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 an agency pursuant to paragraph (b) of this § 1-12.805-7 shows no violation of the Equal Opportunity clause, the agency shall so inform the Director. The Director may review the findings of the agency, and he may request further investigation by the agency or may undertake such investigation as he may deem appropriate.

(2) If any complaint investigation or complaince review indicates a violation of the Equal Opportunity clause, the matter should be resolved by informal means whenever possible. Such informal means may include the holding of a compliance conference by the agency. Each prime contractor and subcontractor shall be advised that the resolution is subject to review by the Director and may be disapproved if he determines that such resolution is not sufficient to achieve compliance. (3) Hearings shall be conducted in connection with the processing of matters in accordance with the provisions of § 1-12.807.

(4) For reasonable cause shown, the Director or an agency head may reconsider or cause to be reconsidered any matter on his own motion or pursuant to a request.

(d) Reports to the Director. (1) Within 60 days from receipt of a complaint by the agency, or within such additional time as may be allowed by the Director for good cause shown, the agency or the compliance agency shall process the complaint and submit to the Director the case record and a summary report containing the following information:

(i) Name and address of the complainant;

(ii) Brief summary of findings, including a statement as to the agency's conclusions regarding the contractor's compliance or noncompliance with the requirements of the Equal Opportunity clause; and

(iii) A statement of the disposition of the case, including any corrective action taken and any sanctions or penalties imposed or, whenever appropriate, the recommended corrective action and sanctions or penalties.

(2) A written report of every preaward compliance review required by this Subpart 1-12.8 or otherwise required by the Director, including findings, shall be forwarded to the Director within 10 days after the award for a postaward review.

(3) A written report of every other compliance review or any other matter processed by the agency involving an apparent violation of the Equal Opportunity clause shall be submitted to the Director. Such report shall contain a brief summary of the findings, including a statement of conclusions regarding the contractor's compliance or noncompliance with the requirements of the Order, and a statement of the disposition of the case, including any corrective action taken or recommended, and any sanctions or penalties imposed or recommended.

§ 1-12.805-8 Assumption of jurisdiction by or referrals to the Director.

The Director may inquire into the status of any matter pending before an agency or a compliance agency, including complaints and matters arising out of reports, reviews, and other investigations. Where he considers it necessary or appropriate to the achievement of the purposes of the Order, he may assume jurisdiction over the matter and proceed as provided herein. Whenever the Director assumes jurisdiction over any matter, or an agency refers any matter, he may conduct, or have conducted, such investigations, hold such hearings, make such findings, issue such recommendations and directives, order such sanctions and penalties, and take such other action as may be necessary or appropriate to achieve the purposes of the Order. The Director shall promptly notify the agency of any corrective action to be taken or any sanctions to be taken or any sanction to be imposed by the agency. The agency shall take such action, and report the results thereof to the Director within the time specified.

§ 1-12.805-9 Sanctions and penalties.

(a) General. (1) In every case where any complaint investigation or compliance review indicates the existence of a violation of the Equal Opportunity clause, the matter should be resolved by informal means, including conference, conciliation, mediation, and persuasion, whenever possible. This will also include, where appropriate, establishing a program for future compliance approved by the head of the agency. Where the apparent violation is not resolved by informal means, the agency shall afford the contractor or subcontractor an opportunity for a hearing (see § 1-12.807). If a prime contractor or subcontractor, without a hearing, has complied with the recommendations or orders of an agency or the Director and believes such orders or recommendations to be erroneous, he shall, upon filing a request therefor within 10 days of such compliance, be accorded an opportunity for a hearing and review as provided in § 1-12.807.

(2) The sanctions described in paragraphs (1), (5), and (6) of section 209(a) of the Order regarding the (i) publication of the names of contractors or unions, (ii) cancellation, termination, and suspension of contracts, and (iii) entering into contracts or extensions or modifications of contracts with noncomplying contractors may be exercised only by or with the approval of the Director.

