HomeMy WebLinkAboutThe Nature Conservancy (2)
LORI HULSE MONTEFUSCO
ASSISTANT TOWN ATTORNEY
lori.montefusco@town.southold.ny.us
SCOTr A. RUSSELL
Supervisor
PATRICIA A. FINNEGAN
TOWN ATTORNEY
patricia.finnegan@town.southold.ny.us
KIERAN M. CORCORAN
ASSISTANT TOWN ATTORNEY
kieran.corcoran@town.southold.ny.us
Town Hall Annex, 54375 Route 25
P.O. Box 1179
Southold, N ew York 11971-0959
Telephone (631) 765-1939
Facsimile (631) 765-6639
OFFICE OF THE TOWN ATTORNEY
TOWN OF SOUTH OLD
MEMORANDUM
To:
Elizabeth A. Neville, Town Clerk
From:
Lynne Krauza
Secretary to the Town Attorney
Date:
May 19, 2006
Subject:
Piping Plover Management Contract
Beach-Dependent Species Management Program
Attached is an original, fully executed Contract between the Town of
Southold and The Nature Conservancy in connection with the referenced matter
for your records.
Ilk
Enclosure
The ..tit
NatureII'
conservancy~
CONTRACT FOR SERVICES
Please note that a routing sheet or checklist should
accompany allfirst drafts of contracts addressing the issues of
employees, government grants, etc.
CONTRACT NUMBER: LIC 2005 05-04-05 E
ACCOUNTING INFORMATION
FEET on the Ground
Cost Center Name:
Cost Center Number: 1320203800
THIS IS A CONTRACT BETWEEN THE
NATURE CONSERVANCY, ACTING
THROUGH ITS:
Conservancy OfficelDepartment: Long Island Chapter
Address: 250 Lawrence Hill Road, Cold Spring Harbor, NY 11724
Name and Title of Contact: Ioe Iaunsen, Coastal Resources Manager
Telephone: (631) 367-3225
(HEREAFTER THE "CONSERVANCY"
OR "TNC") and:
Name of Contractor: Town of South old
Address: 53095 Main Road, Southold, NY 11971
Name and Title of Contact: Scott Russell, Town of South old Supervisor
Telephone: (631) 765-1892
Social Security or Tax Payer ill #:
ACTING AS AN INDEPENDENT CONTRACTOR (HEREAFTER "CONTRACTOR").
THE CONSERVANCY AND THE CONTRACTOR (collectively, the "Parties" and each a "Party") AGREE AS
FOLLOWS:
1. CONTRACTOR'S DUTIES. The Contractor, who represents that the Contractor is qualified and willing to
perform the services described below as an independent contractor, shall:
The Town of Southold will establish a new beach-dependent species management program by funding
staff, equipment and tools.
Funding will provide the Town of Southold with the seed money necessary to assume beach dependent
species management program. These programs will eventually lead to hiring seasonal stewards to locate, post,
fence, and monitor beach nesting birds and rare coastal plant sites on Long Island, and purchase equipment,
including binoculars, fencing materials, and necessary tools.
The Town of South old will utilize this funding to hire at least one seasonal steward by April 1st each
season.
The Town of South old will identify a single Point of Contact (POC).
POC to meet with TNC's Coastal Resources Manager on a maximum of a bi-weekly basis.
POC to provide TNC with progress reports upon request.
Rev. 10/01
POC to provide a report of all activities associated with this agreement by June IS of each year.
POC to provide a report of all activities associated with this agreement by September IS of each year.
TNC to provide pre-, post-, and during-season training and on-site assistance to advise on management
issues, resolve questions regarding the USFWS guidelines, assist in concise data gathering, and advise on private
landowner relations.
If any of the services are to be performed on land that is owned by neither the Contractor nor the Conservancy, the
Contractor shall be responsible for obtaining the landowner's prior permission before entering upon such land.
2. PAYMENTS.
A Compensation. For all of the services described above and all goods and materials supplied by the
Contractor, the Conservancy shall pay the Contractor a fixed price total of$ 16.000.00
Payments will be made according to the following schedule:
Down payment: $ 3,500.00
2nd payment: $ 3,500.00
3,d payment: $ 1,000.00
4th payment: $ 3,500.00
5th payment: $ 3,500.00
6th and final pavment: $ 1.000.00
Total $ 16,000.00
within 10 business day of contract signing
Upon receipt of mid-season report due June IS, 2006
Upon receipt of end of season report due September IS, 2006
At Start of Season March I, 2007
Upon receipt of mid-season report due June 15,2007
Upon receipt of end of season report due September 15.2007
B Terms of Pavment: Invoices for services must be presented to the Conservancy before payments can
be made to the Contractor in accordance with the payment schedule above. The Conservancy shall pay the
Contractor within thirty (30) days after the Conservancy receives an invoice and accepts the services
performed under the Contract. Payment will be sent from Worldwide Office
3. TERM OF CONTRACT. This Contract shall begin on Mav 4.2006 ("Commencement Date") and shall
remain in effect until March I. 2008 ("Expiration Date"), or until the work required is satisfactorily completed,
whichever comes first. Any extension beyond the Expiration Date must be in writing and signed by the
Conservancy.
4. PERFORMANCE OF WORK. The Contractor is qualified and willing to perform the services described
above as an independent contractor in accordance with the highest standards of the Contractor's profession or
craft and to the satisfaction of the Conservancy. The Contractor shall not be paid for any work found by the
Conservancy to be unsatisfactory.
5. LIABILITYIINSURANCE. The work to be performed under this Contract shall be performed entirely at the
Contractor's risk. The Contractor agrees to indemnify and hold the Conservancy harmless for any and all
liability or loss arising in any way out of the performance of this Contract. The Contractor shall carry
appropriate workers' compensation, hazard and liability insurance coverage written on an occurrence basis
during the term of this Contract. Upon request from the Conservancy, the Contractor shall have the
Conservancy named as an additional insured on the Contractor's policy and provide the Conservancy with
evidence that the appropriate insurance coverage is in effect.
6. TERMINATION AND REMEDIES. The Conservancy may cancel this Contract at any time upon two weeks
written notice. Should this occur, payment for work satisfactorily completed shall be adjusted accordingly. In
addition, if the Contractor defaults in performance of the Contractor's duties under this Contract, whether for
circumstances within or beyond the control of the Contractor, the Conservancy may immediately terminate this
Contract by written notice to the Contractor. Should termination occur as a result of the Contractor's default,
the Conservancy shall be entitled to damages from the Contractor resulting from the Contractor's default and
shall be entitled to offset any amounts payable to the Contractor for work satisfactorily completed against such
Rev. 1 % 1
2
damages. The balance of amounts payable to the Contractor for work satisfactorily completed, if any, shall be
paid to the Contractor. Notice shall be given to addresses mentioned on Page 1.
7. INDEPENDENT CONTRACTOR. The Parties intend that an independent Contractor-client relationship will
be created by this Contract. The conduct and control of the work will lie solely within the purview of the
Contractor. The Contractor is not to be considered an agent or employee of the Conservancy for any purpose,
and no joint venture or principal-agent relationship exists. The Contractor and employees of the Contractor are
not entitled to any of the benefits that the Conservancy provides for its employees. Neither the Conservancy nor
the Contractor shall have any right, power, or authority to create any obligation, expressed or implied on behalf
of the other.
8. ASSIGNMENT/SUBCONTRACT. The Contractor may not assign or transfer this Contract or subcontract for
the work to be performed without prior written consent of the Conservancy.
9. OWNERSHIP OF DOCUMENTS AND DATA. All rights, title, and interest to and including the rights of
copyright in any reports, studies, photographs (and negatives), computer programs, drawings, writings or other
sintilar works or documents, along with all supporting data and material (collectively the "Works"), produced
under this Contract are "works for hire" in accordance with the definition of that term under the copyright laws
ofthe United States. The Contractor hereby unconditionally assigns, and at any time in the future upon request
shall assign, all rights and interests of any sort, including without lintitation, all copyrights and other intellectual
property rights, in and to the Works produced under this Contract. The Conservancy shall have the sole and
exclusive right, title and interest (including copyright interest) in the works. Upon request from the
Conservancy the Contractor must deliver to the Conservancy all Works not delivered to the Conservancy under
Section I "Contractor's Duties". The Contractor may use the Works only with the prior written approval of the
Conservancy; and any use of these materials or data shall include an acknowledgment that the materials or data
are the property of The Nature Conservancy. The Contractor warrants to the Conservancy that the Contractor
shall not infringe the intellectual property rights of others in the performance of this Contract and agrees to
indemnify the Conservancy and hold it harmless from and against all demands, claims, damages, losses, and
expenses, including attorneys' fees, arising out of or resulting from any action by a third party against the
Conservancy relating to the Works.
Notwithstanding the foregoing, the Contractor shall have the right to use, publish, or distribute such reports,
photographs, data, or analyses thereof in Town reports, acadentic papers and scientific or acadentic joumals (with or
without co-authors) provided that the Contractor shall acknowledge that funding of these activities was made
available from the Conservancy.
10. CONFIDENTIAL INFORMATION. During the course of the performance of this Contract, the Contractor
may have access to materials, data, strategies, systems, or other information relating to the Conservancy and its
programs, which is intended for internal use only. Any such information acquired by the Contractor shall not be
used, published, or divulged by the Contractor to any person, firm, or corporation or in any advertising or
promotion regarding the Contractor or the Contractor's services, or in any manner or connection whatsoever
without first having obtained the written perntission of the Conservancy, which perntission the Conservancy
may withhold in its sole discretion.
II. TAXES. The Contractor agrees to be responsible for any and all filing and payment of taxes and for
compliance with any and all provisions and requirements arising under any applicable tax laws of New York.
Neither federal, nor state, nor local income tax, nor payroll tax of any kind shall be withheld or paid by the
Conservancy on behalf of the Contractor, or employees of the Contractor. If appropriate, the Conservancy shall
report all fees paid to the Contractor to the IRS on Form 1099.
12. OTHER PROVISIONS.
U.S. GOVERNMENT LAWS AND REGULATIONS. The Contractor understands that this Contract shall be
fuoded by U.S. Government funding and that the Contractor shall be responsible for ensuring that all work/travel is
Rev. 10101
3
carried out in compliance with any pertinent regulations and laws including but not limited to those listed in
Attachment 1.
GENERAL PROVISIONS. I) Appendix A- 43 C.F.R., Part 12; 2) Appendix B - Dl-i3590, Civil Rights
Assurance; 3) Appendix C - Dl-2010, Certifications Regarding Debarment, Suspension, and Other Responsibility
Matters, Drug-Free Workplace Requirements and Lobbying.
13. COMPLIANCE WITH LAWS. The Contractor agrees, represents, and warrants that in connection with any
business transaction contemplated by this Contract, the Contractor can lawfully work in the United States and
shall obtain any permits or licenses required and comply with all U.S. laws and regulations and shall not take
any actions that might cause the Conservancy to be in violation of any U.S. laws and regulations.
14. CHOICE OF LAW/FORUM. This Contract shall be interpreted, construed and governed by the laws of New
York State except for its rules regarding conflict of laws. In the event of any litigation over the interpretation or
application of any of the terms or provisions of this Contract, Conservancy and Contractor agree that litigation
shall be conducted in NY, U.S.A. The Parties hereby agree that venue in New York shall be proper and that the
Parties are subject or shall make themselves subject to personal jurisdiction in that court.
IS. BINDING EFFECT/AMENDMENTS. This Contract shall become binding when signed by the Parties. This
Contract supersedes all prior or contemporaneous conununications and negotiations, both oral and written and
constitutes the entire Contract between the Parties relating to the work set out above. No amendment shall be
effective except in writing signed by both Parties.
16. SEVERABILITY. If any provision of this Contract is held invalid, the other provisions shall not be affected
thereby.
INDEPENDENT CONTRACTOR
THE NATURE CONSERVANCY
By: Y~1'"1'1 a~/ S"'.=f(JfS"~
Print Name ' I
Authorized Rer.
By:
keili
~
Signa
Title:
I
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., hnla"
~ ,
Title:
. \ YE'~
Date:
Date:
Attorney
OR
Approved
by:
Date: May 4, 2005
By: E-mail (attached)
(E.g. faxl phone/ E-mail)
Rev. 10101
4
ATTACHMENT 1- U.S. GOVERNMENT LAWS AND REGULATIONS
U.S. GOVERNMENT LAWS AND REGULATIONS. The Contractor understands that this Contract shall be
funded by U.S. Government funding and that the Contractor shall be responsible for ensuring that all work/travel is
carried out in compliance with any pertinent regulations and laws including but not limited to those listed below.
A. RECORD RETENTION. Financial records, supporting documents. statistical records, and all
other records pertinent to this Contract shall be retained by the Contractor for a period of three years from the date of
submission of the final expenditure report. If any litigation, claim, or audit is started before the expiration of the
three-year period, the records shall be retained until all litigation, claims, or audit findings involving the records
have been resolved.
B. ACCESS TO RECORDS. The Conservancy. the U.S. federal entity providing the funding from
which this Contract will be paid, the Comptroller General of the United States, or any of their duly authorized
representatives, shall have the right of timely and umestricted access to any books, documents, papers, and other
records of the Contractor that are pertinent to the Contract for the purpose of making audits, examinations, excerpts,
copies, and transcriptions. The rights of access in this paragraph are not limited to the required retention period, but
shall last as long as records are retained.
C. EQUAL EMPLOYMENT OPPORTUNITY. The Contractor must comply with E.O. 11246,
"Equal Employment Opportunity," as amended by E.O. 11375, "Amending Executive Order 11246 Relating to
Equal Employment Opportunity" and as supplemented by regulations at 41 C.F.R. Part 60, "Office of Federal
Contract Compliance Programs, Equal Employment Opportunity, Department of Labor."
D. DEBARMENT CERTIF1CATION. The Contractor certifies, by signature on this Contract, that
the Contractor is not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily
excluded from participation in this transaction by any Federal department or agency. Where the Contractor is
unable to certify to this statement, the Contractor shall attach an explanation to this Contract, and, at the
Conservancy's option, this Contract shall become null and void.
E. CONTRACTOR LIABILITY. The Contractor assumes sole responsibility for reimbursement
to the Conservancy or the Federal Government, whichever is appropriate, of a sum of money equivalent to the
amount of any expenditures disallowed should the funding agency or any authorized agency rule, through audit
exception or some other appropriate means, that expenditures from funds allocated to the Contractor were not made
in compliance with applicable cost principles and regulations of the funding agency, or the provisions of this
Contract.
(applies to contracts under which the Contractor will perform work outside the U.S.A.)
F. FLY AMERICA. The Contractor shall comply with all applicable standards, orders, or
regulations issued pursuant to the Fly America Act, 49 U.S.c. 1517.
(applies to contracts for more than $100,000)
G. BYRD RULE ANTI-LOBBYING AMENDMENT. The Contractor certifies, to the best of the
Contractor's knowledge and belief that,
i. No Federal appropriated funds have been paid or will be paid, by the Contractor or on behalf of
the Contractor, to any person for influencing or attempting to influence an officer or employee of any agency, a
Member of Congress, an officer or employee of Congress. or an employee of a Member of Congress in connection
with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the
entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of
any Federal contract, grant, loan, or cooperative agreement.
Rev. 1 % 1
5
ii. If any funds other than Federal appropriated funds have been paid or will be paid to any person
for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer
or employee of Congress, or an employee of a Member of Congress in connection the underlying Federal award, the
Contractor shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance
with its instructions.
iii. The Contractor shall require that the language of this certification be included in the award
documents for all subawards/subcontracts under this Contract and that all subrecipients shall certify and disclose
accordingly.
This certification is a material representation of fact upon which reliance was placed when this transaction was made
or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed
by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil
penalty of not less than $ 10,000 and not more than $ 100,000 for each such failure.
(applies to construction or repair contracts for in excess of $2,000)
H. COPELAND ANTI-KICKBACK ACT. The Contractor shall comply with the Copeland Anti-
Kickback Act (18 U.S.C. 874), as supplemented by Department of Labor regulations (29 C.F.R. 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").
(applies when required by federal program legislation, for construction contracts in excess of $2,000)
I. DAVIS-BACON ACT. The Contractor shall comply with the Davis-Bacon Act (40 U.S.C. 276a
to a-7) and as supplemented by Department of Labor regulations (29 C.F.R. Pall 5, "Labor Standards Provisions
Applicable to Contracts Governing Federally Financed and Assisted Construction").
(applies to construction contracts in excess of $2,000 and other contracts in excess of $2,500 that involve
the employment of mechanics or laborers)
J. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT. The contractor shall
comply with Sections 102 and 107 of the Contract Work Hours and Safety Standards Act (40 U.S.c. 37-333), as
supplemented by Department of Labor regulations (29 C.F.R. Part 5).
(applies to construction or facility improvement contracts less than or equal to $100,000)
K. GUARANTEES AND BONDING. The Contractor shall follow its own bid guarantee,
performance bond, and payment bond requirements.
(applies to construction or facility improvement contracts in excess of $1 00,000)
L. GUARANTEES AND BONDING. In situations where the Conservancy does not examine the
Contractor's bid guarantee and bonding requirements and has not notified the Contractor that the Federal
Govermnent's interest is adequately protected, the Contractor shall comply with OMB Circular A-I 10, Sec. 48(c).
(applies to contracts in excess of $1 00,000)
M. CLEAN AIR ACT. The Contractor shall comply with all applicable standards, orders, or
regulations issued pursuant to the Clean Air Act (42 u.s.c. 7401 et sea.) and the Federal Water Pollution Control
Act as amended (33 u.s.c. 1251 et sea.).
(applies to contracts for the performance of experimental, developmental, or research work)
N. INVENTIONS. The Contractor shall provide for the rights of the Federal Govermnent and the
Conservancy in any inventions resulting from performance of this Contract in accordance with 37 C.F .R. Part 401.
Rev. 10101
6
.
,
Page 1 of 2
Kelly Hines
From: Diana Albie [dalbie@tnc.org]
Sent: Wednesday, May 04, 20054:05 PM
To: Joe H. Jannsen
Cc: Kelly Hines; jstebbins@tnc.org
Subject: RE: FEET TOWN CONTRACTs- use the attached contracts
Importance: High
Hi all-
Joe & Kelly- Please use the contracts attached to this ernail- not the contracts that Jennifer sent on her earlier
email.
I've updated the contract forms by inserteding:
contract start date on all 5 of the contracts as May 4, 2005.
contract number in the upper left corner of page 1.
TNC approval info on contract signature page
The contracts to the Five east End Towns have been reviewed and approved by NYSO Legal and the NYSO
Grants Specialist.
The next steps are:
Joe (I've copied Kelly so that she can start printing & organizing paperwork for you):
1) attach this email to the contract, behind the signature page, as proof of NYSO Grants review & approval.
2) attach the appendices that Jennifer FedXed to your attention to the appropriate contracts (get Town
signatures, where required)
3) get an authorized signature from each Twon for each contract (Contractor's) signature. (You should
probably have at least two "Original" sets signed- they Towns will probably want an original signed version &
we need an original)
3) fill in the Federal Id number for each contract
4) get TNC signature - Paul Rabinovitch
5) give original signed contracts to Cynthia- she'll make the correct distribution from this point
Cynthia-
1) please print NYSO Grant approval (this email) & file in the in the contract file
2) return an "original" signed copy of each grant to Shauna Desantis
3) return a copy of each contract to Jennifer Stebins
-----Original Message-----
From: Jennifer Stebbins [mailto:jstebbins@tnc.org]
Sent: Wednesday, May 04,20051:14 PM
To: Joe H. Jannsen
Cc: Diana M. Albie
Subject: FW: FEET TOWN CONTRACTs
Importance: High
Joe,
Note: On the East Hampton contract -the East Hampton taxpayer Id is missing and will need to be
completed by, them when they sign. The start dates will need to be completed (you can use today's date-
4/13/2006
,
Page 2 of 2
as this is the date you have my approval), and Paul Rubinovich will need to sign them, on behalf of TNC.
-----Original Message-----
From: Jennifer Stebbins [mailto:jstebbins@tnc.org]
Sent: Wednesday, May 04,200511:56 AM
To: Joe H. Jannsen; Diana M. Albie
Subject: FEET TOWN CONTRACTs
Importance: High
Hello,
Attached are the reviewed Town Contracts under the FEET agreement. Please note: Along with
the contracts, the Towns will also need to receive and sign (fi applicable) 3 Appendices. I am Fed
Exing ( [ only have hard copies of these documents) to Joe's attention at Upland Farms. (They
should arrive tomorrow morning.)
If you have any questions, please contact me.
Jennifer Stebbins
Grant Specialist. New York State Program
The Nature Conservancy
415 Eiver Street
Troy, N.Y. 12180
p (518) 273-9408, ext 244
4/13/2006
...
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,
Disclosure Form
It is the policy of The Nature Conservancy ("TNC") to identify real or perceived conflicts of
interest involving any party with whom TNC is entering into a transaction. To assist TNC
in complying with this policy, we request that all individuals and/or "entities" (other than
TNC) that will be involved in this transaction complete this form.
I. TRANSACTION INFORMATION (to be completed by TNC staff)
A. Real Estate Transactions
Site (Tract):
Check one:
Check one:
TNC acquisition: 0
Fee interest: 0
Other (describe):
TNC sale: 0
Conservation easement: 0
Acreage:
Location (Country,
state/province, county/other
local unit):
B. Non-Real Estate Transactions (non-real estate contracts, grants to other non-profits, and
other transactions)
Describe:
II. NAMES OF PARTIES TO THE TRANSACTION: Please identify all individuals and/or
entities (other than TNC) that will be involved in this transaction, An "entity" includes a
corporation, partnership, trust, estate, joint venture, unincorporated affiliation, or public board,
commission, or notjor-proftt organization.
\OWI1 of .sO<l1\wU
INDIVIDUALS ANSWER SECTIONS III AND V: ENTITIES ANSWER SECTIONS IV AND V.
III. QUESTIONS FOR EACH INDIVIDUAL IDENTIFIED IN SECTION II:
Yes
A.
B. a member of TNC's Board of Directors (now or during the last 12 months)
C. a TNC Chapter Trustee/Advisor (now or during the last 12 months)
D, a Major Donor of TNC- A "maior donor" is an individual or organization that has made
a gift or pledge ofUS$IOO,OOO or more at anyone time or cumulatively within the last 5
years in cash, appreciated securities or other assets, or in land, easement, or bargain-sale
value
Disclosure Fonn - October 2005
Page 1 of3
...
I
E. an other insider of TNC- "Other insiders" of TNC include individuals such as former
members of TNC' s Board of Directors, former Chapter Trustees, members of TNC
advisory boards or committees, members ofTNC's President's Conservation Council,
volunteers or former employees of TNC who, by virtue of their current involvement or
their involvement within the past 12 months with TNC either have access to "inside
information" that could place them within a conflict situation or could give the
appearance of such persons having the ability to unduly influence TNC. Depending on
circumstances, an independent contractor, grantee, other outside party or their employees
may be an "other insider" if that person or entity has access to "inside information."
"fuside information" consists of any material information that is identified as
confidential and proprietary and pertains to the business and affairs of TNC, whether
related to a specific transaction or to matters relating to TNC's interests, activities and
olicies.
F. to your knowledge, a close relative of any individual described in A-E, above- A "close
relative of an individual" includes (a) his or her spouse, in-laws(father, mother, brother,
sister, son and daughter in-laws), natural or adopted children, parents and/or step-parents,
grandchildren, grandparents, brothers and sisters; (b) any person who shares living
quarters with the individual under circumstances that closely resemble a marital
relationshi ; and (c) an erson who is financiall de endent u on the individual?
IV. QUESTIONS FOR EACH ENTITY IDENTIFIED IN SECTION II:
Please attach an ex lanation or an "Yes" answers: Yes
A. Is the entity a TNC "major donor" or "other insider"? (as those terms are defined in III D
& E, above.)
B. To your knowledge, does any current or former TNC employee, current or former TNC
Board member, current or former (for these purposes, former means within the last 12
months) Chapter Trustee! Advisor, "major donor", "other insider" of TNC, or any "close
relative" of an of the fore oin :
1. Own directly or indirectly more than 5% of the equity or any voting
securit in the entit ?
2. Serve as a director, executive officer, executor, administrator, trustee, beneficiary,
controlling partner, or otherwise serve in a fiduciary capacity or hold a substantial
beneficial interest in the entit ?
3. Have legal or de facto power to control the election of a majority of directors of the
or anization or to control the mana ement or olicies of the entit ?
V. QUESTION FOR EACH INDIVIDUAL AND/OR ENTITY IDENTIFIED IN
SECTION II:
Please attach an eXDlanation for a "Yes" answer. Yes No
To your knowledge, do you, or does the entity, own or control a "related organization" that /
is also a "major donor" or an "other insider" of TNC (as those terms are defined in III D
& E, above)?
For purposes of this question, an organization is a "related organization" if any individual or entity identified in
Section II:
. Owns directly or indirectly more than 5% of the equity or any voting security in the organization, or
. Serves as an officer, director, or partner, or otherwise has the ability to control management and policies of
the orJwnization.
Page 2 of 3
.
.'
Signatures of all the individuals and/or signatures on behalf of all entities identified in
Section II:
Scott A. Russell
)
Name of individual
f L<-f'W(5 rr1.
May !J;. 2006
Date
ate May
, 2006
Page 3 of3
.
~
>\
OfIlce of the Secretory, Interior
Number of weekend days of closure stated
by calendar month;
Number of weekday days of closure stated
by calendar month; and
Area closed stated In square ktlometers.
FOT beaches:
Whether the beach was Federal or State
(including- municipal or county);
Number of days of closure stated by cal-
endar month; and
Length of shoreHne closed stated in me-
ters.
For fisheries:
Whether area closed was an offshore. near~
shore, or wetland fishery.
Number of days of closure; and
Area closed stated in square kllometers_
For furbearer hunMng or trapping areas
and waterfowl hunting areas:
Number of days of closure; and
Area. closed stated in square kilometers.
Implicit Price DeJlcdOT
Quarterly implicit price deflAtor for the
Gross NatIonal Product (base year ]992) for
the Quarter In wnich the ldentJned substance
entered a Great Lakes environment. [See the
Survey of Current Business. published by the
U.S. Department of CommerceJBurean of
Economic Analysis, Ui41L Street, NW, Wash.
ington, D.C.. 20230, (202) 606-:-9900.)
MODmOA.TIONS TO 'lHE NRDAMlGLE
DATABASES (IF ANY) .
Documentation of the source of the modi.
neaMoDa; and
For air temperature:
Air temperature, stated. In degrees CelsJus,
aaalgued by the NRDAMlGLE at the - point
that the ident1ned substance entered.. Great
Lakes envfroDJD8J:It (8ee Table m.6.I. Vol-
ume m of the NRDAMIOLE teclmlcal docu-
ment); and
Substitute air temperature stated In de...
grees Celalus.
For "ater temperature at the Burface:
Water tem)JeJ'ature at t.beaurface.8ta.ted
in degrees CeJsJus, aa8tgn8d by the NRDA~
OLE at the point that the - Identffled sub-
stance entered a Great Lakes environment
(see TabJe In.6.2.6. Volume m of the
NRDAMlGLE technical docnment); and
Substitute water temperature stated In de-
grees Celsius.
For total suspended sediment concentra-
tion:
Total suspended sediment concentration,
stated in m1JlIgrams per liter, assigned by
the NRDAMlGLE at the point that the IdeD-
tined substance entered a Great Lakes envl.
ronment (see Section 3, Volume I of the
NRDAMlGLE technical document); and
Substitute suspended sediment concentra-
tion stated in mUllgrams per liter.
For mean settllng velocity of suspended
solids:
APPENDIX A
43 CfR Sublitle A (l 0- t-02 Edition)
PI. 12
Mef.D settling velocity of suspended sedi.
menta, stated in meters per day, asslgDed by
the NRDAMlGLE at the point that the Iden-
tiNed subetance entered a Great Lakes envi-
ronment (see Section 3, Volume I of the
NRDAMlGLE technical document); and
Substitute suspended sedIment conoentra.
tion stated in mJlJigrams per liter.
For habitat type:
La.titude and longitude bounds of area for
wbich the habltrt.t type Is being modil1ed;
Hab:ltat type assigned by the NRDAMlGLE
(see Sect:lon 6.2., "'ohime m of the NRDAMJ
GLE technlcaJ document); and
Subetftute habft..l.t type.
If the authorized omc:laJ turns orr the tce
modeling function, then be or sbe must pro-
vid.e documentation that ice was absent from:
the site of the release.
Definitions
Nearshore fi.shery-f1shery In an open water
area that Is less than 30 feet In depth or Is in
a connecting channel.
Offshrne fi.rheTlf-fi8bery in an open water
area that Is 90 feet or more in depth.
WeUand !isheTy--nshery that is not In an
open water areiL.
