PART 4

SELECTION AND AWARD PROCESS

4.1 SELECTION OF RECIPIENTS [1](#selection-of-recipients)

4.1.1 Awards to Federal Employees and Annuitants
[2](#awards-to-federal-employees-and-annuitants)

4.1.2 Small and Disadvantaged Business Participation
[2](#small-and-disadvantaged-business-participation)

4.2 APPLICANT RESPONSIBILITY [2](#applicant-responsibility)

4.3 SELECTION OF AWARD INSTRUMENT [2](#selection-of-award-instrument)

4.4 NEGOTIATIONS [3](#negotiations)

4.4.1 Negotiation of Indirect Cost Rates
[3](#__RefHeading___Toc81888275)

4.5 FUNDING AND EFFECTIVE PERIOD [3](#funding-and-effective-period)

4.5.1 Pre-Award Costs [4](#pre-award-costs)

4.6 PAYMENT [4](#payment)

4.6.1 Types of Payments [4](#types-of-payments)

4.6.1.1 Determining the Type of Payment
[4](#determining-the-type-of-payment)

4.6.1.2 Advance Payments [4](#advance-payments)

4.6.1.3 Reimbursement Payments [5](#reimbursement-payments)

4.6.2 Method of Payment [5](#method-of-payment)

4.6.3 Form of Payment [5](#form-of-payment)

4.7 PROGRAM INCOME [5](#__RefHeading___Toc81888285)

4.8 OBLIGATION AND ACCEPTANCE OF AWARD
[5](#obligation-and-acceptance-of-award)

4.9 PREPARATION OF AWARD INSTRUMENT
[6](#preparation-of-award-instrument)

4.10 CONTENTS OF AWARDS [6](#contents-of-awards)

4.11 NOTIFICATIONS [9](#notifications)

4.11.1 Notification Prior to Large Awards
[9](#notification-prior-to-large-awards)

4.11.2 Notification of Unsuccessful Applicants and Debriefings
[9](#notification-of-unsuccessful-applicants-and-debriefings)

4.11.3 Reporting Award Data [10](#reporting-award-data)

4.12 FINANCIAL ASSISTANCE FILES [10](#financial-assistance-files)

4.13 DOCUMENT OF AWARD DECISION (DAD)
[10](#document-of-award-decision-dad)

4.14 RATIFICATION OF UNAUTHORIZED AWARDS
[11](#ratification-of-unauthorized-awards)

4.15 TEXT OF CLAUSES [12](#text-of-clauses)

# 4.1 SELECTION OF RECIPIENTS

**POLICY:** The program office has primary responsibility for
identifying the business requirements of the program and for selecting
potential recipients. Recipients should be selected based on the
likelihood of successfully meeting the financial and program goals of
the project. The FAO has primary responsibility for assuring a
reasonable selection process and for the administrative aspects of
implementing the program decision.

(a) 
(b) 

**INFORMATION:** A financial assistance award is made at the sole
discretion of BPA, and is not subject to appeal or review.

## 4.1.1 Awards to Federal Employees and Annuitants

**POLICY:** BPA and other Federal employees and business concerns or
organizations, which are substantially owned or controlled by BPA
employees, may not receive BPA financial assistance. Awards may be made
to Federal annuitants provided that all other provisions of the BFAI are
followed.

## 4.1.2 Small and Disadvantaged Business Participation

**POLICY:**

\(a\) BPA shall provide adequate opportunities for small businesses,
including socially and economically disadvantaged small businesses, to
compete for financial assistance awards consistent with the Federal law
and BPA program needs.

\(b\) BPA may use preferences for small or disadvantaged business in its
financial assistance programs. The FAO shall employ preferences
consistent with Part 8 of the BPI.

# 4.2 APPLICANT RESPONSIBILITY

**POLICY:**

\(a\) BPA expects to make financial assistance awards to experienced
organizations with sound management systems. However, the objective of a
specific recipient\'s program or project to be attained may require that
BPA support recipients with lower than desired levels of skill and
expertise in some areas of project management. In doing so, the FAO
shall include sufficient safeguards in the award to protect BPA\'s
program and financial interests.

\(b\) Awards may not be made to organizations named in the Excluded
Parties Listing System, which can be viewed online at
<http://epls.arnet.gov/>. The applicant is responsible for informing the
FAO of any exclusion actions in place or pending during application or
award phase. The FAO shall check the list before awarding any financial
assistance.

# 4.3 SELECTION OF AWARD INSTRUMENT

**POLICY:**

\(a\) BPA shall determine whether a program is principally one of
acquisition (purchasing) or financial assistance pursuant to 31 U.S.C.
6302 - 6305. This determination shall be made by the FAO. For financial
assistance transactions, the FAO shall determine whether a grant or a
cooperative agreement is the appropriate instrument. See the definitions
of grant and cooperative agreement in BFAI subpart 1.4. BPA shall limit
involvement between itself and the recipient in the performance of a
project to the minimum necessary to achieve BPA\'s program objectives.

\(b\) The following general policies should be used when deciding
whether to award a contract, cooperative agreement, grant or simplified
grant:

> \(1\) A Contract is the appropriate instrument when the requirements
> indicate that the results of the project will directly benefit BPA
> business purposes (See the BPI);
>
> \(2\) A Cooperative Agreement is the appropriate instrument when the
> requirements of a financial assistance relationship indicate the need
> for BPA collaboration or participation in the management of the
> project and substantial involvement is anticipated;
>
> \(3\) A Grant is the appropriate instrument when the requirements of a
> financial assistance relationship indicate that the recipient can be
> expected to perform the project without BPA collaboration,
> participation, or intervention as long as the project is run in
> accordance with the terms of the assistance instrument and substantial
> involvement is not anticipated; and
>
> \(4\) A Simplified Grant is the appropriate instrument when the
> requirements of a financial assistance relationship indicate that the
> program office has performed the market research and evaluation of
> applications to determine an awardee worthy of our support. A
> simplified grant has an award period of less than 12 months with a
> single advance payment of \$50,000 or less. These awards do not
> require any BPA collaboration, involvement or oversight.

