DEPARTMENT OF COMMERCE 

FINANCIAL ASSISTANCE 

STANDARD TERMS AND CONDITIONS 

March 2008 
DEPARTMENT OF COMMERCE 

FINANCIAL ASSISTANCE 

STANDARD TERMS AND CONDITIONS 

PREFACE....................................................................................................................................... 1 

A. FINANCIAL REQUIREMENTS........................................................................................... 1 

.01 Financial Reports............................................................................................................ 1 

.02 Award Payments............................................................................................................. 1 

.03 Federal and Non-Federal Sharing ................................................................................... 2 

.04 Budget Changes and Transfer of Funds Among Categories........................................... 3 

.05 Indirect Costs.................................................................................................................. 3 

.06 Incurring Costs of Obligating Federal Funds Beyond the Expiration Date.................... 5 

.07 Tax Refunds.................................................................................................................... 6 

B. PROGRAMMATIC REQUIREMENTS................................................................................ 6 

.01 Performance (Technical) Reports................................................................................... 6 

.02 Unsatisfactory Performance............................................................................................ 6 

.03 Programmatic Changes................................................................................................... 7 

.04 Other Federal Awards with Similar Programmatic Activities........................................ 7 

.05 Non-Compliance With Award Provisions...................................................................... 7 

.06 Prohibition Against Assignment by the Recipient.......................................................... 7 

.07 Disclaimer Provisions..................................................................................................... 7 

C. NON-DISCRIMINATION REQUIRMENTS........................................................................ 8 

.01 Statutory Provisions........................................................................................................ 8 

.02 Other Provisions.............................................................................................................. 8 

.03 Title VII Exemption for Religious Organizations .......................................................... 9 

D. AUDITS.................................................................................................................................. 9 

.01 Organization-Wide, Program-Specific, and Project Audits............................................ 9 

.02 Audit Resolution Process.............................................................................................. 10 

E. DEBTS.................................................................................................................................. 11 

.01 Payment of Debts Owed the Federal Government ....................................................... 11 

.02 Late Payment Charges.................................................................................................. 12 

.03 Barring Delinquent Federal Debtors From Obtaining Federal Loans or Loan Insurance 

Guarantees................................................................................................................................. 12 

.04 Effect of Judgment Lien On Eligibility For Federal Grants, Loans, or Programs........ 12 

F. INDIVIDUAL BACKGROUND SCREENING.................................................................. 13 

.01 Results of Individual Background Screening ............................................................... 13 

.02 Action(s) Taken as a Result of Individual Background Screening............................... 13 

G. GOVERNMENTWIDE DEBARMENT AND SUSPENSION (NONPROCUREMENT) . 14 

H. DRUG-FREE WORKPLACE.............................................................................................. 14 

I. LOBBYING RESTRICTIONS............................................................................................. 14 

.01 Statutory Provisions...................................................................................................... 14 

.02 Disclosure of Lobbying Activities................................................................................ 14 

J ..........CODES OF CONDUCT AND SUBAWARD, CONTRACT, AND SUBCONTRACT 

PROVISIONS......................................................................................................................... 15 

.01 Code of Conduct for Recipients.................................................................................... 15 

.02 Applicability of Award Provisions to Subrecipients .................................................... 15 
.03 Competition and Codes of Conduct for Subawards...................................................... 16 

.04 Applicability of Provisions to Subawards, Contracts, and Subcontracts...................... 16 

.05 Minority Owned Business Enterprise ........................................................................... 17 

.06 Subaward and/or Contract to a Federal Agency ........................................................... 18 

K. PROPERTY.......................................................................................................................... 18 

.01 Standards....................................................................................................................... 18 

.02 Real Property ................................................................................................................ 18 

L. ENVIRONMENTAL REQUIREMENTS............................................................................ 19 

.01 The National Environmental Policy Act of 1969 (42 U.S.C. §§ 4321-4327)............... 19 

.02 Floodplain Management, EO 11988 and, Protection of Wetlands, EO 11990, May 24, 

1977 ....................................................................................................................................... 19 

.03 Clean Air Act, Clean Water Act, and EO 11738 .......................................................... 20 

.04 The Flood Disaster Protection Act of 1973 (42 U.S.C. § 4002 et seq.)........................ 20 

.05 The Endangered Species Act of 1973, as amended, (16 U.S.C. § 1531 et seq.) .......... 20 

.06 The Coastal Zone Management Act, as amended, (16 U.S.C. § 1451 et seq.)............. 20 

.07 The Coastal Barriers Resources Act, (16 U.S.C. § 3501 et seq.).................................. 20 

.08 The Wild and Scenic Rivers Act, as amended (16 U.S.C. §§ 1271 et seq.) ................. 20 

.09 The Safe Drinking Water Act of 1974, as amended (42 U.S.C. §§ 300f-j).................. 21 

.10 The Resource Conservation and Recovery Act of 1976, as amended, (42 U.S.C. §§ 

6901 et seq.).............................................................................................................................. 21 

.11 The Comprehensive Environmental Response, Compensation, and Liability Act of 

1980, as amended, and the Superfund Amendments and Reauthorization Act of 1986, and the 

Community Environmental Response Facilitation Act of 1992, as amended, (42 U.S.C. §§ 

9601 et seq.).............................................................................................................................. 21 

.12 Environmental Justice in Minority Populations and Low Income Populations, EO 

12898, February 11, 1994. ........................................................................................................ 21 

M. MISCELLANEOUS REQUIREMENTS ......................................................................... 21 

.01 Criminal and Prohibited Activities............................................................................... 21 

.02 Foreign Travel............................................................................................................... 22 

.03 American-Made Equipment and Products.................................................................... 23 

.04 Intellectual Property Rights.......................................................................................... 23 

a. Inventions...................................................................................................................... 23 

1. Ownership................................................................................................................. 23 

(a) Recipient ........................................................................................................... 23 

(b) Department........................................................................................................ 23 

(c) Inventor/Employee............................................................................................ 23 

(d) Joint inventions................................................................................................. 23 

2. Responsibilities - iEdison ......................................................................................... 24 

b. Patent Notification Procedures ..................................................................................... 24 

c. Data, Databases, and Software...................................................................................... 24 

d. Copyright ...................................................................................................................... 24 

.05 Increasing Seat Belt Use in the United States............................................................... 25 

.06 Research Involving Human Subjects............................................................................ 25 

.07 Federal Employee Expenses......................................................................................... 26 

.08 Preservation of Open Competition and Government Neutrality Towards Government 

Contractors’ Labor Relations on Federal and Federally Funded Construction Projects. ......... 26 
.09 Minority Serving Institutions (MSIs) Initiative ............................................................ 26 

.10 Research Misconduct.................................................................................................... 27 

.11 Publications, Videos and Acknowledgement of Sponsorship ...................................... 27 

.12 Care and Use of Live Vertebrate Animals.................................................................... 27 

.13 Homeland Security Presidential Directive – 12............................................................ 28 

.14 Compliance with Department of Commerce Bureau of Industry and Security Export 

Administration Regulations...................................................................................................... 28 

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

and the implementing regulations at 2 CFR Part 175............................................................... 29 

.16 The Federal Funding Accountability and Transparency Act of 2006 (Pub. L. No. 

109-282).................................................................................................................................... 29 
PREFACE 

The recipient and any subrecipients must, in addition to the assurances made as part of the 

application, comply and require each of its contractors and subcontractors employed in the 

completion of the project to comply with all applicable statutes, regulations, executive orders 

(EOs), Office of Management and Budget (OMB) circulars, terms and conditions, and approved 

applications. 

This award is subject to the laws and regulations of the United States. Any inconsistency or 

conflict in terms and conditions specified in the award will be resolved according to the 

following order of precedence: public laws, regulations, applicable notices published in the 

Federal Register, EOs, OMB circulars, Department of Commerce (DOC) Financial Assistance 

Standard Terms and Conditions, agency standard award conditions (if any), and special award 

conditions. Special award conditions may amend or take precedence over DOC standard terms 

and conditions, on a case-by-case basis, when allowed by the DOC standard term and condition. 