(b) Termination. (1) A contract or subcontract may be canceled or terminated, in whole or in part, for failure to comply with the provisions of the Equal Opportunity clause. Whenever the Director or the head of the agency, or his designee, upon prior notification to the Director proposes to cancel or terminate, or cause to be canceled or terminated, in whole or in part, a contract or contracts, a notice of the proposed action, signed by the Director or head of the agency, or his designee, shall be sent to the last known address of the prime contractor or subcontractor, return receipt requested. A copy of such notice shall be sent to all agencies. The prime contractor or subcontractor shall be given at least 10 days from the receipt of the notice either to comply with the provisions of the contract or to mail a re

quest for a hearing to the Director, or the agency, as appropriate, under § 112.807. During the 10-day notice period, reasonable efforts shall continue to be made to secure compliance by conference, mediation, and persuasion.

(2) If at the end of the 10-day period no request for a hearing has been received, the Director or the head of the agency may cancel, suspend, or terminate, or cause to be canceled, suspended, or terminated, such contracts or subcontracts.

(c) Debarment. (1) A prime contractor or subcontractor may be debarred from receiving contracts for failure to comply with the provisions of the Equal Opportunity clause. Whenever the Director, or the head of an agency or his designee, upon prior notification to the Director, proposes to debar a prime contractor or subcontractor from further contracts or subcontracts under section 209 of the Order, a notice of the proposed action, in writing and signed by the Director or head of the agency or his designee, shall be sent to the last known address of the prime contractor or subcontractor, return receipt requested. A copy of such notice shall be sent to all agencies. The prime contractor or subcontractor shall be given at least 10 days from the receipt of such notice in which to mail a request for a hearing to the Director or the agency. During the 10-day notice period, reasonable efforts shall continue to be made to secure compliance by conference, mediation, and persuasion.

(2) If at the end of the 10-day period no request has been received, the Director or the head of the agency may enter an order debarring the contractor or subcontractor from further contracts, subcontracts, or extensions or other modifications of existing contracts, until such contractor or subcontractor shall have satisfied the Director that he has established and will carry out personnel and employment policies and practices in compliance with the provisions of the Equal Opportunity clause.

(d) Referrals. Referral of any matter arising under the Order to the Department of Justice or to the Equal Employment Opportunity Commission shall be made by the Director.

(e) Show cause notices. When the Director has reasonable cause to believe that a contractor has violated the Equal Opportunity clause he may issue a notice requiring the contractor to show cause, within 30 days, why monitoring, enforcement proceedings, or other appropriate action to ensure compliance should not be instituted.

§ 1-12.805-10 Disputed matters related to the equal opportunity program.

Disputes related to matters pertaining to the equal opportunity program shall be handled pursuant to the provisions of the Equal Opportunity clause in Government contracts, agreements, and subcontracts, rather than the Disputes clause contained therein. This relationship stems largely from the provision "except as otherwise provided in this contract" which appears in the standard Disputes clauses (see clauses 6 and 12 of Standard Forms 23-A and 32, respectively). The Equal Opportunity clause prescribed by § 1-12.803 does so "otherwise provide" in paragraph (d), which specifies that the contractor shall comply with the rules, regulations, and relevant orders of the Secretary of Labor. Those rules, regulations, and relevant orders prescribe particular procedures for handling disputed matters pertaining to the equal opportunity program (see 41 CFR ch. 60) which are implemented by §§ 1-12.805 and 112.807 (see also 41 CFR 60-1.1).

§ 1-12.805-11 Preaward notices.

(a) Preaward compliance reviews. Upon the request of the Director, agencies shall not enter into contracts or approve the entry into contracts or subcontracts with any bidder, prospective prime contractor, or proposed subcontractor named by the Director, until a preaward compliance review has been conducted and the Director or designated agency head or his designee has approved a determination that the bidder, prospective prime contractor, or proposed subcontractor will be able to comply with the provisions of the Equal Opportunity clause.

