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Statement of Need: Parts of the regulations implementing Executive Order 11246 need to be revised to reflect changes in the law that have occurred over time, streamlined, and clarified. Executive Order 11246 requires all Federal contractors and subcontractors and federally assisted construction contractors and subcontractors to apply a policy of nondiscrimination and affirmative action in employment with respect to race, color, religion, sex, and national origin. The regulatory revisions are necessary in order to allow the Department of Labor (DOL) to effectively and efficiently enforce the provisions of the Order. As a first step in updating its Executive Order 11246 regulations, the Department intends to propose changes to the provisions that govern the pre-award review requirements; recordkeeping and record retention requirements; certification requirements; and related provisions. In addition, revisions will be made that will conform Executive Order 11246 regulations to the recent changes made in the Department's regulations implementing Section 503 of the Rehabilitation Act. ^PA second phase of revision will contain proposals to change provisions that govern requirements for written affirmative action plans and the provisions concerning contractor evaluation procedures.

Alternatives: After careful review, it was decided that the most effective way to improve compliance with the Executive Order 11246 provisions, and reduce burdens on compliant contractors, was to propose revisions to these regulations. Administrative actions alone could not produce the desired results. A determination was also made to publish revisions to the remaining regulatory provisions of the Executive Order at a later date so that careful consideration can be given to what changes are needed in each of the parts of the regulations.

Anticipated Costs and Benefits: It is anticipated that the net effect of the proposed changes will be an increase in the rate of compliance with the nondiscrimination and affirmative action requirements of Executive Order 11246 and a reduction in compliance costs to Federal contractors. The Department will also be able to employ its resources more efficiently and more effectively.

Risks: An assessment of the magnitude of the risk addressed by this action and how it relates to other risks within the jurisdiction of DOL will be prepared once decisions are reached on specific proposed changes in the Executive Order 11246 regulations.