# DETAILED INSTRUCTIONS FOR COMPLETING APPLICATION PACKAGE

1\. GENERAL INSTRUCTIONS

The Federal grants application, Form SF-424 application package, is
available at [www.grants.gov](http://www.grants.gov/) for use by
applicant organizations requesting Federal assistance support under all
research and demonstration grant programs administered by SSA.

Applications are to be submitted via
[www.grants.gov](http://www.grants.gov/) unless prior approval is
obtained from the SSA Grants Management Team allowing the submission of
a non-electronic application package. The SSA Grants Management Team
contacts are: Gary Stammer, 410-965-9501; Mary Biddle, 410-965-9501; Ann
Dwayer, 410-965-9534; Audrey Adams, 410-965-9469; Phyllis Y. Smith,
410-965-9518.

The application form is comprised of several parts: Table of Contents,
One Page Project Summary, Face Page (SF-424), BUDGET INFORMATION
(SF-424A), Budget Narrative, Project Narrative, and Assurances.

Please read and follow the instructions carefully to avoid delays and
misunderstandings. An application may be considered incomplete and
returned if it fails to follow the instructions or if the material
presented is insufficient to permit an adequate review.

Project Duration and estimated Project Budgets:

\(1\) *[If the project duration is to be 17 months or
less]{.underline}*, the application budget sections should include a
budget for the total period of the project (not to exceed 17 months).
Thus, Budget Sections A, B, C and D should be completed for the total
project period. Budget Section E of the application form should be
omitted.

\(2\) *[If the project duration is to be greater than 17
months]{.underline}*, the application budget sections should reflect a
budget for the project\'s initial 12-month budget period only. Budget
Sections A, B, C and D of the application should be completed to show
the budget for the first year. Budget Section E should be completed to
reflect the balance of the Federal funds required for the remainder of
the project period. If the application is approved, funds will be
awarded for the initial 12-month budget period. Funding will
subsequently be provided in up to 12-month increments for the balance of
the project, dependent upon satisfactory performance in achieving the
objectives of the project in the initial/subsequent budget period(s),
continued relevance of the project activity to SSA, and the availability
of fiscal year funds.

2\. PART I\--FACE SHEET (SF‑424)

The Face Page (SF-424) is a multipurpose standard form. Completion
instructions are available via online screen level help once the
application package is opened on
[www.grants.gov](http://www.grants.gov/) .

In completing these sections, the \"Federal Funds\" budget entries will
relate to the requested SSA discretionary funds only, and
\"Non-Federal\" will include funds from all other sources (e.g.,
applicant, state, local, and other). Federal funds other than requested
SSA discretionary funding should be included in \"Non-Federal\" entries.

\(a\) SECTION A\--BUDGET SUMMARY

Grant applicants requesting assistance to conduct activities under grant
programs administered by SSA are expected to contribute a minimum of 5
percent towards the total cost of the activity. These costs must be
reflected in the grant application. The budget for the activity must
include funds requested from SSA and the applicant\'s share of allowable
costs. (Note: to determine if the Non-Federal amount meets the required
percentage, divide the Non-Federal amount by the Total amount.)

Use line 1 only. Leave lines 2 through 5 blank.

Columns a and b \-- In column a, enter \"SSA\". In column b, enter
\"**96.008**\".

Columns c and d \-- Leave blank.

Columns e, f and g \-- Enter in column e the amount of Federal funds
needed to support the project for the first funding period (usually 12
months). Enter in column f the amount of the cost of the project to be
borne by Non-Federal funds. Enter in column g the total of columns e and
f. The amount shown in column g should agree with the amount shown on
the SF-424 Face Sheet (Part I), exclusive of Program Income.

\(b\) SECTION B\--BUDGET CATEGORIES

Section B contains entries for **[Federal (SSA) funds
only]{.underline}**.

-   Use column one only. Leave columns 2 through 5 blank.

-   On lines 6a through 6h show the estimated Federal costs for each
    object class category. Enter costs for the initial (01 year) budget
    period.

-   Provide a narrative budget justification (under SECTION F) that
    describes how the categorical costs are derived. Detailed
    calculations must include estimation methods, quantities, unit
    costs, and other similar quantitative detail sufficient for the
    calculation to be duplicated.

Line 6a-Personnel \-- Enter the total costs of salaries and wages of
applicant/grantee staff only. A breakdown of the amounts and percentage
of time that comprises the salary must be provided in the budget SECTION
G\--PERSONNEL. In computing estimated salary charges, an individual\'s
base salary represents the total authorized annual compensation that an
applicant organization would be prepared to pay for a specified work
period. The base salary excludes income that an individual may be
permitted to earn outside of full-time duties to the applicant
organization. Do not include costs of consultants or personnel costs of
delegate/subgrantee organizations (consultant costs should be included
in Line 6h-Other).

Line 6b-Fringe Benefits \-- Fringe benefits may be requested as a direct
cost to the extent that they are treated consistently by the applicant
organization as a direct cost to all sponsors. As an alternative, fringe
benefits may be included in the calculation of the applicant
organization\'s indirect costs. If a fringe benefit rate has been
negotiated with a Federal agency, indicate the agency and the applicable
rate under SECTION F. Otherwise provide a breakdown of items, amounts,
and percentages that comprise fringe benefit costs.

Line 6c-Travel \-- Enter total estimated costs of all travel by
employees of the project. Do not include costs for consultant\'s travel.
Under SECTION F describe and justify the requested travel costs,
including the purpose, traveler(s), number of trips involved,
destinations, duration of trip, and projected cost per trip (i.e., local
transportation, mileage allowances, per diem, air travel, subsistence
allowances, etc.).

Line 6d-Equipment \-- Enter the total estimated costs of all equipment
to be charged to the project. \"Equipment\" means tangible
non‑expendable personal property having a useful life of more than one
year and an acquisition cost of \$5,000 or more per unit. However,
consistent with applicant/grantee policy, lower limits may be
established. Under SECTION F, list and fully explain the need for each
item of equipment, the cost per unit, number of units, and total
estimated cost.

Line 6e-Supplies \-- Enter the total estimated costs of all tangible
personal property (supplies) other than that included on line 6d. Under
SECTION F, list/specify general categories of supplies and explain the
need for the items and their costs. Show computations and other
information that supports the amount requested.

Note: If computer equipment and/or software is included in the budget,
fully describe and justify the need for each item.

Line 6f-Contractual \-- Enter the total estimated costs of all
contracts, including (1) procurement contracts (except those which
belong on other lines such as equipment, supplies, etc.) and (2)
contracts with secondary recipient organizations including delegate
organizations and specific project(s) or businesses to be financed by
the applicant. Under SECTION F, identify the purpose and costs
associated. Also include any contracts with organizations for the
provision of technical assistance. Do not include payments to individual
service contractors on this line. If available at the time of
application, attach a list of contractors indicating the name of the
organization, the purpose of the contract and the estimated dollar
amount of the award.