# NEGOTIATIONS

**INFORMATION:** Negotiations may occur pre-application or post-award
and should address program purpose, timing, the financial commitment of
BPA, BPA oversight and any special terms needed to assure BPA that its
expenditures have acceptable risk and will meet agency goals.
Negotiations may occur by telephone, in person or by electronic means.
Any revisions to the relationship shall be reflected in the final award
and acceptance. Normally the FAO shall conduct negotiations. Agreements
made during negotiations shall be documented in the DAD. (BFAI 4.13)

[]{#__RefHeading___Toc81888275 .anchor}4.4.1 Negotiation of Indirect
Cost Rates

**POLICY:** The policies and procedures described in BPI 14.17, Indirect
Cost Rates, shall be applied to financial assistance awards.

# 4.5 FUNDING AND EFFECTIVE PERIOD

**INFORMATION:**

\(a\) BPA may fund all or part of a project. The effective period of the
award is the duration of BPA support, and funds provided by BPA may be
utilized during the entire effective period. Effective periods of awards
may begin prior to the date of the award if it is included within the
terms of the award, and the FAO determines it to be in BPA's best
interest. (BFAI 4.5.1)

\(b\) If funding is not or may not be available for the entire project
at the time of award, the FAO shall specify these limitations in the
award. For example , the FAO may establish an effective period for the
amount of time that funds are available, and issue a modification to add
money, extend the effective period or add an activity when needed.
Alternatively, the FAO may establish the effective period for the entire
length of the project, and only provide the available funds, using
modifications to provide additional funding when needed and available.
In either event, if the project is not fully funded at the time of
award, the award must clearly state that funding for future periods is
not assured, and that BPA\'s obligation to fund additional portions of
the project is dependent upon the availability of funds.

**PROCEDURE:** Effective periods may be extended by amending the
financial assistance award.

## 4.5.1 Pre-Award Costs

**INFORMATION:** Pre-award costs are those allowable costs (identified
by budget category and type of cost) incurred prior to award. Such costs
are eligible for reimbursement only with the express written consent of
the FAO. The FAO, in conjunction with the program office, should review
any request for pre-award costs in light of the relevance of the
proposed costs to the project to be supported and available program
funding. Unapproved pre-award expenditures are made at the recipient\'s
risk. Approval of pre-award costs will be recognized in the award
document.

# 4.6 PAYMENT

**POLICY:** Payment provisions in financial assistance documents should
provide funding to recipients as close in time as possible to their need
to expend funds. Such transfers shall be made consistent with program
objectives, applicable laws and Treasury Regulations, 31 CFR Part 205.

## 4.6.1 Types of Payments

**INFORMATION**: Payments may be either:

\(a\) Advance Payments made to recipients prior to the recipient making
cash outlays, or

(a) 
(b) 

\(b\) Reimbursement Payments made after the recipient has incurred
expenses and made cash outlays.

### 4.6.1.1 Determining the Type of Payment

**POLICY:** The FAO shall specify the type of payment in the award
instrument.

**PROCEDURE:** The decision to use a particular payment type is based
upon several factors, including the recipient's financial stability and
the adequacy of the recipient's financial management system. As a part
of the decision on which method to use, the FAO must consider the
recipient's willingness to minimize the time elapsing between the
receipt of funds from BPA and their disbursement for award purposes by
the recipient. The FAO may consider the recipient's payment preference.
The amounts of advance payments should generally be consistent with the
recipient's anticipated needs as the project proceeds, rather than being
established on a predetermined basis when the award is made.

### 4.6.1.2 Advance Payments

**POLICY:** Unless otherwise requested by the recipient, advance
payments shall be made when the recipient's financial management system
provides (1) adequate fund control and accountability procedures to
insure the timely incurrence and satisfaction of obligations and (2) the
recipient has demonstrated the ability to faithfully follow the
established procedures.

### 4.6.1.3 Reimbursement Payments

**POLICY:** Reimbursement payments shall be used when the recipient does
not qualify for advance payments (BFAI 4.6.1.2), or when the recipient
requests reimbursement. Requests for reimbursement shall generally be
submitted no more than once monthly.

## 4.6.2 Method of Payment

**INFORMATION:** Payments may be either:

\(a\) One single payment made either in advance or as a reimbursement of
incurred costs. If a recipient meets the requirement for advance
payment, the duration of the project is twelve months or less, the
amount of the award is less than \$50,000 or the award meets the
criteria for Simplified Grants (BFAI 4.10), the entire award amount may
be advanced in a single payment.

\(b\) A series of multiple periodic payments made to provide for 30 day
cash advances for reports submitted on a quarterly basis, or monthly or
quarterly reimbursement of incurred costs.

## 4.6.3 Form of Payment

**INFORMATION:** Payments will be made by electronic funds transfer, the
electronic payment system used by the U.S. Treasury in lieu of issuing
paper checks. Funds are transferred directly into the recipient's bank
account, thereby eliminating processing and mail time involved in
issuing a paper check. Payment may be made by paper check if approved by
the FAO. See BPI 22.6.2, BPI Clause 22-20.

[]{#__RefHeading___Toc81888285 .anchor}4.7 PROGRAM INCOME

**POLICY:**

\(a\) Program income earned by the recipient, shall be used in one or
more of the following ways:

> \(1\) Deducted from the total project costs for the purpose of
> determining the net costs on which the BPA share of costs will be
> based. This is the preferred method.
>
> \(2\) Added to the total funds committed to the project by BPA and the
> recipient and used to further eligible program objectives;

(1) 

\(3\) Used by the recipient to finance the non-BPA share of the project;
or

\(4\) Returned to BPA by check at the end of the effective period.

\(b\) The disposition of anticipated program income shall be documented
in the award.

# 4.8 OBLIGATION AND ACCEPTANCE OF AWARD

**PROCEDURE:**

\(a\) The FAO shall sign the award document prior to sending it to the
recipient. Recipient signatures may be required by the FAO. BPA funds
for a financial assistance award are obligated as of the date the FAO
signs the award unless the FAO requires a signature from the recipient.
The recipient is not authorized to incur costs under an award prior to
the date of the award unless authorized in writing by the FAO.

\(b\) The maximum BPA obligation to the recipient is the amount shown in
the award. BPA shall have no responsibility to make additional award for
the same or any other purpose. The BPA obligation shall be valid until
the expiration date of the effective period shown in the award or as
otherwise limited by the terms of the award.

