COs must determine how the contractor processes applications, union referrals and walk-in applicants. They must determine if the contractor is disproportionately rejecting qualified minorities and women. COs must also determine the contractor’s reasons for the rejections. When selection procedures are found to have an adverse impact, COs must refer to the procedures discussed in FCCM Chapter 1 for additional guidance.202
Like supply and service evaluations, COs will analyze the contractor’s hiring, promotions and separations, as well as conduct a compensation analysis when reviewing the contractor’s employment activity. For guidance on conducting the compensation analysis, see FCCM 1P. The findings of the analyses must be included in the Narrative Summary of the Construction SCER, with supporting documents attached.
If the project is located on or near an Indian reservation, the CO should, during a review of employment activity records, inquire if the contractor has extended a publicly announced preference in employment to Indians living on or near the Indian reservation. This hiring preference is permitted under Executive Order 11246. However, contractors and subcontractors extending such a preference shall not discriminate among Indians on the basis of religion, sex, or tribal affiliation, and use of such a preference does not excuse a contractor from complying with the other requirements in 41 CFR Chapter 60.203
202. COs should be aware, however, that the adverse impact guidance discussed in FCCM 2M, is based on the UGESP recordkeeping requirements for contractors with 100 or more employees. As most construction contractors have smaller workforces, they would instead be subject to the simplified recordkeeping requirements at 41 CFR 60-3.15(A)(1) that apply to contractors with less than 100 employees.
203. 41 CFR 60-1.5(a)(7).