22.807 Exemptions.

(a) Under the following exemptions, all or part of the requirements of E.O.11246 may be excluded

from a contract subject to E.O.11246:

(1) National security. The agency head may determine that a contract is essential to the national

security and that the award of the contract without complying with one or more of the requirements

of this subpart is necessary to the national security. Upon making such a determination, the agency

shall notify the Deputy Assistant Secretary in writing within 30 days.

(2) Specific contracts. The Deputy Assistant Secretary may exempt an agency from requiring the

inclusion of one or more of the requirements of E.O.11246 in any contract if the Deputy Assistant

Secretary deems that special circumstances in the national interest so require. Groups or categories

of contracts of the same type may also be exempted if the Deputy Assistant Secretary finds it

impracticable to act upon each request individually or if group exemptions will contribute to

convenience in the administration of E.O.11246.

(b) The following exemptions apply even though a contract or subcontract contains the Equal

Opportunity clause:

(1) Transactions of $10,000 or less. The Equal Opportunity clause is required to be included in prime

contracts and subcontracts by 22.802(a). Individual prime contracts or subcontracts of $10,000 or

less are exempt from application of the Equal Opportunity clause, unless the aggregate value of all

prime contracts or subcontracts awarded to a contractor in any 12-month period exceeds, or can

reasonably be expected to exceed, $10,000. (Note: Government bills of lading, regardless of amount,

are not exempt.)

(2) Work outside the United States. Contracts are exempt from the requirements of E.O.11246 for

work performed outside the United States by employees who were not recruited within the United

States.

(3) Contracts with State or local governments. The requirements of E.O.11246 in any contract with a

State or local government (or any agency, instrumentality, or subdivision thereof) shall not be

applicable to any agency, instrumentality, or subdivision of such government that does not

participate in work on or under the contract.

(4) Work on or near Indian reservations. It shall not be a violation of E.O.11246 for a contractor to

extend a publicly announced preference in employment to Indians living on or near an Indian

reservation in connection with employment opportunities on or near an Indian reservation. This

applies to that area where a person seeking employment could reasonably be expected to commute

to and from in the course of a work day. Contractors extending such a preference shall not, however,

discriminate among Indians on the basis of religion, sex, sexual orientation, gender identity, or tribal

affiliation, and the use of such preference shall not excuse a contractor from complying with

E.O.11246, rules and regulations of the Secretary of Labor, and applicable clauses in the contract.

(5) Facilities not connected with contracts. The Deputy Assistant Secretary may exempt from the

requirements of E.O.11246 any of a contractor’s facilities that the Deputy Assistant Secretary finds

to be in all respects separate and distinct from activities of the contractor related to performing the

contract, provided, that the Deputy Assistant Secretary also finds that the exemption will not

interfere with, or impede the effectiveness of, E.O.11246.
(6) Indefinite-quantity contracts. With respect to indefinite-quantity contracts and subcontracts, the

Equal Opportunity clause applies unless the contracting officer has reason to believe that the

amount to be ordered in any year under the contract will not exceed $10,000. The applicability of

the Equal Opportunity clause shall be determined by the contracting officer at the time of award for

the firstyear, and annually thereafter for succeeding years, if any. Notwithstanding the above, the

Equal Opportunity clause shall be applied to the contract whenever the amount of a single order

exceeds $10,000. Once the Equal Opportunity clause is determined to be applicable, the contract

shall continue to be subject to such clause for its duration regardless of the amounts ordered, or

reasonably expected to be ordered, in anyyear.

(7) Contracts with religious entities. Pursuant to E.O. 13279, Section 202 of E.O. 11246, shall not

apply to a Government contractor or subcontractor that is a religious corporation, association,

educational institution, or society, with respect to the employment of individuals of a particular

religion to perform work connected with the carrying on by such corporation, association,

educational institution, or society of its activities. Such contractors and subcontractors are not

exempted or excused from complying with the other requirements contained in the order.

(c) To request an exemption under paragraph (a)(2) or (b)(5) of this section, the contracting officer

shall submit, under agency procedures, a detailed justification for omitting all, or part of, the

requirements of E.O.11246. Requests for exemptions under paragraph (a)(2) or (b)(5) of this section

shall be submitted to the Deputy Assistant Secretary for approval.

(d) The Deputy Assistant Secretary may withdraw the exemption for a specific contract, or group of

contracts, if the Deputy Assistant Secretary deems that such action is necessary and appropriate to

achieve the purposes of E.O.11246. Such withdrawal shall not apply-

(1) To contracts awarded before the withdrawal; or

(2) To any sealed bid contract (including restricted sealed bidding), unless the withdrawal is made

more than 10 days before the bid opening date.

Parent topic: Subpart 22.8 - Equal Employment Opportunity