Some of the DOC terms and conditions herein contain, by reference or substance, a summary of 

the pertinent statutes, or regulations published in the Federal Register or Code of Federal 

Regulations (CFR), EOs, OMB circulars or the assurances (Forms SF-424B, 424D). To the 

extent that it is a summary, such provision is not in derogation of, or an amendment to, any such 

statute, regulation, EO, or OMB circular. 

A. FINANCIAL REQUIREMENTS 

 .01 Financial Reports 

 a. The recipient shall submit a "Financial Status Report" (SF-269) 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. A final SF-269 shall be 

 submitted within 90 days after the expiration date of the award. 

 b. The reports must be submitted to the Grants Officer in hard copy (no more than an 

 original and two copies), or electronically when specified in the special award 

 conditions. 

 .02 Award Payments 

 a. The advance method of payment shall be authorized unless otherwise specified in a 

 special award condition. The Grants Officer determines the appropriate method of 

 payment. Payments will be made through electronic funds transfers directly to the 

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 recipient’s bank account and in accordance with the requirements of the Debt 

 Collection Improvement Act of 1996 and the Cash Management Improvement Act. 

 The DOC Award Number must be included on all payment-related correspondence, 

 information, and forms. 

 b. When the "Request for Advance or Reimbursement" (SF-270) is used to request 

 payment, the recipient shall submit the request no more frequently than monthly, and 

 advances shall be approved for periods to cover only expenses anticipated over the 

 next 30 days. When the SF-270 is used, the recipient must complete the SF-3881, 

 “ACH Vendor Miscellaneous Payment Enrollment Form,” and return it to the Grants 

 Officer. 

 c. Unless otherwise provided for in the award terms, payments under this award will be 

 made using the Department of Treasury’s Automated Standard Application for 

 Payment (ASAP) system. Under the ASAP system, payments are made through 

 preauthorized electronic funds transfers, in accordance with the requirements of the 

 Debt Collection Improvement Act of 1996. In order to receive payments under 

 ASAP, recipients are required to enroll with the Department of Treasury, Financial 

 Management Service, Regional Financial Centers, which allows them to use the on- 

 line and Voice Response System (VRS) method of withdrawing funds from their 

 ASAP established accounts. The following information will be required to make 

 withdrawals under ASAP: (1) ASAP account number – the award number found on 

 the cover sheet of the award; (2) Agency Location Code (ALC); and Region Code. 

 Recipients enrolled in the ASAP system do not need to submit a “Request for 

 Advance or Reimbursement” (SF-270), for payments relating to their award. Awards 

 paid under the ASAP system will contain a special award condition, clause, or 

 provision describing enrollment requirements and any controls or withdrawal limits 

 set in the ASAP system. 

 d. Advances shall be limited to the minimum amounts necessary to meet immediate 

 disbursement needs, but in no case should advances exceed the amount of cash 

 required for a 30-day period. Advanced funds not disbursed in a timely manner and 

 any applicable interest must be promptly returned to DOC. If a recipient 

 demonstrates an unwillingness or inability to establish procedures which will 

 minimize the time elapsing between the transfer of funds and disbursement or if the 

 recipient otherwise fails to continue to qualify for the advance method of payment, 

 the Grants Officer may change the method of payment to reimbursement only. 

 .03 Federal and Non-Federal Sharing 

 a. Awards which include Federal and non-Federal sharing incorporate a budget 

 consisting of shared allowable costs. If actual allowable costs are less than the total 

 approved budget, the Federal and non-Federal cost shares shall be calculated by 

 applying the approved Federal and non-Federal cost share ratios to actual allowable 

 costs. If actual allowable costs are greater than the total approved budget, the Federal 

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 share shall not exceed the total Federal dollar amount authorized by the award. 

 b. The non-Federal share, whether in cash or in-kind, is expected to be paid out at the 

 same general rate as the Federal share. Exceptions to this requirement may be 

 granted by the Grants Officer based on sufficient documentation demonstrating 

 previously determined plans for, or later commitment of, cash or in-kind 

 contributions. In any case, the recipient must meet its cost share commitment over 

 the life of the award. 

 .04 Budget Changes and Transfer of Funds Among Categories 

 a. Requests for budget changes to the approved estimated budget in accordance with the 

 provision noted below must be submitted to the Grants Officer who shall make the 

 final determination on such requests and notify the recipient in writing. 

 b. Transfers of funds by the recipient among direct cost categories are permitted for 

 awards in which the Federal share of the project is $100,000 or less. For awards in 

 which the Federal share of the project exceeds $100,000, transfers of funds among 

 direct cost categories must be approved in writing by the Grants Officer when the 

 cumulative amount of such direct cost transfers exceed 10 percent of the total Federal 

 and non-Federal funds authorized by the Grants Officer. The 10 percent threshold 

 applies to the total Federal and non-Federal funds authorized by the Grants Officer at 

 the time of the transfer request. This is the accumulated amount of Federal funding 

 obligated to date by the Grants Officer along with any non-Federal share. The same 

 criteria apply to the cumulative amount of transfer of funds among programs, 

 functions, and activities. Transfers will not be permitted if such transfers would 

 cause any Federal appropriation, or part thereof, to be used for purposes other than 

 those intended. This transfer authority does not authorize the recipient to create new 

 budget categories within an approved budget unless the Grants Officer has provided 

 prior approval. In addition, this does not prohibit the recipient from requesting 

 Grants Officer approval for revisions to the budget. 

 c. The recipient is not authorized at any time to transfer amounts budgeted for direct 

 costs to the indirect costs line item or vice versa, without written prior approval of the 

 Grants Officer. 

 .05 Indirect Costs 

 a. Indirect costs will not be allowable charges against the award unless specifically 

 included as a cost item in the approved budget incorporated into the award. (The 

 term “indirect cost” has been replaced with the term “facilities and administrative 

 costs” under OMB Circular A-21, “Cost Principles for Educational Institutions.”) 

 b. Excess indirect costs may not be used to offset unallowable direct costs. 

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 c. If the recipient has not previously established an indirect cost rate with a Federal 

 agency, the negotiation and approval of a rate is subject to the procedures in the 

 applicable cost principles and the following subparagraphs: 

 1. (a) State, Local, and Indian Tribal Governments; Educational Institutions; and 

 Non-Profit Organizations (Non-Commercial Organizations) 

 For the above listed organizations, cognizant federal agency is generally 

 defined as the agency that provides the largest dollar amount of direct federal 

 funding. For those organizations for which DOC is cognizant or has 

 oversight, DOC or its designee will either negotiate a fixed rate with carry 

 forward provisions for the recipient or, in some instances, will limit its review 

 to evaluating the procedures described in the recipient's cost allocation 

 methodology plan. Indirect cost rates and cost allocation methodology 

 reviews are subject to future audits to determine actual indirect costs. 

 (b) Commercial Organizations 

 For commercial organizations, cognizant federal agency is defined as the 

 agency that provides the largest dollar amount of negotiated contracts, 

 including options. If the only federal funds received by a commercial 

 organization are DOC award funds, then DOC becomes the cognizant federal 

 agency for the purpose of indirect cost negotiations. For those organizations 

 for which DOC is cognizant, DOC or its designee will negotiate a fixed rate 

 with carryforward provisions for the recipient. Fixed rate means an indirect 

 cost rate which has the same characteristics as a pre-determined rate, except 

 that the difference between the estimated costs and the actual costs of the 

 period covered by the rate is carried forward as an adjustment to the rate 

 computation of the subsequent period. 

 DOC or its designee will negotiate indirect cost rates using the cost principles 

 found in 48 CFR Part 31, “Contract Cost Principles and Procedures.” For 

 guidance on how to put an indirect cost plan together go to: 

 http://www.dol.gov/oasam/programs/boc/costdeterminationguide/main.htm 

 2. Within 90 days of the award start date, the recipient shall submit to the address 

 listed below documentation (indirect cost proposal, cost allocation plan, etc.) 

 necessary to perform the review. The recipient shall provide the Grants Officer 

 with a copy of the transmittal letter. 