# PREPARATION OF AWARD INSTRUMENT

**POLICY:** The type and complexity of the financial assistance award
instrument should reflect the scope and risks inherent in the project.
The award instrument shall use the BFAI clauses and, appropriate BPI
clauses that have been modified to reflect the differences between
contracts and financial assistance transactions.

**PROCEDURE:** Each BPA financial assistance award and all modifications
shall be made using the Business Enterprise System (BES) electronically
generated award form.

# 4.10 CONTENTS OF AWARDS

**PROCEDURE:**

\(a\) Simplified Grants shall be awarded through the BPA BES contracts
module and shall indlude the following clauses: (BFAI 4.3)

4-1 Regulations Applicable to BPA Financial Assistance

4-2 Nondiscrimination in Federally Assisted Programs

4-3 Examination of Records

4-21 Requirement for Audit

> \(1\) The statement "Advance Payment -- Pay on FAO Signature" should
> be notated on the face page of the award document.
>
> \(2\) Simplified grants to individuals must also address the Drug Free
> Workplace (BPI Clause 3-6)

\(b\) The following clauses shall be included in all awards that are not
simplified grants: (BFAI 4.3)

4-1 Regulations applicable to BPA Financial Assistance

4-2 Nondiscrimination in Federally assisted programs

4-3 Examination of Records

4-7 Environmental Protection, BPI 15.50

4-8 Limitation of Liability

4-9 Acknowledgment of Support

4-21 Requirement for Audit

\(c\) All other awards, in addition to (b) above, shall address the
following topics:

> \(1\) Performance Reporting Requirements. The FAO shall insert a
> clause similar to Clause 4-4, Reporting Program Performance, in all
> awards. FAOs may not specify reporting intervals more frequent than
> quarterly nor require more than three copies of the written report.
> The award document should specifically indicate the recipient\'s
> reporting requirements including the frequency of required reports and
> time periods for reporting.
>
> \(2\) Payment Procedures and Instructions
>
> \(A\) The FAO shall insert a clause similar to Clause 4-5, Advance
> Payment and Financial Reporting Requirements, in awards funded by
> advance payments.
>
> \(B\) The FAO shall insert a clause similar to Clause 4-6,
> Reimbursement Payment and Financial Reporting Requirements, in awards
> funded using the reimbursement payment method.

\(d\) The following topics must be covered if appropriate to the
specific award:

> \(1\) Disputes Clause 4.10 or BPI Clause 21-2 may be added if the FAO
> determines that it would be useful;
>
> \(2\) If Research, Development or Demonstration:

\(A\) Authorization and Consent (BPI clause 17-1)

\(B\) Patent Rights (BPI clause 17-2)

\(C\) Rights in Data (BPI clause 17-3)

> \(3\) Continuation terms (if it is anticipated that the project may be
> continued at the expiration of this award);
>
> \(4\) Review of Recipient\'s contracts before they are awarded;
>
> \(5\) Separate Bank Accounts. In general, recipients will not be
> required to maintain separate bank accounts for funds advanced by BPA.
> However, the use of such accounts may be advisable for awards of a
> significant dollar amount, of long duration or using an advance
> payment;
>
> \(6\) Bonding. Where an award includes construction or facilities
> improvement under contracts or subcontracts exceeding \$100,000,
> bonding shall be required, however BPA may accept the normal bonding
> and insurance practices of the recipient, provided its system assures
> the safety of BPA funds obligated. If the FAO determines adequate
> protection for BPA funds does not exist, other bonding may be
> required. See BPI 16.1 for guidelines. The FAO shall confer with the
> General Counsel and the Risk management office prior to waiver of
> bonding requirements normally associated with construction project of
> similar size and complexity;
>
> \(7\) Use of Program income. If the award is expected generate income
> for the recipient, the award should be adjusted to reflect the amount
> of income anticipated, and the use to which that income will be put.
> Possible uses of program income are described in BFAI 4.7.
>
> \(8\) Cost Sharing And Matching. BPA shall specify in the award any
> required cost sharing or matching, the manner in which it will be
> calculated, and when the cost sharing or matching shall be applied.
> The FAO shall inquire as to the source of the cost sharing or
> matching, as it may not be from funding provided by another Federal
> assistance award unless such use is specifically permitted by Federal
> statute.
>
> \(9\) Lobbying. Restrictions On Payments to Influence Transactions
> (Lobbying). 31 U.S.C. 1352 requires persons or organizations receiving
> Federal financial assistance to certify and disclose certain
> activities intended to influence certain Federal transactions,
> including BPA\'s grants and cooperative agreements. The policies and
> procedures in BPI 3.5 are applicable to financial assistance
> transactions, including the insertion of clauses BPI 3-3,
> Certification and Disclosure Regarding Payments to Influence Certain
> Federal Transactions, and BPI 3-4, Limitations on Payment to Influence
> Certain Federal Transactions. Terminology in the clauses shall be
> changed appropriately to reflect the financial assistance context
> instead of the purchasing context.
>
> \(10\) Reserved.
>
> \(11\) Travel. The FAO shall insert clause 4-11, Travel, in awards
> that contemplate the travel costs as part of the project.
>
> \(12\) FAO Representative. The FAO shall insert clause 4-12, Financial
> Assistance Officer\'s Representative (FAOR), in awards that will have
> a FAOR designated.
>
> \(13\) Project Technical Represeantive. The FAO shall insert clause
> 4-13, Project Technical Representative (PTR), in awards that designate
> a PTR.
>
> \(14\) Field Representative. The FAO shall insert a clause similar to
> 4-14, Field Representative (FR), in awards when a field representative
> is likely to be used.
>
> \(15\) Cost-reimbursement Basis. The FAO shall insert clause 4-15,
> Cost-reimbursement Basis, in awards, which will be funded on a
> cost-reimbursement basis.
>
> \(16\) BPA-Furnished Equipment or Material. The FAO shall insert a
> clause similar to 4-16, BPA-Furnished Equipment or Material, in all
> awards, which provide for BPA-furnished equipment or materials.
>
> \(17\) Suspension or Termination. The FAO shall insert a clause
> similar to 4-17, Suspension or Termination, in awards where it would
> serve a useful purpose.
>
> \(18\) Key Personnel. The FAO shall insert a clause similar to 4-18,
> Change or Absence of the Principal Investigator or Designated Key
> Personnel, in award for which a key person was a major part of the
> decision to make the award to the recipient.
>
> \(19\) Paperwork Reduction. In accord with the Act, the FAO shall
> insert Clause 4-19, Paperwork Reduction, in awards for projects which
> may include the collection of data from the public.
>
> \(20\) Notification to Office of Federal Contract Compliance Programs.
> The FAO shall insert clause 4-20, Notification to Office of Federal
> Contract Compliance Programs, in awards which involve construction
> contracts.
>
> \(21\) Audit. The FAO shall insert Clause 4-21, Requirement for Audit,
> in all awards.
>
> \(22\) Endangered Species Act Requirements. The FAO shall insert
> Clause 4-22, Endangered Species Act Requirements, in awards, which
> support the BPA fish and wildlife program.
>
> \(23\) Personal Property Management. The FAO shall insert a clause
> similar to 4-23, Personal Property Management, in all awards to other
> than state governments, when BPA-owned personal property is provided
> to, or when personal property is acquired by the recipient using
> BPA-provided funds. The FAO shall detail sensitive and significant
> equipment and materials to be acquired in paragraphs (c)(2), (c)(3)
> and (c)(4). The FAO should consider the value and sensitivity of the
> property involved, so that the recipient is required to manage
> appropriate property, but not to tightly manage consumables and low
> dollar value nonsensitive property. If there is question concerning
> the BPA\'s need to transfer title at the end of the project, the FAO
> should list the property in paragraph (c)(3) and resolve the issue
> when the award is closed.
>
> \(24\) Personal Property Management -- State Governments. The FAO
> shall insert a clause similar to 4-24, Personal Property Management -
> State Governments, in all awards to state governments when BPA-owned
> personal property is provided, or under which personal property will
> be acquired using BPA-provided funds.
>
> \(25\) BPA Property to be granted. The FAO shall insert a clause
> similar to 4-25, BPA Property to be Granted, in all awards where title
> to BPA property is to be given to the recipient as a part of the terms
> of the award.
>
> \(26\) Budget Changes and Line Item Transfers. The FAO shall insert a
> clause similar to 4-26, Budget Changes and Line Item Transfers, in all
> cost-reimbursement awards exceeding \$50,000.
>
> \(27\) Incremental Funding. The FAO shall insert a clause similar to
> 4-27, Incremental Funding, in awards that are to be funded on an
> incremental basis over the effective period of the award.

