RESTORE ACT

FINANCIAL ASSISTANCE STANDARD TERMS

AND CONDITIONS AND PROGRAM-SPECIFIC

TERMS AND CONDITIONS

U.S. Department of the Treasury

February 2022
TABLE OF CONTENTS

PREFACE.........................................................................................................................................................4

A PROGRAM-SPECIFIC TERMS AND CONDITIONS - AWARDS UNDER THE DIRECT

COMPONENT...................................................................................................................................................5

1. Administrative Costs..........................................................................................................................5

2. Oil Spill Liability Trust Fund..............................................................................................................5

3. Remedies for Noncompliance...........................................................................................................5

B PROGRAM-SPECIFIC TERMS AND CONDITIONS - AWARDS UNDER THE CENTERS OF

EXCELLENCE RESEARCH GRANTS PROGRAM .........................................................................................7

1. Allowable Costs..................................................................................................................................7

2. Prior Approval for Changes in Centers of Excellence....................................................................7

3. Performance Reports.........................................................................................................................7

STANDARD TERMS AND CONDITIONS ........................................................................................................9

C APPLICABLE LAWS, REGULATIONS, AND PROGRAM REQUIREMENTS...................................9

D USE OF FUNDS AND FINANCIAL REQUIREMENTS.......................................................................9

1. Scope of Work ....................................................................................................................................9

2. Pre-award Costs.................................................................................................................................9

3. Indirect Costs ...................................................................................................................................10

4. Cost Sharing and Budget Limitations............................................................................................10

5. Program Income...............................................................................................................................10

6. Incurring Costs or Obligating Federal Funds Beyond the Expiration Date ................................11

7. Tax Refunds......................................................................................................................................11

8. Requirement to Maintain a Conflict-of-Interest Policy.................................................................11

9. Prohibition on Use of Funds for Certain Telecommunications and Video Surveillance 

Services or Equipment.............................................................................................................................11

10. Limitation on Use of Funds for Research Involving Human Subjects .......................................12

11. Limitation on Use of Funds for Foreign Travel..............................................................................13

12. Subawards........................................................................................................................................13

E EFFECT OF A GOVERNMENT SHUTDOWN ON DISBURSEMENTS AND THE AVAILABILITY

OF TREASURY PERSONNEL .......................................................................................................................15

F RECIPIENT REPORTING AND AUDIT REQUIREMENTS ...............................................................15

1. Financial Reports .............................................................................................................................15

2. Performance Reports.......................................................................................................................15

3. Interim Reporting on Significant Developments per 2 C.F. R. § 200.329(e) ................................17

4. Audit Requirements .........................................................................................................................17

5. OperationalSelf-Assessment .........................................................................................................17

6. Reporting Requirements under the Federal Funding Accountability and Transparency Act
February 2022 | Page 1

(FFATA) of 2006, Pub. L. No. 109-282, as amended by the Digital Accountability and Transparency 

Act (DATA Act) of 2014, Pub. L. No. 113-101.........................................................................................18

7. System for Award Management (SAM.gov) and Universal Identifier Requirements..............................18

8. Reporting Requirements for Status of Real Property or Interest in Real Property ..................18

9. Reporting on Lobbying ...................................................................................................................18

G FINANCIAL MANAGEMENT SYSTEM AND INTERNAL CONTROL REQUIREMENTS.................20

H RECORDS RETENTION REQUIREMENTS .....................................................................................21

I THE FEDERAL GOVERNMENT’S RIGHT TO INSPECT, AUDIT, AND INVESTIGATE..................22

1. Access to Records...........................................................................................................................22

2. Access to the Recipient’s Sites.......................................................................................................22

J AWARD DISBURSEMENT................................................................................................................22

K NOTIFICATIONS AND PRIOR APPROVALS...................................................................................24

1. Notifications .....................................................................................................................................24

2. Prior Approvals ................................................................................................................................24

L AMENDMENTS AND CLOSEOUT....................................................................................................25

1. Amendments ....................................................................................................................................25

2. Closeout............................................................................................................................................26

M TERMINATION AND REMEDIES FOR NONCOMPLIANCE............................................................27

N DEBTS...............................................................................................................................................28

1. Payment of Debts Owed the Federal Government ........................................................................28

2. Effect of Judgment Lien on Eligibility for Federal Grants, Loans, or Programs.........................29

O NON-DISCRIMINATIONREQUIREMENTS ......................................................................................29

1. Statutory Provisions ........................................................................................................................29

2. RegulatoryProvisions .....................................................................................................................30

3. Other Provisions ..............................................................................................................................30

4. Title VII Exemption for Religious Organizations ...........................................................................30

5. Protections for Whistleblowers.......................................................................................................30

P REQUIREMENT TO CHECK DEBARMENT AND SUSPENSION STATUS OF SUBRECIPIENTS,

CONTRACTORS, SUBCONTRACTORS, AND VENDORS ..........................................................................31

Q PROCUREMENT...............................................................................................................................31

1. General Provisions ..........................................................................................................................31

2. Solid Waste Disposal ......................................................................................................................32

3. Subawards........................................................................................................................................32

4. Minority and Women-Owned Business Enterprises ....................................................................32

5. Domestic Preference for Procurement..........................................................................................32

R ENVIRONMENTAL REQUIREMENTS .............................................................................................33

S REAL PROPERTY, CONSTRUCTION, EQUIPMENT, AND SUPPLIES.........................................34
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1. General Requirements ....................................................................................................................34

2. Real Property and Acquisition of Land and Land Interests ........................................................34

3. Compliance with State, Local and Federal Requirements............................................................34

4. Title....................................................................................................................................................34

5. Permitting Requirements.................................................................................................................35

6. Estimated Useful Life.......................................................................................................................35

7. Recording the Federal Interest in the Real Property.....................................................................36

8. Use of Real Property........................................................................................................................37

9. Administration, Operation and Maintenance .................................................................................37

10. Commencement of Construction....................................................................................................38

11. Insurance ..........................................................................................................................................38

12. Bonding.............................................................................................................................................38

13. Floodplain Requirements ................................................................................................................39

14. Goals for Women and Minorities in Construction .........................................................................39

15. Davis Bacon Act, as amended (40 U.S.C. §§ 3141–3148) .............................................................40

16. Equal Opportunity Clause ...............................................................................................................42

17. Revised ADA Standards for Accessible Design for Construction Awards .................................42

18. Supplies and Equipment .................................................................................................................42

T MISCELLANEOUS REQUIREMENTS AND PROVISIONS..............................................................43

1. Prohibition Against Assignment by the Recipient ........................................................................43

2. Disclaimer Provisions......................................................................................................................43

3. Prohibited and Criminal Activities ..................................................................................................43

4. Limitations on Political Activities of Employees...........................................................................44

5. Drug-Free Workplace ......................................................................................................................44

6. Increasing Seat Belt Use in the United States ...............................................................................44

7. Reducing Text Messaging While Driving ......................................................................................44

8. Minority Serving Institutions (MSIs) Initiative ................................................................................45

9. Research Misconduct ......................................................................................................................45

10. Care and Use of Live Vertebrate Animals ......................................................................................45

11. The Trafficking Victims Protection Act of 2000, as amended, (22 U.S.C. § 7104(g)), and the

implementing regulations at 2 C.F.R. Part 175 .......................................................................................45

12. Publications and Signage................................................................................................................47

13. Copyright..........................................................................................................................................48

14. Homeland Security Presidential Directive 12.................................................................................48

15. Export Control ..................................................................................................................................49

APPENDIX I: 2 C.F.R. PART 170, APPENDIX A..........................................................................................51
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APPENDIX II: 2 C.F.R. PART 25, APPENDIX A...........................................................................................53

APPENDIX III: DAVIS-BACON AND RELATED ACTS REQUIREMENTS..................................................54

APPENDIX IV: CONTRACT CLAUSES REQUIRED FOR CONTRACTS SUBJECT TO THE 

REQUIREMENTS OF THE CONTRACT WORK HOURS AND SAFETY STANDARDS ACT ....................59

APPENDIX V: 41 C.F.R. § 60-1.4 ..................................................................................................................60
February 2022 | Page 4

RESTORE ACT FINANCIAL ASSISTANCE STANDARD TERMS AND

CONDITIONS AND PROGRAM-SPECIFIC TERMS AND CONDITIONS

PREFACE

A grant agreement is comprised of the following documents:

1. A Notice of Award from the Department of the Treasury (“Treasury”);

2. The RESTORE Act Financial Assistance Standard Terms and Conditions (“Standard Terms and

Conditions”);

3. The RESTORE Act Financial Assistance Program-Specific Terms and Conditions (“ProgramSpecific Terms and Conditions”);

4. An approved application, including all documents, certifications, and assurances that are part of

the approved application;

5. An approved scope of work;

6. Any approved budget; and,

7. Any special terms and conditions applied by Treasury to the award (“Special Award Conditions”).

The recipient must comply with—and require each of its subrecipients, contractors, and subcontractors

employed in the completion of the activity, project, or program to comply with—the RESTORE Act, 

Treasury’s implementing regulations at 31 C.F.R. Part 34, all applicable federal statutes, regulations,

executive orders (EOs), Office of Management and Budget (OMB) circulars, any program guidance issued by 

Treasury (including the RESTORE Frequently Asked Questions), Standard Terms and Conditions, ProgramSpecific Terms and Conditions, and any Special Award Conditions of this federal financial assistance

award (“Award”), as applicable, in addition to the certifications and assurances required at the time of

application.

Any inconsistency or conflict in Standard Terms and Conditions, Program-Specific Terms and Conditions,

and any Special Award Conditions of this Award will be resolved according to the following order of

precedence: federal laws, Executive Orders, federal regulations, applicable notices published in the Federal

Register, OMB circulars, Treasury’s Standard Terms and Conditions, Program-Specific Terms and

Conditions, and any Special Award Conditions.

Some of these Standard Terms and Conditions contain, by reference or substance, a summary of pertinent

federal statutes, federal regulations published in the Federal Register (Fed. Reg.) or Code of Federal

Regulations (C.F.R.), EOs, or OMB circulars. In particular, these Standard Terms and Conditions

incorporate many of the provisions contained in OMB’s Uniform Administrative Requirements, Cost Principles, 

and Audit Requirements for Federal Awards (“Uniform Guidance,” 2 C.F.R. Part 200), which supersedes

former OMB Circular A-102 (the former grants management common rule), OMB Circular A-133 (single

audit requirements), and all former OMB circulars containing the cost principles for grants and cooperative

agreements. To the extent that it is a summary, such a provision is not in derogation of, or an amendment to,

any such statute, regulation, EO, or OMB circular. Unless a definition is provided here, definitions can be

found in the RESTORE Act (Public Law No. 112-141 (July 6, 2012), Treasury’s implementing regulations (79

Fed. Reg. 48039 (Aug. 15, 2014) and 79 Fed. Reg. 61236 (Oct. 10, 2014), as codified at 31 C.F.R. Part 34),

or 2 C.F.R. Part 200.
February 2022 | Page 5

A PROGRAM-SPECIFIC TERMS AND CONDITIONS - AWARDS UNDER THE DIRECT

COMPONENT

In addition to all the Standard Terms and Conditions described in Sections C through T of this

document, all Treasury RESTORE Act awards made under the Direct Component include the

following Program-Specific Terms and Conditions:

1. Administrative Costs

a. Administrative costs are defined as indirect costs for administration incurred by the 

recipient that are allocable to activities authorized under the RESTORE Act, as specified in 

31 C.F.R. § 34.2. Administrative costs do not include:

i. Direct costs that directly support the scope of work and are identified as 

direct costs in the approved award budget;

ii. Indirect costs that are identified specifically with, or readily assignable to

facilities, as defined in 2 C.F.R. § 200.414; and

iii. Indirect costs of subrecipients.

b. Of the amounts received from Treasury under the Direct Component, not more 

than three percent may be used for administrative costs. The three percent limit 

on administrative costs may be applied to the total amount of funds received by a 

recipient either on a grant-by-grant basis or on an aggregate basis. For the latter 

method, amounts used for administrative costs may not at any time exceed three 

percent of the aggregate of:

i. The amounts received under a component (i.e., Direct Component or 

Centers of Excellence) by a recipient, beginning with the first grant 

through the most recent grant, and

ii.The amounts in the Trust Fund that are allocated to, but not yet received 

by, the grantee under 31 C.F.R. § 34.103, consistent with the definition 

of administrative costs in 31 C.F.R. § 34.2.

c. Up to 100 percent of program income, as defined in 2 C.F.R. § 200.1 and elaborated

in 2 C.F.R. § 200.307, may be used to pay for allowable administrative costs, subject

to the three percent cap. Program income may also be used to defray other allowable 

costs under the award. 

2. Oil Spill Liability Trust Fund

The recipient must not seek any compensation for the approved program or project from

the Oil Spill Liability Trust Fund. If the recipient is authorized to make subawards, the

recipient must not use Direct Component funds to make subawards to fund activities for

which any claim for compensation was filed and paid out by the Oil Spill Liability Trust

Fund after July 6, 2012.

3. Remedies for Noncompliance

a. If Treasury determines that the recipient has expended Direct Component funds to

cover the cost of any ineligible activities, in addition to the remedies available in

Section M of these Standard Terms and Conditions, per 31 C.F.R. § 34.804,

Treasury will make no additional payments to the recipient from the Gulf Coast 

Restoration Trust Fund (Trust Fund), including no payments from the Trust Fund for
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activities, projects, or programs until the recipient has either (1) deposited an

amount equal to the amount expended for the ineligible activities in the Trust Fund, 

or (2) Treasury has authorized the recipient to expend an equal amount from the 

recipient’s own funds for an activity that meets the requirements of the RESTORE 

Act.

b. If Treasury determines the recipient has materially violated the terms of this Award,

Treasury will make no additional funds available to the recipient from any part of

the Trust Fund until the recipient corrects the violation.
February 2022 | Page 7

B PROGRAM-SPECIFIC TERMS AND CONDITIONS - AWARDS UNDER THE CENTERS 

OF EXCELLENCE RESEARCH GRANTS PROGRAM

In addition to all the Standard Terms and Conditions described in Sections C through T of this

document, all Treasury RESTORE Act awards under the Centers of Excellence Research Grants

Program include the following Program-Specific Terms and Conditions:

1. Allowable Costs

In addition to the prohibitions contained in 2 C.F.R. Part 200, Subpart E (Cost Principles),

the following costs are unallowable unless approved in writing by Treasury:

a. Construction, including the alteration, repair, or rehabilitation of existing

structures;

b. Facilities costs that are allowable as indirect costs in a federally approved

negotiated indirect cost rate; and

c. Acquisition of land or interests in land.

2. Prior Approval for Changes in Centers of Excellence

a. The recipient must immediately notify Treasury if it anticipates selecting a new

entity or consortium to serve as a Center of Excellence or making other changes to

the initial selection of Center(s) of Excellence described in the scope of work.

b. After the recipient notifies Treasury pursuant to (a) and finalizes the selection, the

recipient must promptly inform Treasury of the following:

i. Name of the Center of Excellence and the entity selected to administer it,

including the names of member organizations if the entity is a consortium;

ii. The Data Universal Numbering System (DUNS) Number of the entity or Unique 

Entity Identifier (UEI) Number as applicable;

iii. Location of the entity;

iv. The discipline or disciplines, as set forth in Section 1605(d) of the RESTORE 

Act and Treasury’s implementing regulations at 31 C.F.R. § 34.704(b), that 

will serve as a focus of research for the selected Center or Centers of

Excellence;

v. Documentation of the competitive process used to select the Center or 

Centers of Excellence, including all documentation to demonstrate the 

recipient complied with the selection requirements set forth in Section 1605 of 

the RESTORE Act and Treasury’s implementing regulations at 31 C.F.R. § 

34.704(b); and

vi. The estimated budget for the Center, including the total allocation of

funded dollars for the Center.

3. Performance Reports

In addition to the reporting requirements in Section F, pursuant to 31 C.F.R. § 34.706, the

recipient must submit an annual report to the Gulf Coast Ecosystem Restoration Council

(“Council”), in a form prescribed by the Council that includes information on subrecipients,

subaward amounts, disciplines addressed, and any other information required by the

Council. When the subrecipient is a consortium, the annual report must also identify the
February 2022 | Page 8

consortium members. This information will be included in the Council's annual report to 

Congress. The recipient must provide a copy of this report to Treasury when it submits the 

report to the Council.
February 2022 | Page 9

STANDARD TERMS AND CONDITIONS

AWARDS UNDER THE DIRECT COMPONENT AND THE CENTERS OF EXCELLENCE RESEARCH

GRANTS PROGRAM

C APPLICABLE LAWS, REGULATIONS, AND PROGRAM REQUIREMENTS

This Award is subject to the following federal laws, regulations, and requirements. This list is not

exclusive:

1. The RESTORE Act, Pub. L. No. 112-141 (July 6, 2012);

2. Treasury’s implementing regulations, 31 C.F.R. Part 34;

3. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for

Federal Awards, 2 C.F.R. Part 200, Subparts A through F, and any Treasury regulations

incorporating these requirements;

4. OMB Guidelines to Agencies on Governmentwide Debarment and Suspension 

(Nonprocurement), 2 C.F.R. Part 180 including the requirement to include a term or condition 

in all lower-tier covered transactions (contracts and subcontracts described in 2 C.F.R. Part 

180, subpart B) that the award is subject to 2 C.F.R. Part 180 and Treasury’s implementing 

regulations at 31 C.F.R. Part 19;

5. Governmentwide Requirements for Drug-Free Workplace (Financial Assistance), 31 C.F.R.

Part 20;

6. New Restrictions on Lobbying, 31 C.F.R. Part 21;

7. Reporting Subaward and Executive Compensation Information, 2 C.F.R. Part 170;

8. Universal Identifier and System for Award Management (SAM), 2 C.F.R. Part 25;

9. Recipient Integrity and Performance Matters, Appendix XII to 2 C.F.R. Part 200;

10. Award Term related to Trafficking in Persons, 2 C.F.R. Part 175;.

11. Treasury’s RESTORE Act Frequently Asked Questions (FAQs) and other program guidance; 

and

12. Any special award conditions included in the award.

D USE OF FUNDS AND FINANCIAL REQUIREMENTS

1. Scope of Work

The recipient must only use funds obligated and disbursed under this Award for the

purpose of carrying out activities described in the attached approved scope of work. The

recipient must not incur or pay any expenses under this Award for activities not related to

the attached approved scope of work unless Treasury first approves an Award amendment

explicitly modifying the approved scope of work to include those activities.

2. Pre-award Costs

The recipient may obligate funds under this Award only during the period of performance

specified in the Notice of Award, which is the time period during which the recipient may

incur new obligations and costs to carry out the work authorized under this Award. The

only exception is for costs related to award reporting and closeout after the end of the 

period of performance, or costs incurred prior to the effective date of this Award, which are

allowable only if:
February 2022 | Page 10

a. Treasury specifically authorized these costs in writing on or after the issuance

date of this Award;

b. Incurring these costs was necessary for the efficient and timely performance of

the scope of work; and

c. These costs would have been allowable if incurred after the date of the award.

