Subpart A-Preliminary Matters; Coniract Agreements; Compliance Repcrts

§ 60-1.1

Purpose and application.

The purpose of the regulations in this part is to achieve the aims of Part III of Executive Order 10925 for the promotion and insuring of equal opportunity for all qualified persons, without regard to race, color, creed, or national origin, employed or seeking employment on government contracts. The regulations apply to all contracting agencies and contractors and subcontractors who perform government contracts, or work in connection therewith to the extent set forth in this part. The rights and remedies of the government hereunder are not exclusive and do not affect rights and remedies provided elsewhere by law, regulation, or contract; neither do the regulations limit the exercise by the Committee of powers not herein specifically set forth but granted to it by the Order.

(a) "Committee" means the President's Committee on Equal Employment Opportunity.

(b) "Chairman" means the Chairman of the Committee.

(c) "Vice Chairman" means the Vice Chairman of the Committee.

(d) "Executive Vice Chairman" means the Executive Vice Chairman of the Ccmmittee.

(e) "Order" means Executive Order 10925 of March 6, 1961 (26 F.R. 1977).

(f) "Contract" means any binding legal relationship between the government and a contractor for supplies or services, including construction, or for the use of government property, in which the parties, respectively, do not stand in the relationship of employer and employee.

(g) "Contract modification" means any written alteration in the terms and conditions of a contract accomplished by bilateral action of the parties to the contract, including such bilateral actions as supplemental agreements and amendments.

(h) "Subcontract or purchase order" mean, respectively, any agreement made or purchase order executed by a prime contractor or a subcontractor where a material part of the supplies or services

covered by such agreement or purchase order is being obtained for use in the performance of a contract subject to the Order.

(i) "Prime contractor" means any contractor holding a contract with the government.

(j) "First-tier subcontractor" means any contractor holding a contract with a government prime contractor calling for supplies or services required for the performance of a government prime contract.

(k) "Contracting agency" means any department (including the Departments of the Army, the Navy, and the Air Force), agency and establishment in the executive branch of the government, including any wholly-owned government corporation, which enters into contracts.

(1) "Rules, regulations and relevant orders" of the Committee as used in paragraph 4 of the contract clause contained in section 301 of the Order mean rules, regulations and relevant orders issued pursuant to the Order and in effect at the time the particular contract or contract modification subject to the Order was entered into.

(m) "United States" as used herein shall include the Commonwealth of Puerto Rico, the Panama Canal Zone and the possessions of the United States.

(n) "Standard commercial supplies" means an article:

(1) Which in the normal course of business is customarily maintained in stock by the manufacturer or any dealer, distributor, or other commercial dealer for the marketing of such article; or

(2) Which is manufactured and sold by two or more persons for general commercial or industrial use or which is identical in every material respect with an article so manufactured and sold. [26 F.R. 6585, July 22, 1961, as amended at 26 F.R. 11974, Dec. 14, 1961] § 60-1.3

tions.

Contract agreements; exemp

(a) Requirements of the Order. Each contracting agency shall include in each of its contracts or contract modifications the nondiscrimination provisions of section 301 of the Order unless the contract is exempt in accordance with the provisions of paragraph (b) of this section. Each contractor or first-tier subcontractor shall include paragraphs 1 through 6 of the contract clauses con

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tained in section 301 of the Order in every subcontract or purchase order made in connection with the performance of the government contract, so that the provisions of section 301 will be binding upon each subcontractor or vendor, with whom the contractor or first-tier subcontractor deals. Such necessary modifications in language may be made as shall be appropriate to identify properly the parties and their undertakings. Subcontractors below the first-tier shall not be required to insert the nondiscrimination provisions of section 301 of the Order in any contract which they may make in connection with the performance of a government contract except upon special order of the contracting agency or the Executive Vice Chairman. Subcontracts or purchase orders may incorporate by reference the nondiscrimination provisions of section 301 of the Order.

(b) Exemptions—(1) Specific contracts, sub-contracts, or purchase orders. The Executive Vice Chairman may exempt a contracting agency from requiring the inclusion of the contract provisions set forth in section 301 of the Order in any specific contract, subcontract, or purchase order when he deems that special circumstances in the national interest so require. Exemptions may also be granted to groups or categories of contracts of the same type where it is impracticable to act upon each request individually, or group exemptions will contribute to convenience in the administration of the Order. Requests for such exemptions may be submitted in accordance with § 60-1.62.

(2) Transactions of $10,000 or under. Contracts, subcontracts, purchase orders, and other transactions not exceeding $10,000, other than government bills of lading, are exempt from the requirements of section 301 of the Order.

(3) Standard commercial supplies and raw materials. Contracts, subcontracts and purchase orders not exceeding $100,000 for standard commercial supplies or raw materials are exempt from the requirements of section 301 of the Order, except that the Executive Vice Chairman may from time to time by order provide that specified articles or raw materials shall be subject to the Executive Order and rules and regulations promulgated pursuant thereto, when he finds that the inclusion thereof is necessary or appropriate to achieve the purposes of

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the Order. Contracting officers shall not procure, or approve the procurement of, supplies in less than usual quantities in order to avoid application of the Order to any transaction which would normally be subject to its provisions.

