RUS Bulletin 1780-15

UNITED STATES DEPARTMENT OF AGRICULTURE

Rural Utilities Service

BULLETIN 1780-15 

RD-GD-1997-25

SUBJECT: Construction Contract Documents

EFFECTIVE DATE: July 30, 1997. 

OFFICE OF PRIMARY INTEREST: Assistant Administrator, Electric Program.

FILING INSTRUCTIONS:

PURPOSE: This bulletin is issued to

DISCLAIMER: The contents of this guidance document does not have the force and

effect of law and is not meant to bind the public in any way. This document is

intended only to provide clarity to the public regarding existing requirements under the

law or agency policies.

DISCLAIMER: The contents of this guidance document does not have the force and 

effect of law and is not meant to bind the public in any way. This document is intended 

only to provide clarity to the public regarding existing requirements under the law or 

agency policies.
RUS Bulletin 1780-15

Page 2

CONSTRUCTION CONTRACT DOCUMENTS

ITEM I

NOTICE AND INSTRUCTIONS TO BIDDERS

Date:

1. Sealed bids will be received by the

, hereinafter referred to as the 

"Owner," for performing the work as described as

follows:

as described more fully in the Plans and Specifications attached 

hereto, on or before o'clock, inthe

, at which time said bids will 

be publicly opened and read.

2. All bids must be made on the blank form of proposal attached hereto.

3. If the contract bid exceeds $10,000, a bidder must submit Form FmHA 

400-6. "Compliance Statement," with the bid. "Equal Opportunity 

Clause," will be a part of all construction contracts exceeding $10,000.

4. A bidder may withdraw any proposal submitted prior to the hour set 

for the closing of the bids provided the request is signed in a manner 

identical with the proposal being withdrawn.

5. It is understood that the Rural Utilities Service must concur in 

this contract.

6. The owner will be responsible for payment in accordance with the 

terms of the contract when the work is completed.

(Owner)

By

Title
RUS Bulletin 1780-15

ITEM II 

BIDDER'S PROPOSAL

Place

Date

1. In compliance with your invitation for bids dated

and subject to all the conditions thereof, the 

undersigned

(hereinafter called BIDDER) doing

business as

*,"

of the City of , State of

hereby proposes to furnish and complete work 

required by the Contract Documents for the construction of all 

structures listed at the prices shown for each bid item on the Bid 

Schedule. Any total cost found inconsistent with the unit cost when the 

bids are examined will be deemed in error and corrected to agree with 

the unit cost which shall be considered correct.

2. The undersigned BIDDER does hereby declare and stipulate that this 

proposal is made in good faith, without collusion or connection with any 

other person or persons bidding for the same work, and that it is made 

in pursuance of and subject to all the terms and conditions of the 

Notice and Instructions to Bidders, the Construction Contract, the 

Detailed Specifications, and the Plans pertaining to the work to be 

done, all of which have been examined by the undersigned.

3. The undersigned BIDDER agrees to abide by the requirements of 

Executive Order No. 11246, as amended. To that end, the BIDDER submits 

a completed Form FmHA 400 -6, "Compliance Statement," as ITEM (X) of the 

Contract Documents. The BIDDER agrees to execute "Equal Opportunity 

Clause," as part of the Construction Contract.

4. If the work to be performed under this contact is in hometown plan 

or imposed plan area the undersigned BIDDER agrees to abide by the 

"Model Special Bid Conditions" attached hereto as item VI.

5. All the various phases of work enumerated in the Detailed 

Specifications with their individual jobs and overhead, whether 

specifically mentioned, included by implication or appurtenant thereto, 

are to be performed by the BIDDER under one of the items listed in the 

Bid Schedule, irrespective of whether it is named in said list.

6. Payment for work performed will be in accordance with the bid 

Schedule, subject to changes as provided for in the Construction 

Contract.

RUS Bulletin 1780-15

Page 3

7. The undersigned BIDDER understands that this contract must be 

concurred in by the Rural Utilities Service.

8. The BIDDER will submit a construction schedule and execute the 

contract within 10 days after notification of contract award.

9. It is understood that time is of the essence in this contract and 

the BIDDER agrees to commence within 10 days after the Notice to Proceed 

and complete work within calendar days.

BIDDER'S License No. (if applicable) BIDDER

Seal (if a corporation)

By

Title

(Business Address)

*Insert: "a corporation incorporated in the State of

," "a partnership" or an individual, as 

applicable.
RUS Bulletin 1780-15

Page 4

BID SCHEDULE

NOTE: Bids shall include sales tax and all other applicable 

taxes and fees.

Item

No. Description Estimated Total Unit

Quantity Price Price Total

TOTAL BID PRICE $
RUS Bulletin 1780-15

Page 5

ITEM III 

NOTICE OF AWARD

Description of work: Construction of

for the

To:

The Owner has considered the Proposal submitted by you for the above 

described work in response to its Notice and Instructions to Bidders 

dated , .

It is to the best interest of said Owner to accept your Proposal in the 

amount of

($ ); you are hereby notified that your 

Proposal has been accepted for items

You are required by the Notice and Instruction to Bidders to execute the 

contract within ten days from the date of the delivery of this Notice to 

you.