3. Indirect Costs

a. The recipient may only charge indirect costs to this Award if these costs are

allowable under 2 C.F.R. Part 200, Subpart E (Cost Principles). For Direct 

Component awards, there is a three percent limit on indirect costs per 31 C.F.R. § 

34.204. Please see the RESTORE Act Frequently Asked Questions (FAQs) 

related to the Direct Component Program for more information on the limitations

on indirect costs (administrative costs) at 

https://home.treasury.gov/system/files/216/May-2020-Direct-Component-FAQUpdate-final-5-21-2020.pdf. Indirect costs charged to the award must be consistent

with an accepted de minimis rate or the indirect cost rate agreement negotiated

between the recipient and its cognizant agency (defined as the federal agency that

is responsible for reviewing, negotiating, and approving cost allocation plans or

indirect cost proposals, see 2 C.F.R. § 200.1) and must be included in the

recipient’s budget.

b. Unallowable direct costs are not recoverable as indirect costs.

c. The maximum dollar amount of allocable indirect costs charged to this Award

shall be the lesser of:

i. The line item amount for the indirect costs contained in the approved

budget, including all budget revisions approved in writing by the

Treasury; or,

ii. The total indirect costs allocable to this Award based on the indirect cost

rate approved by a cognizant or oversight federal agency and applicable

to the period in which the cost was incurred, provided that the rate is

approved on or before the Award end date.

4. Cost Sharing and Budget Limitations

a. There is not a cost sharing or matching requirement for Treasury’s RESTORE 

Act grant programs. However, if matching funds are included in the approved 

award budget, the recipient must obtain and use these matching funds for the 

purposes of the award.

b. The recipient shall not request or receive additional funding beyond what was

included in the approved application for the attached approved scope of work

from any federal or non-federal source without first notifying Treasury.

5. Program Income

Program Income is defined in 2 C.F.R. § 200.1 as gross income earned by the non-federal 

entity that is directly generated by a supported activity or earned as a result of the federal

award during the period of performance except as provided by 2 C.F.R. § 200.307(f). As 

allowed by 2 C.F.R. § 307(b), Treasury authorizes costs incidental to the generation of 

program income that have not been charged to the award to be deducted from the gross 

income to determine program income for this award (i.e., net program income). Any program

income generated by the recipient or the subrecipient during the period of performance of 

the award or period of performance of the subrecipient agreement, as applicable, must be

included in the approved budget and be used for the purposes of the Award and under the
February 2022 | Page 11

conditions of these Standard Terms and Conditions and any Special Award Conditions,

i.e., solely to accomplish the approved scope of work. All program income determinations 

are project scope-specific and should be determined prior to award or at the earliest point 

possible post-award.

6. Incurring Costs or Obligating Federal Funds Beyond the Expiration Date

The recipient must not incur costs or obligate funds under this Award for any purpose

pertaining to the operation of the activity, project, or program beyond the end of the period

of performance. The only costs that are authorized for a period up to 120 days following

the end of the period of performance are those strictly associated with closeout activities.

Closeout activities are normally limited to the preparation of final progress, financial, and

required audit reports unless otherwise approved in writing by Treasury. Under

extraordinary circumstances, and at Treasury’s sole discretion, Treasury may approve the

recipient’s request for an extension of the 120-day closeout period.

7. Tax Refunds

Refunds of taxes paid under the Federal Insurance Contributions Act (FICA) and the Federal

Unemployment Tax Act (FUTA) that are received by the recipient during or after the period of

performance must be refunded or credited to Treasury if these taxes were paid out of

RESTORE Act funds in accordance with 2 C.F.R. Part 200, Subpart E (Cost Principles). The

recipient agrees to contact Treasury immediately upon receipt of these refunds.

8. Requirement to Maintain a Conflict-of-Interest Policy

Recipient understands and agrees it must maintain a conflict-of-interest policy consistent with 

2 C.F.R. § 200.318(c), and that such conflict-of-interest policy is applicable to each activity 

funded under this award. Recipients and subrecipients must disclose in writing to Treasury or 

the pass-through agency, as appropriate, any potential conflict of interest affecting the 

awarded funds in accordance with 2 C.F.R. § 200.112.

9. Prohibition on Use of Funds for Certain Telecommunications and Video Surveillance 

Services or Equipment

a. Recipients must comply with 2 C.F.R. § 200.216 with respect to obligations and 

expenditures of Treasury’s RESTORE Act grants funded on or after 8/13/2020. As 

required by 2 C.F.R. § 200.216, Treasury’s RESTORE Act recipients and 

subrecipients are prohibited from obligating or expending grant funds to procure or 

obtain; extend or renew a contract to procure or obtain; or enter into a contract (or 

extend or renew a contract) to procure or obtain equipment, services, or systems 

that use covered telecommunications equipment or services as a substantial or 

essential component of any system or as critical technology as part of any system.

b. Covered telecommunications equipment or services are defined as follows:

i. Telecommunications equipment produced by Huawei Technologies 

Company or ZTE Corporation (or any subsidiary or affiliate of such entities);

ii. For the purpose of public safety, security of government facilities, physical 

security surveillance of critical infrastructure, and other national security 

purposes, video surveillance and telecommunications equipment produced 

by Hytera Communications Corporation, Hangzhou Hikvision Digital 

Technology Company, or Dahua Technology Company (or any subsidiary or 

affiliate of such entities);

iii. Telecommunications or video surveillance services provided by such entities 

or using such equipment; or 
February 2022 | Page 12

iv. Telecommunications or video surveillance equipment or services produced 

or provided by an entity that the Secretary of Defense, in consultation with 

the Director of the National Intelligence or the Director of the Federal Bureau 

of Investigation, reasonably believes to be an entity owned or controlled by, 

or otherwise connected to, the government of the People’s Republic of 

China. 

c. Whenever procuring, contracting for, or obtaining telecommunications or video 

surveillance services or equipment, the recipient must make a good-faith effort to 

ascertain that none of the equipment or services are from a prohibited source. The 

recipient must review the list of excluded parties in the System for Award 

Management (SAM) (https://www.sam.gov) for entities excluded from receiving 

federal awards for "covered telecommunications equipment or services."

d. The recipient must ensure that the prohibition on covered telecommunications and 

video surveillance services and equipment flows down to all lower-tier transactions, 

to include all subawards and contracts. 

10. Limitation on Use of Funds for Research Involving Human Subjects

a. No work involving human subjects may be undertaken, conducted, or costs

incurred and/or charged to this Award for human subject’s research, until the

appropriate documentation is approved in writing by Treasury. 

b. The Federal policy for the protection of human subjects (the “Common Rule”) as 

codified in 45 C.F.R. Part 46, Subpart A, defines a human subject as a living

individual about whom an investigator conducting research obtains (1) information 

or biospecimens through intervention or interaction with the individual (e.g., 

surveys and focus groups), and uses, studies, or analyzes the information or 

biospecimens or (2) uses, studies, analyzes, or generates identifiable private

information or identifiable biospecimens. Research means a systematic

investigation, including research development, testing and evaluation, designed to

develop or contribute to generalizable knowledge. 

c. The recipient and subrecipient, as appropriate, must maintain appropriate policies and

procedures for the protection of human subjects. In the event it becomes evident

that human subjects may be involved in this project, the recipient must submit

appropriate documentation to Treasury for approval by the appropriate Treasury

officials. This documentation may include:

i. Documentation establishing approval of the project by an institutional

review board (IRB) approved for federal-wide use under Department

of Health and Human Services guidelines;

ii. Documentation to support an exemption for the project;

iii. Documentation to support deferral for an exemption or IRB review; or

iv. Documentation of IRB approval of any modification to a prior approved

protocol or to an informed consent form.
February 2022 | Page 13

11. Limitation on Use of Funds for Foreign Travel

a. The recipient and subrecipient may not use funds from this Award for travel

outside of the United States unless Treasury provides prior written approval.

b. The recipient and subrecipient must comply with the provisions of the Fly America

Act, as amended, (49 U.S.C. § 40118). The implementing regulations of the Fly

America Act are found at 41 C.F.R. §§ 301-10.131–301-10.143.

c. The Fly America Act requires that federal travelers and others performing U.S.

Government-financed air travel must use U.S. flag air carriers, to the extent that

service by such carriers is available. Foreign air carriers may be used only in

specific instances, such as when a U.S. flag air carrier is unavailable, or use of

U.S. flag air carrier service will not accomplish the agency’s mission.

d. One exception to the requirement to fly U.S. flag carriers is transportation

provided under a bilateral or multilateral air transport agreement, to which the

United States Government and the government of a foreign country are parties,

and which the Department of Transportation has determined meets the

requirements of the Fly America Act pursuant to 49 U.S.C. § 40118(b). The

United States Government has entered into bilateral/multilateral “Open Skies

Agreements” (U.S. Government Procured Transportation) that allow federal

funded transportation services for travel and cargo movements to use foreign air

carriers under certain circumstances. There are multiple “Open Skies

Agreements” currently in effect. For more information about the current bilateral

and multilateral agreements, visit the GSA website

http://www.gsa.gov/portal/content/103191. Information on the Open Skies

agreements (U.S. Government Procured Transportation) and other specific

country agreements may be accessed via the Department of State’s website

http://www.state.gov/e/eeb/tra/.

e. If a foreign air carrier is anticipated to be used for any portion of travel funded

under this Award, the recipient must receive prior approval from Treasury. When

requesting such approval, the recipient must provide a justification in accordance

with guidance provided by 41 C.F.R. § 301–10.142, which requires the recipient to

provide Treasury with the following: name; dates of travel; origin and destination of

travel; detailed itinerary of travel; name of the air carrier and flight number for each

leg of the trip; and a statement explaining why the recipient meets one of the

exceptions to the regulations. If the use of a foreign air carrier is pursuant to a

bilateral agreement, the recipient must provide Treasury with a copy of the

agreement or a citation to the official agreement available on the GSA website.

Treasury shall make the final determination and notify the recipient in writing.

Failure to adhere to the provisions of the Fly America Act will result in the recipient

not being reimbursed for any transportation costs for which the recipient improperly

used a foreign air carrier.

12. Subawards

a. Recipients that enter into subawards under this award must execute a legally

binding written agreement with the subrecipient which includes a budget by 

federal object class categories or fixed amount (2 C.F.R. § 200.332). This

agreement must incorporate all the terms and conditions of this Award, including

any applicable Special Award Conditions, and must include the information at 2

C.F.R. § 200.332(a). The recipient must perform all responsibilities required of a 

pass-through entity, as specified in 2 C.F.R. § 200.332 , including but not limited 

to monitoring use of RESTORE Act funds and compliance with all terms and

conditions; following up on any deficiencies identified as a result of onsite or desk 
February 2022 | Page 14

reviews and/or audits; and reviewing and correcting as necessary all subrecipient 

performance and financial reporting before including this information on the 

recipients’ required RESTORE Act grant program’s Performance Progress 

Reports (PPR) and Federal Financial Report (SF-425) reports.

b. The recipient must evaluate and document each subrecipient’s risk of

noncompliance with federal statutes, regulations, and the terms and

conditions of the subaward for purposes of determining the appropriate

subrecipient monitoring strategy, as described in 2 C.F.R. § 200.332.

c. The recipient must monitor the subrecipient’s use of federal funds through

reporting, site visits, regular contact, or other means to provide reasonable

assurance that the subrecipient is administering the subaward in compliance with

the RESTORE Act, Treasury’s implementing regulations, these Standard Terms

and Conditions, Program-Specific Terms and Conditions, and any applicable 

Special Award Conditions, and to ensure that the scope of work is being 

appropriately carried out and milestones are achieved.

d. The recipient must provide training and technical assistance to the subrecipient

as necessary.

e. The recipient must, if necessary, take appropriate enforcement actions against

non-compliant subrecipients.

f. If lower-tier subawards are authorized by Treasury, the recipient must ensure that a

subrecipient who makes a subaward applies the terms and conditions of this

Award, including any Special Award Conditions, to all lower-tier subawards through 

a legally binding written agreement, and that a subrecipient who makes a

subaward carries out all the responsibilities of a pass-through entity described at 2

C.F.R. § 200.332.

g. The recipient must verify that no subrecipient appears on the excluded party list 

on sam.gov. If lower-tier subawards are authorized by Treasury, the recipient 

must ensure that a subrecipient who makes a subaward verifies that this lower-tier 

subrecipient does not appear on the excluded parties list in sam.gov prior to 

issuing the subaward.

h. The recipient must maintain written standards of conduct governing the

performance of its employees involved in executing this Award and

administration of subawards consistent with 2 C.F.R. § 200.318(c)(1).

i. No employee, officer, or agent shall participate in the selection, award, or

administration of a subaward supported by federal funds if a real or

apparent conflict of interest would be involved. Such a conflict would arise

when the employee, officer, or agent, any member of his or her

immediate family, his or her partner, or an organization in which he/she

serves as an officer or which employs or is about to employ any of the

parties mentioned in this section, has a financial interest or other interest

in the organization selected or to be selected for a subaward.

ii. The officers, employees, and agents of the recipient shall neither solicit

nor accept anything of monetary value from subrecipients.

iii. A recipient may set standards for situations in which the financial interest

is not substantial, or the gift is an unsolicited item of nominal value. A

financial interest may include employment, stock ownership, a creditor or

debtor relationship, or prospective employment with the organization

selected or to be selected for a subaward.

iv. The standards of conduct must provide for disciplinary actions to be
February 2022 | Page 15

applied for violations of such standards by officers, employees, or agents

of the recipient.

E EFFECT OF A GOVERNMENT SHUTDOWN ON DISBURSEMENTS AND THE 

AVAILABILITY OF TREASURY PERSONNEL

In the event of a federal government shutdown, Treasury will issue guidance to the recipient

concerning the expected effects on this Award.

F RECIPIENT REPORTING AND AUDIT REQUIREMENTS

1. Financial Reports

a. The recipient must submit a "Federal Financial Report" (SF-425) on a semiannual basis for the periods ending March 31 and September 30, or any portion

thereof, unless otherwise specified in a Special Award Condition. Reports are due

no later than 30 days following the end of each reporting period. A final SF-425

must be submitted within 120 days after the end of the period of performance.

b. In the remarks section of each SF-425 submitted, the recipient must describe by 

federal budget class category the use of all funds received by the recipient and 

subrecipient (if applicable).

c. The report must be signed by an authorized certifying official who is the employee

authorized by the recipient organization to submit financial data on its behalf.

d. The recipient must submit all financial reports via Grant Solutions 

(http://www.GrantSolutions.gov), unless otherwise specified by Treasury in writing.

2. Performance Reports

a. The recipient must submit an SF-PPR (“Performance Progress Report”), a

“RESTORE Act Status of Performance Report,” (standard format provided by

Treasury, OMB Approval No. 1505-0250) and an updated “RESTORE Act

Milestones Report,” (standard format provided by Treasury, OMB Approval No.

1505-0250) on a semi-annual basis for the periods ending March 31 and

September 30, or any portion thereof, unless otherwise specified in a Special

Award Condition. Reports are due no later than 30 days following the end of each

reporting period, except the final report, which is due 120 days following the end of

the period of performance.

b. The recipient must submit all performance reports in (a) above, via

http://www.GrantSolutions.gov, unless otherwise specified in writing by Treasury,

and the recipient must complete these reports according to the following

instructions:

i. SF-PPR: In the “performance narrative” attachment (section B of the SFPPR), the recipient must provide the following information:

a) In Section B-1:

1) Summarize activities undertaken during the reporting period by 

the recipient and any subrecipients (if applicable);

2) Summarize any key accomplishments, including milestones 

completed for the reporting period;

3) List any contracts awarded during the reporting period,

along with the name of the contractor and its principal, the

DUNS number of the contractor, the value of the contract,
February 2022 | Page 16

the date of award, a brief description of the services to be

provided, and whether or not local preference was used in

the selection of the contractor; and

4) If the recipient or any subrecipient is authorized to make

subawards, list any subawards executed during the

reporting period, along with the name of the entity and its

principal, the DUNS number of the entity, the value of the

agreement, the date of award, and a brief description of the

scope of work.

b) In Section B-2:

1) Indicate if any operational, legal, regulatory, budgetary,

and/or ecological risks, and/or any public controversies,

have materialized. If so, indicate what mitigation strategies

have been undertaken to attenuate these risks or

controversies; and

2) Summarize any challenges that have impeded the

recipient’s ability to accomplish the approved scope of

work on schedule and on budget. If the scope of work is 

not on schedule, the recipient should propose a revised 

schedule and update its milestone report.

c) In Section B-3:

Summarize any significant findings or events, including any data

compiled, collected, or created, if applicable.

d) In Section B-4:

Describe any activities to disseminate or publicize results of the activity,

project, or program, including data and its repository and citations for

publications resulting from this Award.

e) In Section B-5:

1) Describe all efforts taken to monitor contractor and/or

subrecipient performance, including site visits, during

the reporting period.

2) For subawards, indicate whether the subrecipient(s)

submitted an audit to the recipient, and if so, whether

the recipient issued a management decision on any

findings;

3) For awards where Davis-Bacon Act provisions are 

applicable, indicate whether the recipient and/or 

subrecipient(s) received and reviewed certified weekly 

payroll records and/or whether the recipient or 

subrecipient(s) conducted labor interviews; and

4) Describe any other activities or relevant information not

already provided.

f) In Section B-6:

Summarize the activities planned for the next reporting period.

ii. “RESTORE Act Status of Performance Report”: Instructions are

provided on the report form.
February 2022 | Page 17

iii. “RESTORE Act Milestones Report”: Instructions are provided on the

report form.

3. Interim Reporting on Significant Developments per 2 C.F. R. § 200.329(e)

a. Events may occur between the scheduled performance reporting dates that have

significant impact upon the activity, project, or program. In such cases, the recipient

must inform Treasury as soon as the following types of conditions become known:

i. Problems, delays, or adverse conditions which will materially impair the

ability to meet the objective of this Award. This disclosure must include a

statement of the action taken, or contemplated, and any assistance

needed to resolve the situation; and

ii. Favorable developments, which enable meeting time schedules and

objectives sooner or at less cost than anticipated or producing more or

different beneficial results than originally planned.

b. The recipient must:

i. Promptly provide to Treasury and the Treasury Inspector General a copy

of all state or local inspector general reports, audit reports other than those

prepared under the Single Audit Act or OMB’s implementing regulation at 2 

C.F.R. Part 200, Subpart F - Audit Requirements, and reports of any other

oversight body, if such report pertains to an award under any RESTORE

Act program, including the Comprehensive Plan Component and Spill

Impact Component;

ii. Immediately notify Treasury and the Treasury Inspector General of any

indication of fraud, waste, abuse, or potentially criminal activity pertaining

to grant funds; and

iii. Promptly notify Treasury upon the selection of a contractor or

subrecipient performing work under this Award and include the name

and DUNS/UEI number for the subrecipient or contractor, and the total

amount of the contract or subaward.

4. Audit Requirements

The recipient is responsible for complying, and ensuring all subrecipients comply, with all

audit requirements of the Single Audit Act and 2 C.F.R. Part 200 Subpart F – Audit

Requirements.