Note: Whenever the applicant/grantee intends to delegate part of the
project to another organization, the applicant/grantee must provide a
detailed budget and budget narrative for each delegate organization. The
total costs of all such organizations will be part of the amount shown
on Line 6f.

All applicants (except State governments) must identify and justify any
anticipated procurement that is expected to exceed the simplified
acquisition threshold (currently set at \$100,000) and to be awarded
without competition. Recipients may be required to make available to SSA
pre‑award review and procurement documents, such as request for
proposals or invitations for bids, independent cost estimates, etc.
under the conditions identified at HHS regulations 20 [CFR Part 435.44
and/or Part 437.36]{.underline}.

Line 6g-Construction \-- SSA programs do not have construction authority
but may support limited alteration and renovation costs. Amounts
included under this category must be fully explained under SECTION F.

Line 6h-Other \-- Enter the total of all other direct costs not clearly
covered by lines a through g. Such costs, where applicable, may include
but are not limited to insurance, fees and travel paid directly to
individual consultants, space and equipment rentals, printing and
publication, computer use, and training costs. Costs identified as
\"miscellaneous\" and \"honoraria\" are not allowable. In SECTION F,
itemize and fully explain all amounts entered under this category,
including the method used in computing the cost.

Line 6i-Total Direct Charges \-- Enter the total of Lines 6a through 6h.

Line 6j-Indirect Costs \--

Applicants which are State and local governments, enter the total amount
of indirect costs. List and explain these costs under SECTION F.
Indicate if the costs are claimed in accordance with an approved State
cost allocation plan.

Applicants other than State and local governments, enter the total
amount of indirect costs. Generally, this line should be used only when
the applicant currently has an indirect cost rate approved by SSA or
another Federal agency or is awaiting such approval. If the costs are
claimed in accordance with an approved indirect cost rate, enclose a
copy of the current rate agreement.

If the applicant organization is in the process of renegotiating a rate,
it should immediately, upon notification that an award will be made,
develop a tentative indirect cost rate proposal based on its most
recently completed fiscal year and submit it to the appropriate
cognizant Federal agency. It should be noted that when an indirect cost
rate is requested, those costs included in the indirect cost pool should
not be charged as direct costs to the grant.

Line 7-Program Income \-- Enter the estimated amount of income, if any,
expected to be generated from this project. Do not add or subtract this
amount from the budget total. Under SECTION F, explain the nature,
source and anticipated use of program income.

\(c\) SECTION C‑‑NON‑FEDERAL RESOURCES

This section is to record the amounts of \"non‑Federal\" resources that
will be used to support the project. \"Non‑Federal\" resources mean
other than SSA funds for which the applicant is applying.

Use line 8 only. Leave lines 9 through 12 blank.

Column a \-- Enter \"SSA\".

Column b \-- Enter the amount of funds and in-kind contributions to be
provided by the applicant.

Column c \-- Enter the State contribution. If the applicant is a State
agency, enter the non‑Federal funds to be contributed by the State other
than the applicant.

Column d \-- Enter the amount of cash and in‑kind contributions to be
made from all other sources.

Column e \-- Enter the total of columns b, c, and d.

The amount in Column e should be equal to the amount in Section A, Line
1, Column f.

\(d\) SECTION D‑‑FORECASTED CASH NEEDS

Line 13 \-- Enter the amount of Federal (SSA) cash needed for the
initial budget period of this grant by quarter. (Note: When the initial
budget period will be more than 12 months, submit a separate sheet to
show each additional 3 months or portion thereof.)

Line 14 \-- Enter the amount of cash from all other sources needed by
quarter during the budget period.

\(e\) SECTION E‑‑BUDGET ESTIMATES OF FEDERAL FUNDS NEEDED FOR BALANCE OF
THE PROJECT

This section should only be completed when the proposed project duration
will be greater than 17 months.

Use line 16 only. Leave lines 17 through 19 blank.

Column a \-- Enter \"SSA\".

Columns b through e \-- Enter the amount(s) of Federal funds which will
be needed to complete the project over the succeeding funding periods
(in years). For example, if the total funding period for the project is
three years, then columns b and c would be completed to show the Federal
funding requirements for the second and third year of the project
(columns d and e would not be completed). **Note:** No project shall be
funded beyond the maximum number of years allowed per the grant program
announcement.

\(f\) SECTION F‑‑OTHER BUDGET INFORMATION

Line 21‑‑Use this space and continuation sheets as necessary to fully
explain and justify the major items included in the budget categories
shown in Section B, column 1. The information provided should include
sufficient detail to facilitate a determination as to allowability,
relevance to the project, and cost/benefit.

Line 22‑‑Enter the type of Federal agency approved indirect cost rate
(provisional, predetermined, final or fixed) that will be in effect
during the funding period, the estimated amount of the base to which the
rate is applied and the total indirect expense. Also, enter the date the
rate was approved, where applicable. Attach a copy of the rate agreement
if it was negotiated with a Federal agency other than SSA.

Line 23‑‑Provide any other explanations and continuation sheets required
or deemed necessary to justify or explain the budget information.

\(g\) SECTION G\--PERSONNEL

An example for completion of this section is included on the back of the
form.

1\. Personnel

List all personnel chargeable as a direct cost to the project by title,
salary and percentage of effort. Include names for key positions only.
The amount shown for \"Total salaries and wages\" should agree with the
amount shown in Section B, column 1, line 6a-Personnel. (Note: If any
portion of the personnel cost is to be charged as non-Federal costs,
list the non-Federal personnel costs separate from the costs to be
charged to Federal (SSA) funds.)

Enter in column 1 the annual (12 months) salary rate for each position
which will be filled for all or any part of the year by an incumbent
working on the project. This rate may not be more than that paid by the
grantee to other employees in comparable positions or, if the grantee
has no comparable positions, the rate may not be more than that paid for
such services elsewhere in the community.

Enter in column 2 the number of months the position will be filled by an
incumbent working on the project.

Enter in column 3 the percent of time or effort the incumbent will
devote to the project during the number of months shown in column 2.

Enter in column 4 the total amount required as computed from the
information shown in columns 1 through 3. Use the following formula:

[No. of Months (col. 2)]{.underline}

Annual Salary (Col. 1) X 12 X

Percent of Effort (Col. 3) = Total Amount Required (Col. 4)

2\. Fringe Benefits

Enter in the parenthesis the applicable fringe benefit rate(s). In
column 4, enter the amount determined by applying the rate to the total
of the salaries in column 4 to which the rate(s) applies.

3\. Option for Salary Detail Submission

Applicants may request that the salary rates and amounts requested for
individuals not be made available to reviewing consultants. To do so, an
additional copy of this page must be submitted, complete in all
respects, except that columns 1 and 4 may be left blank.