Dated this day of , 

Owner

ACCEPTANCE OF NOTICE By

Receipt of the above Notice of Title

Award is hereby acknowledged this

day 

of , .

By

Title

RUS Bulletin 1780-15

Page 6

ITEM IV
C 0 N T R A C T

THIS AGREEMENT, made this day of , , 

by and between , 

hereinafter referred to as the OWNER, and

, hereinafter referred to as the 

CONTRACTOR:

WITNESSETH:

That for and in consideration of the mutual covenants and promises 

between the parties hereto, it is hereby agreed that:

1. The CONTRACTOR will furnish all of the materials and supplies, 

equipment, and labor and other services necessary in conformance with 

these contract documents for the construction and completion of the 

project described in general as follows:

2. COMPLETION OF WORK. The Contractor shall commence the work 

covered by this contract within ten (10) calendar days after the date of 

receipt of the Notice to Proceed and shall complete the same within

calendar days unless the period for completion is 

extended as provided for in the General Conditions.
RUS Bulletin 1780-15

Page 7

3. CONTRACT SUM. The Owner shall pay the Contractor for the 

performance of said work, subject to additions or deductions provided 

herein

dollars ($ ) in conformity 

with the bid schedule in Item II.

4. The Contract Documents include the following:

(a) Notice and Instructions to Bidders - Item I

(b) Bidder's Proposal - Item II

(c) Notice of Award - Item III

(d) Contract - Item IV

(e) General Conditions - Item V

(f) Model - Special Bid Conditions - Item VI 

(for hometown or imposed plan areas)

(g) Rural Utilities Service Supplemental General Conditions.

(h) Plans prepared by , 

numbered through , and dated

, .

(i) Specifications prepared or issued by

, dated , .

5. The OWNER will pay to the CONTRACTOR in the manner and at such 

times as set forth in the General Conditions and in such amounts 

as required by the Contract Documents.

6. This contract shall be binding upon all parties hereto and 

their respective heirs, executors, administrators, successors, and 

assigns.
RUS Bulletin 1780-15

Page 8

IN WITNESS WHEREOF, the parties hereto have executed, or caused to 

be executed by their duly authorized officials, this Contract in 

duplicate, on the date first above written.

OWNER:

By

(SEAL) Name

Title_

ATTEST:

Name

Title

CONTRACTOR:

By

Approved as lender or insurer of Name

fund to defray the costs of this

contract, and without liability Title

for any payments thereunder, the

Rural Utilities Service hereby Employer Identification

concurs in the award of this Number

contract to

.

U. S. Department of Agriculture 

Rural Utilities Service

By Title

This contract shall not be effective unless and until approved by the 

State Program Official of the Rural Utilities Service, U. S. Department 

of Agriculture, or a delegated representative.
RUS Bulletin 1780-15

Page 9

ITEM V 

GENERAL CONDITIONS

1. The contractor shall furnish and pay the cost, including sales tax and all 

other applicable taxes and fees, of all the necessary materials and shall 

furnish and pay for all the superintendence, labor, tools, equipment and 

transportation and perform all the work required for the construction of all 

items listed and itemized under the bid schedule of the Bidder's Proposal 

attached hereto as Item II in strict accordance with the Plans, Specifications 

and requirements, general conditions and special conditions which are attached 

hereto and made a part hereof, and any amendments thereto and such 

supplemental plans and specifications which may hereafter be approved.

2. The Owner shall provide the land upon which the work under this contract 

is to be done, and will, so far as is convenient, permit the Contractor to use 

as much of the land as is required for the erection of temporary construction 

facilities and storage of materials, together with the right of access to 

same, but beyond this, the Contractor shall provide at the contractor's cost 

and expense any additional land required.

3. In the event the Owner is dissatisfied with the slow progress or 

incompetency in the performance of the work in accordance with the schedule 

for completion of the various aspects of construction, the Owner shall give 

the Contractor written notice in which the owner shall specify in detail the 

cause of dissatisfaction. Should the Contractor fail or refuse to remedy the 

matters complained of within five days after the written notice is received by 

the Contractor the Owner shall have the right to take control of the work and 

either make good the deficiencies of the Contractor itself or direct the 

activities of the Contractor in doing so, employing such additional help as 

the Owner deems advisable. In such event the Owner shall be entitled to 

collect from the Contractor any expenses in completing the work.

4. The owner will withhold $ as liquidated damages from the amount 

payable to the Contractor for each calendar day that the contractor is in 

default after the time of completion stipulated in these Contract Documents. 

It is understood that the amount is approximately equal to the interest and 

other charges incurred by the Owner.

5. The Contractor guarantees all material and equipment furnished and all 

work performed for a period of 1 year from the date of substantial completion 

of the contract. The contractor's guarantees that the facility is free from 

defects due to faulty materials or workmanship and the contractor shall make 

the necessary corrections to correct these defects.
RUS Bulletin 1780-15

Page 10

6. The contractor should give all notices and comply with all laws, 

ordinances, rules, and regulations bearing on the conduct of the work as 

specified in the Contract Documents. If the contractor observes that the 

Contract Documents are at variation with any laws, ordinances, rules or 

regulations, the contractor should promptly notify the owner in writing and 

any necessary changes shall be adjusted through the use of contract change 

orders.