 Office of Acquisition Management 

 U.S. Department of Commerce 

 14th Street and Constitution Avenue, N.W., Room 6412 

 Washington, DC 20230 

4 
 3. The recipient can use the fixed rate proposed in the indirect cost plan until such 

 time as the DOC provides a response to the submitted plan. Actual indirect costs 

 must be calculated annually and adjustments made through the carryforward 

 provision used in calculating next year’s rate. This calculation of actual indirect 

 costs and the carryforward provision is subject to audit. Indirect cost rate 

 proposals must be submitted annually. Organizations that have previously 

 established indirect cost rates must submit a new indirect cost proposal to the 

 cognizant agency within six months after the close of each of the recipients’ fiscal 

 years. 

 

 d. When DOC is not the oversight or cognizant Federal agency, the recipient shall 

 provide the Grants Officer with a copy of a negotiated rate agreement or a copy of the 

 transmittal letter submitted to the cognizant or oversight Federal agency requesting a 

 negotiated rate agreement. 

 e. If the recipient fails to submit the required documentation to DOC within 90 days of 

 the award start date, the Grants Officer may amend the award to preclude the 

 recovery of any indirect costs under the award. If the DOC, oversight, or cognizant 

 Federal agency determines there is a finding of good and sufficient cause to excuse 

 the recipient's delay in submitting the documentation, an extension of the 90-day due 

 date may be approved by the Grants Officer. 

 f. Regardless of any approved indirect cost rate applicable to the award, the maximum 

 dollar amount of allocable indirect costs for which DOC will reimburse the recipient 

 shall be the lesser of: 

 1. The line item amount for the Federal share of indirect costs contained in the 

 approved budget of the award; or 

 2. The Federal share of the total allocable indirect costs of the award based on the 

 indirect cost rate approved by a cognizant or oversight Federal agency and current 

 at the time the cost was incurred, provided the rate is approved on or before the 

 award end date. 

 .06 Incurring Costs of Obligating Federal Funds Beyond the Expiration Date 

 a. The recipient shall not incur costs or obligate funds for any purpose pertaining to the 

 operation of the project, program, or activities beyond the expiration date stipulated in 

 the award. The only costs which are authorized for a period of up to 90 days 

 following the award expiration date are those strictly associated with closeout 

 activities. Closeout activities are normally limited to the preparation of final 

 progress, financial, and required project audit reports unless otherwise approved in 

 writing by the Grants Officer. 

 b. Unless otherwise authorized in 15 CFR § 14.25(e)(2) or a special award condition, 

5 
 any extension of the award period can only be authorized by the Grants Officer in 

 writing. Verbal or written assurances of funding from other than the Grants Officer 

 shall not constitute authority to obligate funds for programmatic activities beyond the 

 expiration date. 

 c. The DOC has no obligation to provide any additional prospective funding. Any 

 amendment of the award to increase funding and to extend the period of performance 

 is at the sole discretion of DOC. 

 .07 Tax Refunds 

 Refunds of FICA/FUTA taxes received by the recipient during or after the award period 

 must be refunded or credited to DOC where the benefits were financed with Federal 

 funds under the award. The recipient agrees to contact the Grants Officer immediately 

 upon receipt of these refunds. The recipient further agrees to refund portions of 

 FICA/FUTA taxes determined to belong to the Federal Government, including refunds 

 received after the award end date. 

B. PROGRAMMATIC REQUIREMENTS 

 .01 Performance (Technical) Reports 

 a. The recipient shall submit performance (technical) reports in triplicate (one original 

 and two copies) or electronically to the Federal Program Officer as specified in the 

 special award conditions in the same frequency as the Financial Status Report (SF- 

 269) unless otherwise authorized by the Grants Officer. 

 b. Unless otherwise specified in the award provisions, performance (technical) reports 

 shall contain brief information as prescribed in the applicable uniform administrative 

 requirements incorporated into the award. 

 .02 Unsatisfactory Performance 

 Failure to perform the work in accordance with the terms of the award and maintain at 

 least a satisfactory performance rating or equivalent evaluation may result in designation 

 of the recipient as high risk and assignment of special award conditions or other further 

 action as specified in the standard term and condition entitled “Non-Compliance With 

 Award Provisions.” 

6 
 .03 Programmatic Changes 

 The recipient shall report programmatic changes to the Grants Officer, and shall request 

 prior approvals in accordance with 15 CFR § 14.25 or 15 CFR § 24.30. 

 .04 Other Federal Awards with Similar Programmatic Activities 

 The recipient shall immediately provide written notification to the Federal Program 

 Officer and the Grants Officer in the event that, subsequent to receipt of the DOC award, 

 other financial assistance is received to support or fund any portion of the scope of work 

 incorporated into the DOC award. DOC will not pay for costs that are funded by other 

 sources. 

 .05 Non-Compliance With Award Provisions 

 Failure to comply with any or all of the provisions of the award may have a negative 

 impact on future funding by DOC and may be considered grounds for any or all of the 

 following actions: establishment of an account receivable, withholding payments under 

 any DOC awards to the recipient, changing the method of payment from advance to 

 reimbursement only, or the imposition of other special award conditions, suspension of 

 any DOC active awards, and termination of any DOC active awards. 

 .06 Prohibition Against Assignment by the Recipient 

 The recipient shall not transfer, pledge, mortgage, or otherwise assign the 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 the Grants Officer. 

 .07 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 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. 

7 
C. NON-DISCRIMINATION REQUIRMENTS 

 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 agrees to comply with the non-discrimination requirements below: 

 .01 Statutory Provisions 

 a. Title VI of the Civil Rights Act of 1964 (42 USC §§ 2000d et seq.) and DOC 

 implementing regulations published at 15 CFR Part 8 which prohibit 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 USC §§ 1681 et seq.) prohibiting 

 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 USC § 794) and DOC 

 implementing regulations published at 15 CFR Part 8b prohibiting discrimination on 

 the basis of handicap under any program or activity receiving or benefiting from 

 Federal assistance; 

 d. The Age Discrimination Act of 1975, as amended (42 USC §§ 6101 et seq.) and DOC 

 implementing regulations published at 15 CFR Part 20 prohibiting discrimination on 

 the basis of age in programs or activities receiving Federal financial assistance; 

 e. The Americans with Disabilities Act of 1990 (42 USC §§ 12101 et seq.) prohibiting 

 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 entities that provide public 

 transportation; 

 f. Any other applicable non-discrimination law(s). 

 .02 Other Provisions 

 a. Parts II and III of EO 11246 (30 FR 12319, 1965), as amended by EO 11375 (32 FR 

 14303, 1967) and 12086 (43 FR 46501, 1978), require Federally assisted construction 

 contracts to include the nondiscrimination provisions of §§ 202 and 203 of that EO 

 and Department of Labor regulations implementing EO 11246 (41 CFR § 60-1.4(b), 

 1991). 

8 
 b. EO 13166 (August 11, 2000), “Improving Access to Services for Persons With 

 Limited English Proficiency,” and DOC policy guidance issued on March 24, 2003 

 (68 FR 14180) to Federal financial assistance recipients on the Title VI prohibition 

 against national origin discrimination affecting Limited English Proficient (LEP) 

 persons. 

 .03 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. 

D. AUDITS 

 Under the Inspector General Act of 1978, as amended, 5 USC App. 3, § 1 et seq., an audit of 

 the award may be conducted at any time. The Inspector General of the DOC, or any of his or 

 her duly authorized representatives, shall have access to any pertinent books, documents, 

 papers and records of the recipient, whether written, printed, recorded, produced or 

 reproduced by any electronic, mechanical, magnetic or other process or medium, in order to 

 make audits, inspections, excerpts, transcripts or other examinations as authorized by law. 

 When the OIG requires a program audit on a DOC award, the OIG will usually make the 

 arrangements to audit the award, whether the audit is performed by OIG personnel, an 

 independent accountant under contract with DOC, or any other Federal, state or local audit 

 entity. 