(61 FR 20614, May 7, 1996)
PARTI2-ADMINISTRAnVE AND
AUDIT REQUIREMENTS AND COST
PRINCIPLES FOR ASSISTANCE
PROGRAMS
Subpart A-Admlnlstrallve and Audit Re-
quIremenIa and Cost PrInciples lor Ao-
sIstonce Programs
Sec.
12.1 Scope of part.
12..2 What polidea are f1na.nolal assistance-
awards and subawards in the form of
cranta and cooperative agTeeDlents sub-
jectt:.o?
12.3 Effect on prior Issuances.
12A information collectfon requirements.
12.5 Wa.tver.
Subpart B IReserved]
Subpart C-Unllorm Admlnfslrallve Re-
quirements tor. Grcmts and Coopero.
ttve Agreemenb to Sfate and Local
Governments
GENERAL
12.41 Purpose and scope of this part.
12.42 Scope of SUbpart.
12.43 Definitions.
12.44 Applicability.
12.45 Effect on other issuances.
12.46 Additions and exceptions.
281
PI. 12
F'REt-A WARD RllQUlREMENTS
12..50 Fonns for applying for grants.
12.51 State plans.
12.Sa Special grant or snbgrant conditions
for "high.rlsk" grantees.
POST-AwARD R1DQtlIR.1aImNT
Financial Admini.rtTation
12.60 Standards for financial manag-ement
systems.
12.61 Payment.
12.62 Allowable costs.
12.63 Penod of a.valla.b1l1ty of f\lnds.
12.64 Matching'or cost sharing.
12.65 Progra.m income.
12.66 Non-Federal audit.
CHANGES, PROPERTT. AND SlJBAWARDB
12.70 Changes.
12.71 Re&l property.
]2.72 Equipment.
12.73 Supplies.
12.74 Copyr1ghts.
12.75 Subawards to deblUTsd and suspended
parties.
12.76 Procurement.
12.71 SubgrQJ:Its.
REPoRTS, REcoRDS. Rl!:rENTION. AND
ElNFoRcB:MI!:NT
]2.80 Monitoring and report1ng program
performance.
12.81 Financfa.l reporting.
]2.82 Retention and access requirements for
records.
12.83 Enforcement.
12.84 Termination for oonveD1ence.
APJ'ER-THB-GRANT R1rlQ1mt:IOO.:N
]2.90 Closeout.
12.91 Later cUsallowancea and adjustments.
12.92 Collection of amounts due.
EmTr1.EMENTs [llJl:SJl:RVED]
Subpart D-<;ov~ Debonnenl
and SUspensIon (Nonprocwemenll
and . GovemmentwIde IlequhmeflIs
!Of Drug-Free WorIcplace (Grants)
Gl!:NEItAL
]2.]00 Purpose.
12.]05 DenniUons.
]2.110 Coverage.
l2.US Policy.
EFF'JIX:T OF ACTION
]2.200 Debarment or suspension.
]2.205 Ineligible persons.
12.210 Volunta.ry exclusion.
]2.2]5 Exception provision.
12.220 Continuat:lon of covered transactions.
12.225 Failure to adbere to restrictions.
-'
,
43 CFR Sublllle A (10+-02 EcIIIion)
DEBARMENT
12.300 General.
12.306 Causes for debarment.
12.3.10 Procedures.
12.811 Investigation and referral.
12.312 NotiCe of proposed debanDent.
12.313 OJ>portunfty to contest. proposed de-
barment. .
]2.314; Debarring official's'decision.
12.3]5 Settlement and VOluIltary exclusion.
]2.820 Period of debarmeiJ:t.
]2.825 Scope of debarment.
SUSPltNBION
]2.400 General.
12.405 Caus88 for suspension.
12.410 ProCedures.
12.411 Notice of SU8:pens1oD.
12.412 OpPot't\lD!ty to contest BtlspeDBfOD.
13.413 SuspeadlDg omctal's decIafon.
12.415 Period of "suspension.
12.420 . Scope of suspension.
REsPONsnm.rrms 07 GSA. DEPARTMB:.NT OF'
TBB Dn1I:R1OR AND PARTlUJPANTS
]2.500 GSA-reaponstbU1tlea.
]2.505 Department of the Interior respon-
sib1lltiea.
12.610 Part1.c1panta'responsib1l1tles.
DRUG-FRIts W01tJO>LA.CB RBQUIRBMB:NTS
(GRANTS)
12_600 P\U'p08El.
12.605 DefIn1tJons.
]2-.610 Coverag-e.
12.616 Grounds for ao.spension of payments,
st1JlPeDldOD or termination of gr&nta, or
81lQ8D8Ion or debanrJ.ent.
12.ao lUJ'eCt of -no)aUOD.
12-.825 BzoepUOD provJa10D.
]2~6S0 Cert1ftcatlOD r8qu1rementa and proce-
.......
12.685 Report;lnc of and employee aaDCtiollB
for oonviottoDa of criJD1Da) ~ offenses.
APPZNDlX A TO SUBP.ART ~TION
~ DBBA1tJaIiNr, SUBPBNBJON. AND
<n'BJ:R. ~ MATrBRs-PRI-
MAR!' COVDm T:RANSACl'JONS
APPENDIX B TO B1mPART ~CATION
R:InARDINO DKIwtJaRT. SU8PBN81ON. IN-
ZLI<JDDLI'1'!' .AND V~mrrARY ExCLUSION-
LowER. TDm COVBRBD 'l'RANsAan0N8
APPIIlNDIX C TO SUllPAM' D--CJI:RTnrro.ATION
REGARDING DRua-FR:I!:& WORXPLACB RE-
QUllUCNBIml
Subpart E-Buy AmerIcan Requlrem",,~ for
AssIstance Programs
BUY AMERICAN ACT-SUPPLIES
~~
Soope. / '
De Mom.
P fey.
valuating offers.
]2.700
]2.705
]2.710
]2.715
282
~ d3lL,J
Offlce ot the Secretary, Interior
12.720 Excepted a.rticles, materials. and sup...
pJles.
12.725 Solicitation provisions and contract
clause.
12.730 :auy American Act-Suppl:l:es.
BUY AMElUCAN AGIL-CONSTRUCI'ION
MATERIALS
12.800 Scope.
12.805 Definitions.
12.810 POlicy.
12.815 EValua.ting offers.
]2.B20. Violations.
12.825 Solicitation provision and contract
clause.
12.830 Buy American Act-Construction ma.
terfals.
SUbpart F-Unlform Admlnlstralfve Require-
ments for Granls and Agreements WHh
IhsfltuIlons of Higher Educofton, Hos-
pItaJs. and Other Non-ProtII Organlzo-
lions
GENERAL
12.901 PUrpose.
12.902 Definitions.
12.903 Effect on other issuances.
12.904 Deviations.
]2.905 Sub8.Wards.
PRE-A WARD REQUlREMBNTS
12.910 Purpose.
]2.9H Pre-award policies.
12.912 Fonns for applying for Federal asa1st-
anee.
12.9]3 Debarment ~d BUBpenafon.
]2.914 Special aWard conditions.
12.915 Metric B)"steJri of measurement.
13.918 Reeonrce Conservation and Recovery
Act (RCRA) (Pub. L. H-58O codified at 42
U .S.C. 6062).
12.917 CertJfication8 and representations.
P06T'AWARD.RBQ~
Financial a.nd Proi/Tam Management
12.920 Purpose of finanCial and program
management. 1
]2.921 Standards for financial management
aystema.
12.922 Payment.
12.923 Coat sharing or matching.
]2.924 PrOCTam income.
12.925 Rev18J.on of budget and program
plans.
12.926 Non.Fed81'a1 audita.
12.971 Allowable costs.
]2.928 Period of aVailability of fuDds.
PToperty Standards
12.930 Purpose of property standards.
12.93] Insurance coverage.
12.932 Real property.
12.933 Federally owned and exempt prop-
erty.
PI. ]2
]2.934 EqUipment.
]2.~ Suppl1e!l: and otber expendable prop-
erty.
12.936 IntaDg:ible property.
]2.931 Property trust relat1onsldp.
Procurement Standards
12.940 Purpose of procurement standards.
12.941 Recipient responsib1Uties.
12.942 Codes of conduct.
12.943 CompetJtiion.
]2.944 Procurement pfOcedures.
12.945 Cos:t and price analysis.
12.9t6 Procurement records.
]2.947 Contract administration.
]2.948 COD tract 'provisions.
Reports and Records
12.950 Purpose of reports and records.
12.951 Monttoring a.nd reporting progn:.m
perfonDance.
12.952 Ftnano1al report1ng.
]2.953 Retention and access requirements
for records.
Termination and Enforcement
12.960 Purpose of termination and enl"orce-
ment.
12.961 Termination.
12.962 EDforcement.
APTI:R-THE-AW.ARD~.
12.970 Purpose.
13.971 Closeout procedures.
12.972 SUb8eque:otadjuatments a.nd con~
tlnu:1Dl'reapona1b1l1t1ea.
12.978 CollectJ9n of amoUDts due.
AP.PBNDJX A TO SVBPAR'l' F-CONTRACT PRoVI-
SJONS
Au:rbOhl.lI. 5 U.8.C. SOl; 3] U;S.C. .6101 note.
7501;41 U.S.C. 252a. 701 d .q; Pnb. L. 104-356.
llO Stat.. 1896; sec. 501, Pnb. L. 105-62. n1
Stat. l338; sec. 503. Pab. L. 1OS-a, 111 Stat.
1339; see. S03,.Pub. L. ]05-83. 111 Stat,. 1589;
see, 30'1. Pub. L.. 105-88. 111 Stat. 1590; E.O.
12549. 3 OF&. ]986 Comp.. p. ]89; E.O. 12674, '3
OFR. 1989 Comp.. p. 315; E.O. 12689, 3 OFR.
1989 Comp.. p. 235; E.O. 1273l. 3 OF&. 1990
Comp.. p. 306; E.O. ]S0f3. 6.2 Fa. 19217;' 3 OFR
1997 Comp.. p; ]95; OMB ctrcnlar A-]02; OMB
Circular A-nO; and' OMB Circular A-133.
CRoss REP'lI:RENCB::' See also' Off1ce of Man~
agem8.Dt and Budget notice published at 55
FR 21679, May 25. 1990. and 60 FR 33036. June
26, 1995.
EDlTORIAL NOTE: For additional infonna-
tfo:p, see related documents pubUshed at. 49
FR 24958, June 18.1984; 52 FR 20178 8.Dd 20360,
May 29, ]987; 53 FR 8{l~. Mar. H, 1988; 53 FR
19160, May 26, 1988; aDd 53 FR 34474. Sept. 6,
]988.
283
~12.1
Subpart A-Administrative and
Audit Requirements and Cost
Principles for Assistance Pro-
grams
SotJJWE: 50 FR 6176, Feb. H. 1985 and 56 FR
45898, Sept. 9, 1991, unIeaa-otherw1se noted.
~ 12.1 Scope of part.
This part prescribes administrative
requirements and cost principles for
gI'8Jlts and cooperative agreements en-
tered into by the Department.
~ 12..2 What policies arefiDaDciaJ ..
siistaDce awards and sobawards m
the form of JP:IUIu and cooperative
agreements subject to?
Ca) All financial assistance a.wards
and subawards. in the form of grants
and cooperative agreements. in accord-
ance with paragra.ph (b) of this section.
are subject to subparts C, D, E. and F
of this part, OMB Circulars A-I02.
"Grants and Cooperative Agreements
w1th State and Local Govermnent.s,"
A-llO, "Grants and Other Agreements
with Institutions of Higher Education.
Hospitals, and Other Non-Profit Orga-
nizations." A-iJ7. "Cost PriDc1pJes for
State and Local Governments," A-21,
"Coat Principles for Educational Insti-
tutions," A-l22, "COBtPrincJpJes for
Non-Pron.t Organ1zatJODS.... and A-l33,
"Audits of StAtes, Local Governments,
and NOD-Pro1lt Org'anizattons.H
(b)(l) Governmental teclplente .."d
subl'ec1p1ents are subject to subparts C.
D, and E of this part, C1rculars A-87
.."d A-l33.
(2) Institutions of higher education
which are recJpients or subrecjpieDts
are subject to subparts D, E, and " of
this part, Circulars A-llO. A-21, and A-
133.
(3) Non.proflt Organiza.t10DS which
are recipients or subredPJents are sub-
ject to subpa:rts D. E, and 'F of tbJs
part, Clrcul..... A-llO, A-l22, .."d A-l3S.
(c) The circula.rs prescribed by this
part published in the F'EDERAL REG-
ISTER are made a part of this regula-
tion and include changes publiShed in
the FEDERAL REGISTER by OMB.
(d)(1) Federal ethics and conduct reg-
ulations contained in 5 CFR part 2635
1mplement Executive Order 12674, 3
CFR, 1989 Camp., p. 215 (as modJfied by
Executive Order l273l, 3 CFR, 1990
43 CFR Sublille A (10-1-02 Edition)
Comp.. p. 306), "Principles of Ethical
Conddct for Government Officers and
Employees," by prohibiting employees
from endorsing in an offtcla.l capacity
the proprietary products or processes
of manufacturers or the services of
commercial firms for advertising, pub-
licity, or sales purposes. The Depart-
ment's use. of materlaJs, products, or
services does not constitute official en-
dorsement.
(2) The policy in paragraph (dXl) of
this section applies to a. grant/coopera-
tive agreement wbose Principal pur-
pose is a pa.rt.nenh1p where tbe rec1pi-
entJpa..rtner contributes resoUrces to
promote agency programs, pUblicize
agency activities, assists in f'Und-
ra1$1ng, or provides a.ss1sta.nce to .the
agency. In the event that such a gTaD.t/
cooperative agreement is awarded to a
recipient, other than a State gov;ern-
ment, a local government" or a Feder-
ally-recognized Indian tribal govern-
ment, and authorizes joint dissemina-
tion of infonnatioD and promotioD of
activities being supported, the fol-
lowing prov1sJonshaJl be made a term
and condition of tbe award:
GRANTlCooPKRATIVE AGRI!ZMKNT P'RovIsION
Recipient shall not publicize or otherwise
circulate, promotional material (such aa ad~
verMaementa. sa!.- brociburee, preea :relea8e8.
apeecbea, still and. motion p1cttlre8, &rt1c1ee,
manuaci1pts or other publlcatJODa) which
states or impliM gQvenu:Dental, Depart-
mental. bureau, orgovernmeDt employee en-
dorsement of a product, aen1ce, or })OSttion
wblch the rec1pjat repre88Dta. No releaae of
jnformat:lon relating to this award may state
or Imply that the Government approves of
the recipient's work products, or considers
the recjplent'8 work product to-be superior
to other prodUCts or services.
All Infonnation aubmJtted for publication
or other public releases of information re-
gardmg thjs project shall C&JTy the- follOWing
diaclaimer:
The views and conclusions contained m
this document are those of the authora and
sbould not be interpreted as repreaentjull' the
op1njons or polldes of the U.S. Government.
Mentjon of trade names or commercial prod-
ucts does Dot constjtute their endorsement
by tJJeU.S. Government.
ReCipient must obtajn prior Government
approval for any public informaUoD releases
concerning tbls award wbich refer to the De-
partment of the Interior or any bureau or
employee (by name or tItle). The specUfc
284
,
""
Office or the Secretary, Interlar
text, layout photographs. etc. of the pro-
:posed release mast be submitted with the rlr
Quest for approval.
A recipient further agrees to include this
provision in 8. sabaward to any 8ubroofpient,
except for a subawa.rd to a State g'overn-
mant, a local government, or to a Federally-
recognized Indian tribal government.
[End of Provision)
(3) Recipient reque,sta for c]ea.r&Dce
of public releases will be reviewed
using ex1st1ng pUblic infonnation
mecban1sms through the appropnate
Public Affairs Off1ce and with con-
sultation,with the cognizant Ethics Of-
fleer.
(e) (1) What does Executive O~e:r
13043. "Increasing Seat Belt Use in the
United States," da.ted April 16.1997. do?
(1) If yOU' are a Federal grantee. you
are encouraged to--
(A) Adopt and enforce" oD-the~Job seat
belt use pOlicies and programs for your
employees when operating company-
owned, rented. or personally owned ve-
hicles.
(B) Conduct eduoatlon. 'awareness.
aDd other appropl1ate programs for
your employees about the importance
of wearing seat belts and the con-
sequences of not Wearing them.
(11) (Reserved]
(2) Wben do.. the policy apply?
(I) If a grant/cooperative agreement
Is being awarded by the bureaU/oMes of
the Departmei1t-The policY appl1es.
(11), If the rec1plent awards a grant or
cooperative agreement to a su~
recipient-The pollcy applies.
(3) What terms and conditiQns will be
incorporated into the gra.ntJcooper~tive
agreement or sub-award, If use of a spe-
cUlc prOvision 1s desJredand genen\l
a.ppl1cabUity to 43 CFR Part 12 is not
used instead?
(I) Tbe following provlelon wi)) be in-
corporated into the grantJdooperative
agreement or sub-award:
THE SltAT BELT PRovISION
Recipients of grants/cooperative agree--
menta and/or sub-awards are encouraged to
adopt and enforce on-tbe-job seat belt use
policies and programs for their employees
when operating company-owned. rented. or
personally owned vehicles. These measures
include. but are not I1mited to, conducting
education, awareness, and other appropriate
programs for tllelr employees about the bn-
~12,5
portance of wearing seat belts and the con~
sequebces of not wearing them.
[End of Provision)
(ll) (Reserved]
[50 FR 6176, Feb. H. 1985, as amended at 53
FR 807'1, Mar. 11, 1988; 66 FR 45898. Sept. 9,
1991; 59 FR 17712. Apr. )4, 1994; 62 FR 45944.
Aug. 29, 199'1; 66 FR 39822, June 28,20(0)
~ 12.3 Effect on prior issuances.
-(a) All prOVisions of Department of
the Interior nonregulatory program.
manuals, handbooks and other mate-
rials which are inconsistent with the
above OMB Circulars are superseded.
exc~pt to the extent that they are (1)
required by statute, or (2) authorized in
aacorda.nce with the exceptions provi-
sions of each circular.
(b) Except to tbe ,extent. inconsistent
with theregulat10ns in 43 ~FR part 12.
subpart C, all existing Department of
the Interior regulations in 25 CFR
parts 23, Z1, 39, 40, 41, 256, 272, 278, and
276' 30 CFR parts 725, 735, 884, 886, and
890; 36 CFR parts 60. 61. 63, 65.. 67, 72.
and 800; 43 CFR pa.rts _26 and 32; and 50
CFR parts 80. 81. 82, 83, and 401 are not
superseded by these regulations nor are
any pa.~rWork a.pprovals under the Pa-
perwork Red\lct1on Act.
(So FR,6176, Feb. 14, 1985. as amended at. 53
FR 80'71, Mar; 11, 1988)
f 12.4 InfonoatiOD eoDeetiOD requJ~
m....c..
IDfonnation colJections in addi't10D
to those reqn!red by applicable OMB
C1rcul..,.. will be cleared by responsible
bureaus and amcea on aD individual
baols.
f 12.5 Waiver.
Only OMB can grant exceptions from
the requirements of these Circulars
when exceptions are not prohibited
under ex1st.1ng laws.
Subpart B [Reserved]
Subpart C-Unlform Administrative
Requirements far Grants and
Cooperative Agreements 10
State and Lacal Governments
SOURCE: 53 FR 8077 and 8087. MaT. 11, ]988,
unless otherwise noted.
285
~ 12.41
GENERAL
~ 12.41 Purpose and scope of this part.
This part establishes uniform admin-
istrative ru]~ for Federal grants and
coopera.tive agreements and 8ubawards
to State, local and Ind.1an tribal gov-
ernments.
~ 12.42 Scope of subpart.
This subpart contains ,general rules
pertaining to this part and procedures
for control of exceptions from this
part.
~ 12.43 Definitions.
As used in this part:
Accrued expenditures mean the
charges 1ncuITed by the grantee during
a given peI10d reQu1r1ng'the provision
of funds for: (1) Goods and other tan-
gible property received; (2) services
performed by employees. contractors.
subgrantees, subcontractors. and other
pa.yees; and (3) other amounts becom-
ing owed under programs for wh1chno
cutrent services or performance 1s re-
quired. such as annuities, insurance
claims, and other benefit payments.
Accrued income means the Bum of: (l)
Earnings dur1ng a given, period: from
services performed by the grantee and
goods and other tangible property de-
livered to purchasers, and (2) amounts
becoming owed to the grantee for
which no CUITeDt services or perform-
ance 1s required by the grantee.
Acqu.fritioncon of an 1tem of pur-
chased equipment means the Det in-
voice un1t price of the property includ-
ing the cost 01 modJf1cati'ODS. attach-
ments. acceSfJor1es, or auxJ.l1ary appa-
ra.tus necessary to make the pro]>efty
usable for the purpose for. wbich it wa.s
acquJred. Other cbarges sucb. as the
cost of installation. transportation,
t.a.xes, duty or protective in-transJt in~
surance, shall be included or excluded
from the un1t acquJsition cost in ac-
cordance with the grantee's regular ac-
countjng practJces.
Administrative requirements mean
tl10se matters common to grants in
generaJ, such as financial management,
kinds and frequency of reports. and re-
tention of records. These are distin-
guished from "programmatjc" require-
ments, which concern matters that can
be treated only on a program-by-pro-
43 CFIl SubliH. A (IIH-02 Edition)
gram or grant-by-grant basis, such a.s
kinds" of activities that can be sup-
ported by grants under a partjcula.r
program.
Awarding agency means (1) with re-
spect to a grant, the Federal agency,
and (2) with respect to a su berant. the
party.that awarded the subgrant.
Cash contributio1t.t means the grant-
ee's cash outlay. including tbe outlay
of money contributed to the grantee or
subgrantee by other public agen.des
and institutions, and pr:lvate organiza-
tions and individuals. When authorized
by . FederaJ leg1.s1at1on, Federal funds
received from other assistance agree-
ments may be cona1dered as grantee or
subgrantee cash contributions.
Contract means (except as used 1n the
deftn1tJons for "grant" and "subgrant"
in ,this section a.nd except where quali-
fied by "Federal") a procurement con-
tract under a grant or subgrant, and
means a procurement subcontract
under a contract.
Cost Sharing or matching means the
value of the third party in-kind con-
tributions and the portion of the costs
of.& Federally.assisted project.or pro-
gra.tn Dot borne by the Federal Govern-
ment.
Cost~type'con~t meanaa contract or
subcontract under a grant in which the
contractor or subcontractor 1s paid on
the bas1s of the costs it incurs. with or
without a fee.
Equipment means tang1ble. Don.
expendable. personal propertYbavtng a
useful life of more than one year and
an acquisition cost of $5.000 or more
per unit. A grantee may use its own
de:f1n1tioD of equipment provided tha.t
such de:f1nition would at least include
all equipment'de:Oned above.
Expenditure report means: (1) For non-
construction grants, the SF-269
"Financial Status Report.. (or other
equivalent report); (2) for construction
grants, the 81'-271 "Outlay Report and
Request for Reimbursement" (or other
equivalent report).
Federally recognized Indian tribal gov-
ernment means the governing body or a
governmental agency of any Indian
tribe, band, nation, or other organized
group or communjty .(including any
Native village as defined in section 3 of
the Alaska Native ClaJ.rns Settlement
286
-~
OIIiee of the Secrelory, Interior
Act, 85 Stat 686) certified by the Seep
retary of the Intertor as elJg1ble for the
special programs and services provided
by him through the Bureau of Ind1a.n
Affairs.
G9vernment means a. State or l.ocal
government or a. Federally recognized
Indian tribal govemment. .
Grant means an award of financial as-
sistance, inclUding cooperative agree-
ments, in the form of money. or prop-
erty in lieu of money. by the Federal
Government to an el1g1ble grantee: The
term does not include technical assist-
ance which provides services instead of
money. or other assistance in the form
of revenue sharing, loans. Joan guaran-
tees, interest subsidies, lnsurance. or
direct appropriations. Also. the term
does not include assistance. such as a
fellowship or other lump sum award.
which the grantee Is not required to ac-
count for.
Grantee means the government to
which a grant Is awarded and which is
aocountable for the use of the fUnds
provided. The gJ"8.Dtee is the entire
leg~l entJty even if only a particular
component of the 8nt1'ty 1s des1gnated
in the gl'ant award dooument.
Local government' meaDS a county.
municipality. city. town. township,
local public authority (Including any
public and Indian housing agency
undertbe UnitedStatea Bou.s1ng Act of
1931) school district. special district.
intrastate district. cOUDell. of govern-
ments (whether or Dot incorporated &8
a nonprofit corporation under State
law). any other regional or interstate
government entity. or any a.gency or
instrumentality of a local government.
Obligation& means, the amounts of o~-
den placed. contracts and 8ubgrants
awarded. goods and services receiVed.
and BJm1lar transactions during a given
period that wi]] reqUire payment by
the grantee during the sarrie or a. future
perlod.
OMB means the U.S. Office of Man-
agement and Budget.
Outlays (expenditures) mean charges
made to the project or program. They
ma.y be reported on a cash or accrual
basis. For reports prepared on a cash
basis, outlays a.re the sum of actua.l
cash disbursement for direct charges
for goods and services, the amount of
Indirect expense incurred, the value of
S12.43
in-kiJ1d contributions applied. and the
amount pf cash advances and payments
made to contractors and subgrantees.
. For reports prepared on an accrued ex-
penditure basis. outlays are the Bum of
actual cash disbursements, the am()unt
of indirect expense mCUlTed, the value
of inkind contributions applied, and
the new increase (or decrea.se) in the
. .amounts owed by the grantee for goods
iuldotber property received. for serv-
ices performed by employees; OODtrac-
tors, sUbgrantees.subcontractors. and
other payees. and other amounts be-
com1ng' owed under programs for wbich
no current services or per:fonnance are
required; such as annuities. insurance
claims. and other benefit payments.
Percentage of completion method refers
to a system under which payments are
made for. construction work accordIng
to the percentage of completion of'the
work. rather than to the grantee's cost
incurred. .
Prior approval means documentation
evjdenc1ng consent prior to inCUrring
specillc cost.
Real property .means land. iilcluding
land improvements, structures and ap-
pUrtenances thereto. exclud1ng mov-
able machinery and equIpment.
SkaTe. wben referring to the award.i.ng
agency's portion of rea.! property.
equipment or Buppl1ea. meane the same
percentage as tJ).a award:b1g agency's
portion oCtb. acqu1l':lng po.rty'. tOtal
costs under the grant to which the a.c-
quiB1t10D costs under the grant. to
which the acquisition cost of the prop-
erty was charged. Only costs are to be
counted-not the value of third-party
in-kind contributioDS.
State meaDS any of tbe several States
of the United Sta.tes. the District of
Columbia. the Commonwealth of Puer-
to . Rico, any. tenitory or possession of
the United States. or any agency or In-
strumentality of a State exclusive of
local governments. The tenn does. not
include any public and Indian housjng
agency under United States Housing
Act of 1937.
Subgrant means an award of financial
assistance in the form of money. or
property-in lieu of money. made under
a gra.nt by a grantee to an eligible sub-
grantee. The term includes f1nancjal
287
~12.44
assistance when provided by contrac-
tual legal agreement, but does not in-
clude procurement purchases. nor does
it include any form of assistance which
Is excluded :from the deftmtloD of
"grant~. in this part~
Subgrantee means the government or-
other legal entity to which 8. Bubgrant
Is awarded aJld which -is accountable. to
the grantee for the use of the funds
provided.
Supplies rnea.ns all tangible persona.}
property other than "equipment" - as
deflned in this part.
Suspension means depending on the
context. either (1) temporary with-
drawal of the authority to obligate
grant funds pending corrective action
by the grantee or sUbgraDtee or a deci-
sion to termJnate the grant, or (2) an
action taken by a suspendingofnc1aJ 1n
accordance with agency ~gulat1oD8
implementing E.O. 12M9 to imme-
diately exclude a person from partici-
pating in grant transactions for a pe-
riod, pending completion of an Inves-
tJgatJon and such legal or debarment
proceedings as may ensue.
Termination means pennanent with-
drawal of the authorlty to obligate pre-
viously-awarded grant fUnds before
that authontywollld otherwise expire.
It l;I.lsomeans the vOluntary re11nQu1Bh-
ment of thai; author1ty by the grantee
or BUbgra.ntee. uTermiDationU dOM not
Include: (1) Wlthdr$walof funds award-
ed on the basis of the grantee)s under-
estimate of the UDobUgated balance in
a prior periOd; (2) Wlthdr$wal of the
unObligated balance as of the expJra-
tion of a grant; (3) Re1\1sal to extend a
grant or award additional f'nnds, to
make a. competing or noncompeting
continuation, r.enewal, extens1on. or
supplemental award; or (4) voiding of a
grant upon determina.t1oD that the
award was 6bta.1Ded f'raudulently, or
was otherwise illegal or invaHd from
inception.
Terms of a grant or subgrant mean all
requirements of the grant or subgrant.
whether in statute. regulations, or the
award document.