7. The Contractor agrees to pay all claims for labor, materials, services and 

supplies and agrees to allow no such charge to be fixed on the property of the 

Owner.

8. The Contractor agrees to comply with all laws, rules and regulations that 

apply to related work.

9. The actual performance of work and superintendence shall be performed by 

the Contractor but the owner shall, at all times, have access to the premises 

for the purpose of observing or inspecting the work performed by the 

Contractor.

10. It is fully understood and agreed that none of the requirements of this 

contract shall be considered as waived unless changes are made in writing and 

then only by the persons executing this contract upon concurrence of the Rural 

Utilities Service.

11. The Contractor agrees not to sublet or assign this work without the 

written consent of the owner.

12. The Contractor shall have full responsibility under these conditions, 

general provisions, Plans and Specifications for any subcontracts which the 

Contractor may let.

13. All questions or controversies which may arise between the Contractor and 

the Owner, under or in reference to this contract, should be resolved, to the 

fullest extent possible at a meeting between the Contractor, the Owner, and a 

representative of the RUS. The agreements reached at such meetings shall be 

carefully documented and become final and binding on all parties concerned. 

However, should the Owner and Contractor be unable to agree, a board of three 

arbitrators shall be chosen. One shall be chosen by the Contractor, one shall 

be chosen by the Owner, and the third shall be selected through mutual 

agreement by the first two. Should either party neglect or fail to select an 

arbitrator within ten days, the arbitrator selected by the other party shall 

have power to decide the dispute in the same manner as though a board of three 

arbitrators had been selected.
RUS Bulletin 1780-15

Page 11

14. The Contractor shall indemnify and save harmless the Owner and the 

Owner's agents and employees, from and against all losses and all claims, 

demands, payments, suits, actions, recoveries, and judgments of every nature, 

and description brought or recovered against them by reasons of any act or 

omission of the said Contractor, its agents, or employees, in the execution of 

the work or in guarding the same.

15. Payment. Final payment shall be made to the Contractor when the work is 

completed and accepted by the owner and the Rural Utilities Service. The 

total amount of the payment shall be the amount of the contract plus the value 

of all changes as reflected in approved contract change orders. The entire 

balance found to be due the Contractor but excepting such sums as may be 

lawfully retained by the Owner, shall be paid to the Contractor. Such payment 

shall be conditioned, however, upon the submission by the Contractor of 

evidence satisfactory to the Owner that all claims for labor, material, and 

any other outstanding indebtedness in connection with this Contract have been 

paid.

The Owner will make payments as follows: (Check (X) proper payment clause and 

effectively cross out all of the clauses not applicable.)

A. ONE LUMP SUM will be made for the whole contract, upon

acceptance by the owner and the Rural Utilities Service, of all work required 

hereunder and compliance by the Contractor with all the terms and conditions 

of this contract.

B. PARTIAL PAYMENTS NOT TO EXCEED 60 PERCENT of the value of

the work in place (less the aggregate of previous payments) will be made at 

intervals of . The value of work in place shall be as estimated by the 

contractor and approved by the Rural Utilities Service. Prior to receiving 

any partial payment, the contractor must furnish the owner with a statement 

showing the total amount owed to date for materials and labor procured under 

this contract and, if required by the owner or the Rural Utilities Service, 

must also submit evidence showing that previous partial payments were properly 

applied and that the current payment will be properly applied. Upon 

completion of the whole contract and acceptance of the work as required 

hereunder, by the owner and the Rural Utilities Service, and compliance by the 

contractor with all terms and conditions of this contract, the amount due the 

contractor will be paid.

16. Upon completion or termination of the work, the Contractor shall remove 

from the vicinity of the work all equipment and all temporary structures, 

waste materials and rubbish resulting from its operations, leaving the 

premises in a neat and presentable condition. In the event of failure to do 

so, the same may be done by the Owner at the expense of the Contractor.
RUS Bulletin 1780-15

Attachment I

ITEM VI 

MODEL

SPECIAL BID CONDITIONS 

AFFIRMATIVE ACTION REQUIREMENTS

EQUAL EMPLOYMENT OPPORTUNITY

THE FOLLOWING NOTICE SHALL BE INCLUDED IN ALL INVITATIONS AND OTHER 

SOLICITATIONS FOR BIDS ON (NON -EXEMPT) FEDERAL AND FEDERALLY -ASSISTED 

CONSTRUCTION CONTRACTS TO BE AWARDED ON THE

, TO INSURE EQUAL EMPLOYMENT OPPORTUNITY.

NOTICE OF REQUIREMENT

EACH BIDDER, CONTRACTOR OR SUBCONTRACTOR (HEREINAFTER THE 

CONTRACTOR) MUST FULLY COMPLY WITH THE REQUIREMENTS, TERMS AND 

CONDITIONS OF THE AFFIRMATIVE ACTION PLAN (HEREINAFTER

PLAN) INCLUDING THE GOALS FOR MINORITY MANPOWER 

UTILIZATION AS TO EACH CONSTRUCTION TRADE IT INTENDS TO USE ON THIS 

CONSTRUCTION CONTRACT AND ALL OTHER CONSTRUCTION WORK (BOTH FEDERAL AND 

NONFEDERAL) IN THE AREA DURING THE PERFORMANCE OF THIS 

CONTRACT OR SUBCONTRACT. THE CONTRACTOR COMMITS ITSELF TO THE GOALS FOR 

MINORITY MANPOWER UTILIZATION CONTAINED HEREIN AND ALL OTHER 

REQUIREMENTS, TERMS AND CONDITIONS OF THESE BID CONDITIONS BY SUBMITTING 

A PROPERLY SIGNED BID.