4\. Function/Task Description

Attach a description of the function or task to be performed for all
personnel listed.

PART III\--PROJECT NARRATIVE

**The project narrative is to be completed in accordance with the
published Request For Applications.**

**N O T I C E**

TO: SOCIAL SECURITY ADMINISTRATION (SSA) GRANT APPLICANTS AND AWARD
RECIPIENTS.

Prior to March 31, 1995, the Social Security Administration (SSA) was a
component of the U.S. Department of Health and Human Services (DHHS).
The Social Security Independence and Program Improvements Act of 1994,
Public Law No. 103‑296, enacted August 15, 1994, established SSA as an
independent establishment in the Executive Branch, effective March 31,
1995. SSA's published grant regulations include 20 C.F.R. Parts 435, 437
and 438.

In view of SSA\'s status as an independent establishment, we request
that you note the following.

1\. In the SSA FEDERAL ASSISTANCE APPLICATION FORM, PART IV ASSURANCES,
All references to \"Department of Health and Human Services\" mean the
\"Social Security Administration.\" Also, for the Privacy Act and
Freedom of Information Act (page IV.B.), in lieu of referring to the
DHHS regulations at 45 CFR Part 5b.2 and 45 CFR Part 5, please refer to
the SSA regulations at 20 CFR Part 401.10 and 20 CFR Part 402,
respectively.

2\. On March 9, 1995, a deviation was granted by DHHS that exempted SSA
from the provisions of 45 C.F.R. Part 74, Subpart F. This deviation was
in effect at the time SSA became an independent establishment. Thus, the
provisions of Subpart F that provide that the DHHS Departmental Appeals
Board will hear appeals of final agency decisions adverse to grant
recipients are not applicable to grants awarded by SSA. In the event of
a dispute over a matter related to a grant, SSA will issue a final
decision. There is no right of administrative appeal of a final decision
adverse to the grant recipient.

3\. PAYMENT PROCEDURES - Payment for all grants awarded by SSA are paid
through the SSA Office of Finance. Inquiries regarding payments should
be directed to:

Division of Central Accounting and Reporting

Social Security Administration

PO Box 47

Baltimore, Maryland 21235-0047

Telephone (410) 965-0021

We direct the attention of potential SSA grantees to the following
statutory provisions, which are contained in SSA\'s appropriation
language.

Public Law 106-113 Title V \-- General Provisions

> SEC. 503. (a) \"No part of any appropriation contained in this Act
> shall be used, other than for normal and recognized
> executive-legislative relationships, for publicity or propaganda
> purposes, for the preparation, distribution, or use of any kit,
> pamphlet, booklet, publication, radio, television, or video
> presentation designed to support or defeat legislation pending before
> the Congress or any State legislature, except in presentation to the
> Congress or any State legislature itself.\"
>
> SEC. 503. (b) \"No part of any appropriation contained in this act
> shall be used to pay the salary or expenses of any grant or contract
> recipient, or agent acting for such recipient, related to any activity
> designed to influence legislation or appropriations pending before the
> Congress or any State legislature.\"
>
> Sec. 506. (a) PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS - It is
> the sense of the Congress that, to the greatest extent practicable,
> all equipment and products purchased with funds made available in this
> Act should be American-made.
>
> Sec. 507. When issuing statements, press releases, requests for
> proposals, bid solicitations and other documents describing projects
> or programs funded in whole or in part with Federal money, all
> grantees receiving Federal funds included in this Act, including but
> not limited to State and local governments and recipients of Federal
> research grants, shall clearly state: (1) the percentage of the total
> costs of the program or project which will be financed with Federal
> money; (2) the dollar amount of Federal funds for the project or
> program; and (3) percentage and dollar amount of the total costs of
> the project or program that will be financed by non-governmental
> sources.

**INSTRUCTIONS FOR COMPLETION OF DISCLOSURE OF LOBBYING ACTIVITIES**

This disclosure form shall be completed by the reporting entity, whether
subawardee or prime Federal recipient, at the initiation or receipt of a
covered Federal action, or a material change to a previous filing,
pursuant to title 31 U.S.C. section 1352. **The filing of a form is
required for each payment or agreement to make payment to any lobbying
entity for influencing or attempting to influence an officer or employee
of any agency, a Member of Congress, an officer or employee of Congress,
or an employee of a Member of Congress in connection with a covered
Federal action.** Complete all items that apply for both the initial
filing and material change report. Refer to the implementing guidance
published by the Office of Management and Budget for additional
information.

1\. Identify the type of covered Federal action for which lobbying
activity is and/or has been secured to influence the outcome of a
covered Federal action.

2\. Identify the status of the covered Federal action.

3\. Identify the appropriate classification of this report. If this is a
follow-up report caused by a material change to the information
previously reported, enter the year and quarter in which the change
occurred. Enter the date of the last previously submitted report by this
reporting entity for this covered Federal action.

4\. Enter the full name, address, city, state and zip code of the
reporting entity. Include Congressional District, if known. Check the
appropriate classification of the reporting entity that designates if it
is, or expects to be, a prime or subaward recipient. Identify the tier
of the subawardee, e.g., the first subawardee of the prime is the 1st
tier. Subawards include but are not limited to subcontracts, subgrants
and contract awards under grants.

5\. If the organization filing the report in item 4 checks
\"Subawardee\", then enter the full name, address, city, state and zip
code of the prime Federal recipient. Include Congressional District, if
known.

6\. Enter the name of the Federal agency making the award or loan
commitment. Include at least one organizational level below agency name,
if known. For example, Department of Transportation, United States Coast
Guard.

7\. Enter the Federal program name or description for the covered
Federal action (item 1). If known, enter the full Catalog of Federal
Domestic Assistance (CFDA) number for grants, cooperative agreements,
loans, and loan commitments.

8\. Enter the most appropriate Federal identifying number available for
the Federal action identified in Item 1 (e.g., Request for Proposal
(RFP) number, Invitation for Bid (IFB) number, grant announcement
number, the contract, grant, or loan award number; the
application/proposal control number assigned by the Federal agency).
Include prefixes, e.g., \"RFP‑DE‑90‑001.\"

9\. For a covered Federal action where there has been an award or loan
commitment by the Federal agency, enter the federal amount of the
award/loan commitment for the prime entity identified in item 4 or 5.

10\. (a)Enter the full name, address, city, state and zip code of the
registrant, under the Lobbying Disclosure Act of 1995, engaged by the
reporting entity

identified in item 4 to influence the covered Federal action.

> (b)Enter the full names of the individual(s) performing services, and
> include full address if different from 10 (a). Enter Last Name, First
> Name, and Middle Initial (MI).

16\. The certifying official shall sign and date the form, print his/her
name, title, and telephone number.

