Source: https://www.federalregister.gov/documents/2000/04/27/00-9399/uniform-administrative-requirements-for-grants-and-agreements-with-institutions-of-higher-education
Timestamp: 2018-08-14 20:10:39
Document Index: 70212564

Matched Legal Cases: ['art 435', 'art 435', 'art 74', 'art 74', 'art 74', 'art 435', 'art 74', 'art 435', 'art 435', 'art 74', 'art 74', 'art 435', 'art 435', 'art 74', 'art 435', '§\u2009435', 'art 435', '§\u2009435', '§\u2009435', '§\u2009435', 'arts 247', 'art 205', 'art 223', '§\u2009435', 'art 223', 'art 60', 'art 3', 'art 5', 'art 5', 'art 401']

A Proposed Rule by the Social Security Administration on 04/27/2000
To be sure your comments are considered, we must receive them no later than June 26, 2000.
24767-24786 (20 pages)
II. Proposed Differences Between Part 435 and Circular A-110
III. Proposed Differences Between Part 435 and 45 CFR Part 74
https://www.federalregister.gov/d/00-9399 https://www.federalregister.gov/d/00-9399
The proposed rule would create a new Part in the Code of Federal Regulations. The new part would provide standards in the administration of grants and agreements with institutions of higher education, hospitals, other non-profit organizations, and commercial organizations.
The Social Security Independence and Program Improvements Act of 1994, enacted August 15, 1994, established SSA as an independent agency separate from the Department of Health and Human Services (HHS), effective March 31, 1995. To implement its own set of grants regulations, SSA proposes to codify almost verbatim the text of the Office of Management and Budget (OMB) Circular Number A-110 “Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-profit Organizations.” These regulations would establish SSA grants regulations, separate from the HHS regulations. We plan to publish additional regulations on the subject of grants at a future date.
Comments should be submitted in writing to the Commissioner of Social Security, P.O. Box 1585, Baltimore, Maryland 21235-6401. Comments may be sent by telefax to (410) 966-2830, sent by E-mail to “regulations@ssa.gov,” or delivered to the Social Security Administration, 2109 West Low Rise Building, 6401 Security Boulevard, Baltimore, MD 21235-6401, between 8:00 a.m. and 4:30 p.m. on regular business days. Comments may be inspected during these same hours by making arrangements with the contact person shown below. The electronic file of this document is available on the Internet at www.access.gpo.gov/​su docs/aces/aces140.htm at 6:00 a.m. on the date of publication in the Federal Register. It is also available on the Internet site for SSA (i.e., SSA Online), http://www.ssa.gov/​.
E. Joe Smith, Grants Management Officer, Office of Operations Contracts and Grants, Office of Acquisition and Grants, SSA, 1710 Gwynn Oak Ave., Baltimore, MD 21207-5279; telephone (410) 965-9503; fax (410) 966-9310.
Except as provided therein, the standards set forth in the Circular are applicable to all Federal agencies. If any statute specifically prescribes policies or specific requirements that differ from the standards provided in the Circular, the provisions of the statute shall govern. Federal agencies must apply the provisions of the Circular in making awards to the covered entities. Recipients must apply the provisions of the Circular to subrecipients performing substantive work under grants and agreements that are passed through or awarded by the primary recipient, if such subrecipients are organizations that are covered entities. The Circular does not apply to grants, contracts, or other agreements between the Federal Government and units of State or local governments covered by OMB Circular A-102, “Grants and Cooperative Agreements with State and Local Governments.” And, it does not apply to the Federal agencies' grants management common rule that standardized and codified the administrative requirements Federal agencies impose on State and local grantees. In addition, the Circular does not cover subawards and contracts to State or local governments. However, the Circular applies to subawards made by State and local governments to organizations covered by the Circular. Federal agencies may apply the provisions of the Circular to commercial organizations, foreign governments, organizations under the jurisdiction of foreign governments, and international organizations.