THE CONTRACTOR WILL APPOINT A COMPANY EXECUTIVE TO ASSUME THE 

RESPONSIBILITY FOR THE IMPLEMENTATION OF SUCH REQUIREMENTS, TERMS AND 

CONDITIONS.
RUS Bulletin 1780-15

Attachment 1

Page 2

PART 1 (GOALS FOR MINORITY UTILIZATION)

A. THE FOLLOWING GOALS FOR MINORITY MANPOWER UTILIZATION SHALL 

EXPRESS THE CONTRACTOR'S COMMITMENT TO THE PERCENTAGE OF MINORITY 

WORKHOURS TO BE WORKED IN EACH SPECIFIED CRAFT ON ALL WORK PERFORMED BY 

THE CONTRACTOR IN THE AREA DURING THE PERFORMANCE OF 

THIS CONTRACT. "MINORITY" IS DEFINED AS INCLUDING BLACKS,

SPANISH-SURNAMED AMERICANS, ORIENTALS, AND AMERICAN INDIANS AND INCLUDES 

BOTH MINORITY MEN AND WOMEN.

FOR ALL TRADES THE FOLLOWING GOALS AND TIMETABLES SHALL BE 

APPLICABLE:

UNTIL DECEMBER 31,

FROM JANUARY 1, to DECEMBER 31,

FROM JANUARY 1, to DECEMBER 31,

FROM JANUARY 1, to DECEMBER 31,

FROM JANUARY 1, to DECEMBER31,

GOALS FOR MINORITY 

UTILIZATION

-

-

-

-

-

B. THE GOALS FOR MINORITY MANPOWER UTILIZATION ABOVE ARE EXPRESSED 

IN TERMS OF WORKHOURS OF TRAINING AND EMPLOYMENT AS A PROPORTION OF THE 

TOTAL WORKHOURS TO BE WORKED BY THE CONTRACTOR'S AGGREGATE WORKFORCE IN 

THAT TRADE ON ALL PROJECTS (BOTH FEDERAL AND NON -FEDERAL) IN THE

AREA DURING THE PERFORMANCE OF ITS CONTRACT OR SUBCONTRACT 

(i.e. THE PERIOD BEGINNING WITH THE FIRST DAY OF WORK ON THE FEDERAL OR 

FEDERALLY -ASSISTED CONSTRUCTION CONTRACT AND ENDING WITH THE LAST DAY OF 

WORK).

RUS Bulletin 1780-15

Attachment I

Page 3

C. THE WORKHOURS OF MINORITY WORK MUST BE SUBSTANTIALLY UNIFORM 

THROUGHOUT THE LENGTH OF THE CONTRACT IN EACH TRADE, AND MINORITIES 

SHOULD BE EMPLOYED EVENLY ON EACH OF A CONTRACTOR'S PROJECTS. 

NEVERTHELESS, FAILURE OF A CONTRACTOR TO EMPLOY MINORITIES EVENLY ON 

EACH OF ITS PROJECTS SHALL NOT CONSTITUTE NONCOMPLIANCE PROVIDED THE 

PERCENTAGE OF MINORITY WORKHOURS EMPLOYED BY THE CONTRACTOR IN ITS 

AGGREGATE WORKFORCE IN THE AREA MEETS OR EXCEEDS ITS 

COMMITMENT TO THE GOALS FOR MINORITY MANPOWER UTILIZATION IN THE

PLAN AND THE CONTRACTOR HAS NOT VIOLATED THE EQUAL 

OPPORTUNITY CLAUSE OF THE CONTRACT IN THE ASSIGNMENT OF MINORITIES TO 

ITS PROJECTS. THE TRANSFER OF MINORITY EMPLOYEES FROM

EMPLOYER -TO-EMPLOYER OR FROM PROJECT -TO-PROJECT FOR THE PURPOSE OF 

MEETING THE CONTRACTOR'S GOAL SHALL BE A VIOLATION OF THE

PLAN. OTHERWISE, THE CONTRACTOR SHALL BE DEEMED TO BE IN COMPLIANCE 

WITH THE REQUIREMENTS, TERMS, AND CONDITIONS OF THE PLAN 

IF THE MINORITY MANPOWER UTILIZATION RATE OF THE CONTRACTOR MEETS OR 

EXCEEDS ITS COMMITMENT TO THE GOALS FOR MINORITY MANPOWER UTILIZATION IN

ITS AGGREGATE WORKFORCE, BOTH FEDERALLY INVOLVED AND NON -FEDERAL, WITHIN 

THE AREA. HOWEVER, IF THE CONTRACTOR HAS DENIED EQUAL 

EMPLOYMENT OPPORTUNITY IN VIOLATION OF THE EQUAL OPPORTUNITY CLAUSE OF

THIS CONTRACT, IT SHALL NOT BE IN COMPLIANCE WITH THE PLAN.