(b) Other special preaward procedures. Upon the request of the Director, agencies shall not enter into contracts or approve the entry into sub

contracts with any bidder, prospective prime contractor, or proposed subcontractor, specified by the Director until the agency has complied with the directions contained in the request.

§ 1-12.806 [Reserved]

§ 1-12.807 Hearings.

§ 1-12.807-1 General.

An opportunity for a formal hearing shall be afforded to a prime contractor or a subcontractor by the Director or by the agency where:

(a) An apparent violation of the Equal Opportunity clause by a contractor, as shown by any complaint investigation or compliance review, is not resolved by informal means and a hearing is requested pursuant to § 112.805-9(a).

(b) The prime contractor or subcontractor, without a hearing, shall have complied with the recommendations or orders of the agency, believes such recommendations or orders to be erroneous and requests a hearing and review pursuant to § 1-12.805-9(a).

(c) The Director or an agency proposes to cancel or terminate a contract or subcontract, in whole or in part, and a hearing is requested pursuant to § 1-12.805-9(b). The contract or subcontract may be suspended, in the discretion of the Director, during the pendency of the hearing.

(d) The Director or an agency proposes to debar the prime contractor or subcontractor and a hearing is requested pursuant to § 1-12.805-9(c). The contract or subcontract may be suspended, in the discretion of the Director, during the pendency of the hearing.

§ 1-12.807-2 Informal hearings.

(a) Purpose. The Director or any agency head, with the approval of the Director, may convene such informal hearings as may be deemed appropriate for the purpose of inquiring into the status of compliance by any prime contractor or subcontractor with the terms of the Equal Opportunity clause.

(b) Notice. Contractors and subcontractors shall be advised in writing as to the time and place of the informal

hearing and may be directed to bring specific documents and records, or furnish other relevant information concerning their compliance status. When so requested, the prime contractor or subcontractor shall attend and bring requested documents and records, or other requested information.

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(c) Conduct of hearings. The hearing shall be conducted by hearing officers appointed by the Director agency head. Parties to informal hearings may be represented by counsel and shall have a fair opportunity to present any relevant material. Formal rules of evidence will not apply to such proceedings.

§ 1-12.807-3 Formal hearings.

(a) General procedure. The Director or the agency head, with the approval of the Director, may convene formal hearings pursuant to this Subpart 112.8. Such hearings shall be conducted in accordance with procedures prescribed by the Director or the agency head. Reasonable notice of a hearing shall be sent by registered mail, return receipt requested, to the last known address of the prime contractor or subcontractor complained against. Such notice shall contain the following:

(1) The time and place of hearing; (2) A statement of the provisions of the Order and regulations pursuant to which the hearing is to be held; and

(3) A concise statement of the matters pursuant to which the action furnishing the basis of the hearing has been taken or is proposed to be taken. Copies of such notice shall be sent to all agencies. Hearings shall be held before a hearing officer designated by the Director or an agency head. Each party shall have the right to counsel, a fair opportunity to present evidence and argument, and to cross-examine. Whenever a formal hearing is based in whole or in part on matters subject to a collective bargaining agreement and compliance may necessitate a revision of such agreement, any labor organization which is a signatory to the agreement shall have the right to participate as a party. Any other person or organization shall be permitted to participate upon a showing that such person or organization has an interest

in the proceedings and may contribute materially to its proper disposition. The hearing officer shall make his proposed findings and conclusions upon the basis of the record before him.

(b) Suspension during pendency of hearing. Whenever the prime contractor or subcontractor requests a hearing in accordance with § 1-12.805-9(b) and (c), his contracts or subcontracts may be suspended, in the discretion of the Director, during the pendency of the hearing.

(c) Decision following hearing. When the hearing is conducted by an agency, the hearing officer shall make recommendations to the head of the agency who shall make a decision. No decision by the head of the agency, or his representatives, shall be final without the prior approval of the Director. When the hearing is conducted by a hearing officer appointed by the Director, the hearing officer shall make recommendations to the Director, who shali make the final decision. Parties shall be furnished with copies of the hearing officer's recommendations, and shall be given an opportunity to submit their views.