5. Operational Self-Assessment

The recipient must submit a revised Operational Self-Assessment form no later than June

30th of each calendar year for the duration of this Award. Only one Operational SelfAssessment must be submitted per recipient per year. In completing the form, the recipient

must note controls or activities that have changed from its previous submission. The

Operational Self-Assessment is electronically available and may be completed and 

submitted via a MAX.gov Federal Community link. The form is completed in MAX.gov and 

can be found on Treasury’s Direct Component Resources webpage for reference at 

https://home.treasury.gov/policy-issues/financial-markets-financial-institutions-and-fiscalservice/restore-act/direct-component/direct-component-resources.
February 2022 | Page 18

6. Reporting Requirements under the Federal Funding Accountability and Transparency 

Act (FFATA) of 2006, Pub. L. No. 109-282, as amended by the Digital Accountability 

and Transparency Act (DATA Act) of 2014, Pub. L. No. 113-101

The award term set forth in Appendix A to 2 C.F.R. Part 170 applies and is set forth in 

Appendix I to this document. 

7. System for Award Management (SAM.gov) and Universal Identifier Requirements 

The award term set forth in Appendix A to 2 C.F.R. Part 25 applies and is as set forth in 

Appendix II to this document.

8. Reporting Requirements for Status of Real Property or Interest in Real Property

The recipient must complete and submit to Treasury a report on the status of the real

property or interest in real property in which the federal government retains an interest,

using a SF-429 Real Property Status Report form annually for the first three years after 

real property acquisition or completion of construction, and thereafter every five years until

the end of the Estimated Useful Life or time of disposition, whichever is less. See also 

Section Q.

9. Reporting on Lobbying

a. Solely for the purposes of reporting on lobbying, “recipient” is used as defined at 31 

C.F.R. § 21.105(0), as including 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. Solely for the purposes of

reporting on lobbying, “award recipient” refers to the recipient of this RESTORE Act 

award from Treasury.

b. All recipients must comply with the provisions of 31 U.S.C. § 1352, and Treasury’s 

implementing regulations at 31 C.F.R. Part 21. No appropriated funds may be 

expended by the recipient of a Federal grant 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 the making of any Federal grant or the extension, continuation, 

renewal, amendment, or modification of any Federal grant.

c. The award recipient must include a statement in all subawards, contracts and 

subcontracts exceeding $100,000 in federal funds, that the subaward, contract, or 

subcontract is subject to 31 U.S.C. § 1352,

d. Each “person” who requests or receives from Treasury a RESTORE Act grant shall 

file with Treasury a certification, set forth in Appendix A of 31 C.F.R. Part 21, that the 

person has not made, and will not make, any payment prohibited under 31 U.S.C. § 

1352, as amended.

i. As defined in 31 U.S.C. § 1352(g)(3), the term “person”—includes 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; but does not include an Indian tribe, tribal 

organization, or any other Indian organization eligible to receive Federal 

contracts, grants, cooperative agreements, or loans from an agency but only 

with respect to expenditures by such tribe or organization that are made for 

purposes specified in subsection (a) and are permitted by other Federal law.

ii. The certification shall be filed pursuant to 31 C.F.R. § 21.110.
February 2022 | Page 19

iii. Any subrecipient, at any tier, who receives a subaward exceeding $100,000 

under this award, shall file with the tier above them a certification, set forth in 

appendix A of 31 C.F.R. Part 21, that the subrecipient as not made, and will 

not make, any payment prohibited by 31 C.F.R. § 21.100(a). Pursuant to 31 

C.F.R. 21.110(d), the certification shall be filed to the next tier above.

iv. Any contractor or subcontractor, at any tier, who receives a contract or 

subcontract exceeding $100,000 under this award, shall file with the tier 

above them a certification, set forth in Appendix A of 31 C.F.R. Part 21, that 

the contractor or subcontractor has not made, and will not make, any 

payment prohibited by 31 U.S.C. § 1352, as amended. Pursuant to 31 

C.F.R. 21.110(d), the certification shall be filed to the next tier above.

v. Every certification filed 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 with any tier to which the erroneous representation if 

forwarded. Submitting an erroneous certification or disclosure constitutes a 

failure to file the required certification. If a person fails to file a required 

certification, the United States may pursue all available remedies, including 

those authorized by 31 U.S.C. § 1352.

vi. Pursuant to 31 C.F.R. § 21.110(c), every recipient must file a new disclosure 

form at the end of each calendar quarter in which a payment, or an 

agreement to make a payment, is made which would have otherwise 

required reporting at the time of application. Moreover, if an event occurs 

during the calendar quarter which materially affects the accuracy of 

information reported on the disclosure form previously submitted, the 

submitter must file a new disclosure form. Events which “materially affect” 

the accuracy of information already reported include:

a) 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;

b) A change in the persons(s) influencing or attempting to influence; and/or

c) A change in the Federal official(s) contacted to influence or attempt to 

influence a covered Federal action,

vii. The award recipient must submit its form SF-LLLs, as well as those received 

from subrecipients, contractors and subcontractors, to Treasury within 30 

calendar days following the end of the calendar quarter in which there 

occurs any event that requires disclosure or that materially affects the 

accuracy of the information contained in any disclosure form previously filed.

viii. The award recipient must require subrecipients, contractors and 

subcontractors to submit form SF-LLL to the award recipient within 15 

calendar days following the end of the calendar quarter in which there 

occurs any event that requires disclosure or that materially affects the 

accuracy of the information contained in any disclosure from previously filed.
February 2022 | Page 20

G FINANCIAL MANAGEMENT SYSTEM AND INTERNAL CONTROL REQUIREMENTS

1. Pursuant to 2 C.F.R. § 200.302, Recipients that are states must expend and account for

Award funds in accordance with the applicable state laws and procedures for expending

and accounting for the state’s own funds. All other recipients must expend and account for

Award funds in accordance with federal laws and procedures. In addition, all recipients’

financial management systems must be sufficient to:

a. Permit the preparation of accurate, current, and complete SF-425, SF-PPR,

RESTORE Act Milestones Report, and RESTORE Act Status of Performance

Reports, as well as reporting on subawards, if applicable, and any additional

reports required by any Special Award Conditions;

b. Permit the tracing of funds to a level of expenditures adequate to establish that

such funds have been used in accordance with all applicable federal, state, and

local requirements, including the RESTORE Act, Treasury implementing

regulations, these Standard Terms and Conditions, Program-Specific Terms and

Conditions, and any Special Award Conditions, and retain all supporting 

documentation to allow this tracing of funds;

c. Allow for the comparison of actual expenditures with the amount budgeted for

each Award made to the recipient by Treasury under the RESTORE Act grant 

programs;

d. Identify and track all RESTORE Act awards received and expended by the

assigned grant number, which is the Universal Award ID (as provided by

Treasury), the year the Award was made, the awarding agency (Treasury), and

the program’s CFDA title and CFDA number (21.015);

e. Record the source and application of funds for all activities funded by this Award,

as well as all awards, authorizations, obligations, unobligated balances, assets,

expenditures, program income, and interest earned on federal advances, and

allow users to tie these records to source documentation such as cancelled

checks, paid bills, payroll and attendance records, contract and subaward

agreements, etc.; and

f. Ensure effective control over, and accountability for, all federal funds, and all

property and assets acquired with federal funds. The recipient must adequately

safeguard all assets and ensure that they are used solely for authorized

purposes.

2. The recipient must establish written procedures to implement the requirements set forth in

section H below (Award Disbursement), as well as written procedures to determine the

allowability of costs in accordance with 2 C.F.R. Part 200, subpart E (Cost Principles) and

the terms and conditions of this Award.

3. The recipient must establish and maintain effective internal controls over this Award in a

manner that provides reasonable assurance that the recipient is managing this Award in

compliance with the RESTORE Act, Treasury’s implementing regulations, these Standard

Terms and Conditions, Program-Specific Terms and Conditions, and any Special Award

Conditions. These internal controls should be in compliance with guidance in “Standards for

Internal Control in the Federal Government” issued by the Comptroller General of the

United States or the “Internal Control Integrated Framework”, issued by the Committee of

Sponsoring Organizations of the Treadway Commission (COSO). The recipient must

evaluate and monitor its compliance, and the compliance of any subrecipients, with the

RESTORE Act, Treasury’s implementing regulations, these Standard Terms and

Conditions, Program-Specific Terms and Conditions, and any Special Award Conditions,

and promptly remedy any identified instances of noncompliance. When and if an instance

of noncompliance cannot be remedied by the recipient, the recipient must promptly report
February 2022 | Page 21

the instance of noncompliance to Treasury and Treasury’s Inspector General, followed by

submitting a proposed mitigation plan to Treasury.

4. The recipient must take reasonable measures to safeguard protected personally

identifiable information (PII), as defined in 2 C.F.R 200.1, consistent with applicable

federal, state, and local laws regarding privacy and obligations of confidentiality.

H RECORDS RETENTION REQUIREMENTS

1. The recipient must retain all records pertinent to this Award for a period of three years

from the date of submission of the final expenditure report (final SF-425), as described in

2 C.F.R. § 200.334. While electronic storage of records (backed up as appropriate) is

preferable, the recipient has the option to store records in hardcopy (paper) format. For

the purposes of this section, the term “records” includes but is not limited to:

a. Copies of all contracts and all documents related to a contract, including the

Request for Proposal (RFP), all proposals/bids received, all meeting minutes or

other documentation of the evaluation and selection of contractors, any disclosed

conflicts of interest regarding a contract, all signed conflict of interest forms, all

conflict of interest and other procurement rules governing a particular contract, and

any bid protests;

b. Copies of all subawards and all documents related to a subaward. For 

competitively selected subawards, documents may include those relevant to and 

required by the recipient’s or subrecipient’s selection process such as the funding

opportunity announcement or equivalent, all applications received, all meeting

minutes or other documentation of the evaluation and selection of subrecipients,

any disclosed conflicts of interest regarding a subaward, and all signed conflict of

interest forms;

c. All documentation of site visits, reports, audits, and other monitoring of

contractors (vendors) and subrecipients;

d. All financial and accounting records, including records of disbursements to

contractors (vendors) and subrecipients, and documentation of the allowability of

costs charged to this Award;

e. All supporting documentation for the performance outcome and other information

reported on the recipient’s SF-425s, SF-PPRs, RESTORE Act Milestones Reports,

and RESTORE Act Status of Performance Reports; and

f. Any reports, publications, and data sets from any research conducted under this

Award.

2. If any litigation, claim, investigation, or audit relating to this Award or an activity funded

with Award funds is started before the expiration of the three-year period following 

submission of the final expenditure report, the records must be retained until all litigation,

claims, investigations, or audit findings involving the records have been resolved and

final action taken.

3. If the recipient is authorized to enter into contracts to complete the approved scope of

work, the recipient must include in its legal agreement with the contractor a requirement

that the contractor retain all records in compliance with 2 C.F.R. § 200.334.

4. If the recipient is authorized to make subawards, the recipient must include in its legal

agreement with the subrecipient a requirement that the subrecipient retain all records in

compliance with 2 C.F.R. § 200.334.
February 2022 | Page 22

I THE FEDERAL GOVERNMENT’S RIGHT TO INSPECT, AUDIT, AND INVESTIGATE

1. Access to Records

a. Treasury, the Treasury Office of Inspector General, the Government

Accountability Office, or any of their authorized representatives have the right of

timely and unrestricted access to any documents, papers or other records,

including electronic records, of the recipient that are pertinent to this Award, in

order to make audits, investigations, examinations, excerpts, transcripts, and

copies of such documents, in accordance with 2 C.F.R. § 200.337. This right also

includes timely and reasonable access to the recipient’s personnel for the

purpose of interview and discussion related to such documents. This right of

access shall continue as long as records are required to be retained.

b. If the recipient is authorized to make subawards, the recipient must include in its

legal agreement or contract with the subrecipient a requirement that the

subrecipient make available to Treasury, the Treasury Office of Inspector

General, the Government Accountability Office, or any of their authorized 

representatives any documents, papers or other records, including electronic

records, of the subrecipient, that are pertinent to this Award, in order to make

audits, investigations, examinations, excerpts, transcripts, and copies of such

documents. This right also includes timely and reasonable access to the

subrecipient’s personnel for the purpose of interview and discussion related to

such documents. This right of access shall continue as long as records are

required to be retained (see Section F above).

c. If the recipient is authorized to enter into contracts to complete the approved

scope of work, the recipient must include in its contract a requirement that the

contractor make available to Treasury, the Treasury Office of Inspector General,

the Government Accountability Office, or any of their authorized representatives

any documents, papers or other records, including electronic records, of the

contractor that are pertinent to this Award, in order to make audits, investigations,

examinations, excerpts, transcripts, and copies of such documents. This right also

includes timely and reasonable access to the contractor’s personnel for the

purpose of interview and discussion related to such documents. This right of

access shall continue as long as records are retained (see Section H above).

2. Access to the Recipient’s Sites

a. The Treasury, the Treasury Office of Inspector General, and Government

Accountability Office shall have the right during normal business hours to conduct

announced and unannounced onsite and offsite physical visits of recipients and

their subrecipients and contractors corresponding to the duration of their records

retention obligation for this Award.

J AWARD DISBURSEMENT

1. Unless otherwise specified in a Special Award Condition, Treasury will make advance

payments under this Award upon request. However, if one of the following occurs,

Treasury will require Award funds to be disbursed on a reimbursement basis either with 

or without pre-approval of drawdown requests: (1) Treasury determines that the

recipient does not meet the financial management system standards (see Section E)

included in these Standard Terms and Conditions, (2) Treasury determines that the

recipient has not established procedures that will minimize the time elapsing between

the transfer of funds and disbursement, or (3) Treasury determines that the recipient is

in noncompliance with the RESTORE Act, Treasury’s implementing regulations, other

pertinent federal statutes, these Standard Terms and Conditions, Program-Specific

Terms and Conditions, and/or any Special Award Conditions, and determines that the
February 2022 | Page 23

appropriate remedy is to require payment on a reimbursement basis.

2. If reimbursement is used, Treasury may require pre-approval of drawdown requests. If 

Treasury requires pre-approval of drawdown requests, Treasury will provide the 

recipient with instructions on what billing to submit. Treasury will make payment within

30 calendar days after receipt of the billing, unless Treasury determines the request to

be improper, in which case payment will not be made.

3. To the extent available, the recipient must disburse funds available from program

income, rebates, refunds, contract settlements, audit recoveries, and interest earned

on such funds before requesting additional cash payments of Award funds.

4. Treasury will use the Department of Treasury’s Automated Standard Application for

Payment (ASAP) system to disburse payments of Award funds. In order to receive

payments, the recipient must first enroll in ASAP.gov. Treasury creates and funds

account(s) for recipients in ASAP.gov, and recipients access their account(s) online to

request funds. All Award funds will be disbursed electronically using the Automated

Clearing House (ACH) for next day or future-day payments only. Awards paid through

ASAP.gov may contain controls or withdrawal limits set by Treasury.

5. Requirements applicable to recipients that are states: Payment methods of state

agencies or instrumentalities must be consistent with Treasury-State agreements under

the Cash Management Improvement Act, 31 C.F.R. Part 205 “Rules and Procedures for

Efficient Federal-State Funds Transfers,” and Treasury Financial Manual (TFM) 4A-2000

Overall Disbursing Rules for All Federal Agencies.

6. Requirements applicable to recipients that are not states: The recipient must minimize the

time between the transfer of funds from Treasury and the use of the funds by the

recipient. Advance payments to the recipient must be limited to the minimum amounts

needed and be timed to be in accordance with the actual, immediate cash requirements

of the recipient in carrying out the purpose of the approved activity, project, or program.

The timing and amount of advance payments must be as close as is administratively

feasible to the actual disbursements by the parish or county for activity, project, or

program costs and the proportionate share of any allowable indirect costs. Advances

should not be drawn down more than three business days before expenditure.

Advanced funds not disbursed in a timely manner must be promptly returned to

Treasury. The recipient must make timely payment to contractors (vendors) in

accordance with the contract provisions.

7. Advances of federal funds must be deposited and maintained in United States Governmentinsured interest-bearing accounts whenever possible. The recipient is not required to

maintain a separate depository account for receiving Award funds. If the recipient maintains

a single depository account where advances are commingled with funds from other sources,

the recipient must maintain on its books a separate subaccount for the Award funds.

Consistent with the national goal of expanding opportunities for women-owned and minorityowned business enterprises, the recipient is encouraged to ensure fair consideration of

women-owned and minority-owned banks (a bank which is owned at least 50 percent by

women or minority group members).

8. The recipient must maintain advances of federal funds in interest-bearing accounts,

unless one of the following conditions applies:

a. The recipient receives less than $250,000 in federal awards per year;

b. The best reasonably available interest-bearing account would not be expected to earn 

interest in excess of $500 per year on federal cash balances; or

c. The depository would require an average or minimum balance so high that it would

not be feasible within the expected federal and non-federal cash resources.
February 2022 | Page 24

9. Interest earned amounts up to $500 per year may be retained by the non-federal 

entity for administrative expense. Any additional interest earned on federal advance 

payments deposited in interest-bearing accounts must be remitted annually to the 

Department of Health and Human Services, Payment Management System, (PMS) 

through an electronic medium using either Automated Clearing House (ACH) 

network or a Fedwire Funds Service payment.

K NOTIFICATIONS AND PRIOR APPROVALS

1. Notifications

a. In addition to other notifications required under these Standard Terms and

Conditions, the recipient must promptly notify Treasury in writing whenever a

vacancy or change to key personnel listed in the award application occurs or 

is anticipated.

b. Except for changes described in (2) below, the recipient may revise the budget

without prior approval. If the recipient alters the budget, the recipient must provide

a revised budget form (SF-424A or SF-424C, as applicable) to Treasury as an

attachment to the SF-PPR, reflecting all budget revisions from the same period

covered by the SF-PPR. Acceptance of such budget information does not

constitute Treasury’s approval of the revised budget.

2. Prior Approvals

a. The recipient must obtain prior written approval from Treasury whenever any of

the following actions is anticipated:

i. A change in the scope or the objective of the project or program (even

if there is no associated budget revision requiring prior written

approval);

ii. A need to extend the period of performance;

iii. A need for additional federal funds to complete the activity, project, or

program;

iv. The transfer of funds among direct cost categories if this Award exceeds

the Simplified Acquisition Threshold (defined at 2 C.F.R. § 200.1) and the

cumulative amount of such transfers exceeds or is expected to exceed 10

percent of the total budget as last approved by Treasury;

v. Any transfer between the non-construction and construction budget lines;

vi. The use of funds to reimburse the recipient for pre-award costs;

vii. The inclusion of costs that require prior approval in accordance with 2 

C.F.R. Part 200, Subpart E—Cost Principles, unless described in the 

application and approved in this Award, including but not limited to costs 

related to foreign travel and research on human subjects (which includes 

surveys and focus groups);

viii. The subawarding, transferring or contracting out of any work under this

Award (this provision does not apply to the acquisition of supplies,

material, equipment or general support services), unless described in the 

application and approved in this Award;

ix. Termination of a subaward prior to the expiration of the agreement with 

the subrecipient;

x. The commencement of any construction under the award;
February 2022 | Page 25

xi. The purchase of equipment under the award;

xii. The use of real property in which there is a recorded federal interest for 

purposes other than purposes of award; and 

xiii. The disposition of real property or equipment with a fair market value 

exceeding $5,000.

