of assistance to veterans in obtaining employment shall list all of their suitable employment openings with the appropriate office of the Federal-State Employment Service. They shall also furnish to the Secretary of Labor such reports and information as he may require in carrying out his responsibilities under Executive Order No. 11598.

$ 50.250.3 Required clause in Federal contracts and subcontracts.

(a) Except as hereinafter provided, in every contract made and entered into by an executive department, independent establishment, or other agency or instrumentality of the United States, or by any corporation all the stock of which is beneficially owned by the United States, the contracting officer shall cause to be inserted in the invitation or the specifications and in such contract, the following clause:

CONTRACTOR AND SUBCONTRACTOR LISTING REQUIREMENT

(1) The contractor agrees that all employment openings of the contractor which exist at the time of the execution of this contract and those which occur during the performance of this contract, including those not generated by the contract and including those occurring at an establishment of the contractor other than the one wherein the contract is being performed but excluding those of independently operated corporate affiliates, shall, to the maximum extent feasible, be offered for a listing at an appropriate local office of the State employment service system wherein the opening occurs and to provide such periodic reports to such local office regarding employment openings and hires as may be required: Provided, That this provision shall not apply to openings which the contractor fills from within the contractor's organization and that the listing of employment openings shall involve only the normal obligations which attach to the placing of job orders.

(2) The contractor agrees further to place the above provision in any subcontract directly under this contract.

(b) Federal executive departments and agencies may, with the prior approval of the Secretary of Labor, where necessary or appropriate, substitute a contract clause different from that prescribed in paragraph (a) of this section so long as such substitute clause is found by the Secretary of Labor to comply with section 2 of Executive Order No. 11598.

$50-250.4 Definitions.

As used in this part:

(a) "All employment openings" includes, but is not limited to, openings which occur in the following job categories: production and nonproduction; plant and office; laborers and mechanics; supervisory and nonsupervisory; professional and technical; and executive except those executives (1) who are compensated on a salary basis of not less than $500 per week and (2) whose sole duty consists of the management of the enterprise or recognized subdivision thereof including the direction of the work of other employees, the authority to hire and fire other employees, and the exercise of discretionary powers.

(b) "Appropriate office of the State employment service system" means any local office of the Federal-State national system of public employment offices operated by the State wherein the employment opening occurs, including the District of Columbia, Guam, Puerto Rico, and the Virgin Islands.

(c) "Openings which a contractor or subcontractor proposes to fill from within his own organization” means an employment opening for which no consideration will be given to persons outside of the contractor's organization (including any affiliates, subsidiaries, and parent companies) and includes any openings which the contractor or subcontractor proposes to fill from a regularly established "recall" or "rehire" list.

§ 50-250.5 Exclusions.

(a) The provisions of this part shall not apply to openings which a contractor or subcontractor proposes to fill from within his own organization.

(b) The contract clause required by § 50-250.3 is not required in any contract or subcontract which is for an amount less than $10,000 or which will generate less than 400 man-days of employment within the contractor's or subcontractor's organization, each man-day consisting of any day during which an employee performs more than 1 hour of work.

(c) Under the most compelling circumstances, such as situations where the needs of the Government cannot reasonably be otherwise supplied, a deviation from the provisions of this part may be made, subject to the approval of the

Secretary of Labor. Requests for any such deviations shall be addressed to the Secretary of Labor, U.S. Department of Labor, 14th and Constitution Avenue NW., Washington, DC 20210, and shall set forth the reasons for the request and any alternative course which the contracting agency proposes to follow.

(d) These provisions do not apply to the listing of employment openings which occur outside of the 50 States, the District of Columbia, Guam, Puerto Rico, and the Virgin Islands.

(e) Nothing in these provisions shall be construed in any way so as to impair bona fide Collective-Bargaining agreements.

$50-250.6 Infeasibility of listing.

Executive Order No. 11598 requires Government contractors and subcontractors to list all of their suitable employment openings to the maximum extent feasible. Feasibility, in this regard, shall be taken to mean that it is reasonably possible for the listings to be made. An example of an infeasible listing is where the listing of the employment opening would be contrary to national security. $50-250.7 Obligations attached to listings.

Listing of employment openings with the Employment Service system pursuant to the provisions of this part shall involve only the normal obligations which attach to the placing of job order and does not require the hiring of any job applicant referred by the Employment Service system.

$50-250.8 Records and reports.

(a) Contractors and subcontractors shall file periodic reports, at least monthly, with the appropriate office of the State employment service system which shall indicate the number of employment openings which existed during the reporting period, the number that were filled, and the number of veterans which were hired.