  -----------------------------------------------------------------------
  Public reporting burden for this collection of information is estimated
  to average 30 minutes per response, including time for reviewing
  instructions, searching existing data sources, gathering and
  maintaining the data needed, and completing and reviewing the
  collection of information. Send comments regarding the burden estimate
  or any other aspects of this collection of information, including
  suggestions for reducing this burden, to the Office of Management and
  Budget, Paperwork Reduction Project (0348-0046), Washington, D.C.
  20503.

  -----------------------------------------------------------------------

PART \_\_\_\_\_\_\_\_ - NEW RESTRICTIONS ON LOBBYING

Subpart A ‑ General

Sec.

\_\_\_.100 Conditions on use of funds.

\_\_\_.105 Definitions.

\_\_\_.110 Certification and Disclosure.

Subpart B ‑ Activities by Own Employees.

\_\_\_.200 Agency and legislative liaison.

\_\_\_.205 Professional and technical services.

\_\_\_.210 Reporting.

Subpart C ‑ Activities by Other than Own Employees

\_\_\_.300 Professional and technical services.

Subpart D‑ Penalties and Enforcement

\_\_\_.400 Penalties.

\_\_\_.405 Penalty procedures.

\_\_\_.410 Enforcement.

Subpart E ‑ Exemptions

\_\_\_.500 Secretary of Defense.

Subpart F‑ Agency Reports

\_\_\_.600 Semi‑annual compilation.

\_\_\_.605 Inspector General report.

Appendix A to Part \_\_\_ ‑ Certification Regarding Lobbying

Appendix B to Part \_\_\_ ‑ Disclosure Form to Report Lobbying

Appendix C to Part \_\_\_ ‑ Contract Clause

Authority: Section 319, Public Law 101‑121 (31 U.S.C. 1352)

(citation to Agency rulemaking authority); as amended by sec. 10, Public

Law 104‑65.

**Subpart A ‑ General**

\_\_\_.100 Conditions on use of funds.

\(a\) No appropriated funds may be expended by the recipient of a
Federal contract, grant, loan, or cooperative agreement to pay any
person for influencing or attempting to influence an officer or employee
of any agency, a Member of Congress, an officer or employee of Congress,
or an employee of a Member of Congress in connection with any of the
following covered Federal actions: the awarding of any Federal contract,
the making of any Federal grant, the making of any Federal loan, the
entering into of any cooperative agreement, and the extension,
continuation, renewal, amendment, or modification of any Federal
contract, grant, loan, or cooperative agreement.

\(b\) Each person who requests or receives from an agency a Federal
contract, grant, loan, or cooperative agreement shall file with that
agency a certification, set forth in Appendix A, that the person has not
made, and will not make, any payment prohibited by paragraph (a) of this
section.

\(c\) Each person who requests or receives from an agency a Federal
contract, grant, loan, or a cooperative agreement shall file with that
agency a disclosure form, set forth in Appendix B, if such person has
made or has agreed to make any payment using nonappropriated funds (to
include profits from any covered Federal

action), which would be prohibited under paragraph (a) of this section
if paid for with appropriated funds.

\(d\) Each person who requests or receives from an agency a commitment
providing for the United States to insure or guarantee a loan shall file
with that agency a statement, set forth in Appendix A, whether that
person has made or has agreed to make any payment to influence or
attempt to influence an officer or employee of any agency, a Member of
Congress, an officer or employee of Congress, or an employee of a Member
of Congress in connection with that loan insurance or guarantee.

\(e\) Each person who requests or receives from an agency a commitment
providing for the United States to insure or guarantee a loan shall file
with that agency a disclosure form, set forth in Appendix B, if that
person has made or has agreed to make any payment to influence or
attempt to influence an officer or employee of any agency, a Member of
Congress, an officer or employee of Congress, or an employee of a Member
of Congress in connection with that loan insurance or guarantee.

\_\_\_.105 Definitions.

For purposed of this part:

\(a\) [Agency]{.underline}, as defined in 5 U.S.C. 552(f), includes
Federal executive departments and agencies as well as independent
regulatory commissions and Government corporations, as defined in 31
U.S.C. 9101(1).

\(b\) [Covered Federal action]{.underline} means any of the following
Federal actions:

\(1\) The awarding of any Federal contract;

\(2\) The making of any Federal grant;

\(3\) The making of any Federal loan;

\(4\) The entering into of any cooperative agreement; and,

\(5\) The extension, continuation, renewal, amendment, or modification
of any Federal contract, grant, loan or cooperative agreement.

Covered Federal action does not include receiving from an agency a
commitment providing for the United States to insure or guarantee a
loan. Loan guarantees and loan insurance are addressed independently
within this part.

\(c\) [Federal contract]{.underline} means an acquisition contract
awarded by an agency, including those subject to the Federal Acquisition
Regulation (FAR), and any other acquisition contract for real or
personal property or services not subject to the FAR.

\(d\) [Federal cooperative agreement]{.underline} means a cooperative
agreement entered into by an agency.

\(e\) [Federal grant]{.underline} means an award of financial assistance
in the form of money, or property in lieu of money, by the Federal
Government or a direct appropriation made by law to any person. The term
does not include technical assistance which provides services instead of
money, or other assistance in the form of revenue sharing, loans, loan
guarantees, loan insurance, interest subsidies, insurance, or direct
United States cash assistance to an individual.

\(f\) [Federal loan]{.underline} means a loan made by an agency. The
term does not include loan guarantee or loan insurance.

\(g\) [Indian Tribe]{.underline} and [tribal organization]{.underline}
have the meaning provided in section 4 of the Indian Self‑Determination
and Education Assistance Act (25 U.S.C. 450B). Alaskan Natives are
included under the definitions of Indian tribes in that Act.

\(h\) [Influencing or attempting to influence]{.underline} means making,
with the intent to influence, any communication to or appearance before
an officer or employee of any agency, a Member of Congress, an officer
or employee of Congress, or an employee of a Member of Congress in
connection with any covered Federal action.

\(i\) [Loan guarantee]{.underline} and [loan insurance]{.underline}
means an agency\'s guarantee or insurance of a loan made by a person.

\(j\) [Local government]{.underline} means a unit of government in a
State and, if chartered, established, or otherwise recognized by a State
for the performance of a governmental duty, including a local public
authority, a special district, an intrastate district, a council of
governments, a sponsor group representative organization, and any other
instrumentality of a local government.

\(k\) officer or employee of an agency includes the following
individuals who are employed by an agency:

\(1\) An individual who is appointed to a position in the Government
under title 5, U.S. Code, including a position under a temporary
appointment;

\(2\) A member of the uniformed services as defined in section 101(3),
title 37, U.S. Code;

\(3\) A special Government employee as defined in section 202, title 18,
U.S. Code; and,

\(4\) An individual who is a member of a Federal advisory committee, as
defined by the Federal Advisory Committee Act, title 5, U.S. appendix 2.