D. IN THE EVENT THAT WORK IS PERFORMED AFTER THE EXPIRATION DATE 

OF THE PLAN ON A CONSTRUCTION CONTRACT AWARDED 

PURSUANT TO THE REQUIREMENTS, TERMS AND CONDITIONS OF THE PLAN THE

GOALS FOR MINORITY MANPOWER UTILIZATION FOR 1980 SHALL BE APPLICABLE

TO SUCH WORK.
RUS Bulletin 1780-15 

Attachment I

Page 4

E. THE CONTRACTORS COMMITMENT TO GOALS OF MINORITY MANPOWER 

UTILIZATION IS INTENDED TO MEET ITS AFFIRMATIVE ACTION OBLIGATIONS UNDER 

EXECUTIVE ORDER 11246, AS AMENDED, AND IS NOT INTENDED AND SHALL NOT BE 

USED TO DISCRIMINATE AGAINST ANY QUALIFIED APPLICANT OR EMPLOYEE. 

WHENEVER, IT COMES TO THE CONTRACTOR'S ATTENTION THAT THE GOALS ARE 

BEING USED IN A DISCRIMINATORY MANNER, IT SHALL IMMEDIATELY REPORT THAT 

FACT TO THE OFFICE OF FEDERAL CONTRACT COMPLIANCE PROGRAMS, EMPLOYMENT 

STANDARDS ADMINISTRATION, U.S. DEPARTMENT OF LABOR, AND THE COMPLIANCE 

AGENCY SO THAT APPROPRIATE PROCEEDINGS MAY BE INSTITUTED.

PART II

SPECIFIC AFFIRMATIVE ACTION STEPS (GOOD FAITH EFFORTS)

THE CONTRACTOR SHALL BE DEEMED TO BE IN COMPLIANCE WITH THE 

REQUIREMENTS, TERMS, AND CONDITIONS OF THE PLAN IF IT 

MEETS OR EXCEEDS ITS COMMITMENT TO THE GOALS FOR MINORITY MANPOWER 

UTILIZATION IN ITS AGGREGATE WORKFORCE IN THE AREA FOR 

EACH TRADE FOR WHICH IT IS COMMITTED TO A GOAL UNDER THE

PLAN. THE CONTRACTOR'S COMMITMENT TO THE GOALS FOR MINORITY MANPOWER 

UTILIZATION AS REQUIRED BY THE PLAN CONSTITUTES A COMMITMENT 

THAT IT WILL MAKE EVERY GOOD FAITH EFFORT TO MEET SUCH GOALS. NO 

CONTRACTOR SHALL BE FOUND TO BE IN NON -COMPLIANCE SOLELY ON ACCOUNT OF 

THE CONTRACTOR'S FAILURE TO MEET ITS GOALS, BUT SHALL BE GIVEN THE 

OPPORTUNITY TO DEMONSTRATE THAT THE CONTRACTOR HAS INSTITUTED ALL THE 

SPECIFIC AFFIRMATIVE ACTION STEPS SPECIFIED IN THE PLAN AND 

MADE EVERY GOOD FAITH EFFORT TO MAKE THESE STEPS WORK TOWARD THE 

ATTAINMENT OF ITS GOALS WITHIN THE TIMETABLES, ALL TO THE PURPOSE OF 

EXPANDING MINORITY MANPOWER UTILIZATION IN ITS AGGREGATE WORKFORCE IN 

THE AREA. CONTRACTORS WHO FAIL TO ACHIEVE THEIR 

COMMITMENTS TO THE GOALS FOR MINORITY MANPOWER UTILIZATION MUST HAVE 

ENGAGED IN
RUS Bulletin 1780-15

Attachment I

Page 5

AFFIRMATIVE ACTION DIRECTED AT INCREASING MINORITY MANPOWER UTILIZATION, 

WHICH IS AT LEAST AS EXTENSIVE AS THE FOLLOWING STEPS:

1. SPECIFIC WRITTEN NOTIFICATION OF MINORITY RECRUITMENT SOURCES 

AND COMMUNITY ORGANIZATION WHEN THE CONTRACTOR OR ITS UNIONS HAVE 

EMPLOYMENT OPPORTUNITIES AVAILABLE AND MAINTENANCE OF RECORDS REGARDING 

THE ORGANIZATIONS' RESPONSE.

2. MAINTENANCE OF A FILE OF THE NAMES AND ADDRESSES OF EACH 

MINORITY WORKER REFERRED BY THE UNION, MINORITY RECRUITMENT SOURCE(S) 

AND COMMUNITY ORGANIZATION(S) TO THE CONTRACTOR AND WHAT ACTION HAS BEEN 

TAKEN WITH RESPECT TO EACH SUCH REFERRED WORKER. IF SUCH WORKER WAS NOT 

EMPLOYED BY THE CONTRACTOR, THE FILE SHOULD DOCUMENT THIS AND THE 

REASONS THEREFOR.