# 4.11 NOTIFICATIONS

## 4.11.1 Notification Prior to Large Awards

**POLICY:** DOE Headquarters shall be notified at least 48 hours in
advance of all awards of grants and cooperative agreements, or
modifications thereto, of \$500,000 or more. (See BPI 4.5.)

## 4.11.2 Notification of Unsuccessful Applicants and Debriefings

**POLICY**: Unsuccessful applicants shall be notified by the FAO when
their applications are not selected for award. Upon written request, an
unsuccessful applicant may receive a debriefing. FAO will use guidance
described in BPI 10.3 and BPI Appendix 6-A. The FAO may discuss the
weaknesses of the proposal and suggest ways for the applicant to be more
competitive in the future. The preferred medium for debriefing is
telephone; however, face-to-face conferences (when time and
circumstances permit) are also permissible.

## 4.11.3 Reporting Award Data

**POLICY:**

\(a\) The FAO is responsible for assuring that award data is properly
reported for all financial assistance actions through Supply Chain
Services or its successor.

\(b\) BPA will report financial assistance awards to the Department as
agreed with the Department. Reporting will be done by Supply Chain
Services or its successor.

# 4.12 FINANCIAL ASSISTANCE FILES

**POLICY:**

\(a\) Assistance files shall contain sufficient documentation to support
the actions taken. The level of required documentation to explain award
decisions should be sufficient to adequately explain the decision to a
journeyman FAO.

> \(1\) The FAO shall maintain an award file containing all relevant
> pre-award documentation. It shall also contain all post-award
> documentation not otherwise included in the PTR or Payment files.
>
> \(2\) The PTR shall maintain a working file that documents technical
> administration activities.
>
> \(3\) Accounts Payable shall maintain the payment file that contains
> an original signature copy of the award, all modifications and all
> other documents needed to support payments under the award.

**PROCEDURE:** The FAO shall retain one copy of each application, which
was not accepted for a minimum of 90 days following award. Copies of all
other materials submitted by applicants shall be destroyed following
award. After the retention minimum period, applications and related
materials shall be destroyed in such a manner as to safeguard any
sensitive, confidential, or proprietary data contained therein.

# 4.13 DOCUMENT OF AWARD DECISION (DAD)

**PROCEDURE:** Generally, the FAO shall follow the DAD requirements of
the BPI Part 12.8.2 when making awards under the BFAI, with the
additional guidance provided below:

\(a\) Documentation shall be completed at the time major milestones are
reached in the process, and prior to award. The extent of documentation
should be appropriate to the size, risk, and complexity of the project
being supported. The DAD must be dated and signed by the FAO.

\(b\) It is not necessary to document decisions which are either obvious
or which are already explained in other file documentation. Cross
references to supporting documentation shall be used where appropriate.

\(c\) Documentation may be brief and hand-written for simple actions
where BPA\'s risk is low.

\(d\) There is no required format for documentation. Documentation will
generally include the following topics where appropriate:

> \(1\) Project title and number of solicitation.
>
> \(2\) Name of applicant(s).
>
> \(3\) If it is not apparent, the reason why financial assistance was
> selected instead of purchasing.
>
> \(4\) The results of any cost analysis or budget review conducted.
>
> \(5\) Expected BPA involvement anticipated during performance of the
> project.
>
> \(6\) Evaluation Report. The report should document the evaluations
> and the actions taken on each application. The evaluation report
> should contain, at a minimum: identification of the persons evaluating
> the applications, the evaluation criteria, and narrative comments
> concerning each application.