\(l\) [Person]{.underline} means an individual corporation, company,
association, authority, firm, partnership, society, State and local
government, regardless of whether such entity is operated for-profit, or
not for-profit. This term excludes an Indian tribe, tribal organization,
or any other Indian organization with respect to expenditures
specifically permitted by other Federal law.

\(m\) [Reasonable compensation]{.underline} means, with respect to a
regularly employed officer or employee of any person, compensation that
is consistent with the normal compensation for such officer or employee
for work that is not furnished to, not funded by, or not furnished in
cooperation with the Federal Government.

\(n\) [Reasonable payment]{.underline} means, with respect to
professional and other technical services, a payment in an amount that
is consistent with the amount normally paid for such services in the
private sector.

\(o\) [Recipient]{.underline} includes all contractors, subcontractors
at any tier, and subgrantees at any tier of the recipient of funds
received in connection with a Federal contract, grant, loan, or
cooperative agreement. The term excludes an Indian tribe, tribal
organization, or any other Indian organization with respect to
expenditures specifically permitted by other Federal law.

\(p\) [Regularly employed]{.underline} means, with respect to an officer
or employee of a person requesting or receiving a Federal contract,
grant, loan, or cooperative agreement or a commitment providing for the
United States to insure or guarantee a loan, an officer or employee who
is employed by such person for at least 130 working days within one year
immediately preceding the date of the submission that initiates agency
consideration of such person for receipt of such contract, grant, loan,
cooperative agreement, loan insurance commitment, or loan guarantee
commitment. An officer or employee who is employed by such person for
less than 130 working days within one year immediately preceding the
date of the submission that initiates agency consideration of such
person shall be considered to be regularly employed as soon as he or she
is employed by such person for 130 working days.

\(q\) [State]{.underline} means a State of the United States, the
District of Columbia, the Commonwealth of Puerto Rico, a territory or
possession of the United States, an agency or instrumentality of a
State, and a multi‑State, regional, or interstate entity having
governmental duties and powers.

\_\_\_.110 Certification and Disclosure.

\(a\) Each person shall file a certification, and a disclosure form, if
required, with each submission that initiates agency consideration of
such person for:

\(1\) Award of a Federal contract, grant, or cooperative agreement
exceeding \$100,000; or

\(2\) An award of a Federal loan or a commitment providing for the
United States to insure or guarantee a loan exceeding \$150,000.

\(b\) Each person shall file a certification, and a disclosure form, if
required, upon receipt by such person of:

\(1\) A Federal contract, grant, or cooperative agreement exceeding
\$100,000; or

\(2\) A Federal loan or a commitment providing for the United States to
insure or guarantee a loan exceeding \$150,000, unless such person
previously filed a certification, and a disclosure form, if required,
under paragraph (a) of this section.

\(c\) Each person shall file a disclosure form at the end of each
calendar quarter in which there occurs any event that required
disclosure or that materially affects the accuracy of the information
contained in any disclosure form previously filed by such person under
paragraphs (a) or (b) of this section. An event that materially affects
the accuracy of the information reported includes:

\(1\) A cumulative increase of \$25,000 or more in the amount paid or
expected to be paid for influencing or attempting to influence a covered
Federal action; or

\(2\) A change in the person(s) or individual(s) influencing or
attempting to influence a covered Federal action; or,

\(3\) A change in the officer(s), employee(s), or Member(s) contacted to
influence or attempt to influence a covered Federal action.

\(d\) Any person who requests or receives from a person referred to in
paragraphs (a) or (b) of this section:

\(1\) A subcontract exceeding \$100,000 at any tier under a Federal
contract;

\(2\) A subgrant, contract, or subcontract exceeding \$100,000 at any
tier under a Federal grant;

\(3\) A contract or subcontract exceeding \$100,000 at any tier under a
Federal loan exceeding \$150,000; or,

\(4\) A contract or subcontract exceeding \$100,000 at any tier under a
Federal cooperative agreement,

shall file a certification, and a disclosure form, if required, to the
next tier above.

\(e\) disclosure forms, but not certifications, shall be forwarded from
tier to tier until received by the person referred to in paragraphs (a)
or (b) of this section. That person shall forward all disclosure forms
to the agency.

\(f\) Any certification or disclosure form filed under paragraph (e)
shall be treated as a material representation of fact upon which all
receiving tiers shall rely. All liability arising from an erroneous
representation shall be borne solely by the tier filing that
representation and shall not be shared by any tier to which the
erroneous representation is forwarded. Submitting an erroneous
certification or disclosure constitutes a failure to file the required
certification or disclosure, respectively. If a person fails to file a
required certification or disclosure, the United States may pursue all
available remedies, including those authorized by section 1352, title
31, U.S. Code.

\(g\) For awards and commitments in process prior to December 23, 1989,
but not made before that date, certifications shall be required at award
or commitment, covering activities occurring between December 23, 1989,
and the date of award or commitment. However, for awards and commitments
in process prior to the December 23, 1989 effective date of these
provisions, but not made before December 23, 1989, disclosure forms
shall not be required at time of award or commitment but shall be filed
within 30 days.

\(h\) No reporting is required for an activity paid for with
appropriated funds if that activity is allowable under either Subpart B
or C.

**Subpart B ‑ Activities by Own Employees**

\_\_\_.200 Agency and legislative liaison.

\(a\) The prohibition on the use of appropriated funds, in \_.100 (a) ,
does not apply in the case of a payment of reasonable compensation made
to an officer or employee of a person requesting or receiving a Federal
contract, grant, loan, or cooperative agreement if the payment is for
agency and legislative liaison activities not directly related to a
covered Federal action.

\(b\) For purposes of paragraph (a) of this section, providing any
information specifically requested by an agency or Congress is allowable
at any time.

\(c\) For purposes of paragraph (a) of this section, the following
agency and legislative liaison activities are allowable at any time only
where they are not related to a specific solicitation for any covered
Federal action:

\(1\) Discussing with an agency (including individual demonstrations)
the qualities and characteristics of the person\'s products or services,
conditions or terms of sale, and service capabilities; and,

\(2\) Technical discussions and other activities regarding the
application or adaptation of the person\'s products or services for any
agency\'s use.

\(d\) For purposes of paragraph (a) of this section, the following
agency and legislative liaison activities are allowable only where they
are prior to formal solicitation of any covered. Federal action:

\(1\) Providing any information not specifically requested but necessary
for an agency to make an informed decision about initiation of a covered
Federal action;

\(2\) Technical discussions regarding the preparation of an unsolicited
proposal prior to its official submission; and, (3) Capability
presentations by persons seeking awards from an agency pursuant to the
provisions of the Small Business Act, as amended by Public Law 95‑507
and other subsequent amendments.