HHS applies the provisions of Circular A-110 in making awards to institutions of higher education, hospitals, other non-profit organizations, and commercial organizations through its regulations at 45 CFR part 74. Prior to March 31, 1995, SSA was an operating component of HHS. As a result of Public Law 103-296, SSA became an independent agency on Start Printed Page 24769March 31, 1995. However, pursuant to section 106(b) of that law, the HHS regulations at 45 CFR part 74 have remained applicable to SSA. In order to implement our own set of grant regulations, we propose to adopt almost verbatim the text of Circular A-110. The result will be the SSA grants administration regulations at 20 CFR part 435. HHS regulations at 45 CFR part 74 will cease to be applicable to SSA on the effective date of these regulations, in accordance with section 106(b) of Public Law 103-296.
SSA's new part 435 at 20 CFR will be similar to OMB Circular A-110. Consistent with the guidance provided in Circular A-110, this rule will apply to SSA awards made to institutions of higher education, hospitals, other non-profit organizations, and commercial organizations. When appropriate, this rule will also apply to foreign governments, organizations under the jurisdiction of foreign governments, and international organizations. The proposed rule does not apply to grants under programs commonly referred to as “entitlement programs.”
As noted above, OMB directed each affected agency to promulgate its own rules adopting the provisions of the Circular. Any exceptions or deviations, unless required by Federal statute, require OMB approval. Therefore, in support of OMB's desired uniformity, this proposed rule incorporates the provisions and language of revised Circular A-110, “Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations,” published by OMB on November 29, 1993 (58 FR 62992), as further amended August 29, 1997 (62 FR 45934) and November 8, 1999 (64 FR 54926).
The proposed rule contains a “SUBPART E—DISPUTES,” which sets forth the SSA appeal process for disputes arising under SSA grants and agreements. OMB Circular A-110 does not contain an appeal process for disputes.
Also, the proposed rule contains the following clarifying language and updates to procedures:
A. To be less generic and more agency specific, where appropriate, the terms “federal awarding agency(ies)” have been replaced by “SSA”.
B. In support of the plain language initiative, throughout the proposed rule, the word “shall” has been replaced by “must” or “will.” Our reason for this change is, the term “shall” sounds especially legalistic and could be open to interpretation. Also, in the interest of making it easier for users to locate material, we have used identifying labels for many of our first level paragraphs (i.e., a, b, c).
C. To be consistent with section 4(11) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(11)), as amended by section 4001 of the Federal Acquisition Streamlining Act of 1994 (FASA), Pub. L. 103-355, the following updates have been made:
Sections 435.2 (definition for “Small awards”); 435.44(e)(2), (3), (4) and (5); 435.46; 435.48(a) (b) and (d); and Appendix A, “Debarment and Suspension” (paragraph 8) have been updated to replace the term “small purchase threshold” with the term “simplified acquisition threshold.” And, where appropriate, the current threshold dollar amount of $100,000 is reflected (instead of $25,000).
D. According to FASA, the threshold for the requirement to include the provision for compliance with sections 102 and 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333) has been raised to $100,000. This update has been made in Appendix A.
E. Under the statute commonly referred to as the Byrd Anti-Lobbying Amendment, 31 U.S.C. 1352, the disclosure requirements apply to organizations that apply or bid for an award exceeding $100,000 (not $100,000 or more). This correction has been made in Appendix A.
In order to mirror the provisions and language of the Circular, SSA's proposed 20 CFR part 435 deviates from 45 CFR part 74. Also, Part 74's Subpart E (Special Provisions for Awards to Commercial Organizations) is not included in Part 435. We believe, however, the omission of this subpart will not have a negative effect on the quality and administration of the SSA grants program. The provisions of Subpart E are not needed in Part 435. Unless SSA provides otherwise in the terms and conditions of the award, and except where provided under the provisions of Circular A-110, SSA will make no distinction between awards to commercial organizations and awards to its other grantee organizations covered by the Circular.