Third party in-kind contributions mean
property or services which benefit a
FederaJly assisted project or program
and which are contributed by nOD-Fed-
era) third parties without charge to the
43 CFR SubIlIIe A (It}-J-02 Edition)
gran~, or a cost-type contractor
under the grant agreement.
Unliquidated: obligations for reports
prepared on a cash bas1s mean the
amount of obligations incurred by the
grantee that has not been paid. For re-
ports prepared on an accrued expendi-
ture basis. they represent the arno.uot
of obligations incurred by the grantee
for which an outlay bas not been re-
corded.
Unobligated balance means the por-
tion of the fUnds- authorized by the
FederaJ. ageDcy that has not been obU-
gated by the grantee and is determined
by deductJng the cumulative obliga-
tions from the cumulative funds au-
thorized.
112.44 Applicability.
(a) General. Subparts A-D of thIs part
apply to all grants and subgrants to
governments. except where mco.n-
sistent with Federal statutes or with
regulations authorized 'in accordance
with the exception provisIon of U2.46,
or:
(1) Grants and subgrauts to State and
local institutions- of higher educatJon
or State and ]ocalhospltals.
(2) The block grants authorfuld by
the Omnibus Budg'et ReconciliatIon
Act of 1981 (Comm1in1ty Services; Pre-
VeJJt1V8 Health &.Dd Health Se-rv1ces; Al-
cobol. Drug Ab...... and Mental BeaJth
Servlcoa; Maternal. and ChUdBeaJth
Services;Soc1al Serv1088; Low-~come
Home-.Energy Aas1ataD.ce;' States' Pr0-
gram of COmJDuni'ty Deve]opmeni;
Block Grants for SmaJI C1tloa; and Ele-
mentary and' Secondary EducatIon
other than programs administered by
the Secretary of Education under ,Title
V, Subtitle D. Chapter 2,Sectlon 583-
the Secretary's discretionary grant
program) and Titles I-ill of the Job
Tralnlng Partnersblp Act of 19l1:l and
under the Public Health Services Act
(SectIon 1921), Alcohol and Drug Abuse
Treatment and Rehabll:lta.tIoD Block
Grant and Part C ot Title V. Mental
Health Service for the Homeless Block
Grant).
(3) Entitlement grants to carry out
tbe followjng programs of tbe Social
Security A.ct:
(1) Aid to Needy FamHies with De-
pendent Chlldren (Title IV-A of the
Act. not including the Work Incentive
288
- 1
OffIce of the Secretary, Interior
Program (WIN) authorized by section
402(a)19(G); HHS grants for WIN are
subject to this part);
(11) Child Support Enforcement and
Establishment of Paternity (Title IV-D
of the Act);
(1:11) Foster Care a.nd AdoptjOD Assist-
ance (Title IV-E of the Act);
(Iv) AId to the Aged, BlInd. and Dill-'
abled (T1~es I, X. XIV. and XVl-AABD
of the Act); and .
(v) Medical AssIstance (MedIcaId)
(Title XIX of the Act) not including the
State Medicaid Fraud Control program
authorized by section 1903(a)(6)(B).
(4) Entitlement grants under the fol-
lowing programs of The National
School Lunch Act:
(1). School Lunch (section 4 of the
Act).
(11) Commodity Assistance (section. 6
of the Act),
(Ui) SPecial Meal Assistance (section
11 of tbe Act),
(tv) Summer Food Service for Chll-
dren (section 13 of the Act). B.Dd
(v) Child Care Food Program (section
17 of the Act).
(5) Entitlement grants under the fol-
lowing programs of The Child Nutr1-
t10n Act of 1966:
(1) Special Milk (sectIon 3 of the Act).
and
(11) School Breakfast (section ~ of the
Act).
(6) EntItlement grants for State Ad-
ministrative expenses under The Food
Stamp Act of 1m (section 16 01 the
Act).
(7) A grant for an experimental; pilot.
or demonstration project tlIat :Is also
supported by a grant Hsted in .para-
graph (a)(3) of thIs section. .
(8) Grant funds awarded under sub-
section 412(e) of the Immigra:tionand
Nationality Act (8 U.S-C. 1522(e)) and
sobsection 501(a) of the Refugee Edu-
cation Assistance Act of 1980 (Pub. L.
96-422, 94 Stat. 1809), for cash assIst-
ance, med.1cal assistance. and supple-
mental security income benefits to ref-
ugees and entrants and the administra-
tive costs of prOViding the assistance
and b~nef1ts.
(9) Grants to local education agencies
under 20 U.S.C. 236 through 241-1(a),
and 242 through 244 (portions of the Im-
pact Aid program). except for 20 V.S.C.
512.50
238(dl(2)(c) and 240(1) (EntItlement In-
crease for Handicapped Children); and
(10) Payments under the Veterans
Admlnlstration~B State Home. Per Diem
Program (38 U.S.C. 641(a)).
(b) Entttlement programs. Entitlement
programs enumerated above in f 12.44(a)
(3) through (8) are snbject to eubpart E.
~ 12.45 Effect on other i8fRUlD.ee&
All other grants admiD1stration pro-
visions - oC cod111ed program regula-
tions. program manuals. handbooks
and other nODreguIatDry materials
which are incons1steDt with, this part
are superseded, except to the eJl:tent
they are required by statute, or a.u~
thorlzed in accordance with the excep-
tion provision in f 12.46.
f 12.46 AdditioDS and exceptions.
(a) For classes of grants and grantees
subject to this part. Federal agencies
may not impose additional administra-
tive requirements except in cod:lfied'
regUlations pubUshed in the FEDERAL
REGISTER.
(b) Exceptions for cluB88 oC"grants or
grantees may, be authorized only by
OMB.
(c) Exceptions on a case-by-case basis
and for 8UbgranteeS may be &uthor:lzed
by the affected Federal agencies.
PRE-AWARD REQuriunomTS
112.60 Form.lora~ for p-ant&
(a) Scope. (1) Thle section prescrlbes
forms and instructioDB to be used by
governmental organizations (except
hospitals and InstitutIons of hIgher
education operated by a governmeDt)
in a.pplying for granta~ This section is
not appUcable. however. to formula
grant programs. which do not reqwre
appUcants to apply for :f'I1.rids on a
project basis.
(2) This section applies only to appli-
cations to Federal agencies for grants,
and is not required to be a.pplied by
grantees in dealing with applicants for
subgra.nts. However. grantees are en.
couraged to avoid more detailed or bur...
densome application requirements for
subgrants.
(b) Authorized fOTT113 and instructions
fOT governmental organizations. (1) In ap-
plying for grants. applicants shall only
use standard application forms or those
289
~12.51
prescMbed by the granting agency with
the approval of OMB under the Pap~r-
work Reduction Act of 1980.
(2) Appl1carits are not required to
submit more than the o:dginal and two
copies of preapplfoa.t:ions or applIca-
tions.
(3) Applicants. must follow all appli-
cable instructions that bear OMB
clearance numbers. Federal agencies.
may specifY' and describe the programs,
fUDctions, or. activtt1es that wi)] be
used to plan, budget, and evaluate the
work under a grant. Other supple-
mentary instructions may be Issued
only with the approval of OMB to the
extent required under the Paperwork
Reduction Act of 1980. For any stand-
ard form, except the SF-424 facesheet,
Federal agencies may shade out or in-
struct the applicant to "disregard any
line item that is not needed.
(4) Wben a. grantee applies for addi-
tional funding (such as a continuation
or supplemental award) or amends a
previously ,submitted appl1catiOD. only
the affected pages need be submitted.
Previously Bubmitted pages with iDfor-
matiOD that is still current need Dot be
resubmitted.
~ 12.51 state plans.
(a) Scope. The statutes lor Borne pro-
grams require States to Bubmi't plans
before recelviDg gruts. Under regula.;.
tiOD8 :lmplement1ng E:l:ecut1ve OJ'der
12372, "Intergovermnentai Review of
Federal Programs," States are allowed
to sinipllt,v. consolidate and subet;1tute
plans. This sectJOD contalns additional
provisions for plans that are subject to
regulations implementing the Execu-
tive order.
(b) RequiTements. A State Jieed mee't
only Federal adm1n1strat1ve or pro-
gramma.t1c requirements lor a plan
that are in statutes or codilled regula-
tions.
(c) Assurances. In each plan the State
will include an assurance that the
State shall comply with all applicable
Federal statutes and regulations in ef-
fect with respect to the periods for
which it receives grant funding._ For
this assurance and other assurances re-
quired in the plan, the State may:
(]) Cite by number the statutory or
regulatory proviSions requiring the as-
surances and affirm that it gives the
43 CFR $ublilfe A (1(H-02 Edlllon)
assure.nces required by those pr'ovi-
sJons.
(2) Repeat the assurance language in
the statutes or regulations, or
(3) Develop its ow>> language to the
extent permitted by law.
(d) Amendments. A State will amend a
plan whenever necessary to reflect: (1)
New or revised Federal statutes or reg-
ulations or (2) a material Change in any
State law. organization. policy. or
State agency oPeration. The State will
obtain approval for the amendment 'and
its effectiVe date but Deed submit for
approval onlY the amended portions of
the plan.
~ 12.52 Special enmt: or sublJ'BDt: eon~
c1itio... for "bleb-risk" gnmtees.
(a) A grantee or BUbgra.ntee may be
considered "high- risk" if an awarding
agency determines that a grantee or
subgrantee:
(1) Has a. history of unsatisfactory
perform'ance. or
(2) Is not financially stable. or
(3) Has a management system which
does not meet the management stand-
ards set forth in this part. or
(4) Has not conformed to tenps and
conditions of previous awards. or
(5) Is otherwise-not responsible; and
11 the awarding agency detenn1nes that
an awardw:tU be made. special condi-
tions and/or restrictions shall' cor-
respond to tbe htl"h r:lisk condition and
shall be included in the award.
(b) Spec1aJ conditjons or restrictions
may mclude:
(1) Payment on a reimb\l!fJement
bas1S;
(2) Withholding authority to proceed
to the next phase until receipt of evi-
dence of acceptable performance within
a given funding perlod;
(3) Req,uir:l.J1g additJonal. more de--
tailed financial reports;
(4) Additional project monitoring;
(5) Requiring the grante or sub-
grantee to obtain tecJmjcal or manage-
ment assistance; or
(6) EstabUsblng additional prior-ap-
provals.
(c) If an awarding agency decides to
impose such conditions, the awarding
official will notifY the grantee or sub-
grantee as early as possible, in writing,
of:
290
Office ollhe Secretory. Interfor
(1) Tbe nature of the special condi-
tlons/restrictlons;
(2) The reason(s) for imposing them;
(3) The corrective a.ctious which must
be taken before they w:f11 be removed
and the time allowed for completing
the corrective actions and
(4) The method of requesting recon-
sideration of the condit1onQ/restr1c-
tions imposed.
POST-AWARD REQUIREMENTS
Financial Administration
f 12.60 Standards lor financial man-
agement sYstems.
(a) A State must expand and account
for grant funds in accordance with
State laws and procedures for eXpend-
ing and accounting for its own funds.
Fiscal control and accounting proce-
dures of the Sta.te. as well as its sub-
grantees and cost-type contractors.
must be sufficient to-
(1) Permit preparatlonof reports re-
quired by this part and the statutes au-
thorizing the grant. and
(2) Permit the tracing of funds to a
level of expenditures adequate to es-
ta.blish that such f\mds have DOt. been
used in violation of 'the restrictions
and prohibitions of appl1cable statutes.
(b) The financial management BY8- .
terns of other grantees and subgrantees
must meet the lonow:lng standa.rds:
(1) FInancial reporUnl1. Accura.te, cur-
rent, and comple_te disclosure of the 11-
DaDcial results of ftnanc1ally assisted
activities must be made in accordance
wlth the 1Inanc1o.J reportJng require-
ments of the grant or subgrant.
(2) Accounting records. Grantees and
subgrantees must maJDta1D. records
which adequat.ely id8Jitif.Y the BOuro,e
and application 01 f\mds provided for ft-
nancially-a.ssisted activities. These
records must contain information, per-
ta1ning to grant or subgrant awards
and authonzations. obligations, unobli-
gated balances,_ assets, UabilitJes. out--
lays or expenditures, and income.
(3) Internal control. Effective control
and accountability must be maintained
for all grliDt and subgrant cash. real
and persoDal property. and other as-
sets. Grantees_ and subgrantees must
adequately safeguard all such property
and must assure that it is used solely
for authorjzed purposes.
512.61
(4) Budget contTol. Actual expendJ-
tured or outlays must be compared
with budgeted amounts for each grant
or subgrant. Financial information
must be related to performance or pro-
duct1vity data. including the develop-
ment ot unit cost intonnatioD when-
ever appropriate or specifically re-
quired -in the grant or subgrant agree-
ment. If unit cost data are required. es-
timates based on' available documenta.-
tion will be accepted whenever pos-
sible.
(5) Allowable cost. AppllcableOMB
cost principles, agency program regula-
tions, and the terms of grant and
subgrant agreements will be followed
in . determ.1'ning the reasonableness" al-
10wabJ1i'ty. and allocability of costs.
(6). SoUrce documentation. AccoUDtlDg
records. must be supported oy such
Bource documentation as cancelled
checks. paid bills._ payrolls, time and
attendance records, contract and
subgrant award, documents, etc.
(7) . Cash management. Procedures tor
m1n1mizmg the tiJ:ll8 elapsing between
the transfer of funds from the U.S.
Trea.sury and disbursement by grantees
and BUbgra.ntees must be followed
whenever advance payment procedures
are \1Bed.Grantees must establish rea-
sonable proc~ures to.eJ1sure the re-
ceipt of reports o,n subgrantees' cash
balances and cash dis'bur8ements 1n
sutnaient t1me to. enable them to pre-
pare complete a:.nd accurate cash traD.8-
actiODS reports to the awarding agen-
cy. When advances are made by letter-
of-credit or electronic transfer .of funds
methods. the grantee must make
drawdowns as close as posafble to the
time of making c:Usbursemen,ts. Grant-
ees must monitor cash ~awdowns by
their subgrantees to assure that they
conform substantialb to the same
standards of t1ming -and amoUDt as
apply to advances to tbe grantees.
(c) An awanUDg agency may review
the adequacy 01 the ftnanc1aJ manage"'
ment . system of any applicant for fi-
nancial as81stance as part of a
preaward review or at any time subse-
quent to award.
~ 12.61 Payment.
(a) Scope. This section preSCribes the
basic standard and the methods under
291
~12.61
which a Federal agency will make pay-
ments to grantees, and grantees will
make payments to subgrantees and
contractors.
(b) Ba3ic standard. Methods and pro-
cedUres for payment Bhall minimIze"
the time elapsing between the transfer
of funds and disbursement by t.be
grantee or subgrantee. in accordance
with. Treasury regulations at 31 CFR
part 205;
(0) Advance&'. Grantees and sub-
grantees shall be paid j"n advance. pro-
vided they maintain or demonstrate
the willingness and ability to maintain
procedures to minimize the time elaps-
ing betw~en the transfer of the funds
and their disbursement by the grantee
or subgTaDtee.
(d) Reimbursement. Reimbursement
shall be the preferred method when the
requiremelits in paragraph (0) of this
section are not met. Grantees and Bub-
grantees may also be paid by relm..
bW'Bement for any construction grant.
Except asotherwlse specified in regula-
tion. Federal agencies shall not use 'the
percentage of completion method to
pay construction gra.nts. The grantee
or subgrantee may use that met.b.od to
pay it.s construction contractor. and if
it does. the award1ng agency's pay-
ments to the grantee or 8ubgrantee
will be' based 'OD the grantee's, or sub-
grantee's actual rate of d1sbursement.
(e) Working cap/tal ad""""".. If a
grantee cannot meet the crIteria for
advance payments descr:lbed, in para-
graph (e) of We eectlon. and the Fed-
eral agency bas determ1Ded that reim-
bursement ,is Dot feaaibJe beca.U'se the
grantee lacks 8111ftclent working cap-
ital. the awardblg agency may ProVIde
cash or a working capital adv~ce
basis. Under this procedure the award-
ing agency shall advance cash to the
grantee to cover ita est1mated dis-
bursement needs (or an 1nJt1al periOd
gel1erally geared to the grantee's die-
burs1ngcycle. Thereafter. the award:IDg
agency shall re1mburse 'the grantee for
its actual cash disbursements. The
working capitai advance method of
payment shall Dot be used by grantees
or subgrantees if the reason for using
such method is the unWillingness or in-
abilJty of the grantee to provide timely
advances to the subgrantee to meet the
43 CFR SubliHe A (1(H-Q2 Edition)
subgrantee's actual cash disburse-
ments".
(f) Effect. of program income, refunds,
and audit recoveries on payment. (1)
Grantees and subgrantees shall dis-
burse repayments to and interest
earned on a revolving fund before re-
questing additional cash payments for
the same actJvity.
(2) Except as provided in paragraph
(f)(1) of this sectJon, grantees and sub-
grantees shall disburse program i;o-
come, rebates. refunds, contract settJe-
menta, audit reooveI1es a.n.d interest
earned on such funds before requesting
additional cash payments.
(g) Withholding payments. (1) Unless
otberw1ae required by Federal statute.
awa.rdJng agencies shall not withhold
payments for proper charges- incurred
by grantees or subgrantees unle88--
(1) The grantee or subgrantee has
failed to comply with grant awai"d con-
ditions. or
(if) The grantee or subgrantee is in-
debted to the U.nited States.
(2) Cash withheld for failure to com-
ply with grant award . condition, but
without suspension of the grant, shall
be released to the grantee upon subse--
quei::J.t compliance. When a grant is sus-
pended. payment adjustments wUI be
made in accordance with 112.83(0).
(3) A Federal ~enoy shall not make
payment to grantees lor amountlli that
are withheld by IT&Jltees or sub-
grantees from payDl@t to contractors
to assure sat1atactory completion of
work. Payments shall be made by the
Federai agency when the grantees or
subgrantees actually disburse the with-
held tu.nds to tb,e contractors or to es-
crow accounts estabUBbed to assure
satisfactory completion of work.
(h) Caoli deporilori.,. (1) Cometent
with the national goal of ezpandlng the
opportunities for minority oomness en-
terprises, grantees and subgrantees are
encouraged to use minority banks (a
bank which is owned at least 50 percent
by minority group members). A list of
minority owned ba.nks can be obtatned
from the MinoI1ty Business Develop-
ment Agency, Department of Com-
merce, Washington, DC 20230.
(2) A grantee or sUbgrantee shall
maintain a separate bank account only
when required by Federal-State agree-
ment.
292
Offlee 0' the Secretory. Interior
(1) Interest earned on advances. Except
for interest earned on advances of
funds exempt under the Intergovern-
mental Coopera1;Jon Act (31 U.S.C. '6501
at seq.) and the Indian Selt-Determina-
tlon Act (23 U.S.C. 450), grantee. and
8ubgrantees shall promptly~ but at
least quarterly. remit interest e~ed
on advances to the Federal agency. The
grantee or sUbgrantee may keep inter-
est amounts up to S100 per year for ad-
ministrative expenses.
112.62 Allowable costs.
(a) Limitation on - use of funds. GraDt
funds may be used only for:
(1) The allowable costs of the grant-
ees, subgranteell and cost-type contrac-
tors, lnclucUng allowable costs 1n the
form of payments to - f1xed~price con~
tractors; and
(2) ReaSonable fees or profit to cost-
type contractors 1)ut not any fee or
profit (or -other increment above allow-
able costs) to the grantee or sub-
grantee.
(b) Applicable cost PTinciple.s. For each
kind of organization. 'there is a set of
Federal principles for determining al-
lowable costs. Allowable costs w1li be
detennined in accordance w1.th the cost
p.r1nciples&pplicable to the organiza..-
tion incurring the costs. The follow1Dg
Mart 11ats the kinds of organiza:tJ.ons
an4 the app11cable' cost principles.
Fur"-~"'i-
sa.... Joc.I or IndIM ...,
...........
PrMdit nonprvll ~Ion
oItwlhln.. (1) Indtullon
"'--.(2)
hoepIIaf. (If" (3) orpnizdon
named In OMS a-cu_ A-
122_noIl1U~101hal
..........
Ed~lnslllulloM.__.
FOf\iltO&OIII.nr.tIonolher
lhan.hosp/IaI.....nClr'-
ganiZJlllon named In OBM
Ch:ufar A-122 as nolllUb-
jed: to hi m::ulu.
u.. ... pI'fM:IpIM !n-
OMS Ch:uW A-87.
OBM CIrcuW A-122.
OMS Circular A-21.
48 crn PM 31. Connd
Coal ~endPnlce-
durn. orunlJonnc:o.t.r:--
eountIng Anien:b ht
compty wIIh coat pr1ncIpIea
~lDth.Fed.,.1
.gency.
~ 12.63 Period of availability of tU.nds..
(a) General. Where a funding period is
specified, a gr8.lltee may Charge _to the
award only costa resulting from Obliga-
tions of the funding period unless car-
ryover of unobligated baJances is per-
mitted, in which case the carryover
~12.64
balances may be charged for costs re-
sUlting from obl1gat1ons of the subse-
quent funding period.
(b) Liquidation of obligations. A grant-
ee must liquidate all obligations in-
curred under the award not later than
90 days after the end of the funding pe-
riod (or as specified in a program regu-
lation) to coincide with the submission
of the annl,1al Financial Status Report.
(SF-269). The Federal agency may ex-
tend this deadline .at the request of the
grantee.
f 1.2.64 MatchiD.. or coat sharing.
(a) Basic rule: Costs and contributions
. acceptable. With the quaU11catfons ,and
exceptions listed in paragraph (b) of
tl:i18 section. a. matChing or cost shar-
ing requirement maybe satisfied by ei-
ther or both of the follOwing:
(1) Allowable costs incurred by the
grantee, subgrantee or a cost-type con-
tractor under .the assistance agree-
ment. . This includes allowable coata
borne by noli-Federal grant.s or by oth-
ers cash donati-ons from non-Federal
third parti,es.
(2) The value of third party in-kind
contributions appl1cable to the period
to which the cost sharing or matching
reqU1remellts applies.
(b) QuaUjication.s and e:rceptions-(l)
Cosu bomeby other Federal grant agree-
ments. Except as provided by Federal
statute. a coat 8harmg or matchi:bg re-
quirement may not be met by costa
borne by anotber Federal grant. This
prohibition does not apply to income
earned by a grantee or subgrantee f.rom
a contract awarded under anotber Fed-
eral grant.
(2) General revenue sharing. For the
purPose ot this aect1on. genera] revenue
sbariDg: funds distributed under 31
U.S.C. 6702 are Dot considered Federal
grant .fUnds.
(3) Cost or contributions counted to-
wards other Federal.cosU-sharing require--
menu. Neither costs nor the values of
third party in-kind contributions may
count towards satisfYing a cost sharing
or matching reqUirement of a grant
agreement if they have been or Will-be
counted towards satisf.Ying a cost shar-
ing or matching requirement of an-
other Federal grant agreement, a Fed-
eral procurement contract, or any
other award of Federal funds.
293
512.64
(4) Costs financed by program income.
Costs :f1Danced by prog-rarn Income. as
defined in S 12.65. sha.ll not count to-
wards sat1sfying a cost sharing or
matching requ1I'ement unless they are
expressly permitted in the terms of the
assistance agreement. (This use of gen-
ez:al program Income is described in
!12.66(g).)
(5) Services or property financed by in-
come earned by contractors. Contractors
under a grant may earn income from
the activities carried out under the
coilt.ract in addition to the amounts
earned from the party awarding the
contract. No costs of services or prop-
erty supported by this income may
COUDt toward satisfying a cost sba.rlng
or matcb:lng requirement unless other
provisions of the grant agreement ex-
pressly permit this kind of income to
be used to meet the requirement.
(.6) Records. Costs and third. party 1n-
kind contributIons counting towards
satisfYing a cost sharing or ma.tching
requirement must be ver1ftable from
the records of grantees and- subgrantee
or cost-type contractors. Tbese records
must show how the value placed on
third party in-kind ,contributions was
derived. To the eztent feasible, volui1-
teer services will be supported by the
same methods that the .organ1zation
uses to support the allocability or reg-
ular p8rBODIJ:el c08t8.
(7) SpecIal standaTcls fOT thfTa party In-
kind contributio.... (I) Thlrd party In-
kind contributions count towards sat-
isfying a cost sharing or matching re-
quirement only where, if the party re-
ceiv1.Dg the contributions were to pay
for them, the payments would be allow-
a.ble costs.
(iI) Some third party in..kindcon-
trlbutioDs are goods, and serv1ceB that,
if the grantee, subgrantee, or con-
tractor receiving the contrlbution bad
to pay for them, the payments would
have been an indirect costs. Costa sha.r-
iug or matching credit for such con-
tributions shall be given only jf the
grantee, subgrantee. or contractor has
established. along w:fth its regular indi-
rect cost rate, a special rate for allo-
cating to indiv1dual projects or pro--
grams the vallie of the contributions.
(11i) A third party in-kind contribu-
tion to a fixed-price contract may
count towards satisfYing a cost sharing
43 CFR Subtitle A OD-I-02 Edillon)
or matching requirement only if it re-
sults 1n:
(A) An increase in the servkes or
property provided under the contract
(without add:ltlonal cost to the grantee
or subgrantee) or
(B) A cost savings to the grantee or
subgrantee.
Uv) The values placed on third party
in-kind contributions for cost sharing
or matching purposes will conform to
the rules In the succeeding sections of
this part. If a third party in-kind con-
trlbution is a type not treated in those
sections, the va.lue placed upon it sha.ll
be fair aDd reasona.ble.
(c) Valuation of- donated sennCeS-(l)
Volunteer services. Unpaid services pro-
vided to a grantee or 8ubgrantee by in-
dividuals w1ll be 6valued at rates con-
sistent. with those .ordinar1ly paJd for
similar work In the grantee's QJ:" sub-
grantee's orgari::1zation. If the grantee
or subgrantee does not have employees
performIng similar work, the rates will
be consistent withtho8e .ordlna.rUy
paid by other employers for siJJi1lar
work in the same labor market. In ei-
ther case, a reasonable amount for
fringe benefits may be included in tbe
valuation.
(2) Employees of other organizati<ms.
Wben an employer other than a grant-
ee. 8Ubgrantee, orcost-ty}:le con:tractor
f\1r:njshes tree ot ChaJ"B'8 the services or
an employee in the employee '8 normal
line of work. tJ1e services w1l1 be valued
at the employee's regular rate of pay
exclusive of the employee's Mngs ben-
efits and overbead costs. If the services
are in a different line of work,pa.ra.-
graph (c)(1) of this section appUes.
(d) Valuation of third party donated
supplies and loaned equipment OT JpaCe.
(1) If a third party donates supplies,
the contribution will be valued at the
market value of the supplies at the
time of donation.
(2) U a third party donates the use of
equipment or space in a building bu t
retains tjtle. the contribution will be
valued at the fair rental rate of the
equipment or space. _
(e) Valuation of thiTd party donated
equipment. buildings, and land. If a third
party donates equipment, bufldings, or
land, and tJtle passes to a grantee or
subgrantee, the treatment of the do-
nated property will depend upon tlIe
294
OIIice of the Secretory, Interior
purpose of the grant or subgrant, as
follows:
(1) Awards fOT capital e.rpendituTes. If
the purpose of the grant or subgra.nt 1s
to assist the grantee or subgrantee in
the acquisition of property. the market
value of that property a.t the tJme of
donation may be counted as cost shar,..
1ng or matching.
(2) Other awards. If assjsting in the
acquisition of property 18 not the pur-
pose of the grant or subgrant, para-
graphs (e)(2) (I) and (II) or this section
apply:
(1) If approval 18 obtained from the
awarding agency, tbe market value at
the tJme of donation of the donated
equipment' or buildings and the flUr
rental- rate of the donated land may be
counted as cost sharIng or matching.
In the case of asubgra.nt. the tenns of
the grant agreement may require that
the approval be obta.1ned from the Fed.-
eral agency as well as the grantee. In
all C&$8S, the approval may be given
onlY 11 a purchase of the equipment or
rental of the land would be a.pprov~d as
an allowable direct cost. If any Part of
the ,donated property was acquired
with Federal funds, only the nOD-Fed-
eral share of the property may be
counted as cost-sharing or matcbing.
(fi) If approval Is not obtained under
paragraph '(eX2)(I) orthls sectlon, no
amount may be eouated for donated
land, and' only depreo1ation or use al-
lowaDees may be counted for donated
equipment and bulldlngs. The deprecla-
tjon or' use allowances tor Ws' property
are not treated as third party m-klnd
contributions. Instead. tb"ey are treat-
edas costs incurred by the grantee or
subgrantee. They are comput.ed and al-
located (usually as indirect costs) in
accord,ance with the cost principles
specll1ed in f 12.62, in the same way as
depreciation or use allowances for pur-
chased equipment and buildings. The
amount of depreciation or - use allow-
ances for donated equipment andbulld-
ings Is based on the property's market
value at the time it was donated.