L AMENDMENTS AND CLOSEOUT

1. Amendments

a. The terms of this Award may be amended with the written approval of the

recipient and Treasury.

b. Treasury reserves the right to unilaterally amend the terms of this Award if

required by federal law or regulation.

c. An amendment is required whenever Treasury and the recipient wish to:

i. Make a material change to the award scope of work;

ii. Extend the award period of performance;

iii. Increase or decrease the amount of funds on a RESTORE Act grant;

iv. Unless described in the application and funded in the approved federal 

awards, the subawarding, transferring or contracting out of any work 

under a federal award, to include the selection of a Center or Centers of 

Excellence not specified in the approved scope of work, or the 

termination of a subaward included in the approved scope of work prior 

to the expiration of the agreement with the subrecipient. This provision 

does not apply to the acquisition of supplies, material, equipment or 

general support services;

v. Change the approved cost-sharing or matching provided by the 

recipient; or

vi. Transfer funds between the construction and nonconstruction budget 

line items.

d. Requests for amendments must be submitted via GrantSolutions.gov, unless 

Treasury specifically waives this requirement, and must be signed by the 

recipient’s Authorized Official;

e. Request for amendments must contain the following information, unless 

otherwise indicated by Treasury:

i. A revised change in scope, whenever a material change in scope is 

requested or whenever the recipient intends to subaward, transfer or 

contract out of any work under a federal award, include the selection of 

a Center or Centers of Excellence not specified in the approved scope 

of work, or termination of a subaward included in the approved scope of 

work prior to the expiration of the agreement with the subrecipient. This 

scope of work should be in redline format to clearly identify the changes 

from the original scope of work and must include revised performance 

measures and a justification for the proposed revision to the scope of 

work;

ii. A revised detailed budget, whenever the recipient intends to make 

changes to the original approved budget to reflect a request for 

increased or decreased federal funding, a change in matching funds, or 
February 2022 | Page 26

transfers between line items. This detailed budget should show the 

original budget for each line item, the requested change for each line 

item, and an explanation or justification for each requested line item 

change;

iii. A revised period of performance and revised milestone chart, whenever 

a time extension is requested, as well as a justification for the time 

extension request, an explanation of how the recipient will accomplish 

the scope of work in the revised timeframe, and a discussion of risks 

that could further impact the schedule, and a risk mitigation strategy to 

reduce the likelihood of these schedule risks or their impact if they do 

occur; and

iv. Any other supporting documentation as appropriate and as requested 

by Treasury.

2. Closeout

a. Treasury will closeout this Award when it determines that all applicable

administrative actions and all required work of this Award have been completed.

b. Within 120 calendar days after the end of the period of performance, unless the

recipient requests, and Treasury approves, an extension, the recipient must

submit any outstanding SF-PPR and RESTORE Act Status of Performance reports,

as well as the required reporting on subawards, if applicable, plus a final SF-425

report. In the remarks section of the final SF-425 report, the recipient must

describe by federal budget class category the final use of all funds received by the 

recipient and subrecipient (if applicable). The subrecipient must submit to the

recipient, no later than 90 calendar days (or an earlier date as agreed upon by the 

pass-through entity and subrecipient) after the end date of the period of 

performance, all financial, performance, and other reports as required by the terms 

and conditions of the federal award. The recipient may approve an extension when 

requested and justified by the subrecipient.

c. The recipient must liquidate all obligations incurred under this Award not later

than 120 calendar days after the end of the period of performance, or at 

closeout of the Award by Treasury.

d. The recipient must promptly refund any balances of unobligated cash that

Treasury paid. If the recipient is required to refund any balances, the 

recipient should contact Treasury for instructions.

e. Following receipt of reports in paragraph (a) of this section, Treasury will make

upward or downward adjustments to the allowable costs, and then make prompt

payment to the recipient for allowable, unreimbursed costs.

f. The recipient must account for any real and personal property acquired with 

Federal funds or received from the Federal Government in accordance with 2 

C.F.R. § § 200.310 through 200.316 and § 200.330.and Section Q of these 

terms and conditions

g. If the recipient does not submit all reports in accordance with 2 C.F.R. §

200.344, and the terms and conditions of this Award within one year of the 

period of performance end date, Treasury will proceed to close out the Award 

without the missing reports. Treasury will also report the recipient ‘s material 

failure to comply with the terms and conditions of this Award with the OMBdesignated integrity and performance system (currently FAPIIS) and may 

pursue other remedies for noncompliance, as listed in Section M.

h. The closeout of this Award does not affect any of the following:
February 2022 | Page 27

i. The right of Treasury or pass-through entity to disallow costs and recover 

funds on the basis of a later audit or other review. Treasury or pass-through 

entity must make any cost disallowance determination and notify the nonFederal entity within the record retention period.

ii. The requirement for the recipient to return any funds due as a result of later 

refunds, corrections, or other transactions including final indirect cost rate 

adjustments.

iii. The ability of the Federal awarding agency to make financial adjustments to 

a previously closed award such as resolving indirect cost payments and 

making final payments.

iv. Audit requirements in 2 C.F.R. Part 200, Subpart F.

v. Property management and disposition requirements in 2 C.F. R. §§ 200.310 

through 200.316.

vi. Records retention as required in 2 C.F.R. §§ 200.334 through 200.337.

i. After closeout of the Federal award, a relationship created under the Federal award 

may be modified or ended in whole or in part with the consent of the Federal 

awarding agency or pass-through entity and the non-Federal entity, provided the 

responsibilities of the non-Federal entity referred to in 2 C.F.R. § 200.344(a), 

including those for property management as applicable, are considered and 

provisions made for continuing responsibilities of the non-Federal entity, as 

appropriate.

M TERMINATION AND REMEDIES FOR NONCOMPLIANCE

1. If Treasury determines that the recipient has failed to comply with the RESTORE Act,

Treasury’s implementing regulations, these Standard Terms and Conditions, ProgramSpecific Terms and Conditions, or any Special Award Conditions, Treasury may take any

of the following actions (in addition to the remedies in Section A.3, above, applicable to

Direct Component awards):

a. Impose additional Special Award Conditions such as:

i. Allowing payment only on a reimbursement basis, with pre-approval of 

drawdown requests;

ii. Requiring additional reporting or more frequent submission of the SF425, SF-PPR, or RESTORE Act Status of Performance Report;

iii. Requiring additional activity, project, or program monitoring;

iv. Requiring the recipient or one or more of its subrecipients to obtain

technical or management assistance; and/or

v. Establishing additional actions that require prior approval;

b. Temporarily withhold payments pending correction of the noncompliance;

c. Disallow from this Award all or part of the cost of the activity or action not in

compliance;

d. Wholly or partly suspend or terminate this Award;

e. Withhold additional Awards;

f. Initiate suspension or debarment proceedings as authorized under 2 C.F.R. Part

180 and Treasury’s implementing regulations at 31 C.F.R. Part 19; and/or

g. Take any other remedies that may be legally available.
February 2022 | Page 28

2. Treasury will notify the recipient in writing of Treasury’s proposed determination that an

instance of noncompliance has occurred, provide details regarding the instance of

noncompliance, and indicate the remedy that Treasury proposes to pursue. The recipient

will have 30 calendar days to respond and provide information and documentation

contesting Treasury’s proposed determination or suggesting an alternative remedy.

3. Treasury will consider any and all information provided by the recipient and issue a final

determination in writing, which will state Treasury’s final findings regarding

noncompliance and the remedy to be imposed.

4. In extraordinary circumstances, Treasury may require that any of the remedies above take

effect immediately upon notice in writing to the recipient. In such cases, the recipient may

contest Treasury’s determination or suggest an alternative remedy in writing to Treasury,

and Treasury will issue a final determination.

5. Instead of, or in addition to, the remedies listed above, Treasury may refer the

noncompliance to the Treasury Office of Inspector General for investigation or audit.

Treasury will refer all allegations of fraud, waste, or abuse to the Treasury Inspector

General.

6. Treasury may terminate this Award in accordance with 2 C.F.R. § 200.340. Requests for

termination by the recipient must also be in accordance with 2 C.F.R. § 200.340. Such

requests must be in writing and must include the reasons for such termination, the

effective date, and in the case of partial termination, the portion to be terminated. If

Treasury determines that the remaining portion of this Award will not accomplish the

purpose of this Award, Treasury may terminate this Award in its entirety.

7. If this Award is terminated, Treasury will update or notify any relevant government-wide

systems or entities of any indications of poor performance as required by 41 U.S.C. §

417b and 31 U.S.C. § 3321, as implemented at 2 C.F.R. Part 180, and Treasury’s

implementing regulation at 31 C.F.R. Part 19.

8. Costs that result from obligations incurred by the recipient during a suspension or after

termination are not allowable unless Treasury expressly authorizes them in the notice of

suspension or termination or subsequently. However, costs during suspension or after

termination are allowable if: (1) the costs result from obligations which were properly

incurred by the recipient before the effective date of suspension or termination and are not

in anticipation of it; and (2) the costs would be allowable if the Award was not suspended

or expired normally at the end of the period of performance in which the termination takes

effect.

9. Notwithstanding the foregoing, consistent with 2 C.F.R. 200.340, Treasury may also 

unilaterally terminate this award in whole or in part if the award no longer effectuates the 

program goals or agency priorities.

N DEBTS

1. Payment of Debts Owed the Federal Government

a. Any funds paid to the recipient in excess of the amount to which the recipient is

finally determined to be authorized to retain under the terms of this Award

constitute a debt to the federal government.

b. Any debts determined to be owed the federal government must be paid promptly

by the recipient. A debt is delinquent if it has not been paid by the date specified in

Treasury’s initial written demand for payment, unless other satisfactory

arrangements have been made. Interest, penalties, and administrative charges

(see paragraphs c, d, and e below) shall be charged on delinquent debts in

accordance with 31 U.S.C. § 3717 and 31 C.F.R. § 901.9. Treasury will refer any
February 2022 | Page 29

debt that is more than 120 days delinquent to Treasury’s Bureau of the Fiscal

Service for debt collection services.

c. The minimum annual interest rate to be assessed on any debts is the Department

of the Treasury’s Current Value of Funds Rate (CVFR). The CVFR is available

online at https://www.fiscal.treasury.gov/fsreports/rpt/cvfr/cvfr_home.htm.The

assessed rate shall remain fixed for the duration of the indebtedness, based on the

beginning date in Treasury’s written demand for payment.

d. Penalties on any debts shall accrue at a rate of not more than 6 percent per year

or such other higher rate as authorized by law.

e. Administrative charges, that is, the costs of processing and handling a delinquent

debt, shall be determined by Treasury.

f. Funds for payment of a debt must not come from other federally sponsored

programs. Verification that other federal funds have not been used will be made,

e.g., during on-site visits and audits.

2. Effect of Judgment Lien on Eligibility for Federal Grants, Loans, or Programs

Pursuant to 28 U.S.C. § 3201(e), unless waived in writing by Treasury, a debtor who has

a judgment lien against the debtor’s property for a debt to the United States shall not be

eligible to receive any grant or loan that is made, insured, guaranteed, or financed directly

or indirectly by the United States or to receive funds directly from the federal government

in any program, except funds to which the debtor is entitled as beneficiary, until the

judgment is paid in full or otherwise satisfied.

O NON-DISCRIMINATION REQUIREMENTS

No person in the United States shall, on the ground of race, color, national origin, handicap, age,

religion, or sex, be excluded from participation in, be denied the benefits of, or be subject to

discrimination under any program or activity receiving federal financial assistance. The recipient

is required to comply with all non-discrimination requirements summarized in this section, and to

ensure that all subawards and contracts contain these nondiscrimination requirements.

1. Statutory Provisions

a. Title VI of the Civil Rights Act of 1964 (42 U.S.C. §§ 2000d et seq.) prohibits

discrimination on the grounds of race, color, or national origin under programs or

activities receiving federal financial assistance;

b. Title IX of the Education Amendments of 1972 (20 U.S.C. §§ 1681 et seq.)

prohibits discrimination on the basis of sex under federally assisted education

programs or activities;

c. Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. § 794)

prohibits discrimination on the basis of handicap under any program or activity

receiving or benefitting from federal assistance;

d. The Age Discrimination Act of 1975, as amended (42 U.S.C. §§ 6101 et seq.),

prohibits discrimination on the basis of age in programs or activities receiving

federal financial assistance;

e. Title II of the Americans with Disabilities Act of 1990, as amended (42 U.S.C. §§

12101 et seq.) (“ADA”), including the ADA Amendments Act of 2008 (Public Law

110-325), (“ADAAA”), prohibits discrimination on the basis of disability under

programs, activities, and services provided or made available by state and local

governments or instrumentalities or agencies thereto, as well as public or private
February 2022 | Page 30

entities that provide public transportation; and

f. Any other applicable non-discrimination law(s).

2. Regulatory Provisions

a. Treasury’s Title VI regulations, 31 C.F.R. Part 22, implement Title VI of the Civil 

Rights Act of 1964, as amended (42 U.S.C. §§ 2000d, et seq.) which prohibits

discrimination on the grounds of race, color, or national origin under programs or

activities receiving federal financial assistance;

b. Treasury’s Title IX regulations, 31 C.F.R. Part 28, implement Title IX of the

Education Amendments of 1972 (20 U.S.C. §§ 1681 et seq.) which prohibits

discrimination on the basis of sex under federally-assisted education programs or

activities;

c. Treasury’s Age Discrimination regulations, 31 C.F.R. Part 23, implement the Age 

Discrimination Act of 1975, which prohibits discrimination on the basis of age in 

programs and activities receiving federal financial assistance. 

3. Other Provisions

a. Parts II and III of EO 11246 (30 Fed. Reg. 12319, 1965), “Equal Employment

Opportunity,” as amended by EO 11375 (32 Fed. Reg. 14303, 1967) and 12086

(43 Fed. Reg. 46501, 1978), require federally assisted construction contracts to

include the nondiscrimination provisions of §§ 202 and 203 of EO 11246 and

Department of Labor regulations implementing EO 11246 (41 C.F.R. § 60-1.4(b),

1991).

b. EO 13166 (August 11, 2000), “Improving Access to Services for Persons With

Limited English Proficiency,” requires federal agencies to examine the services

provided, identify any need for services to those with limited English proficiency

(LEP), and develop and implement a system to provide those services so LEP

persons can have meaningful access to them.

4. Title VII Exemption for Religious Organizations

Generally, Title VII of the Civil Rights Act of 1964, 42 U.S.C. §§ 2000e et seq., provides

that it shall be an unlawful employment practice for an employer to discharge any

individual or otherwise to discriminate against an individual with respect to compensation,

terms, conditions, or privileges of employment because of such individual’s race, color,

religion, sex, or national origin. However, Title VII, 42 U.S.C. § 2000e-1(a), expressly

exempts from the prohibition against discrimination on the basis of religion, a religious

corporation, association, educational institution, or society with respect to the employment

of individuals of a particular religion to perform work connected with the carrying on by

such corporation, association, educational institution, or society of its activities.

5. Protections for Whistleblowers

In accordance with 41 U.S.C. § 4712, neither the recipient nor any of its subrecipients,

contractors (vendors), or subcontractors may discharge, demote, or otherwise

discriminate against an employee as a reprisal for disclosing information to a person or

entity listed below that the employee reasonably believes is evidence of gross

mismanagement of a federal contract or grant, a gross waste of federal funds, an abuse

of authority relating to a federal contract or grant, a substantial and specific danger to

public health or safety, or a violation of law, rule, or regulation related to a federal contract

(including the competition for or negotiation of a contract) or grant.
February 2022 | Page 31

The list of persons and entities referenced in the paragraph above includes the following: 

a. A Member of Congress or a representative of a committee of Congress;

b. An Inspector General;

c. The Government Accountability Office;

d. A Treasury employee responsible for contract or grant oversight or management;

e. An authorized official of the Department of Justice or other law enforcement

agency:

f. A court or grand jury; and/or

g. A management official or other employee of the recipient, subrecipient, vendor,

contractor (vendor), or subcontractor who has the responsibility to investigate,

discover, or address misconduct.

Recipients, subrecipients, and contractors shall inform its employees in writing of the rights 

and remedies provided under this section, in the predominant native language of the 

workforce.

P REQUIREMENT TO CHECK DEBARMENT AND SUSPENSION STATUS OF 

SUBRECIPIENTS, CONTRACTORS, SUBCONTRACTORS, AND VENDORS

1. Recipients that are authorized to enter into subawards or contracts to accomplish all or a

portion of the approved scope of work must verify that a proposed subrecipient or

contractor (if the contract is expected to equal or exceed $25,000) or its principals, does

not appear on the federal government’s Excluded Parties List prior to executing an

agreement or contract with that entity. Recipients may not enter into a subaward or

contract with an entity that appears on the Excluded Parties List. The Excluded Parties

List is accessible at http://www.sam.gov.

2. The recipient must ensure that any agreements or contracts with subrecipients or

contractors (vendors) require that they verify that their contractors (for contracts expected to

equal or exceed $25,000), subcontractors (for subcontracts expected to equal or exceed

$25,000), or principals that the subrecipients or contractors engage to accomplish the

scope of work, if applicable, do not appear on the federal government’s Excluded Parties

List. Subrecipients and contractors may not enter into a contract or subcontract with an

entity, or that entity’s principals, if that entity or its principals appear on the Excluded

Parties List.

3. The recipient must include a term or condition in all lower-tier covered transactions

(subawards, contracts, and subcontracts described in 31 C.F.R. Part 19, subpart B) that

the award is subject to 31 C.F.R. Part 19.

Q PROCUREMENT

1. General Provisions

a. When procuring property and services under a Federal award, a State must follow 

the same policies and procedures it uses for procurements from its non-Federal 

funds. The State will comply with 2 C.F.R. § 200.321, 200.322, and 200.323 and 

ensure that every purchase order or other contract includes any clauses required by 

2 C.F.R. § 200.327. 

b. All other non-Federal entities, including subrecipients of a State, must follow the 

procurement standards in 2 C.F.R. § 200.318 through 200.327.
February 2022 | Page 32

2. Solid Waste Disposal

The recipient must comply with Section 6002 of the Solid Waste Disposal Act, as

amended by the Resource Conservation and Recovery Act. The requirements of Section

6002 include procuring only items designated in guidelines of the Environmental

Protection Agency (EPA) at 40 C.F.R. Part 247 that contain the highest percentage of

recovered materials practicable, consistent with maintaining a satisfactory level of

competition, where the purchase price of the item exceeds $10,000 or the value of the

quantity acquired by the preceding fiscal year exceeded $10,000; procuring solid waste

management services in a manner that maximizes energy and resource recovery; and

establishing an affirmative procurement program for procurement of recovered materials

identified in the EPA guidelines.

3. Subawards

a. When the recipient makes a subaward to a subrecipient that is authorized to

enter into contracts for the purpose of completing the subaward scope of work,

the recipient must require the subrecipient to comply with the requirements

contained in this section.

b. The recipient, subrecipient, contractor, and/or subcontractor must not sub-grant

or sub-contract any part of the approved project to any agency or employee of

Treasury and/or other federal department, agency, or instrumentality without the

prior written approval of Treasury. Treasury will notify the recipient in writing of

the final determination.