Additionally, Part 74's “Subpart F-Disputes” is not included in the proposed rule. Instead, as noted in section II, above, the proposed rule contains a “SUBPART E—DISPUTES,” which sets forth the SSA appeal process for disputes arising under SSA grants and agreements.
We have consulted with the Office of Management and Budget (OMB) and have determined that these proposed rules do not meet the criteria for a significant regulatory action under Executive Order 12866. Thus, they are not subject to OMB review.
We certify that these proposed rules, if promulgated, will not have a significant economic impact on a substantial number of small entities because they merely reflect the adoption of existing grant policies and procedures by SSA and do not promulgate any new policies or procedures which would impact the public. Therefore, a regulatory flexibility analysis as provided in the Regulatory Flexibility Act, as amended, is not required.
These proposed rules contain reporting requirements in 20 CFR part 435 in §§ 435.12, 435.22 and 435.52. However, the reporting forms specified in these sections have already been approved by the Office of Management and Budget and, therefore, we are not seeking approval of the reporting requirements in these sections. The forms are as follows: SF-269, SF-269A, SF-424, SF-270, SF-271 and SF-272.
The proposed regulation contains additional reporting and recordkeeping requirements in the sections listed below. As required by the Paperwork Reduction Act of 1995, we have Start Printed Page 24770submitted the information requirements to the Office of Management and Budget (OMB) for its review. Organizations and individuals desiring to submit comments on these requirements should direct them to the Office of Information and Regulatory Affairs, OMB, New Executive Office Building, Room 10235, Washington, D.C. 20503, ATTENTION: OMB Desk Officer for SSA.
Following is a table of the reporting (Rpt) and recordkeeping (Rec-kp) burdens imposed on the public:
435.21 (Rec-kp) 1 N/A 40 40
435.23 (Rec-kp) 7 Monthly 1 84
435.25 (Rpt) 14 Biannually 4 112
435.33 (Rpt) 1 Annually 1 1
435.44 (Rpt) 1 Annually 2 2
435.51 (Rpt) 17 Quarterly 12 816
435.53 (Rec-kp) 17 Annually 8 136
435.81 (Rpt) 1 Annually 16 16
435.82 (Rpt) 1 Annually 8 8
Total estimated annual burden: 1215
The public burden includes the time it will take to understand what is needed, gather the necessary facts, and provide the information or maintain the specified records. If you have any comments or suggestions on the estimates, write to the Social Security Administration, ATTN: Reports Clearance Officer, 1-A-21 Operations Building, Baltimore, MD 21235.
Minimize the burden of the collection of information on those who are to respond including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques, or other forms of information technology (e.g., permitting electronic submission of responses).”
(Catalog of Federal Domestic Assistance Program No. 96.007—Social Security—Research and Demonstration)
For the reasons set out in the preamble, we propose to add a new Part 435 to Chapter III of Title 20 of the Code of Federal Regulations to read as follows:
Start Printed Page 24771 Subpart E—Disputes
This Part establishes SSA's administrative requirements for SSA grants and agreements awarded to institutions of higher education, hospitals, other non-profit organizations, and commercial organizations. The regulations in this part do not differ from the uniform regulations published in OMB Circular A-110 except as provided in §§ 435.4 and 435.14. Non-profit organizations that implement Federal programs for the States are also subject to State requirements. For availability of OMB circulars, see 5 CFR 1310.3.
(1) Earnings during a given period from—
(c) Acquisition cost of equipment means the net invoice price of the equipment, including the cost of modifications, attachments, accessories, or auxiliary apparatus necessary to make the property usable for the purpose for which it was acquired. Other charges, such as the cost of installation, transportation, taxes, duty or protective in-transit insurance, must be included or excluded from the unit acquisition cost in accordance with the recipient's regular accounting practices.
(g) Closeout means the process by which SSA determines that all applicable administrative actions and all required work of the award have been completed by the recipient and SSA.