(4) 
(5) 

> \(7\) An explanation of significant decisions made regarding the
> applicants solicited, if any, and why the specific applicant received
> the award. The basis for selection of the best applicant(s) for final
> negotiation and award shall be documented. If multiple organizations
> were solicited, and not all received awards, the relative strengths
> and weaknesses of the applications and an explanation for obviously
> inadequate applications .
>
> \(8\) The reasons for giving specific property acquisition and
> disposition instructions.
>
> \(9\) Notes of any negotiations, including the names of persons
> participating, topics discussed and the results of discussion.
>
> \(10\) Documentation establishing the adequacy of the recipient\'s
> financial management capabilities.
>
> \(11\) Any other pertinent material that supports the selection.
>
> \(12\) Date and name of person preparing documentation.

# 4.14 RATIFICATION OF UNAUTHORIZED AWARDS

**POLICY:** Only FAOs are authorized to award financial assistance at
BPA. Commitments made by others to provide financial assistance by BPA
are unauthorized. Unauthorized financial assistance awards may be
ratified by the FAO if in BPA\'s interest. The procedures applicable to
the ratification of financial assistance actions are described in BPI
2.4, and are to be followed when ratification actions are necessary. The
FAO shall be responsible for documenting the reasons supporting
ratification of financial assistance awards in the DAD. (BFAI 4.13)

# 4.15 TEXT OF CLAUSES

The following clauses are referenced in Part 4:

4-1 Regulations Applicable to BPA Financial Assistance

4-2 Nondiscrimination in Federally Assisted Programs

4-3 Examination of Records

4-4 Reporting Program Performance

4-5 Advance Payment and Financial Reporting Requirements

4-6 Reimbursement Payment and Financial reporting Requirements

4-7 Environmental Protection

4-8 Limitation of Liability

4-9 Acknowledgment of Support

4-10 Disputes

4-11 Travel

4-12 Financial Assistance Officer\'s Representative (FAOR)

4-13 Project Technical Representative (PTR)

4-14 Field Representative (FR)

4-15 Cost Reimbursement Basis

4-16 BPA-Furnished Equipment or Material

4-17 Suspension or Termination

4-18 Change or Absence of the Principal Investigator or Designated Key
Personnel

4-19 Paperwork Reduction

4-20 Notification to Office of Federal Contract Compliance Programs

4-21 Requirement for Audit

4-22 Endangered Species Act Requirements

4-23 Personal Property Management

4-24 Personal Property Management - State Governments

4-25 BPA Property to be Granted

4-26 Budget Changes and Line Item Transfers

4-27 Incremental Funding

**Clause 4-1 REGULATIONS APPLICABLE TO BPA FINANCIAL ASSISTANCE (BFAI
4.10) (Sep** **04)**

The Bonneville Power Administration\'s financial assistance function is
managed and executed solely in accordance with the Bonneville Financial
Assistance Instructions (BFAI). The BFAI is available without charge on
the Internet at <http://www/bpa.gov>. Copies of the BFAI may be obtained
for \$15.00 each. Requests and comments should be sent to Head of the
Contracting Activity - CK, Bonneville Power Administration, P.O. Box
3621, Portland, OR 97208. Subscriptions are not available.

(End of Clause)

**Clause 4-2 NONDISCRIMINATION IN FEDERALLY ASSISTED PROGRAMS (BFAI
4.10) (Sep** **04)**

The recipient shall comply with 10 CFR Chapter II, Section 600.39 which
provides that \"\...no person shall on the ground of race, color,
national origin, sex, handicap, or age be excluded from participation
in, be denied the benefits of, be subjected to discrimination under, or
be denied employment, where the main purpose of the program or activity
is to provide employment or when the delivery of program services is
affected by the recipient\'s employment practices, in connection with
any program or activity receiving Federal assistance from \...\" BPA.

(End of Clause)

**Clause 4-3 EXAMINATION OF RECORDS (BFAI 4.10) (Sep** **04)**

\(a\) The recipient shall maintain books, records, documents, and other
evidence and accounting procedures and practices, sufficient to reflect
properly all direct and indirect costs of whatever nature claimed to
have been incurred and anticipated to be incurred for the performance of
this award. The Financial Assistance Officer or a representative shall
have the right of access to any books, documents, papers, or other
records of recipients and subrecipients which are pertinent to the
award, in order to make audits, examinations, excerpts and transcripts.

\(b\) Such material shall be made available at the office of the
recipient, at all reasonable times, for inspection, audit or
reproduction, until the expiration of 3 years from the date of final
payment under this award or for such longer period, if any, as is
required by applicable statute. If any litigation, claim, negotiation,
audit or other action involving the records has been started prior to
the expiration of the 3 year period, the records must be retained until
completion of the action and resolution of all issues which arise from
it, or until the end of the regular 3 year period whichever is later.

(End of Clause)

**Clause 4-4 REPORTING PROGRAM PERFORMANCE (BFAI 4.10)(Sep** **04)**

\(a\) Frequency. Unusual events having a negative impact on the project
should be reported to the Project Technical Representative (PTR) as soon
as they are discovered. A progress report is due in (FAO insert specific
requirements) covering the previous six months of effort. A final report
on the project must be submitted no later than 90 days after completion
of the project.

\(b\) Contents. The report should contain a comparison of the actual
accomplishments to those planned for the period. If the project is not
on schedule, a brief explanation of the reason is required. Unusual
situations encountered which impacted the costs or effectiveness of the
project should be identified and explained.

\(c\) Copies. Two copies of the reports required shall be submitted to
the PTR.

(End of Clause)

**Clause 4-5 ADVANCE PAYMENT AND FINANCIAL REPORTING REQUIREMENTS (BFAI
4.10)(Sep** **04)**

\(a\) Payments under this award will be made by advance payment by
Vendor Express payment. Recipient requests for advances and recipient
financial reporting requirements shall be made as follows:

> \(1\) Advances. Advances for the anticipated needs of the project
> shall be made upon submission of Standard Form 270e, Request for
> Advance and Reimbursement by the applicant. Generally, advances should
> be submitted not more frequently than monthly, and each request should
> not be for more than 30 days cash requirements. An original and two
> copies should be submitted to the Project Technical Representative
> (PTR).
>
> \(2\) Federal Cash Transactions Report, SF-272e. This report shall be
> prepared and submitted to the PTR whenever an SF-269a, Financial
> Status Report is submitted.
>
> \(3\) Interim cost reports. Interim cost reports on SF-269a, Financial
> Status Report (Short Form), shall be submitted to the PTR quarterly,
> within 30 days after the end of the reporting period.
>
> \(4\) Excess Funds. A prompt refund shall be made if excess funds are
> drawn. Exceptions are allowed when funds will be disbursed within 7
> calendar days or, if the excess is less than \$10,000 and will be
> disbursed within 30 calendar days. Any interest earned on advance
> funds must be promptly refunded (except for State governments and
> instrumentalities and Tribes.)
>
> \(5\) Final cost report. A final cost report shall be submitted to the
> PTR within 90 days after the end of the effective period. It shall be
> submitted in the same format as the budget as awarded. The final cost
> report shall compare the amounts allocated in the award budget to the
> amounts expended for each budget element.