 .01 Organization-Wide, Program-Specific, and Project Audits 

 a. Organization-wide or program-specific audits shall be performed in accordance with 

 the Single Audit Act Amendments of 1996, as implemented by OMB Circular A-133, 

 “Audits of States, Local Governments, and Non-Profit Organizations.” Recipients 

 that are subject to the provisions of OMB Circular A-133 and that expend $500,000 

 or more in a year in Federal awards shall have an audit conducted for that year in 

 accordance with the requirements contained in OMB Circular A-133. A copy of the 

 audit shall be submitted to the Bureau of the Census, which has been designated by 

9 
 OMB as a central clearinghouse. The address is: 

 Federal Audit Clearinghouse 

 Bureau of the Census 

 1201 E. 10th Street 

 Jeffersonville, IN 47132 

 b. Unless otherwise specified in the terms and conditions of the award, in accordance 

 with 15 CFR § 14.26(c) and (d), for-profit hospitals, commercial entities, and other 

 organizations not required to follow the audit provisions of OMB Circular A-133 

 shall have an audit performed when the federal share amount awarded is $500,000 or 

 more over the duration of the project period. An audit is required at least once every 

 two years using the following schedule for audit report submission. 

 1. For awards less than 24 months, an audit is required within 90 days from the 

 project expiration date, including the close-out period for the award. 

 2. For 2-, or 3 -year awards, an audit is required within 90 days after the end of the 

 first year and within 90 days from the project expiration date including the close- 

 out period for the award. 

 3. For 4-, or 5-year awards, an audit is required within 90 days after the end of the 

 first year and third year, and within 90 days from the project expiration date 

 including the close-out period for the award. 

 c. Some DOC programs have specific audit guidelines that will be incorporated into the 

 award. When DOC does not have a program-specific audit guide available for the 

 program, the auditor will follow the requirements for a program-specific audit as 

 described in OMB Circular A-133, § .235. The Recipient may include a line item in 

 the budget for the cost of the audit. A copy of the program-specific audit shall be 

 submitted to the Grants Officer and to the OIG at the following address: 

 Office of Inspector General 

 U.S. Department of Commerce 

 Atlanta Regional Office of Audits 

 401 West Peachtree Street, N.W., Suite 2742 

 Atlanta, GA 30308 

 .02 Audit Resolution Process 

 a. An audit of the award may result in the disallowance of costs incurred by the 

 recipient and the establishment of a debt (account receivable) due DOC. For this 

 reason, the recipient should take seriously its responsibility to respond to all audit 

 findings and recommendations with adequate explanations and supporting evidence 

10 
 whenever audit results are disputed. 

 b. In accordance with the Federal Register notice dated January 27, 1989 (54 FR 4053), 

 a recipient whose award is audited has the following opportunities to dispute the 

 proposed disallowance of costs and the establishment of a debt: 

 1. Unless the Inspector General determines otherwise, the recipient has 30 days from 

 the date of the transmittal of the draft audit report to submit written comments and 

 documentary evidence. 

 2. The recipient has 30 days from the date of the transmittal of the final audit report 

 to submit written comments and documentary evidence. There will be no 

 extension of this deadline. 

 3. The DOC shall review the documentary evidence submitted by the recipient and 

 shall notify the recipient of the results in an Audit Resolution Determination 

 Letter. The recipient has 30 days from the date of receipt of the Audit Resolution 

 Determination Letter to submit a written appeal. There will be no extension of 

 this deadline. The appeal is the last opportunity for the recipient to submit written 

 comments and documentary evidence that dispute the validity of the audit 

 resolution determination. 

 4. An appeal of the Audit Resolution Determination does not prevent the 

 establishment of the audit-related debt nor does it prevent the accrual of interest 

 on the debt. If the Audit Resolution Determination is overruled or modified on 

 appeal, appropriate corrective action will be taken retroactively. An appeal will 

 stay the offset of funds owed by the auditee against funds due to the auditee. 

 5. The DOC shall review the recipient's appeal and notify the recipient of the results 

 in an Appeal Determination Letter. After the opportunity to appeal has expired or 

 after the appeal determination has been rendered, DOC will not accept any further 

 documentary evidence from the recipient. No other administrative appeals are 

 available in DOC. 

E. DEBTS 

 .01 Payment of Debts Owed the Federal Government 

 Any debts determined to be owed the Federal Government shall be paid promptly by the 

 recipient. In accordance with 15 CFR § 21.4, a debt will be considered delinquent if it is 

 not paid within 15 days of the due date, or if there is no due date, within 30 days of the 

 billing date. Failure to pay a debt by the due date, or if there is no due date, within 30 

 days of the billing date, shall result in the imposition of late payment charges as noted 

11 
 below. In addition, failure to pay the debt or establish a repayment agreement by the due 

 date, or if there is no due date, within 30 days of the billing date, will also result in the 

 referral of the debt for collection action, including referral to the Treasury Offset 

 Program, 31 C.F.R. § 285.5, and may result in DOC taking further action as specified in 

 the standard term and condition entitled "Non-Compliance With Award Provisions". 

 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. 

 .02 Late Payment Charges 

 a. An interest charge shall be assessed on the delinquent debt as established by the Debt 

 Collection Act (31 U.S.C. 3701 et seq.), as amended. The minimum annual interest 

 rate to be assessed is the Department of the Treasury's Current Value of Funds Rate. 

 This rate is published in the Federal Register by the Department of the Treasury. The 

 assessed rate shall remain fixed for the duration of the indebtedness. 

 b. A penalty charge shall be assessed on any portion of a debt that is delinquent for more 

 than 90 days, although the charge will accrue and be assessed from the date the debt 

 became delinquent. 

 c. An administrative charge shall be assessed to cover processing and handling the 

 amount due. 

 .03 Barring Delinquent Federal Debtors From Obtaining Federal Loans or Loan 

Insurance Guarantees 

 Pursuant to 31 U.S.C. § 3720B, unless waived, the DOC is not permitted to extend 

 financial assistance in the form of a loan, loan guarantee, or loan insurance to any person 

 delinquent on a nontax debt owed to a Federal agency. This prohibition does not apply to 

 disaster loans. 

 .04 Effect of Judgment Lien On Eligibility For Federal Grants, Loans, or Programs 

 Pursuant to 28 U.S.C. § 3201(e), unless waived by the DOC, 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 which 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. 

12 
F. INDIVIDUAL BACKGROUND SCREENING 

 An individual background screening will be performed by the OIG on key individuals of 

 organizational units associated with the application at the beginning of the award and at three 

 year intervals thereafter for the life of the award unless (1) the proposed award amount is 

 $100,000 or less; (2) applicants are accredited colleges and universities; (3) applicants are 

 units of a State or local government; (4) applicants are economic development districts 

 designated by EDA, including those entities whose designations are pending, and councils of 

 governments; or (5) the key individual(s) is/are elected officials of State and local 

 governments who are serving in capacities other than their elected capacities when applying 

 for assistance. In addition, if there is a change in the status of the organization and/or key 

 individuals, or the program officer, OIG, or Grants Officer believes there is good reason to 

 conduct a review sooner, a background screening may be required more frequently. 

 Individual background screenings are intended to reveal if any key individuals associated 

 with the applicant have been convicted of or are presently facing criminal charges (e.g., 

 fraud, theft, perjury), or other matters which significantly reflect on the applicant’s business 

 integrity, responsibility, or financial integrity. Key individuals of non-exempt organizations 

 associated with this award shall complete Form CD-346, “Applicant for Funding 

 Assistance.” An original signature is required. The form is to be submitted to the Grants 

 Specialist named in the award document within 30 days of receipt of this award. 

 .01 Results of Individual Background Screening 

 DOC reserves the right to take any of the actions described in section F.02 if any of the 

 following occurs as a result of the individual background screening: 

 a. A key individual fails to submit the required Form CD-346, “Applicant for Funding 

 Assistance” within 30 days of receipt of this award; 

 b. A key individual makes a false statement or omits a material fact on the Form 

 CD-346; 

 c. The individual background screening reveals significant adverse findings that reflect 

 on the business integrity or responsibility of the recipient and/or key individual. 