(4) Government bills of lading. Government bills of lading in any amount are subject to the Order, and the nondiscrimination provisions may be incorporated therein by reference. When acting pursuant to such bills of lading, carriers shall be exempt from complying with paragraphs 3 through 7 of the contract clauses contained in section 301 of the Order unless otherwise specifically ordered by the contracting agency or the Executive Vice Chairman.

(5) Contracts outside the United States. Contracts, subcontracts, purchase orders and other transactions are exempt from the requirements of section 301 of the Order where work is to be or has been performed outside the United States and no recruitment of workers within the limits of the United States is involved. The provisions of section 301 of the Order shall nevertheless be applicable to the extent that work pursuant to such contracts is done within the limits of the United States.

(6) Sales contracts. Contracts and other transactions providing for the sale of Government real and personal property where no appreciable amount of work is involved are exempt from the requirements of section 301 of the Order. When

(7) Withdrawal of exemption. any contract or subcontract subject to the Order is of a class exempted under this section, the Executive Vice Chairman may withdraw the exemption for a specific contract or group of contracts when in his judgment such action is necessary or appropriate to achieve the purposes of the Order.

(8) Effect of exemption. Notwithstanding the inclusion in any contract of the provisions set forth in section 301 of the Order, the contractor shall be exempt from compliance therewith if the contract containing such provisions of the Order is exempt under any exemption contained in the rules, regulations and relevant orders issued by the Committee.

(9) Review of exemptions. The Executive Vice Chairman shall report periodically to the Committee for its review any exemptions of a specific con

tract or class of contracts granted pursuant to these rules and regulations. [26 F.R. 6585, July 22, 1961, as amended at 26 F.R. 11974, Dec. 14, 1961; 26 F.R. 12250, Dec. 22, 1961]

§ 60-1.4

Duties of contracting agency.

(a) General responsibility. The head of each contracting agency shall be primarily responsible for obtaining compliance with the contract provisions set forth in section 301 of the Order, the regulations in this part, and any orders of the Committee. Further, each contracting agency shall furnish the Committee such information and assistance as it may require in the performance of its functions under the Order.

(b) Contracts Compliance Officers and Deputy Contracts Compliance Officers; designation; duties. The head of each contracting agency shall appoint from among its personnel a Contracts Compliance Officer, who shall be subject to the immediate supervision of the head of the contracting agency for carrying out the responsibilities of the agency under this part. The head of the contracting agency or the Contracts Compliance Officer may also designate, when appropriate, Deputy Contracts Compliance Officers to assist the Contracts Compliance Officer in the performance of his duties. The name of each Contracts Compliance Officer and any Deputy Contracts Compliance Officers, their addresses, telephone numbers, and any changes made in their designation shall be furnished to the Executive Vice Chairman.

(c) Regulations. The head of each contracting agency may prescribe, subject to the prior approval of the Executive Vice Chairman, regulations not inconsistent with those in this part for the administration of the nondiscrimination provisions of Part III of the Order. Prior to receipt of the approval of the Executive Vice Chairman, as provided in this paragraph, current agency regulations relating to nondiscrimination in government procurement may be continued to the extent that they are not inconsistent with the regulations in this part and with Part III of the Order.

§ 60-1.5 Compliance reports.

(a) Requirements for contractors and subcontractors—(1) General. The contracting agency shall require each contractor having a contract containing the

provisions prescribed in section 301 of the Order to file, and each contractor shall cause each of its first-tier subcontractors not exempted by § 60-1.3 to file compliance reports in accordance with instructions attached to the official compliance report form. Such compliance reports shall be filed within 30 days after the award of the contract or at such other times as may be required by the form, or by order of the Executive Vice Chairman. Such forms may be obtained from the contracting agency or the prime contractor. Subsequent compliance reports shall be filed at such regular intervals as may be indicated upon the prescribed forms or at such other times as the Executive Vice Chairman may direct. Among other things, the forms shall provide that whenever the contractor or subcontractor has a collective bargaining agreement or other contract or understanding with a labor union or other representative of employees, information shall be furnished as to the labor union or other workers' representative's practices and policies affecting compliance, and in connection therewith, shall request the union or workers' representative for any necessary data within its possession. Where such information is within the exclusive possession of a labor union or other workers' representative and the labor union or other workers' representative shall fail or refuse to furnish such information, the contractor or subcontractor shall so certify in his report and shall set forth what efforts he has made to obtain such information. When such failure or refusal is certified to a contracting agency, it shall immediately advise the Executive Vice Chairman. The contracting agency, with the approval of the Executive Vice Chairman, may, in appropriate cases, extend the time for the filing of compliance reports.

