Based upon this measurement system the Department issued figures in February 1975 indicating significant progress in minority hiring among Federal nonconstruction contractors. The report, based on a survey of 655 firms with total employment of approximately 300,000 workers, showed that positive results were being achieved. The percentage of new hires who were members of minority groups will hit 31.2 percent in this year's affirmative action goals, up from 26.4 percent a year ago. The minority group percentage of total employment in these firms increased from 14.3 percent to 15 percent between 1972-3 and 1973-4 and is expected to reach 17.1 percent under current goals.

In addition to the measurement based on coding sheet data, the Department is engaged in an ongoing program of impact analysis through its Office of Policy, Evaluation and Research and a working group of labor economists in academia. Indicative of this program, Technical Analysis Paper No. 1: Measuring the Effect of the Federal Government on the Change in the Labor Market Position of Black Male Workers Relative to White Male Workers: 1966 to 1970, (April 1973) found the black workers experience larger employment gains in firms covered by government contracts than in firms without government contracts and concluded that the integration of American industry was increased by the Federal Compliance effort.

MONITORING OF NONCONSTRUCTION PROGRAM

During FY 75 OFCC will have monitored agencies' nonconstruction programs in many different ways. Conduct of this oversight responsibility will include the performance of 260 desk audits, 26 joint compliance reviews, 11 on-site evaluation reviews and 25 on-site observation reviews. These reviews have been selected in a fashion to insure the best possible perspective on the capability and performance of the various compliance agencies. The overall level of the FY 75 monitoring activities represents a substantial increase over OFCC's monitoring activities in FY 74 and further increases are expected in FY 76.

The newly refined planning and budgeting system also has proved an effective monitoring tool and an indication of agency enforcement commitment. At the beginning of the budget cycle, OFCC forwards formal agency evaluation reports to the compliance agencies and requests that the agencies' program plans for the ensuing fiscal year contain work load targets and other measures for improv ing the agencies' compliance capabilities. A program plan is developed by each compliance agency and forwarded by the agency to the Director of OFCC for approval. If the program plan is deficient. OFCC will work out with the agency an acceptable modification. After OFCC's approval, the plan is placed into effect by the agency and monitored throughout this fiscal year. By reviewing the budgeting and enforcement plans of the compliance agencies, OFCC has identified possible areas of insufficiency within agency compliance programs and taken corrective action.

GUIDANCE TO COMPLIANCE AGENCIES

The reorganization of OFCC in 1974 established the compliance team structure which assigns specific responsibility for each compliance agency to trained compliance specialists within OFCC. This arrangement facilitates the process of policy interpretation and guidance to agencies on a day-to-day basis and by staff that is familiar both with agencies and with the particular industries for which they may have compliance responsibility.

GAO's concern relative to agency guidance is being addressed, in part, through the recently published proposal regulations of affected class identification and related remedies. The Department is now evaluating the comments received on these proposed regulations looking toward final regulations at the earliest possible date. In the meantime, it should be noted that guidance on affected class problems is being offered to agency compliance officers on a case-by-case basis.

In addition, in recent months, OFCC has issued guidelines on EEO requirements for religiously affiliated contractors, and, in coordination with other member agencies of the Equal Employment Opportunity Coordinating Conncil (EEOCC), is working to promulgate uniform testing and selection guidelines.

ESTABLISHMENT OF TRAINING PROGRAM

OFCC has made significant progress in the development of uniform training and technical assistance to the compliance agencies since the completion of

GAO's evaluation. The first eight chapters of the Federal Contract Compliance Handbook have been reviewed by the agencies and are being distributed to them. OFCC and ESA training personnel, with cooperation and contributions from the compliance agencies, are currently developing a compliance officer training program. A pilot program should commence by the second quarter of FY 76. Plans call for a substantial portion of the agency compliance officers to be trained by June 30, 1976.

REVIEW OF AAP'S

As stated in our prior response, OFCC's Technical Guidance Memorandumi No. 1 and the changes in Orders 4 and 14 will help to ensure that agencies will only approve AAP's meeting Departmental guidlines. OFCC is currently sampling approved AAP's in both the national and regional offices. By the end of FY 75 OFCC expects to have sampled 260 AAP's which represents a substantial increase over FY 74. Although it is neither feasible nor appropriate for OFCC to desk audit all agency approved AAP's, a priority selection system for helping OFCC to determine an appropriate sample of approved AAP's is currently being developed.