(End of Clause)

**Clause 4-6 REIMBURSEMENT PAYMENT AND FINANCIAL REPORTING REQUIREMENTS
(BFAI 4.10)(Sep** **04)**

\(a\) Payment for services performed under this award will be reimbursed
by Vendor Express payment after performance of the services. Recipient
requests for reimbursements, and recipient financial reporting
requirements shall be made as follows:

> \(1\) Reimbursements. Standard Form 270e, Request for Advance and
> Reimbursement, shall be used when requesting reimbursement for costs
> incurred on the project. Requests should not be made more frequently
> than monthly. An original and two copies should be submitted to the
> Project Technical Representative (PTR).
>
> \(2\) Interim cost reports. Interim cost reports on SF-269a, Financial
> Status Report (short Form), shall be submitted to the Project
> Technical Representative (PTR) quarterly, within 30 days after the end
> of the reporting period.
>
> \(3\) Final Cost Report. The final cost report shall be submitted to
> the PTR within 90 days after the end of the effective period. It shall
> be submitted in the same format as the budget as awarded. The final
> cost report shall compare the amounts allocated in the award budget to
> the amounts expended for each budget element.

(End of Clause)

**Clause 4-7 ENVIRONMENTAL PROTECTION (BFAI 4.10)(Sep** **04)**

The recipient shall insure that the facilities under its ownership,
lease or supervision which will be utilized in the accomplishment of the
project are not listed on the Environmental Protection Agency\'s (EPA)
list of Violation Facilities and that it will notify BPA of the receipt
of any communication from the Director of the EPA Office of Federal
Activities indicating that a facility to be used in the project is under
consideration for listing by the EPA.

(End of Clause)

**Clause 4-8 LIMITATION OF LIABILITY (BFAI 4.10)(Sep** **04)**

The recipient agrees to hold BPA harmless against any direct or
consequential damages claimed by the recipient or third parties arising
from or related to Recipient\'s performance, during the period of this
award.

(End of Clause)

**Clause 4-9 ACKNOWLEDGMENT OF SUPPORT (BFAI 4.10)(Sep** **04)**

Publication of the results of this award is encouraged. The recipient
shall include in any article or other announcement that is published an
acknowledgment that the research was supported, in whole or in part, by
BPA (including the award number), but that such support does not
constitute an endorsement by BPA of the views expressed therein.

(End of Clause)

**Clause 4-10 DISPUTES (BFAI 4.10) (Sep** **04)**

\(a\) Except as otherwise provided in this award, any unresolved dispute
concerning a question of fact arising under this award shall be decided
by the Financial Assistance Officer (FAO), who shall reduce that
decision to writing and mail, or otherwise furnish a copy thereof to the
Recipient. The decision of the Financial Assistance Officer shall be
final and conclusive. The FAO's decision may be appealed to the BPA HCA.
The decision of the BPA HCA shall be final and conclusive.

\(b\) This clause does not preclude consideration of law questions in
connection with decisions provided for in paragraph (a) above; provided,
that nothing in this award shall be construed as making final the
decision of any administrative official, representative, or board, based
on a question of law.

\(c\) The use of alternate disputes resolution processes are encouraged,
and may be used as negotiated between the parties.

(End of Clause)

**Clause 4-11 TRAVEL (BFAI 4.10)(Sep** **04)**

\(a\) Domestic travel may be an appropriate charge to this award, and
prior authorization for specific trips is not required. In accordance
with the applicable cost principles, reasonable, necessary, and
allowable travel costs may be charged on an actual basis or per diem
basis in lieu of actual costs incurred, provided the method used results
in charges consistent with those normally allowed by the organization in
its regular operations and travel is at less than business class common
carrier fare, unless otherwise approved in advance by the Financial
Assistance Officer.

\(b\) Foreign travel may be charged to this award without prior approval
if detailed in the approved budget. If foreign travel is required, but
not detailed in the approved budget, it must be approved in writing by
the Financial Assistance Officer prior to beginning the travel. Foreign
travel will be reimbursed on the same basis as domestic travel.

(End of Clause)

**Clause 4-12 FINANCIAL ASSISTANCE OFFICER\'S REPRESENTATIVE (BFAI
4.10)(Sep** **04)**

The Financial Assistance Officer\'s Representative (FAOR) shall have all
the rights, powers, and privileges of the Financial Assistance Officer
necessary to the administration of the award: provided, however, that
the FAOR is not empowered to execute modifications to the award, to make
a final decision of any matter which would be subject to appeal, or to
suspend or terminate for any cause the recipient\'s right to proceed.

(End of Clause)

**Clause 4-13 PROJECT TECHNICAL REPRESENTATIVE (BFAI 4.10)(Sep 04)**

\(a\) The Project Technical Representative (PTR) is the authorized
representative of the Financial Assistance Officer (FAO) for technical
actions performed in relation to the award. This includes the functions
of (1) review of work performed; and (2) interpretation of technical
program requirements.

\(b\) The PTR is not authorized to act for the FAO in the following
matters: (l) modifications that change the amount of award, technical
requirements or time for performance; (2) suspension or termination of
the recipient\'s right to proceed; and (3) final decisions on any
matters subject to appeal.

(End of Clause)

**Clause 4-14 FIELD REPRESENTATIVE (BFAI 4.10)(Sep** **04)**

\(a\) The Field Representative (FR) will be appointed by Financial
Assistance Officer (FAO) or the Project Technical Representative (PTR)
and is authorized by the PTR for reviewing project accomplishments and
recipient\'s technical reports, and interpretation of award
requirements.