(2) When required on other current contracts. Whenever a contractor or subcontractor is currently engaged in the performance of any part or all of another contract with any contracting agency subject to the Order and these regulations, and has filed, within a current reporting period, a compliance report covering the plants, facilities and activities which are involved in the performance of a new contract, the requirements of subparagraph (1) of this paragraph may be satisfied by the contractor or subcontractor filing a statement showing the date of filing of such re

port, the employer identification number under which filed, and the predominant interest agency at the time of the filing of such prior report (unless the contracting agency shall direct that more current compliance reports be filed).

(b) Requirements of bidders or prospective contractors-(1) Previous government contracts. Each contracting agency shall require any bidder or prospective contractor, or any of their proposed subcontractors, to state as an initial part of the bid or negotiations of the contract whether it has participated in any previous contract subject to the provisions of section 301 of the Order. The agency may, or upon the direction of the Executive Vice Chairman, shall require the submission of a compliance report by any bidder or prospective contractor prior to the award of the contract upon which the contractor has bid. When a determination has been made to award a contract to a specific contractor, such contractor may be required, prior to award, to furnish the contracting agency with the names of its proposed subcontractors and to furnish such information regarding the employment policies and practices of such subcontractors as the contracting agency may require.

(2) Union statement. Each contracting agency may as a part of the bid or negotiation of the contract, or upon the direction of the Executive Vice Chairman, shall, direct any bidder, proposed contractor, or any of their proposed subcontractors to file a statement in writing (signed by an authorized officer or agent of any labor union or other workers' representative with which the bidder or prospective contractor, or subcontractor, deals or has reason to believe he will deal in connection with performance of the proposed contract), together with supporting information, to the effect that the said labor union's or other workers' representative's practices and policies do not discriminate on the grounds of race, color, creed, or national origin, and that the labor union or other workers' representative either will affirmatively cooperate, within the limits of its legal and contractual authority, in the implementation of the policy and provisions of the Order or that it consents and agrees that recruitment, employment and the terms and conditions of employment under the proposed contract shall be in accordance with the purposes and provisions of the

Order. In the event the union or other workers' representative fails or refuses to execute such a statement, the bidder or prospective contractor shall so certify, and state what efforts have been made to secure such a statement. When such failure or refusal has been certified, the contracting agency shall immediately advise the Executive Vice Chairman. [26 F.R. 6585, July 22, 1961, as amended at 26 F.R. 11974, Dec. 14, 1961]

§ 60-1.6 Compliance by labor unions.

(a) The Executive Vice Chairman shall use his best efforts, directly and through contracting agencies, contractors, subcontractors, state and local officials, public and private agencies, and all other available instrumentalities, to cause any labor union, recruiting agency or other representative of workers who is or may be engaged in work under government contracts to cooperate with, and to comply in the implementation of the purposes of the regulations and the Order.

(b) In order to effectuate the purposes of paragraph (a) of this section, the Executive Vice Chairman may hold hearings, public or private, with respect to the practices and policies of any such labor organization.

(c) The Executive Vice Chairman may also notify any Federal, State, or local agency of his conclusions and recommendations with respect to any such labor organization which in his judgment has failed to cooperate with the Committee, contracting agencies, contractors, or subcontractors in carrying out the purposes of the regulations and the Order.

§ 60-1.7

Use of compliance reports. The contracting agency and the Committee shall use the compliance reports only in connection with the administration of the Order.

Subpart B-General Enforcement; Complaint Procedure

§ 60-1.20 Compliance review by the contracting agency.

(a) General. The purpose of compliance reviews shall be to ascertain the extent to which the Order is being implemented by the creation of equal employment opportunity for all qualified persons in accordance with the national policy. They are not intended to interfere with the responsibilities of em

ployers to determine the competence and qualifications of employees and applicants for employment. Both routine and special compliance reviews shall be conducted by the contracting agency to ascertain the extent to which contractors and subcontractors are complying with the Order, and to furnish information that may be useful to the contracting agency and the Committee in carrying out their functions under the Order. If the contractor has contracts with more than one contracting agency, the contracting agency having the predominant interest shall normally conduct compliance reviews. That contracting agency having the largest aggregate dollar value of contracts at the time of the filing of the most recent compliance report shall be deemed to have the predominant interest in any proceeding under this part.

(b) Routine compliance review. A routine compliance review consists of a general review of the practices of the contractor or subcontractor to ascertain compliance with the requirements of the Order. A routine compliance review shall be considered a normal part of contract administration.

(c) Special compliance review. A special compliance review consists of a comprehensive review of the employment practices of the contractor or subcontractor with respect to the requirements of the Order. Special compliance reviews shall be conducted by the Executive Vice Chairman; or the contracting agency (1) from time to time, (2) when special circumstances, including complaints which are processed under § 60-1.24, warrant, or (3) when requested by the Executive Vice Chairman. The contracting agency shall report the results of any special compliance review to the Executive Vice Chairman.