7-8.4 Contract Language

Contracts not exempt from EO 11246 must include the following clauses:

7-8.4.1 Exceptions for Transactions of $10,000 or Less

Contracts and subcontracts of $10,000 or less are exempt from the requirements of EO 11246 and Clause 9-7: Equal Opportunity, unless the aggregate amount of all contracts or subcontracts awarded to the supplier or subcontractor in any 12 month period will exceed $10,000. It is essential to note that government bills of lading, contracts with depositories of Postal Service funds, and contracts with financial institutions that are issuing and paying agents for U.S. savings bonds and savings notes are not exempt regardless of amount.

Indefinite-delivery contracts and ordering agreements are exempt only when the amount to be ordered in any year under the contract will not exceed $10,000. The CO must determine this at the time of award for the first year, and annually for each succeeding year. Whenever a single order exceeds $10,000, Clause 9-7: Equal Opportunity applies. Once Clause 9-7: Equal Opportunity applies, it continues in effect for the duration of the contract or ordering agreement, regardless of the amounts ordered or expected to be ordered.

7-8.4.2 Exceptions for Contracts With State or Local Governments

If a contract is with a state or local government, the agencies, instrumentalities, or subdivision that are not involved in the contract work do not fall under the requirements of EO 11246.

7-8.4.3 Exceptions for Contracts With Certain Educational Institutions

It is not a violation of EO 11246 for an educational institution to employ members of a particular religion if the institution is owned, supported, controlled, or managed (in whole or substantial part) by a religious group, or if the curriculum propagates a particular religion.

7-8.4.4 Exceptions for Work On or Near Indian Reservations

It is not a violation of EO 11246 for a supplier to announce publicly a preference for employment of American Indians living on or near an Indian reservation. “Near” includes the area within which a person could commute daily. suppliers extending such a preference must not, however, discriminate among Indians on the basis of religion, sex, or tribe. Using such a preference does not exclude a supplier from complying with the EO.

7-8.4.5 Exceptions for Contracts With a Religious Corporation, Association, Educational Institution, or Society

If a contract is with a religious corporation, association, educational institution, or society, it is not a violation of Section 202 of EO 11246 to employ individuals of a certain religion to perform work connected with the carrying-on of such an entity in its activities.

7-8.4.6 Contracts Exempted by the Vice President, Supply Management

The VP, SM, may determine that a contract is essential and must be awarded without complying with one or more of the requirements of EO 11246 in the interest of the Postal Service.

7-8.4.7 Complaints

Any complaint received by the CO concerning compliance with EO 11246 must be referred to the OFCCP regional office, and the complainant must be notified of the referral in writing. The complainant’s name, the nature of the complaint, or the fact that the complaint was received may be disclosed only to the OFCCP.

7-8.4.8 Enforcement

At the written direction of the director, OFCCP, one or more of the following actions, as well as administrative sanctions and penalties, may be exercised against suppliers found to be in violation of EO 11246, the regulations of the Secretary of Labor, or the applicable contract clauses: