RD Instruction 1924-A

Guide 1, Attachment 1

## ADVERTISEMENT FOR BIDS

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Owner

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Address

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Separate sealed BIDS for the construction of (briefly describe

nature, scope, and major elements of the work)
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

will be received by
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

at the office of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

until \_\_\_\_\_\_\_, (Local
Time)\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, 19 \_\_\_\_\_\_, and then
at

said office publicly opened and read aloud.

The CONTRACT DOCUMENTS may be examined at the following locations:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Copies of the CONTRACT DOCUMENTS may be obtained at the office of

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ located at
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

upon payment of \$ \_\_\_\_\_\_\_ for each set.

## 1/2

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RD Instruction 1924-A

Guide 1, Attachment 1

Any BIDDER, upon returning the CONTRACT DOCUMENTS promptly and in

good condition, will be refunded the payment, and any non-bidder upon so

returning the CONTRACT DOCUMENTS will be refunded
\$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

All contracts exceeding \$10,000 shall contain a provision requiring

compliance with Executive Order 11246, entitled, \"Equal Employment

Opportunity,\" as amended by Executive Order 11375 and as supplemented
in

Department of Labor regulations (41 CFR Part 60).

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

DATE

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## 2/2

RD Instruction 1924-A

Guide 1

Attachment 2

Page 1

ATTACHMENT TO AIA DOCUMENT A701-1997, *INSTRUCTIONS TO BIDDERS*

The provisions of this Attachment shall delete, modify and supplement
the provisions contained in the \"*Instructions to Bidders*," AIA
Document A701-1997 Edition. The provisions contained in this Attachment
will supersede any conflicting provisions of the AIA Document. The term
\"Agency," as used in this Attachment, means the United States of
America, acting through the United States Department of Agriculture.

ARTICLE 2, BIDDER\'S REPRESENTATIONS

Add the following subparagraph:

2.1.5 This Bid has been arrived at independently, without consultation,
communication, or agreement as to any matter relating to this Bid with
any other Bidder or with any competitor.

ARTICLE 4, BIDDING PROCEDURES

Add the following to subparagraph 4.1.1:

Only one copy of the Bid is to be submitted.

Delete subparagraph 4.2.1 and substitute the following:

4.2.1 Each Bid must be accompanied by a Bid Bond payable to the Owner
for five percent of the total amount of the Bid.

Delete subparagraph 4.2.2 and substitute the following:

4.2.2 The Bid Bond shall be written on a form identical to that included
in the Bidding Documents, and the attorney-in-fact who executes the bond
on behalf of the surety shall affix to the bond a certified and current
copy of the power of attorney.

Add the words "payment and performance" before the word "bonds"; and add
the following to subparagraph 4.2.3:

As soon as the Bid prices have been compared, the Owner will return the
Bonds of all except the three lowest responsible Bidders. When the
Agreement is executed, the bonds of the two remaining unsuccessful
bidders will be returned. The Bid Bond of the successful Bidder will be
retained until the Payment Bond and Performance Bond have been executed
and approved, after which it will be returned.

(08-26-98) PN 296

RD Instruction 1924-A

Guide 1

Attachment 2

Page 2

Add the following to subparagraph to paragraph 4.2:

> 4.2.4 In the case of failure of the Bidder to execute the Agreement
> and obtain the Performance Bond and Payment Bond within the agreed
> time, the Owner may consider the Bidder in default, in which case the
> Bid Bond accompanying the bid shall become the property of the Owner.

Add the following subparagraphs to paragraph 4.3:

4.3.5 All applicable laws, ordinances, and the rules and regulations of
all authorities having jurisdiction over construction of the Project
shall apply to the Contract throughout.

4.3.6 The Bidder agrees to abide by the requirements under Executive
Order No. 11246, as amended, including specifically the provisions of
the Equal Opportunity Clause and the Standard Federal Equal Employment
Opportunity Construction Contract Specifications set forth in the
Supplementary Conditions.

4.3.7 Further, the Bidder agrees to abide by the requirements of section
319 of Public Law 101-121, which pertains to lobbying activities and
applies to the recipients of contracts or subcontracts that exceed
\$100,000 at any tier under a Federal loan that exceeds \$150,000 or a
Federal Grant that exceeds \$100,000. Each Bid shall be accompanied by a
completed lobbying certification form identical to that included in the
Bidding Documents.

4.3.8 The Bidder agrees to abide by the requirements under 7 C.F.R. part
3017, which pertains to the debarment or suspension of a person from
participating in a Federal program or activity. Each Bid exceeding
\$25,000 shall be accompanied by a relevant completed certifications
form identical to that included in the Bidding Documents.

Delete subparagraph 4.4.1 and substitute the following:

4.4.1 No Bidder may withdraw, modify or cancel a Bid within 60 calendar
days after the actual date of the opening thereof. Should there be
reasons why the Contract cannot be awarded within the specified period,
the time may be extended by mutual agreement between the Owner and the
Bidder, and the concurrence of the Agency.

Delete the words \", if required,\" from subparagraph 4.4.4.

RD Instruction 1924-A

Guide 1

Attachment 2

Page 3

ARTICLE 5, CONSIDERATION OF BIDS

Delete subparagraph 5.3.2 and substitute the following:

5.3.2 The Owner shall have the right to accept Alternates in the
sequence listed and to determine the low Bidder on the basis of the sum
of the Base Bid and the Alternates accepted.

ARTICLE 7, PERFORMANCE BOND AND PAYMENT BOND

Delete subparagraph 7.1.1 and substitute the following:

7.1.1 Prior to execution of the Contract, the Bidder shall furnish bonds
covering the faithful performance of the Contract and the payment of any
obligations arising thereunder in such form and amount as the Owner may
prescribe. Both bonds shall be separately written, each in the amount of
the contract sum. The cost shall be included in the Bid.

Delete subparagraph 7.1.2 and substitute the following:

7.1.2 Surety companies executing bonds must hold a certificate of
authority as an acceptable surety on Federal Bonds as listed in Treasury
Circular 570, as amended, and be authorized to transact business in the
State where the Project is located.

Delete subparagraph 7.1.3.

Delete subparagraph 7.2.1 and substitute the following:

7.2.1 The party to whom the Contract is awarded will be required to
execute the Agreement and obtain a Performance Bond and Payment Bond
within ten (10) calendar days from the date when the Notice of Award is
delivered to the Bidder. The Notice shall be accompanied by the
necessary Agreement and Bond forms.

Delete subparagraph 7.2.2 and substitute the following:

7.2.2 The bonds shall be written on forms identical to those included in
the Bidding Documents.

(NOTE: Any additional provisions that are necessary to remain effective
after execution of the Contract for Construction will be inserted here
and continue in the same format.)

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RD Instruction 1924-A

Guide 1, Attachment 3

## BID

Proposal of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
(hereinafter called \"BIDDER\"), organized and existing under the laws
of the State of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ doing business as
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\*.
To the
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
(hereinafter called \"OWNER\").

In compliance with your Advertisement for Bids, BIDDER hereby proposes
to perform all WORK for the construction of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

in strict accordance with the CONTRACT DOCUMENTS, within the time set
forth therein, and at the prices stated below.

By submission of this BID, each BIDDER certifies, and in the case of a
joint BID each party thereto certifies as to its own organization, that
this BID has been arrived at independently, without consultation,
communication, or agreement as to any matter relating to this BID with
any other BIDDER or with any competitor.

BIDDER hereby agrees to commence WORK under this contract on or before a
date to be specified in the NOTICE TO PROCEED and to fully complete the
PROJECT within \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
consecutive calendar days thereafter. BIDDER further agrees to pay as
liquidated damages, the sum of \$ \_\_\_\_\_\_\_\_ for each consecutive
calendar day thereafter as provided in Article 3 of the Owner-Contractor
Agreement.

BIDDER acknowledges receipt of the following ADDENDA:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\* Insert \"a corporation\", \"a partnership\", or \"an individual\" as
applicable.

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RD Instruction 1924-A

Guide 1, Attachment 3

BIDDER agrees to perform all the work described in the CONTRACT
DOCUMENTS for the following unit prices or lump sum:

## BID SCHEDULE

NOTE: BIDS shall include sales tax and all other applicable taxes and
fees.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

[NO.\_\_\_\_\_\_\_ITEM\_\_\_\_\_\_\_\_UNIT\_\_\_\_\_\_\_UNIT
PRICE\_\_\_\_\_\_\_AMOUNT\_\_\_\_\_\_\_TOTAL PRICE]{.underline}

## 2/3 

RD Instruction 1924-A

Guide 1, Attachment 3

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

[NO.\_\_\_\_\_\_\_ITEM\_\_\_\_\_\_\_\_UNIT\_\_\_\_\_\_\_UNIT
PRICE\_\_\_\_\_\_\_AMOUNT\_\_\_\_\_\_\_TOTAL PRICE]{.underline}

TOTAL OF BID . . . . . . . . . . . . . . . . . . . . . . . . . \$
\_\_\_\_\_\_\_\_\_

LUMP SUM PRICE (if applicable) . . . . . . . . . . . . . . . . \$
\_\_\_\_\_\_\_\_\_

Respectfully submitted:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Signature Address

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Title Date

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

License number (if applicable)

SEAL - (if BID is by a corporation)

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RD Instruction 1924-A

Guide 1, Attachment 4

## BID BOND

KNOW ALL MEN BY THESE PRESENTS, that we, the undersigned,
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
as Principal, and

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
as Surety, are

hereby held and firmly bound unto
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ as OWNER

in the penal sum of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

for the payment of which, well and truly to be made, we hereby jointly
and

severally bind ourselves, successors and assigns.

Signed, this \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ day of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, 19\_\_\_\_.

The Condition of the above obligation is such that whereas the Principal

has submitted to
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
a certain

BID, attached hereto and hereby made a part hereof enter into a contract

in writing, for the
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

NOW THEREFORE,

\(a\) If said BID shall be rejected, or

\(b\) If said BID shall be accepted and the Principal shall execute

and deliver a contract in the Form of Contract attachment hereto

(properly completed in accordance with said BID) and shall furnish a

BOND for faithful performance of said contract, and for the payment

of all persons performing labor and/or furnishing materials in

connection therewith, and shall in all other respects perform the

agreement created by the acceptance of said BID, then this obligation

shall be void, otherwise the same shall

## 1/2

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RD Instruction 1924-A

Guide 1, Attachment 4

remain in force and effect; it being expressly understood and agreed

that the liability of the Surety for any and all claims hereunder

shall, in no event, exceed the penal amount of this obligation as

herein stated.

The Surety, for value received, hereby stipulates and agrees that the
obligations of said Surety and its BOND shall be in no way impaired or
affected by any extension of the time within which the OWNER may accept
such BID; and said Surety does hereby waive notice of any such
extension.

IN WITNESS WHEREOF, the Principal and the Surety have hereunto set their
hands and seals, and such of them as are corporations have caused their
corporate seals to be hereto affixed and these presents to be signed by
their proper officers, the day and year first set forth above.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(L.S.)

Principal

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Surety

By: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

IMPORTANT - Surety companies executing BONDS must appear on the Treasury
Department\'s most current list (Circular 570 as amended) and be
authorized to transact business in the State where the project is
located. Power of Attorney must be attached.

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## 2/2

RD Instruction 1924-A

Guide 1, Attachment 5

## NOTICE OF AWARD

TO:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

PROJECT Description:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

The OWNER has considered the BID submitted by you for the above
described WORK in response to its Advertisement for Bids dated
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, 19 \_\_\_\_, and Information for
Bidders.

You are hereby notified that your BID has been accepted for items in the
amount of \$ \_\_\_\_\_\_\_\_\_\_\_\_\_.

You are required by the Information for Bidders to execute the Agreement
and furnish the required Contractor's Performance BOND, Payment BOND and
certificates of insurance within ten (10) calendar days from the date of
this Notice to you.

If you fail to execute said Agreement and to furnish said BONDS within
ten (10) days from the date of this Notice, said OWNER will be entitled
to consider all your rights arising out of the Owner's acceptance of
your BID as abandoned and as a forfeiture of your BID BOND. The OWNER
will be entitled to such other rights as may be granted by law.

You are required to return an acknowledged copy of this NOTICE OF AWARD
to the OWNER.

Dated this \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ day of
\_\_\_\_\_\_\_\_\_\_\_\_\_, 19\_\_\_\_.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Owner

By \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Title \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

ACCEPTANCE OF NOTICE

Receipt of the above NOTICE OF AWARD is hereby acknowledged

by
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

this the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ day of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, 19\_\_\_\_. By
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Title \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

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## (2-16-83) PN 869

RD Instruction 1924-A

Guide 1

Attachment 6

Page 1

ATTACHMENT TO AIA DOCUMENT A101-1997, *Standard Form of Agreement
Between Owner and Contractor*

The provisions of this Attachment shall delete, modify and supplement
the provisions contained in the "*Standard Form of Agreement Between
Owner and Contractor*," AIA Document A101-1997 Edition. The provisions
contained in this attachment shall supersede any conflicting provisions
of the AIA Document.

ARTICLE 3, DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION

> Delete paragraph 3.1 and substitute the following:
>
> 3.1 The date of commencement shall be contained in the Notice to
> Proceed.
>
> Add the following to paragraph 3.3:
>
> If the work is not substantially complete on or before this date, or
> within this period of time, or extension thereof granted by the Owner,
> damage will be sustained by the Owner and that it is and will be
> impracticable and extremely difficult to fix the actual damage which
> the Owner will sustain in the event of and by reason of such delays.
> The Contractor shall pay to the Owner liquidated damages in the sum of
> \$ \_\_\_\_\_\_\_\_\_\_\_\_\_ for each calendar day of delay. Any sums
> that may be due the Owner as liquidated damages may be deducted from
> any monies due or to become due the Contractor under the Contract or
> may be collected from the Contractor\'s surety.

ARTICLE 5, PAYMENTS

> Insert \"ten\" and \"10\" in the appropriate spaces in clauses 5.1.6.1
> and subparagraph 5.1.6.2.

Delete the last sentence of clause 5.1.6.1.

> Delete the following from clause 5.1.6.2:
>
> (or, if approved in advance by the Owner, suitably stored off the site
> at a location agreed upon in writing)

Delete subparagraph 5.1.8.

(08-26-98) PN 296

RD Instruction 1924-A

Guide 1, Attachment 6

Page 2

ARTICLE 8, ENUMERATION OF CONTRACT DOCUMENTS

The following Documents should be referenced, if applicable:

> Subparagraph 8.1.3:
>
> Attachment to the *Standard Form of Agreement Between Owner and*
>
> *Contractor* (RD Instruction 1924-A, Guide 1, Attachment 6)
>
> *General Conditions of the Contract for Construction*, AIA A201-1997
>
> Attachment to the *General Conditions of the Contract for*
>
> *Construction* (RD Instruction 1924-A, Guide 1, Attachment 10)
>
> Special Conditions
>
> Subparagraph 8.1.7:
>
> Advertisement for Bids (RD Instruction 1924-A, Guide 1,
>
> Attachment 1)
>
> *Instructions to Bidders*, AIA A701.1997
>
> Attachment to the *Instructions to Bidders* (RD Instruction 1924-A,
>
> Guide 1, Attachment 2)
>
> Bid (RD Instruction 1924-A, Guide 1, Attachment 3)
>
> Bid Bond (RD Instruction 1924-A, Guide 1, Attachment 4)
>
> Compliance Statement (Form RD 400-6)
>
> Payment Bond (RD Instruction 1924-A, Exhibit F)
>
> Performance Bond (RD Instruction 1924-A, Exhibit G)
>
> Notice of Award (RD Instruction 1924-A, Guide 1, Attachment 5)
>
> Identity of Interest (IOI) Disclosure Certificate (Form

RD 1944-30)

> Identity of Interest (IOI) Qualification (Form RD 1944-31)
>
> Contract Concurrence (RD Instruction 1924-A, Guide 1,
>
> Attachment 8)
>
> Labor Standards Provisions (RD Instruction 1940-C, Exhibit A)
>
> Certification Regarding Debarment, Suspension, Ineligibility and
>
> Voluntary Exclusion - Lower Tier Covered Transactions (Form
>
> AD 1048)
>
> Standard Form-LLL, \"Disclosure of Lobbying Activities\" (RD
>
> Instruction 1940-Q, Exhibit A)
>
> Certification for Contracts, Grants and Loans (RD Instruction\
> 1940-Q, Exhibit A-1)

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RD Instruction 1924-A

Guide 1, Attachment 7

CERTIFICATE OF OWNER\'S ATTORNEY

I, the undersigned,
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,
the duly authorized and acting legal representative of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, do hereby certify as
follows:

I have examined the attached Contract(s) and Performance and Payment
Bond(s) and the manner of execution thereof, and I am of the opinion
that each of the aforesaid agreements has been duly executed by the
proper parties thereto acting through their duly authorized
representatives; that said representatives have full power and authority
to execute said agreements on behalf of the respective parties named
thereon; and that the foregoing agreements constitute valid and legally
binding obligations upon the parties executing the same in accordance
with terms, conditions, and provisions thereof.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Date:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(NOTE: Delete phrase \"Performance and Payment Bonds\" when not
applicable.)

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RD Instruction 1924-A

Guide 1

Attachment 8

CONCURRENCE

The United States of America, as potential lender or insurer of funds to
defray the costs of this Contract, and without liability for any
payments thereunder, hereby concurs in the form, content, and execution
of this Contract.

U.S. Department of Agriculture

Rural Development

Rural Housing Service

Date Rural Development Official

Title

This Contract shall not be in full force and effect until concurred with
by the State Director or the State Director\'s delegate, Rural
Development, U. S. Department of Agriculture.

## o0o

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Guide 1, Attachment 9

## NOTICE TO PROCEED

TO: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
DATE:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Project:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

You are hereby notified to commence WORK in accordance with the
Agreement dated \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, 19\_\_\_, on or before
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, 19\_\_\_, and you are to complete
the WORK within \_\_\_\_\_\_\_\_\_\_\_\_ consecutive calendar days
thereafter. The date of completion of all WORK is therefore
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, 19\_\_\_.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Owner

By \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Title \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

ACCEPTANCE OF NOTICE

Receipt of the above NOTICE TO PRO-

CEED is hereby acknowledged by \_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,

This the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, 19\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

By
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Title \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Employer Identification

Number \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

## oOo

## 1/1

(2-16-83) PN 869

RD Instruction 1924-A

Guide 1

Attachment 10

Page 1

ATTACHMENT TO AIA DOCUMENT A201-1997*, General Conditions of the
Contract for Construction*

The provisions of this attachment shall delete, modify and supplement
the provisions contained in the \"*General Conditions of the Contract
for Construction*," AIA Document A201-1997 Edition. The provisions
contained in this attachment will supersede any conflicting provisions
of the AIA Document. The term \"Agency," as used in this Attachment,
shall mean the United States of America, acting through the United
States Department of Agriculture.

ARTICLE 1, GENERAL PROVISIONS

Add the following subparagraph:

> 1.2.4 Concurrence of the Contract by the Agency is required before it
> is effective and the \"Concurrence\" statement shall be attached to
> and made a part of the Agreement.

ARTICLE 2, OWNER

> Delete subparagraph 2.2.5 and substitute the following:
>
> 2.2.5 The Contractor will be furnished, free of charge, five (5)
> copies of the Drawings and Projects Manuals necessary for execution of
> the Work. Additional copies will be available from the Architect at
> the cost of reproduction.

ARTICLE 3, CONTRACTOR

> Delete subparagraph 3.7.1 and substitute the following:
>
> The Owner shall secure and pay for the health and environmental impact
> fees due to water and sewer connections, and the zoning regulation
> fees and permits. The Contractor shall secure and pay for the
> building, mechanical, electrical, and plumbing permits and other
> governmental fees, licenses, and inspections necessary for proper
> execution of and completion of the Contract which are legally required
> when bids are received or negotiations concluded.

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ARTICLE 4, ADMINISTRATION OF THE CONTRACT

> Delete the last sentence of subparagraph 4.1.1 and substitute the
> following:
>
> The term \"Architect\" means the Architect or the Engineer, when the
> nature of the work is within the authority granted engineers by the
> State licensure law, or an authorized representative.
>
> Add the words \"may be\" after \"on the parties but\" in the last
> sentence of subparagraph 4.4.5.
>
> Replace the word \"shall\" with the word \"may\" in the first and
> second sentences of subparagraph 4.6.1.
>
> Delete subparagraph 4.6.2 and substitute the following:
>
> 4.6.2 The arbitration provisions of this section may be initiated by
> either party to this Contract by filing with the other party and the
> Architect a written request for arbitration. The other party may
> accept or reject the request by filing a written answering statement
> with the requesting party and the Architect within fourteen (14)
> calendar days of receipt of such request. If the request is accepted
> the provisions of this section will apply. If the request is rejected
> or an answering statement is not filed within the fourteen (14) day
> period, the provisions of this section will not apply.
>
> 4.6.2.1 Within fourteen (14) calendar days or any mutually agreeable
> time period thereafter, each party to this Contract will appoint one
> arbitrator. Within fourteen (14) calendar days or any mutually
> agreeable time period thereafter, the two arbitrators will select a
> third arbitrator. Failure to appoint the arbitrator(s) within the
> mutually agreeable time period will terminate further actions under
> this section.
>
> 4.6.2.2 The arbitrators will select a hearing location as close to the
> Owner\'s locale as possible.
>
> 4.6.2.3 The Procedure for conducting the hearings will follow the
> Construction Industry Arbitration Rules of the American Arbitration
> Association.

Delete subparagraphs 4.6.3, 4.6.4 and 4.6.5.

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ARTICLE 5, SUBCONTRACTORS

> Delete the first sentence of subparagraph 5.2.2 and substitute the
> following:
>
> The Contractor shall not contract with any party who is suspended or
> debarred by any Federal government agency from participating in
> Federally assisted construction projects or to whom the Owner or the
> Architect has made reasonable and timely objection.

ARTICLE 7, CHANGES IN THE WORK

Delete the words \", Construction Change Directive\" from subparagraph
7.1.1.

Insert the words \", Agency \" after the word \"Owner," and delete the
words \"; a Construction Change Directive requires agreement by the
Owner and Architect and may or may not be agreed to by the Contractor\"
in subparagraph 7.1.2.

Delete the words \"Construction Change Directive\" from subparagraph
7.1.3.

Delete subparagraph 7.2.1 and substitute the following:

7.2.1 A Change Order is a written order to the Contractor utilizing Form
RD 1924-7, \"Contract Change Order,\" signed by the Owner, Architect,
Contractor, and the Agency representative. It is issued after the
execution of the Contract, authorizing a change in the Work or an
adjustment in the Contract Sum or the Contract Time. The Contract Sum
and the Contract Time may be changed only by Change Order. The
Contractor\'s signing of a Change Order indicates complete agreement
therein. When the Contract Sum is based on unit price, a unit bid
quantity may be increased or decreased by a maximum of twenty percent
(20%) without invalidating the unit price.

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Delete subparagraph 7.2.2 and substitute the following:

7.2.2 Methods used in determining adjustments to the Contract Sum may
include any of the following:

.1 Mutual acceptance of a lump sum properly

itemized and supported by sufficient

substantiating data to permit evaluating.

.2 Unit prices stated in the Contract Documents

or subsequently agreed upon.

Delete paragraph 7.3 in its entirety.

ARTICLE 8, TIME

Add the following subparagraphs:

8.2.4 The Notice to Proceed shall be issued within twenty (20) calendar
days of the execution of the Agreement by the Owner. Should there be
reasons why the Notice to Proceed cannot be issued within such period,
the time may be extended by mutual agreement the Owner and Contractor,
with the concurrence of the Agency. If the Notice to Proceed has not
been issued within the twenty (20) calendar day period or within the
period mutually agreed, the Contractor may terminate the Agreement
without further liability on the part of either party.

8.3.4 As outlined in Article 3 of the Agreement, the Contractor agrees
to pay liquidated damages to the Owner for each calendar day the
Contractor shall be in default.

ARTICLE 9, PAYMENTS AND COMPLETION

Delete clause 9.3.1.1 and substitute the following:

9.3.1.1 Work performed and materials supplied under a Change Order may
be included for payment only after the Change Order has been approved by
all appropriate parties, including the Agency.

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Attachment 10

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Delete Subparagraph 9.3.2 and substitute the following:

9.3.2 Unless otherwise provided in the Contract documents, payments
shall be made on account of materials and equipment delivered and
suitably stored at the site for subsequent incorporation in the Work.
Payment shall be conditioned upon compliance by the Contractor with
procedures satisfactory to the Owner to establish the Owner\'s title to
such materials and equipment or otherwise protect the Owner\'s interest.

Add the words \", using AIA Document 702, \'Application and Certificate
for Payment\' or Form RD 1924-18, \'Partial Payment Estimate\',\" after
\"Certificate for Payment\" in subparagraph 9.4.1.

Add the following subparagraph:

9.6.8 No progress payments will be made that deplete the retainage, nor
place in escrow any funds that are required for retainage, nor invest
the retainage for the benefit of the Contractor. Retainage will not be
adjusted until after construction is substantially complete.

Replace the word \"seven\" with the words \"thirty (30)\" in the first
sentence , third line of subparagraph 9.7.1.

Add the words \", in collaboration with the Agency,\" after \"prepare\"
in the first sentence of subparagraph 9.8.4.

Delete subparagraph 9.8.5 and substitute the following:

9.8.5 When the Work has been substantially completed, except for Work
which cannot be completed because of weather conditions, lack of
materials or other reasons, which, in the judgement of the Owner, are
valid reasons for non-completion, the Owner may make additional
payments, retaining at all times an amount sufficient to cover the
estimated cost of the Work still to be completed.

Delete subparagraphs 9.9.1 through 9.9.3 and substitute the following:

9.9.1 The Contractor agrees to the use and occupancy of a portion or
unit of the Project before formal acceptance by the Owner under the
following conditions:

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.1 A "Certificate of Substantial Completion" shall be prepared and
executed as provided in subparagraph 9.8.4, except that when, in the
opinion of the Architect, the Contractor is chargeable with unwarranted
delay in completing the Work or other Contract requirements, the
signature of the Contractor will not be required. The Certificate of
Substantial Completion shall be accompanied by a written endorsement of
the Contractor\'s insurance carrier and surety permitting occupancy by
the Owner during the remaining period of the Project Work. Occupancy by
the Owner shall also be authorized by public authorities having
jurisdiction over the Work.

.2 Occupancy by the Owner shall not be construed by the Contractor as
being an acceptance of that part of the Project to be occupied.

.3 The Contractor shall not be held responsible for any damage to the
occupied part of the Project resulting from the Owner\'s occupancy.

.4 Occupancy by the Owner shall not be deemed to constitute a waiver of
existing claims in behalf of the Owner or Contractor against each other.

1.5 If the Project consists of more than one building, and one of the
buildings is to be occupied, the Owner, prior to occupancy of that
building, shall secure permanent property insurance on the building to
be occupied and necessary permits which may be required for use and
occupancy.

9.9.2 With the exception of clause 9.9.1.5, use and occupancy by the
Owner prior to Project acceptance does not relieve the Contractor of
responsibility to maintain all insurance and bonds required of the
Contractor under the Contract until the Project is completed and
accepted by the Owner.

Delete the second and third sentences of subparagraph 9.10.2.

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Attachment 10

Page 7

ARTICLE 11, INSURANCE AND BONDS

Replace the words \"the Contract Documents\" with the words
\"subparagraph 11.1.4\" in the first sentence of subparagraph 11.1.2.

Add the following subparagraph:

.1 Insurance shall be:

.2 Written with a limit of liability of not less than \$500,000 for all
damages arising out of bodily injury, including death, at any time
resulting therefrom, sustained by any one person in any one accident;
and a limit of liability of not less than \$500,000 aggregate for any
such damages sustained by two or more persons in any one accident.
Insurance shall be written with a limit of liability of not less than
\$200,000 for all property damage sustained by any one person in any one
accident; and a limit of liability of not less than \$200,000 aggregate
for any such damage sustained by two or more persons in any one
accident, or,

.2 Written with a combined bodily injury and damage liability of not
less than \$700,000 per occurrence; and with an aggregate of not less
than \$700,000 per occurrence.

Add the following sentence to the end of subparagraph 11.4.1:

The policy shall name as the insured the Contractor and the Owner.

Insert the word \"Owner\" after the words \"protect the interests of
the\" in the second sentence of clause 11.4.1.2.

Add the following sentence to the end of subparagraph 11.4.6:

The provisions of this subparagraph shall apply to the Contractor if the
Contractor purchases and maintains said insurance coverage.

Delete subparagraph 11.4.7 in its entirety.

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Guide 1

Attachment 10

Page 8

Delete subparagraph 11.5.1 and substitute the following:

11.5.1 The Contractor shall furnish the Owner bonds covering faithful
performance of the Contract and payment of obligations arising
thereunder within ten (10) calendar days after receipt of the Notice of
Award. The surety company executing the bonds must hold a certificate of
authority as an acceptable surety on Federal bonds as listed in Treasury
Circular 570, and be authorized to transact business in the State where
the Project is located. The bonds (using the forms included in the
Bidding

Documents) shall each be equal to the amount of the Contract Sum. The
cost of these bonds shall be included in the Contract Sum.

Add the following clauses:

11.5.1.1 The Contractor shall require the attorney-in-fact who executes
the required bonds on behalf of the surety to affix thereto a certified
and current power of attorney.

11.5.1.2 If at any time a surety on any such bond is declared bankrupt
or loses its right to do business in the State in which the work is to
be performed or is removed from the list of surety companies accepted on
Federal Bonds, the Contractor shall within ten (10) calendar days after
notice from the Owner to do so, substitute an acceptable bond in such
form and sum and signed by such other surety or sureties as may be
satisfactory to the Owner. The premiums of such bond shall be paid by
any Contractor. No further payment shall be deemed due nor shall be made
until the new surety or sureties shall have furnished an acceptable bond
to the Owner.

Add the following paragraph:

11.6 LATENT DEFECTS PROTECTION

11.6.1 If the Contractor does not furnish payment and performance bonds,
he or she shall agree to provide surety or guarantee acceptable to the
Owner and the Agency against latent obligations and defects in
connection with the construction.

.1 The Contractor shall furnish a properly executed corporate

latent defects bond, a maintenance bond, an unconditional and

irrevocable letter of credit, or a cash deposit into a

supervised bank account. Whichever instrument is used shall be

in the amount of 10 percent of the Contract Sum.

RD Instruction 1924-A

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.2 The period of protection against latent obligations and

defects shall be one year from the final acceptance of Work by

the Owner and the Agency.

.3 Final payment to the Contractor shall not be issued until the

provisions of clause 11.6.1.1 have been met.

ARTICLE 13, MISCELLANEOUS PROVISIONS

Add the following paragraphs:

13.8 FEDERAL INSPECTION

13.8.1 The authorized representatives and agents of the Federal

Government shall be permitted to inspect all work, materials, payrolls,
records of personnel, invoices of materials, and other relevant data and
records.

13.9 LANDS AND RIGHTS-OF WAY

13.9.1 Prior to the start of construction, the Owner shall obtain all
lands and rights-of-way necessary for the execution and completion of
work to be performed under this contract.

13.10 EQUAL OPPORTUNITY REQUIREMENTS

Non-discrimination in Employment by Federally Assisted Construction
Contractors, by Executive Order 11246.

13.10.1 This section summarizes Executive Order 11246, which prohibits
employment discrimination and requires employers holding non-exempt
Federal contracts and subcontracts and federally-assisted construction
contracts and subcontracts in excess of \$10,000 to take affirmative
action to ensure equal employment opportunity without regard to race,
color, religion, sex, or national origin. The Executive Order requires,
as a condition for the approval of any federally assisted construction
contract, that the applicant incorporate nondiscrimination and
affirmative action clauses into its non-exempt federally assisted
construction contracts.

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13.10.2 Executive Order 11246, is administered and enforced by the
Office of Federal Contract Compliance Programs (OFCCP), an agency in the
U.S. Department of Labor\'s Employment Standards Administration. OFCCP
has issued regulations at 41 C.F.R. chapter 60 implementing the
Executive Order. The regulations at 41 C.F.R. part 60-4 establish the
procedures which the Agency, as an administering agency, must follow
when making grants, contracts, loans, insurance or guarantees involving
federally assisted construction which is not exempt from the
requirements of Executive Order 11246. The regulations which apply to
Federal or federally assisted construction contractors also are
published at 41 C.F.R. part 60-4.

13.10.3 OFCCP has established numerical goals for minority and female
utilization in construction work. The goals are expressed in percentage
terms for the contractor\'s aggregate workforce in each trade. OFCCP has
set goals for minority utilization based on the percentage of minorities
in the civilian labor force in the relevant area. There is a single
nationwide goal of 6.9 percent for utilization of women. The goals apply
to all construction work in the covered geographic area, whether or not
it is federal, federally assisted or non-federal. A notice advises
bidders of the applicable goals for the area where the project is to be
located.

13.10.4 [Application]{.underline}. This section applies to all of a
construction contractor\'s or subcontractor\'s employees who are engaged
in on-site construction including those construction employees who work
on a non-Federal or non-Federally assisted construction site.

13.10.4.1 Agency officials will notify the appropriate Regional Director
of OFCCP that an Agency financed construction contract has been awarded,
and that the equal opportunity clauses are included in the contract
documents.

13.10.4.2 The Regional Director, OFCCP-DOL, will enforce the
non-discrimination requirements of Executive Order 11246.

13.10.5 The prospective contractor or subcontractor must comply with the
Immigration Reform and Control Act of 1986, by completing and retaining
Form I-9, \"Employment Eligibility Verification,\" for employees hired.
This form is available from the Immigration and Naturalization Service,
and Department of Justice.

13.10.6 The prospective contractor or subcontractor must submit Form RD
400-6, \"Compliance Statement,\" to the applicant and an Agency official
as part of the bid package, prior to any contract

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bid negotiations and comply with the Executive Order 11246 as stated in
the contract documents.

13.11 STATUTES

13.11.1 The Contractor and each Subcontractor shall comply with the
following statutes (and with regulations issued pursuant thereto, which
are incorporated herein by reference):

13.11.1.1 Copeland Anti-Kickback Act (18 U.S.C. 874) as supplemented in
Department of Labor regulations (29 C.F.R. part 3). This Act provides
that each Contractor shall be prohibited from inducing, by any means,
any person in connection with construction to give up any part of the
compensation to which the person is otherwise entitled.

13.11.1.2 Clean Air Act (42 U.S.C. 7414), section 114, and Water
Pollution Control Act (33 U.S.C. 1813), section 308. Under Executive
Order 11738 and Environmental Protection Agency (EPA) regulations 40
C.F.R. part 15, all Contracts in excess of \$100,000 are required to
comply with these Acts. The Acts require the Contractor to:

.1 Notify the Owner of the receipt of any communication from EPA
indicating that a facility to be utilized in the performance of the
Contract is under consideration to be listed on the EPA list of
Violating Facilities.

.2 Certify that any facility to be utilized in the performance of any
nonexempt Contractor or Subcontractor is not listed on the EPA list of
Violating Facilities as of the date of the Contract Award.

.3 Include or cause to be included the above criteria and requirements
of paragraphs .1 and .2 in every nonexempt subcontract, and that the
Contractor will take such action as the Government may direct as a means
of enforcing such provisions.

> 13.11.1.3 Davis-Bacon Act(40 U.S.C. 276a) as supplemented in
> Department of Labor regulations (29 C.F.R. part 5). If applicable, the
> Contractor must comply with the minimum rates for wages for laborers
> and mechanics as determined by the Secretary of Labor in accordance
> with the provision of this Act.

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> 13.11.1.4 Restrictions on Lobbying (Public Law 101-121, section 319)
> as supplemented in Department of Agriculture regulations (7 C.F.R.
> part 3018). This statute applies to the recipients of contracts or
> subcontracts that exceed \$100,000 at any tier under a Federal loan
> that exceeds \$150,000 or a Federal grant that exceeds \$100,000. If
> applicable, the Contractor must complete a certification form on
> lobbying activities related to the specific Federal loan or grant that
> is a funding source for this contract. The certification and
> disclosure forms shall be provided by the Owner.
>
> 13.12 RECORDS
>
> 13.12.1 If the Contract is based on a negotiated Bid, the Owner, the
> Agency, the Comptroller General of the United States, or any of their
> duly authorized representatives, shall have access to any books,
> documents, papers, and records of the Contractor which are pertinent
> to a specific Federal loan program for the purpose of making audit,
> examination, excerpts, and transcriptions. The Contractor shall
> maintain records for at least three years after the Owner makes final
> payment and all other pending matters are closed.
>
> 13.13 IDENTITY OF INTEREST
>
> 13.13.1 The Owner will complete and sign Form RD 1944-30, \"Identity
> of Interest (IOI) Disclosure Certificate.\" If applicable, the
> Contractor or any Subcontractor, Material Supplier, or Equipment
> Lessor sharing an identity of interest will, prior to receipt of any
> payment, complete and sign Form RD 1944-31, \"Identity of Interest
> (IOI) Qualification.\"
>
> 13.13.2 If and when an identity of interest exists, the Contractor,
> Subcontractor, Material Suppliers, or Equipment Lessor:
>
> 13.13.2.1 Will, prior to receipt of any payment, provide the Owner and
> the Agency a written assertion that it has an accounting system
> suitably designed to provide for a line-item basis comparison of the
> actual cost with the estimated cost.
>
> 13.13.2.2 Will, prior to receipt of any payment, provide the Owner and
> the Agency with a detailed breakdown of the estimated cost amount for
> evaluation, using Form RD 1924-13, \"Estimate and Certificate of
> Actual Cost.\"