(j) Date of completion means the date on which all work under an award is completed or the date on the award document, or any supplement or amendment thereto, on which SSA sponsorship ends.
(m) Excess property means property under the control of SSA that, as determined by the head thereof, is no longer required for its needs or the discharge of its responsibilities.
(n) Exempt property means tangible personal property acquired in whole or in part with Federal funds, where SSA has statutory authority to vest title in the recipient without further obligation to the Federal Government. An example of exempt property authority is contained in the Federal Grant and Cooperative Agreement Act (31 U.S.C. 6306), for property acquired under an award to conduct basic or applied research by a non-profit institution of higher education or non-profit organization whose principal purpose is conducting scientific research.
(o) SSA means the Federal agency that provides an award to the recipient.
(u) Outlays or expenditures means charges made to the project or program. They may be reported on a cash or accrual basis.
(v) Personal property means property of any kind except real property. It may Start Printed Page 24772be tangible, having physical existence, or intangible, having no physical existence, such as copyrights, patents, or securities.
(w) Prior approval means written approval by an authorized SSA official evidencing prior consent.
(x) Program income means gross income earned by the recipient that is directly generated by a supported activity or earned as a result of the award (see exclusions in §§ 435.24(e) and (h)). Program income includes, but is not limited to, income from fees for services performed, the use or rental of real or personal property acquired under federally-funded projects, the sale of commodities or items fabricated under an award, license fees and royalties on patents and copyrights, and interest on loans made with award funds. Interest earned on advances of Federal funds is not program income. Except as otherwise provided in SSA regulations or the terms and conditions of the award, program income does not include the receipt of principal on loans, rebates, credits, discounts, etc., or interest earned on any of them.
(cc) Recipient means an organization receiving financial assistance directly from SSA to carry out a project or program. The term includes public and private institutions of higher education, public and private hospitals, and other quasi-public and private non-profit organizations such as, but not limited to, community action agencies, research institutes, educational associations, and health centers. The term may include commercial organizations, foreign or international organizations (such as agencies of the United Nations) which are recipients, subrecipients, or contractors or subcontractors of recipients or subrecipients at the discretion of SSA. The term does not include government-owned contractor-operated facilities or research centers providing continued support for mission-oriented, large-scale programs that are government-owned or controlled, or are designated as federally-funded research and development centers.
(ee) Small awards means a grant or cooperative agreement not exceeding the simplified acquisition threshold fixed at 41 U.S.C. 403(11) (currently $100,000).
(ii) Suspension means an action by SSA that temporarily withdraws Federal sponsorship under an award, pending corrective action by the recipient or pending a decision to terminate the award by SSA. Suspension of an award is a separate action from suspension under Federal agency regulations implementing Executive Orders 12549 and 12689, “Debarment and Suspension.”
(mm) Unobligated balance means the portion of the funds authorized by SSA that has not been obligated by the recipient and is determined by deducting the cumulative obligations from the cumulative funds authorized.
For awards subject to this Part, all administrative requirements of codified program regulations, program manuals, handbooks and other nonregulatory materials which are inconsistent with the requirements of this Part are superseded, except to the extent they are required by statute, or authorized in accordance with the deviations provision in § 435.4.
The Office of Management and Budget (OMB) may grant exceptions for classes of grants or recipients subject to the Start Printed Page 24773requirements of this Part when exceptions are not prohibited by statute. However, in the interest of maximum uniformity, exceptions from the requirements of this Part will be permitted only in unusual circumstances. SSA may apply more restrictive requirements to a class of recipients when approved by OMB. SSA may apply less restrictive requirements when awarding small awards, except for those requirements which are statutory. Exceptions on a case-by-case basis may also be made by SSA.
Unless sections of this Part specifically exclude subrecipients from coverage, the provisions of this Part will be applied to subrecipients performing work under awards if such subrecipients are institutions of higher education, hospitals, other non-profit, or commercial organizations.