(0 Valuation of grantee OT subgrantee
donated real property' fOT constructfdn/ac-
quisition. If a gTaDtee or subgrantee do-
nates reaJ property for a construction
or facilities acquIsition project, the
current market value of that property
may be counted as cost sharing or
S 12.65
matcb1ng. If any part of the donated
property was acquired with Federal
funds, only the non-Federal share of
the property may be counted as cost
sharing or mat,ching.
(g) Appraisal of Teal property. In some
cases under paragraphs (d), (e) and (f)
of this section. It will be necessary to
establ1sh the market value of land or a
bunding or the fair rental rate of land
or _of space in a building. In these cases,
the Federal agency may require the
market value or fair rental value be set
by an independent appraiser, and that
the value or rate be certifIed by the
grantee. This requirement will also be
imposed- by the grantee on subgrantees.
f 12.65 Program jncome~
(a) General. Grantees are encouraged
to 88m income to defray progTarn
costs. Program income includes income
from fees for services performed.. from
the use or rental of real or personal
property -aCqUired with grant funds,
from the sale- of commodities or items
fabricated under a grant agreement,
and from payments of pIincipal and in-
terest on loans made with grant funds.
Except as otherwise proVided in regula-
tions of the Fed.eral agency, program
income does not include interest on
grant tund~ rebates. credits, discounts,
retnnds, etc. and interest earned on
any of them.
(b) Definition of program Income. Pr0-
gram income me8.na gross income re-
ceived by the grantee or subgrantee di-
rectly. generated by a grant supported
activity, or earned only as a result'of
the grant agreemeDt during the grant
perlod. "DurIng the grant period" Is
the time between the effective date of
the award and the ending date of the
award. reDected jn the final financial
report.
(c) Cost of generating prOfITaTn income.
If authorized by. Federal regulations or
the grant agreement, costs incIdent to
the generation of program. Income may
be deducted from gross income to de-
termine program income.
(d) Governmental revenues. Taxes, spe-
cIal. assessments; levies, fines, and
other such revenues raised by a. grantee
or subgrantee are not program income
unless the revenues are speCifically
identified in the grant agreement or
295
~12.66
Federal agency regulations as program
income.
(e) Royalties. Income from royalties
and license .fees for copyrighted ma't;B-
rial, patents, and inventions developed
by a grantee or Bubgrantee 1s program
income only if the revenues are specifi-
cally identified in the grant agreement
or Federal agency regulations as pro..;
gram income. (See U2.74.)
(0 Property. Proceeds- f':rom the sale of
real property or equipment wi)) b.e ban-
dled in accordance with the require-
ments ofH12.71 and 12.72.
(g) Use of program income. Program
income shall be deducted from outla.ys
which may be both Federal and OOD-
Federal as described below, unless the
Federal agency regulatJons or the
grant agreement spec1fy another alter-
native (or a combination of the alter-
natives). In specifYing 'alternatives. the
Federal agency may distinguish be-
tween income ea.rned by the grantee
and Income earned by subgrantees and
between the sources, kinds, or amounts
of income. When Fedel'al. agendes au""
tboI1ze the alternatives in paJ'agrapbs
(g) (2) and (3) of this section. program
income In excess of any limits stipu-
lated shall also be deducted from out-
lays.
(1) Deduction. OrdlnarUy program in-
come Bball be deducted from. totaJ al-
lowa.ble costs to deteImfne the net 8J-
lowable costs. ProIT&ID income ab8J.l be
used for current; costs. unless 1il:J:e Fed-
eral agency - author1se8 otherwise. Pr0-
gram income which the giantee did not
anticipate at the time of the award
shall be used to reduce the Federal
agency and grantee contributions rath-
er than to increase the furids cCl)m-
mltted to- the project.
(2) Additfon. When authorized. pro-
gram income may be ~ded to the
funds committed to the grant agTee-
ment by the Federal agency and the
grantee. The program Income, shall be
used for the purposes and under the
conditions of the grant agreement..
(3) Cost sharing or matching. When au-
thorized, program iDcome may be used
to meet the cost sbarlng or matching
requirement of the grant agreement.
The amount of the Federal grant a.ward
remains the same.
(h) Income after the award period.
There are no Federal requirements gov-
43 CFR Sublille A OG+..ll2 Edition)
erninlJ the disposition of program in-
come earned after the end of the award
period (i.e., until the" ending date of the
flnal11Ilancia1 report, see paragra.ph (a.)
of this section), unless the tenns of the
agreement. or the Federal agency regu-
latioDsprov1de otherwise.
~ 12.66 Nou.Federal aucUt..
(a) Basic rule. Grantees and sub-
grantees are responsible for obta.Jnlng
audits in accordance with the Single
Audit Act Amendments of 1996 (31
D.S.C. 7501-750'7) and revised OMB Cir-
cular A-133. "Audits of States, Loca.)
Governments, and Non-Protlt Qrga.ni-
zat1oDS.H The audits shall be made by
an Independent auditor in accordance
with generally accepted government
auditing standards covering financial
audits.
(b) Subgrantees. State or local. govern-
ments, as those terms are defined for
purposes of the S1Dgle Audit Act
Am.9l1dments of 1996. that provide Fed-
eral awards to a subgrantee. which ex-
pends $SOO,OOO or more (or other
amount as Specified by OMB) in "Fed-
eral a.wards in a fiscal y-ear, shall:
(1) Determine wbetber State or local
subgrantees have met; the audit re-
quirements of the Act and whether sub-
grantees covered by OMB Circular A-
110. "Uniform AdJ:pjDiatrattve Require-
meDts tor Grants and AgreeJnents with
lDst1tutions of Jl1gher Education, Hos-
pltaJs, and Otbsr Non-ProfIt Organlza-
tioDS," bave- met the- aucUt requtre-
meDt-s of the Act. Commercial contrac-
tol'Jl (private for~proo.t and pr.Ivate and
governmental organizations) providing
goods and services. to State and local
governments are Dot required to bave a
sJngle audit performed. State and local
governments should use their own pro-
cedures to ensure that the contractor
has compl1ed with laws and regulations
a1Iect1Dg the expenditure of Federal
funds;
(2)" Determine wbetber the sub-
grantee spent Federal B.88istance funds
provided in accordance with applicable
laws and regulations. This may be -ac-
complished by reviewing an audit of
the sUbgrantee made in accordance
with the Act, C1rcular A-llO, or
through other means (e.g., program re-
views) if the subgrantee has not had
such an audit;
296
Office of the Secretory. Interior
(3) EDsure that appropriate correc-
tive action is taken within six months
after receipt of the audit report in in-
stance of noncompliance with Federal
laws and regulations;
(4)'.Consider whether sUbgrantee au-
dits necessitate adjustment of the
grantee's own records; and
(5) Require each sUbgrantee to permit
independent auditors to bave access to
the-records and financiaJ statements.
(0) Auditor selection. In arranging for
audit services. 112.36 aha)) be followed.
[53 FR 80'1'1 and 8081, Mar. n, ]988, as amend-
ed a.t 62 FR 45939. 45945. Aug. 29, 1997)
CHANGES, PROPERTY. AND SUBAWARDS
~ 12.70 Change&.
(a) General. Grantees and sUb:grantees
are Permitted to rebudget within, the
approved direct cost budget to meet
unanticlpatedrequirements and may
make limited program changes to the
approved project. However, unless
wa.1ved by the awarding agency, certain
types of post-award' changes in budgets
and projects shall require the prior
written approval of the aWarding agen-
cy.
(b) Relation to colt principles. The ap-
pl1cable cost principles (see 112.62) COD-
tain requirements for prior approval of
certain types oC costs. Except where
waJved, those requirements apply to all
grants and subgrants even if p&ra._
graphs (0) through (0 of this section do
Dot.
(0) Budget change~l)
Noncon3truction projects. Except as stat-
ed ill other regulations or an award.
document, grantees or sUbgrantees
shall obta1n the prior approval of the
awarding agency whenever any of the
foJlowing changes is anticipated under
a nonconstruction award:
(1) Any revision which would result
in the need for additional funding.
(11) Unless waJved by tbe awarding
agency, cumula.tive transfers among dJ-
rect cost categories. or. if appl1cable.
among separately budgeted programs,
projects, functions, or activities which
exceed or are expected to exceed ten
percent of the current total approved
budget, whenever the a.warding agen-
cy's share exceeds S1OO,OOO.
(ijj) Transfer of funds allotted for
training allowances (Le., from direct
!i 12.70
payments to trainees to other expense
categories).
(2) Construction projects. Grantees and
subgrantees shall obtain prior written
approval (or any budget revision which
would result in the Deed for additional
funds.
(3) Combined construction and non-
construction projects. When a gt'aDtor
su bgrant provides funding for both con-
struction . and nODconstructJon" activi-
ties. the grantee 'or subgrantee must
obtain prior written apProval from the
awarding agency before making any
fund or budget transfer from nOD-
construction to construction or vice
versa.
(d) Programmatic changes. Grantees or
su bgrantees must obtain the prior ap-
proval of the awarding agency when-
ever any of the follOwing actions i8 an-
ticipated:
(]) Any revision of the scope or objec-
tives of the "project (regardless of
whether tllere is an assocJated bUdget
reVision requiring prior approval).
(2) Need to extend the period of ava.:1)-
abJlity of funds.
(3) Changes in, key persons in cases
where specified in an application or a.
grantawa,rd. In research" projects, a
change in the project director or prin-
cipal investigator shall alwayS require
approval unless waived by the award-
ing agency.
(4) Under noncoDBtructlon projects.
contrac~ out, subgra,Dting (if a.u-
thorlzed by law) or otherwise obtaln1Dg .
the services of a third party to perfonn
activit1$8 which are central ,to the P;Ul"-
poses of the award. This approval re-
Qultement .is in addition to the-ap...
proval requirements of 112.76 but d08s
not apply to the procurement of equip-
ment, supplies, and general support
services.
(e) Additional prior approval requlTe-
ments. The awarding agency may not
require prior approval for any budget
revision which is not described in para_
graph (c) of this sectioD.
(f) Requesting priOT approval. (1) A -re-
quest for prior approval of any budget
revision will be in the same budget for-
mal the grantee used in' its application
alJd shall be accompanied by a nar-
rative justification for the proposed re-
vision.
297
912.71
(2) A request for a prior approval
under the applicable Federal cost prin-
ciples (see U2.62) may be made by let-
ter.
(3) A request by a subgrantee for
prior approval will be addressed in
writing to the. grantee. The grantee
will promptly review such request and
shall approve or disapprove the request
in writing. A grantee will Dot approve
any budget or project rev1B1on which Is
inconsistent with the purpose or terms
and conditions of the Fedl>>'al grant- to
the grantee. If the rev1sion. requested
by the Bubgrantee would result in a
change to the grantee's approved
project wh1chrequrres Federal prior
approval, tb,e grantee will obtain the
Federal agency's approval before. ap-
prov1ng the subgrantee's request.
U2.71 Reo) property.
(a.) Title. Subject to the obligations
and conditions set forth ~n this section.
title to real property acquired under a
grant or subgrant will vest upon acqUi-
sition in the grantee- or Bubgrailtee re-
spectively.
(b) Use. Except as otherwise provided
by Federal statutes, rea.) property will
be used for the originany authorized
purposes as long as needed for that pur-
poses, and the 'grantee or subgrantee
shall Dot dispose of. or encumber its
title or other interests.
(e) Disposition. When real property 18
no longer needed tor the orlg1naJly au-
thorJzed purposet the gr&J1tee or sub-
grantee will request dfSposJtiOD in-
structions from the awarding a.geilcy.
The mstructions wfll provide for one of
the following alternatives:
(1) Retention o/tttle. Ret.aJ.n title after
compensat1Dg the aWardJng agenCY.
The amount paid to the awarcUng-a,geJ1-
cy will be computed by applying the
awarding agency's percentage of par-
ticipation in the cost of the original
purchase to the fa.1r market value of
the property. However, In those situa-
tJons where a grantee or subgrantee is
disposing of real property acquired
with grant funds and acquiring replace-
ment real property under the same pro-
gram, the Det proceeds from the dis-
position may be used as an offset to the
cost of the replacement property.
(2) Sale of property. Sell the property
and compensate the awarding agency.
43 CFR Sublille A (I()- )-(12 Edition)
The amount due to the awarding agen-
cy will be calcula.ted by applying the
awarding agency's percentage of par_
ticipation in the coat of the original
purchase to the proceeds of the sale
after deduction of any actual and rea-
sonable selling and ftxJng-up expenses.
If the grant 1s still active, tbe net pro-
ceeds from sale ma.y be offset against
the original cost of the property. When
a grantee or sUbgrantee is directed to
sell property. sales procedures shall be
followed that provide for competition
to the extent' practicable and result in
the highest posSible return.
(3) Transfer 0/ title. Transfer title to
the awarding agency or to a. thlrd-
party desfgnatedlapproved by the
awarding agency. The grantee or sub-
grantee shaJl be pafdan a.mou,nt cal-
culated. by applymg ',the grantee or sub-
grantee's percentage of pa.rtfc1pation
in the purchase of the real property to
the current fair ma.rket value of the
property.
U2.72 EqWp.....t.
(a) Title.' Subject to the obligations
and condlt1QD.s set forth in this section,
title to equipmQDt acquired under a
grant or Bubgrant will vest upon acqui-
sitton in the grantee or subgrantee re-
spectively.
(b) Statu. A State will U88, manage,
and dispose of equipment acquired
under a 'gra.nt by the State in a.ccord-.
anoe with State laws and procedures.
Other graJitees and 9ubgraDtees will
follow paragraphs (c) through (e) of
this SectlOD.
(c) Use. (1) Equipment shall be used
by the grantee or BUbgrantee in the
program or project for which it was ac-
quired as long as needed, whether or
not the project or program continues
to be supported by Federal tunds. When
DO longer needed for the original pr0-
gram or project, the equipment may be
used in other activities currently or
previously supported by a Federal
age.ncy.
(2) The grantee or subgrantee shall
also make equipment ava1l~le for use
on other projects or programs cur-
rently or previously supported by the
Federal Government, prOViding such
use will not interfere with the work on
the projects or program for whjch jt
298
Office of .he Secretary. Interior
was orlg1nally acquired. First pref-
erence for other use shall be given to
other programs or projects supported
by the a.warding agency. User fees
should be considered if appropriate.
(3) Notwithstanding the encourage-
ment in U2.65(a) to earn program In-
come, the grantee <or subgrantee must
Dot use equipment acquired with grant
funds to provide services for a fee to
compete unfairly with private compa-
nies that provide equivalent services.
unless speclfica.lly pennltted or con-
templated by Federal s;tatute.
(4) . When acquiring replacement
9quJpment, the grantee or Bubgrantee
may use the equipment to be replaced
as a trade-in or sell the property and
use the proceeds to offset the cost. of
the repla.cement property. Bubject to
the approval of the awardIDga.gency.
Cd) Management requirements. Proce-
dures for managing equipment,
(including replacement equipment).
whether -acquired in wbole or in part
with grant funds. until disposition
takes place will. as a minimum. meet
the follOwing requ:1rements:
(1) Property recoI'dsmust _ be main-
tained that include a descr1ptJon of the
property. a senal number or other
identification number. the source of
property. who holds title. the acquis1-
tion date. and cost of the property. per-
centage of Federal partJ.CJpat.1on in the
cost of the property. the locatJoD. use
and condition of the propei1;Y. and aDY
ultimate disposition data including the
date of disposal and sale price of the
property.
(2) A Physical inventory of the prop-
erty must be taken a..nd the results rec-
onciled 'with the property' - records at
'least once every two years. ,
(3) A control system must be devel-
oped. to ensure adequate safeguards to
prevent lOBS. damage. or theft of the
property. Any lOBS. damage. or theft
shall be investigated.
(4) Adequate maintenance procedures
must be developed to keep the property
in good condition.
(S) If the grantee or subgrantee is au-
thorized or required to sell tbe prop-
erty. proper sales procedures must be
establisbed to eDsure the highest pos-
sible return.
(e) Disposit,ibn. Wben original or re-
placement equipment acquired under a
~ 12.72
grant or subg:r:ant is no longer needed
for tlJe original project or program or
for other activities currently or pre-
viously supported by a Federal agency.
disposition of the equipment will .be
made as follows:
(1) Items of equipment with a current
per-unit fair market value of less than
SS.OOO may be retaIned. sold or other-
wise dispo$ed of with no further obUg-a-
tion to the awarding agency.
(2) Items of equipment with a. current
per unit fair market value in excess of
$5.000 may be retained or sold and the
awarding agency shall bave a. right to
an amount calculated -by multiplying
the current market value or proceeds
from sale by the awarding a.gency's
share of the equipment.
(3) In cases where a grantee or sub-
gn,Dtee fails to take appropriate dis-
position actions. ,the aWarding agency
may direct the grantee- or subgrantee
to take excess and disposition actions.
(f) Fedeml equipment. In the event a
grantee or subgrantee is provided Fed-
erally-owned equipment:
(I) TItle will remain Vested in the
Federal Government.
(2) Grantees or subgrantees will man-
age the equipment' in accordance wi tb
Federal agency rules and procedures.
and BubmJt an annual inventory list-
mg.
(3)Wben the equipment is no longer
needed. the ~tee or subgranteew1l1
request disposition instructions from
the Federal agency.
(g) Right to transfer uae. The Federal
awarcllng agency may reserve the r:lght
to transfer tJt1e to the Federal Govern-
ment or a third part named by the
awarding agency wbeJ1 such a third
party is otherwise ellgible under exist-
1ngsta.tutes. Such transfers shall be
subject to the following standards:
(1) The property shall be iden'tified in
the grant or otberw1se made known to
the grantee in writing.
(2) Tbe Federal awarding agency
shall issue disposition instruction
within 120 calendar days after the end
of the Federal support of the project
for which it was acquired. If the Fed-
eral awarding agency fans to issue dis-
position instructions within the 120
calendar-day period the grantee shall
follow 12.72(e).
299
~ 12.73
(3) When title to equipment is trans-
ferred, the grantee shall be paid an
amount calculated by applying the per-
centage of participation in the pur-
chase to the CUlT80t fair market value
of the property.
112.73 Supplies.
(a) Title. TItle to supplies acquired
under a gI'a.D.t or Bubgrant will vest,
upon acquisition, in tbe grantee or sub--
grantee respectively.
(b) Disrxmtion. If there 18 a residual
inventory of unused supplies exceeding
$5.000 in total aggregate faJ:r market
value upon tenniDatlOD or completion
of the a.ward. and if the supplies are
not needed for any other Federally
sponsored programs or . projects. the
grantee or subgrantee shall com-
pensate the awardtDg agency for its
share.
112.74 Copyrig;hts.
The Federal awarding ageDcy re-
serves a roYalty-free. nonexclusive, and
irrevocable license to reproduce, pub-
lish orotherw1se use, and to authorize
others to use, for Federal Government
purposes:
(a.) The copyright in any work: devel-
oped under a grant, subgraDt. or con-
tract under a grant or subp'ant; and
(b) Any rlgbts. ofcopyrlll'bt to wblch
a grantee. sUbgr8.ntee or a contractor
purc.bases ownership with grant sup-
port.
H2. 75 Subawarda to debarred and
suspended parties.
Grantees aDd Bubgrantees must not
make any award or permit any award
(subgrant or contract) at any tier to
any party wbich is debarred Or sus~
pended or 1s otberw1se excluded trom or
ineligible for participation in Federal
assistance programs under Executive
Order 12549. "Debarment and Suspen-
SiOD."
~ 12.76 ProcuremeuL
(a) States. When procurtng- property
and serv1ces under a grant, a State w1ll
follow the Bame policies and procedures
it uses for procurements from its nOD-
Federal funds. The State will ensure
that every purchase order or other con-
tract includes any clauses required by
Federal statutes and executive orders
43 CFR SUblille A (HH-lJ2 Edlllon)
and their implementing regulations.
Other. grantees and subgrantees will
follow paragraphs (b) through (I) In
this section.
(b) fTocurement standGTds. (1) Grant-
ees and subgrantees will use their own
procurement procedures which reflect
applicable State and local laws and
regulations, prov1ded that the procure-
ments conform to applicable Federal
law and the standards identified in this
section.
(2) Grantees &lid subgrantees win
maintain a contract a.dm1nistrat1on
system which' ensures that contractors
perform in accord&i:Jce, with tbe terms,
conditions, and specifications of their
contracts or purchase orders.
(3) Grantees and subgrantees will
malntain a written. code of standards of
conduct governing the performance of
their employees engaged in the award
and adm1D1strat1on of contracts. No
employee. officer or agent of the grant~
ee or subgrantee shall partJ:cipate in se-
lection. or in the award or administra-
tion of & contract supported by Federal
funds if a con11fct of interest.. real or
apparent. would be Involyed. Such a.
'conlUct would arise when:
(1) The employee, officer or agent,.
(Ii) Any member of hIs immediate
family.
(ill) His or ber partner, or
(iv) An orgaIi1zatloD which employs.
or 18 about to employ. any of the
a.bove. bas a. 11DaDclal or other interest
in the :ftrm selected for award. The
grantee's or subgrantee's omeera, em-tplo.yees or &genu wID neither solicit
nor accept gratuities. favors or any-
thing 01 monetary value from contrac-
tors, potential contractors, or parties
to subagreements. Grantee and sub-
grantees may set m1n1mum rules wbere
the ftnanc1alinteres1; is not BUbstantial
or the gift is an unsoliC1ted ttemof
nom1nal intr1D81c value. To the extent
permitted by State or local law or reg--
ulations, such standards or conduct
will provide for penalties. sanctions, or
other discipHnary actions f-or viola-
tions of such standards by the grant-
ee's and subgrantee's officers, employ-
ees, or agents, or by contractors or
their agents. Tbe awarding agency may
in regulation provide additional prohi-
bitions relative to real, apparent. or
potential conflicts of interest.
300
OffIce of Ihe Secretary, Interior
(4) Grantee and 8ubgrlUltee proce-
dures will provide for a review of pro-
posed procurements to avoid purchase
of unnecessarY or' duplicative :Items.
ConSideration should be given to con-
solidating or breakJng out procure-
ments to obtain a more economical
purchase. Where appropriate, an anal-
ysis will be made of lease. versus. pur-
chase alternat1ves. and any other a.p-
propriate analysis to determine the
most economical approach.
(5) To foster greater economy and ef-
ficiency, grantees and Bubgra.ntees are
encouraged to enter into State and
local intergovernmental agreements
for procurement or use of common
goods and serv1ces.
(6) Grantees and subgrantees are en-
couraged to use Federal excess and sur-
plus property in llauo! purchasing new
equIpment a.n4 property whenever such
use Is feas1ble and reduces project
costs.
(7) Grantees and Bubgrantees are en-
couraged to use value Qngineerlng
clauses in contracts for construction
projects of suiftcient size to ofTer rea-
sonable oPPOrtunJt1es for cost reduc-
tions. Value engineeI1ng is. a system.
ado and creat4ve a.naY.l81s of each con-
tract item.or task to. ensure that its es-
sential function is provided at the
overall lower" cost.
(8) Grantee. and .ubgrantee. will
make awards only to responsible COD.
tractors possessmg the abiUty to per..
form st1cceB8fully under the 'terms and
conditions of a proposei1 procurement.
Consideration will be given to such
matters as contractor integrity. corn-
pUance with publJe poUcy. record of
pas"t Performance. and financial and
technicaJ resources.
(9) Grantees and 8ubgrantees will
mainta,1n records sufficient to detail
the sJRificant history of a procure-
meDt. These records" will i1;101ude, but
are not necessarlly Urnited to the fol.
lowing: ratioDale for the method of
procuremeDt. selection of contract
type. contractor selectioD pr rejection.
and the basis for the contract price.
(10) Grantees and sUbgrantees will
use time and material type 'Contra.cts
only-
(i) After a detennlnatlon that no
other contract is suitable, and
512.76
(li)' If tbe contract Includes a caning
price that the contractor exceeds at its
own risk.
(11). Grantees and subgrantees alone
wi]} be responsible. In accordance with
good admildstrative practice and Bound
business judgment. for the settlement
of all cODtractual and administrative
issues arls1ng out of procurements.
These issues include. but are not lim-
ited to source evaluation. protests, dis.-
putes. and claims." These staDdards do
not reUeve the grantee or subgrantee
of any contractual responsibilities
under its contra-eta. Federal agencies
will not. Bubstitute their judgment for
that of the grantee or subgrantee un-
le85 the matter is prlmarlly a Federal
CODcerD. Violations of law will be re-
ferred to the local, State, or Federal
authority having proper jurisdiction. "
(12) Grantees and subgrantees will
have protest procedures to handle 8JJd
resolve disputes relating to their pro-
curements and shall in all instances
disclose information regarding the pro-
test to the awarding agency. A
protestor must exhaust all administra-
tive remedies with the grantee and sub-
grantee before pu:rsuJng a protest with
the Federal agency. Renews of pro-
test.s by the Federal ageI1cy will be lim-
Ited to:
(i) V10la.tions of Federal la.w or regu.
la.tions and the standards of this sec-
tion (violatioDs of State or local law
will be under the jurisdic.tion of State
or local author:1ties) and
(:1.1) Viola.tions of the grantee's or sub-
grantee's protest p~edures for failure
to review. a complaint or protest. Pro-
tests received by. the Federal agency
other than those specified above wUJ be
referred to the grantee or subgrantee.
(e) Competition. (1) All procurement
transactions will be conducted in a
manner providing full and open com-
petitiOD oonsistent with the standards
of 112.76. Some of the situations con-
sidered to be restrictive of competition
include but are not l1mited to:
(1) Placing unreasonable require-
ments on flrms in ord.er for them "to"
qualiJY to do business,
(U) Requ1r1ng unnecessary experience
and excessive bonding,
(1U) Noncompetitive pricing practices
between finns or between affiliated
companies.
301
~ 12.76
(iv) Noncompetitive awards to con-
sultants that are on retajn~r contracts,
(v) Organiza.tional conflicts of inter-
est,
(vi) Specifying only a "brand name"
product instead of allowing "an equal"
product to be offered and describing
the performance of other relevant re-
quirements of the procurement. and
(vii) Any arbitrary action in the pro-
curement process.
(2) Grantees and subgrantees will
conduct procurements in a maDDer
that prohibits the use of sta.tut.or11y or
admlnistratJvely imposed in-State or
local geographical preferences in the
evaluation' of bids or proposals, except
in tb068 cases where applicable Federal
statutes expreBSlymandate or encour-
age geographic prefe1'ence. Nothing to
this section preempts State licensing
laws. When contracting for architec-
tural and engineering (AlE) services,
geographic location may be a selection
criteria provided its application lea.ves
an . appropria.te number of qua.l1fied
finns, given the nature and s1ze of the
project, to compete for the contract.
(3) Grautees will have written selec-
tionprocedures for procurement trans-
actioDS. These procedures will ensure
that a.ll SOUc1tatioDS:
(i) Incorporate a clear and accurate
description or the, teclm1cal reqwre-
menta for the material, product. or
service to be procured. Such descr1p-
tJon shall not, In competitive procure-"
menta, conta.ln ,features which unduly
restrict competition. The description
may include a statement of the quali-
tative nature of the mater1a.l. product
or service to be procured. "and when.
necessary, Shall set forth thoBe min-
imum essentiaJ charact.enstics and
standards to which it musi conform if
it is to satisfy its intended use. De-
tailed product specil1catiol13 should be
avoided if at all possible. When it is
impractiCal or uneconomical to make a
clear and accurate description of' the
tecJm1cal requirements, a "brand name
or equaJ" deSCription may be used as a
means to define the performance or
other salient requirements of, a pro.-
curement. The specific features of the
named brand which must be met by
offerors shall be clearly stated; and
(ii) Identify all requirements which
the offerors must fulfill and all other
43 CFR SUblllle A (10-1-02 EdtIIon)
factoJlS to be used in evaluating bIds or
proposals.
(4) Grantees and snbgrantees w111 en-
sure that all prequalUled. Usts of per_
sons, flnns, or products which are used
in"acquiring goods a.nd services are cur-
rent and include enough qualifIed
sources. to ensure maximum open and
free competition. Also, grantees and
subgrantees will not preclude potential
bidders ft"om qualifying during the so-
licitation period.
(d) Methods. of procurement to be /01-
lowed-(l) Procurement by small purchase
procedures. Small purchase procedures
are those relatively simple and infor-
mal procurement methods for .securlng
services, supplies. or other property
that - do not cost more thaJ;l .the sim-
p11f1ed acquisition threshold nxed at 41
D.S.C. 403(11) (currently set at $100.000).
IT small purcbaa8 procedureS are used,
price or rate quotatioDs shall be ob-
tained from an adequate number of
qu.alif1ed BOurces.
(2) Procurement by sealed bids
(formal advertlslng). BIds are publIcly
soUcJted aDd a firm-ftxed-price con-
tract (lump sum or unit price) Is
awarded to the responsible bidder
whose bId, conform1Dg: with all the ma-
tanal terms and cond1t1oDB of the invi-
tation for' bids: is t.he lowest in price.