ENFORCEMENT

The asserted reluctance of some agencies to initiate procurement related sanction proceedings is also a major GAO concern. GAO asserts that agencies should rely less on protracted negotiation and conciliation and take more vigorous enforcement action against contractors found in noncompliance.

The OFCC program uses all available enforcement mechanisms including debarment; remedial orders through administrative hearings in lieu of immediate debarment; and court action for specific performance of the EEO clause, including requests for proper remedial relief.

OFCC is committed to a vigorous program of enforcement actions which relies on the selective use of both conciliation and the application of sanctions to achieve its objectives. In this context, sanctions, including contract cancellation, termination, suspensions, and debarments, should be learly distinguished from remedies. Thus, contractors usually avoid sanctions when the issues of noncompliance are raised by agreeing to provide appropriate EEO remedies designed to meet the deficiencies in their specific programs.

Thus, it should be clear that OFCC is emphasizing full utilization of all enforcement tools appropriate to the individual compliance cases. Revised Order 14, providing for uniform and comprehensive compliance reviews, has been instituted and the agencies instructed to insist on adherence to the regulations, guidelines, and related case law. For reasons stated above, however, increased enforcement activity does not automatically lead to increased use of sanctions. If such efforts are successful, (for example written conciliation agreements under Order 14 procedures) they may lead to fewer sanctions being imposed but greater compliance.

IDENTIFICATION OF CONTRACTORS

The problem of further identifying the universe of supply and service contractors is an OFCC priority. The current listing of over 92,000 contractors identifies the core group of regular government contractors. To augment this listing, OFCC is contracting with Dun and Bradstreet to produce a semi-annual listing of firms, subsidiaries, etc., covered by the Executive Order. The list will be further expanded by including contractor information from the EEO-1 list for selected industries (such as transportation and public utilities), which are not likely to appear on this list. In addition, the Dun and Bradstreet system will be used to reproduce universe estimates of the number of establishments and employees covered by OFCC's program within appropriate industry groupings.

It should be recognized, however, that compilation and maintenance of a universe of listed contractors is an extremely complex, costly, and time-consuming effort. The dynamic and highly decentralized nature of Federal contracting is such that total and fully up-to-date coverage at any point in time is a goal that can never be fully realized.

PREAWARD REVIEWS

OFCC is responding to GAO's recommendation that OFCC should sample preaward reviews. OFCC will review independent sources of notification of con

tract awards exceeding $1 million. On the basis of a sample of such awards, OFCC will follow up with the procurement and compliance agencies to be sure that the preaward reviews were requested and conducted.

COORDINATION WITH EEOC

As stated in the Department's previous response, a new Memorandum of Understanding between OFCC and EEOC was signed on September 11, 1974. A task force, made up of members from EEOC and OFCC, has drafted proposed implementing procedures which, when adopted, will provide for mutually compatible investigative procedures and compliance policies.

CONCLUSION

I trust that the foregoing response to the recommendations of the GAO report will serve to inform you and the Committee of the actions taken and underway by this Department to strengthen the administration of the nonconstruction EEO program. I trust, further, that we have been able to clarify some of the differences between the Department and GAO regarding the interpretation of how the program should be administered and assessed.

Please be assured the Department is and will continue to be fully committed to the vigorous and proper carrying out of its responsibilities for the attainment of the goal of full and equal employment opportunity.

Sincerely,

FRED G. CLARK,

Assistant Secretary for Administration and Management.

OVERSIGHT HEARINGS ON FEDERAL ENFORCEMENT OF EQUAL EMPLOYMENT OPPORTUNITY LAWS

Part 1

WEDNESDAY, JUNE 25, 1975

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON EQUAL OPPORTUNITIES

OF THE COMMITTEE ON EDUCATION AND LABOR,

Washington, D.C.

The subcommittee met at 9:30 a.m., pursuant to notice, in room 2261 (Rayburn House Office Building), Hon. Augustus F. Hawkins (chairman of the subcommittee) presiding.