3. WRITTEN NOTIFICATION TO BOTH THE CONTRACTING AGENCY AND THE 

OFFICE OF FEDERAL CONTRACT COMPLIANCE PROGRAMS WHEN THE UNION OR UNIONS 

WITH WHOM THE CONTRACTOR HAS A COLLECTIVE BARGAINING AGREEMENT HAS NOT 

REFERRED TO THE CONTRACTOR A MINORITY WORKER SENT BY THE CONTRACTOR, OR 

THE CONTRACTOR HAS OTHER INFORMATION THAT THE UNION REFERRAL PROCESS HAS 

IMPEDED ITS EFFORTS TO MEET ITS GOALS.

4. PARTICIPATION IN TRAINING PROGRAMS IN THE AREA, INCLUDING 

APPRENTICESHIP, TRAINEE, AND JOURNEYMEN UPGRADING PROGRAMS, ESPECIALLY 

THOSE FUNDED BY THE DEPARTMENT OF LABOR.

5. DISSEMINATION OF THE CONTRACTOR'S OR UNION'S EEO POLICY BY 

INCLUDING IT IN ANY POLICY MANUAL AND COLLECTIVE BARGAINING 

AGREEMENT(S); BY PUBLICIZING IT IN THE COMPANY OR UNION
RUS Bulletin 1780-15

Attachment I

Page 7 Page 6

NEWSPAPER, ANNUAL REPORT, ETC.; BY POSTING OF THE POLICY: AND 

BY SPECIFIC REVIEW OF THE POLICY WITH MINORITY EMPLOYEES AT LEAST ONCE A 

YEAR.

6. DISSEMINATION OF THE CONTRACTOR'S EEO POLICY EXTERNALLY BY 

ADVERTISING IN NEWS MEDIA, SPECIFICALLY INCLUDING MINORITY NEWS MEDIA, 

IF THE CONTRACTOR HAS A NEED TO ADVERTISE; AND BY NOTIFYING AND 

DISCUSSING IT WITH OTHER CONTRACTORS, AND SUBCONTRACTORS WITH WHOM THE 

CONTRACTOR DOES OR ANTICIPATES DOING BUSINESS.

7. ENCOURAGE PRESENT MINORITY EMPLOYEES TO RECRUIT THEIR FRIENDS 

AND RELATIVES.

8. VALIDATION OF ALL TESTS AND OTHER SELECTION REQUIREMENTS AS 

REQUIRED BY THE TESTING AND SELECTION ORDER (41 CFR PART

60-3).

9. MAKING EVERY EFFORT TO PROVIDE AFTER SCHOOL, SUMMER AND 

VACATION EMPLOYMENT TO MINORITY YOUTH - BOTH ON THE JOB SITE AND IN 

OTHER AREAS OF A CONTRACTOR'S WORKFORCE.

10. CONDUCT INVENTORY AND EVALUATION OF ALL MINORITY PERSONNEL FOR 

PROMOTIONAL OPPORTUNITIES ON A QUARTERLY BASIS AND ENCOURAGE MINORITY 

EMPLOYEES TO SEEK SUCH OPPORTUNITIES.

11. ENSURING THAT SENIORITY PRACTICES, JOB CLASSIFICATIONS, 

ETC., DO NOT HAVE A DISCRIMINATORY EFFECT.

12. ENSURING THAT ALL FACILITIES AND COMPANY ACTIVITIES ARE 

NONSEGREGATED.

13. CONTINUAL MONITORING OF ALL PERSONNEL ACTIVITIES TO ENSURE 

THAT ITS EEO POLICY IS BEING CARRIED OUT.
RUS Bulletin 1780-15 

Attachment I

14. DOCUMENTATION OF SOLICITATION OF BIDS FOR SUBCONTRACTORS FROM 

AVAILABLE MINORITY SUBCONTRACTORS ENGAGED IN THE TRADES COVERED BY

THE PLAN, INCLUDING CIRCULATION TO MINORITY CONTRACTOR 

ASSOCIATIONS.

THE OFFICE OF FEDERAL CONTRACT COMPLIANCE PROGRAMS ASSISTANT 

REGIONAL ADMINISTRATOR AND THE CONTRACTING AGENCY COMPLIANCE STAFF WILL 

PROVIDE TECHNICAL ASSISTANCE, UPON REQUEST, PERTAINING TO MINORITY 

RECRUITMENT SOURCES, COMMUNITY ORGANIZATIONS AND MINORITY NEWS MEDIA.

PART III

ADMINISTRATIVE PROCEDURES FOR ENFORCEMENT

A.THE AGENCY SHALL REVIEW THE CONTRACTOR'S EMPLOYMENT PRACTICES 

DURING THE PERFORMANCE OF THE CONTRACT. IF THE CONTRACTOR MEETS ITS 

GOAL(S) OR CAN DEMONSTRATE THAT IT HAS MADE IN GOOD FAITH EVERY EFFORT 

TO MEET THE GOAL(S) AND IS NOT OTHERWISE VIOLATING THE EQUAL OPPORTUNITY 

CLAUSE OF THIS CONTRACT OR ANY OTHER FEDERAL EQUAL EMPLOYMENT 

OPPORTUNITY LAWS OR REGULATIONS, THE CONTRACTOR SHALL BE PRESUMED TO BE 

IN COMPLIANCE WITH EXECUTIVE ORDER 11246, AS AMENDED, AND THE

PLAN. IN THAT EVENT, NO FORMAL SANCTIONS OR PROCEEDINGS LEADING TOWARD 

SANCTIONS SHALL BE INSTITUTED UNLESS THE AGENCY OTHERWISE DETERMINES 

THAT THE CONTRACTOR IS NOT PROVIDING EQUAL EMPLOYMENT OPPORTUNITIES.