The sealed bid method is the preferred.
method for procurIn:toonstruct1on, if
the condltloDB In f12.76(dX2)(1) apply.
(1) In order for sealed bidding. to be
feasJ.ble, the "following conditions
should be present:
(A) A complete. adequate. aud real-
istic speclftca.tion or purcbase descrip-
tion is available;
(B) Two or more responsible bidders
are willing and able to compete effec-
tivelY and for the business; ILDd
(C) The procurement lends itself to a
firm fixed price contract and the selec-
tion of the successful bidder can b&
made principally on the basis of price.
(ji) If sealed bids are used. the fol-
lowing requirements apply;
(A) The invitation for bids will be
publicly advertised and bids shaH he
solicited from an adequate number of
known suppliers, prov1ding them suffi-
cient time prior to the date set for
opening the bids;
302
Offlce ollhe Secretary, Intenor
(B) The invitation for" bids. which
will iDclude any specifIcatioDs and per-
tinent attachments. shall denDS the
items or services in order for the bidder
to properly respond;
(C) All bids w1l1 be publicly opened at.
the time and pla.ce prescribed in the in-
vitation for bids;
(D) A firm fixed-price cop tract award
will be made in writing to the lowest
responsive and responsible biddeJ;'.
Where specified in bidding documents.
factors such as discounts. transpor-
tation cost, and Ute cycle coats shaJl be
considered in determining which bid Is
lowest. Payment dIseounts will only be
used to determine the low bid when
prior experience indicates that such
discounts are usually taken advantage
of; and
(E) Any or all bids may be rejected '1f
there Is a sound documented reason.
(3) Procurement by competi:tive pro-
posals. The technique of competlt1v~
proposals is nonnal)y conducted with
more than one source submitting an
offer, and either a fixed-price or cost--
reimbw-sement type. contract is a ward'-
ed. It .is generally used when conditions
are not appropriate for the use of
sealed bids. I:C this method is ,used, the
following requirements apply;
(1) Requests for proposals will be pub-
I1cized and identity all evaluation fac-
tors and their relative 1mportaDce. Any
response to publicized requests for pr0-
posals shall be bonored to the max-
imum ex-tent practical;
(II) Proposa.!s wUl be solicited !rom
an adequate number. of qual111ed
sources;
(111) Grantees and subgrantees will
have a method for conducting tech-
meal evaluations of the proposals re-
ceived and for selecting awardees;.
(1v) Awards will be made to the re-
sponsible f1nn whose proposal is most
advantageous to' the . proen.m, with
price and other factors considered; and
(v) Grantees and 8ubgrantees may
use competJtjve proposal procedures
for qualifications-based procurement of
architectura.1lengineering (AlE) _profes-:-
sional services whereby competitors'
qualifications are evaluated and the
most qualified competitor is selected,
subject to negotiation of fair and rea-
sonable compensation. The method,
where price is not used as a selectjon
!i12.76
factor, can only be used in procure-
ment of AlE professional services. It
cannot be used. to purcbase other types
of services though AlE ftrms are a po-
tential source to perform the proposed
effort.
(4) Procurement by noncompetitive
proposals is procurement through solfc-
!ta.tion of a proposal from only ODe
source. or after solicitation of a num-
ber of . souroes, competitIon is deter-
mined inadequate.
(1) Procurement by noncompetitive
proposals may be used only when the
award of a contract is infeasible under
small purchase procedures, sealed bids
or competit1ve proposals ADd one of the
following circumstances appl1es:
(A) Tbe Item Is available only froin a
single source;
(B) The public exigency or emergen-cy
for the req,ulrement will Dot permit a
delay resulting from competitive solte.-
itatl,on;
(C). The awardIng agency authorizes
noncompetitive proposals; 'or
(D) After solicitation of a. Dumber of.
sources, competition is determined in-
adequate.
(:11) Cost analysis, i.e., ver1f.v1ng the
proposed cost data. the project.1oQS of
the data. and the evaluation of the spe-
cific elements of costsa.nd profits, is
reQ.uired. .
(111) Grantees and subgrantees may
be required to subn>1t the proposed pr0-
curement to the a.warding agency for
pre-award review in accordance with
paragraph (g) of this section.
(e) Contracting with. small and minority
firms. women's, burine.ss enterpri.se and
labor surplus aTea fiT711!l. (1) The gra.ntee
and subgrantee will take all Decessary
afflnnatlve steps. to assure that minor-
ity firms, women's business enter-
prises, aDd labor surplus area firms are
used when possible.
(2) Affirmative steps shall include:
(j) Placing quali11ed small and minor-
ity businesses and women's business
enterprises on solicitation lists;
(11) Assuring that small and minority
businesses, and women's business en-
terprises are solicited whenever they
are potentjal sources;
303
S 12.76
(Hi) Dividing total requirements.
when economically feasible, into small-
er tasks or Quantities to permit max-
imum participation by sinall and mj-
Donty business" and women's busIness
enterprises;
(Iv) EstabllshlDg delivery schedules.
where the requirement permits, which
encourage partJc1pa.t1on by small and
minority business, and women's bust;..
ness ente1'J;lJ1ses;
(v) Using the services and assistance
of the Small Business Adm1n:lstra.t1oD.
and the Minority Business Develop-
ment Agency of the Departm,ent of
Commerce; and .
(vi) Requ1rJng the prime contractor.
if subcontracts are to be let, to take
the affirma,tlve steps listed in para-
graphs (e)(2) (I) through (v) of this sec-
tion.
(f) Contract cost and price. (1) Grant-
ees and Bubgrantees muat perfonn a
cost or price analysis in connect.lon
with every procurement action includ-
ing contract modJftcatioDS. The meth-
od and degree of analyB1s Is dependent
on the facts surrounding the particular
procurement situation, but as a. start-
ing point. grantees must make inde-
pendent estimates berore receiving bids
or propoaa.]s. A cost analysis must be
perfonned when the offeror is requtred
to submit the elements of his esti-
mated cost,. e.I'., under profesBJonal.
consult!D.g, and architectural eng1D.eer-
ing servioes contracts. A cost analysis
will be necesaary when adequate prioe
competition is lacldng, and for sole
source procurements. Including COD-
tract mod1OcatfoDs or change Orders,
unless price resonab1ene8S can be es-
tablished on the basis of .a catalog or
market price of a commerc1al product
sold In substantial quantities to the
general publ1c or based on pr1ceBset by
law or regulation. A pric~ ana.lysis will
be used in all other mstances to deter-
mine the reasonableness of the pr0-
posed contract price.
(2) GI1Ultees and subgrantees will ne-
gotiate profit as a separate element of
the price for each contract in which
there is no price competition and in all
cases where cost analysis is performed.
To establish a faJr and reasonable prof-
it, consideration will be given to the
complexity of the work to be per-
formed. the risk borne by the COD-
43 CFR Sublitfe A (I (}.. 1-02 Edlllon)
tractor, the contractor's investment.
the. mount of subcontracting, the
quality of its record of past pertorm-
a.nce~ and Industry profit rates 10 the
surroundJng geogra.ph1cal area for
similar work.
(3) Costs or prices based on estimated
costs for contracts under grants will be
allowable only to the extent that costs
incurred .or cost estimates included in
negotiated prices are consistent with
Federal cost prlnc.1ples (see S12.62).
Grantees may reference their own cost
principles that comply with the appli-
cable Federal cost principles.
(4) The cost plus a percentage of cost
and percentage of construction cost
methods of contracting shall not be
used: .
(g) Awarding agency. review. (1) Grant-
ees and stibgrantees must make avail-
able. upon request of the awarding
agency. technlca.l specifications on pro-
posed procurements 'Where the .award-
ing agency believes such review. Is
needed to ensure that the item and/or
service specified is the ODe be1ng pro-.
~ for purchase. This review gen-
erally will take pla.ce prior to the time
the specJftcation is 1ocorporated Juto a.
solicitation docliment.However. if the
grantee or subgrantee desires to have
the rev:1ew aCcompl1$ed after a 8OUci-
t8.t1on has be~ developed.. the .awa.rd-
101' apncy may still review the speci-
ficat.tona. wit1l such revtew usually lim-
Ited to the technIcal aspects of the pr0-
posed purchase.
(2) Grantees and subgrantees mut on
request make avaJlable for awarding
agency pre-award. review procurement
documents. such l:'8 .requests for pr0.-
posals or - invitations for bids. inde-
pendent cost estimates, etc. when:
(1) A grantee's or subgra.ntee's pro-
curement procedures or operation faUs
to complyw:lth the procurement stand-
ards In this section; or
(11) Tbe procurement is expected to
exceed the Simplified acquisition
threshold and is to be awarded without
competition or only one bid or offer is
received in response to a sol1citatfon;
or
<Ui) The procurement. which is ex-
pected to exceed the Simplified acquisi-
tion threshold, specifies a "brand
name" product; or
304
Office of the Secretary, Interior
(tv) The proposed award Is more tba.n
the simplified a.cquisition threshold
and is to be awarded to other than the
apparent low bidder under a sealed bid
procurement; or
(v) A proposed contract modiftcatlon
changes the scope of a. contract or in-
creases the contra.ct amount by more
than the simplified acquisition thres.b-
old.
(S) A grantee or subgra.ntee will be
exempt trom the pre-award revi,ew In
pare.grapb (g)(2) of thIs ssctlon If tbe
awarding agency determines that its
procurement systems complY with the
standards of this section.
(1) A grantee or subgi-antee may re-
quest that its procurement ,system be
reviewed by the awarding agency to de-
terrmne whether itsaystem meets
these standards In order for its system
to be certi:l1ed. Generally. these re-
views shall occur where there Is a con-
tinuous high-dollar fUnding, and tbird-
party contracts are awarded on a reg-
ular basis.
(11) A grantee or subgrantee may self-
certifY its procnrement system. Such
self-oertif1catflon shall not limit the
awarding agency's right to survey the
systetl). Under a. self-certif:lcatJ.on pro:-
cedure, a.warding agencies may' wish to
rely on, written aBSurances from the
grantee or 8ubgrantee that It is com-
plying with thess standards. A grantee
or subgrantee will cite spec1:flc proce~
dures, regulations, B'tandards, etc., as
being In compliance with these require-
ments and have its system available
for review.
(h) Bonding requirements. For con-
struction or fa.cllity Improvemen;t con....
trac~ or subcontracts exceeding the
simplified acquisition threshold, the
awarding agency may accept the bond-
ing policy and requirements of the
grantee or subgrantee provided the
awarding a.gency has made a deter-
mination that the awarding agency's
interest 1s adequately protected. If
such a determinat.ion has not been
made, the minimum requirements shall
be as follows:
(1) A bid guarantee from each bidder
equivalent to five percent of the bid price.
The "bid guarantee" sball consist of a
firm commitment such as a bid bond.
certifjed cbeck. or other negotiable in-
strument accompanying a bid as assur-
512.76
anoe .that. the bidder win, upon ac'cept-
ancs of his bid, execute such contrac-
tual documents as may be required
within the time: specified.
(2) A performance bond on the part of
the contractor fOT 1()() percent of the con-
tract price. A "performance bond" is
ODe executed in connectJon with a con-
tract to secure ful11l1ment of all the
contractor's obligations under such
contract.
(3) A payment bond on the part of the
contractor for 100 percent of the contract
price. A "payment bond" 1s one exe-
cuted in connection with a contract to
assure payritent as required by law of
all persons supplying Jabor and mate-
rial 1n the execution of the work pr0-
vided for in the contract.
(1) Contract provisions. A grantee's
and subgrantes's contracts must con-
tain provisions in paragraph (1) of this
section. Federal agencies are permitted
to require changes, remedies, changed
conditions, access and records reten-
tion, suspension or work. and other
clauses approved by the Ofnce of Fed-
eral Procurement Policy.
(1) Administrative, contraCtnal, or
legal remedies in instances where con-
t.ractors v10late or breach contract
terms, and proVide for such Ba,nctions
and penalties as may be. appropriate.
(Contracts more than the stmpl111ed ac-
quisItion threshold)
(2) Termination for cause and for
convenience by the grantee or sub-.
grantee including the ma.nner by which
it will be effected and the ba818 for set-
tlement. (All contracts in excess of
$10,000)
(3) COmpliance with Executive Order
112<16 of September 24, 1965, entitled
'<Equal Employment OpportunitY'," as
amended by Executive Order 11375 of
October 13. 1967, and as supplemented
in Department of Labor regulations (41
CFR cba.pter60). (All construction con-
tracts ,awarded in excess of $10.000 by
grantees and their contractorS or sub-
grantees)
(4) Compliance with the Copeland
"Anti-Kickback" Act (18 U.S.C. 874). as
supplement.ad in Department of Labor
regulations (29 CFR Part 3)~ (All con-
tracts and subg-rants for construction
or repaJr)
305
~12.77
(5) Compliance with the DaviS-Bacon
Act (40 U.S.C. 276& to 27(7) as supple-
mented by Department of Labor regu-
lations (29 CFR Part 5). (Construction
contra.cts in excess of S2000 awarded by
grantees and 811bgrantees when re-
quired by Federal grant program legis-
lation)
(6) Compliance with Sections 103 and
107 of the Contract Work Hours and
Safety Standards Act (40 U.S.C. 327--330)
as supplemented by Depa.rtm6Dt of.
Labor regulations (29 CFR Part 5).
(Construction contracts awarded by
grantees and subgrantees in . excess of
S2OOO, and in excess of $2500 for, other
contracts which involve the employ-
ment of mechanics or la.bore.rs)
(7) Not1ce of awarding a,gencyr47
qwrements and regulat1oD$ pertain.1ng
to reporting.
(8) Notice of awarding agency re-
quirements and regulations pertaining
to patent rights with respect to any
discovery or invention which a.r1ses or
is developed In the course of or under
such 'contract.
(9) Awarding agency requirements
and regulations perta.1n1ng to copy-
rights and rights In data.
(10) Access by the- grantee. the sub-
grantee. the Federal 'graDtor agency.
the Comptroller Gtmeral of the UDlted
S~ates, OS" any or the1r duly authorized
representatJves to any books. docu-
ments. papers. and recorda of the con-
tractor which are dlrectl:v pertIJlent to
that speclflc conti-act for the purpose
of making audit. examination, ex-
cerpts, and transcr1pt1ons.
(11) Retention of all required records
for three years after grantees or ~ub-
grantees make 1'1I1al payments and all
other pe.ndiDg matters are closed.
(12) CompUance with all applicable
standards. orders. or requirements
issued under section 306 of the Clean
Air Act (42 U.S.C. 1857(h)), section 508
or the Clean Water Act (33 U.S.C. 1368),
Executive Order 11738. and Environ-
mental Protection Agency regulations
(40 CFR part 15). (Contracts. sub-
contracts. and subgrants of amounts in
excess of $100,000)
(13) Mandatory standards and policies_
relating to energy efficiency which are
contained in the State energy con-
servation plan issued in compliance
43 CFR Sublllle A (llH-02 Edilion)
with the Energy Policy and Conserva-
tion Act (Pub. L. 94-163. 89 Stat. 871).
[53 FR 8077 and 8087. Mar. 11, 1988. as amend-
ed at 60 FR 19639, 196tf, Apr. 19, 1995)
H2. 77 Suhgrants.
(a) State3. States shall follow State
law and procedures- when awarding and
administering subgrants (whether on a
cost reimbursement or fixed amount
basis) of finllDclal a.ssistanceto local
and Indian tribal governments. States
shall:
(1) Ensure that every aUbgra.nt in-
cludes any clauses required by Federal
statute and executive orders and their
implementIng regulations;
(2) Ensure. that sub8'ranteea are
a.ware of requirements imposed upon
them by F8deral statute and regula-
tion'
(3)' Ensure, that a provision for com-
pliance with 112.82 is placed in every
cost reimbursement sUbgrant; and
(4) Conform any advances of grant
fuDds to subgrantees substantially to
the same standards of timing and
amount that apply to cash advances by
Federal agencJes.
(b) All other" grantees. All other grant--
ees shall follow the proVJsjODB of this
part which are applicable to awarding
agencies when awardlng and admin-
istering subcrants (whether on a cost
re1mbu.raeriJent or ftxedamount basis)
of 11nancJal assistance to local and In-
dian tribal governments. Grantees
shall:
(1) Ensure. that every subgrant in-
cludes a provision for compliance with
this part;
(2)_ Ensure that every subgrant in~
eludes any clauses required by Federal
statute and execut1ve orders and their
implementing -regulatlOIlS; and
(3) Ensure that subp'antees are
a.ware of requirements imposed upon
them by Federal statutes and, regula-
tions.
(c) Exceptions. By their own tenns,
certain provisjons of this part do not
apply to the award and administration
of subgrants: -
(1) Section ]2.50;
(2) Section ]2.5];
(3) The letter-of-credit procedures
specified in Treasury Regulations at 31
CFR part 205, cited in ~12.61; and
(4) Section 12.90.
306
OIfice of the Secretary. Interior
REPORTS, RECORDS RETENTION, AND
ENFORCEMBNT
112.80 Monitorlnc and reporting pro-
p-am performance..
(a) Monitoring by grantee,. Gra.D:t~ees
are responsible Cor managing the day-
to-day operations of grant and
subgrant supported activities. Grantees
must monitor grant and subgra.nt sup-
ported activities to assure compliance
with a.ppllcable Federal requirements
and that petlonnance, goals are being
a.chieved. Grantee monitoring must
cover each program, function or activ-
ity.
(b) NonconstruCtion performance re-
ports. The Federal agency may. if it de-
,cides that performance. information
available from subsequent applications
contains sufnclent. information to
meet its programmatlcneeds. require
the grantee to submit a performance
report only upon expiration or termi-
nation of gra.nt support. Unless waived
by the Federal agency this report will
be dUB on the same date as the final Fi-
nancial Status Report;.
(1) Grantees shall submit aDDual per-
formance reports unless the awarding
agency requ1res quarterly or aemHm-
nnal reports. However. performance re-
ports will not be required more li'e-
quently than quarterly. AImual reports
shall be due 90 da.ys after the grant
year. quarterly or semi-annual reports
shall be due 30 days after the reporting
perJod. The ftnal llM"forma.nce report
will be due 90 days after the expiration
or tenn1nat1on of grant support. If &
justUled request Is submitted by a
grantee. the Federal agency may. ex-
tend the due date for any performancp
report. Additionally. requirements for
unnecessary performance reports may
be waived by the Federal agency.
(2) Perfonnance reports will conta.1n.
for each grant. brief informa.tion on the
following:
(i) A compa.r:lson of actual accom-
plishments to the objectives estab--
lished for the period. Where the output
of the project can be quantified, a. com-
putation of the cost per unit of output
may be required if that information
will be useful.
(ii) Tbe reasons for slippage if estab-
lished objectives were not met.
!i12.80
(Ill,) Addltional pertinent information
lncludiDg, when appropriate. analysis
and explanation of cost overruns or
high unit eoets.
(3) Grantees wtll not be rsquired to
submit more than the original and two
copies of perfonnance reports.
(4) Gra.ntees will a-dhere to the stand-
ards in this section in prescribing per--
formanae reporting requirements for
subgranta.Bs.
(c) Construction" performance TepOTts.
For the most part~ on-8ite technicalln-
spect10DS a.nd certified percentage-of-
completion data are relied on heavily
by Federal agencies. to monitor
progress under construction grants and
subgrants'. The Federal agency will re-.
quire additional. formal performance
reports only wben considered nec-
essary. and Dev~ more :frequently than
quarterlY.
(d) Significant developments. Events
may occur between the scheduled pel"-
formance reporting daus which bave
slgn1ftcant. impact upon the grant or
subgrant supported act!v1ty. In BUclt
cases. the grantee must inform the
Federal agency as SOOD as the following
types of conditions become known:
(1) Problems, delays. or adverse con-
ditions which will ,materially impair
the ability to meet,tbe o~ject1ve of the
a.ward. This disclosure must :Include a
statement of the action taken, or COD-
templated. and any assistance needed
to resolve the situation.
(2) Favorable developments which en-
"bls mee~ time schedules and oblsc-
tivee BOoner or at less c08tthan a.nt1ci-
pated or produc,ing 'more beneftc1al re-
sults than originally planned.
(8) Federal agenc1es may make Bite
visits ~ w&r1"8Dted by program Deeds.
(I) Waivers. extensions. (1) Federal
agencies may waive any perfonnance
report requ1red by this part if not need-
ed.
(2) The grantee may wajve any per-
formance report from a aubgrantee
when DOt. needed. The grantee may ex~
tend the due date for any performance
report from a 8ubgrantee if the grantee
will still be able to meet Its perform-
ance reporting obligations to the Fed-
eral agency.
307
!i 12.81
~ 12.81 Financial reporting.
(a) General. (1) Except as provided in
paragraphs (a) (2) and (5) of this sec-
tion, grantees will use onlY the forms
specified in paragraphs (a) through (e)
of this section. and such supple-
mentary or other forms as may from
time to tJme be authorized by OMB.
for:
(1) Submittingfinancia.l reports to
Federal agencies. or
(11) Requesting advances or reim-
bursements when letters of credit are
Dot used.
(2) Grantees need not apply the forms
prescr1bed In this section in dealing
with their Bubgra,ntees. However.
grantees shall not impose more burden-
some requirements- on Bubgrantees.
(3). Grantees shall follow all applica-
ble standard and supplemental Federal
agency instructions approved by OMB
to the extend required under the Pa.per-
work Reduction Act of 1980 for use in
connection with forms specified. in
paragraphs (b) through (e) of this sec-
tion. Federal agencies may issue sub-
stantive supplementary instructions
only with the approv:al of OMB. Federal
agencies may shade out or ~S'C'4Uct the
grantee to disree-a.rd any line item that
the Federal &gency Dn~ unnecessary
for its decildonmaldna" purposes.
(4) Grantees will not be required to
submJt more than the original and two
copies of fonns l-equ1red under this
part.
(5) Federal agencies may provide
computer otitputs to grantees to e:zpe-
dite or contribute to the accuracy of
reporting.. Federal ....enc1es may accept
the required :lnfonnat1on t.rom grantees
in mach-iDe usable format or cOMpUter
prlntoutsinstead of prescribed forms.
(6) Federal agencies may waive any
report reqUired by th:Is section if not
needed.
(7) Federal agencies may extend the
due date of any. Dnanclal report upon
rece1ving a justilled req.uest from a
grantee.
(b) Financial Status Report-U). Fonn.
Grantees willus8 Standard Form 269 or
269A. Financial Statps Report, to re-
port the status of funds for all nOD-
construction grants and for construc-
tion grants when required in accord-
ance with U2.8l(e)(2)(jij).
43 CFR SubllIIe A 00-1-02 EdJllon)
(2) 4ccounting basis. Each grantee wjll
report program outlays and program
income on ,& cash or accrual basis as
prescrjl>ed by the awarding ageIicy. If
the Federal a.gency. requires accrual in-
formation and the grantee's accounting
records are not DormaJlykept on the
&ccural basis. the grantee sha]] not be
required to convert its accounting sys-
tem bQt shall develop such accrual in-
formation through an~ analysis of the
documentation 00 hand.
(3) Frequency. The Federal agency
may prescribe the frequency of the re-
portior each project or program. How-
ever, the report will not be reqUired
more frequently than quarterly. If the
Federal agenCy does not specify the
frequency of the report, it will be s~b-
mitted annuallY. A final report will be
requJred upon expiration or termi-
nation of grant support.
(4) Due date:. When reports are re-
qu1red on a quarterly or semiannual
basis, they will be due 30 days aftelo the
report1ng period. Whenrequ1red on an
annual bams, they will be due 90 days
after the grant year. Final reports will
be due 90 days alter the expiration or
termination-oC-grant support..
(0) Federal CaSh TYa.nmction$ Report-
(1) Fonn. (1) For grants paid by letter or
cred1t. Treasury check advances or
electronic transfer of tands, the grant-
ee wUl submit the Standard Form 272,
Federal.Caah TraIIaactIons Report, and
when nec8ssa:ry.:lts cont:lnuat1()n sheet,
Standard Form 272&. u.n1eB8 the terrJ,ls
of the.awardexempt the grantee from
this reqnlrement.
(II) Tbese reports will be used by the
Federal agency to monitor cash ad-
vanced to grantees. and to obta1n dis-
bursement or outlay information for.
each. grant from grantees. The format
of the report may be adapted as appro-
priate who. reportiDg Is to be accom-
plished with t;be a88:lstance of auto-
matic data. process1ne- equJpmeot pro-
vided that the Information to be sub-
mitted 18 not changed:ln substance.
(2) Forecasu 01 Federal cash require-
ments. Forecasts of Federal cash -re-
quirements may be reqUired in the
"Remarks" section of the report.
(3) Cash in hands of subgran'tees. When
considered necessary and feasible by
the Federal agency, grantees may be
required to report the amount of cash
308
Office 01 the Secretory, Interior
advances in excess of three days' needs
in the h~ds of their subgranteesor
contractors and to provide short Dar~
ra.t1ve explaD'ations of actJons taken by
the gi-antee to reduce the excess bal-
ances.
(4) Frequen.C1/ and due date. Grantees
must submit the report no la.ter tb:an 15
working days following the end of each
quarter. However, where an advance ei-
ther by letter of credit or electronic
transfer of funds Is authorlzed at an
annualized ra.te of one mill10n dollars
or more, the Federal agency may re-
quire the report to be submitted withlD
15 working days following the end of
eacb month.
(d) Request fOT advance or reimburse-.
ment-(l) Advance P<<.1fl'1Um.u. Requests
for Treasury check advance paymen1is
will be submitted on Standard Fonn
270, Request for Advance or Reimburse--
manto (This form will Dot be used, for
drawdowns under a letter of credit.
electronic funds transfer or when
Treasury cb~k a~vance payments are
made to the gra.ntee automat.1cally on
a predetennined basis.)
(2) Reimbursements. Requests for reim-
bursement under nonconstruction
grants will also be submitted OD Stand-
ard Form 2'10. (For reimblU'8ement re-
quests under construction grants, see
paragraph (e)(l) oHh1s section.)
(3) The &squency for submitting pay-
msnt requests Is treated In 112.81(bX3).
(e) Outlal' report and request IOTreim-
bursement lOT construction ".._ams,-(1)
Grants that support construction activf~
ties paid by reimbursement method. (\)
Requests for reimburSement under con~
structioD grants' will" be submJtted on
Standard Form 271, Outlay Report and
Reqtlest for Reimbursement forCo:r:\""
struct10n Programs. Federal agencies
may, bowever, prescribe tbe Request
for Advance or Reimbursement form.
specIfied In i12.81(d), IDstead of thle
fonn.
(U) The frequency for submitt1ng re-
imbursement requests 1s treated 1n
! J2.BJ(bX3).
(2) Grants that support construction ac-
tivities paid by letler of credit, electronic
funds transfer OT Treasury check ad-
vance. (1) When a construction grant is
paid by letter of credit, electronic
funds transfer or Treasury check ad-
vances, tbe grantee will report its out-
~12.82
la.ys to _ the Federal agency using
Stan'&.ard Form 271. Outlay Report and
Request for Reimbursement for Con':'
struction Programs. The Federal agen-
cy will provide any necessa.ry special
instruction. However, frequency and
due date shall be governed by fi 12.81(b)
(3) and (4).
(11) W'ben a construction "grant is paid
by Treasury check a.dvancea based on
periodiC requests froJp'the grantee, the
adva,nces wi)] be requested on the fonn
specllled In 112.B1(d).
(Un The Federal agency may sub-
stitu:t\3 the Financial Status Report
specified in fl2.81(b) for the Outlay Re-
port. and ~quest for RelJ!lbursement
for CODstruction Programs.
(3) Accounting basis. The accounting
basis for the Outlay Report and Re-
quest for Reimbursement for Construc-
tion Programs shall be governed by
I 12.8J(b)(2).
I: 12.82 ReteDtion aDd access require-
ments lor records.
(a) Applicalrili'ty. (1) This section ap-
plies to all financ1a1 and programmatic
records. supporting documents, statis-
tjcal records, and other records' of
grantees or subgrantees whicb are:
(i) RequIred to be ma.lntaln"d by the
tenns of this part. program regulations
or the' grant 'agreement. or
(11) OtherWise reasonably considered
as pert1Dent to program regulations or
the grant agreement.
(2) This section does Dot apply to
records maintained by contractors or
subcontractors. For a requirement to
place a provision concern1ng recordBin
certain kinds of contracts. see
112.76(1)(10).
(b) Length of retention period. (1) Ex-
cept as otherwise provided, records
must be reta1Ded for three years from
the starting date speCified in paragraph
(c) of this section.
(2) If .any litigation,. claim, negotia-
tion, audit or other action involving
the records has been started before the
expiration of the 3-year period. the
records must be retained until comple~
tiOD of the action and resolution of all
issues which arise from it. or untH the
end of the regular 3.year period. wbich-
ever is later.
(3) To avoid duplicate recordkeeping,
awarding agencies may make special
309
~12.83
arrangements with grantees and sub--
grantees to retain any records which
are contJnuously needed for joint use.
