An affirmative action requirement for government contractors imposed in 1974 by the Office of Federal Contract Compliance Programs (OFCCP) of the U.S. Department of Labor is reviewed from the point of view of a government contractor, especially an institution of higher education. The eight factor analysis requirement is designed to provide the numerical availability standard against which the current utilization of minorities and females by job groups is compared, and to provide the basis of setting specific numerical hiring goals and timetables that are required in all affirmative action programs under current regulations. Seven specific issues regarding the eight factor analysis, which were announced in July 1981 for public comment, are examined, including: the question of which factors should be retained, altered, or dropped, and the usefulness of 1980 Census data for incorporation into the analysis of availability. It is proposed that the eight factor analysis requirement be eliminated and that revised regulations should provide: (1) that a contractor will perform a utilization and availability analysis of the job groups in its work force; (2) that availability estimates will be based primarily upon the principle of possession of requisite skills; (3) that such estimates will be determined by the contractor using documented and verifiable data; and (4) that such estimates may be subject to review for reasonableness by OFCCP. OFCCP should concentrate on developing national and state data for use by contractors as guidelines in determining availability estimates relevant to their workforces. An example of a university's numerical calculations required by OFCCP to derive availability estimates is appended. (SW)