Members present: Representatives Hawkins, Clay, and Buchanan. Staff members present: Susan D. Grayson, staff director; David C. Ruffin, legislative assistant; William Higgs, legislative assistant; Carole Schanzer, clerk; and Christopher T. Cross, minority legislative associate.

Mr. HAWKINS. The Subcommittee on Equal Opportunities is called to order. I will just read a brief opening statement.

I wish to thank Chairman Hampton, Commissioner Andolsek, and the members of the Civil Service Commission staff for being present at this hearing.

The purpose of this hearing is to examine the role of the Civil Service Commission in the enforcement of title VII of the Civil Rights Act of 1964 and the Equal Employment Opportunity Act of 1972. These pieces of legislation are rooted in one of the finest traditions of our democracy that of full citizen participation. They insure the right all Americans have an equal opportunity to participate in the mainstream of employment regardless of their race, color, religion, sex, or national origin. The Civil Service Commission has an essential role in the extension of this right.

The Equal Employment Opportunity Act of 1972 mandates to the Commission responsibility to eliminate discrimination in Federal employment through appropriate remedies. Heads of Federal agencies are required to comply with Civil Service Commission rules, regulations, orders, and instructions aimed at carrying out programs of affirmative action. These are to include programs that provide for the maximization of opportunity so that employees can reach their highest potential. The Commission was authorized to take aggressive measures to carry out its responsibilities.

In the 3 years since the Equal Employment Opportunity Act was passed, we find that employment gains for minorities and women are minimal. About 341,000 women, approximately 25 percent of all white( 163 )

collar employees and about 116,000 minorities or one-half of all minority white-collar employees are in 17 low-paying occupations. These include clerk-typist, secretary, nursing assistant, and guards. However, in the professional occupations, minorities and women are very poorly represented. While minorities have come under heavy investigation in recent years by Federal agents, they number only 902 or 4.6 percent of the 19,501 criminal investigators. While all wage earners pay taxes, minorities and women represent only 7.2 percent and 6.3 percent respectively of the 14,677 Internal Revenue agents that collect those taxes. Minorities occupy only 17 managerial positions in the entire Federal Government.

These figures do not represent full participation in Federal employment. They do not indicate that minorities and women have an equal opportunity to achieve their highest potential in Government jobs.

If equal employment opportunity is to work in this country, the U.S. Government must take the lead by creating a representative bureaucracy in all occupations, at all levels, and in all agencies.

This hearing is only the beginning of a continuing effort by this subcommittee to oversee the Civil Service Commission's progress toward reaching a truly representative bureaucracy.

At this time, I would like to call on the other members of the subcommittee who may wish to make a statement. Mr. Buchanan.

Mr. BUCHANAN. I would simply join in welcoming Chairman Hampton and the other witnesses this morning. We will listen carefully to them.

Mr. HAWKINS. Mr. Clay.

Mr. CLAY. No statement, Mr. Chairman.

Mr. HAWKINS. Then, we are very glad. Mr. Hampton, and it certainly is a privilege for me to welcome you and your associates to this hearing. As I have indicated, it is the beginning of a series of hearings. We have listened to representatives of the other departments. and it certainly is a pleasure for us to have you before us this morning at this time. You may proceed. We do have your written statement which you may read or deal with as you so desire. Mr. HAMPTON. Thank you very much.

STATEMENT BY CHAIRMAN ROBERT E. HAMPTON, U.S. CIVIL SERVICE COMMISSION, ACCOMPANIED BY LUDWIG J. ANDOLSEK, COMMISSIONER; ANTHONY HUDSON, DIRECTOR OF FEDERAL EQUAL EMPLOYMENT OPPORTUNITY; AND IRVING KATOR, ASSISTANT EXECUTIVE DIRECTOR OF THE COMMISSION

Mr. HAMPTON. Mr. Chairman and members of the subcommittee, we appreciate the opportunity to appear before the Subcommitte on Equal Opportunities to testify on the role of the Civil Service Commission in assuring equal employment opportunity in the Federal Government. Commissioner Andolsek is here with me today. Also with me is Mr. Irving Kator, Assistant Executive Director of the Commissioner; and Mr. Anthony Hudson, Director of Federal Equal Employment Opportunity.

Under section 717 of title VII of the Civil Rights Act, the Civil Service Commission is given responsibility to assure that all person