The awarding agency wUl request
transfer of records to its custody when
it determines that the records possess
long-tenn retention value. When the
records are transferred to or main-
tained by the Federal agency. the 3-
year retention requirement 1s not ap"-
plicable to the grantee or 8ubgTantee.
(0) Starting date of retention period-(l)
General. Wbeil grant support lscont:ln-
ued or renewed at &DD.ual or other in-
tervals, the retention period for the
records of each funding period starts on
the day the grantee or Bubgrantee sub-
mlt.s to the awarding agency :Its single
or last expenditure-- report for tha.t pe-
riod. However, :If grant 8upportis con-
tinued or renewed Quarterly. the reten~
tion parted for each year's records
starts on the. day the grantee submits
its expenditure report for the last quar-
ter of the Federal fiscal year. In all
other cases, the retention period starts
on the day the grantee submits its
final expenditure report. It an expendi-
ture report has been waived. thereten-
tion period starts on the day the report
would have been due.
(2) Real property and equipment
record3. The retention period for real
property and equ.1pment records starts
from the date ot the dlapositJon or re-
placement or transfer at the direction
oftbe aWarding agency.
(3) Records lor income transactions
afteT grant or .mbgrant support. In Borne
cases grantees must report income
after the perlod of grant support.
Where there is such a. requirement. the
retention period for the records per-
taining to the earniDg of the incOme
starts from the end of 'the grantee's fis-
cal year in which the. income 1s earned.
(4) Indirect cost rate propo,als. cost al-
locatiom plans, etc. This paragraph ap-
plies to the follOwing types of docu-
ments. and their supporting records:
indirect cost- rate computations or pro-
posals, cost allocation - plans. and any
simjlar accounting computations of
the rate at which a particular group of
costs is chargeable (such as computer
usage cbargeback rates or composite
fringe benefit rates).
(i) If submitted for negotiation. If the
proposal, plan, or other computation is
4J CFR $ubfille A (10-1-02 Edilfan)
requi~ed to be submitted to the Federal
Government (or to tbe grantee) to form
the basis for negotiation of tbe rate,
then the 3-year retention period for its
supporting records starts from the date
of such submission.
(ii) If not submitted for negotiation. If
the propOsal, plan, or other computa-
tion is not requJred to be submitted to
the Federal Government (or to the
. grantee) for negotiation purposes, then
the 3-yea.r retention period for the pro-
posal plan, or computation and 1tssup-
porting records starts :from end ot the
fiscal year (or other accounting .period)
covered by the proposal, plan, or other
computation.
(d) Substitution of microfilm. Copies
made by microfilming, photocopYing,
or similar methods may be su.bstituted
for.the original records.
(e) Access to record$-(l) Records of
grantees. and subgrantees. The awarding
agency and the Comptroller General of
the United States, or any of their au-
thonzed representatives, shall have the
right of access to any pertinent books,
documents, . papers, or other records of
grantees and subgrantees which are
pertinent to the grant. in order to
ma.ke aUdits, exam:lnat1"ons, excerpts,
and tranBCript8.
(2) EzpfTatfon of right of access. The
rights of access in this section must
not be limited to the requJred ""ten-
tiOD period but shall last &8 long as the
records are reta1Ded.
(1) Rest.rlctwn.$ on publ1c access. The
Federal Freedom of lDtormat1oD Act (5
V.S.C. 552) does Dot apply to records
UnlesS reqn:1red by Federal, State, or
local law, grantees BIld subgrantees are
not -required to permit public access to
their records.
112..83 EDforcemeot..
(a) Remedie.s for noncompliance. It a
grantee or subgrantee materially fails
to comply with any term of an award,
whether stated in a Federal statute or
regulation, an assurance, in a State
plan or application, a notice of award,
or elsewhere, the awarding agency may
take one or more of the following ac-
tions, as appropriate in the cir-
cumstances:
(1) Tempora.lily withhold casb pay-
ments pending correction of tlle defi-
ciency by the grantee or subgrantee or
310
Office 01 the Secretary. Interior
more severe enforcement action by the
awax,ding agency.
(2) Disallow (that Is, deny both use of
funds and matching credit for) all or
part of the cost of the activity or ac-
tion not in compliance,
(3) WhollY or' partJ.y suspend or ter-
minate the" current award for the
grantee's or Bubgrantee's program,
(4) Withhold further awards for the
program. or
(5) 'Take other remedies that may be
legally available.
(b) Hearings. appeals. In taking an en-
forcement action. the awarding agency
will provide the grantee or subgrantee
an opportunity for _such bearing,- ap-
peal, or other administrative pro-
ceeding to wbich the grantee or BUb-
grantee is entitled under any statute
or regulation applicable to the action
involved.
(0) Effects of suspension and termi-
nation. Costs of grantee or subgrantee
resulting from obl1gat1oDS incurred by
the grantee or subgrantee during a sus-
pension or after termination of an
award are Dot allowable: unless the
awa.rcUng agency .upressly. authorizes
them, in the notice of suspension or -ter-
mination or 'Subsequently. Other grant-
ee or 8ubgrantee costs - during suspen-
sion or after termination which are
neceBBary and Dot reasonably avoidable
are allowable if:
(1) The costs result from obl1gat.1ons
which were properly incurred by the
grantee or subgrantee before the effec-
tive date of suspension or tenn:IDation,
are not 1>>. anticipation of it, and, in the
case of a tennination. are
noncancellable, and,
(2) The costs would be allowable if
the award were Dot suspended or ex-
pired normally ,at the end of t,be fUDd-
ing period in which the termination
takes effect.
(d) Relationship to Debarment and Sus-
pension. The enforcement remedies
identified in this section, including
suspension and tennination, do bot
preclude grantee or subgrantee from
being subject to "Debannent aDd Sus-
pension" under E.O. 12549 (see 112.75).
~ 12.84 Termination for convenience.
Except as provided in ~ 12;83 awards
may be terminated in whole or in part
only as follows:
~12.90
(a) By tbe awarding agency with the
consAnt of the grantee or subgraptee in
which case. the two parties shall agree
upon the ~nn1nation conditioDS, in-
cluding the effective date and in the
case of partial termination, the portion
to be terminated, or
(b) By the graDtee or 8ubgrantee
upon wrltten notification to the award-:-
lug agency, 'setting forth the reasons
for such termination, the effective
date, and in ,the ca.se of pai"tiaJ termi-
nation. _ the portion to be terminated.
However. if, in the case of a partial ter-
mina.tion. the awarding agency deter-
mines that the_ remaining portion of
the award win not accomplish the pur-
poses for whieb the award. was made,
the awarding agency may terminate
the award in its entirety under' either
!il2:83 or paragraph (8.) of this SectiOD.
AFTER-'I'BE-GRANT REQUIREMENTS
A 12.90 Closeout.
(a) General. The Federal agency win
close out the award when it determines
that all applicable administrative aC-
tions and all required work of the
grant has been .completed.
(b) Reports. Within 90 days after the
expiration or termination of the rrant,
the grantee must submit all 11nancial,
perfonnance. and other reports re-
quired as a condiUon of the grant.
Upon request by the grantee. Federal
agencies may extend, this timeframe.
These may 1.Jiclude but are not 11m1ted
to:
(1) Final performance or progress re-
port.
(2) FlnaIlclal Status Report (SF 269)
or OUtlay Report and Request for Re-
imbursement for Construction Pro-
grams (SF-271) (88 applicable.)
(3) Final request for payment (SF-
270) (If appllcabls).
(4) Invention disclosure (if applica-
ble).
(5) Federally-owned property report: In
accordance with S 12.72(0, a grantee
must subm.1t an inventory of all Feder-
ally owned property (as distinct .from
property a.cquired with grant funds) for
which it is accountable and request dis-
position instructions from the Federal
agency of property DO longer needed.
(c) Cost adjustment. The Federal agen-
cy wi]), within 90 days after receipt of
311
~12.91
reports in paragraph (b) ofthissect1on.
make upward or downward adjust-
ments to th~ allowable costs.
(d) Cash adjustments. (1) The Federal
agency wjll make prompt payment to
the grantee for allowable reimbursable
costs.
(2) The grantee must immed1ately re-
fund to the Federal agency any balance
of unobligated (unencumbered) cash
advanced that is not authorized to be
retained for use on other grants. .
~ 12.91 Leter disallowances and a<<ijust..
mentB.
The closeout of a grant does not af-
fect:
(a) The Federal agency's right to dis-
allow costs and recover funds on the
basis of a later audit or other review;
(b) The grantee's Obligation to return
any funds due as a result of later re-
funds, corrections, or other tra.Jis-
actions;
(c) Records retention as required in
112.82;
(d) Property management require-
ments in fiU2.71 and 12.72; and
(e) Audit requirements in U2.66.
i 1.2.92 -COn~OD of amounts due~
(a) Any funds pajd to a gr8JJtee in eJt-
cese of the anlQUDt to which the grant-
ee Is finally determined to be entitled
under the terms of the a.ward. con-
stitute a debt to the Federal .Govern-
ment. If not paid withIn a reasonable
periOd alter demand, the Federal agen-
cy may reduce the debt by:
(1) Making an adminstrative offset
against other requests for - reimburse-
ments. t
(2) Withholding advuce payments
otherwjse due to the grantee. or
(3) Other action perm1:tted by law.
(b) Except where otherwise provided
by statutes or regulations, the Federal
agency will charge interest on an over-
due debt in accordance with the Fed-
eral Claims Collection Standards (4
CFR Ch. n). The date from which.inter-
est is computed is not extended by liti-
gation or the filing of any form of ap-
peaL
43 CFR SubIitIe A 00-1-02 Edilfan)
ENTITLEMENTS [RESERVED)
Subpart D-Govemmenlwlde De-
barment and SUspension
(NonprOCllrement) and Gov-
emmenlwld. Requirements
for Drug-Free Workplace
(Grants)
SOURCE: 53 FR 19199. and 192Ot. May 26, 1988,
unless otherwise noted.
GENERAL
! 12.100 Purpose.
(a) Executive Order (E.O.) 12549 pro-
vides tha.t. to the extent permitted. by
law, Executive departments and agen-
cies shall 'participate in a g'overnment-
wide system for nonprocurement debar-
ment and SUSpensiOD. A person who is
debarred or suspended sbal) be excluded
from Federal financial .and non-
financial assistance and benefits under
Federal programs and activ1t.1es. De-
barment or suspension of a partiCipant
in a program by one agency shall have
governmentwide e1feet.
(b) These regulations implement .sec-
tion 3 of E.O. 12549 and the guidelines
promulgated by the Omce of Manage-
ment and Budget under section 6 of the
E.O. by:
(1) P~b1Dg the programs and ac-
tivities tha.t are covered. by the govern-
mentwide system;
(2) Prescr1l:dng. the governmentwide
criteria and governmentwlde m1n1mum
due process procedures tha.t each agen-
cy Bba)) use;
(3) Providing for the listing of
debarred and suspended partlcJpants,
participante declared Ineligible (see
definition of "Ineligible" In tl2.1(5),
and participants who have voluntarily
excluded themselves trom participation
in covered transactions;
(4) Setting forth the consequences of
a. debarment. suspension. determina-
tion of inel1g1b:U1ty. or volunt.ary ex-
clusion; and
(5) Offering such other gujdance - as
necessary for the effective 1mp]ement~-
tiOD and administration of the govern-
mentwide system.
312
Office of the Secretary, Interior
(c) These regulations also implement
Executive Order 12689 (3 CFR. 1989
Comp., p. 235) and 31 U.S.C. 6101 Dote
(Publ1c Law 103-355, sec. 2455, 108 Stat.
3327) by-
(1) Providing for the inclusion In the
List of Parties Excluded from Federal Pro-
curement and Nonprocurement Programs
all persons proposed fOT debarment..
debarred or suspended under the Fed-
eral Acquisition Regulation, 48 CFR
Part 9. subpart 9.4; persons against
which governmentwide exclusions have
been entered under this. part; and per-
sons detennined to be inellgible; and
(2)' Setting forth the consequences of
a debarment, suspension, determina-
tJon of inelfgibll1ty. or voluntary ex-
clusion.
(d) Although these regulatioDs cover
the listing qf ineligible participants
and the effect of such Hating, they do
not prescribe policies and procedlires
governing declarations of ineligibility.
(60 FR 330,40. 33061, June 26-, 1995)
~ 12.105 Definitions.
The following, definitions apply to
this part:
Adequate evidence. Informa.tion suffi-
cient to support the reasonable belief
that a particular act or omission bas
occurred.
Affiliate. PerSons are amliates of
each other if. directly or indirectly, eI-
ther ODe controls or has the power to
control the other, 07', a third person
controls or has the power to control
both. Indicia ,of control include. but are
not limited to: interlocking manage-
ment or ownership. identity of inter-
ests aJJlong family members, shared fa-
cilities and equipment, common use of .
employees, or a business entityorga-
nized following the suspension or de-
barment of a person which has the
same or similar management, owner-
ship, or principal employees as the sus-
pended, debarred, ineligible, or volun-
tarily excluded person.
Agency. Any executive department,'
military department or defense agency
or other agency of the executive
branch, excluding the independent reg-
ulatory agencies.
Civil judgment. The disposition .of a
civil action by any court of competent
jurisdiction, whether entered by ver-
dict, decision, settlement, stipulation,
SI2.105
or o1)1erwise creating a. civil liability
for the wrongful acts complained of; or
annal determlnatton of liability under
t.be Program Fraud CivH RemedJes Act
of 1988 (81 U.S.C. 3801-12).
Conviction. A judgment or conviction
of a criminal offense by a.ny court of
competent jurisdiction, whether en-
tered upon a verdict or a plea, includ-
ing a plea of nolo contendere.
Debarment. AD action taken by a de-
barring official in accordance with
these regulations to exclude a person
from participating in covered traDs-
actions. A person so excluded Is
"debarred."
Debarring official. An official au thor-
:lzed to impose debarment. The debar-
ring officla1is either:
(1) The agen'cy head., or
(2) An offlclal. desJgnat.ed -by -the
agency head.
. (3) The debarring officJal for the De-
partment of the Interior is the Direc-
tor, Office of AcqwsitJon and Property
Management.
Exception official. The omcl~ author-
ized to grant exceptions under S 12.215
for the DepartmeDt of - tbe lDt.er:lor Is
the Director, Off1ce of AcqulsJt:lon. and
Property Management.
Findings of fact official. TJa.e official
autl;1orlzed to conduct. and prepare flnd-
:lngs of fact, if required under
S12.314(bX2) or 112.41S<bX2), I. the DI-
rector. Offtce of Bearings and Appeals,
or deugnee.
Indictment. Indictment for a cr1:miI1a1
offense. An informat1on or other fiUng
by competent authority charging a
criminal offense shall _be given the
same effect. as .n indictment.
Ineligible. Excluded from participa-
tion in Federal nonprocurement pro-
grams pursuant to a determination of
ineligibility under statutOry, executive
order, or regulatory authority, other
than Executive Order 12549 and its
agency implementing regulations; for
exemple, excluded pursuant to the
Da.vis-Bacon Act and its implementing
regula.tions, the equal employment op-
portunity acts and executive orders;..or.
the environmental protection acts and
executive orders. A person is ineligible
where tl)e determination of. ineligi-
bility affects such person's eligibility
to participate in more than one -cov-
ered transaction.
313
~ 12.105
Legal proceedings. Any criminal pro-
ceeding or any civil judicial proceeding
to which the Federal Government or a
State or local government or quasi-
governmental authority 1s a. party. The
term includes appeals from such pro-
ceedings.
List of Parties Excluded from Federal
Procurement and Nonprocurement Pro-
grams. A list compJled, ma:lntajned &Do.
distributed by the General Services Ad-
ministration (GSA) containing the
names and other information about
persons wl;1o have been debarred. sus-
pended, or voluntarily excluded under
Executive Orders 12549 and 12689 and
these regulations or 48 CFR part 9, sub-
part 9.4, persons who have been- pro-
posed for debannent under 48 CFR .part
9, sUbpart 9.4, and those persons who
have been detennlned to be ineligible.
Notice. A written communication
served iIi person or sent by certified
matI, return receipt requested, or its
equivalent, to the last known address
of a part.y, its Jdent111ed counsel, its
agent for service of process, or any
partner, officer, director, owner, or
joint venturer of the party, Notice, if
undelivera.ble. shall be cOD'sidered to
have been received by the addressee
five days &.1'ter being properly sent to
the last address known by the agency.
Participant. .Any person who aubmJts
a Proposal for:, enters into, or reason~
ably may be ezpected to enter into a
covered transaction. This term aJso in-
cludes any person: who acts on behalf of
or is authorized to commit a part:lci-
pant in a covered transaction as an
agent or representatJ.v8 of another p&.r.
Ucipant.
Person. Any individual. corporation,
partnership. assoc1atioD, unit of gov-
ernment or legal entity. however orga-
nized, except: foreign governments or
foreign governmeJ1tal entities, public
international organiZations, foreign
government owned (in whole or in part)
or controlled entities. and entities con-
sisting whOlly or pa.rt1ally of foreign
governments or foreign governmental
entities.
Preponderance of the evidence. Proof
by information that. compared with
that opposing it. leads to the conclu-
sion that the fact at issue is more prob-
ably true than Dot.
4J CFR S~ A (I()-Hl2 Edillon)
Pri'1cipal. Officer. director. owner,
partner. key employee. or other person
within a participant with primary
management or supervisory respon-
sibilities; or a person who has a crltical
influence OD or substantive control
over a covered transaction. whether or
Dot employed by the participant. Per-
sons who have a critical influence on or
substantive control over a covered
transaction are:
(1) Principal investigators.
(2) (Reserved]
Proposal. A solicited or unsolicited
bid. application, request, invitation to
consider or similar communication by
or on behalf of a person seek1Dg to p&r_
ticipa~ or to rece1ve a benefit. directly
or indirectly. in or under a covered
transaction.
Respondent. A person agaj,nst whom a
debarment or suspension action has
been initiated.
State. Any of the States of the United
States. the District of Coll1mbia. the
Commonwealth of Puerto Rico. any
territory or possession of the United
States, or any agency of a State. exclu-
sive of institutions of higher educa.tion.
hOSpitals. and units of local govern-
ment. A State instrumentality will be
considered part of the State govern-
ment if it has a wrJtten determination
from a State govermi1ent tbat Such
State considers. that InBtrtunentaJity
to be an agency of the State govern-
ment.
Suspend.ing official. An omcial au-
thorlsed to impose suspension. The SUS-
pending 'omcialls either:
(1) The agency bead. or
(2) Ail off1cial designated by the
ag8J1cyhead.
(3) The suspending oIDcia] for tbe De-
partment of the ID.ter:lor is the Direc-
tor, omce of Acquisition and Property
Manqement.
Suspension. An action taken by a SUS-
pending omcial in accordance with
these regulations that immediately ex-
cludes a person from partiCipating in
covered transactions for a temporary
period, pending completion of an inves-
tigation and such legal, debarment, or
Program Fraud Civil Remedies Act
proceeding:s as may ensue. A person so
excluded ls "suspended."
Voluntary exclusion OT voluntarily ex-
cluded. A status of nonparticipation or
314
Office of the Secretary, Interior
limited participation in covered trans-
actions assumed by a person pursuant
to the terms of a settlement.
[53 FR 19199 and l~. May 26, 1988, as
amended at 60 FR '33(KO. 33061. JUDe 26, 1995]
f 12.110 Coverage.
(a) Tl1ese regulations apply to all per-
sons who bave pa.rt1clpated. are cur~
rantly pa.rtJclpating Or may reasonably
be expected to participate 1n trans-
actions under Federal nonprocurement
programs. For purposes oC these regula-
tions such transactions will be referred
to as "covered transactjODS."
(1) Covered transaction. For purposes
of these regulations. a covered trans-
action is a primary covered transaction
or a lower tier covered transaction.
Covered transactions at any tier Deed
Dot involve the transfer of Federal
funds.
(i) PrimaT1J covered transaction. Except
as Doted in paragraph (8)(2) of this sec"
tiOD, a primary coveredtraDsaction is
any nonprocurement transactioD- be-
tween an agency and a person. regard-
less of type, includfng:grants. coopera-
tive agreements. scholarsh1ps. fellow-
ships, contracts of a.ssJ.stance, loa.ns,
loan guarantees, subsidies, 1n8uranc~,
payments for spec1f:led use. donation
agreements and any other nonprocure-
ment traDsactions' between a li'ederal
agency and a person. Primary covered
transactions also include those trans-
actions specially ,designated by the
U.S. Department of Honelng and Urban
Development in such ageilcy's regula-
tions governing debarment and Buspen-
mOD. .
(:11) Lower tier covered transaction. A
lower tier covered transact:lon :Is:
(A) ADy transaction between a par-
ticipant and a penon other tban a prO-
curement contract for goods or serv-
ices. regardless of type. under a pri-
mary covered transactJon.
(B) Any procurement contract for
goods or services between a participant
and a person. rega~less of type. ex-
pected to equal or exceed the Federal
procurement small purchase threshold
fixed at 10 U.S.C. 2304(g) and 41 U.S.C.
253(g) (currently $25,000) under a pri-
mary covered transaction.
(C) Any procurement contract for
goods or services betw.een a participant
and a person under a covered trans-
!j12.I1D
action, regardless of amount, under
which that person will have a critical
influence. on or substantive control
over that covered transaction. Such
persons are:
ui Prlnclpal investigators.
(2) Providers of Federally-required
audit services.
(2) Erceptions. The following trans-
actions are not covered:
(i) Sta.tutory entitlements or manda-
tory a.wards (but not subtler awards
thereunder which. are not themselves
mandatory), including deposited funds
insured by the Federal Government;
(11) Direct awards to foreign govern-
ments or public international organiza.-
dons, or transactions with foreign gov-
ernments or foreign governmental en-
tities, public in.ternational organiza-
tions, foreign government owned (.1n
whole or in part) or controlled entities.
entities consisting Wholly or partially
of foreign governments: or foreign. gov-
ernmental entitles;
(111) Benefits to an individual as a
persona.] entitlement without regard to
the individual's present responaibllity
(but benel1ts received in an individual's
busineBB capacity are not eXcepted);
(1v) Federal employment;
(v) Transactions pursuant to ,national
or agency-recognized emergencies. or
diSasters;
(vi) Incidental benentB derlved from
ordinary I'overnmental .operatJODs; and
(vi.i) other traDsactJOD8 where the ap-
pl1cat1onof these regulations would be
prohibited by la.... .
(vill) TraneacttOJ18 entered into pur-
suant to Public Law 93-Q8.
(ix) Under natural resoUrces- manage-
ment programs, peTmits. licenses. ex-
changes and other &cquisitiops of real
property, tights-of-way, and ease-
ments.
(x) Transactions concerning mineral
patent claims entered into pursuant to
30 U.S.C. 22 et .eq.
(xi) Wa.ter service contracts and re-
payment contracts entered into pursu-
ant to 43 U.S.O. 485.
(3) Department of the Interior cov-
ered transact:lons. These -Depa.rtmen~of
tbe Interior regulations apply to the
Department's domestic assistance cov-
ered transactions (whether by a Fed-
eral agency, recipient, subrecipient, or
intermediary) inclUding, except as
315
!i 12.115
noted in paragraph (a)(2) of this sec-
tion: grants, cooperative agreements,
scholarships, fellowships, contracts of
assistaDce. loans. loan guara.ntees. sub-
sidies, insurance. payments for speci-
fied use, donation agreements, Federal
acquisition of a leasehold interest or
any other iDterest 1n real property.
concession contracts, dispositions of
Federal real and personal property and
natural resources, subawards. sub-
contracts and transactions at any tier
that are charged as direct or indirect
costs, regardless of type (includiDg
subtler awards under awards whiCh are
statutory entltI~ent or mandatory
awards), and any other nonprocure-
mant transaCtiODs between the Depart-
ment and a person.
(b) Relation.shfp to other section$. This
section describes the types of trans-
a..ctlons to which a debarment or sus--
pension under the regulations will
apply. Subpart B, "Effect of Action,"
112.200. "Debannent or suspension,"
sets forth the consequences of a debar-
ment or suspension. Those con-
sequences would obtain only With re-
spect to part1c1pants and princJpal,$ in
tbe covered transactions and activities
described In 112.110(&). Sections 12.325.
"Scope of debarment." and 12.420.
"Scope of SUSpens10D.... govern t.he ex-
tent to which a spec1f1c participant or
organ.lzatlon&l elements of a partici-
pant would be automatically included
with1D a debannent or suspension ac~
tion. and the conditions UDder which
aff1liates or persons assoc1ated with a
particiPaDt maY also be brought within
the scope of the action.
(c) Relati0113hip to Federal procurement
activities. In accordance with E.O. 12689
and section 2455 of Public Law 103-355.
any debannent. suspension. proposed
debannent or other governmentwide
exclusion initiated under the Federal
Acquisition RegulatiQn (FAR) on or
after AugUst 25. 1995 shall be recog-
nized by and effective for Executive
Branch agencies and partj.cipants as an
exclusion under this regulation. Simi-
larly. any debarment. suspension or
other governmentwide exclusion inltl.-
ated under this regulation on or after
August 25; 1995 sball be recognized by
43 CFR SubflHe A 00- 1-02 Edillon)
and effective for those agencies as a de-
barment or suspension under tbe FAR.
[53 FR 19199 and 19204, May 26, 1988, as
amended at 60 FR 33Otl. 33061, June 26. ]995]
112.115 Pollcy.
(a.) In order to protect the public in-
terest. it 1s the polley of the' Federal
Government to conduct business only
with responsible persons. Debarment
. and suspension are dlscretionar;y ac-
tions that, taken in accordance with.
Executive Order 12549 and these regula...
tions. are appropriate means to imple-
ment this policy,
(b) Debarment and sU'spension are se-
lious actions which sball be used only
in the public interest and for the Fed-
eral Government's ))rorection and Dot
for purposes of punishment. Agencies
may impose debarment or suspension
for the causes and in accordance with
the procedures set fortb in these regu-
lations.
(c) When more than one agency has
an interest in the proposed debarment
or suspension of a. person, 'Consider-
ation shall be given to designating one
agency as the lead &gency for making
the dec1sJon. Agencies are encouraged
to esttp,bl1sh methods and' -procedures
for coordJnat1ng theIr debarment or
suspensIon actions.
EFFECT OF AOTION
f 12.200 Debarmeat or 81I8peD8ion.
(a) Primaf'JI covered. transactions. Ex-
cept to the extent prohibited. by law.
persons who are debarred or suspended
shall be excluded from primary covered
transactions as either partJc1pa.nts or
pI1ncipals throulrhout the Executive
Branch of the Federal Government for
the period of their debarment. suspen-
sion, or the period they are proposed
for debarment under 48 CFR part 9.
subpart 9.4. ACCOrdingly. no agency
shall enter into pr::lmary covered trans-
actions with such excluded persons
during such period. except as permitted
pursuant to i 12.215.
(b) Lower tier covered transactions. Ex-
cept to the extent prohibited by raw.
persons wbo have been proposed for de-
barment UDder is CFR part 9. SUbpart
9.4, debarred or suspended shall be ex-
cluded from participating as either
participants or principals in all lower
316
Office of the Secretary, Interior
tier covered transactions (see
i12.110(a)(1)(1I)) for the perlod of their
exclusion.
(c) Exceptio71s. Debarment or su,spen- -
sion does not affect a. person's eligi-
bility for-
(1) Statutory entitlements or manda-
tory a.wards (but not subtler awards
thereunder wbich are not' themselves
mandatory), including deposited funds
insured by the Federal Government;
(2) Direct awards to foreign govern.
ments or public international organiza-
tioDs. or transactions with fore1tn gov-
ernments or foreign governmental en-
tities, public Intern&t1onal organiza-
tions. foreign government owned (In
whole or in part) or controlled entitJes.
and entities conslst1n'g wholly or par-
tially of foreign, governments or for-
eign governmental entitJes;
(3) Benef1ts to an individual as a per- .
sonal entitlement without regard to
the individual's present responsibility
(but benefits received 1D an individual's
business ca~ity are not excepted);
(4) Federal employment;
(5) Transactions pursuant to national
or agency-recognized emergencies or
disasters;
(6) Incidental benefits derived from
ordinary governmental operations; and
(7) Other ti'ansaetions where the ap-
plication of these regulations would be
prohibIted by law.
(8) Tra.n~ons entered inio Pt:tr8U-
ant to Public Law 93-838, 88 Stat. 2203.
(9) Under na.tural resources manage-
ment programs. permits, l1c8ns88. ex-
changes and other acqWs1t1oDS of real
property, rights-of-way, aild ease-
meDts.
(10) Mineral patent claims entered
into p~rsuant to 30 U.S.C. 33 et"seq.
(11) Water service contracts and re-
payment contracts entered into pursu-
ant to 43 U.S.C. 485.
(60 FR 3304.1, 33061. June 26, 1995)
f 12.208 Ineligible persoD&
Persons who are ineligible, as defined.
in U2.105(i). are excluded in accordance
~ith the applicable sta.tutOTY, Execu-
tIve order, or regUlatory authority,
~ 12.210 Voluntary exclusion.