\(e\) Only those activities expressly authorized by this section are
allowable under this section.

\_\_\_.205 Professional and technical services.

\(a\) The prohibition on the use of appropriated funds, in \_.100 (a),
does not apply in the case of a payment of reasonable compensation made
to an officer or employee of a person requesting or receiving a Federal
contract, grant, loan, or cooperative agreement or an extension,
continuation, renewal, amendment, or notification of a Federal contract,
grant, loan, or cooperative agreement if payment is for professional or
technical services rendered directly in the preparation, submission, or
negotiation of any bid, proposal, or application for that Federal
contract, grant, loan, or cooperative agreement or for meeting
requirements imposed by or pursuant to law as a condition for receiving
that Federal contract, grant, loan, or cooperative agreement.

\(b\) For purposes of paragraph (a) of this section \"professional and
technical services\" shall be limited to advice and analysis directly
applying any professional or technical discipline. For example, drafting
of a legal document accompanying a bid or proposal by a lawyer is
allowable. Similarly, technical advice provided by an engineer on the
performance or operational capability of a piece of equipment rendered
directly in the negotiation of a contract is allowable. However,
communications with the intent to influence made by a professional (such
as a licensed lawyer) or a technical person (such as a licensed
accountant) are not allowable under this section unless they provide
advice and analysis directly applying their professional or technical
expertise and unless the advice or analysis is rendered directly and
solely in the preparation, submission or negotiation of a covered
Federal action. Thus, for example, communications with the intent to
influence made by a lawyer that do not provide legal advice or analysis
directly and solely related to the legal aspects of his or her client\'s
proposal, but generally advocate one proposal over another are not
allowable under this section because the lawyer is not providing
professional legal services. Similarly, communications with the intent
to influence made by an engineer providing an engineering analysis prior
to the preparation or submission of a bid or proposal are not allowable
under this section since the engineer is providing technical services,
but not directly in the preparation, submission or negotiation of
covered Federal action.

\(c\) Requirements imposed by or pursuant to law as a condition for
receiving a covered Federal award include those required by law or
regulation, or reasonably expected to be required by law or regulation,
and any other requirements in the actual award documents.

\(d\) Only those services expressly authorized by this section are

allowable under this section.

\_\_\_.210 Reporting.

No reporting is required with respect to payments of reasonable
compensation made to regularly employed officers or employees of a
person.

**Subpart C ‑ Activities by Other than own Employees**

\_\_\_.300 Professional and technical services.

\(a\) The prohibition on the use of appropriated funds, in \_.100 (a),
does not apply in the case of any reasonable payment to a person, other
than an officer or employee of a person requesting or receiving a
covered Federal action, if the payment is for professional or technical
services rendered directly in the preparation, submission, or
negotiation of any bid, proposal, or application for that Federal
contract, grant, loan, or cooperative agreement or for meeting
requirements imposed by or pursuant to law as a condition for receiving
that Federal contract, grant, loan, or cooperative agreement.

\(b\) The reporting requirements in \_\_\_.110 (a) and (b) regarding
filing a disclosure form by each person, if required, shall not apply
with respect to professional or technical services rendered directly in
the preparation, submission, or negotiation of any commitment providing
for the United States to insure or guarantee a loan.

\(c\) For purposes of paragraph (a) of this section \"professional and
technical services\" shall be limited to advice and analysis directly
applying any professional or technical discipline. For example, drafting
of a legal document accompanying a bid or proposal by a lawyer is
allowable. Similarly, technical advice provided by an engineer on the
performance or operational capability of a piece of equipment rendered
directly in the negotiation of a contract is allowable. However,
communications with the intent to influence made by a professional (such
as a licensed lawyer) or a technical person (such as a licensed
accountant) are not allowable under this section unless they provide
advice and analysis directly applying their professional or technical
expertise and unless the advice or analysis is rendered directly and
solely in the preparation, submission or negotiation of a covered
Federal action. Thus, for example, communications with the intent to
influence made by a lawyer that do not provide legal advice or analysis
directly and solely related to the legal aspects of his or her client\'s
proposal, but generally advocate one proposal over another are not
allowable under this section because the lawyer is not providing
professional legal services. Similarly, communications with the intent
to influence made by an engineer providing an engineering analysis prior
to the preparation or submission of a bid or proposal are not allowable
under this section since the engineer is providing technical services
but not directly in the preparation, submission or negotiation of a
covered Federal action.

\(d\) Requirements imposed by or pursuant to law as a condition for
receiving a covered Federal award include those required by law or
regulation, or reasonably expected to be required by law or regulation,
and any other requirements in the actual award documents.

\(e\) Persons other than officers or employees of a person requesting or
receiving a covered Federal action include consultants and trade
associations.

(f ) only those services expressly authorized by this section are
allowable under this section.

**Subpart D ‑ Penalties and Enforcement**

\_\_\_.400 Penalties.

\(a\) Any person who makes an expenditure prohibited herein shall be
subject to a civil penalty of not less than \$10,000 and not more than
\$100,000 for each such expenditure.

\(b\) Any person who fails to file or amend the disclosure form (see
Appendix B) to be filed or amended if required herein, shall be subject
to a civil penalty of not less than \$10,000 and not more than \$100,000
for each such failure.

\(c\) A filing or amended filing on or after the date on which an
administrative action for the imposition of a civil penalty is commenced
does not prevent the imposition of such civil penalty for a failure
occurring before that date. An administrative action is commenced with
respect to a failure when an investigating official determines in
writing to commence an investigation of an allegation of such failure.

\(d\) in determining whether to impose a civil penalty, and the amount
of any such penalty, by reason of a violation by any person the agency
shall consider the nature, circumstances, extent, and gravity of the
violation, the effect on the ability of such person to continue in
business, any prior violations by such person, the degree of culpability
of such person, the ability of the person to pay the penalty, and such
other matters as may be appropriate.

\(e\) First offenders under paragraph (a) and (b) of this section shall
be subject to a civil penalty of \$10,000, absent aggravating
circumstances. Second and subsequent offenses by persons shall be
subject to an appropriate civil penalty between \$10,000 and \$100,000,
as determined by the agency head or his or her designee.

\(f\) An imposition of a civil penalty under this section does not
prevent the United States from seeking any other remedy that may apply
to the same conduct that is the basis for the imposition of such civil
penalty.

\_\_\_ .405 Penalty procedures.

Agencies shall impose and collect civil penalties pursuant to the
provisions of the Program Fraud and Civil Remedies Act, 31 U.S.C.
sections 3803 (except subsection (c)) , 3804, 3805, 3806, 3807, 3808,
and 3812, insofar as these provisions are not inconsistent with the
requirement herein.

\_\_\_ .410 Enforcement.

