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bor may, when he deems that of the Secretary of Labor and the special circumstances in the na

Contracting Agencies tional interest so require, exempt SEC. 205. Each contracting a contracting agency from the agency shall be primarily responrequirement of including any or

sible for obtaining compliance all of the provisions of Section with the rules, regulations, and 202 of this Order in any specific orders of the Secretary of Labor contract, subcontract, or purchase with respect to contracts entered order. The Secretary of Labor

into the Secretary of Labor with may, by rule or regulation, also respect to contracts entered into

by such agency or its contractors. exempt certain classes of con

All contracting agencies shall tracts, subcontracts, or purchase comply with the rules of the Secorders (1) whenever work is to retary of Labor in discharging be or has been performed outside their primary responsibility for the United States and no recruit securing compliance with the proment of workers within the limits visions of contracts and otherwise of the United States is involved; with the terms of this Order and (2) for standard commercial of the rules, regulations, and orsupplies or raw materials; (3)

ders of the Secretary of Labor involving less than

issued pursuant to this Order. specified

They are directed to cooperate amounts of money or specified

with the Secretary of Labor and numbers of workers; or (4) to

to furnish the Secretary of Labor the extent that they involve sub

such information and assistance contracts below a specified tier.

as he may require in the performThe Secretary of Labor may also ance of his functions under this provide, by rule, regulation, or Order. They are further directed order, for the exemption of facili- to appoint or designate, from ties of a contractor which are in among the agency's personnel, all respects separate and distinct compliance officers. It shall be the from activities of the contractor duty of such officers to seek related to the performance of the compliance with the objectives of

this Order by conference, conciliacontract: Provided, That such an

tion, mediation, or persuasion. exemption will not interfere with

SEC. 206 (a) The Secretary or impede the effectuation of the

of Labor may investigate the empurposes of the Order: And pro- ployment practices of any Governvided further, That in the absencement contractor or subcontractor, , of such an exemption all facilities initiate such investigation shall be covered by the provisions by the appropriate contracting of this Order.

agency, to determine whether or


not the contractual provisions ment Opportunity Commission, specified in Section 202 of this the Department of Justice, or Order have been violated. Such other appropriate Federal ageninvestigation shall be conducted cies whenever it has reason to bein accordance with the procedures lieve that the practices of any established by the Secretary of such labor organization or agency Labor and the investigating violate Title VI or Title VII of agency shall report to the Secre- the Civil Rights Act of 1964 or tary of Labor any action taken other provision of Federal law. or recommended.

SEC. 208. (8) The Secretary of (b) The Secretary of Labor Labor, or any agency, officer, or may receive and investigate or employee in the executive branch cause to be investigated com- of the Government designated by plaints by employees or prospec- rule, regulation, or order of the tive employees of a Government Secretary, may hold such hearcontractor or subcontractor which ings, public or private, as the Secallege discrimination contrary to retary may deem advisable for the contractual provisions speci- compliance, enforcement, or edufied in Section 202 of this Order. cational purposes. If this investigation is conducted (b) The Secretary of Labor for the Secretary of Labor by a may hold, or cause to be held, contracting agency, that agency hearings in accordance with Subshall report to the Secretary what section (a) of this Section prior action has ben taken or is recom- to imposing, ordering, or recommended with regard to such com- mending the imposition of penalplaints.

ties and sanctions under this OrSEC. 207. The Secretary of

der. No order for debarment of Labor shall use his best efforts, any contractor from further Govdirectly and through contracting

ernment contracts under Section agencies, other interested Federal, 209(a) (6) shall be made without

) State, and local agencies, contrac- affording the contractor an opportors, and all other available in- tunity for a hearing. strumentalities to cause any labor union engaged in work under Subpart DSanctions and Government contracts


any agency referring workers or pro- SEC. 209. (a) In accordance viding or supervising apprentice- with such rules, regulations, or ship or training for or in the orders as the Secretary of Labor course of such work to cooperate may issue or adopt, the Secretary in the implementation of the pur- or the appropriate contracting poses of this Order. The Secretary agency may; of Labor shall, in appropriate (1) Publish, or cause to be pubcases, notify the Equal Employ- lished, the names of contractors



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have complied or have failed to cancelled, terminated, or comply with the provisions of this pended absolutely or continuance Order or of the rules, regulations, of contracts may be conditioned and orders of the Secretary of upon a program for future comLabor.

pliance approved by the contract(2) Recommend to the Depart- ing agency. ment of Justice that, in cases in (6) Provide that any contractwhich there is substantial or ma- ing agency shall refrain from enterial violation or the threat of tering into further contracts, or substantial or material violation extensions or other modifications of the contractual provisions set of existing contracts, with any forth in Section 202 of this Or- noncomplying contractor, until der, appropriate proceedings be such contractor has satisfied the brought to enforce those provi- Secretary of Labor that such consions, including the enjoining, tractor has established and will within the limitations of appli- carry out personnel and employcable law, of organizations, indi- ment policies in compliance with viduals, or groups who prevent the provisions of this Order. directly or indirectly, or seek to (b) Under rules and regulaprevent directly or indirectly, tions prescribed by the Secretary compliance with the provisions of of Labor, each contracting agency this Order.