Persons who accept voluntary exclu-
sions under ~ 12.315 are excluded in ac-
cordance with the terms of their settle-
g 12.225
men\s. The Department of the Interior
shall. and participants may, contact
the origjnaJ ac\1on agency to ascerta.in
the extent of the exclusion.
! 12.215 E:l:ceptioD provision.
The Department of the Interior may
grant an exception permitting a
debarred. suspended. _or voluntarily ex-
cluded person, or a person proposed for
debarment under 48 CFR part 9, sub-
part 9.4, to participate 'in a particular
covered transaction upon a wrltt.en de-
termination by the agency bead or an
authorized designee statmg the rea-
sones) for deviating from the Presi-
dential policy established by Executive
Oider 12549 and f}2.200. However, in ac-
cordance with, the President's stated
intention in the Executive Order, ex-
ceptions shaJ) be- granted only infre-
quently". Exceptions shall be reported
in accordance with S 12.505(a).
[60 FR 3304l, 33061, June 26, ]995J
t 12.220 ,Continuation of covered trans.
actioos...
(a) Notwithstanding the debarment,
suspension, proposed debarment UDder
48 CFR part 9, subpart 9.4, determina-
tion of inelig1bil1ty, or voluntary ex-
clusion of any person by an agency,
agencies and pa.rt1cIpa.nts may con-
tiDue covered transactions, in existence
at the - time the person was debarred.
suspended. _ proposed for debarmeni
under 48 CFR part 9, subpart 9.4, de-
clared 1nel1g1ble, or. voluntarily ex-
cluded. A-~ecis1on as to the type ofter-
miDation a.ct:lon, if any. to be taken
should be made only after thorough re-
view to ensure the propriety of the pro-
" posed a.ctloD. .
(b) Agencies and participants shall
not renew or extend covered tra.ns-
actions (otber .than no-cost time exten-
sions) with any person who Is debarred
suspended, proposed for debarment
under 48 CPR part 9, subpart 9.4, inelJ-
gible or voluntary excluded, except as
~rovided in f 12.215.
[60 FR 3304], 3306], June 26. ]995]
t 12.225 Failure to adhere to restric.
tions. _
(a) Except as permitted under U2.215
or U2.220, a pa.rtJcipant shall not
317
~ 12.300
knowingly do business under a covered
transaction with Q. person wbo 1s--
(l) Deba.rred or suspended;
(2) Proposed for debarment under 48
CPR part 9, subpart 9.4; or
(3) Ineligible for or vO]Ull:taI'11y ex-
cluded f.rom the. covered transactiOD.
(b) Violation of the restrictioli under
paragraph (a.) of this section may re-
sult in disallowance of costs, annul-
ment or termination of award. issuance
of a stop work order. debarment or BUS-
pension, or other remedies as appro-
priate.
(0) A participant ma.y rely upon the
certification of a prospective partici-
pant in a lower tier covered trans-
acUan that it and its principals ar.e not
debarred, 8u~dedj proposed for de-
barment under 48 CFR part 9. Bubpart
9.4. ineligible, or voluntarily excluded
from the covered tra.nsa.ct1on (See Ap.-
pendix B of these regulations), unless it
knows that the cert111catlon is erro-
neous. An agency has the burde.n of
proof that a participant did knowingly
do business with a person that filed an
erroneous certiftcation.
[60 FR 33041, 3308l, June 26, 1995)
DEBARMENT
112.lIOO GenenoI.
Thedeba.rr1ng omclal may deQ&r a
persoD tor any of the causes in 112.305,
nabg procedures aetabllshed In if 12.310
through 12,314. The existence of & cause
for debarment. however. 'does not J;lec-
essarny require that the persoD be
debarred; the Berlouaness of t.b.e per-
SOD '8 acts or OmiB810Ds and any miti-
gating factors shall be considered in
maldngany debannent decision.
~ 12.305 Causee for debarmeu.L
Debarment may be imposed :in ac-
cordance with the provisions of if 12.300
through 12.314 for: .
(a) Conviction of or civil judgment
for:
(1) Commission of fraud or a c.r1m:lnal
offense in connection with obta.1ning,
attempting to obtain, or performing a
public or private agreement or trans-
action;
(2) Violation of Federal or State anti-
trust statutes, including those pro-
scribing price fixing between cornpeti-
43 CFR Subllfle A no- HJ2 Edition)
tors, pJlocatJon of customers between
competitors, and bid rigging;
(3) Commission of embezzlement.
theft, forgery. bribery, falsiflcation or
destruction of records, making false
statements, receiving stolen- property,
making false cllUms, or obstruction of
justice; or
(4) Commission of any other offense
indicating a lack of business integrity
. or business honesty that seriously and
directly affects the present responsi-
bility of a person.
(b) Violation of the terms of a pUblic
agreement or tr8JIS,ll.ction so serious as
to affect the 1ntegrity of an agency
program, such as:
(1) A willful failure to perform in ac-
cordance with the terms of one or more
publ1c agreements or transactions;
(2) A history" of failure to perfonn or
of unsatisfactory performance of one or
more public agreements or trans-
actions; or
(3) A willful violation of a statutory
or regulatory proviSion or requirement
a.ppl:lcable to a publ1c agreement or
transaction.
(c) Any of the following causes:
(1) A Donproc.urement debarment by
any Federal agency taken before Octo-
ber 1, 1988. the effective date of tbese
regulations. or a procurement debar-
meD.t by any Fed~ agency taken pur-
aulUJ~ to 4llCFR subpart 9.4;
(2) XnowIDgly dol;,g _e.. with a
debarred. $U8p8D.ded. tnel1g1ble. or vol.
untarlly excluded person. 1n connection
with a covered traD8action. except as
perml~ted In t 12.216 or t 12.220;
(3) Failure to pay a s1ugle substaDtlal
debt. or a number of outstancllng debts
(including disallowed costs and over-
payments., but not including sums "owed
the Federal Government under the In-
ternal Revenue Code) owed to any Fed-
eral agency or Instrumentality. pro-
vided the debt 1s uncontested by the
debtor or, if contested, provided that
the debtor's legal and administrative
remedies bave been exhauSted;
(4) Violation of a material prOvision
of a voluntary exclusion agreement..Em-
tered into under i 12.315 or of any set-
tlement of a debarment or suspension
action; or
(5) Violation of any requirement of
the drug-free workplace requirements
for grants, relating to providing a
318
Office 01 the Secretory, Interior
drug-free workplace. as set forth in
112.615 of thi. part.
(d) Any other cause of so serious or
. compelling a. nature that it affects the
present responsibility of a person.
[58 FR 19199, 19204. May 26, ]"988, aa amended
a.t 54 FR 4950. 4963, Jan. 31, 1989; 55 FR 21'101,
Ma.y 25, 1990]
t 12.310 Procedure..
The Department of tbe Interior shall
process debarment actJoDs as infor-
ma.lly as. practicable, consistent with
the principles of t\1ndamental faJl'Dess.
using the procedures In 1512.311'
through 12.314.
t 12.311 Investigation and referral.
Information concerning the existenCe
of a cause for debarment from any
source shall be promptly reported, in-
vestigated. and referred. when appro-
priate. to the debarring official for con-
sideration. After consideration, the de-
barring omc1a.l' may issue a notice of
proposed debarment.
t 12..312 Notice of proposed debarmeut.
A debarment proceeding shaJl be ini-
tia.ted by notice to the respondent ad-
vising:
(a.) That debarment is being consid-
ered;
(b) Of the reasons for the proposed
debannent in tennssu1'f1c1ent to pUt
the respondent on DoUce of the con-
duct or tr&nsa.ctjon(s) upon which it 1s
based;
(c) Of the Ca.US8(B) relied upon under
fi 12.305 for proposJDg deba:i-ment;
(d) Of the provisloDB of 512.311
through 112.314, and any other Depart-
ment of the Interior procedures, if ap-
plicable, governing_ debarment dec1-
sionma.k1ng; and
(e) or the potential effect of a debar-
ment.
~ 12.813 Opportunity to contest pro-
posed deoarment.. .
(a) Submission in opposition. Within 30
days after receipt of the notice of pro-
posed debarment, the respondent may
submit, in person, in writing, or
tbrough a representative, information
and argument in opposition to tbe pro-
posed debarment.
(b) Additional proceedings as to dis-
puted material facts. (1) In actjons not
S12.314
based upon a cOD,viction or c1v1l judg-
men., jf the debarring official nnds
that the respondent's submission in op-
position raises a genuine - dispute over
facts material to the proposed debar-
ment. respondent{s) shall be arrorded
an opportunity to appear with a rep-
resentative. submit documentary" evi-
dence. present witnesses. and confront
any witness the agency presents.
(2) A transcribed record of any a.ddi-
tional proceedings shall be made avail-
able at cost to the resp(mdent. upon: re-
quest, unless the respondent and the
agency. by mutual a.greemsnt, waive
the requirement for a transcript.
A JU14 Debarring official~. deci8ion.
(a) No ad~itional proceedings necessary.
In actions .based upon a conviction or
civil judgment, or in which there is no
genuine dispute over material facts.
the debarrlng omcial shall make a de-
cision on the ba81s of all the -informa.
tiOD in 'the administra.tive record. in-
cluding any submission made by the re-
spondent. The decisIon shall be made
within 45 days after receipt of. any in-
formation and argument Bubmitted by
the respondent. unless, the debarring
officia.l extends tbis period for good
cause.
(b) Additional proceedings necessary.
(1) In actions in which additional pro-
ceedings are necessary to determine
dlllputed material facts, written ftnd-
lngB of faCt shall be prjlpared. The ~e-
barrinlr oft1cial shall base the decision
on the. facts as found. together with
any information and argument-. sub-
mitted by the respondent and any
other information in the administra-
tive record.
'(2) The debarrlng official may refer
disputed materlal fa.cts to another offi-
c1al for flndings of fact. The debarrlng
offle1al may reject any such findings.
in whole or in part, only atter specifi-
cally determining them to be arbitrary
and capricious or clearly erroneous.
.(3) The debarring official's decision
shall be made after the conclusion of
the proceedings with respect to dis-
puted facts.
(c)(1) Standard of proof. In any debar-
ment action, the cause for debarment
must be estabHshed by a. preponderance
or the evidence. Wbere the proposed de-
barment 1s based upon a conviction or
319
~12.315
civll judgment, the standard shall be
deemed to have been met.
(2) Burden of proof. The burden of
proof is on the agency proposing debar-
ment.
(d) Notice of debarring offldal', deci-
sion. (1) It the debarring ofno:lal decides
to impose debarmen't. the respondent
-shall be given prompt notice:
(1) RefeIT1ng to the notice of proposed
debannent;
(11) Specifying the reasoDs for debar-
ment;
(U1) Stating the period of debarment,
including effective dateB; and
(Iv) Advising that the - debarment is
effectJve for covered transactions
throughout the executJve branch of the
Federal Government unless an agency
head or an authorized desJgnee makes
the detennination referred to :In
~12.215.
(2) If the debarr1ng official decides
not to impose debarment, the respond-
ent shall be given prompt notice of
that dec:ls1on. A decision not to impose
debannent shall be without prejuclice
to a Bubsequent> 1mpos1t1on of debar-
ment by any other agency.
112.815 Settl_t aud vohmtary ex-
clusion.
(a) When 1D the best interest of the
Government. the Department of the In-
terior ma.y. at any 't1me. settle a debar-
ment or SUBPEm81011 action.
(b) If a participant and' the agency
agree to a voluntary e:zcluB10D of the
participant, such voluntary exclusion
shall be entered on the Nonprocure-
ment List (see subpart E).
fI2.820 Period of debarment.
(a) Debarment ehall be for a Perlod
commensurate With 'the seriousness of
tlJ.e cause(s). H a. suspensIon precedes a
debarment, the auspens10n period shall
be considered in detenn1:01ng the de-
barment period.
(1) Debarment for causes other th8Jl
those related, to a violation of the re-
quirements of the drug-free workpl&C8
requirements for grants of this Bubpart
generally should not exceed three
years. Wbere circumstances warrant, a
longer period of debarment may be im-
posed.
(2) In the case of a. debarment for a
violation of the requirements of the
43 CFR Subtitle A 00- H)2 Edlllan)
drug-free workplace requirements for
grant. of thie subpart (see 12.305(c)(5)),
the period of debarment shall not ex-
ceed five years.
(b) [Reserved]
(53 FR 19199, 19204, May 26, 198B, as amended
a.t 54 P'R 4950, 4963. Jan. 31, 1S89; 65 FR 21701.
May 25, 1990)
~ 12.325 ScOPtil of debarment.
(a) Scope in general. (1) Debarment of
a person under these regulations con-
stitutes debannent of all ita divisions
and other organizational elements
from all covered tra.nsa.ctJODS. unless
the debarment decision is limited by
its terms to one or more specil1cally
identifted indtv1duals. divisions or
other organizational elements or to
specIfic types of transactions.
(2) The debarment action -may in-
clude any a.ff1l1ate of the pa.rt1cjpant
that is spec1fically named. and given
notice of the proposed debarment and
an opportunity to respond (see Sf 12.311
through 12.314).
(b) Imputing conduct. - For purposes of
determ.1DiDg the scope of debarment,
conduct may be imputed a.s follows:
(1) Conduct imputed. to participant. The
fraudulent, crimInal or other seriously
improper conduct of auy oftlcer-, dJree-
tor, s~lder, p.$.I'tner, employee, or
other Individual aeeoclated with a por-
t1c1po;nt may be Imputed to the partici-
pant w~en the conduct OOCUlT8d in COD-
nection with the lndJvtdua)'s perfonn-
ance of duties for or on bebalf of the
partlclpo;nt. or with the partlclll""t's
knowledge, approval. or acquiescence.
The partJc1pant'a acceptance of the
beneJ1ta derived from the conduct shall
be evidence of B'qch knowledge, ap-
proval. or acquiescence.
(2) Conduct imputed to 'individuals asso-
dated with part1cIpant. The fraudulent,
cr1m1Dal. or other serJously improper
conduct of a participant may be im-
puted to any offtcer. director. .sb.a.re-
holder. partner, employee, or other in-
dividual associated with the partici-
pant who participated in, knew of, or
had reason to know of the participant's
conduct. -
(3) Conduct of one participant imputed
to other participants in a joint venture.
The fraudulent, criminal. or other seri-
ously improper conduct of one partici-
pant in a joint venture, grant pursuant
320
Office of fhe Secrelary, Inferior
to a joint application. or similar ar-
rangement ma.y be imputed to other
participants jf the conduct occurred for
or on behalf of the joint venture, grant
pursuant to a joint appl1cat1on~ or
similar arrangement may be imputed
to other p&l'tlclpants if the conduct oc-
curred for or on beba.1f of the joint ven-
ture. grant pursuant. to a joint applica-
tion, or sfmj)ar arrangement or with
the knowledge, approval, or acquies-
cence of these partlcJpants. Acceptance
of the benen ts derived from the con-
duct shah be evidence of such knowl-
edge, approval, or acquiescence.
SUSPENSION
~ 12.400 General.
(a.) The suspending ofOcial may sus-
pend a person for any of the causes In
t 12.405 using procedures 13stablfshed 1n
H12.410 through 12.413. .
(b) Suspension is a serious actioD to
be imPosed only when;
(1) There exists adequate evjdelice of
one or more of the causes set out in
f12.405. and
(2) Immediate action is necessary to
protect the publiC interest.
(0) In assessing the adequacy of the
evidence, the" agency should consider
how much tnfonnation 1s available,
how credible it is given the cJr-
cum stances, whether or not important
allegatioDS are cOlTObora.ted, and wha.t
inferences can reasonably be dra.wn as
a result. This aB8888tnent should. in-
clude an examination of basic docu-
ments such as grants. cooperative
agreements. loan authorizations. aDd
contracts.
"f 12.405 Causes for, suspension.
(a) Suspension may be imposed :In ac-
cordance with the provls:lons of if 12.400
through 12.413 upon adequate evidence:
(1) To suspect the commission of an
offense listed in i 12.305(a); or
(2) That a cause for debarment under
~ 12.305 may exist.
(b) Indictment shall constitute ade-
quate evidence for purposes of suspen-
sion actions.
~ 12.4]0 Procedures.
(8,) Investigation and referral. Informa-
tion concerning the existence of a
cause for suspension from any source
~ 12.412
shall.. be promptly reported, inves-
tigated. and refeITed, when appro-
priate, to the suspending official for
consideration. After cODslderatJ'on, the
suspending official may issue a notice
of suspension. "
(b) Decfsionmaking process. Tbe De-
partment of the Interior shall process'
suspension ac.t1ons as informally &s
practicable, consistent with prl~ciples-
of fundamental fa.1mess. using the pro-
cedures in f 12.411 through ~ 12.413.
~ 12.411 Notice 01 suapension..
When a respondent is suspended. no-
tice shall immediately be given: .
(a.) That suspension has been 1m...
posed;
(b) Tbat the suspension is based on
an indictment, conviction, or other
adequate evidence that the respondent
has committed 1rreguJarlties seriously
reflecting on the propriety of further
Federal Government'dealings with the
respondent;
Co) Describing, any such irregularities
in terms suff1cJent to put the respond-
ent on notice' without disclosing the
Federal Government's evidence;
(.d) or the ca.use(s) relied upon under
112.405 tor im.P081ng suspension;
(e) That the suspeDs10n is for a tem-
porary period pending the completion
of an investiption or ensuiDg legal. de-
barmeqt. or Program Fraud Civil Rem-
edies Act proceedings;
(f) Of the prov1s1ons of 112.411
thi-ough 112.413 and any other Depart..
ment of the lDterior procedure~ if a~
pUcable. gov,erningsuspenslon decJ-
sionmaJdng; and
(g) Of the effect of the suspe.nsjon.
112.412 Opportunity to contest sus-
pension.
Ca) Sulnnissfon in opposition. Within 30
days after receipt of the notice of, SUS-
peDsion, therea:pondent may submit, in
person, :In wrlting, or through a rep-
resentative. jnformat1on and argument
in opposition to the suspensioD.
(b) Additional proceedings as to dis-
puted mcIterial facts. (1) If the SU'S-"
pending official finds that the respond-
ent's submission in opposition raises a
genuine d~s'pute over facts material to
the suspensioD, respondent(s)" shall be
afforded an opportunity to appear with
a representative. submit documentary
321
~12.413
evidence. present witnesses, and con-
front any witness the agency presents,
unless:
(i) The action is based on an Indict-
manto convict1on or civU judgment. or
(11) A deterzn1natlon is made. on the
basis of Department of Justice advice.
tha.t the substantia] Interests of the
. Federal Government in pending or con-
templated legal proceed1Dgs based on
the same facts as the suspension would
be prejudiced.
(2) A tra.nscr1bed- record of any addi-
tional proceedings shall be prepared
and made available at cost 'to the re-
spondent. upon request, unless the re-
spondent and the agency. by mutual
agreement, waive the requirement for a
transcript.
~ 12.413: Suspending oJficial'. decision.
The suspending oIDota! may modUy
or terminate the suspension (for exam-
ple. see U2.32O(c) for reasons for reduc-
ing the period or scope of debarment)
or may leave it in force. However. a de-
cIsion to mod1ty or tenn1na.te the sus-
pension shall be without prejutticeto
the subsequent, impos1tJon of suspen-
sion by any other agency or debarment
by any agency. The decision shall be
rendered, in accordance with the fol-
lowing provJsions:
(a) No cut<lltl"""'pr~_8Q11I.
In actions: Based on - an iJidJctment.
conviction. or civil jUdgment;- in which
there is no genu1ne 'dispute over mate-
rial facts; or in whlch additional pro-
ceecUngs to determine disPuted mate-
ria] facts have been denied on the basis
of Department of Justice advice. 1o11e
suspending omc1a1 Bhall make a deci-
sIon on the' bas1s of all the :lnforma,1iJon
in the -administrative record. inc1ud:lng
any submi88!on made by the respond..
ent. The decision Bball be made within
45 days a1te.r receipt of any infonnation
and argument submitted by the re-
spondent. unless the suspending offtcial
extends this period for good cause.
(b) Additional proceedings necessaTl/'.
(1) In actions in which additional pro-
ceedings are necessary to detennlne
disputed material facts, written ftnd-
ings of fact shall be prepared. The sus-
pending official shall base the dec1sion
on the facts as found, together with
any information and argument sub-
mitted by the respondent and any
43 CFR Sublil1e A (Io-H12 EdWlon)
other.. information in the administra-
tive record.
(2) The suspending official may refer
mattets involving disputed material
facts to anotber official for findings of
fact. The suspending official may re-
ject any sucb nndlngs, in whole or in
part, only after specifically deter-
mln1ng them to be arbitrary or caprt-
. claus or clearly erroneous.
(0) Notice 01 suspending olftcial'$ deci-
sion. Prompt written notice of the sus-
pending- official's decision shall be sent
to the respondent.
~ 12~415 Period of 8U8peDsjon.
(a) Suspension shall be for a' tem-
porary period pending the completion
of an investigatJ,on or ensuiDg legal, de-
barment, or Program Fraud Civll Rem-
edies Act proceedings, unless termi-
nated sooner by the suspending official
or as provided in paragraph (b) of this
section.
(b) U legal or adm1n1strative pro-
cee-d:1ngs are not 1nJtlated within 12
months after the da.te of the suspension
notice. the suspension shall be term1-
nated unless an Assistant Attorney
General or UnJted States Attorney re-
quests its extension in writing. in
which case it may be extended for an
add1t1onal six monUls. In no event may
a suspens10D extend beyond 18 months,
unless such proceed1Dgs have been ini-
tiated witbln that ~od.
(c) The ouspondlng omcJal shall no-
tit)' the Department of Justice of an
impendlng tenn1natloD of a'suspen$1on.
at least 30 ~ays before the l3-month pe-
riod expires, to give that Department
an opportunity to request an exten-
sion.
i 12.420 Scope of 0U5peIl8I0n.
The scope of a suspension is the same
as the scope of a debarment (see
f 12.325), except that the procedures of
fflUIO through 12.413 shall be used in
imposing a suspension.
REsPONSmILITIES OF GSA. DEPARTMENT
OF THE INTERIOR AND PARTICIPANTS
~ 12.500 GSA responsibilities.
(a) In Accordance with the OMB
guidelines, GSA shall compile. main-
tain, and distribute a list of all persons
who bave been debarred, suspended, or
322
-----
--'--."~-~~,-~_..
Office oIlhe Secretary, Inlerlar
voluntarily excluded by agencies under
Executive Order 12549 and these .regula-
tions. and those who have been deter-
mined to be inel1gible.
(b) At a minimum. this list shall in-
dicate:
(1) The names and addresses of all
debarred, suspended, ineligible. and
voluntarUy excluded persons. in alpha-
betical order, with croBB-references
when more tban one Dame Is involved
in a single ac~lon;
(2) The type of action;
(3) The ca.use for the action:
(4) The sCope oft-he action;
(5) Any termina.tion date for each
listing; and
(6) The agency and name and tele-
phone number of the agency point of
contact tor. the action.
f 12.505 Department. of the IDterior reo.
sponsibOities.
(a) The agency shall provide GSA
with current lnfonnatlon concern1ng
debarments, suspens1on. determina-
tions DC ineligibility. and voluntary ex-
clusions it has taken. UJitil February
18, 1989, the agency shall also provide
GSA and OMB with informa.tion con-
cerning . all transa.ctions in whIch the
Department of the Intertor has granted
except!ons under' il.~.215 permItting
part1c1pation by debatTed. suspended,
or voluntarily ucluded persons.
(b) Unless an.alternatIve ach.edule is
a.greed to by GSA. 'the agency shall ad-
vise GSA of the :lnf'ormation set forth
in U2.5OO(b) and of the exceptions
granted under 112.216 within five work-
ing days after taking such actions.
(c) The agency shall dlrect Inquiries
concerning listed persons to the agency
that took the action. .
(d) Agency officlals shall check. tho
NonprOcurement List before entering
covered transactions to determine
whether a participant in a. primary
transaction Is debarred, suspended, in..
eligible, or vo]unt&11ly excluded (Tel.
#).
(e) Agency officials shall check the
Nonprocurement List bef~re approving
principals or lower tier partJcipants
where agency approval of the prlncipal
or lower tier participa.D.t is required
under the terms of tbe transaction, to
determine whether such principals or
~12.510
participants are debarred, suspended,
inel1s1ble. or voluntarily excluded.
112.51 0 Parllciponts' responsibilities.
(a.) Certification by participants in pri-
mary covered tran$actions. Each partiei:"
parit shall submit the certification in
appendix A to this subpart for it and
its princ1p8.ls at the time the partici-
paIlt submits its proposal in conne,ction
with a primary covered transactJon,
except ''that States need only complete
such certification as to their prin-
cipals. pa.rticipants may decide the
method and frequency by which they
determine the eUgibllity of their prin-
cipals. In addition, each part1cipant
may, but is not required to,. check the
Nonprocurement List for its principals
(Tel. #).Adverse information on the
certJ1'1ce.tion will not necessar1ly resul.t
in denial of participation. However. the
certification, and any additional infor-
mation perta.1ning to the certincation
submitted by the, participant, shall be
co:D.s1dered in the administration of
covered transa.etlons. .
(b) Certification by participants in
lower tier covered tTansactions. (l) Each
participant shall re"quJre partidpaiJ.ts
in lower tier covered transactions to
. include the certification in appendix B
to this subpart for it and its principals
:In any proposal submitted in connec-
tiOD wi'th such lower tier covered
tran:a&etions.
(2) A partlclpant may rely upon the
cert1ftce.t1on or a prospective partici-
pant in a ,lower tJer covered "trans.;.
act10D 'that it aJid its principals are not
debaITed. suspended, ineligible. or vol-
untarfly ueluded from the covered
transaction by. any Federal agency, liD-
less it knows that the certification 1s
erroneous. Participants may decide the
method and frequency by which tbey
determine the e1igibl1ty of their prin-
clpals. In addition, a partlclpo.nt may,
but is not required to, check the Non-
procurement List tor Its principalS and
for participants (Tel, #).
(c) Changed circumstances regarding
certifica.tion. A partic1pa.nt shall provide
immediate written notice to the :De:-
partment of tbe Interior if at any time
the particlpa.nt learns that. 1ts certifi-
cation was.. erroneous when submitted
or has become erroneous by reason of
changed circumstances. Participants in
323
S 12.600
lower tier covered transactions shall
provide the same updated notice to the
partj,cipant to which it submitted its
proposals.
DRUG-FREE WORKPLACE REQUIREMENTS
(GRANTS)
SOURCE: 55 FR 21688, 21701, May 25, ]990, un-
less otherwise not.ed.
EDl'I'QRIAL Ncr.rE: Nomenclature changes for
~il2.600 throngh 12.635 appear a.t 55 FR 21702,
May 25, 1990.
112.6C)O Purpoae.
(a) Tbe purpose of the drug-free
workplace req~jrements for grants. Is
to carry out the Drug-Free Workplace
Act of ]988 by requiring that---
(1) A grantee. other than an ig.d.1-
vidu~, shall cert1fYto the agency that
it wlllprovide a drug-tree workplace;
(2) A grantee who is an individual
shall certify to the agency that, as a
condition of the grant, he or she will
Dot engage In the linlawful manufac-
ture, distribution. dispensing. posses-
sion or use of a controlled substance in
conducting any activity with the
grant.
(b) ReQuirements 1mplement1:ug the
Drug-Free Workplace Act of 1988 for
contractors with. the agency are found
at 48 CFR subpaxts 9.4, 23.5, lUld 52.2.
f 12.605 DefiDitl......
(a) Except aBamended in tb.18 sec-
tion. the definitioDs of Il~.lOCi apply to
the drug-free workplace requirements
for grants.
(b) For purposes of the drug-free
workplace requirements for grants-
(1) Controlled &'Ilbltance means a o,on-
trolled subs'taDce in scheduleS I
through V of the CODtrolled Sub8taDces
Act (21 U.S.C. 812), lUld as further de-
fined by regula'tJon at 21> CFR 1308.11
through 1308.15:
(2) Conviction means a fiDdlng of guilt
(inclutUng a plea of nolo contendere) or
imposition of sentence, or both. by any
jUdicial body charged with the respon-
sibility to determine violations of the
Federal or State criminal drug stat-
utes;
(3) Criminal drug statute means a Fed-
eral or non-Federal cMminal statute
involving the manufacture. d1stribu-
43 CFR Sublille A (10-1-02 Ediflon)
tiOD, dispensing. nse. or possession of
any centrolled substance;
(4) Drug-free wOTkplace means a site
for the performance of work done in
cOJlDectJon with a specUlc. gra..nt at
which employees of the grantee are
prohibited :from engaging in the unlaw-
ful manufacture, distrlbutJon. dis-
pensing. possession. or use of a con-
trolled substance;
(5) Employee means the employee of a
grantee directly engaged in the per-
formance of work under the gr8J;1t, in-
cluding:
(1) All diTect charge employees;
(it) All indiTect chaTge employees. un-
less their impact or involvement is in-
s1gnit1cant to the performance of the
grant; -and.
