upon contractors and subcontractors by the administering agency
<br />or the Secretary of Labor pursuant to Part Il, Subpart D of the
<br />Executive order. In addition, the applicant agrees that if it fails or
<br />refuses to comply with these undertakings, the administering
<br />agency may take any or all of the following actions: Cancel,
<br />terminate, or suspend in whole or in part this grant (contract, loan,
<br />insurance, guarantee); refrain from extending any further assis-
<br />tance to the applicant under the program with respect to which the
<br />failure or refund occurred until satisfactory assurance of future
<br />compliance has been received fromsucb applicant; andreferthe case
<br />to the Department of Justice for appropriate legal proceedings.
<br />Excerpt from HUD Regulations
<br />200.410Definition of term "applicant".
<br />(a) In multifamily housing transactions where controls over the
<br />mortgagor are exercised by the Commissioner either through
<br />the ownership of corporate stock or under the provisions of
<br />a regulatory agreement, the term "applicant" as used in this
<br />subpart shall mean the mortgagor.
<br />(b) In transactions other than those specified in paragraph(a) of
<br />this section, the term "applicant" as used in this subpart shail
<br />mean the builder, dealer or contractor performing the con-
<br />struction, repair or rehabilitation work for the mortgagor or
<br />other borrower.
<br />200.420Equal Opportunity Clause to be included in contracts and
<br />subcontracts.
<br />(a) The following equal opportunity clause shall be included in
<br />each contract and subcontract which is not exempt:.
<br />During the performance of this contract, the contractor agrees
<br />as follows:
<br />(1) The contractor will not discriminate against any em-
<br />ployee or applicant for employment because of race, creed,
<br />color, or national origin. The contractor will take affirmative
<br />action to ensured that applicants are employed, and that
<br />employees are treated during employment without regard to
<br />their race, creed, color, or national origin. Such action shall
<br />include, but not be limited to the following: employment,
<br />upgrading, demotion or transfer; recruitment or recruitment
<br />advertising; layoff or termination; rates of pay or other forms
<br />of compensation-, and selection for training, including ap-
<br />prenticeship. The contractor agrees to post in conspicuous
<br />places, available to employees and applicants for employ-
<br />ment, notices to be provided setting forth the provisions of
<br />the nondiscrimination clause.
<br />(2)The contractor will in all solicitations or advertisements for
<br />employees placed by or on behalf of the contractor, state that all
<br />qualified applicants will receive consideration for employment
<br />without regard race, creed, color, or national origin.
<br />(3) The contractor will send to each labor union or repre-
<br />sentative of workers with which he has a collective bargain-
<br />ing agreement or other contract or understanding, a notice, to
<br />be provided, advising the said labor union or workers' repre-
<br />sentative of the contractor's commitments under this section,
<br />and shall post copies of the notices in conspicuous places
<br />available to employees and applicants for employment.
<br />(4) The contractor will comply with all provisions of Ex-
<br />ecutive Order 10925 of March 6 1961, as amended, and of the
<br />regulations, and relevant orders of the President's Commit-
<br />tee on Equal Employment Opportunity created thereby.
<br />(5) The contractor will furnish all information and reports
<br />required by Executive Order 10925 of March 6, 1961, as
<br />amended, and by the regulations, and orders of the said
<br />Committee , or pursua.rtt thereto, and will permit access to his
<br />books, records, and accounts by HUD and the Committee for
<br />purposes of investigation to ascertain compliance with such
<br />regulations, and orders.
<br />(6) In the event of the contractor's non-compliance with
<br />the nondiscrimination clause of this contract or with any of
<br />the said regulations, or orders, this contract may be can-
<br />celled, terminated or suspended in whole or in part and the
<br />contractor may be declared ineligible for further Govern-
<br />ment contracts or Federally -assisted construction contracts
<br />in accordance with procedures authorized in Executive Order
<br />10925 of March 6, 1961, as amende, and such other sanctions
<br />may be imposed and remedies invoke s provided in the said
<br />Executive Order or by regulations, or orderof the President's
<br />Committee on Equal Employment Opportunity, or as other-
<br />wise provided by law.
<br />(7) The contractor will include the provisions of Para-
<br />graphs(1) through (7) in every subcontract or purchase order
<br />unless exempted by regulations, or orders of the President's
<br />Committee on Equal Employment Opportunity issued pursu-
<br />ant to Section 303 of Executive Order 10925 of March 6,
<br />1961, as amended, so that such provisions will be binding
<br />upon each subcontractor or vender. The contractor will take
<br />such action with respect to any subcontract or purchase
<br />orders as HUD may direct as a means of enforcing such
<br />provisions, including sanctions for noncompliance: Provided,
<br />however, that in the event the contractor becomes involved
<br />in, or is threatened with, litigation with a subcontractor or
<br />vender as a result of such direction by HUD, the contractor
<br />may request the United States to enter into such litigation to
<br />protect the interests of the United States.
<br />(b) Except in subcontracts for the performance of construction
<br />work at the site of construction, the clause is not required to
<br />be inserted in subcontracts below the second tier. Subcontracts
<br />may incorporate by referenced to the equal opportunity clause.
<br />200.425Modification in and exemptions from the regulations in
<br />this subpart.
<br />(a) The following transactions and contracts are exempt from the
<br />regulations in this subpart:
<br />(1) Loans, mortgages, contracts and subcontracts not ex-
<br />ceeding $10,000.
<br />(2) Contract and subcontracts not exceeding $100,000 for
<br />standard commercial supplies or raw material;
<br />(3)Contracts and subcontracts under which work is to be or has
<br />been perfonned outside the United States and where no recruit-
<br />ment of workers within the United States in involved. To the
<br />extent that work pursuant to such contracts is done within the
<br />Untied States, the equal opportunity clause shall be applicable;
<br />(4) Contracts for the sale of Government property where
<br />no appreciable amount of work is involved; and
<br />(5) Contracts and subcontracts for an indefinite quantity
<br />which are not to extend for ore than one year if the purchaser
<br />determines that the amounts to be ordered 'under any such
<br />contract or subcontract are notreasonably expected to exceed
<br />$100,000 in the case of contracts or subcontracts for standard
<br />commercial supplies and raw materials, or $10,000 in the
<br />case of all other contracts and subcontracts.
<br />form HUD -92010 (1/82)
<br />VA form 26-421
<br />70
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