 .02 Action(s) Taken as a Result of Individual Background Screening 

 If any situation noted in F.01 occurs, DOC, at its discretion, may take one or more of the 

 following actions: 

 a. Consider suspension/termination of an award immediately for cause; 

 b. Require the removal of any key individual from association with management and/or 

 implementation of the award and require Grants Officer approval of personnel 

13 
 replacements; 

 c. Require the recipient to make other changes as appropriate; and/or 

 d. Designate the recipient as high risk and amend the award to assign special award 

 conditions, as appropriate, including making changes with respect to the method of 

 payment and/or financial reporting requirements. 

G. GOVERNMENTWIDE DEBARMENT AND SUSPENSION (NONPROCUREMENT) 

 The recipient shall comply with the provisions of Subpart C of 2 CFR Part 1326, 

 “Governmentwide Debarment and Suspension (Nonprocurement)” (published in the Federal 

 Register on December 21, 2006, 71 FR 76573), which generally prohibit entities that have 

 been debarred, suspended, or voluntarily excluded from participating in Federal 

 nonprocurement transactions either through primary or lower tier covered transactions. 

H. DRUG-FREE WORKPLACE 

 The recipient shall 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. § 702) and DOC implementing regulations published 

 at 15 CFR Part 29, “Governmentwide Requirements for Drug-Free Workplace (Financial 

 Assistance)” (published in the Federal Register on November 26, 2003, 68 FR 66534), which 

 require that the recipient take steps to provide a drug-free workplace. 

I. LOBBYING RESTRICTIONS 

 .01 Statutory Provisions 

 The recipient shall comply with the provisions of 31 U.S.C. § 1352 and DOC 

 implementing regulations published at 15 CFR Part 28, "New Restrictions on Lobbying." 

 These provisions generally prohibit the use of Federal funds for lobbying the Executive 

 or Legislative Branches of the Federal government in connection with the award, and 

 require the disclosure of the use of non-Federal funds for lobbying. 

 .02 Disclosure of Lobbying Activities 

 The recipient receiving in excess of $100,000 in Federal funding shall submit a 

14 
 completed Form SF-LLL, “Disclosure of Lobbying Activities,” regarding the use of non- 

 Federal funds for lobbying. The Form SF-LLL shall be submitted within 30 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. The recipient must submit the Forms SF-LLL, 

 including those received from subrecipients, contractors, and subcontractors, to the 

 Grants Officer. 

J. CODES OF CONDUCT AND SUBAWARD, CONTRACT, AND SUBCONTRACT 

PROVISIONS 

.01 Code of Conduct for Recipients 

 Pursuant to the certification in SF-424B, paragraph 3, the recipient must maintain written 

 standards of conduct to establish safeguards to prohibit employees from using their 

 positions for a purpose that constitutes or presents the appearance of personal or 

 organizational conflict of interest, or personal gain in the administration of this award. 

.02 Applicability of Award Provisions to Subrecipients 

 a. The recipient shall require all subrecipients, including lower tier subrecipients, under 

 the award to comply with the provisions of the award, including applicable cost 

 principles, administrative, and audit requirements. 

 b. A recipient is responsible for subrecipient monitoring, including the following: 

 1. Award Identification - At the time of the award, identifying to the subrecipient the 

 Federal award information (e.g., CFDA title and number, award name, name of 

 Federal agency) and applicable compliance requirements. 

 2. During-the-Award Monitoring - Monitoring the subrecipient’s use of Federal 

 awards through reporting, site visits, regular contact, or other means to provide 

 reasonable assurance that the subrecipient administers Federal awards in 

 compliance with laws, regulations, and the provisions of contracts or grant 

 agreements and that performance goals are achieved. 

 3. Subrecipient Audits - Ensuring that subrecipients expending $500,000 or more in 

 Federal awards during the subrecipient’s fiscal year have met the audit 

 requirements of OMB Circular A-133, and that the required audits are completed 

 within 9 months of the end of the subrecipient’s audit period. In addition, the 

 recipient is required to issue a management decision on audit findings within 6 

 months after receipt of the subrecipient’s audit report, and ensuring that the 

 subrecipient takes timely and appropriate corrective action on all audit findings. 

15 
 In cases of continued inability or unwillingness of a subrecipient to have the 

 required audits, the pass-through entity shall take appropriate action using 

 sanctions. 

.03 Competition and Codes of Conduct for Subawards 

 a. All subawards will be made in a manner to provide, to the maximum extent 

 practicable, open and free competition. The recipient must be alert to organizational 

 conflicts of interest as well as other practices among subrecipients that may restrict or 

 eliminate competition. In order to ensure objective subrecipient performance and 

 eliminate unfair competitive advantage, subrecipients that develop or draft work 

 requirements, statements of work, or requests for proposals shall be excluded from 

 competing for such subawards. 

 b. The recipient shall maintain written standards of conduct governing the performance 

 of its employees engaged in the award and administration of subawards. 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. The officers, employees, and 

 agents of the recipient shall neither solicit nor accept anything of monetary value 

 from subrecipients. However, the recipient may set standards for situations in which 

 the financial interest is not substantial or the gift is an unsolicited item of nominal 

 value. The standards of conduct shall provide for disciplinary actions to be applied 

 for violations of such standards by officers, employees, or agents of the recipient. 

 c. 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. An appearance of impairment of objectivity could result 

 from an organizational conflict where, because of other activities or relationships with 

 other persons or entities, a person is unable or potentially unable to render impartial 

 assistance or advice. It could also result from non-financial gain to the individual, 

 such as benefit to reputation or prestige in a professional field. 

 .04 Applicability of Provisions to Subawards, Contracts, and Subcontracts 

 a. The recipient shall include the following notice in each request for applications or 

 bids: 

 Applicants/bidders for a lower tier covered transaction (except procurement 

 contracts for goods and services under $25,000 not requiring the consent of a 

16 
 DOC official) are subject to 2 CFR Part 1326, Subpart C "Governmentwide 

 Debarment and Suspension (Nonprocurement).” In addition, applicants/bidders 

 for a lower tier covered transaction for a subaward, contract, or subcontract 

 greater than $100,000 of Federal funds at any tier are subject to 15 CFR Part 28, 

 "New Restrictions on Lobbying." Applicants/bidders should familiarize 

 themselves with these provisions, including the certification requirement. 

 Therefore, applications for a lower tier covered transaction must include a Form 

 CD-512, "Certification Regarding Lobbying--Lower Tier Covered Transactions," 

 completed without modification. 

 b. The recipient shall include a term or condition in all lower tier covered transactions 

 (subawards, contracts, and subcontracts), that the award is subject to Subpart C of 2 

 CFR Part 1326, "Governmentwide Debarment and Suspension (Nonprocurement)." 

 c. The recipient shall include a statement in all lower tier covered transactions 

 (subawards, contracts, and subcontracts) exceeding $100,000 in Federal funds, that 

 the subaward, contract, or subcontract is subject to 31 U.S.C § 1352, as implemented 

 at 15 CFR Part 28, "New Restrictions on Lobbying." The recipient shall further 

 require the subrecipient, contractor, or subcontractor to submit a completed 

 "Disclosure of Lobbying Activities" (Form SF-LLL) regarding the use of non-Federal 

 funds for lobbying. The Form SF-LLL shall be submitted within 15 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. The Form SF-LLL shall be submitted from tier to 

 tier until received by the recipient. The recipient must submit all disclosure forms 

 received, including those that report lobbying activity on its own behalf, to the Grants 

 Officer within 30 days following the end of the calendar quarter. 

 .05 Minority Owned Business Enterprise 

 DOC encourages recipients to utilize minority and women-owned firms and enterprises 

 in contracts under financial assistance awards. The Minority Business Development 

 Agency will assist recipients in matching qualified minority owned enterprises with 

 contract opportunities. For further information contact: 

 U.S. Department of Commerce 

 Minority Business Development Agency 

 Herbert C. Hoover Building 

 14th Street and Constitution Avenue, N.W. 

