The First Alabama Bank of Montgomery was a party to various contracts with the United States in which it agreed to be bound by the terms of Executive Order 11246. The bank formulated an affirmative action plan. The Office of Federal Contract Compliance Programs notified First Alabama that it wanted to review the compliance with Executive Order 11246, Section 503 of the Rehabilitation Act of 1973, and Section 402 of the Vietnam Veterans Readjustment Assistance Act of 1974. Accordingly, the OFCCP asked the bank to submit a copy of its affirmative action plan and other supporting documentation.

The bank refused to supply the requested information or to allow an OFCCP compliance officer to conduct an on-site review. The bank stated that it had undergone three compliance reviews under Executive Order 11246 in the last 10 years and had been found to be in compliance each time. Furthermore, the bank stated that it had been a defendant in a 10-year race discrimination action under Title VII during which it had filed quarterly reports with the court. The litigation had ended with a finding by the court that the bank did not discriminate against blacks in its hiring practices.

Given the bank's refusal to comply, the Department of Labor issued a complaint against the bank, asking that First Alabama be debarred from receiving government contracts until it convinced the Secretary of Labor that it was in compliance with the affirmative action obligations of Executive Order 11246. After notice and hearing, the Secretary's complaint was sustained and First Alabama was debarred.

Citing its compliance history and the favorable decision in the Title VII case, First Alabama sought judicial review of the debarment in district court.

Should the debarment decision be upheld as proper? If so, what must First Alabama do to renew its eligibility as a government contractor? [First Alabama Bank of Montgomery, N.A. v. Donovan, 30 FEP 4448 (11th Cir.)]