4. Minority and Women-Owned Business Enterprises

Pursuant to 2 C.F.R. § 200.321, recipients and subrecipients must take all necessary

affirmative steps to assure that minority businesses, women’s business enterprises, and

labor surplus area firms are used when possible. Affirmative steps must include:

a. Placing qualified small and minority businesses and women’s business

enterprises on solicitation lists;

b. Assuring that small and minority businesses, and women’s business enterprises

are solicited whenever they are potential sources;

c. Dividing total requirements, when economically feasible, into smaller tasks or

quantities to permit maximum participation by small and minority business, and

women’s business enterprises;

d. Establishing delivery schedules, where the requirement permits, which

encourage participation by small and minority businesses, and women’s

business enterprises;

e. Using the services and assistance, as appropriate, of such organizations as the

Small Business Administration and the Minority Business Development Agency of

the Department of Commerce; and

f. Requiring the prime contractor, if subcontracts are to be let, to take the

affirmative steps listed in (a) through (e) of this paragraph.

5. Domestic Preference for Procurement

Recipients are encouraged, to the greatest extent practicable, to provide a preference for the 

purchase, acquisition, or use of goods, products, or material produced in the United States 

(including but not limited to iron, aluminum, steel, cement, and other manufactured products).
February 2022 | Page 33

See 2 C.F.R. § 200.322 for definitions of “manufactured products” and “produced in the United 

States.” This requirement must be included in all subawards including all contracts and 

purchase orders for work or products under this award pursuant to 2 C.F.R. § 200.322 and

Executive Order 14005 Ensuring the Future is Made in All of America by All of America’s 

Worker (January 25, 2021).

R ENVIRONMENTAL REQUIREMENTS

The recipient must comply with all environmental standards, and provide information requested by

Treasury relating to compliance with environmental standards, including but not limited to the

following federal statutes, regulations, and EOs. If the recipient is permitted to make any subawards,

the recipient must include the environmental statutes, regulations, and executive orders listed

below in any agreement or contract with a subrecipient, and require the subrecipient to comply with

all of these and to notify the recipient if the subrecipient becomes aware of any impact on the

environment that was not noted in the recipient’s approved application package:

1. National Historic Preservation Act, as amended (54 U.S.C. § 300101 et seq.) and

Archeological and Historic Preservation Act, as amended (54 U.S.C. § 312501 et seq.)

2. The National Environmental Policy Act of 1969, as amended (42 U.S.C. § 4321 et seq.)

3. Clean Air Act, as amended (42 U.S.C. § 7401 et seq.), Clean Water Act, as amended

(33 U.S.C. § 1251 et seq.), and EO 11738

4. The Flood Disaster Protection Act of 1973, as amended (42 U.S.C. § 4002 et seq.)

5. The Endangered Species Act of 1973, as amended, (16 U.S.C. § 1531 et seq.)

6. The Coastal Zone Management Act, as amended, (16 U.S.C. § 1451 et seq.)

7. The Coastal Barriers Resources Act, as amended, (16 U.S.C. § 3501 et seq.)

8. The Wild and Scenic Rivers Act, as amended, (16 U.S.C. § 1271 et seq.)

9. The Safe Drinking Water Act of 1974, as amended, (42 U.S.C. § 300f-j)

10. The Resource Conservation and Recovery Act of 1976, as amended, (42 U.S.C. §

6901 et seq.)

11. The Comprehensive Environmental Response, Compensation, and Liability Act

(Superfund) (42 U.S.C. § 9601 et seq.) and the Community Environmental Response

Facilitation Act (42 U.S.C. § 9601 note)

12. Magnuson-Stevens Fishery Conservation and Management Act, as amended (16 U.S.C.

§1801)

13. Marine Mammal Protection Act, as amended (16 U.S.C § 31)

14. Migratory Bird Treaty Act, as amended (16 U.S.C. §§ 703-712)

15. Responsibilities of Federal Agencies to Protect Migratory Birds, EO 13186

16. Bald and Golden Eagle Protection Act, as amended (16 U.S.C. § 668-668d)

17. Marine Protection, Research and Sanctuaries Act (33 U.S.C. §§ 1401-1445 and 16 U.S.C.

§ 1431—1445)

18. National Marine Sanctuaries Act, as amended (16 U.S.C. § 1431 et seq.)

19. Rivers and Harbors Act of 1899 (33 U.S.C § 407)

20. Environmental Justice in Minority Populations and Low-Income Populations, EO 12898,

as amended

21. Flood Management, EO 11988, as amended by EO 13690, which was revoked by EO 
February 2022 | Page 34

13807 on August 15, 2017 and reinstated by EO 14030 on May 20, 2021, reestablishing 

the Federal Flood Risk Management Standard (FFRMS) 

22. Protection of Wetland, EO11990, May 24, 177, as amended by EO 12608

23. Farmland Protection Policy Act, as amended (7 U.S.C. § 4201 et. seq.)

24. Coral Reef Protection, EO 13089

25. Invasive Species, EO 13112

S REAL PROPERTY, CONSTRUCTION, EQUIPMENT AND SUPPLIES

1. General Requirements

a. The recipient must comply with the property standards at 2 C.F.R. § 200.310

through 200.316 for real property, equipment, supplies, and intangible property.

2. Real Property and Acquisition of Land and Land Interests

a. No real property or interest in real property may be acquired under this Award

unless authorized in the approved scope of work.

b. In accordance with 31 C.F.R. § 34.803(f), no land or interests in land, such as 

easements, or right of ways, may be acquired under this Award unless the 

recipient can provide documentation satisfactory to Treasury that the land or 

interest in land was acquired by purchase, exchange, or donation from a willing 

seller.

3. Compliance with State, Local and Federal Requirements

The project must comply with all applicable federal laws and regulations, and with all

requirements for state, and local laws and ordinances to the extent that such requirements

do not conflict with federal laws. The recipient is also responsible for supervising the

design, bidding, construction, and operation of construction projects in compliance with all

award requirements. The recipient must comply with, and must require all contractors and

subcontractors, to comply with all federal, state, and local laws and regulations. The

recipient must ensure compliance with special award conditions which may contain

conditions that must be satisfied prior to advertisement of bids, start of construction, or

another critical event.

4. Title

a. Prior to receiving Treasury authorization to start construction, the recipient must

furnish evidence, satisfactory to Treasury, that the recipient has acquired good and

merchantable title free of all mortgages, foreclosable liens, or encumbrances, to all

land, rights of way, and easements necessary for the completion of the project.

b. When property has been newly acquired for the project, the recipient must provide 

the following as evidence of clear title to the property:

i. A copy of the recorded deed or equivalent conveyance document showing 

the recipient acquired title to the property; and

ii. A copy of the title insurance (also known as title policy), title report, or title 

opinion (by attorney(s) licensed in the jurisdiction where the property is 

located) completed after the real estate acquisition showing the recipient 

obtained title to the property free of any encumbrances (i.e., foreclosable 

liens, easements, or any other limitations on use that interferes with the 

recipient’s intended use, operation, construction, maintenance of the 
February 2022 | Page 35

property, or Treasury’s federal interest). The title insurance, title report, or 

title opinion should include the legal description of the property.

c. When the property to be used for the project has not been newly acquired, the 

recipient must provide the following as evidence of clear title to the property both of 

the items listed in (b) above, provided that the copy of the title insurance, title report, 

title opinion, or equivalent must be completed within the last year. If such evidence is 

more than one year old, the recipient must provide Treasury with an explanation, 

which Treasury may in its discretion decline to accept.

d. When easements, rights-of-way, or other rights are required for the completion of the 

project, the recipient must provide the following documentation:

i. A copy of the easement deed or equivalent conveyance document; and 

ii. A copy of the title insurance, title report, or title opinion (by attorney(s) 

licensed in the jurisdiction where the property is located).

e. When use of or access to leased property is required for the project, the recipient 

must provide the following evidence of control of the leased property:

i. A copy of the lease signed by the lessor and recipient that provides a lease 

term equivalent to the estimated useful life (EUL) of the project or renewable 

for that period; and

ii. A certification from the recipient that it has control of all project property or 

improvements to the property and is not aware of any material restrictions or 

encumbrances that could interfere with any award purpose for the duration 

of the EUL. If this changes within the course of the EUL, the recipient must 

provide timely notice to Treasury. The federal interest may be waived, if it is 

decided that recording the federal interest is not feasible, then Treasury may 

include a special award condition on the award that the recipient will repay 

the federal interest if the lessor terminates the lease before the EUL of the 

project expires or if the recipient or lessor uses the property in a manner 

inconsistent with the public purpose(s) of the award during the EUL of the 

improvements or construction, as applicable. 

f. When the project involves linear construction/improvement, road construction, or 

other less common types of construction, recipients should contact Treasury for 

guidance on the types of evidence of title required.

g. Notwithstanding (a)-(f), Treasury may in its discretion accept only a copy of the title 

insurance, title report, title opinion, or equivalent as evidence of title (or easement or 

other rights) if the recipient is unable to produce the relevant conveyance document.

h. In all cases, recipients must disclose any ongoing litigation concerning the project 

property prior to seeking Treasury’s permission to proceed with construction.

5. Permitting Requirements

Prior to receiving Treasury permission to proceed with construction, the recipient must

furnish evidence, satisfactory to Treasury, that recipient has received all federal, state

and local permits necessary for the completion of the project. In extraordinary 

circumstances and at Treasury’s sole discretion, Treasury may accept alternate 

documentation such as, draft permits, which must be finalized within a specified time as 

determined by Treasury after approval of a request for notice to proceed with construction.

6. Estimated Useful Life
February 2022 | Page 36

a. Property that is acquired or improved, in whole or in part, with federal assistance is

held in trust by the recipient for the purpose(s) for which the award was made for

the Estimated Useful Life. Estimated Useful Life means the period of years that

constitutes the expected useful lifespan of a project, as determined by Treasury.

The recipient must propose an Estimated Useful Life from the date of construction

completion either prior to award or initiation of construction. If the Estimated Useful 

Life is provided in the application, Treasury’s issuance of the grant agreement

represents its concurrence with the recipient’s proposed Estimated Useful Life.

b. The recipient’s obligation to the federal government continues for the Estimated

Useful Life of the project, as determined by Treasury, during which Treasury retains

an undivided equitable reversionary interest (the "federal interest”) in the property

acquired or improved, in whole or in part, with the Treasury investment.

c. If Treasury determines that the recipient has failed or fails to meet its obligations

under the terms and conditions of this award, Treasury may exercise its rights or

remedies with respect to its federal interest in the project. However, Treasury’s

forbearance in exercising any right or remedy in connection with the federal

interest does not constitute a waiver thereof.

d. At its discretion, Treasury may waive the requirement to establish an Estimated Useful 

Life for environmental restoration projects.

7. Recording the Federal Interest in the Real Property

Pursuant to 2 C.F.R. § 200.316, Treasury retains an undivided equitable reversionary

interest in real property (a “federal interest”) that is acquired or improved, in whole or in

part with RESTORE Act Direct Component funds, which must be held in trust by the 

recipient for the benefit of the project for the Estimated Useful Life of the project. 

To document the federal interest, the recipient must prepare and properly record a

“Covenant of Purpose, Use and Ownership” (Covenant), or, where a subrecipient is the 

title owner, the recipient must ensure that the subrecipient prepares and properly records a

“Covenant of Purpose, Use and Ownership” (Covenant) on the property acquired or 

improved with RESTORE Act Direct Component funds. This Covenant does not establish a

traditional mortgage lien in that it does not establish a traditional creditor relationship

requiring the periodic repayment of principal and interest, or the ability of Treasury to

foreclose on the real property at any time. Rather, pursuant to the Covenant, the recipient

and/or the subrecipient, as applicable, acknowledges that it holds title to the real property in

trust for the public purposes of the financial assistance award and agrees, among other

commitments, that it will repay the federal interest if it disposes of or alienates its interest in

the real property, or uses it in a manner inconsistent with the public purposes of the award,

during the Estimated Useful Life of the property.

a. The Covenant must be satisfactory in form and substance to Treasury and must 

include the name and current address of the recipient and/or subrecipient (if applicable), 

the award number, amount, date of award, subrecipient agreement (if applicable), date of 

the purchase of property (if applicable), and the Estimated Useful Life of the project. It 

must also include statements that the real property will only be used for purposes 

consistent with the RESTORE Act and Treasury’s implementing regulations, 31 

C.F.R. Part 34; that it will not be mortgaged or used as collateral, sold, or otherwise 

transferred to another party without the written permission of Treasury; and that the 

federal interest cannot be subordinated, diminished, nullified, or released through 

encumbrance of the property, transfer of the property to another party, or any other 

action the recipient/subrecipient takes without the written permission of Treasury.

b. The recipient agrees to provide to Treasury a title insurance (also known as title 
February 2022 | Page 37

policy), title report, or title opinion as to the title owner of the property, and to properly

record the Covenant, in accordance with applicable law in the real property records

in the jurisdiction in which the real property is located in order to provide public

record notice to interested parties that there are certain restrictions on the use and

disposition of the real property during its Estimated Useful Life, and that Treasury

retains an undivided equitable reversionary interest in the real property to the

extent of its participation in the project for which funds have been awarded.

c. Treasury requires title insurance, a title report, or a title opinion from the recipient

to substantiate that the Covenant has been properly recorded.

d. Failure to properly and timely file and maintain documentation of the federal

interest may result in appropriate enforcement action, including, but not limited

to, disallowance of the cost of the acquisition or improvement by Treasury.

e. The Federal Interest must be perfected and recorded/filed in accordance with 

state and/or local law concurrent with the acquisition of the real property, 

where an award includes real property acquisition, and for construction of 

buildings and projects to improve the real property, no later than the date 

construction and/or improvement work commences.

f. When the Estimated Useful Life of the project is ended, the federal interest is

extinguished, and Treasury has no further interest in the real property.

g. Exclusions from the requirement that the federal interest on real property be 

recorded will be at Treasury’s sole discretion. The types of projects for which 

Treasury may agree to this exclusion include, but are not limited to, the 

following: work which involves no above grade structures, work within utility 

easements, work on leased property, improvements to state parks, water and 

sewer lateral line projects affecting private properties, and shoreline 

stabilization projects and other restoration projects.

8. Use of Real Property

Encumbering real property on which there is a federal interest without prior Treasury

approval is an unauthorized use of the property and of project trust funds under this

award. See 2 C.F.R. § 200.316. Real property or interest in real property may not be used

for purposes other than the authorized purpose of the award without the express, prior

written approval of Treasury, for as long as the federal government retains an interest in

the property. The property must not be sold, conveyed, transferred, assigned, mortgaged,

or in any other manner encumbered except as expressly authorized in writing by Treasury.

The recipient must maintain facilities constructed or renovated with grant funds in a

manner consistent with the purposes for which the funds were provided for the duration of

the Estimated Useful Life.

In the event that the real property or interest in real property is no longer needed for the

originally authorized purpose, the recipient must obtain disposition instructions from

Treasury consistent with 2 C.F.R. § 200.311.

9. Administration, Operation and Maintenance

The recipient agrees to administer, operate, and maintain the project for its Estimated

Useful Life in the same manner in which it operates and maintains similar facilities and

equipment owned by it, and in accordance with state and local standards, laws and

regulations. The recipient must not be in breach of its obligations under this award except to

the extent the failure to fulfill any obligation is due to an Uncontrollable Force.

“Uncontrollable Force” means an event beyond the reasonable control of, and without the

fault or negligence of, the party claiming the Uncontrollable Force that prevents the

recipient from honoring its contractual obligations under this Agreement and which, by
February 2022 | Page 38

exercise of the recipient’s reasonable care, diligence and foresight, such recipient was

unable to avoid. Uncontrollable Forces include, but are not limited to:

a. Strikes or work stoppage;

b. Floods, earthquakes, or other natural disasters;

c. Terrorist acts; and

d. Final orders or injunctions issued by a court or regulatory body having competent

subject matter jurisdiction which the recipient, claiming the Uncontrollable Force,

after diligent efforts, was unable to have stayed, suspended, or set aside pending

review by a court of competent subject matter jurisdiction. Neither the unavailability

of funds or financing, nor conditions of national or local economies or markets

must be considered an Uncontrollable Force.

10. Commencement of Construction

The recipient must not commence construction prior to the date of the Award. The

recipient must make a written request to Treasury for permission to commence with

construction after the construction contractor has been selected and at least 30 days prior 

to construction. For project costs to be eligible for Treasury reimbursement, Treasury must

determine that the award of all contracts with associated costs are in compliance with the 

scope of the project and all terms and conditions of this award, and that all necessary

permits have been or will be obtained, all Special Award Conditions tied to the 

commencement of construction have been satisfied, and the federal interest is secure. No 

construction funds may be drawn from ASAP without Treasury’s written permission. If the

recipient commences construction prior to Treasury’s determination, the recipient proceeds

at its own risk.

Treasury will only review contract amendments or change orders which change the 

scope of a contract.

11. Insurance

The recipient must, at a minimum, provide the equivalent insurance coverage for real

property improved with federal funds as provided to property owned by the recipient state,

county or parish, in compliance with 2 C.F.R. § 200.310.

12. Bonding

For construction or facility improvement contracts or subcontracts exceeding the simplified

acquisition threshold, the recipient or pass-through entity may request in writing that

Treasury accept its bonding policy and requirements. If Treasury determines that the

federal interest in the project is adequately protected, the recipient or pass-through entity

need not comply with the following three bonding requirements. For all other recipients

and pass-through entities, the minimum requirements for construction or facility

improvement contracts or subcontracts exceeding the simplified acquisition threshold are

as follows: 

a. A bid guarantee from each bidder equivalent to five percent of the bid price. The “bid 

guarantee” must consist of a firm commitment such as a bid bond, certified check, or 

other negotiable instrument accompanying a bid as assurance that the bidder will, 

upon acceptance of the bid, execute such contractual instruments as may be 

required within the time specified.

b. A performance bond on the part of the contractor for 100 percent of the contract 
February 2022 | Page 39

price. A “performance bond” is one executed in connection with a contract to secure 

fulfillment of all the contractor's obligations under such contract.

c. A payment bond on the part of the contractor for 100 percent of the contract price. A 

“payment bond” is one executed in connection with a contract to assure payment as 

required by law of all persons supplying labor and material in the execution of the 

work provided for in the contract.

13. Floodplain Requirements

In accordance with 44 C.F.R. Part 9, prior to Treasury’s permission to commence

construction in a designated 100-year floodplain, the recipient must provide evidence

satisfactory to Treasury of a Floodplain Notice, that the 30-day period established for

receipt of comments from the public in response to public notice published regarding the

potential for adverse project impact on the values and functions of a designated 100-year

floodplain has expired and that identified concerns (if any) have been addressed to

Treasury’s satisfaction. This notice may be satisfied through a federal/state environmental 

assessment process used as the vehicle for public notice, involvement, and explanation 

per 44 C.F.R. § 9.8(2).

In addition, prior to Treasury’s authorization to commence construction of structures 

and/or buildings within a designated 100-year floodplain, the recipient must provide 

evidence satisfactory to Treasury of the following: 

a. Floodplain Protection: That the project engineer/architect has certified that the

project facility will be adequately protected from damage by floods in this area of

apparent potential flood hazard. The evidence must include adequate justification

for the Base Flood Elevation designation for the financial assistance award site.

b. Floodplain Insurance: That the community is participating in the National Flood

Insurance Program, and that as required, the recipient will purchase flood

insurance.

