[Code of Federal Regulations]
[Title 41, Volume 1]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 41CFR60-2.17]

[Page 117-118]
 
           TITLE 41--PUBLIC CONTRACTS AND PROPERTY MANAGEMENT
 
                           DEPARTMENT OF LABOR
 
PART 60-2_AFFIRMATIVE ACTION PROGRAMS--Table of Contents
 
      Subpart B_Purpose and Contents of Affirmative Action Programs
 
Sec. 60-2.17  Additional required elements of affirmative action programs.

    In addition to the elements required by Sec. 60-2.10 through Sec. 
60-2.16, an acceptable affirmative action program must include the 
following:
    (a) Designation of responsibility. The contractor must provide for 
the implementation of equal employment opportunity and the affirmative 
action program by assigning responsibility and accountability to an 
official of the organization. Depending upon the size of the contractor, 
this may be the official's sole responsibility. He or she must have the 
authority, resources, support of and access to top management to ensure 
the effective implementation of the affirmative action program.
    (b) Identification of problem areas. The contractor must perform in-
depth analyses of its total employment process to determine whether and 
where impediments to equal employment opportunity exist. At a minimum 
the contractor must evaluate:
    (1) The workforce by organizational unit and job group to determine 
whether there are problems of minority or female utilization (i.e., 
employment in

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the unit or group), or of minority or female distribution (i.e., 
placement in the different jobs within the unit or group);
    (2) Personnel activity (applicant flow, hires, terminations, 
promotions, and other personnel actions) to determine whether there are 
selection disparities;
    (3) Compensation system(s) to determine whether there are gender-, 
race-, or ethnicity-based disparities;
    (4) Selection, recruitment, referral, and other personnel procedures 
to determine whether they result in disparities in the employment or 
advancement of minorities or women; and
    (5) Any other areas that might impact the success of the affirmative 
action program.
    (c) Action-oriented programs. The contractor must develop and 
execute action-oriented programs designed to correct any problem areas 
identified pursuant to Sec. 60-2.17(b) and to attain established goals 
and objectives. In order for these action-oriented programs to be 
effective, the contractor must ensure that they consist of more than 
following the same procedures which have previously produced inadequate 
results. Furthermore, a contractor must demonstrate that it has made 
good faith efforts to remove identified barriers, expand employment 
opportunities, and produce measurable results.
    (d) Internal audit and reporting system. The contractor must develop 
and implement an auditing system that periodically measures the 
effectiveness of its total affirmative action program. The actions 
listed below are key to a successful affirmative action program:
    (1) Monitor records of all personnel activity, including referrals, 
placements, transfers, promotions, terminations, and compensation, at 
all levels to ensure the nondiscriminatory policy is carried out;
    (2) Require internal reporting on a scheduled basis as to the degree 
to which equal employment opportunity and organizational objectives are 
attained;
    (3) Review report results with all levels of management; and
    (4) Advise top management of program effectiveness and submit 
recommendations to improve unsatisfactory performance.