B. WHERE THE AGENCY FINDS THAT THE CONTRACTOR HAS FAILED TO COMPLY 

WITH REQUIREMENTS OF EXECUTIVE ORDER 11246, THE IMPLEMENTING REGULATIONS 

AND THE PLAN, THE AGENCY SHALL TAKE SUCH ACTION AND IMPOSE
RUS Bulletin 1780-15

Attachment I

Page 7

SUCH SANCTIONS, WHICH INCLUDE SUSPENSION, TERMINATION, CANCELLATION, AND 

DEBARMENT, AS MAY BE APPROPRIATE UNDER THE EXECUTIVE ORDER AND ITS 

REGULATIONS.

C. WHEN THE AGENCY PROCEEDS WITH SUCH FORMAL ACTION, IT HAS THE 

BURDEN OF PROVIDING THAT THE CONTRACTOR HAS NOT MET THE REQUIREMENTS OF 

THE PLAN. THE CONTRACTOR'S FAILURE TO MEET ITS GOAL(S) SHALL, 

HOWEVER, SHIFT TO THE REQUIREMENT TO COME FORWARD WITH EVIDENCE TO SHOW 

THAT IT HAS MADE EVERY "GOOD FAITH" EFFORT TO MEET SUCH GOALS.

D. THE PENDENCY OF SUCH FORMAL PROCEEDINGS SHALL BE TAKEN INTO 

CONSIDERATION BY FEDERAL AGENCIES BY DETERMINING WHETHER SUCH CONTRACTOR 

CAN COMPLY WITH THE REQUIREMENTS OF EXECUTIVE ORDER 11246, AS AMENDED, 

AND IS THEREFORE, A "RESPONSIBLE PROSPECTIVE CONTRACTOR" WITHIN THE 

MEANING OF THE FEDERAL PROCUREMENT ACT.

E. IT SHALL BE NO EXCUSE THAT THE UNION WITH WHICH THE CONTRACTOR 

HAS A COLLECTIVE BARGAINING AGREEMENT PROVIDES FOR THE EXCLUSIVE 

REFERRAL OF MINORITY EMPLOYEES. DISCRIMINATION IN REFERRAL FOR 

EMPLOYMENT, EVEN IF PURSUANT TO PROVISIONS OF A COLLECTIVE BARGAINING 

AGREEMENT, IS PROHIBITED BY THE NATIONAL LABOR RELATIONS ACT, AS 

AMENDED, AND TITLE VII OF THE CIVIL RIGHTS ACT FOR 1964. IT IS THE 

POLICY OF THE OFFICE OF FEDERAL CONTRACT COMPLIANCE PROGRAMS THAT 

CONTRACTORS HAVE A RESPONSIBILITY TO PROVIDE EQUAL EMPLOYMENT

OPPORTUNITY IF THEY WISH TO PARTICIPATE IN FEDERALLY -INVOLVED CONTRACTS. 

TO THE EXTENT THEY HAVE DELEGATED THE RESPONSIBILITY FOR SOME OF THEIR 

EMPLOYMENT PRACTICES TO A LABOR ORGANIZATION AND, AS A RESULT, ARE 

PREVENTED FROM MEETING THEIR OBLIGATIONS PURSUANT TO EXECUTIVE ORDER 

11246, AS AMENDED, SUCH CONTRACTORS
RUS Bulletin 1780-15 

Attachment I

CANNOT BE CONSIDERED TO BE IN COMPLIANCE WITH EXECUTIVE ORDER 11246, AS 

AMENDED, AND ITS IMPLEMENTING RULES AND REGULATIONS.

CONTRACTOR OBLIGATIONS

A. ALL CONTRACTORS SHALL INCLUDE THE PLAN IN ALL BID 

INVITATIONS OR OTHER PRE -BID COMMUNICATIONS, WRITTEN OR OTHERWISE, WITH 

THEIR PROSPECTIVE SUBCONTRACTORS. WHENEVER A CONTRACTOR SUBCONTRACTS A 

PORTION OF THE WORK IN ANY TRADE COVERED BY THE PLAN IT 

SHALL INCLUDE THE PLAN IN SUCH SUBCONTRACTS AND EACH SUBCONTRACTOR SHALL 

BE BOUND BY THE PLAN TO THE FULL EXTENT AS IF IT WERE THE 

PRIME CONTRACTOR. THE CONTRACTOR SHALL NOT BE ACCOUNTABLE FOR THE 

FAILURE OF ITS SUBCONTRACTOR TO FULFILL ITS AFFIRMATIVE ACTION 

COMMITMENTS. HOWEVER, THE PRIME CONTRACTOR SHALL GIVE NOTICE TO THE 

OFFICE OF FEDERAL CONTRACT COMPLIANCE PROGRAMS OF THE DEPARTMENT OF 

LABOR AND THE CONTRACTING AGENCY OF ANY REFUSAL OR FAILURE OF ANY 

SUBCONTRACTOR TO FULFILL ITS OBLIGATIONS UNDER THE PLAN. 

