or may under