shall make reasonable efforts (3) Recommend to the Equal within a reasonable time limitaEmployment Opportunity Com- tion to secure compliance with the mission or the Department of Jus- contract provisions of this Order tice that appropriate proceedings by methods of conference, concilbe instituted under Title VII of iation, mediation, and persuasion the Civil Rights Act of 1964. before proceedings shall be insti(4) Recommend to the Depart

tuted under Subsection (a) (2) of ment of Justice that criminal pro- this Section, or before a contract ceedings be brought for the fur- shall be cancelled or terminated in nishing of false information to whole or in part under Subsection any contracting agency or to the (a) (5) of this Section for failure Secretary of Labor as the case

of a contractor or subcontractor
to comply with the contract pro-

visions of this Order.
(5) Cancel, terminate, suspend,
or cause to be cancelled, termi- SEC. 210. Any contracting
nated, or suspended, any contract, agency taking any action author-
or any portion or portions there ized by this Subpart, whether on
of, for failure of the contractor or its own motion, or as directed by
subcontractor to comply with the the Secretary of Labor, or under
nondiscrimination provisions of the rules and regulations of the

may be.

Secretary, shall promptly notify Subpart E-Certificates of Merit the Secretary of such action.

SEC. 213. The Secretary of LaWhenever the Secretary of Labor makes a determination under this

bor may provide for issuance of

a United States Government CerSection, he shall promptly no

tificate of Merit to employers or tify the appropriate contracting

labor unions, or other agencies agency of the action


which are or may hereafter be enmended. The agency shall take such action and shall report the gaged in work under Government results thereof to the Secretary of contracts, if the Secretary is sat

isfied that the personnel and emLabor within such time as the

ployment practices of the emSecretary shall specify.

ployer, or that the personnel, SEC. 211. If the Secretary shall training, apprenticeship, memberso direct, contracting agencies ship, grievance and representashall not enter into contracts with tion, upgrading, and other pracany bidder or prospective con- tices and policies of the labor tractor unless the bidder or pros- union or other agency conform to pective contractor has satisfacto- the purposes and provisions of rily complied with the provisions

this Order. of this Order or submits a pro- SEC. 214. Any Certificate of gram for compliance acceptable to Merit may at any time be susthe Secretary of Labor or, if the pended or revoked by the SecreSecretary so authorizes, to the tary of Labor if the holder therecontracting agency.

of, in the judgment of the SecreSEC. 212. Whenever a contract

tary, has failed to comply with the

provisions of this Order. ing agency cancels or terminates a contract, or whenever a con

SEC. 215. The Secretary of Latractor has been debarred from

bor may provide for the exempfurther Government contracts,

tion of any employer, labor union, under Section 209 (a) (6) be

or other agency from any report

ing requirements imposed under cause of noncompliance with the

or pursuant to this Order if such contract provisions with regard to

employer, labor union, or other nondiscrimination, the Secretary

agency has been awarded a Cerof Labor, or the contracting tificate of Merit which has not agency involved, shall promptly been suspended or revoked. notify the Comptroller General of the United States. Any such de- PART III—Nondiscrimination barment may be rescinded by the

Provisions in Federally As

sisted Construction Contracts Secretary of Labor or by the contracting agency which imposed SEC. 301. Each executive dethe sanction.

partment and agency which ad


Federal financial assistance shall ministering department or agency require as a condition for the ap- and to the Secretary of Labor proval of any grant, contract, such information as they may reloan, insurance, guarantee quire for the supervision of such thereunder, which may involve a compliance, (3) to carry out sancconstruction contract, that the ap- tions and penalties for violation of plicant for Federal assistance un- such obligations imposed upon dertake and agree to incorporate, contractors and subcontractors by or cause to be incorporated, into the Secretary of Labor or the adall construction contracts paid for ministering department or agency in whole or in part with funds pursuant to Part II, Subpart D, of obtained from the Federal Gov- this Order, and (4) to refrain ernment or borrowed on the credit from entering into any contract of the Federal Government pur subject to this Order, or extension suant to such grant, contract, or other modification of such a loan, insurance, or guarantee, or contract with a contractor deundertaken pursuant to any Fed- barred from Government coneral program involving such tracts under Part II, Subpart D, grant, contract, loan, insurance, of this Order. or guarantee, the provisions pre

SEC. 302. (a) "Construction scribed for Government contracts

contract" as used in this Order by Section 203 of this Order or

means any contract for the consuch modification thereof, pre- struction, rehabilitation, alteraserving in substance the contract

tion, conversion, extension, or reor's obligations thereunder, as

pair of buildings, highways, or may be approved by the Secretary other improvements to real propof Labor, together with such ad

erty. ditional provisions as the Secre

(b) The provisions of Part II tary deems appropriate to estab

of this Order shall apply to such lish and protect the interest of the

construction contracts, and for United States in the enforcement

purposes of such application the of those obligations. Each such

administering department or applicant shall also undertake and

agency shall be considered the agree (1) to assist and cooperate contracting agency referred to actively with the administering

therein. department or agency and the Secretary of Labor in obtaining used in this Order means an ap

(c) The term "applicant” as the compliance of contractors and

plicant for Federal assistance or, subcontractors with those con

as determined by agency regulatract provisions and with the tion, other program participant, rules, regulations, and relevant with respect to whom an applicaorders of the Secretary, (2) to tion for any grant, contract, loan,

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