(b) Contractors and subcontractors shall maintain copies of such reports for one year.

$50-250.9 Obligations of executive departments and agencies.

(e) Executive departments and agencies shall issue amendments or additions to their procurement rules and regulations as may be necessary to conform those rules and regulations to the requirements of Executive Order No. 11598 and these regulations. Such amendments or additions shall be issued in consultation with the Secretary of Labor. Requests for consultation may be made to the Assistant Secretary for Manpower, U.S. Department of Labor, Washington, D.C. 20210. (b) Executive departments and agencies shall treat as a breach of contract any refusal by a contractor or subcontractor to comply with the requirements of this part.

$50-250.10 Effective date.

The provisions for contractor and subcontractor listings of suitable employment openings shall be effective as to solicitation for bids issued and to unsolicited proposals received after the effective date of this part, contracts and subcontracts entered into pursuant to such bids and proposals and such modifications, amendments, and supplemental agreements to existing contracts which are in the nature of new procurements and entered into subsequent to the effective date of this part.

Signed in Washington, D.C., this 22d of July 1971.

J. D. HODGSON,
Secretary of Labor.

[FR Doc. 71-10682 Filed 1-23-71; 9:45 am]

STATEMENT OF JOHN E. BECKMAN, MANAGER, WASHINGTON AREA OFFICE, CIVIL SERVICE COMMISSION, ACCOMPANIED BY LAVERNE LINNENKAMP, CONCENTRATED EMPLOYMENT PROGRAM REPRESENTATIVE, CIVIL SERVICE COMMISSION

The CHAIRMAN. Mr. John Beckman, Washington area office, U.S. Civil Service Commission.

Mr. Beckman, you have with you Mr. Laverne Linnenkamp, con

-centrated employment program representative of the Civil Service Commission.

Mr. Beckman?

Mr. BECKMAN. Mr. Chairman, I did file a statement for the record and I believe you have copies of it.

The CHAIRMAN. Yes, we do, Mr. Beckman, and your entire statement will be placed in the record.

Mr. BECKMAN. With your permission I will not read the statement unless you want it read.

What would be your pleasure in that?

The CHAIRMAN. If you could summarize or highlight it, it would be helpful.

Mr. BECKMAN. Well, the statement is very well stated but I will just state a few highlights and then we will welcome questions.

We, of course, welcome the opportunity to present our views on the employment problems of returning veterans here in the District. I have made some statistical items here.

For example, and for the record, veterans account for two-thirds of all of the male Federal workers nationwide.

We estimate, although our figures are not complete, that this percentage holds true in the Washington, D.C. area.

In other words, of all the male Federal employees in the Washington area we estimate about two-thirds of them are veterans.

At the higher levels, which I think is a significant point, taking our examination from grade nine through grade 15 and again considering male employees, we estimate from 65 to 70 percent of our hires at these levels are veterans.

They are not all Vietnam-era veterans, of course.

During the calendar year 1970, Federal agencies hired nationwide, on a full-time basis, 66,800 veterans and in this group roughly 32,000 Vietnam-era veterans.

Under our special veterans readjustment authority appointments, since that came into effect in April 1970, just under 10,000 have been hired under that authority.

This authority incidentally, was specifically designed to assist the Vietnam-era veterans who might have difficulty in qualifying in our regular competitive examinations.

The program is available to recently discharged veterans with not more than 14 years of education and does give an opportunity for conversion to full career status upon completion of their training programs. The agencies, when they hire a person under this authority, assumes the obligation of assuring that they receive the kind of training which will set them up for a specific skill within that agency. Our specific emphasis in the Commission in the Washington, D.C. area, is the counseling of returning Vietnam-era veterans.

We maintain three fully qualified personnel staffing specialists at the U.S. Veterans Assistance Center.

This has recently been strengthened and then we provide for overflow counseling at the job information center. The increase in the number of counselors which have taken place in the last 3 months has given us some excellent background for determining the problems of the veterans and what kind of opportunities we can get for them.

For example, the man at Veterans Assistance Center who handled this alone for sometime, before the problem became acute, who is Mr.

Neal Porter, now has time to go out and contact agencies and develop specific jobs.

Our activities there, I think, are keyed to trying to get veterans employed in the Federal service.

For example, in the last 3 months, we counseled at that Center over 1,000 veterans. We made, from that counseling, 408 specific referrals to specific vacancies and we were notified by the agencies that they hired 244 of them in the last 3 months.