 Washington, D.C. 20230 

17 
 .06 Subaward and/or Contract to a Federal Agency 

 a. The recipient, subrecipient, contractor, and/or subcontractor shall not sub-grant or 

 sub-contract any part of the approved project to any agency or employee of DOC 

 and/or other Federal department, agency or instrumentality, without the prior written 

 approval of the Grants Officer. 

 b. Requests for approval of such action must be submitted to the Federal Program 

 Officer who shall review and make recommendation to the Grants Officer. The 

 Grants Officer shall make the final determination and will notify the recipient in 

 writing of the final determination. 

K. PROPERTY 

 .01 Standards 

 The recipient shall comply with the property management standards as stipulated in the 

 applicable uniform administrative requirements. 

 .02 Real Property 

 The recipient shall execute a security interest or other statement of the Federal 

 Interest in real property acquired or improved with Federal funds, acceptable in 

 form and substance to the DOC, which statement must be perfected and placed of 

 record in accordance with local law, with continuances re-filed as appropriate. 

 The recipient must provide the DOC with a written statement from a licensed 

 attorney in the jurisdiction where the property is located certifying that the 

 Federal Interest has been protected, as required under the award and in 

 accordance with local law. The attorney’s statement, along with a copy of the 

 instrument reflecting the recordation of the Federal Interest, shall be returned to 

 the Grants Officer. The recipient may not dispose of, modify the use of, or 

 change the terms of the real property title, or other interest in the project site and 

 facilities without permission and instructions from the Grants Officer. No funds 

 under this award shall be released until the recipient has complied with this 

 provision, unless other arrangements satisfactory to the DOC are made. 

18 
L. ENVIRONMENTAL REQUIREMENTS 

 Environmental impacts must be considered by Federal decision makers in their 

 decisions whether or not to (1) approve a proposal for Federal assistance; (2) approve 

 the proposal with mitigation; or (3) approve a different proposal/grant having less 

 adverse environmental impacts. Federal environmental laws require that the funding 

 agency initiate a planning process with an early consideration of potential 

 environmental impacts that projects funded with Federal assistance may have on the 

 environment. The recipient and subrecipients must comply with all environmental 

 standards, to include those prescribed under the following statutes and Executive 

 Orders, and shall identify to the awarding agency any impact the award may have on 

 the environment. In some cases, award funds can be withheld by the Grants Officer 

 under a special award condition requiring the recipient to submit additional 

 environmental compliance information sufficient to enable the DOC to make an 

 assessment on any impacts that a project may have on the environment. 

 .01 The National Environmental Policy Act of 1969 (42 U.S.C. §§ 4321-4327) 

 The National Environmental Policy Act (NEPA) and the Council on 

 Environmental Quality (CEQ) implementing regulations (40 CFR parts 1500 

 through 1508) require that an environmental analysis be completed for all major 

 Federal actions significantly affecting the environment. NEPA applies to the 

 actions of Federal agencies and may include a Federal agency's decision to fund 

 non-Federal projects under grants and cooperative agreements. Recipients of 

 Federal assistance are required to identify to the awarding agency any impact an 

 award will have on the quality of the human environment, and assist the agency to 

 comply with the National Environmental Policy Act. Recipients may also be 

 requested to assist NOAA in drafting of an environmental assessment, if the 

 Department determines an assessment is required, when the award activities 

 remain subject to Federal authority and control. If additional information is 

 required during the period of the award, funds can be withheld by the Grants 

 Officer under a special award condition requiring the recipient to submit 

 additional environmental compliance information sufficient to enable the 

 Department to make an assessment on any impacts that a project may have on the 

 environment. 

 .02 Floodplain Management, EO 11988 and, Protection of Wetlands, EO 11990, 

May 24, 1977 

 Recipients must identify proposed actions in Federally defined floodplains and wetlands 

 to enable the agency to make a determination whether there is an alternative to minimize 

 any potential harm. 

19 
 .03 Clean Air Act, Clean Water Act, and EO 11738 

 Recipients must comply with the provisions of the Clean Air Act (42 U.S.C. §§ 7401 et 

 seq.), Clean Water Act (33 U.S.C. §§1251 et seq.), and EO 11738, and shall not use a 

 facility on EPA’s List of Violating Facilities in performing any award that is nonexempt 

 under 40 CFR §15.5, and shall notify the Program Officer in writing if it intends to use a 

 facility that is on the EPA List of Violating Facilities or knows that the facility has been 

 recommended to be placed on the List. 

 .04 The Flood Disaster Protection Act of 1973 (42 U.S.C. § 4002 et seq.) 

 Flood insurance, when available, is required for Federally assisted construction or 

 acquisition in flood-prone areas. 

 .05 The Endangered Species Act of 1973, as amended, (16 U.S.C. § 1531 et seq.) 

 Recipients must identify any impact or activities which may involve a threatened or 

 endangered species. Federal agencies have the responsibility to ensure that no adverse 

 effects to a protected species or habitat occur from actions under Federal assistance 

 awards and conduct the required reviews under the Endangered Species Act, as 

 applicable. 

 .06 The Coastal Zone Management Act, as amended, (16 U.S.C. § 1451 et seq.) 

 Funded projects must be consistent with a coastal state’s approved management program 

 for the coastal zone. 

 .07 The Coastal Barriers Resources Act, (16 U.S.C. § 3501 et seq.) 

 Restrictions are placed on Federal Funding for actions within the Coastal Barrier System. 

.08 The Wild and Scenic Rivers Act, as amended (16 U.S.C. §§ 1271 et seq.) 

 This Act applies to awards that may affect existing or proposed components of the 

 National Wild and Scenic Rivers system. 

20 
.09 The Safe Drinking Water Act of 1974, as amended (42 U.S.C. §§ 300f-j) 

 This Act precludes Federal assistance for any project that the EPA determines may 

 contaminate a sole source aquifer so as to threaten public health. 

 .10 The Resource Conservation and Recovery Act of 1976, as amended, (42 U.S.C. §§ 

6901 et seq.) 

 This Act regulates the generation, transportation, treatment, and disposal of hazardous 

 wastes, and also provides that recipients of Federal funds give preference in their 

 procurement programs to the purchase of recycled products pursuant to EPA guidelines. 

 .11 The Comprehensive Environmental Response, Compensation, and Liability Act of 

 1980, as amended, and the Superfund Amendments and Reauthorization Act of 

 1986, and the Community Environmental Response Facilitation Act of 1992, as 

 amended, (42 U.S.C. §§ 9601 et seq.) 

 These requirements address responsibilities of hazardous substance releases, threatened 

 releases and environmental cleanup. There is also a requirement to impose reporting and 

 community involvement requirements to ensure disclosure of the release or disposal of 

 regulated substances and cleanup of hazards. 

 .12 Environmental Justice in Minority Populations and Low Income Populations, EO 

 12898, February 11, 1994. 

 This order identified and addresses adverse human health or environmental effects of 

 programs, policies and activities on low income and minority populations. 

M. MISCELLANEOUS REQUIREMENTS 

 .01 Criminal and Prohibited Activities 

 a. The Program Fraud Civil Remedies Act (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 (18 U.S.C. §§ 287 and 1001), provides that whoever makes or 

21 
 presents any false, fictitious, or fraudulent statements, representations, or claims 

 against 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 by 18 U.S.C. § 287. 

 c. False Claims Act (31 U.S.C. 3729 et seq.), provides that suits under this act can be 

 brought by the government, or a person on behalf of the government, for false claims 

 under Federal assistance programs. 

 d. Copeland “Anti-Kickback” Act (18 U.S.C. § 874 and 40 U.S.C. § 276c), 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. 

 .02 Foreign Travel 

 a. The recipient shall comply with the provisions of the Fly America Act (49 USC § 

 40118). The implementing regulations of the Fly America Act are found at 41 CFR 

 §§ 301-10.131 through 301-10.143. 

 b. The Fly America Act requires that Federal travelers and others performing U.S. 