The head of each agency shall take such actions as are necessary to
ensure that the provisions herein are vigorously implemented and
enforced in that agency.

**Governmentwide Debarment and Suspension (Nonprocurement)**

**(20 CFR Part 436)**

Executive Order (E.O.) 12549, which is implemented by 20 CFR Part 436,
provides that, to the extent permitted by law, Executive departments and
agencies shall participate in a governmentwide system for nonprocurement
debarment and suspension. A person who is debarred or suspended shall be
excluded from Federal financial and nonfinancial assistance and benefits
under Federal programs and activities. Debarment or suspension of a
participant in a program by one agency shall have governmentwide effect.

In accordance with 20 CFR Part 436, any debarment, suspension, proposed
debarment or other governmentwide exclusion initiated under the Federal
Acquisition Regulation (FAR) on or after August 25, 1995 shall be
recognized by and effective for Executive Branch agencies and
participants as an exclusion under this regulation. Similarly, any
debarment, suspension or other governmentwide exclusion initiated under
this regulation on or after August 25, 1995 shall be recognized by and
effective for those agencies as a debarment or suspension under the FAR.

**Definitions**

(From 20 CFR Part 436)

**[Covered transactions]{.underline}**. For purposes of these
regulations, a covered transaction is a primary covered transaction or a
lower tier covered transaction. Covered transactions at any tier need
not involve the transfer of Federal funds.

**[(i) Primary covered transaction]{.underline}**. Except as noted in
paragraph (a)(2) of this section, a primary covered transaction is any
nonprocurement transaction between an agency and a person, regardless of
type, including: grants, cooperative agreements, scholarships,
fellowships, contracts of assistance, loans, loan guarantees, subsidies,
insurance, payments for specified use, donation agreements and any other
nonprocurement transactions between a Federal agency and a person.
Primary covered. transactions also include those transactions specially
designated by the U. S. Department of Housing and Urban Development in
such agency\'s regulations governing debarment and suspension.

**[(ii) Lower tier covered transaction]{.underline}**. A lower tier
covered transaction is:

> \(A\) Any transaction between a participant and a person other than a
> procurement contract for goods or services,
>
> regardless of type, under a primary covered transaction.
>
> \(B\) Any procurement contract for goods or services between a
> participant and a person, regardless of type, expected to equal or
> exceed the Federal procurement small purchase threshold fixed at 10
> U.S.C. 2304(g) and 41 U.S.C. 253(g) (currently \$100,000) under a
> primary covered transaction.
>
> \(C\) Any procurement contract for goods or services between a
> participant and a person under a covered transaction, regardless of
> amount, under which that person will have a critical influence on or
> substantive control over that covered transaction. Such persons are:
>
> \(1\) Principal investigators.
>
> \(2\) Providers of Federally‑required audit services.
>
> \(3\) Researchers.

**[Debarment]{.underline}**. An action taken by a debarring official in
accordance with these regulations to exclude a person from participating
in covered transactions. A person so excluded is \"debarred.\"

**[Ineligible]{.underline}**. Excluded from participation in Federal
nonprocurement programs pursuant to a determination of ineligibility
under statutory, executive order, or regulatory authority, other than
Executive Order 12549 and its agency implementing regulations; for
example, excluded pursuant to the Davis‑Bacon Act and its implementing
regulations, the equal employment opportunity acts and executive orders,
or the environmental protection acts and executive orders. A person is
ineligible where the determination of ineligibility affects such
person\'s eligibility to participate in more than one covered
transaction.

**[Participant]{.underline}**. Any person who submits a proposal for,
enters into, or reasonably may be expected to enter into a covered
transaction. This term also includes any person who acts on behalf of or
is authorized to commit a participant in a covered transaction as an
agent or representative of another participant.

**[Person]{.underline}**. Any individual, corporation, partnership,
association, unit of government or legal entity, however organized,
except: foreign governments or foreign governmental entities, public
international organizations, foreign government owned (in whole or in
part) or controlled entities, and entities consisting wholly or
partially of foreign governments or foreign governmental entities.

**[Principal]{.underline}**. Officer, director, owner, partner, key
employee, or other person within a participant with primary management
or supervisory responsibilities; or a person who has a critical
influence on or substantive control over a covered transaction, whether
or not employed by the participant. Persons who have a critical
influence or substantive control over a covered transaction are:

\(1\) Principal investigators.

\(2\) Researchers.

**[Proposal]{.underline}**. A solicited or unsolicited bid, application,
request, invitation to consider or similar communication by or on behalf
of a person seeking to participate or to receive a benefit directly or
indirectly, in or under a covered transaction.

**[Suspension]{.underline}**. An action taken by a suspending official
in accordance with these regulations that immediately excludes a person
from participating in covered transactions for a temporary period,
pending completion of an investigation and such legal, debarment and
Program Fraud Civil Remedies or proceedings as may ensue. A person
excluded is \"suspended.\"

**[Voluntary exclusion or voluntarily excluded]{.underline}**. A status
of nonparticipation or limited participation in covered transactions
assumed by a person pursuant to the terms of a settlement.

**[CERTIFICATION REGARDING DEBARMENT, SUSPENSION, AND
OTHER]{.underline}**

**[RESPONSIBILITY MATTERS‑PRIMARY COVERED TRANSACTIONS]{.underline}**

**[Instructions for Certification]{.underline}**

1\. By signing and submitting this proposal, the prospective primary
participant is providing the certification set out below.

2\. The inability of a person to provide the certification required
below will not necessarily result in denial of participation in this
covered transaction. The prospective participant shall submit an
explanation of why it cannot provide the certification set out below.
The certification or explanation will be considered in connection with
the department or agency\'s determination whether to enter into this
transaction. However, failure of the prospective primary participant to
furnish a certification or an explanation shall disqualify such person
from participation in this transaction.

3\. The certification in this clause is a material representation of
fact upon which reliance was placed when the department or agency
determined to enter into this transaction. If it is later determined
that the prospective primary participant knowingly rendered an erroneous
certification, in addition to other remedies available to the Federal
Government, the department or agency may terminate this transaction for
cause or default.

4\. The prospective primary participant shall provide immediate written
notice to the department or agency to which this proposal is submitted
if at any time the prospective primary participant learns that its
certification was erroneous when submitted or has become erroneous by
reason of changed circumstances.

5\. The terms \"covered transaction,\" \"debarred,\" \"suspended,\"
\"ineligible,\" \"lower tier covered transaction,\" \"participant,\"
\"person,\" \"primary covered transaction,\" \"principal,\" \"proposal\"
and \"voluntarily excluded,\" as used in this clause, have the meanings
set out in the Definitions and Coverage sections of the rules
implementing Executive Order 12549: 20 CFR Part 436. You may contact the
department or agency to which this proposal is being submitted for
assistance in obtaining a copy of those regulations.