\(b\) The Field Representative (FR) is not authorized to act in the
following matters: (l) modifications that change the award amount or
general direction of the project; (2) suspension or termination of the
recipient\'s right to proceed; (3) approval of financial requests and
reports, and (4) final decisions on any matters subject to appeal.

(End of Clause)

**Clause 4-15 COST REIMBURSEMENT BASIS (BFAI 4.10)(Sep** **04)**

This award is funded on a cost reimbursement basis without fee or
profit, not to exceed the amount awarded as indicated on the face page
and is subject to a refund of unexpended funds to BPA.

(End of Clause)

**Clause 4-16 BPA-FURNISHED EQUIPMENT OR MATERIAL (BFAI 4.10)(Sep 04)**

\(a\) The recipient hereby releases and agrees to hold BPA, or persons
acting upon behalf of the BPA harmless for any and all liability of
every kind and nature whatsoever resulting from the receipt, shipping,
installation, operation, handling, condition, use and maintenance of the
material furnished by BPA under this award.

\(b\) Neither BPA nor persons acting on behalf of BPA make any warranty
or other representation, express or implied, that the material provided
under this award will accomplish the results for which it is requested
or intended.

(End of Clause)

**Clause 4-17 SUSPENSION OR TERMINATION (BFAI 4.10)(Sep** **04)**

\(a\) Definitions.

> \(1\) "Suspension" is an action by BPA that temporarily suspends BPA
> support under the award pending corrective action by the Recipient or
> pending a decision by BPA to terminate the award.
>
> \(2\) "Termination" means the cancellation of BPA sponsorship, in
> whole or in part, at any time prior to the date of completion.

\(b\) Suspension or Termination for cause.

> \(1\) Notice of Suspension. Prior to issuing a suspension notice,
> efforts will be made by BPA and the recipient to informally resolve
> disagreements. If informal efforts fail, BPA may issue a notice of
> suspension that specifies the date on which the suspension will take
> effect. During the suspension, BPA may withhold further payment and
> prohibit the recipient from incurring additional obligations of funds
> pending corrective action by the recipient or a decision by BPA to
> terminate. BPA shall allow all necessary and proper costs that the
> recipient could not reasonably avoid during the period of suspension
> provided that they would otherwise be allowable.
>
> \(2\) Notice of Termination for Cause. Prior to issuing a termination
> notice, efforts will be made by BPA and the recipient to informally
> resolve disagreements. If informal efforts fail, BPA may issue a
> notice of termination that will take effect as stated in the letter.
> The Financial Assistance Officer shall determine the severity of the
> violation that caused the termination for cause, and determine what
> costs are appropriate for reimbursement.

\(c\) Termination for convenience. BPA or the recipient may request that
the award be terminated in whole or in part when both parties agree that
the continuation of the project would not produce beneficial results
commensurate with the further expenditure of funds. The two parties
shall agree upon the termination conditions, including the effective
date and, in the case of partial terminations, the portion to be
terminated. The recipient shall not incur new obligations for the
terminated portion after the effective date, and shall cancel as many
outstanding obligations as possible. BPA shall allow full credit to the
recipient for the BPA share of the noncancellable costs, properly
incurred by the recipient prior to termination.

\(d\) Authority to issue notices. The Financial Assistance Officer is
the only person authorized to suspend or terminate the award.

(End of Clause)

**Clause 4-18 CHANGE OR ABSENCE OF THE PRINCIPAL INVESTIGATOR OR
DESIGNATED KEY PERSONNEL (BFAI 4.10)(Sep** **04)**

Since BPA funding of this project is based, to a significant extent, on
the qualifications and level of participation of the Principal
Investigator(s), or key personnel, a change of Principal
Investigator(s), or key personnel, or their level of effort is
considered a change in the approved project. The approval of BPA must be
obtained prior to any change of the Principal Investigator or key
personnel who have been identified as key personnel. In addition, any
continuous absence of the Principal Investigator or key personnel in
excess of 3 months, or plans for the Principal Investigator or key
personnel to become substantially less involved in the project than was
indicated in the approved application requires BPA prior approval. The
recipient must contact the Financial Assistance Officer (FAO)
immediately upon becoming aware that any of these changes are likely and
must receive FAO approval before effecting any such change.

(End of Clause)

**Clause 4-19 PAPERWORK REDUCTION (BFAI 4.10)(Sep** **04)**

\(a\) This award is subject to the requirements of the Paperwork
Reduction Act of 1996 as implemented by the Office of Management and
Budget rules, \"Controlling Paperwork Burdens on the Public,\" published
at 5 CFR 1320 (47 FR 13666, 3-31-43) if the recipient will collect
information from ten or more respondents either:

\(1\) At the specific request of BPA, or

> \(2\) If the award requires specific BPA approval of the information
> collection or the collection procedures.

\(b\) A statement outlining proposed information collection under (a)
above shall be submitted by the recipient to the Financial Assistance
Officer named on the face page of this award at least 90 days prior to
the intended date of information collection. BPA will seek the requisite
approval from the Office of Management and Budget and will promptly
notify the recipient of the disposition of the request.

(End of Clause)

**Clause 4-20 NOTIFICATION TO OFFICE OF FEDERAL CONTRACT COMPLIANCE
PROGRAMS (BFAI 4.10)(Sep** **04)**

The recipient is required by Title 41 of the Code of Federal
Regulations, Chapter 60, Part 4, to notify the Office of Federal
Contract Compliance Programs of any construction contract awarded under
this financial assistance award. The proper OFCCP office to be notified
can be determined by calling the Seattle Regional Office at (206)
398-8000.

(End of clause)

**Clause 4-21 REQUIREMENT FOR AUDIT (BFAI 4.10)(Sep** **04)**

The recipient is required to obtain an audit in accordance with OMB
Circular A-133.

(End of Clause)

**Clause 4-22 ENDANGERED SPECIES ACT REQUIREMENTS (BFAI 4.10)(SEP 04)**

\(a\) To the extent requested by BPA, the recipient shall:

> \(1\) Participate in consultations and conferences conducted under
> Section 7 of the Endangered Species Act (ESA);
>
> \(2\) Obtain, or assist BPA in obtaining permits under Section 10 of
> the ESA, and
>
> \(3\) Provide to BPA all information, materials, documents, records
> and other assistance requested by BPA for such consultations,
> conferences, or the acquisition of permits.