14. Goals for Women and Minorities in Construction

Department of Labor regulations set forth in 41 C.F.R. § 60-4 establish goals and

timetables for participation of minorities and women in the construction industry. These

regulations apply to all federally assisted construction contracts in excess of $10,000. The

recipient must comply with these regulations and must obtain compliance with 41 C.F.R. §

60-4 from contractors and subcontractors employed in the completion of the project by

including such notices, clauses and provisions in the Solicitations for Offers or Bids as

required by 41 C.F.R. § 60-4.

a. The goal for participation of women in each trade area must be as follows: From April

1, 1981, until further notice: 6.9 percent;

b. All changes to this goal, as published in the Federal Register in accordance with

the Office of Federal Contract Compliance Programs regulations at 41 C.F.R. §

60-4.6, or any successor regulations, must hereafter be incorporated by reference

into these Special Award Conditions; and,

c. Goals for minority participation must be as prescribed by Appendix B-80, Federal

Register, Volume 45, No. 194, October 3, 1980, or subsequent publications. The

recipient must include the “Standard Federal Equal Employment Opportunity

Construction Contract Specifications” (or cause them to be included, if

appropriate) in all federally assisted contracts and subcontracts. The goals and

timetables for minority and female participation may not be less than those
February 2022 | Page 40

published pursuant to 41 C.F.R. § 60-4.6.

15. Davis Bacon Act, as amended (40 U.S.C. §§ 3141–3148)

Davis-Bacon Act-related provisions outlined in 33 U.S.C. § 1372 are applicable to 

RESTORE Act grants that fund a construction project that is a “treatment works” project as 

defined in 33 U.S.C. § 1292; or a construction project regardless of whether it is a

“treatment works” project when RESTORE Act Direct Component grant funds are used on 

a construction project in conjunction with federal assistance from another federal agency

operating under an authority that requires the enforcement of Davis-Bacon Act-related

provisions.

a. “Treatment works” is defined in 33 U.S.C. § 1292, and means any:

i. Devices and systems:

1) Used in the storage, treatment, recycling, and reclamation of 

municipal sewage or industrial wastes of a liquid nature to 

implement 33 U.S.C. § 1281; or

2) Necessary to recycle or reuse water at the most economical cost 

over the estimated life of the works, including intercepting sewers, 

outfall ewers, sewage collection systems, pumping, power, and 

other equipment, and their appurtenances; extensions, 

improvements, remodeling, additions, and alterations to those 

devices and system; and

ii. Elements essential to provide a reliable recycled supply of water such as 

standby treatment units and clear well facilities;

iii. Acquisition of the land that will be an integral part of the treatment process 

(including land used for the storage of treated wastewater in land treatment 

systems prior to land application) or will be used for ultimate disposal of 

residues resulting from such treatment and acquisition of other land, and 

interests in land, that are necessary for construction; or

Any other method or system for preventing, abating, reducing, storing, 

treating, separating, or disposing of municipal waste, including storm water 

runoff, or industrial waste, including waste in combined storm water and 

sanitary sewer systems. 

b. When Davis-Bacon Act-related provisions applies, the recipient must include a

provision for compliance with the Davis-Bacon Act (40 U.S.C. §§ 3141–3144, and

§§ 3146–3148) as supplemented by Department of Labor regulations (29 C.F.R.

Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally

Financed and Assisted Construction”) in all prime construction contracts in excess

of $2,000 which is entered into for the actual construction, alteration and/or repair, 

including painting and decorating, of a public building or public work, or building 

or work financed in whole or in part from Federal funds. The recipient must place 

a copy of the current prevailing wage determination issued by the Department of 

Labor in each solicitation. For information on the current prevailing wage rate 

determination for a specific locality go to https://sam.gov/content/wagedeterminations. If there is no prevailing wage rate determination for your locality, 

recipients should contact the U.S. Department of Labor at 1-866-487-2365 on

how to obtain a prevailing wage rate determination.

c. The decision to award a contract or subcontract must be conditioned upon the 

acceptance of the wage determination. In accordance with the statute and 

regulations, contractors are required to pay wages to laborers and mechanics at 
February 2022 | Page 41

a rate not less than the prevailing wages specified in a wage determination made 

by the Secretary of Labor and required to pay wages not less than once a week. 

The contractor shall submit weekly for each week in which any contract work is 

performed, a copy of all payrolls to the recipient. The required weekly payroll 

information may be submitted in any form desired. A contractor may use Form 

WH–347 which is available at https://www.dol.gov/agencies/whd/governmentcontracts/construction/payroll-certification.

d. The prime contractor shall be responsible for compliance by any subcontractor or 

lower-tier subcontractor. Payrolls and basic records relating thereto shall be 

maintained by the contractor during the course of the work and preserved for a 

period of three years thereafter for all laborers and mechanics working at the site 

of the work. The recipient must report all suspected or reported violations to 

Treasury.

e. The wage determination (including any additional classification and wage rates) 

and the Davis-Bacon poster (WH–1321) shall be posted at all times by the 

contractor and its subcontractors at the site of the work in a prominent and 

accessible place where it can be easily seen by the workers. The posters can be 

found at https://www.dol.gov/whd/programs/dbra/wh1321.htm.

f. The recipient must include all the following contract clauses outlined in 29 C.F.R.

§ 5.5(a) in all construction contracts subject to the Davis-Bacon and Related Acts

requirements, which are in excess of $2,000 and entered into for the actual 

construction, alteration and/or repair, including painting and decorating, of a 

public building or public work, or building or work financed in whole or in part from 

RESTORE Act Direct Component grant funds, and ensure that any subrecipient 

also includes these contract clauses in all construction contracts subject to the 

Davis-Bacon Act requirements (see Appendix III of this document).

g. Contract Provision for Contracts in Excess of $100,000: Contract Work Hours 

and Safety Standards Act. All contracts awarded by the recipient or subrecipient in 

excess of $100,000 that involve the employment of mechanics or laborers must 

include a provision for compliance with 40 U.S.C. §§ 3702 and 3704, as 

supplemented by Department of Labor regulations at 29 C.F.R. § 5.5(b). Under 40 

U.S.C. § 3702, each contractor must be required to compute the wages of every 

mechanic and laborer on the basis of a standard work week of 40 hours. Work in 

excess of the standard work week is permissible provided that the worker is 

compensated at a rate of not less than one and a half times the basic rate of pay for 

all hours worked in excess of 40 hours in the work week. The requirements of 40 

U.S.C. § 3704 are applicable to construction work and provide that no laborer or 

mechanic must be required to work in surroundings or under working conditions 

which are unsanitary, hazardous or dangerous. These requirements do not apply 

to the purchases of supplies or materials or articles ordinarily available on the 

open market, or contracts for transportation or transmission of intelligence.

The recipient or subrecipient shall insert the clauses set forth in 29 C.F.R. §§ 

5.5(b)(1) through (4) in full in any contract in an amount in excess of $100,000 and 

subject to the overtime provisions of the Contract Work Hours and Safety Standards 

Act. These clauses shall be inserted in addition to the clauses required by 29 C.F.R.

§ 5.5(a). As used in this paragraph, the terms laborers and mechanics include 

watchmen and guards. See Appendix IV of this document for the Contract Clauses 

Required for Contracts Subject to the Requirements of the Contract Work Hours and 

Safety Standards Act.

h. In addition to the clauses contained in 29 C.F.R. § 5.5(b), in any contract subject 

only to the Contract Work Hours and Safety Standards Act and not to any of the 

other statutes cited in 29 C.F.R. § 5.1, the recipient or subrecipient shall insert a 
February 2022 | Page 42

clause requiring that the contractor or subcontractor shall maintain payrolls and basic 

payroll records during the course of the work and shall preserve them for a period of 

three years from the completion of the contract for all laborers and mechanics, 

including guards and watchmen, working on the contract. Such records shall contain 

the name and address of each such employee, social security number, correct 

classifications, hourly rates of wages paid, daily and weekly number of hours 

worked, deductions made, and actual wages paid. Further, the recipient or 

subrecipient shall insert in any such contract a clause providing that the records to 

be maintained under this paragraph shall be made available by the contractor or 

subcontractor for inspection, copying, or transcription by authorized representatives 

of the recipient, Department of Treasury, and the Department of Labor, and the 

contractor or subcontractor will permit such representatives to interview employees 

during working hours on the job. 

i. Enforcement: In accordance with 29 C.F.R. § 5.6(a)(1), Treasury has the 

responsibility to ascertain whether the clauses required by 29 C.F.R. § 5.5 have 

been inserted in the contracts subject to the labor standards provisions of the Acts 

contained in 29 C.F.R. § 5.1. Pursuant to 29 C.F.R. § 5.6(a)(3), Treasury may cause 

investigations to be made by the recipient as may be necessary to ensure 

compliance with the labor standards clauses required by 29 C.F.R. § 5.5 and the 

applicable statutes listed in 29 C.F.R. § 5.1. Investigations shall be made of all 

contracts with such frequency as may be necessary to ensure compliance. Such 

investigations shall include interviews with employees, which shall be taken in 

confidence, and examinations of payroll data and evidence of registration and 

certification with respect to apprenticeship and training plans. In making such 

examinations, particular care shall be taken to determine the correctness of 

classifications and to determine whether there is a disproportionate employment of 

laborers and of apprentices or trainees registered in approved programs. Such 

investigations shall also include evidence of fringe benefit plans and payments 

thereunder. Complaints of alleged violations shall be given priority.

16. Equal Opportunity Clause

Pursuant to 41 C.F.R. § 60-1.4(b), federally-assisted construction contracts, for construction

which is not exempt from the requirements of the equal opportunity clause, 41 C.F.R. Part

60-1—Obligations of Contractors and Subcontractors, the recipient hereby agrees that it

will incorporate or cause to be incorporated into any contract for construction work, or

modification thereof, as defined in the regulations of the Secretary of Labor at 41 C.F.R.

Chapter 60, which is paid for in whole or in part with funds obtained from the federal

government or borrowed on the credit of the federal government pursuant to a grant,

contract, loan, insurance, or guarantee, or undertaken pursuant to any federal program

involving such grant, contract, loan, insurance, or guarantee, the following equal

opportunity clause: See Appendix V for the full text of 41 C.F.R. § 60-1.4.

17. Revised ADA Standards for Accessible Design for Construction Awards

The U.S. Department of Justice has issued revised regulations implementing Title II of

the ADA (28 C.F.R. Part 35) and Title III of the ADA (28 C.F.R. Part 36). The revised

regulations adopted new enforceable accessibility standards called the “2010 ADA

Standards for Accessible Design” (2010 Standards). The 2010 Standards are an

acceptable alternative to the Uniform Federal Accessibility Standards (UFAS). Treasury

deems compliance with the 2010 Standards to be an acceptable means of complying

with the Section 504 accessibility requirements for new construction and alteration

projects. All new construction and alteration projects must comply with the 2010 

Standards.

18. Supplies and Equipment
February 2022 | Page 43

a. Requirements that are applicable to recipients that are states:

i. Equipment: The recipient must use, manage, and dispose of equipment

acquired under this Award in accordance with state laws and procedures.

ii. Supplies: If the recipient has a residual inventory of unused supplies

exceeding $5,000 in total aggregate value upon termination or completion

of the activity, project, or program and the supplies are not needed for any

other federal award, the recipient must report the value and the retention

or sale of such supplies by submitting to Treasury a completed SF-428

Tangible Personal Property Report and SF-428-B Final Report Form no

later than 60 days after the end of the Period of Performance.

b. Requirements that are applicable to recipients that are not states:

i. Equipment and Supplies: During the period of performance, the recipient

must seek disposition instructions from Treasury for equipment and/or 

unused or residual supplies acquired under this Award if the current fair

market value of the equipment and/or unused or residual supplies is

greater than $5,000 per unit. The recipient must seek disposition

instructions before disposing of the property by submitting a completed

SF-428 Tangible Personal Property Report and SF-428-C Disposition

Request/Report. Not later than 60 days after the end of the period of

performance, the recipient must submit to Treasury a completed SF-428

Tangible Personal Property Report and SF-428-B Final Report Form if

the recipient retains any equipment with a current fair market value

greater than $5,000 per unit or a residual inventory of unused supplies

exceeding $5,000 in total aggregate value upon termination or

completion of the activity, project, or program and the equipment and/or 

supplies are not needed for any other federal award.

T MISCELLANEOUS REQUIREMENTS AND PROVISIONS

The recipient must comply with all miscellaneous requirements and provisions described in this

section and, when applicable, require its subrecipients, contractors, and subcontractors to comply.

This list is not exclusive:

1. Prohibition Against Assignment by the Recipient

Notwithstanding any other provision of this Award, the recipient must not transfer, pledge,

mortgage, or otherwise assign this Award, or any interest therein, or any claim arising

thereunder, to any party or parties, banks, trust companies, or other financing or financial

institutions without the express written approval of Treasury.

2. Disclaimer Provisions

a. The United States expressly disclaims any and all responsibility or liability to the

recipient or third persons for the actions of the recipient or third persons resulting

in death, bodily injury, property damages, or any other losses resulting in any way

from the performance of this Award or any other losses resulting in any way from

the performance of this Award or any subaward, contract, or subcontract under this

Award.

b. The acceptance of this Award by the recipient does not in any way constitute an

agency relationship between the United States and the recipient.

3. Prohibited and Criminal Activities
February 2022 | Page 44

a. The Program Fraud Civil Remedies Act of 1986 (31 U.S.C. §§ 3801-3812),

provides for the imposition of civil penalties against persons who make false,

fictitious, or fraudulent claims to the federal government for money (including

money representing grants, loans or other benefits).

b. False Statements, as amended (18 U.S.C. § 1001) provides that whoever makes

or presents any materially false, fictitious, or fraudulent statements to the United

States shall be subject to imprisonment of not more than five years.

c. False, Fictitious, or Fraudulent Claims, as amended (18 U.S.C. § 287) provides that

whoever makes or presents a false, fictitious, or fraudulent claim against or to the

United States shall be subject to imprisonment of not more than five years and

shall be subject to a fine in the amount provided in 18 U.S.C. § 287.

d. False Claims Act (31 U.S.C. §§ 3729-3732), provides that suits under this act can

be brought by the federal government, or a person on behalf of the federal

government, for false claims under federal assistance programs

e. Copeland “Anti-Kickback” Act (41 U.S.C §§ 1320a-7b(b)) prohibits a person or

organization engaged in a federally supported project from enticing an employee

working on the project from giving up a part of his compensation under an

employment contract. The Copeland “Anti-Kickback” Act also applies to contractors

and subcontractors pursuant to 40 U.S.C. § 3145.

4. Limitations on Political Activities of Employees

The recipient must comply, as applicable, with provisions of the Hatch Act, as amended

(5 U.S.C. §§ 1501-1508 and §§ 7321-7326) which limit the political activities of employees

whose principal employment activities are funded in whole or in part with federal funds.

5. Drug-Free Workplace

The recipient must comply with the provisions of the Drug-Free Workplace Act of 1988

(Public Law 100-690, Title V, Sec. 5153, as amended by Public Law 105-85, Div. A, Title

VIII, Sec. 809, as codified at 41 U.S.C. § 8102), and Treasury implementing regulations at

31 C.F.R. Part 20, which require that the recipient take steps to provide a drug-free

workplace.

6. Increasing Seat Belt Use in the United States

Pursuant to Executive Order 13043, 62 FR 19217 (Apr. 8, 1997), Recipient should

encourage its employees and should encourage contractors to adopt and enforce on-thejob seat belt policies and programs for their employees when operating company-owned,

rented or personally owned vehicles.

7. Reducing Text Messaging While Driving

Pursuant to Executive Order 13513, 74 FR 51225 (Oct. 1, 2009), recipient should 

encourage its employees, subrecipients, and contractors to adopt and enforce policies

that ban text messaging while driving, and recipient should establish workplace safety 

policies to decrease accidents caused by distracted drivers.
February 2022 | Page 45

8. Minority Serving Institutions (MSIs) Initiative

Pursuant to EOs 13555 and13270, as amended, Treasury is strongly committed to

broadening the participation of MSIs in its financial assistance programs. Treasury’s goals

include achieving full participation of MSIs in order to advance the development of human

potential, strengthen the nation’s capacity to provide high-quality education, and increase

opportunities for MSIs to participate in and benefit from federal financial assistance

programs. Treasury encourages recipients to include meaningful participation of MSIs.

Institutions eligible to be considered MSIs are listed on the Department of Education

website at http://www2.ed.gov/about/offices/list/ocr/edlite-minorityinst.html.

9. Research Misconduct

Treasury adopts, and applies to Awards for research, the Federal Policy on Research

Misconduct (Federal Policy) issued by the EO of the President’s Office of Science and

Technology Policy on December 6, 2000 (65 Fed. Reg. 76260 (2000)). As provided for in

the Federal Policy, research misconduct refers to the fabrication, falsification, or plagiarism

in proposing, performing, or reviewing research, or in reporting research results. Research

misconduct does not include honest errors or differences of opinion. Recipients that

conduct research funded by Treasury must foster an atmosphere conducive to the

responsible conduct of sponsored research by safeguarding against and resolving

allegations of research misconduct. Recipients also have the primary responsibility to

prevent, detect, and investigate allegations of research misconduct and, for this purpose,

may rely on their internal policies and procedures, as appropriate, to do so. Award funds

expended on an activity that is determined to be invalid or unreliable because of research

misconduct may result in appropriate enforcement action under the Award, up to and

including Award termination and possible suspension or debarment. Treasury requires that

any allegation that contains sufficient information to proceed with an inquiry be submitted to

Treasury, which will also notify the Treasury Office of Inspector General of such allegation.

Once the recipient has investigated the allegation, it will submit its findings to Treasury.

Treasury may accept the recipient’s findings or proceed with its own investigation; Treasury

shall inform the recipient of the Treasury’s final determination.

10. Care and Use of Live Vertebrate Animals

Recipients must comply with the Laboratory Animal Welfare Act of 1966 (Public Law 89-

544), as amended, (7 U.S.C. § 2131 et seq.) (animal acquisition, transport, care, handling,

and use in projects), and implementing regulations, 9 C.F.R. Parts 1, 2, and 3; the

Endangered Species Act, as amended, (16 U.S.C. § 1531 et seq.); Marine Mammal

Protection Act, as amended, (16 U.S.C. § 1361 et seq.) (taking possession, transport,

purchase, sale, export or import of wildlife and plants); the Nonindigenous Aquatic

Nuisance Prevention and Control Act, as amended, (16 U.S.C. § 4701 et seq.) (ensure

preventive measures are taken or that probable harm of using species is minimal if there is

an escape or release); and all other applicable statutes pertaining to the care, handling,

and treatment of warm blooded animals held for research, teaching, or other activities

supported by federal financial assistance.

