WHEREAS it is the policy of the United States Government to encourage by affirmative action the elimination of discrimination because of race, creed, color, or national origin in employment on work involving Federal financial assistance, to the end that employment opportunities created by Federal funds shall be equally available to all qualified persons; and WHEREAS Executive Order No. 10925 of March 6, 1961, 26 F.R. 1977, reaffirmed the policy of requiring the inclusion of non-discrimination provisions in Government contracts and established the President's Committee on Equal Employment Opportunity to administer the program for obtaining adherence to and compliance with such provisions; and WHEREAS construction under programs of Federal grants, loans, and other forms of financial assistance to State and local governments and to private organizations creates substantial employment opportunities; and WHEREAS it is deemed desirable and appropriate to extend the existing program for nondiscrimination in employment in Government contracts established by Executive Order No. 10925 to include certain contracts for construction financed with assistance from the Federal Government; and WHEREAS it is also desirable to amend Executive Order No. 10925 in certain respects in order to clarify the authority of the President's Committee on Equal Employment Opportunity:
NOW, THEREFORE, #now-therefore
by virtue of the authority vested in me as President of the United States by the Constitution and statutes of the United States, it is ordered as follows: PART I--NON-DISCRIMINATION PROVISIONS IN FEDERALLY ASSISTED CONSTRUCTION CONTRACTS SECTION 101. Each executive department and agency which administers a program involving Federal financial assistance shall, insofar as it may be consistent with law, require as a condition for the approval of any grant, contract, loan, insurance or guarantee there under which may involve a construction contract that the applicant for Federal assistance undertake and agree to incorporate, or cause to be incorporated, into all construction contracts paid for in whole or in part with funds obtained from the Federal Government or borrowed on the Credit of the Federal Government pursuant to such grant, contract, loan, insurance or guarantee, or undertaken pursuant to any Federal program involving such grant, contract, loan, insurance or guarantee, the provisions prescribed for Government contracts by section 301 of Executive Order No. 10925 or such modification thereof, preserving in substance the contractor's obligations thereunder, as may be approved by the President's Committee on Equal Employment Opportunity (the "Committee"), together with such additional provisions as the Committee deems appropriate to establish and protect the interest of the United States in the enforcement of these obligations. Each such applicant shall also undertake and agree (i) to assist and cooperate actively with the administering department or agency and the Committee in obtaining the compliance of contractors and subcontractors with said contract provisions and with obtain and to furnish to the administering department or agency and the rules, regulations, and relevant orders of the Committee, (ii) to obtain and to furnish to the administering agency and to the Committee such information as they may require for the supervision of such compliance, (iii) to enforce the obligations of contractors and subcontractors under such provisions, rules, regulations, and orders, (iv) to carry out sanctions and penalties for violation of such obligations imposed upon contractors and subcontractors by the Committee or the administering department or agency pursuant to Part III, Subpart D, of Executive Order No. 10925, and (v) to refrain from entering into any contract subject to this order, or extension or other modification of such a contract with a contractor debarred from Government contracts under Part III, Subpart D, of Executive Order No. 10925. SEC. 102. (a) "Construction contract" as used herein means any contract for the construction, rehabilitation, alteration, conversion, extension, or repair of buildings, highways, or other improvements to real property. (b) The provisions of Part III of Executive Order No. 10925 shall apply to such construction contracts, and for purposes of such application the administering department or agency shall be considered the contracting agency referred to therein. (c) The term "applicant" as used herein means an applicant for Federal assistance or, as determined by agency regulation, other program participant, with respect to whom an application for any grant, contract, loan, insurance or guarantee is not finally acted upon prior to the effective date of this part, and it includes such an applicant after he becomes a recipient of such Federal assistance. SEC. 103. (a) Each administering department and agency shall be primarily responsible for obtaining the compliance of such applicants with their undertakings hereunder and shall comply with the rules of the Committee in the discharge of this responsibility. Each administering department and agency is directed to cooperate with the Committee, and to furnish the Committee such information and assistance as it may require in the performance of its functions under this order. (b) In the event an applicant fails and refuses to comply with his undertakings, the administering department or agency may, and upon the recommendation of the Committee, shall take any or all of the following actions: (1) cancel, terminate, or suspend in whole or in part the agreement or contract with such applicant with respect to which the failure and refusal occurred; (2) refrain from extending any further assistance