Any State agency or agency of a political subdivision of a State which is using appropriated Federal funds must comply with section 6002 of the Resource Conservation and Recovery Act (RCRA) (Public Law 94-580; 42 U.S.C. 6962). Section 6002 requires that preference be given in procurement programs to the purchase of specific products containing recycled materials identified in guidelines developed by the Environmental Protection Agency (EPA) (40 CFR parts 247-254). Accordingly, State and local institutions of higher education, hospitals, and non-profit organizations that receive direct Federal awards or other Federal funds must give preference in their procurement programs funded with Federal funds to the purchase of recycled products pursuant to the EPA guidelines.
Sections 435.21 through 435.28 prescribe standards for financial management systems, methods for making payments and rules for: satisfying cost sharing and matching requirements, accounting for program Start Printed Page 24774income, budget revision approvals, making audits, determining allowability of cost, and establishing fund availability.
(5) Written procedures to minimize the time elapsing between the transfer of funds to the recipient from the U.S. Treasury and the issuance or redemption of checks, warrants or payments by other means for program purposes by the recipient. To the extent that the provisions of the Cash Management Improvement Act (CMIA) (Pub. L. 101-453; 31 U.S.C. 6501) govern, payment methods of State agencies, instrumentalities, and fiscal agents must be consistent with CMIA Treasury-State Agreements or the CMIA default procedures codified at 31 CFR part 205, “Withdrawal of Cash from the Treasury for Advances under Federal Grant and Other Programs.”
(e) Obtaining bonds. Where bonds are required in the situations described above, the bonds must be obtained from companies holding certificates of authority as acceptable sureties, as prescribed in 31 CFR part 223, “Surety Companies Doing Business with the United States.”
(d) How to request advance payment. Requests for Treasury check advance payment must be submitted on SF-270, “Request for Advance or Reimbursement,” or other forms as may be authorized by OMB. This form is not to be used when Treasury check advance payments are made to the recipient automatically through the use of a predetermined payment schedule or if precluded by special SSA instructions for electronic funds transfer.
(2) Recipients will be authorized to submit request for reimbursement at least monthly when electronic funds transfers are not used.
(g) Requesting additional cash payments. To the extent available, recipients must disburse funds available Start Printed Page 24775from repayments to and interest earned on a revolving fund, program income, rebates, refunds, contract settlements, audit recoveries and interest earned on such funds before requesting additional cash payments.
(h) Withholding of payments. Unless otherwise required by statute, SSA will not withhold payments for proper charges made by recipients at any time during the project period unless paragraph (h) (1) or (2) of this section apply.
(j) Use of women-owned and minority-owned banks. Consistent with the national goal of expanding the opportunities for women-owned and minority-owned business enterprises, recipients will be encouraged to use women-owned and minority-owned banks (a bank which is owned at least 50 percent by women or minority group members).
(k) Use of interest bearing accounts. Recipients must maintain advances of Federal funds in interest bearing accounts, unless paragraph (k) (1), (2) or (3) of this section apply.
(f) Donated supplies may include such items as expendable equipment, office supplies, laboratory supplies or workshop and classroom supplies. Value assessed to donated supplies included in the cost sharing or matching Start Printed Page 24776share must be reasonable and may not exceed the fair market value of the property at the time of the donation.
(d) When the use of program income is not specified. In the event that SSA does not specify in its regulations or the terms and conditions of the award how program income is to be used, paragraph (b)(3) of this section will apply automatically to all projects or programs except research. For awards that support research, paragraph (b)(1) of this section will apply automatically unless SSA indicates in the terms and conditions another alternative on the award or the recipient is subject to special award conditions, as indicated in § 435.14.
(8) Unless described in the application and funded in the approved awards, the subaward, transfer or Start Printed Page 24777contracting out of any work under an award. This provision does not apply to the purchase of supplies, material, equipment or general support services.
