Appalachian Regional Commission

Program Operations Division

1666 Connecticut Ave, NW Phone 202-884-7750

Washington, DC 20009 Fax 202-884-7682

Project Name: ________________________________________________________________________________

State: ___________________________ Federal Agency:_____________________________________

The Following Conditions Apply to all ARC Projects

Deadline:

Davis Bacon Wages:

ARC Underrun Policy:

Additional Funds 

Added to the Project 

After ARC Approval:

Changes in Scope:

Close Working 

Relationship With 

Basic Federal Agency:

Restrictions on

Assistance:

Cornerstone or 

Plaque:

The Commission may revoke or revise its approval of any project if work intended to be assisted is not underway 

within 18 months after the date of approval of such project.

Davis Bacon wage rates (as determined by the Department of Labor for your respective area) must be paid for 

all construction projects in accordance with Section 402 of the Appalachian Regional Development Act of 1965, 

as amended.

Each disbursement of funds for a project receiving assistance from more than one Federal source will be

deemed to be a proportional disbursement from each source. In the event of an underrun, the ARC will be 

entitled to recover its proportionate share of the underrun.

It is understood that if the applicant receives additional funding from any new source towards the eligible cost of 

this project after the ARC approval, these funding sources should not be used to reduce the amount of local 

funds pledged. If new funds are made available to this project, the ARC and the Basic Federal Agency, if any, 

should be notified immediately. ARC reserves the right to reconsider the level of its funding approval in such an 

eventuality.

It is understood that a change-in-scope may not be implemented without prior written approval from the ARC 

and the Basic Federal Agency, if any. A change of scope is any major change to the project design, the type of 

project to be completed, capacity of the system, size of project, the number and/or type of customers served or 

equipment items purchased.

It is understood that the applicant must work closely with the Basic Federal Agency identified in the ARC

application, if any, and follow bidding and contract award procedures to insure that all pertinent Federal laws 

are complied with. Coordination with the Federal agency begins with filing an application with the basic

Federal agency.

ARC funds shall not be used for: a. any form of assistance to relocating industries; b. recruitment activities 

that place a state in competition with other state or states; and c. projects that promote unfair competition 

between businesses within the same immediate service area.

Any facility constructed in whole or in part by funds provided under the ARDA shall include a cornerstone, or 

plaque appropriately acknowledging the assistance provided through the ARC program, provided that such an 

item not be required if it would be prohibited as an eligible project cost under the basic federal program through 

which the ARDA assistance is provided.

____________________________________ __________________________________

Applicant/Authorized Representative Date

Memorandum of Understanding For ARC Projects