Answered on October 5, 2016
First, check to make sure that your contract falls within the jurisdictional thresholds of EO 11246, VEVRAA, and Section 503. Each of these regulations requires the incorporation of an EO clause in all covered subcontracts to make sure that the nondiscrimination and affirmative action obligations flow down to subcontractors. You can combine and incorporate these into the subcontract by reference, but you will have to use the following language, in bold text, after you cite the regulations, and preserve the prescribed content of the veteran and disability EO “incorporation by reference” clauses:
This contractor and subcontractor shall abide by the requirements of 41 CFR 60–1.4(a), 60–300.5(a) and 60–741.5(a). These regulations prohibit discrimination against qualified individuals based on their status as protected veterans or individuals with disabilities, and prohibit discrimination against all individuals based on their race, color, religion, sex, sexual orientation, gender identity or national origin. Moreover, these regulations require that covered prime contractors and subcontractors take affirmative action to employ and advance in employment individuals without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, disability or veteran status.
A similar question on the EO clause has been answered in this forum by Bill Osterndorf before. I would encourage you to check out his response as well. You can do a quick search for the related question by entering “EO clause” in the keywords field at the top of this page.