\(b\) The recipient shall not proceed with action/activities in this
agreement until completion of requisite consultations and conferences
and the acquisition of necessary permits. To the extent requested by
BPA, the recipient shall comply with conditions identified during
consultations and conferences and with the provisions of any requisite
permit.

(End of clause)

**Clause 4-23 PERSONAL PROPERTY MANAGEMENT (BFAI 4.10) (Sep** **04)**

\(a\) This clause provides guidance for the utilization and disposition
of personal property furnished by BPA or acquired in whole or in part
with BPA funds, or whose cost was charged to a project supported by BPA
funds. Also see BPI Clause 19-1.

\(b\) BPA-owned personal property.

\(1\) The following BPA property will be provided for use in this award:

> **FAO instruction:** List BPA property to be provided, or \"None\", as
> appropriate.
>
> \(2\) Title remains vested in BPA. The recipient shall submit an
> annual reconciled physical inventory listing by October 1 of each year
> of such property in its custody to the PTR.
>
> \(3\) Upon completion of the award, or when the property is no longer
> needed, the recipient shall provide an inventory of the property to
> BPA and request disposition instructions.

\(c\) Recipient-acquired personal property.

> \(1\) When the recipient acquires personal property using BPA funds,
> in whole or in part, title vests with the recipient.
>
> \(2\) BPA will request the recipient to transfer title to the
> following property at the end of the project:
>
> **FAO Instruction**: List the property which BPA will require to be
> transferred, or \"NONE\" if none will be required to be transferred.
>
> \(3\) BPA reserves the right to transfer title to the property listed
> below to itself or a third party at the completion of the project.
>
> **FAO Instruction:** List the property which BPA is reserving the
> right to transfer title here. If there is none, and all property is to
> be retained by the recipient, insert \"NONE\".
>
> \(4\) If BPA does not provide disposition instructions for property
> identified in (b)(3) within 120 days of the end of the project, BPA
> relinquishes the right to transfer title and the recipient may retain
> the property, or dispose of it as appropriate.
>
> \(5\) BPA does not reserve the right to transfer title to the
> following personal property. The recipient may retain, use or dispose
> of this property.
>
> **FAO Instruction:** List the property which BPA does not wish to
> retain the right to transfer title, or \"None\", as appropriate**.**
>
> \(6\) The recipient shall submit a reconciled physical inventory
> listing by October 1 every second year of the award of personal
> property in its control.

\(d\) Property Management Standards for property which BPA will, or
reserves the right to, require the transfer of title at the conclusion
of the award:

> \(1\) Property records shall be maintained which include a description
> of the property, source of property, including award number,
> acquisition date, location, use and condition of the property and the
> date the information was reported, unit acquisition cost, ultimate
> disposition of property, and date of disposition.
>
> \(2\) The recipient shall maintain a system to insure adequate
> safeguards to prevent loss, damage, or theft of the property.
>
> \(3\) The recipient shall follow adequate maintenance procedures to
> keep the property in good condition.

(End of Clause)

**Clause 4-24 PERSONAL PROPERTY MANAGEMENT \-- STATE GOVERNMENTS (BFAI
4.10) (Sep** **04)**

\(a\) This clause provides requirements for the utilization and
disposition of personal property furnished by BPA or acquired in whole
or in part with BPA funds, or whose cost was charged to a project
supported by BPA funds.

\(b\) BPA-owned personal property.

\(1\) The following BPA property will be provided for use in this award:

\(a\) List of BPA property to be provided, or \"None\", as appropriate.

> \(2\) Title remains vested in BPA. The recipient shall submit an
> annual reconciled physical inventory listing by October 1 of each year
> of such property in their custody to the PTR.
>
> \(3\) Upon completion of the project or when the property is no longer
> needed, the recipient shall report the property to BPA and request
> disposition instructions.
>
> \(4\) The recipient shall maintain a system to insure adequate
> safeguards to prevent loss, damage, or theft of the property.
>
> \(5\) The recipient shall follow adequate maintenance procedures to
> keep the property in good condition.

\(c\) Personal property acquired with BPA funds. Title to such property
is vested in the recipient, and the property is not subject to further
review or control by BPA. The recipient is required to manage that
property in the same manner as other recipient-owned property is
managed.

(End of Clause)

**Clause 4-25 BPA PROPERTY TO BE GRANTED (BFAI 4.10) (Sep** **04)**

The following BPA property is granted to the recipient for use in the
work supported by this award. Title to the property vests with the
recipient upon receipt. The recipient shall submit an annual reconciled
physical inventory listing by October 1 of each year of such property in
its custody to the PTR. Following completion of the project and
submission of the final report, if one is required, the recipient is
relieved of accountability for the property.

> **FAO Instruction:** List all property to be given to the recipient.

(End of Clause)

**Clause 4-26 BUDGET CHANGES AND LINE ITEM TRANSFERS (BPI 4.10) (Sep**
**04)**

If unanticipated project needs arise, the recipient is authorized to
make budget line item transfers not exceeding ten per cent of the total
approved budget (or Financial Assistance Officer (FAO) may change this
to \"current year\'s budget\" as appropriate to the transaction).
Reallocation of funds exceeding this amount must have the prior written
approval of the FAO. The recipient shall send a written request for such
budget changes to the FAO through the Project Technical Representative.
The FAO will respond to the request within 30 days.

Recipients or subrecipients shall obtain prior approval whenever any of
the following changes are anticipated:

\(a\) Changes in the scope or the objective of the project or program
that will require a budget revision.

\(b\) The need for additional funding.

(End of clause)

**Clause 4-27 INCREMENTAL FUNDING (BPI 4.10) (Sep** **04)**

This project is not fully funded at the time of the award. It is
anticipated that further BPA funding will be provided on an incremental
basis. If funds are not available for any reason, BPA shall be under no
obligation to provide funding for any additional portion of the project.
If BPA does not fund the balance of the effective period, the award will
be terminated when the funds committed by BPA have been expended.

(End of Clause)