11. The Trafficking Victims Protection Act of 2000, as amended, (22 U.S.C. § 7104(g)), and 

the implementing regulations at 2 C.F.R. Part 175

The Trafficking Victims Protection Act of 2000 authorizes termination of financial

assistance provided to a private entity, as defined in 2 C.F.R. §175.25(d), without penalty

to the federal government, if the recipient or subrecipient engages in certain activities

related to trafficking in persons.

a. Provisions applicable to a recipient that is a private entity:

i. You as the recipient, your employees, subrecipients under this Award,
February 2022 | Page 46

and subrecipients' employees may not—

a) Engage in severe forms of trafficking in persons during the period of

time that this Award is in effect;

b) Procure a commercial sex act during the period of time that this

Award is in effect; or

c) Use forced labor in the performance of this Award or subawards

under this Award.

ii. We as the federal awarding agency may unilaterally terminate this

Award, without penalty, if you or a subrecipient that is a private entity —

a) Is determined to have violated a prohibition in paragraph a.1 of this

Section V.10; or

b) Has an employee who is determined by the agency official

authorized to terminate this Award to have violated a prohibition in

paragraph a.1 of this Section V.10 through conduct that is either—

1) Associated with performance under this Award; or

2) Imputed to you or the subrecipient using the standards and

due process for imputing the conduct of an individual to an

organization that are provided in 2 C.F.R. Part 180, “OMB

Guidelines to Agencies on Governmentwide Debarment and

Suspension (Nonprocurement),” as implemented by our

agency at 31 C.F.R. Part 19.

b. Provision applicable to a recipient other than a private entity. We as the federal

awarding agency may unilaterally terminate this Award, without penalty, if a

subrecipient that is a private entity—

i. Is determined to have violated an applicable prohibition in paragraph a.1

of this Section V.10; or

ii. Has an employee who is determined by the agency official authorized to

terminate this Award to have violated an applicable prohibition in

paragraph (a) of this Section through conduct that is either:

a) Associated with performance under this Award; or

b) Imputed to the subrecipient using the standards and due process for

imputing the conduct of an individual to an organization that are

provided in 2 C.F.R. Part 180, “OMB Guidelines to Agencies on

Governmentwide Debarment and Suspension (Nonprocurement),” as

implemented by our agency at 31 C.F.R. Part 19.

c. Provisions applicable to any recipient:

i. You must inform us immediately of any information you receive from

any source alleging a violation of a prohibition of this section.

ii. Our right to terminate unilaterally that is described in paragraph a.2 or b

of this section:

a) Implements section 106(g) of the Trafficking Victims Protection Act

of 2000 (TVPA), as amended (22 U.S.C. § 7104(g)), and

b) Is in addition to all other remedies for noncompliance that are available

to us under this Award.

iii. You must include the requirements of this section in any subaward you
February 2022 | Page 47

make to a private entity.

d. Definitions. For purposes of this award term:

i. “Employee” means either:

a) An individual employed by you or a subrecipient who is engaged in

the performance of the project or program under this Award; or

b) Another person engaged in the performance of the project or program

under this Award and not compensated by you including, but not

limited to, a volunteer or individual whose services are contributed by

a third party as an in-kind contribution toward cost sharing or

matching requirements.

ii. “Forced labor” means labor obtained by any of the following methods: the

recruitment, harboring, transportation, provision, or obtaining of a person

for labor or services, through the use of force, fraud, or coercion for the

purpose of subjection to involuntary servitude, peonage, debt bondage, or

slavery.

iii. “Private entity”:

a) Means any entity other than a state, local government, Indian tribe,

or foreign public entity, as those terms are defined in 2 C.F.R. §

175.25.

b) Includes:

1) A nonprofit organization, including any nonprofit institution

of higher education, hospital, or tribal organization other

than one included in the definition of Indian tribe at 2

C.F.R. § 175.25(b); or

2) A for-profit organization.

iv. “Severe forms of trafficking in persons,” “commercial sex act,” and “coercion”

have the meanings given at § 103 of the TVPA, as amended (22 U.S.C. §

7102).

12. Publications and Signage

Any publications (written, curricula, visual, sound, reports, or websites) except scientific 

articles or papers appearing in scientific, technical, or professional journals or signage 

produced with funds from this Award, which informs the public about the activities funded in 

whole or in part by this Award, must clearly display the following language: 

Publications:

“This project was funded in whole or in part by grant [number] awarded by the U.S. 

Department of the Treasury under the RESTORE Act [Direct Component or Centers of 

Excellence Research Grants] program. The opinions, statements, findings, conclusions, and 

recommendations contained herein are those of the author(s) or contributor(s) and do not 

necessarily represent the official position, views, or policies of the U.S. Department of the 

Treasury. References to specific individuals, agencies, companies, products, or services 

should not be considered an endorsement by the author(s), contributor(s), or the U.S. 

Department of the Treasury.” 

Signage:

“This project was funded by a grant from the U.S. Department of the Treasury under the 
February 2022 | Page 48

RESTORE Act [Direct Component or Centers of Excellence Research Grants] Program.”

13. Copyright

If applicable, Recipient may copyright any work that is subject to copyright and was 

developed, or for which ownership was acquired, under this award in accordance with 2 

C.F.R. § 200.315(b). The U.S. Department of the Treasury reserves a royalty-free, 

nonexclusive, and irrevocable license to reproduce, publish, or otherwise use the work, in 

whole or in part (including create derivative works), for Federal Government purposes, and to

authorize others to do so. Treasury also reserves the right, at its discretion, not to publish

deliverables and other materials developed under this award as a Treasury resource.

Products and deliverables developed with award funds and published as a U.S. Department 

of the Treasury resource will contain the following copyright notice:

“This resource was developed under a federal award and may be subject to copyright. The 

U.S. Department of the Treasury reserves a royalty-free, nonexclusive, and irrevocable 

license to reproduce, publish, or otherwise use the work for Federal Government purposes 

and to authorize others to do so. This resource may be freely distributed and used for 

noncommercial and educational purposes only.”

14. Homeland Security Presidential Directive 12

If the performance of this Award requires the recipient’s personnel to have routine access

to Treasury-controlled facilities and/or Treasury-controlled information systems (for

purpose of this term “routine access” is defined as more than 180 days), such personnel

must undergo the personal identity verification credential process. In the case of foreign

nationals, Treasury will conduct a check with U.S. Citizenship and Immigration Services’

(USCIS) Verification Division, a component of the Department of Homeland Security

(DHS), to ensure the individual is in a lawful immigration status and that he or she is

eligible for employment within the United States. Any items or services delivered under

this Award must comply with Treasury personal identity verification procedures that

implement Homeland Security Presidential Directive 12, “Policy for a Common

Identification Standard for Federal Employees and Contractors”, FIPS PUB 201, as

amended, and OMB Memorandum M-05-24, as amended. The recipient must ensure that

its subrecipients and contractors (at all tiers) performing work under this Award comply

with the requirements contained in this section. Treasury may delay final payment under

this Award if the subrecipient or contractor fails to comply with the requirements listed in

this section. The recipient must insert the following term in all subawards and contracts

when the subrecipient or contractor is required to have routine physical access to a

Treasury-controlled facility or routine access to a Treasury-controlled information system:

a. The subrecipient or contractor must comply with Treasury personal identity

verification procedures identified in the subaward or contract that implement

Homeland Security Presidential Directive 12 (HSPD-12), Office of Management

and Budget (OMB) Guidance M-05-24, as amended, and Federal Information

Processing Standards Publication, FIPS PUB 140-2, as amended, for all

employees under this subaward or contract who require routine physical access

to a federally controlled facility or routine access to a federally controlled

information system.

b. The subrecipient or contractor must account for all forms of government-provided

identification issued to the subrecipient or contractor employees in connection with

performance under this subaward or contract. The subrecipient or contractor must 

return such identification to the issuing agency at the earliest of any of the 

following, unless otherwise determined by Treasury:

i. When no longer needed for subaward or contract performance;
February 2022 | Page 49

ii. Upon completion of the subrecipient or contractor employee’s

employment; or

iii. Upon subaward or contract completion or termination.

15. Export Control

a. This clause applies to the extent that this Award involves access to exportcontrolled items.

b. In performing this financial assistance Award, the recipient may gain access to

items subject to export control (export-controlled items) under the Export

Administration Regulations (EAR) issued by the Department of Commerce (DOC).

The recipient is responsible for compliance with all applicable laws and regulations

regarding export-controlled items, including the EAR’s deemed exports and reexports provisions. The recipient shall establish and maintain effective export

compliance procedures throughout performance of the Award. At a minimum, these

export compliance procedures must include adequate controls of physical, verbal,

visual, and electronic access to export-controlled items, including by foreign

nationals.

c. Definitions:

i. Export-controlled items. Items (commodities, software, or technology),

that are subject to the EAR (15 C.F.R. §§ 730–774), implemented by the

DOC’s Bureau of Industry and Security. These are generally known as

“dual-use” items, items with a military and commercial application.

ii. Deemed Export/Re-export. The EAR defines a deemed export as a

release of export-controlled items (specifically, technology or source code)

to a foreign national in the U.S. Such release is “deemed” to be an export

to the home country of the foreign national. 15 C.F.R. § 734.2(b)(2)(ii). A

release may take the form of visual inspection, oral exchange of

information, or the application abroad of knowledge or technical experience

acquired in the United States. If such a release occurs abroad, it is

considered a deemed re-export to the foreign national’s home country.

Licenses from DOC may be required for deemed exports or re-exports.

d. The recipient shall control access to all export-controlled items that it 

possesses or that comes into its possession in performance of this Award, to 

ensure that access to, or release of, such items are restricted, or licensed, as 

required by applicable federal statutes, EOs, and/or regulations, including the 

EAR.

e. To the extent the recipient wishes to provide foreign nationals with access to

export-controlled items, the recipient shall be responsible for obtaining any

necessary licenses, including licenses required under the EAR for deemed

exports or deemed re-exports.

f. Nothing in the terms of this Award is intended to change, supersede, or waive the

requirements of applicable federal statutes, EOs, and/or regulations.

g. Compliance with this section will not satisfy any legal obligations the recipient

may have regarding items that may be subject to export controls administered by

other agencies such as the Department of State, which has jurisdiction over

exports of munitions items subject to the International Traffic in Arms Regulations

(ITAR) (22 C.F.R. §§ 120–130), including releases of such items to foreign

nationals.

h. The recipient shall include this clause, including this paragraph (i), in all lower-tier
February 2022 | Page 50

transactions (subawards, contracts, and subcontracts) under this Award that may

involve access to export-controlled items.
February 2022 | Page 51

APPENDIX I: 2 C.F.R. PART 170, APPENDIX A

I. Reporting Subawards and Executive Compensation 

a. Reporting of first-tier subawards. 

1. Applicability. Unless you are exempt as provided in paragraph d. of this award term, you must report 

each action that equals or exceeds $30,000 in Federal funds for a subaward to a non-Federal entity or 

Federal agency (see definitions in paragraph e. of this award term). 

2. Where and when to report. 

i. The non-Federal entity or Federal agency must report each obligating action described in 

paragraph a.1. of this award term to http://www.fsrs.gov. 

ii. For subaward information, report no later than the end of the month following the month in which 

the obligation was made. (For example, if the obligation was made on November 7, 2010, the 

obligation must be reported by no later than December 31, 2010.)

3. What to report. You must report the information about each obligating action that the submission 

instructions posted at http://www.fsrs.gov specify. 

b. Reporting total compensation of recipient executives for non-Federal entities. 

1. Applicability and what to report. You must report total compensation for each of your five most highly 

compensated executives for the preceding completed fiscal year, if -

i. The total Federal funding authorized to date under this Federal award equals or exceeds $30,000 

as defined in 2 CFR 170.320; 

ii. in the preceding fiscal year, you received -

(A) 80 percent or more of your annual gross revenues from Federal procurement contracts (and 

subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 

CFR 170.320 (and subawards), and 

(B) $25,000,000 or more in annual gross revenues from Federal procurement contracts (and 

subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 

CFR 170.320 (and subawards); and, 

iii. The public does not have access to information about the compensation of the executives through 

periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 

78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To determine if the public 

has access to the compensation information, see the U.S. Security and Exchange Commission total 

compensation filings at http://www.sec.gov/answers/execomp.htm.) 

2. Where and when to report. You must report executive total compensation described in paragraph b.1. 

of this award term: 

i. As part of your registration profile at https://www.sam.gov. 

ii. By the end of the month following the month in which this award is made, and annually thereafter. 

c. Reporting of Total Compensation of Subrecipient Executives. 

1. Applicability and what to report. Unless you are exempt as provided in paragraph d. of this award term, 

for each first-tier non-Federal entity subrecipient under this award, you shall report the names and total 

compensation of each of the subrecipient's five most highly compensated executives for the 

subrecipient's preceding completed fiscal year, if -

i. in the subrecipient's preceding fiscal year, the subrecipient received -

(A) 80 percent or more of its annual gross revenues from Federal procurement contracts (and 

subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 

CFR 170.320 (and subawards) and, 

(B) $25,000,000 or more in annual gross revenues from Federal procurement contracts (and 

subcontracts), and Federal financial assistance subject to the Transparency Act (and 
February 2022 | Page 52

subawards); and 

ii. The public does not have access to information about the compensation of the executives through 

periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 

78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To determine if the public 

has access to the compensation information, see the U.S. Security and Exchange Commission total 

compensation filings at http://www.sec.gov/answers/execomp.htm.) 

2. Where and when to report. You must report subrecipient executive total compensation described in 

paragraph c.1. of this award term: 

i. To the recipient. 

ii. By the end of the month following the month during which you make the subaward. For example, if 

a subaward is obligated on any date during the month of October of a given year (i.e., between 

October 1 and 31), you must report any required compensation information of the subrecipient by 

November 30 of that year. 

d. Exemptions. 

If, in the previous tax year, you had gross income, from all sources, under $300,000, you are exempt 

from the requirements to report: 

i. Subawards, and 

ii. The total compensation of the five most highly compensated executives of any subrecipient. 

e. Definitions. For purposes of this award term: 

1. Federal Agency means a Federal agency as defined at 5 U.S.C. 551(1) and further clarified by 5 

U.S.C. 552(f). 

2. Non-Federal entity means all of the following, as defined in 2 CFR part 25: 

i. A Governmental organization, which is a State, local government, or Indian tribe; 

ii. A foreign public entity; 

iii. A domestic or foreign nonprofit organization; and, 

iv. A domestic or foreign for-profit organization 

3. Executive means officers, managing partners, or any other employees in management positions. 

4. Subaward: 

i. This term means a legal instrument to provide support for the performance of any portion of the 

substantive project or program for which you received this award and that you as the recipient award 

to an eligible subrecipient. 

ii. The term does not include your procurement of property and services needed to carry out the 

project or program (for further explanation, see 2 CFR 200.331). 

iii. A subaward may be provided through any legal agreement, including an agreement that you or a 

subrecipient considers a contract. 

5. Subrecipient means a non-Federal entity or Federal agency that: 

i. Receives a subaward from you (the recipient) under this award; and 

ii. Is accountable to you for the use of the Federal funds provided by the subaward. 

6. Total compensation means the cash and noncash dollar value earned by the executive during the 

recipient's or subrecipient's preceding fiscal year and includes the following (for more information see 17 

CFR 229.402(c)(2)).
February 2022 | Page 53

APPENDIX II: 2 C.F.R. PART 25, APPENDIX A

A. Requirement for System for Award Management

Unless you are exempted from this requirement under 2 CFR 25.110, you as the recipient must maintain 

current information in the SAM. This includes information on your immediate and highest level owner and 

subsidiaries, as well as on all of your predecessors that have been awarded a Federal contract or Federal 

financial assistance within the last three years, if applicable, until you submit the final financial report required 

under this Federal award or receive the final payment, whichever is later. This requires that you review and 

update the information at least annually after the initial registration, and more frequently if required by 

changes in your information or another Federal award term.

B. Requirement for Unique Entity Identifier

If you are authorized to make subawards under this Federal award, you:

1. Must notify potential subrecipients that no entity (see definition in paragraph C of this award term) may 

receive a subaward from you until the entity has provided its Unique Entity Identifier to you.

2. May not make a subaward to an entity unless the entity has provided its Unique Entity Identifier to you. 

Subrecipients are not required to obtain an active SAM registration, but must obtain a Unique Entity 

Identifier.

C. Definitions

For purposes of this term:

1. System for Award Management (SAM) means the Federal repository into which a recipient must 

provide information required for the conduct of business as a recipient. Additional information about 

registration procedures may be found at the SAM internet site (currently at https://www.sam.gov).

2. Unique Entity Identifier means the identifier assigned by SAM to uniquely identify business entities.

3. Entity includes non-Federal entities as defined at 2 CFR 200.1 and also includes all of the following, for 

purposes of this part:

a. A foreign organization;

b. A foreign public entity;

c. A domestic for-profit organization; and

d. A Federal agency.

4. Subaward has the meaning given in 2 CFR 200.1.

5. Subrecipient has the meaning given in 2 CFR 200.1.
February 2022 | Page 54

APPENDIX III: DAVIS-BACON AND RELATED ACTS REQUIREMENTS

1. Minimum wages.

(i) All laborers and mechanics employed or working upon the site of the work (or under the United States 

Housing Act of 1937 or under the Housing Act of 1949 in the construction or development of the project), 

will be paid unconditionally and not less often than once a week, and without subsequent deduction or 

rebate on any account (except such payroll deductions as are permitted by regulations issued by the 

Secretary of Labor under the Copeland Act (29 C.F.R. part 3)), the full amount of wages and bona fide 

fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than 

those contained in the wage determination of the Secretary of Labor which is attached hereto and made 

a part hereof, regardless of any contractual relationship which may be alleged to exist between the 

contractor and such laborers and mechanics. Contributions made or costs reasonably anticipated for 

bona fide fringe benefits under section 1(b)(2) of the Davis-Bacon Act on behalf of laborers or mechanics 

are considered wages paid to such laborers or mechanics, subject to the provisions of 29 C.F.R. . §

5.5(a)(1)(iv); also, regular contributions made or costs incurred for more than a weekly period (but not less 

often than quarterly) under plans, funds, or programs which cover the particular weekly period, are 

deemed to be constructively made or incurred during such weekly period. Such laborers and mechanics 

shall be paid the appropriate wage rate and fringe benefits on the wage determination for the 

classification of work actually performed, without regard to skill, except as provided in § 5.5(a)(4). 

Laborers or mechanics performing work in more than one classification may be compensated at the rate 

specified for each classification for the time actually worked therein: Provided, That the employer's 

payroll records accurately set forth the time spent in each classification in which work is performed. The 

wage determination (including any additional classification and wage rates conformed under paragraph 

(a)(1)(ii) of 29 C.F.R. .§ 5.1 and the Davis-Bacon poster (WH-1321) shall be posted at all times by the 

contractor and its subcontractors at the site of the work in a prominent and accessible place where it can 

be easily seen by the workers. 

(ii)

(A) The contracting officer shall require that any class of laborers or mechanics, including helpers, 

which is not listed in the wage determination and which is to be employed under the contract shall be 

classified in conformance with the wage determination. The contracting officer shall approve an 

additional classification and wage rate and fringe benefits therefore only when the following criteria 

have been met: 

(1) The work to be performed by the classification requested is not performed by a classification 

in the wage determination; and 

(2) The classification is utilized in the area by the construction industry; and 

(3) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable 

relationship to the wage rates contained in the wage determination. 