 Government-financed foreign 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. 

 c. Use of foreign air carriers may also be used only if bilateral agreements permit such 

 travel pursuant to 49 USC § 40118(b). DOC is not aware of any bilateral agreements 

 which meet these requirements. Therefore, it is the responsibility of the recipient to 

 provide the Grants Officer with a copy of the applicable bilateral agreement if use of 

 a foreign carrier under a bilateral agreement is anticipated. 

 d. If a foreign air carrier is anticipated to be used for any part of foreign travel, the 

 recipient must receive prior approval from the Grants Officer. When requesting such 

 approval, the recipient must provide a justification in accordance with guidance 

 provided by 41 CFR § 301-10.142, which requires the recipient to provide the Grants 

 Officer 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 the Grants Officer with a copy of the agreement. The 

 Grants Officer 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. 

22 
 .03 American-Made Equipment and Products 

 Recipients are hereby notified that they are encouraged, to the greatest extent practicable, 

 to purchase American-made equipment and products with funding provided under this 

 award. 

 .04 Intellectual Property Rights 

 a. Inventions. The rights to any invention made by a recipient under a DOC financial 

 assistance award are determined by the Bayh-Dole Act, Pub. L. 96-517, as amended, 

 and codified in 35 U.S.C. § 200 et seq., except as otherwise required by law. The 

 specific requirements governing the development, reporting, and disposition of rights 

 to inventions and patents resulting from financial assistance awards are described in 

 more detail in 37 CFR Part 401 and in particular, in the standard patent rights clause 

 in 37 CFR § 401.14, which is hereby incorporated by reference into this award. 

 1. Ownership. 

 (a) Recipient. The recipient has the right to own any invention it makes 

 (conceived or first actually reduced to practice) or made by its employees. The 

 recipient may not assign its rights to a third party without the permission of 

 DOC unless it is to a patent management organization (i.e., a university’s 

 Research Foundation.) The recipient’s ownership rights are subject to the 

 Government’s nonexclusive paid-up license and other rights. 

 (b) Department. If the recipient elects not to own or does not elect rights or file a 

 patent application within the time limits set forth in the standard patent rights 

 clause, DOC may request an assignment of all rights, which is normally 

 subject to a limited royalty free nonexclusive revocable license for the 

 recipient. DOC owns any invention made solely by its employees but may 

 license the recipient in accordance with the procedures in 37 CFR Part 404. 

 (c) Inventor/Employee. If neither the recipient nor the Department is interested in 

 owning an invention by a recipient employee, the recipient, with the written 

 concurrence of DOC, may allow the inventor/employee to own the invention 

 subject to certain restrictions as described in 37 CFR § 401.9. 

 (d) Joint inventions. Inventions made jointly by a recipient and a DOC employee 

 will be owned jointly by the recipient and DOC. However, DOC may transfer 

 its rights to the recipient as authorized by 35 U.S.C. § 202(e) and 37 CFR § 

 401.10 if the recipient is willing to patent and license the invention usually in 

 exchange for a share of “net” royalties based on the number of inventors (e.g., 

 50-50 if there is one recipient and DOC employee). The agreement will be 

 prepared by DOC and may include other provisions, such as a royalty free 

 license to the Government and certain other entities. 35 U.S.C. § 202(e) also 

23 
 authorizes the recipient to transfer its rights to the Government which can 

 agree to share royalties similarly as described above. 

 2. Responsibilities - iEdison. The recipient has responsibilities and duties set forth 

 in the standard patent rights clause, which are not described below. The recipient 

 is expected to comply with all the requirements of the standard patent rights 

 clause and 37 CFR Part 401. Recipients of DOC financial assistance awards are 

 required to submit their disclosures and elections electronically using the 

 Interagency Edison extramural invention reporting system (iEdison) at 

 www.iEdison.gov. Recipients may obtain a waiver of this electronic submission 

 requirement by providing to DOC compelling reasons for allowing the submission 

 of paper copies of reports related to inventions. 

 b. Patent Notification Procedures. 

 Pursuant to E.O. 12889, DOC is required to notify the owner of any valid patent 

 covering technology whenever the DOC or its financial assistance recipients, without 

 making a patent search, knows (or has demonstrable reasonable grounds to know) 

 that technology covered by a valid United States patent has been or will be used 

 without a license from the owner. To ensure proper notification, if the recipient uses 

 or has used patented technology under this award without a license or permission 

 from the owner, the recipient must notify the Grants Officer. 

 However, this notice does not necessarily mean that the Government authorizes and 

 consents to any copyright or patent infringement occurring under the financial 

 assistance. 

 c. Data, Databases, and Software. 

 The rights to any work produced or purchased under a DOC Federal financial 

 assistance award are determined by 15 CFR § 24.34 and 15 CFR § 14.36. Such 

 works may include data, databases or software. The recipient owns any work 

 produced or purchased under a DOC Federal financial assistance award subject to 

 DOC’s right to obtain, reproduce, publish or otherwise use the work or authorize 

 others to receive, reproduce, publish or otherwise use the data for Government 

 purposes. 

 d. Copyright. 

 The recipient may copyright any work produced under a DOC Federal financial 

 assistance award subject to DOC’s royalty-free nonexclusive and irrevocable right to 

 reproduce, publish or otherwise use the work or authorize others to do so for 

 Government purposes. Works jointly authored by DOC and recipient employees may 

 be copyrighted but only the part authored by the recipient is protected because, under 

 17 U.S.C. § 105, works produced by Government employees are not copyrightable in 

24 
 the United States. On occasion, DOC may ask the recipient to transfer to DOC its 

 copyright in a particular work when DOC is undertaking the primary dissemination of 

 the work. Ownership of copyright by the Government through assignment is 

 permitted by 17 U.S.C. § 105. 

.05 Increasing Seat Belt Use in the United States 

 Pursuant to EO 13043, recipients should encourage employees and contractors to enforce 

 on-the-job seat belt policies and programs when operating company-owned, rented or 

 personally-owned vehicles. 

 .06 Research Involving Human Subjects 

 a. All proposed research involving human subjects must be conducted in accordance 

 with 15 CFR Part 27, “Protection of Human Subjects.” No research involving human 

 subjects is permitted under this award unless expressly authorized by Special Award 

 Condition, or otherwise in writing by the Grants Officer. 

 

 b. Federal policy defines a human subject as a living individual about whom an 

 investigator conducting research obtains (1) data through intervention or interaction 

 with the individual, or (2) identifiable private information. Research means a 

 systematic investigation, including research development, testing and evaluation, 

 designed to develop or contribute to generalizable knowledge. 

 c. DOC regulations, 15 CFR Part 27, require that recipients 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 shall submit 

 appropriate documentation to the Federal Program Officer for approval by the 

 appropriate DOC officials. This documentation may include: 

 1. 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, see 15 CFR § 27.103; 

 2. Documentation to support an exemption for the project under 15 CFR § 

 27.101(b); 

 3. Documentation to support deferral for an exemption or IRB review under 15 CFR 

 § 27.118; 

 4. Documentation of IRB approval of any modification to a prior approved protocol 

 or to an informed consent form. 

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

25 
 and/or charged for human subjects research, until the appropriate documentation is 

 approved in writing by the Grants Officer. Notwithstanding this prohibition, work 

 may be initiated or costs incurred and/or charged to the project for protocol or 

 instrument development related to human subjects research. 

 .07 Federal Employee Expenses 

 Federal agencies are generally barred from accepting funds from a recipient to pay 

 transportation, travel, or other expenses for any Federal employee unless specifically 

 approved in the terms of the award. Use of award funds (Federal or non-Federal) or the 

 recipient’s provision of in-kind goods or services, for the purposes of transportation, 

 travel, or any other expenses for any Federal employee may raise appropriation 

 augmentation issues. In addition, DOC policy prohibits the acceptance of gifts, including 

 travel payments for Federal employees, from recipients or applicants regardless of the 

 source. 

 .08 Preservation of Open Competition and Government Neutrality Towards 

 Government Contractors’ Labor Relations on Federal and Federally Funded 

 Construction Projects. 