(4) For awards that support research, unless SSA provides otherwise in the award or in the SSA regulations, the prior approval requirements described in paragraph (e) of this section are automatically waived (i.e., recipients need not obtain such prior approvals) unless one of the conditions included in paragraph (e)(2) of this section applies.
Where a funding period is specified, a recipient may charge to the grant only allowable costs resulting from obligations incurred during the funding period and any pre-award costs authorized by SSA. Start Printed Page 24778
(ii) Manufacturer's serial number, model number, Federal stock number, national stock number, or other identification number. Start Printed Page 24779
(2) If the recipient is instructed to ship the equipment elsewhere, the recipient will be reimbursed by the Federal Government by an amount which is computed by applying the percentage of the recipient's participation in the cost of the original project or program to the current fair market value of the equipment, plus any reasonable shipping or interim storage costs incurred.
(3) If the recipient is instructed to otherwise dispose of the equipment, the recipient will be reimbursed by SSA for such costs incurred in its disposition.
(d) FOIA requests for research data. (1) In addition, in response to a Freedom of Information Act (FOIA) request for research data relating to published research findings produced under an award that were used by the Federal Government in developing an agency action that has the force and effect of law, SSA shall request, and the recipient shall provide, within a reasonable time, the research data so that they can be made available to the public through the procedures Start Printed Page 24780established under the FOIA. If SSA obtains the research data solely in response to a FOIA request, SSA may charge the requester a reasonable fee equaling the full incremental cost of obtaining the research data. This fee should reflect costs incurred by SSA, the recipient, and applicable subrecipients. This fee is in addition to any fees SSA may assess under the FOIA (5 U.S.C. 552(a)(4)(A)).
Sections 435.41 through 435.48 set forth standards for use by recipients in establishing procedures for the procurement of supplies and other expendable property, equipment, real property and other services with Federal funds. These standards are furnished to ensure that such materials and services are obtained in an effective manner and in compliance with the provisions of applicable Federal statutes and executive orders. No additional procurement standards or requirements may be imposed by SSA upon recipients, unless specifically required by Federal statute or executive order or approved by OMB.
The recipient must maintain written standards of conduct governing the performance of its employees engaged in the award and administration of contracts. No employee, officer, or agent may participate in the selection, award, or administration of a contract 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 which employs or is about to employ any of the parties indicated herein, has a financial or other interest in the firm selected for an award. The officers, employees, and agents of the recipient may neither solicit nor accept gratuities, favors, or anything of monetary value from contractors, or parties to subagreements. However, recipients 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 must provide for disciplinary actions to be applied for violations of such standards by officers, employees, or agents of the recipient.
(a) All recipients must establish written procurement procedures. These procedures must provide for, at a minimum, that paragraphs (a) (1), (2), and (3) of this section apply.
(i) A clear and accurate description of the technical requirements for the material, product or service to be procured. In competitive procurements, such a description may not contain Start Printed Page 24781features which unduly restrict competition.
(1) A bid guarantee from each bidder equivalent to five percent of the bid Start Printed Page 24782price. 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 his bid, execute such contractual documents as may be required within the time specified.
(4) Where bonds are required in the situations described herein, the bonds must be obtained from companies holding certificates of authority as acceptable sureties pursuant to 31 CFR part 223, “Surety Companies Doing Business with the United States.”
(f) Recipients must immediately notify SSA of developments that have a significant impact on the award-supported activities. Also, notification must be given in the case of problems, delays, or adverse conditions which materially impair the ability to meet the objectives of the award. This notification must include a statement of the action taken or contemplated, and any assistance needed to resolve the situation.
(iv) Recipients are required to submit not more than the original and two copies of the SF-272 15 calendar days following the end of each quarter. SSA may require a monthly report from those Start Printed Page 24783recipients receiving advances totaling $1 million or more per year.
(B) If, in SSA's opinion, the recipient's accounting controls are adequate to minimize excessive Federal advances; or
(4) SSA may accept the identical information from the recipients in machine readable format or computer printouts or electronic outputs in lieu of prescribed formats.