under any of its programs subject to this order until satisfactory assurance of future compliance has been received from such applicant; (3) refer the case to the Department of Justice for appropriate legal proceedings. (c) No action shall be taken with respect to an applicant pursuant to paragraph (1) or (2)of subsection (b) without notice and hearing before the administering department or agency or the Committee, in accordance with the rules and regulations of the Committee. SEC. 104. The Committee may, by rule, regulation, or order, exempt all or part of any program of an administering agency from the requirements of this order when it deems that special circumstances in the national interest so require. SEC. 105. The Committee shall adopt such rules and regulations and issue such orders as it deems necessary and appropriate to achieve the purposes of this order. PART II-- AMENDMENTS TO EXECUTIVE ORDER NO. 10925 SECTION 201. Section 301 of Executive Order No. 10925 of March 6, 1961, is amended to read: "SECTION 301. Except in contracts exempted in accordance with section 303 of this order, all Government contracting agencies shall include in every Government contract hereafter entered into the following provisions: 'During the performance of this contract, the contractor agrees as follows: ‘(1) The contractor will not discriminate against any employee or applicant for employment because of race, creed, color, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, creed, color, or national origin. Such action shall include, but not be limited, to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employee and applicants for employment, notices to be provided by the contracting officer setting forth the provisions of this non-discrimination clause. '(2) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, creed, color, or national origin. '(3) The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice, to be provided by the agency contracting officer, advising the said labor union or workers' representative of the contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. '(4) The contractor will comply with all provisions of Executive Order No. 10925 of March 6, 1961, as amended, and of the rules, regulations, and relevant orders of the President's Committee on Equal Employment Opportunity created thereby. '(5) The contractor will furnish all information and reports required by Executive Order No. 10925 of March 6, 1961, as amended, and by the rules, regulations, and orders of the said Committee, or pursuant thereto, and will permit access to his books, records, and accounts by the contracting agency and the Committee for purposes of investigation to ascertain compliance with such rules, regulations, and orders. '(6) In the event of the contractor's noncompliance with the non-discrimination clauses of this contract or with any of the said rules, regulations, or orders, this contract may be canceled, terminated, or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order No. 10925 of March 6, 1961, as amended, and such other sanctions may be imposed and remedies invoked as provided in the said Executive Order or by rule, regulation, or order of the President's Committee on Equal Employment Opportunity, or as otherwise provided by law. '(7) The contractor will include the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the President's Committee on Equal Employment Opportunity issued pursuant to section 303 of Executive Order No. 10925 of March 6, 1961, as amended, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the contracting agency may direct as a means of enforcing such provisions, including sanctions for noncompliance: Provided, however, that in the event the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the contracting agency, the contractor may request the United States to enter into such litigation to protect the interests of the United States.'" SEC. 202. Section 303 of Executive Order No. 10925 is amended to read: "The Committee may, when it deems that special circumstances in the national interest so require, exempt a contracting agency from the requirement of including any or all of the provisions of section 301 of this order in any specific contract, subcontract or purchase order. The Committee may, by rule or regulation, also exempt certain classes of contracts, subcontracts or purchase orders (a) 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; (b) for standard commercial supplies or raw materials; (c) involving less than specified amounts of money or specified numbers of workers; or (d) to the extent that they involve subcontracts below a specified tier. The Committee may also provide, by rule, regulation, or order, for the exemption of facilities of a contractor which are in all respects separate and distinct from activities of the contractor related to the performance of the contract, provided that such an exemption will not interfere with or impede the effectuation of the purposes of this order and provided that in the absence of such an exemption all such facilities shall be covered by the provisions of this order. " PART III--MISCELLANEOUS SECTION 301. The Secretary of Health, Education, and Welfare and the Administrator of the Housing and Home Finance Agency are designated members of the Committee. Each such member may designate an alternate to represent him in his absence. SEC. 302. Section 401 of Executive Order No. 10925 shall apply to the administering departments and agencies subject to this order. SEC. 303. Part I of this order shall become effective thirty days after the execution of this order. Parts II and III shall be effective immediately. JOHN F. KENNEDY
THE WHITE HOUSE, #signature
June 22, 1963