 Pursuant to EO 13202, “Preservation of Open Competition and Government Neutrality 

 Towards Government Contractors’ Labor Relations on Federal and Federally Funded 

 Construction Projects,” unless the project is exempted under section 5(c) of the order, bid 

 specifications, project agreements, or other controlling documents for construction 

 contracts awarded by recipients of grants or cooperative agreements, or those of any 

 construction manager acting on their behalf, shall not: 

 a. include any requirement or prohibition on bidders, offerors, contractors, or 

 subcontractors about entering into or adhering to agreements with one or more labor 

 organizations on the same or related construction project(s); or 

 b. otherwise discriminate against bidders, offerors, contractors, or subcontractors for 

 becoming or refusing to become or remain signatories or otherwise to adhere to 

 agreements with one or more labor organizations, on the same or other related 

 construction project(s). 

 .09 Minority Serving Institutions (MSIs) Initiative 

 Pursuant to Eos13256, 13230, and 13270, DOC is strongly committed to broadening the 

 participation of MSIs in its financial assistance programs. DOC’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 

26 
 programs. DOC encourages all applicants and recipients to include meaningful 

 participation of MSIs. Institutions eligible to be considered MSIs are listed on the 

 Department of Education website. 

 .10 Research Misconduct 

 Scientific or research misconduct refers to the fabrication, falsification, or plagiarism in 

 proposing, performing, or reviewing research, or in reporting research results. It does not 

 include honest errors or differences of opinion. The recipient organization has the 

 primary responsibility to investigate allegations and provide reports to the Federal 

 Government. Funds expended on an activity that is determined to be invalid or unreliable 

 because of scientific misconduct may result in a disallowance of costs for which the 

 institution may be liable for repayment to the awarding agency. The Office of Science 

 and Technology Policy at the White House published in the Federal Register on 

 December 6, 2000, a final policy that addressed research misconduct. The policy was 

 developed by the National Science and Technology Council (65 FR 76260). The DOC 

 requires that any allegation be submitted to the Grants Officer, who will also notify the 

 OIG of such allegation. Generally, the recipient organization shall investigate the 

 allegation and submit its findings to the Grants Officer. The DOC may accept the 

 recipient’s findings or proceed with its own investigation. The Grants Officer shall 

 inform the recipient of the DOC’s final determination. 

 .11 Publications, Videos and Acknowledgement of Sponsorship 

 Publication of the results or findings of a research project in appropriate professional 

 journals and production of video or other media is encouraged as an important method of 

 recording and reporting scientific information. It is also a constructive means to expand 

 access to federally funded research. The recipient is required to submit a copy to the 

 funding agency and when releasing information related to a funded project include a 

 statement that the project or effort undertaken was or is sponsored by DOC. The 

 recipient is also responsible for assuring that every publication of material (including 

 Internet sites and videos) based on or developed under an award, except scientific articles 

 or papers appearing in scientific, technical or professional journals, contains the 

 following disclaimer: “This [report/video] was prepared by [recipient name] under award 

 [number] from [name of operating unit], U.S. Department of Commerce. The statements, 

 findings, conclusions, and recommendations are those of the author(s) and do not 

 necessarily reflect the views of the [name of operating unit] or the U.S. Department of 

 Commerce.” This also applies to videos produced under DOC financial assistance 

 awards. 

 .12 Care and Use of Live Vertebrate Animals 

 Recipients must comply with the Laboratory Animal Welfare Act of 1966 (Public Law 

27 
 89-544), as amended, (7 U.S.C. §§ 2131 et seq.) (animal acquisition, transport, care, 

 handling, and use in projects), and implementing regulations, 9 CFR Parts 1, 2, and 3; the 

 Endangered Species Act (16 U.S.C. §§ 1531 et seq.); Marine Mammal Protection Act (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 

 (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. No 

 research involving vertebrate animals is permitted under any DOC financial assistance 

 award unless authorized by the Grants Officer. 

 .13 Homeland Security Presidential Directive – 12 

 If the performance of a grant award requires recipient organization personnel to have 

 unsupervised physical access to a Federally controlled facility for more than 180 days or 

 access to a Federal information system, such personnel must undergo the personal 

 identity verification credential process. In the case of foreign nationals, the DOC will 

 conduct a check with U.S. Citizenship and Immigration Services' (USCIS) Verification 

 Division, a component of the Department of Homeland Security (DUS), to ensure the 

 individual is in a lawful immigration status and that they are eligible for employment 

 within the US. Any items or services delivered under a financial assistance award shall 

 comply with the Department of Commerce personal identity verification procedures that 

 implement Homeland Security Presidential Directive -12, FIPS PUB 201, and OMB 

 Memorandum M-05-24. The recipient shall insert this clause in all subawards or 

 contracts when the subaward recipient or contractor is required to have physical access to 

 a Federally controlled facility or access to a Federal information system. 

 .14 Compliance with Department of Commerce Bureau of Industry and Security 

 Export Administration Regulations 

 a. This clause applies to the extent that this financial assistance award involves access to 

 export-controlled information or technology. 

 b. In performing this financial assistance award, the recipient may gain access to export- 

 controlled information or technology. The recipient is responsible for compliance 

 with all applicable laws and regulations regarding export-controlled information and 

 technology, including deemed exports. The recipient shall establish and maintain 

 throughout performance of the financial assistance award effective export compliance 

 procedures at non-DOC facilities. At a minimum, these export compliance 

 procedures must include adequate controls of physical, verbal, visual and electronic 

 access to export-controlled information and technology. 

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 c. Definitions 

 1. Deemed Export. The Export Administration Regulations (EAR) define a deemed 

 export as any release of technology or source code subject to the EAR to a foreign 

 national, both in the United States and abroad. Such release is “deemed” to be an 

 export to the home country of the foreign national. 15 CFR § 734.2(b)(2)(ii). 

 2. Export-controlled information and technology. Export-controlled information and 

 technology subject to the EAR (15 CFR §§ 730-774), implemented by the DOC 

 Bureau of Industry and Security, or the International Traffic In Arms Regulations 

 (ITAR) (22 CFR §§ 120-130), implemented by the Department of State, 

 respectively. This includes, but is not limited to, dual-use items, defense articles 

 and any related assistance, services, software or technical data as defined in the 

 EAR and ITAR. 

 d. The recipient shall control access to all export-controlled information and technology 

 that it possesses or that comes into its possession in performance of this financial 

 assistance award, to ensure that access is restricted, or licensed, as required by 

 applicable Federal laws, Executive Orders, and/or regulations. 

 e. Nothing in the terms of this financial assistance award is intended to change, 

 supersede, or waive the requirements of applicable Federal laws, Executive Orders or 

 regulations. 

 f. The recipient shall include this clause, including this paragraph (f), in all lower tier 

 transactions (subawards, contracts, and subcontracts) under this financial assistance 

 award that may involve access to export-controlled information technology. 

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

 and the implementing regulations at 2 CFR Part 175. 

 This Act authorizes termination of financial assistance provided to a private entity, 

 without penalty to the Federal Government, if the recipient or subrecipient engages in 

 certain activities related to trafficking in persons. 

 .16 The Federal Funding Accountability and Transparency Act of 2006 (Pub. L. No. 

 109-282). 

 This Act requires that the Federal government establish a single searchable awards 

 website by January 1, 2008 to enable the public to see where Federal funds for grant 

 and contract awards are being spent. Subaward and subcontract data will be required 

 on the website by January 1, 2009. Funding data retroactive to October 1, 2006 must 

 be reported by all Federal agencies and their recipient and subrecipient organizations. 

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30 

 Data elements will include: 

 Name of entity receiving award; 

 Award amount; 

 Transaction type, funding agency, Catalog of Federal Domestic Assistance 

 Number, and descriptive award title; 

 Location of: entity, primary location of performance 

 (City/State/Congressional District/Country; and 

 Unique identifier of entity. 

 The data will be required within 30 days of an award. The DOC will be implementing 

 this Act, which will require recipients and subrecipients to report the required data.