6\. The prospective primary participant agrees by submitting this
proposal that, should the proposed covered transaction be entered into,
it shall not knowingly enter into any lower tier covered transaction
with a person who is proposed for debarment under 48 CFR part 9, subpart
9.4, debarred, suspended, declared ineligible, or voluntarily excluded
from participation in this covered transaction, unless authorized by the
department or agency entering into this transaction.

7\. The prospective primary participant further agrees by submitting
this proposal that it will include the clause titled \"Certification
Regarding Debarment, Suspension, Ineligibility and Voluntary
Exclusion‑Lower Tier Covered Transaction,\" provided by the department
or agency entering into this covered transaction, without modification,
in all lower tier covered transactions and in all solicitations for
lower tier covered transactions.

8\. A participant in a covered transaction may rely upon a certification
of a prospective participant in a lower tier covered transaction that it
is not proposed for debarment under 48 CFR part 9, subpart 9.4,
debarred, suspended, ineligible, or voluntarily excluded from the
covered transaction, unless it knows that the certification is
erroneous. A participant may decide the method and frequency by which it
determines the eligibility of its principals. Each participant may, but
is not required to, check the List of Parties Excluded from Federal
Procurement and Nonprocurement Programs.

9\. Nothing contained in the foregoing shall be construed to require
establishment of a system of records in order to render in good faith
the certification required by this clause. The knowledge and information
of a participant is not required to exceed that which is normally
possessed by a prudent person in the ordinary course of business
dealings..

10\. Except for transactions authorized under paragraph 6 of these
instructions, if a participant in a covered transaction knowingly enters
into a lower tier covered transaction with a person who is proposed for
debarment under 48 CFR part 9, subpart 9.4, suspended, debarred,
ineligible, or voluntarily excluded from participation in this
transaction, in addition to other remedies available to the Federal
Government, the department or agency may terminate this transaction for
cause or default.

**[Certification Regarding Debarment, Suspension, and
Other]{.underline}**

**[Responsibility Matters‑‑Primary Covered Transactions]{.underline}**

\(1\) The prospective primary participant certifies to the best of its
knowledge and belief, that it and its principals:

> \(a\) Are not presently debarred, suspended, proposed for debarment,
> declared ineligible, or voluntarily excluded by any Federal department
> or agency;
>
> \(b\) Have not within a three‑year period preceding this proposal been
> convicted of or had a civil judgment rendered against them for
> commission of fraud or a criminal offense in connection with
> obtaining, attempting to obtain, or performing a public (Federal,
> State or local) transaction or contract under a public transaction;
> violation of Federal or State antitrust statutes or commission of
> embezzlement, theft, forgery, bribery, falsification or destruction of
> records, making false statements, or receiving stolen property;
>
> \(c\) Are not presently indicted for or otherwise criminally or
> civilly charged by a governmental entity (Federal, State or local)
> with commission of any of the offenses enumerated in paragraph (1)(b)
> of this certification; and
>
> \(d\) Have not within a three‑year period preceding this
> application/proposal had one or more public transactions (Federal,
> State or local) terminated for cause or default.

\(2\) Where the prospective primary participant is unable to certify to
any of the statements in this certification, such prospective
participant shall attach an explanation to this proposal.

**[CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY
AND]{.underline}**

**[VOLUNTARY EXCLUSION‑‑LOWER TIER COVERED TRANSACTIONS]{.underline}**

**[Instructions for Certification]{.underline}**

1\. By signing and submitting this proposal, the prospective lower tier
participant is providing the certification set out below.

2\. The certification in this clause is a material representation of
fact upon which reliance was placed when this transaction was entered
into. If it is later determined that the prospective lower tier
participant knowingly rendered an erroneous certification, in addition
to other remedies available to the Federal Government, the department or
agency with which this transaction originated may pursue available
remedies, including suspension and/or debarment.

3\. The prospective lower tier participant shall provide immediate
written notice to the person to which this proposal is submitted if at
any time the prospective lower tier participant learns that its
certification was erroneous when submitted or has become erroneous by
reason of changed circumstances.

4\. The terms \"covered transaction,\" \"debarred,\" \"suspended,\"
\"ineligible,\" \"lower tier covered transaction,\" \"participant,\"
\"person,\" \"primary covered transaction,\" \"principal,\" \"proposal\"
and \"voluntarily excluded,\" as used in this clause, have the meanings
set out in the Definitions and Coverage sections of rules implementing
Executive order 12549: 20 CFR Part 436. You may contact the person to
which this proposal is submitted for assistance in obtaining a copy of
those regulations.

5\. The prospective lower tier participant agrees by submitting this
proposal that, should the proposed covered transaction be entered into,
it shall not knowingly enter into any lower tier covered transaction
with a person who is debarred, suspended, declared ineligible, or
voluntarily excluded from in this covered transaction, unless authorized
by the department or agency with which this transaction originated.

6\. The prospective lower tier participant further agrees by submitting
this proposal that it will include this clause titled \"Certification
Regarding Debarment, Suspension, Ineligibility and Voluntary
Exclusion‑‑Lower Tier Covered Transaction,\" without modification, in
all lower tier covered transactions and in all solicitations for lower
tier covered transactions.

7\. A participant in a covered transaction may rely upon a certification
of a prospective participant in a lower tier covered transaction that it
is not debarred, suspended, ineligible, or voluntarily excluded from the
covered transaction, unless it knows that the certification is
erroneous. A participant may decide the method and frequency by which it
determines the eligibility of its principals. Each participant may but
is not required to check the Nonprocurement List (Tel. #).

8\. Nothing contained in the foregoing shall be construed to require
establishment of a system of records in order to render in good faith
the certification required by this clause. The knowledge and information
of a participant is not required to exceed that which is normally
possessed by a prudent person in the ordinary course of business
dealings.

9\. Except for transactions authorized under paragraph 5 of these
instructions, if a participant in a covered transaction knowingly enters
into a lower tier covered transaction with a person who is suspended,
debarred, ineligible, or voluntarily excluded from participation in this
transaction, in addition to other remedies available to the Federal
Government, the department or agency with which this transaction
originated may pursue available remedies, including suspension and/or
debarment.

**[Certification Regarding Debarment, Suspension,]{.underline}**

**[Ineligibility and voluntary Exclusion‑Lower]{.underline}**

**[Tier covered Transactions]{.underline}**

\(1\) The prospective lower tier participant certifies, by

> submission of this proposal, that neither it nor its principals
>
> is presently debarred, suspended, proposed for debarment,
>
> declared ineligible, or voluntarily excluded from participation
>
> in this transaction by any Federal department or agency.

\(2\) Where the prospective lower tier participant is unable to

> certify to any of the statements in this certification, such
>
> prospective participant shall attach an explanation to this

proposal.