(B) If the contractor and the laborers and mechanics to be employed in the classification (if known), 

or their representatives, and the contracting officer agree on the classification and wage rate 

(including the amount designated for fringe benefits where appropriate), a report of the action taken 

shall be sent by the contracting officer to the Administrator of the Wage and Hour Division, U.S. 

Department of Labor, Washington, DC 20210. The Administrator, or an authorized representative, 

will approve, modify, or disapprove every additional classification action within 30 days of receipt and 

so advise the contracting officer or will notify the contracting officer within the 30-day period that 

additional time is necessary. 

(C) In the event the contractor, the laborers or mechanics to be employed in the classification or their 

representatives, and the contracting officer do not agree on the proposed classification and wage 

rate (including the amount designated for fringe benefits, where appropriate), the contracting officer 

shall refer the questions, including the views of all interested parties and the recommendation of the 
February 2022 | Page 55

contracting officer, to the Administrator for determination. The Administrator, or an authorized 

representative, will issue a determination within 30 days of receipt and so advise the contracting 

officer or will notify the contracting officer within the 30-day period that additional time is necessary. 

(D) The wage rate (including fringe benefits where appropriate) determined pursuant to paragraphs 

(a)(1)(ii) (B) or (C) of 29 C.F.R. . § 5.5, shall be paid to all workers performing work in the 

classification under this contract from the first day on which work is performed in the classification. 

(iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics 

includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either pay the 

benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash 

equivalent thereof. 

(iv) If the contractor does not make payments to a trustee or other third person, the contractor may 

consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated 

in providing bona fide fringe benefits under a plan or program, Provided, That the Secretary of Labor has 

found, upon the written request of the contractor, that the applicable standards of the Davis-Bacon Act 

have been met. The Secretary of Labor may require the contractor to set aside in a separate account 

assets for the meeting of obligations under the plan or program. 

2. Withholding.

The Department of Treasury or recipient shall upon its own action or upon written request of an authorized 

representative of the Department of Labor withhold or cause to be withheld from the contractor under this 

contract or any other Federal contract with the same prime contractor, or any other federally-assisted 

contract subject to Davis-Bacon prevailing wage requirements, which is held by the same prime contractor, 

so much of the accrued payments or advances as may be considered necessary to pay laborers and 

mechanics, including apprentices, trainees, and helpers, employed by the contractor or any subcontractor the 

full amount of wages required by the contract. In the event of failure to pay any laborer or mechanic, including 

any apprentice, trainee, or helper, employed or working on the site of the work (or under the United States 

Housing Act of 1937 or under the Housing Act of 1949 in the construction or development of the project), all 

or part of the wages required by the contract, Treasury or the recipient may, after written notice to the 

contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of 

any further payment, advance, or guarantee of funds until such violations have ceased. 

3. Payrolls and basic records.

(i) Payrolls and basic records relating thereto shall be maintained by the contractor during the course of 

the work and preserved for a period of three years thereafter for all laborers and mechanics working at 

the site of the work (or under the United States Housing Act of 1937, or under the Housing Act of 1949, in 

the construction or development of the project). Such records shall contain the name, address, and social 

security number of each such worker, his or her correct classification, hourly rates of wages paid 

(including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents 

thereof of the types described in section 1(b)(2)(B) of the Davis-Bacon Act), daily and weekly number of 

hours worked, deductions made and actual wages paid. Whenever the Secretary of Labor has found 

under 29 C.F.R. 5.5(a)(1)(iv) that the wages of any laborer or mechanic include the amount of any costs 

reasonably anticipated in providing benefits under a plan or program described in section 1(b)(2)(B) of 

the Davis-Bacon Act, the contractor shall maintain records which show that the commitment to provide 

such benefits is enforceable, that the plan or program is financially responsible, and that the plan or 

program has been communicated in writing to the laborers or mechanics affected, and records which 

show the costs anticipated or the actual cost incurred in providing such benefits. Contractors employing 

apprentices or trainees under approved programs shall maintain written evidence of the registration of 

apprenticeship programs and certification of trainee programs, the registration of the apprentices and 

trainees, and the ratios and wage rates prescribed in the applicable programs. 

(ii)

(A) The contractor shall submit weekly for each week in which any contract work is performed a copy 
February 2022 | Page 56

of all payrolls to the recipient. The payrolls submitted shall set out accurately and completely all of 

the information required to be maintained under 29 C.F.R. 5.5(a)(3)(i), except that full social security 

numbers and home addresses shall not be included on weekly transmittals. Instead the payrolls shall 

only need to include an individually identifying number for each employee (e.g., the last four digits of 

the employee's social security number). The required weekly payroll information may be submitted in 

any form desired. Optional Form WH-347 is available for this purpose from the Wage and Hour 

Division Web site at https://www.dol.gov/agencies/whd/government-contracts/construction/payrollcertification or its successor site. The prime contractor is responsible for the submission of copies of 

payrolls by all subcontractors. Contractors and subcontractors shall maintain the full social security 

number and current address of each covered worker, and shall provide them upon request to the 

recipient, the contractor, or the Wage and Hour Division of the Department of Labor for purposes of 

an investigation or audit of compliance with prevailing wage requirements. It is not a violation of 29 

C.F.R. § 5.5 for a prime contractor to require a subcontractor to provide addresses and social security 

numbers to the prime contractor for its own records, without weekly submission to the sponsoring 

government agency (or the applicant, sponsor, or owner). 

(B) Each payroll submitted shall be accompanied by a “Statement of Compliance,” signed by the 

contractor or subcontractor or his or her agent who pays or supervises the payment of the persons 

employed under the contract and shall certify the following: 

(1) That the payroll for the payroll period contains the information required to be provided under § 

5.5 (a)(3)(ii) of Regulations, 29 C.F.R. part 5, the appropriate information is being maintained 

under § 5.5 (a)(3)(i) of Regulations, 29 C.F.R. part 5, and that such information is correct and 

complete; 

(2) That each laborer or mechanic (including each helper, apprentice, and trainee) employed on 

the contract during the payroll period has been paid the full weekly wages earned, without 

rebate, either directly or indirectly, and that no deductions have been made either directly or 

indirectly from the full wages earned, other than permissible deductions as set forth in 

Regulations, 29 C.F.R. part 3; 

(3) That each laborer or mechanic has been paid not less than the applicable wage rates and 

fringe benefits or cash equivalents for the classification of work performed, as specified in the 

applicable wage determination incorporated into the contract. 

(C) The weekly submission of a properly executed certification set forth on the reverse side of 

Optional Form WH-347 shall satisfy the requirement for submission of the “Statement of Compliance” 

required by paragraph (a)(3)(ii)(B) of this 29 C.F.R. . § 5.5. 

(D) The falsification of any of the above certifications may subject the contractor or subcontractor to 

civil or criminal prosecution under section 1001 of title 18 and section 231 of title 31 of the United 

States Code. 

(iii) The contractor or subcontractor shall make the records required under paragraph (a)(3)(i) of 29 

C.F.R. § 5.5 available for inspection, copying, or transcription by authorized representatives of the 

recipient, Department of Treasury, or the Department of Labor, and shall permit such representatives to 

interview employees during working hours on the job. If the contractor or subcontractor fails to submit the 

required records or to make them available, the Federal agency may, after written notice to the 

contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension 

of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the required 

records upon request or to make such records available may be grounds for debarment action pursuant 

to 29 C.F.R. 5.12. 

4. Apprentices and trainees -

(i) Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the work 

they performed when they are employed pursuant to and individually registered in a bona fide 

apprenticeship program registered with the U.S. Department of Labor, Employment and Training 
February 2022 | Page 57

Administration, Office of Apprenticeship Training, Employer and Labor Services, or with a State 

Apprenticeship Agency recognized by the Office, or if a person is employed in his or her first 90 days of 

probationary employment as an apprentice in such an apprenticeship program, who is not individually 

registered in the program, but who has been certified by the Office of Apprenticeship Training, Employer 

and Labor Services or a State Apprenticeship Agency (where appropriate) to be eligible for probationary 

employment as an apprentice. The allowable ratio of apprentices to journeymen on the job site in any 

craft classification shall not be greater than the ratio permitted to the contractor as to the entire work force 

under the registered program. Any worker listed on a payroll at an apprentice wage rate, who is not 

registered or otherwise employed as stated above, shall be paid not less than the applicable wage rate 

on the wage determination for the classification of work actually performed. In addition, any apprentice 

performing work on the job site in excess of the ratio permitted under the registered program shall be 

paid not less than the applicable wage rate on the wage determination for the work actually performed. 

Where a contractor is performing construction on a project in a locality other than that in which its 

program is registered, the ratios and wage rates (expressed in percentages of the journeyman's hourly 

rate) specified in the contractor's or subcontractor's registered program shall be observed. Every 

apprentice must be paid at not less than the rate specified in the registered program for the apprentice's 

level of progress, expressed as a percentage of the journeymen hourly rate specified in the applicable 

wage determination. Apprentices shall be paid fringe benefits in accordance with the provisions of the 

apprenticeship program. If the apprenticeship program does not specify fringe benefits, apprentices must 

be paid the full amount of fringe benefits listed on the wage determination for the applicable classification. 

If the Administrator determines that a different practice prevails for the applicable apprentice 

classification, fringes shall be paid in accordance with that determination. In the event the Office of 

Apprenticeship Training, Employer and Labor Services, or a State Apprenticeship Agency recognized by 

the Office, withdraws approval of an apprenticeship program, the contractor will no longer be permitted to 

utilize apprentices at less than the applicable predetermined rate for the work performed until an 

acceptable program is approved. 

(ii) Trainees. Except as provided in 29 C.F.R. 5.16, trainees will not be permitted to work at less than the 

predetermined rate for the work performed unless they are employed pursuant to and individually 

registered in a program which has received prior approval, evidenced by formal certification by the U.S. 

Department of Labor, Employment and Training Administration. The ratio of trainees to journeymen on 

the job site shall not be greater than permitted under the plan approved by the Employment and Training 

Administration. Every trainee must be paid at not less than the rate specified in the approved program for 

the trainee's level of progress, expressed as a percentage of the journeyman hourly rate specified in the 

applicable wage determination. Trainees shall be paid fringe benefits in accordance with the provisions of 

the trainee program. If the trainee program does not mention fringe benefits, trainees shall be paid the full 

amount of fringe benefits listed on the wage determination unless the Administrator of the Wage and 

Hour Division determines that there is an apprenticeship program associated with the corresponding 

journeyman wage rate on the wage determination which provides for less than full fringe benefits for 

apprentices. Any employee listed on the payroll at a trainee rate who is not registered and participating in 

a training plan approved by the Employment and Training Administration shall be paid not less than the 

applicable wage rate on the wage determination for the classification of work actually performed. In 

addition, any trainee performing work on the job site in excess of the ratio permitted under the registered 

program shall be paid not less than the applicable wage rate on the wage determination for the work 

actually performed. In the event the Employment and Training Administration withdraws approval of a 

training program, the contractor will no longer be permitted to utilize trainees at less than the applicable 

predetermined rate for the work performed until an acceptable program is approved. 

(iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this 

part shall be in conformity with the equal employment opportunity requirements of Executive Order 

11246, as amended, and 29 C.F.R. part 30. 

5. Compliance with Copeland Act requirements. The contractor shall comply with the requirements of 29 

C.F.R. part 3, which are incorporated by reference in this contract. 

6. Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses contained in 29 
February 2022 | Page 58

C.F.R. 5.5(a)(1) through (10), and also a clause requiring the subcontractors to include these clauses in any 

lower-tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or 

lower-tier subcontractor with all the contract clauses in 29 C.F.R. 5.5. 

7. Contract termination: debarment. A breach of the contract clauses in 29 C.F.R. 5.5 may be grounds for 

termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29 C.F.R. 

5.12. 

8. Compliance with Davis-Bacon and Related Act requirements. All rulings and interpretations of the DavisBacon and Related Acts contained in 29 C.F.R. parts 1, 3, and 5 are herein incorporated by reference in this 

contract. 

9. Disputes concerning labor standards. Disputes arising out of the labor standards provisions of this contract 

shall not be subject to the general disputes clause of this contract. Such disputes shall be resolved in 

accordance with the procedures of the Department of Labor set forth in 29 C.F.R. parts 5, 6, and 7. Disputes 

within the meaning of this clause include disputes between the contractor (or any of its subcontractors) and 

the contracting agency, the U.S. Department of Labor, or the employees or their representatives. 

10. Certification of eligibility.

(i) By entering into this contract, the contractor certifies that neither it (nor he or she) nor any person or 

firm who has an interest in the contractor's firm is a person or firm ineligible to be awarded Government 

contracts by virtue of section 3(a) of the Davis-Bacon Act or 29 C.F.R. 5.12(a)(1). 

(ii) No part of this contract shall be subcontracted to any person or firm ineligible for award of a 

Government contract by virtue of section 3(a) of the Davis-Bacon Act or 29 C.F.R. 5.12(a)(1). 

(iii) The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 U.S.C. 1001. 
February 2022 | Page 59

APPENDIX IV: CONTRACT CLAUSES REQUIRED FOR CONTRACTS SUBJECT TO THE 

REQUIREMENTS OF THE CONTRACT WORK HOURS AND SAFETY STANDARDS ACT

(1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which 

may require or involve the employment of laborers or mechanics shall require or permit any such laborer or 

mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in 

such workweek unless such laborer or mechanic receives compensation at a rate not less than one and onehalf times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 

(2) Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set 

forth in paragraph 1 of 29 C.F.R.§ 5.5(b), the contractor and any subcontractor responsible therefor shall be 

liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States 

(in the case of work done under contract for the District of Columbia or a territory, to such District or to such 

territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual 

laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in 

paragraph 1 of 29 C.F.R. § 5.5(b), in the sum of $27 for each calendar day on which such individual was 

required or permitted to work in excess of the standard workweek of forty hours without payment of the 

overtime wages required by the clause set forth in paragraph 1 of 29 C.F.R. § 5.5(b). 

(3) Withholding for unpaid wages and liquidated damages. The Department of Treasury or recipient shall 

upon its own action or upon written request of an authorized representative of the Department of Labor 

withhold or cause to be withheld, from any moneys payable on account of work performed by the contractor 

or subcontractor under any such contract or any other Federal contract with the same prime contractor, or 

any other federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is 

held by the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities 

of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set 

forth in paragraph 2 of 29 C.F.R. § 5.5(b). 

(4) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses set forth in 

paragraph 1 through 4 of 29 C.F.R. § 5.5(b) and also a clause requiring the subcontractors to include these 

clauses in any lower-tier subcontracts. The prime contractor shall be responsible for compliance by any 

subcontractor or lower-tier subcontractor with the clauses set forth in paragraph 1 through 4 of 29 C.F.R. §

5.5(b). 
February 2022 | Page 60

APPENDIX V: 41 C.F.R. § 60-1.4

During the performance of this contract, the contractor agrees as follows:

1) The contractor will not discriminate against any employee or applicant for employment because

of race, color, religion, sex, sexual orientation, gender identity, or national origin. The contractor

will take affirmative action to ensure that applicants are employed, and that employees are

treated during employment without regard to their race, color, religion, sex, sexual orientation,

gender identity, or national origin. Such action shall include, but not be limited to the following:

Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or

termination; rates of pay or other forms of compensation; and selection for training, including

apprenticeship. The contractor agrees to post in conspicuous places, available to employees and

applicants for employment, notices to be provided setting forth the provisions of this

nondiscrimination clause.

2) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the

contractor, state that all qualified applicants will receive consideration for employment without

regard to race, color, religion, sex, sexual orientation, gender identity, or national origin.

3) The contractor will not discharge or in any other manner discriminate against any employee or

applicant for employment because such employee or applicant has inquired about, discussed, or

disclosed the compensation of the employee or applicant or another employee or applicant. This

provision shall not apply to instances in which an employee who has access to the compensation

information of other employees or applicants as a part of such employee's essential job functions

discloses the compensation of such other employees or applicants to individuals who do not 

otherwise have access to such information, unless such disclosure is in response to a formal

complaint or charge, in furtherance of an investigation, proceeding, hearing, or action, including an

investigation conducted by the employer, or is consistent with the contractor's legal duty to furnish

information.

4) The contractor will send to each labor union or representative of workers with which he has a

collective bargaining agreement or other contract or understanding, a notice to be provided

advising the said labor union or workers' representatives of the contractor's commitments under

this section, and shall post copies of the notice in conspicuous places available to employees

and applicants for employment.

5) The contractor will comply with all provisions of Executive Order 11246 of September 24,

1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.

6) The contractor will furnish all information and reports required by Executive Order 11246 of

September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant

thereto, and will permit access to his books, records, and accounts by the administering agency

and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules,

regulations, and orders.

7) In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract

or with any of the said rules, regulations, or orders, this contract may be canceled, terminated, or

suspended in whole or in part and the contractor may be declared ineligible for further

Government contracts or federally assisted construction contracts in accordance with procedures

authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be

imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or

by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law.
February 2022 | Page 61

8) The contractor will include the portion of the sentence immediately preceding paragraph (1) and

the provisions of paragraphs (1) through (8) in every subcontract or purchase order unless

exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204

of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon

each subcontractor or vendor. The contractor will take such action with respect to any subcontract

or purchase order as the administering agency may direct as a means of enforcing such

provisions, including sanctions for noncompliance:

Provided, however, that in the event a contractor becomes involved in, or is threatened with, litigation

with a subcontractor or vendor as a result of such direction by the administering agency, the contractor

may request the United States to enter into such litigation to protect the interests of the United States.

The [recipient] further agrees that it will be bound by the above equal opportunity clause with respect to its

own employment practices when it participates in federally assisted construction work: Provided, That if the

[recipient] so participating is a State or local government, the above equal opportunity clause is not

applicable to any agency, instrumentality or subdivision of such government which does not participate in

work on or under the contract.

The [recipient] agrees that it will assist and cooperate actively with the administering agency and the

Secretary of Labor in obtaining the compliance of contractors and subcontractors with the equal opportunity

clause and the rules, regulations, and relevant orders of the Secretary of Labor, that it will furnish the 

administering agency and the Secretary of Labor such information as they may require for the supervision of

such compliance, and that it will otherwise assist the administering agency in the discharge of the agency's

primary responsibility for securing compliance.

The [recipient] further agrees that it will refrain from entering into any contract or contract modification

subject to Executive Order 11246 of September 24, 1965, with a contractor debarred from, or who has not

demonstrated eligibility for, Government contracts and federally assisted construction contracts pursuant to

the Executive Order and will carry out such sanctions and penalties for violation of the equal opportunity

clause as may be imposed upon contractors and subcontractors by the administering agency or the

Secretary of Labor pursuant to Part II, Subpart D of the Executive Order. In addition, the [recipient] agrees

that if it fails or refuses to comply with these undertakings, the administering agency may take any or all of

the following actions: Cancel, terminate, or suspend in whole or in part this grant (contract, loan, insurance,

guarantee); refrain from extending any further assistance to the applicant under the program with respect to

which the failure or refund occurred until satisfactory assurance of future compliance has been received

from such applicant; and refer the case to the Department of Justice for appropriate legal proceedings.