§ 1-12.808 Reinstatement of ineligible contractors or subcontractors.

Any prime contractor or subcontractor declared ineligible for further contracts or subcontracts under the Order may request reinstatement in a letter directed to the Director. In connection with the reinstatement proceedings, the prime contractor or subcontractor shall be required to show that he has established and will carry out employment policies and practices in compliance with the Equal Opportunity clause.

§ 1-12.809 Intimidation and interference.

The sanctions and penalties contained in Subpart D of the Order may be exercised by the agency or the Director against any prime contractor, subcontractor, or applicant who fails to take all necessary steps to ensure that no person intimidates, threatens, coerces, or discriminates against any individual for the purpose of interfering with the filing of a complaint, furnishing information, or assisting or

participating in any manner in an investigation, compliance review, hearing, or any other activity related to the administration of the Order or any other Federal, State, or local laws requiring equal employment opportunity.

§ 1-12.810 Affirmative action compliance programs.

(a) Requirements of programs. Each agency or applicant shall require each prime contractor who has 50 or more employees and a contract of $50,000 or more and each prime contractor and subcontractor shall require each subcontractor who has 50 or more employees and a subcontract of $50,000 or more to develop a written affirmative action compliance program for each of its establishments, unless the contract or subcontract is exempt (see § 1-12.804). A necessary prerequisite to the development of a satisfactory affirmative action compliance program is the identification and analysis of problem areas inherent in minority employment and an evaluation of opportunities for utilization of minority group personnel. The contractor programs shall provide in detail for specific steps to guarantee equal employment opportunity keyed to the problems and needs of members of minority groups, including, when there are deficiencies, the development of specific goals and timetables for the prompt achievement of full and equal employment opportunity. Each contractor shall include in his affirmative action compliance program a table of job classifications. This table should include, but need not be limited to, job titles, principal duties (and auxiliary duties, if any), rates of pay, and where more than one rate of pay applies (because of length of time in the job or other factors), the applicable rates. The affirmative action compliance program shall be signed by an executive official of the contractor.

(b) Utilization evaluation. The evaluation of utilization of minority group personnel shall include the following: (1) An analysis of minority group representation in all job categories;

(2) An analysis of hiring practices for the past year, including recruitment sources and testing, to determine

whether equal employment opportunity is being afforded in all job categories; and

(3) An analysis of upgrading, transfer, and promotion for the past year to determine whether equal employment opportunity is being afforded.

(c) Maintenance of programs. Within 120 days from the commencement of the contract, each contractor shall maintain a copy of separate affirmative action compliance programs for each establishment, including evaluations of utilization of minority group personnel and the job classification tables, at each local office responsible for the personnel matters of such establishment. An affirmative action compliance program shall be part of the manpower and training plans for each new establishment and shall be developed and made available prior to the staffing of such establishment. A report of the results of such program shall be compiled annually and the program shall be updated at that time. This information shall be made available to representatives of the agency or Director upon request and the contractor's affirmative action program and the result it produces shall be evaluated as part of the compliance review activities.

[33 FR 10715, July 27, 1968, as amended at 38 FR 28818, Oct. 17, 1973]

§ 1-12.811 Access to records of employment.

Each prime contractor and subcontractor shall permit access during normal business hours to his books, records, and accounts pertinent to compliance with the Order, and all rules and regulations promulgated pursuant thereto by the agency or the Director for purposes of investigation to ascertain compliance with the Equal Opportunity clause of the contract or subcontract. Information obtained in this manner shall be used only in connection with the administration of the Order, the administration of the Civil Rights Act of 1964, and in furtherance of the Order and that Act.

§ 1-12.812 Rulings and interpretations.

Rulings under or interpretations of the Order, the regulations of the Sec