(a) Awards may be terminated in whole or in part only under the following circumstances—
(c) Effects of suspension and termination. Costs of a recipient resulting from obligations incurred by the recipient during a suspension or after termination of an award are not allowable unless SSA expressly authorizes them in the notice of suspension or termination or subsequently. Other recipient costs during suspension or after termination which are necessary and not reasonably avoidable are allowable if—
(1) initial appeal to the Associate Commissioner for the Office of Acquisition and Grants (ACOAG) from an adverse decision rendered by the Grants Management Officer (GMO); and
(3) A denial of a noncompeting continuation award under the project period system of funding where the denial is for failure to comply with the Start Printed Page 24785terms and conditions of a previous award.
1. Equal Employment Opportunity— All contracts must contain a provision requiring compliance with Executive Order 11246, “Equal Employment Opportunity,” as amended by Executive Order 11375, “Amending Executive Order 11246 Relating to Equal Employment Opportunity,” and as supplemented by regulations at 41 CFR part 60, “Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.”
2. Copeland “Anti-Kickback” Act (18 U.S.C. 874 and 40 U.S.C. 276c)— All contracts and subgrants in excess of $2000 for construction or repair awarded by recipients and subrecipients must include a provision for compliance with the Copeland “Anti-Kickback” Act (18 U.S.C. 874), as supplemented by Department of Labor regulations (29 CFR part 3, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or subrecipient will be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he is otherwise entitled. The recipient must report all suspected or reported violations to the Federal awarding agency.
3. Davis-Bacon Act, as amended (40 U.S.C. 276a to a-7)— When required by Federal program legislation, all construction contracts awarded by the recipients and subrecipients of more than $2000 must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 276a to a-7) and as supplemented by Department of Labor regulations (29 CFR part 5, “Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction”). Under this Act, contractors are required to pay wages to laborers and mechanics at a rate not less than the minimum wages specified in a wage determination made by the Secretary of Labor. In addition, contractors are required to pay wages not less than once a week. The recipient must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation and the award of a contract will be conditioned upon the acceptance of the wage determination. The recipient must report all suspected or reported violations to the Federal awarding agency.
4. Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333)— Where applicable, all contracts awarded by recipients in excess of $100,000 for construction contracts and for other contracts that involve the employment of mechanics or laborers must include a provision for compliance with Sections 102 and 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333), as supplemented by Department of Labor regulations (29 CFR part 5). Under Section 102 of the Act, each contractor is 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 11/2 times the basic rate of pay for all hours worked in excess of 40 hours in the work week. Section 107 of the Act is applicable to construction work and provides that no laborer or mechanic will 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.
5. Rights to Inventions Made Under a Contract or Agreement— Contracts or agreements for the performance of experimental, developmental, or research work must provide for the rights of the Federal Government and the recipient in any resulting invention in accordance with 37 CFR part 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Start Printed Page 24786Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by the awarding agency.
6. Clean Air Act (42 U.S.C. 7401 et seq.) and the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.), as amended— Contracts and subgrants of amounts in excess of $100,000 must contain a provision that requires the recipient to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401 et seq.) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251 et seq.). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).
7. Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)— Contractors who apply or bid for an award of more than $100,000 must file the required certification. Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier must also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the recipient.
8. Debarment and Suspension (Executive Orders 12549 and 12689)— No contract will be made to parties listed on the General Services Administration's List of Parties Excluded from Federal Procurement or Nonprocurement Programs in accordance with Executive Orders 12549 and 12689, “Debarment and Suspension.” This list contains the names of parties debarred, suspended, or otherwise excluded by agencies, and contractors declared ineligible under statutory or regulatory authority other than Executive Order 12549. Contractors with awards that exceed the simplified acquisition threshold must provide the required certification regarding its exclusion status and that of its principal employees.
[FR Doc. 00-9399 Filed 4-26-00; 8:45 am]