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> 13.13.2.3 Will deduct any discounts or rebates from invoices provided
> to the Owner for payment. Any discounts or rebates received on
> invoices already paid by the Owner will be refunded to the Owner or
> subtracted from any payment retainage.
>
> 13.13.2.4 Will not be entitled to receive payment for general
> overhead, profit, or general requirements, respectively, in excess of
> the amounts represented on the estimate of cost breakdown in
> accordance with clause 13.13.2.2.
>
> 13.13.2.5 Will, prior to receipt of final payment, provide the Owner
> and the Agency with a detailed breakdown of the actual cost compared
> to the estimated cost, using Form RD 1924-13. When required, the
> actual cost will be audited by a Certified Public Accountant, or
> Licensed Public Accountant licensed on or before December 31, 1970,
> who will provide an opinion concerning whether the actual construction
> costs present fairly the costs of construction in conformity with
> eligible construction costs as prescribed in Rural Development
> regulations.
>
> 13.13.2.6 Will, prior to receipt of final payment, provide the Owner
> and the Agency with documentation on all Form RD 1924-13 actual cost
> line items that are a minimum of fifteen percent (15%) higher or lower
> than the estimated costs. The documentation will provide justification
> for the deviations.
>
> 13.13.3 If and when an identity of interest exists between the Owner
> and Contractor, the Contractor is entitled to receive a builder\'s fee
> (general overhead and profit) only when the highest subcontract Sum is
> no more than fifty percent (50%) of the Contract Sum, and the total of
> the highest three Subcontract Sums is no more than seventy-five
> percent (75%) of the Contract Sum. Any payments made to the Contractor
> for a builder\'s fee to which contractor is not entitled will be
> refunded to the Owner or subtracted from any payment retainage.

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> 13.14 ENVIRONMENTAL REQUIREMENTS
>
> 13.14.1 Mitigation Measures - The contractor shall comply with
> applicable mitigation measures established in the environmental
> assessment for the project. These may be obtained from the Agency
> representative.
>
> 13.14.2 Endangered Species - The Contractor shall comply with the
> Endangered Species Act. Should any evidence of the presence of
> endangered or threatened species or their critical habitat be brought
> to the attention of the Contractor, the Contractor will immediately
> report this evidence to the Architect and the Agency
>
> representative. Construction shall be halted pending the notification
> process and further directions issued by the Agency after consultation
> with the U.S. Fish and Wildlife Service.
>
> 13.14.3 The Contractor, when constructing a Project involving
> trenching, excavating, or other earth moving activity, shall comply
> with the following environmental constraints:
>
> 13.14.3.1 Historic Preservation - Any excavation or other earth moving
> activity by the Contractor that uncovers a historical or
> archaeological artifact shall be immediately reported to the Architect
> and the Agency representative. Construction shall be halted pending
> the notification process and further directions issued by the Agency
> after consultation with the State Historic Preservation Officer or
> other appropriate historic preservation official.
>
> 13.14.3.2 Human Remains and Cultural Items - Any excavation or other
> earth moving activity by the Contractor that uncovers human remains or
> cultural items shall be immediately reported to the Architect and the
> Agency representative. Construction shall be halted pending the
> notification process and further directions issued by the Agency after
> consultation with the appropriate authorities.
>
> 13.14.3.3 Paleontology - Any excavation or other earth moving activity
> by the Contractor that uncovers a fossil or other paleontological
> materials that may have scientific significance shall be immediately
> reported to the Architect and the Agency representative. Construction
> shall be halted pending the notification process and further
> directions issued by the Agency after consultation with appropriate
> authorities.

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> 13.14.3.4 Wetlands - The Contractor, when disposing of excess, spoil,
> or other construction materials on public or private property, will
> not fill in wetlands.
>
> 13.14.3.5 Floodplains - The Contractor, when disposing of excess,
> spoil, or other construction materials on public or private property,
> will not fill in 100-year floodplain areas delineated on the latest
> Federal Emergency Management Administration floodplain maps.
>
> 13.14.4 Lead-Based Paint - The Contractor and Owner shall comply with
> applicable Agency requirements of the Lead-Based Paint Poisoning
> Prevention Act, as amended (42 U.S.C. 4821), and the Residential
> Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851) for
> rehabilitation work on residential property built prior to 1978.
>
> 13.15 DEBARMENT AND SUSPENSION
>
> 13.15.1 The Contractor shall comply with the requirements of 7 C.F.R.
> part 3017, which pertains to the debarment or suspension of a person
> from participating in a Federal program or activity.

O0o

(08-26-98) PN 296

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