NONCOMPLIANCE WITH THESE REQUIREMENTS BY A SUBCONTRACTOR WILL BE TREATED 

IN THE SAME MANNER AS SUCH FAILURE BY THE PRIME CONTRACTOR.

B. CONTRACTORS HEREBY AGREE TO REFRAIN FROM ENTERING INTO ANY 

CONTRACT OR CONTRACT MODIFICATION SUBJECT TO EXECUTIVE ORDER 11246, AS 

AMENDED, WITH A CONTRACTOR DEBARRED FROM, OR WHO IS DETERMINED NOT TO BE 

A "RESPONSIBLE" BIDDER FOR GOVERNMENT CONTRACTS AND FEDERALLY -ASSISTED 

CONSTRUCTION CONTRACTS PURSUANT TO THE EXECUTIVE ORDER.

C. THE CONTRACTOR SHALL CARRY OUT SUCH SANCTIONS AND PENALTIES 

FOR VIOLATION OF THESE BID CONDITIONS AND THE EQUAL OPPORTUNITY CLAUSE 

INCLUDING
RUS Bulletin 1780-15

Attachment I

Page 7 Page 10

SUSPENSION. TERMINATION AND CANCELLATION OF EXISTING SUBCONTRACTS AND 

DEBARMENT FROM FUTURE CONTRACTS AS MAY BE IMPOSED OR ORDERED PURSUANT TO 

EXECUTIVE ORDER 11246, AS AMENDED, AND ITS IMPLEMENTING REGULATIONS BY 

THE CONTRACTING OR ADMINISTERING AGENCY AND THE OFFICE OF FEDERAL 

CONTRACT COMPLIANCE PROGRAMS. ANY CONTRACTOR WHO FAILS TO CARRY OUT 

SUCH SANCTIONS AND PENALTIES SHALL ALSO BE DEEMED TO BE IN NONCOMPLIANCE 

WITH THESE BID CONDITIONS AND EXECUTIVE ORDER 11246, AS AMENDED.

D. NOTHING HEREIN IS INTENDED TO RELIEVE ANY CONTRACTOR DURING THE 

TERM OF ITS CONTRACT FROM COMPLIANCE WITH EXECUTIVE ORDER 11246, AS 

AMENDED, AND THE EQUAL OPPORTUNITY CLAUSE OF ITS CONTRACT WITH RESPECT 

TO MATTERS NOT COVERED IN THE PLAN.

E. CONTRACTORS MUST KEEP SUCH RECORDS AND FILE SUCH REPORTS 

RELATING TO PROVISIONS OF THE PLAN AS SHALL BE REQUIRED BY 

THE CONTRACTING OR ADMINISTERING AGENCY OR THE OFFICE OF FEDERAL 

CONTRACT COMPLIANCE PROGRAMS.

OBLIGATIONS OF THE FEDERAL GOVERNMENT

A. NOTHING IN THE PLAN SHALL BE INTERPRETED TO 

DIMINISH OR RELIEVE THE RESPONSIBILITIES OF THE CONTRACTING AND 

ADMINISTERING AGENCIES PURSUANT TO EXECUTIVE ORDER 11246, AS AMENDED, 

WITH RESPECT TO MATTERS NOT COVERED IN THESE BID CONDITIONS.

B. THE PROCEDURES SET FORTH IN THE PLAN SHALL NOT 

APPLY TO ANY CONTRACT WHEN THE HEAD OF THE AGENCY DETERMINES THAT SUCH 

CONTRACT IS ESSENTIAL TO THE NATIONAL SECURITY AND THAT ITS AWARD 

WITHOUT FOLLOWING SUCH PROCEDURE IS NECESSARY TO THE NATIONAL SECURITY. 

UPON MAKING SUCH A DETERMINATION, THE AGENCY HEAD WILL NOTIFY, IN 

WRITING, THE DIRECTOR OF THE OFFICE
RUS Bulletin 1780-15 

Attachment I

OF FEDERAL CONTRACT COMPLIANCE PROGRAMS WITHIN 30 DAYS.

C. NOTHING IN THE PLAN SHALL BE INTERPRETED TO 

DIMINISH THE PRESENT CONTRACT COMPLIANCE REVIEW AND COMPLIANT PROGRAMS.

D. REQUESTS FOR EXEMPTIONS FROM THE PLAN

MUST BE MADE IN WRITING, WITH JUSTIFICATION, TO THE DIRECTOR, OFFICE OF 

FEDERAL CONTRACT COMPLIANCE PROGRAMS, U.S. DEPARTMENT OF LABOR, 

WASHINGTON, D.C., 20210, AND SHALL BE FORWARDED THROUGH AND WITH THE 

ENDORSEMENT OF THE HEAD OF THE CONTRACTING OR ADMINISTERING AGENCY.

SIGNED THIS DAY OF .

DIRECTOR, OFFICE OF FEDERAL

Contract Compliance Programs

oOo