We know that there have been many more hires but the agencies don't always report this.

In addition to this, we did provide counseling assistance to almost 2,000 in our job information center and we used that as an overflow when the situation at the U.S. Veterans Assistance Center, when too many people are there.

The CHAIRMAN. You have some people at the U.S. Veterans Assistance Center.

Mr. BECKMAN. We have three full-time personnel staffing specialists there all the time.

The CHAIRMAN. How long have they been on assignment there? Mr. BECKMAN. We had one until about 6 months ago, and then we provided three because the workload had begun to get heavy.

The CHAIRMAN. You found when you started with one and escalated it to three, the workload was sufficient to give more attention and more manpower to those problems.

Mr. BECKMAN. We could have six or seven, I think.

The CHAIRMAN. If you had more men there, you could advantageously utilize them at the Assistance Center?

Mr. BECKMAN. Yes; the only way we could provide for the overflow is to have them contact a job information center and come in there when there are too many of them at the Veteran's Assistance Center, but it is profitable to have three there full time and it would be profitable to have even more.

The CHAIRMAN. I wonder, and this is not for you to answer because it is a separate department but if you find your workload there has increased so much you had to triple, from one to three, your force and you could use more; I can't comprehend why the Department of Labor would take its personnel out of that Assistance Center? But that is without your province.

Let me ask you a question in point.

We have a pamphlet that was and is being distributed by the U.S. Civil Service Commission entitled "Opportunities for U.S. Servicemen and Veterans" and one section has a heading "Jobs for Veterans Only" and it says "Certain examinations are open only to preference eligibles as long as such applicants are available. Among these are custodans, guards, elevator operators, and messengers."

We had abundant testimony in the earlier hearings from a whole range of recently returned Vietnam veterans that the only jobs that they were steered toword, or the only ones even potentially available were in the very low GS ratings and would fall into this general description as is printed in the pamphlet of custodians, guards, or the

like.

Why such special emphasis on these lower ranking jobs and labeling them "Jobs for Veterans Only?"

Mr. BECKMAN. Mr. Chairman, I think I can respond to that in part.

Those four specific jobs, and it is in the fine print there, they happen to be in there because they were designated in the Veterans Preference Act of 1944, so we are identifying the four specific occupations that we are required by law to restrict to veterans in order to put our cards on the table and to be sure that we don't mislead nonveterans in filing for those jobs because they are specifically restricted to

veterans.

This does not mean, of course, that veterans do not have an opportunity in jobs which are not restricted to veterans when they do file in our competitive examinations and they do get opportunities in all of the other ones, but because of this piece of legislation those are specifically restricted to veterans.

Now, in terms of referring to low-level positions, yes, unfortunately this is true also. Many of the veterans coming from the service do lack the specific skills to take on higher grade jobs, just as many nonveterans do.

As a matter of fact, three quarters of all of our hires in the Federal service are grades five and below, so the vast bulk of positions in the Federal service are at these levels and these are the jobs that we have with any kind of reasonable abundance, to fill.

When we get above grade five they taper off very rapidly and they do require special skills.

So I think it is true. Now the Veterans Readjustment Authority, which we are operating under, is limited to grade five and below.

It does provide training, it requires that the agencies give the veterans training when they hire a grade five and below.

They hire them without competitive examination and they get the training, get converted and then they are free to move to higher skilled jobs. So we try to meet it that way, because we have to face "What do we have coming to us," people who are qualified at those grades, four's, five's, three's, and so on.

The CHAIRMAN. Mr. Beckman, I think that covers the areas I was immediately interested in and do you have anything else you wish to add from your prepared statement?

Mr. BECKMAN. Yes; this is really not from the prepared statement. I would like to add one thing and that is "What can we do, what can the Commission do, what can all of the organizations interested in veterans do to further help the situation to provide more jobs?

And I would like to mention some of our immediate plans in the Washington area office. I am confining this, you know, right to Washington. I am not a nationwide operator, but the area manager of Washington.

We plan to intensify our efforts to expand the cooperative work study program aimed at returning veterans enrolled in colleges and we are doing this. We are visiting the colleges and encouraging the colleges to set up work study programs and then to try to provide parttime work for the veteran so we can give him a combination of training and job skills at the same time.

This has been reasonably successful so far and we intend to do more of it.

We intend to, and are doing it, extend our job development efforts by using our personnel staffing specialists to go to agencies and develop probably more jobs for veterans entering the labor market, to encourage them to take manpower training programs and to develop