(111) Temporary personnel and con-
sultants who are directly eJJgaged in
the performance of work under the
grant an4 who are on the grantee's
payroll.
This definition does Dot include work-
ers not on the payroll of the grantee
(e.g.. volunteers, even if used to meet a
matching requirement; consultants or
independ-ent contractors not 'on the
payroll; or employees of subreC1pfents
or s~bcontractors in covered work-
places);
(6) Feaer-al agency or agency means
any United States executive depart;-
ment. mil:ltary department. govern-
ment corporation. government con-
trolled corporation, any other estab-
lishment in the executive branch
(including the Executive omce of the
President). or any independent regu_
latory agency;
(7) Grant means an award of 1lnanc:lal
assistance. 1nclu~ng a cooperative
agreement, in the form of money, or
property in. lieu 'of money. by a Federal
agency dJrectly to a I1'8.Dtee. Tbe term
graJJ:t :includes block grant and entitle-
ment grant programs, whether or not
exempted from coverage UDder the
grants management government-wide
common rule on uniform administra-
tive requirements for grants and coop-
era.tive agreements. The term does not
include technical assistance that pro-
vides services instead of money. or
other assistance in the form of loans.
loan guarantees. interest subsidies. in-
surance. OF direct approprlatioDs; or
any veterans' benefits to individuals.
324
OffIce 01 the Secretary, Interior
Le.. any benefit to veterans. their fami-
lies, or survivors by virtue of the serv-
ice of a veteran in the AImed Forces of
the United States;
(8) Grantee means a person who ap-
plies for or receives a grant directly
from a Federal agency (except another
Federal agency);
(9) Individual means a natural person;
(10) State means any of the States of
the United" States. "the District of Co-
lumbia, the Commonwealth of Puerto
Rico, any territory or possession of the
United States, or any agency of a
State, exclusive of institutions of high-
er education, hospitals, and units - of
local government. A State instrumen-
tality will be considered part of the
State government -:If it has 8. written
determmation from a State govern-
ment that such State cODsiders the in-
strumentality to be aD agency of the
State government. .
~ 12.810 Coverap.
(a) The drug-tree workplace require-
ments for grants applies to any grantee
of the agency.
(b) The drug-free workplace require-
ments for gran_ts applies to any grant,
except where application of the drug-
free workplace re<).u1rements for grants
would be inconsisteDt with the inter-
national 6bIJgat1onsof the United
States or the laws or regulations of a.
foreign government. A 4etermination
of such inconsistency may be made
only by the agency bead or -hia1ber des-
ignee.
(c) The provisions ,of subpart D apply
to matters covered by the drUg-tree
workplace requirements for grants. eXi
cept where spec1fically modif1ed by the
drug-f.ree workplace requirements for
grants. In the event of any conflict be-
tween provisions of the drug-free work-
place requirements for grants and
other provisions' of subpart D, the pro-
visions of the drug-free workplace re-
Qwrements for grants are deemed to
control with respect to the implemen-
tation of drug-free workplace require-
ments concerning grants.
[55 FR 21688, 21701, May 25,1990]
~ 12.620
~ 12.615 GroundS for suspension of
"aYmenta, suspension or termi.
nation of p-8Dts, or suspension or
debarment.
A grantee shall be deemed in viola.:
tioD of the requirements of the drug-
free workplace requirements tor grants
if the agency head or his or her official
designee .determines. in wrlting, that-
(a) The grantee baa made a false cer-
tificationunder 112.630;
(b) With respect to a grantee other
than an 1ndiv1dual-
(l) Tbegrantee has violated the cer-
tification by faJling to carry out the
requirements of paragraphs (A)(a}-(g)
and/or (B) of the certification
(Alternate I to appendlx: C) or
(2) Such a numl>er of employees of
the grantee have been convicted of vio-
la.tions of criminal qrug statutes for
violations occuITin'g in the workplace
as 'to indicate that the grantee ha.s
failed to make a good fa1th effort to
provide a drug-free workplace.
(c) With respect to a grantee who is
an ind1v1duaJ-
{l)The grantee has violated the cer-
tification by falling to carry out its re-
qtt1rements (Alternate n to appendix
C); or
(2) The grantee is convicted of a
criminal drug of'fense resulting f.rom a
violatJon occurring during the conduct
of any grant activity.
I JlL6tlI ,Effect of viOIatiOD.
(a) In the event of a violation of the
drug-ft"ee workplace requirements for
graDta as provided In 112.615, and In ac-
cordance with applicable law. the
grantee shall be subject to one or more
of the following actions:
(1) Suspension of payments under the
grant;
(2) Suspension or term:lnatJon of the
grant; and
(3) Suspension or debarment of the
grantee under the provisions of subpart
D.
(b) . Upon issuance of any final deci-
sjon under subpart D requiring debar-.
ment ofa grantee, the debarred grant-
ee shall be ineligible for award of any
grant from any Federal agency for a
period specified in the decision, not to
325
g 12.625
exceed five years (see S 12.32O(a)(2) of
subpart D).
i 12.625 Exception provision.
The agency head may wa.iv8. with re-
spect to a. particular grant. in writing,
a suspension of payments under a
grant, suspension or termination of a
grant. or suspension or debarment of a
grantee if the agency bead determines
tha.t such a waiver would be in th\ll pu'b-
He interest. This exception autbority
cannot be delegated to any other offi-
ciaL
~12.630 Certification requirements
and procedures.
(a)(1) As a prior condition of being
awarded a grant. each grantee shaJl
make the approprlate -certincation to
the Federal agency providing the
grant, as provided in appendix C to sub-
partD.
(2) Grantees are'Dot requIred to make
a certification in order to continue re-
ceiving funds under a grant_ awarded
before March 18. 1989. or under a no-
cost time extensJon of such a gran-to
However, the grantee &ball make a one-
time drug-free workplace certification
for a non-automatic continuation of
such a grant made on or after March
18,1989.
(b) Except as provided in this section.
all grantees sball make ~e requJred
certification for each grant. For man-
datory fonnula grants aDd entitle-
ments that have no application proc-
ess, grantees shall submit a one-time
certification in order. to continue. re-
ceiving awards.
(c) A grantee that is a State may
elect to make one certification in each
Federal fiscal year. States that Pre-
viously submitted an :annua) certifi~
cation are not required to make a cer-
tincation for Fiscal Year 1990 until
June 30. 1990. Except as provided in
paragraph (d) of this section, tbis cer-
tification shall cover all grants to all
State agencies from any Federal agen-
cy. The State shall retain the original
of this statewide certification in its
Governor's office and, prior to grant
award, shall ensure that a copy is sub-
mitted individually with respect to
each grant, unless the Federal agency
has designated a central location for
submission.
43 CFR Subllll" A (l (}- Hl2 Edillonl
(1) The Department of the lDterior is
Dot designating a central location for
the receipt of the statewtde certifi-
cations from States. Therefore, each
State shall ensure that a copy of their
certification is submitted individually
with respect to each grant appl1ca.t1on
sent to tbe BureaU/Office within the
Department.
(2) [Reserved]
(d)(l) The Goveroor of a State may
exclude certain State agencies from
the statewide certJQcation and author~
ize these agencies to submit their own
cert:lf1cat1ons to Federal agencies. The
statewide cert1f1catJon shall name any
State agencies 80 excluded.
(2) A State agency to which the
statewide certification does not apply,
or a State agency in a State tha.t does
not bave a statewide certification. may
elect to make one cert111cation in each
Federal fiscal year. State agencies that
previously submitted a State agency
certification are not required to make
a certification for Fiscal Year 1990
until JUDe 30. 1990. The State agency
shall reta.1n the original of thJs State
'agency-wide certif1cation in its central
office and. prior to grant award, sha))
ensure that a copy is submitted indi-
Vidually with respect to each gra.nt~
unless the Federal agency designates a
central location for subm1s81on.
(1) The De})aitment of the Interior is
not des!guatiDg a central location for
the 'rece1pt of State agency-wide cer-
tifications from State agencies. There-
fore, each Statea.gency shall ensure
that a copy is submitted individually
with respect to each grant applIcat10n
sent . to the Bw-eauJOmce within the
Department.
(3) When the work of a grant is done
by more than one State &gency, the
certificat10D of the State agency di-
rectly rece:lving the grant shall be
deemed to cert:l1Y compl:lance for all
workplaces, :lnclud1ng tbose located :In
other State agencies.
(e)(1) For a grant of less than 30 days
perfonnance duration. grantees shan
bave this policy statement and pro-
gram in place as soon as possible, but
in any case by a date prior to the date
on wbich performa.nce is expected to be
completed~
(2) For a grant of 30 days or more per-
formance duration, grantees shan have
326
';.
OffIce ot the Secretary, Interior
this po]Jcy statement and program in
place within 30 days after award.
(3) Where extraordinary cir-
cumstances warrant for a. specific
grant. the grant officer may determine
a different date on wh1ch the polley
statement and program shall be in
place.
[55 FR 2]688, 2170], Ma.y 25. ]990)
~ 12.635 Reporting. of. aDd employee
sanctiOD. for conviction. . of erimja
DR). drug offenses.
(a) When a grantee other than an in-
dividual is notified that an employee
has been convicted for a viola.tion of a
criminal drug statute occurrfng in the
workplace, it shall take tbe following
actions:
(1) Within 10 calendar. da.ys of receiv-
ing notice of the conviction. the grant-
ee shall provide written notice. includJ..
iog the convicted employee's position
title. to every grant omcer, or other
designee on whose ,grant activity the
convicted employee was working. un~
less a Federal agency has designated a
central paint for the receipt of sucli no-
tifications. Notification shall include
the identification number(s) for each of
the Federal agency's a.t:fected.grants.
(1) The Department of the Interior !s
not designating a. centra.l. location- for
the receipt at these notices :f':rom grant-
ees. Therefore, the grantee aball pro-
vide this written notice- to every gran:t
otncer. or other des1gnee wlth1D a Bu-
rea.u/Office of the Department 011 whose
grant activity the convicted employee
was working.
(2) Within 30 calendar days of :r:ecelv-
ing notice of the conViction, the grant-
ee shall do the follOwing with respect
to. the employee who was convicted.
(1) Take appropt1ate personnel action
against the employee, up to and includ-
ing terminat1on. consistent with re-
quirements of the Rehabllitation Act
of 1973, as amended; or
(11) Require the employee to partici-
pate satisfactorily in a drug abuse as-
sistance or rehabil:ltation program ap-
proved for such purposes by a Federal,
State, or local health, law enforce-
ment. or other appropriate agency.
(b) A grantee who is an individual
who. is convicted for a vio.lation of a
criminal arug statute occurring during
the conduct of any grant actjvity shall
PI. ]2, Subpl. D, App. A
repo:t;t the cODviction. in writing, with-
in 10 calendar days. to his or her Fed-
eral agency grant officer, or other des-
ignee. unless the Federal agency has
designated a central point for the re-
ceipt of such notices. Notification shall
include the identification number(s)
for each of the Federal agency's af-
fected grants.
(1) The Department of the Interior is
not des:l-gnating a central location for
the receipt, of the noti'ce from a grantee
who is an imllvidual. Therefore, the
grantee who is an individual shall pro-
vide this written notice to the grant of-
ficer or other designee within the Bu-
reau/OffIce witbin the Department.
(2) [Reserved)
(Approved by tbe OfOce of Management and
Btldlret. under control number 099]-0002)
[55 FR 21688- and 21702, Ma.y 35, ]990J
ApPENDIX A TO SUBPART D OF PART lZ-
CERTIFICATION REGARDING DEBAR-
MENT, SUSPENSION. AJ<qD OTHER RE-
SPONSIBILITY MA'l'TBRB-PRJ:MARY
COVERED TRANSACTIONS
InstTuctfom for Cerli/fcation
1. By algnfnlr and SUbmitting this proposal.
theproapectlve primary pattfclpant Is pro-
vldbg the certincation set out below.
2. The InabHlty 01 a person to provide the
cert111cat1on required below will not. nee-
essarUy result In denial of participation In
this covered traDaaotfon. The prospectln
pa.rtic1paDt 8ha11 submit an explanation of
why-it cannot proVide th..cert1ftcatlon set
out below. Thecert1flcatlon or explariation
wU) be conaJdered In OODDectlOD with the de-
partm.nt or ....ncy.s determlDatlOD whether
to enter Into this tranaactJon. Bowenr. fa.Jl-
un of the prospective ])J1mary particlpant to
1\1rD18h a OertfOcatioD or an op)anatlOD
shall diSqualifY 8uch person from participa-
tion in this transaction.
3. The certification in this claus. 18 a ma-
terial representa.tion of fact upon which reli-
ance was placed wb.n the de}Jartment or
agency detennined .to enter Into thl8 trans-
actiOD. lIlt 18 later determined that the pro-
spectJve primary participant lmowiDgly ren-
dered an elTOneoU$ certificatiOD, In addition
to other ~medi~B ava.11able to the. Federal
Government, the department or agency may
terminate thl8 tra.neactlon lor cause or de-
fault. - .
4. The prospective primary participant
shall provIde ImmecUate written notice to
the depa.rtment or agency to which this pro-
posal is 8ubmltted If at any tIme the pro-
spective primary participant learns that its
ce:r:t1f1cation was erroneous when' submitted
327
PI. 12, Subpl. 0, App. B
or has become erroneOlls by reason of
changed circumstances.
5. The terms covered transaction, debarred,
suspended, ineligfble. lower tier covered tTans-
acHon, participant. penon. primary covered
tranl11ctfon, principal, propolal. and volun.
tarilll e.rch,ded. as used tn this clause, have
the meanings set out In the Den.nlttona and
Coverage sections of the rules implementing
Executive Order 12549. You may contact the
department or &Cancy lto.which this proposal
is being submitted for a.aslst:.aDce In obtain-
Ing a copy of those regulatJons.
6. The prospective primary participant
agrees by submitting this proposal tha.t,
should the. proposed covered transaction be
entered tnto, it shall not knowingly enter
into any lower tier covered transaction with
a person who is proposed for deba.rment
under 48 en part 9, subpart 9.4, deb&lTed.
suspended, declared Inel1g1ble, or voJuntarfly
excluded from Pa.rtic1pat.ion in Wa covered
t.ransaction, unless authorized by the depart-
ment. or agency ent.ering' into this trans-
action. .
7. The prospect.ive primary partiolpant fur.;.
ther agrees by SUbmitting' this proposal tha.t
It will Includ& the clause titled
"CertHlcaUon Reg-ard:lng Debarment, Sue-
pension, IneUg-ib1Uty aDd Voluntary lbclu-
sion-Lower 'Ner Covered Tran8act1on." pro-
vided by the department or a.gency entmng-
into this covered trlUlsaction, wttbout modi-
fication, In an lower tier covered. trans--
actions and in all solicitatioDs for lower tier
covered transactioD$.
8. A participant in a oovered transaction
may rely upon . certincatlon of a prospeo-
tin partlcipaul in a lower tier covered.
transaction that it ia not piopoaed for debar-
ment DDder 48 eFR part. 9. 8ubpart 9.f.
debarred,. suspended. :iDel1Bible. or volun-
tarily ezoluded from the. covered tra.mJ..
actioD. unl_ it bows tbat, the CertJDoatJOD
is eITOneous. A, partic1pa11t may decide the
method and frequency by whIch it deter-
mines the el1gfblUt)" of ita: prlDCip&l.s. Bach
part.!cipan.t ma)". but ia not required: to.
check the List. of Parties Exc1uded:6-0m ;Fed-
eral Procurement and Nonprocurement Pro--
grams.
9. Nothing contaJned in the foresolIll' lIhalJ
be construed to require est$bl:lahment of a
system of records in order to' reDder 1D (Ood
faith the certlncat10n required by this
clause. The knOWledge and iDformatfoD of a
participant 18 not required to exceed tbat
which Is normally possessed by a prtldent
person fn the Ordinary course of business
dealings.
10. Except for transactions autborlzed
under paragraph 6 of these instructions. If a
participant in a. covered tra.nsactlon know.
fngly enters into a lower tier covered trans.
action with a person who is proposed for de.
bannent under 48 CPR part 9. subpart 9.4,
suspended. debarred. inelfglble, or vol un-
43 CFR Sublffle A (10-1-02 Edillon)
tarDY"excluded from participation In this
transaction, in addition to other remedies
available to the Federal Government. the de-
partment or agency may' terminate this
tr&D8&CtJon for cause or default.
CeTtfjfCGtilm Regarding Debarment, S'USpen.non.
and Other- RQponsibilitv Matter-6-Prlmary
C01JeTed Transaction"
(l) The prospectJve prtmary PartiCipant
. certtnes to the best of Its knowledge and be-
lief, that It and its principals:
(a) Are not presetl,. debarred. suspended,
proposed for de~ent, declared ineHgtble,
or voluntarUy excluded by any Federal de-
partment or agency;
(b) Have not within 8. three-year period
precedIng this propoaal been convicted of or
bad a. civil judgment. rendered agaJnst them
for commll581on of fraud OT. a crtm1nal off&nse
inconnect1'on wlt.b obtaln1Ili". attemptinK to
obtam. or performin". a publio (Federal,
State or local) transaotJon or contract onder
a publiC transaction; violation of Federal OT
State antJtn1st statutes or commIssion of
embezzlement, theft. forgery, bribery. fal-
sification or destruction of records, making
falseatatemsnts, or receiving stolen' prop-
erty;
(0) Are not preaently indicted for or other-
wise or1m1nally or civUly ch&1'lfed by .. gov-
ernmental entity (Federal. State or local)
with commJss1on of an)" of the offenses enu-
merated In paragraph UXb) of tbls oertlfl~
cation; and
(d) Have not within a. three.-ye&r period
preceding this appl1cationlproposa! had one
or more pqbUc traDaactlona (Federal. State
or local) terminated for cauae or d"efil.tllt.
(2) Wbere the' prospective primary parUci-
pant Is unable to oertU) to allY of the state-
menta in this certfnQ&1iion. Baeb prospective
partlc1paD1i sb&ll attach an explanation to
this propoaal.
[60 FR S30!2, 33081. J1U1e 28, 1995)
ApPENDIX B TO SUBPARi'D OF PART 12-
CBRTJPlCATION REGARDING DEBAR-
MENT, SUBPBNBION. INELIGIBILITY
AND VOLUNTARY ExCLUSION-LoWER
TIER COVERED TRANSACTIONS
InstTUction" fOT Certification
1. By signing and submittlDl" this propoaal.
the prospeet1ve lower tier participant is pro-
viding the certification set out below.
2. The certification In this cla.use is a ma.
terial representation of fact Upon which nU-
ance was placed when this tr"a.nsactlon was
entered into. If it Is later determined that
the prospective lower tier partlc1pant know.
ingly rend'ered an erroneous certification, in
addition to other remedies a.vaHable to the
Federal Government the department or
328
OffIce of Ihe Secretary, Interior
agency with which tbis transaction origj-
nated may parsue available remedies. includ-
ing suspension and/or debarment.
3. Tbe prospective lower tier participant
shall provide immediate written Dottce" to
the penon to which tb18 proposal Is sub-
mitted if at any time the prospective lower
tier participant learns that its certification
was erroneous when submitted or bad be-
come erroneous by reason of changed cir-
camstances.
4. The tenus COVeTed transaction, debOTTed.
suspended, ineligible. lo~er tier covered tran.f'-
action, participant. penon, primary coveted
tron.taction. principal, PTopoml, and
VOluntarily ezcluded. aa used in this clause.
have the meantng set out in the DefinttSoDs
and Coverage sectIons of rules implementing
Executive Order ]2549. You may contact the
person to which this proposal Is submitted
fOT assistance in obta1ntng a copy. of those
regulatioDs.
5. The prospective lower tier participant
agrees by submittfnr this proposal thILt,
sbonld the proposed covered transaction be
entered into, it shall not knowlnrly enter
iDLo any lower tier covered transaction with-
a person who Is PTOpoBed for debarment
under 48 CFR part. 9, subpart 9.4; deblUTed,
suspended, declared fnel1g1ble, or voluntarily
excluded from part1cipatlon In t)Us covered
transactJon, unless authorized by the depart.-
ment or agency With which this transaction
or1gtnated.
6. The prospective lower Uer. pa.rtjc1pant
fUrt,her agrees by ,submitting this proposal
that it will include. this clause titled
"Certincatlon Regardln/ir Debarment. Sus-
pension, Inel1gfbUlty aDd Vohmtanr Exclu-
sion-Lower Tier Covered Transaction," wtt.b-
out modtncatioD, In .ll lower t.ier covered
transactions and 1:n all solicitations for
lower tier covered tranaactlons.
7. A Jl&I"t1c1p1LDt In a covered tranBacUon
ma.y rely upon . cert1ftcation of a pr0spec.-
tive participant In a lower tier covered
transact.lon that It Is not proposed for debar-
ment under 48 CFR part 9, subpart 9.4, .
debarred, suspended, lDelfgfble, or volop.-
taJ11y excluded from covered transactions,
unless it knows tlIat the certIfication-Is erro-
neous: A participant may decide the method
and frequency by wblch 11; determines the
el1g-ibHfty of Its prinCipals. Each part1clpant
may, but Is not required to, check t.he List of
Parties Excluded from Federal Procurement
and Nonprocurement Programs.
8. Nothing contained in the foregoing shall
be construed to require establfshment of a
system of records In order to render In good
faith the certlneatloD required by this
clause. The knowledge and informa.tion of a
participant is not required to exceed that
which is nonnally possessed by a. prudent
person in the ordinary course of business
dealings.
PI. 12, Subpt. D, App. C
9. Except for transactions autborized under
parairapb 5 of these instructions,_ If a partic-
ipant In a covered transaction knOWingly en-
ters -Into a lower tler'- covered: transaction
with a person wbo is proposed for debarmbnt
under 48 CFR part 9, subpart 9.4. suspended,
debarred. Ineligible, or vo}untaJ11y excluded
from participation In this transaction, In ad-
dition to other remed1es available to the
Federal Government, the department or
agenc~ witb wblch this tranM.CtiOD 'orfgi.
nated may pursue ..vailable remedies. includ-
tng suspension and/or debarment.
Certification Regarding Debannent, Suspension,
Ineligibilitll an Volu.ntary E.rclu.rion-Lotoet"
Tier Covered Tran.sactfD1U'
(1) The prospective lower tier partJClpant
certifies. by submission of this proposal; that
neither it nor Its principals :Is pn8ently
debarred. suspended. proposed. for debarment,
declared Inelfgible. or voluntarily exoluded
from participation In this transaction by any
Federal- department or agency.
(2) Where the prospective lower tier partic-
Ipant Is unable to cartf!)" to aDY of the state-
ments In this certfncatlon. web prospective
parUoIpant shall ..ttach an explanation to
this proposal.
(60 FR 38042. 3SOS1, June 26, 1995)
APPENDIX 0 TO SUBPART D OF PART 12-
CERTIFICATION REGARDING DRUG-
FREE WORKPLACE REQUIREl'dENTS
Instructfom for Certification
1. By sls:niDl' and/or sUbmitting this appli-
cation or grant aat'eemeot. the grantee Is
provtdlDl' theoertfDoat1on set out beloW".
2.. The certffica.UOD set out below :Is a ma-
ter:lal representation of fact upon. which reli-
ance Is placed wben the agency awards the
grant. H it la later 'determlned that the
grantee knowingly rendered a Ialse Certifi-
cation, or otbei'Wfse violates the require-
ments of the Dru,-Free Workplace Act, the
agency. In addition to any other remedies
ava1lable to tb.e Federal Government, may
take action authorized aDder tbe Drug-Free
Workplace Act.
3. For grantees other UUlJ): IndiVIduals, Al-
ternate I applies.
4. For grantees wbo are individuals, Alter:.
nate n applies.
5. WOJ:kplaces under graDts. for g-rantees
other tban individuals, need not be identified
on the certification. If known, they may be
idenUned in the g-rant application. If the
grantee does. not identify the workplaces at
the time of application, or upon award, If
there j8 no applica.tion, the grantee must
keep the identity of the workplace(s) on file
329
PI. 12, Subpl. 0, App. C
in its office and make the information a.vail-
able for li'ederaJ inspection. Fe.ilure to iden-
tify all known workplaces constitutes a vio-
lation of the grantee's dnll'~ftee workplace
requirements.
6. Workplace IdentlftcaMoDs must include
the actual address ofbnJ1dinp (or parts of
bundfup) or other sites where work under
the grant takes place. Cateconcal descrip-
tIons may be used (e.g.. all vebicles of a mass
transIt authority or State hlghwaydepart-
ment whtJe in operation, State employees in
each local unemployment Qmce. performers
in concert halls or radio studios).
7. If the workplace identllled to the agency
changes dUring the performance of the grant,
the gralitee shall inform the agency of the
change(s). if it preViously identified the
workplaces in question (see paragraph five).
8. DefinitiODs of terms in the Non procure-
ment Suspension and Debarment common
rule and Drug-Free ,Workplace, common rule
apply to this cert1ncattoD. Grantees' a.tten-
MOD fs called. fn pa.rttc'Qlar, to the followfng-
definitions ft'om these rules:
C07ttroUed ntbmnce 'meaDs a controlled
substance in Schedules I tbroul"h V of the
Controlled Substances Act (21 U.S.C. 812) a.nd
as farther denned by regulat10n nu CFR
1308.11 through 1308.15);
Conviction means a findtng of guUt
(inc]udjng a plea of nolo contendere) or tm-
posItion of sentence, or both, by any judicIal
body charged with the respo:nsibJllty to de-
termine violations of the Federal or State
crtm1nal drni'statutes;
Crlminal drug statute means a Fed.~al or
non-Federa.! crimina) statute involving the
muufacture, djetr:ibut1on~ di~nc. use,
or PD8B8I!I8ion of aDY controlled nblStance;
Bmplo.,u mearus the employee of a lP'aDtee
directly engaged in the perfOrDlllDC8 of work
under a grant. inclUding: (:I) AU dirtidchar:.~
employees; (if) All indfrect charge employees
unless their Impact or involvement 1s Insig-
nificant to the performance of the grant!;
and, (11) Temporary perao.DDel and consult-
ants who are directly encaged tn the per--
formauace of ....ork UDder the srant and1who
are OD the sran\ee's payroll. This deftn1'Uon
doea not mclude workers Dot on the payroll
of the grantee (e..g.. volunteera. even :If Wled
to meet a. mat.chJng requireJnent; connlt-
ants or Independent. contractors not on the
grantee's payroll; or employees of sabrec1pf-
ents or subcontractors in covered work.
places).
Certification Regarding DTug-Free Workplace
Requirements
Alternate 1_ (GRANTEES 0TJni:R THAN
INDrvIDUALS)
A. The grantee certifies that Jt will or will
continue to prov1de a drug.free workplace
by:
43 CFR Subtitle A (IIH--ll2 Edillon)
(a) \ublishfng a statement notifying- em-
ployees that the unlawfU) manufacture, dis-
tribution, dispensing, possesa1on. or use of a
controlled substance is prohibited tn the
grantee's workplace and specttytng the ac-
tions tha.t wUl be. taken .,.tnst employees
for violation of 8uch prohibitJon;
(b) EstabUahing an ODl'oinc drug-free
awareness program to Inform employees.
about---
(1) Tbe dangers of drag abuse in the work-
. place;
(2) The 1'J'&>>te6's policy of mainta.1nfng- a
drug-free workplace;
(3) Any available drug coun8eUng, rehabfU-
taMon, and employee assistance programs;
a.nd
(t) The penalties that may be imposed
uponemployeeafor drug abuse vlolatJons oc.
currlng 10 theworkplaoe;
(0) Makin" it a requirement that each em-
ployee to be engaced in the performance of
the IrraDt be gjven a copy of the statement
required by :paraen.ph (a);
(d) NotU)1ng the employee In the state-
ment requJred by paracrapb (a) that, as a
condition of employment under the gnmt,
the employee w1ll-
(1) Abide by the terms of the statement;
a.nd
(2) NotifY the employer in writ.fng of bis or
her conviction for a violation of a criminal
drug statute occnning in the workplace no
later than nve calendar days after such con-
viction;
(e) NotifYing the aeency in writing, within
ten calendar days after receiving notice
under paracraph (d)(2) ft'om an employee or
otherw1ee reoelv1nc' actual notice of such
conviCtJon. Employers of convicted employ-
ees must provide DOUce. 1nc1uinD'g poeltton.
title. to every grant. omcer or other des1e:oee
on whose crant activity the convicted em-
ployee... workbag. unless tl:le Federal acen-
cry baa des:lanated a centra.l POint for, .the re-
cetpt 01 such noUces. Notice shall include
the 1dentincat1on nwnber(s) of each affected
grant;
(f) Ta.kIDg" one of the foJlow1Dg a.Ct1008,
w:iUdn 30 calendar days of recelv:lIlg" Dot1ce
Ullder p&racra.pb (d)(2), with respect to any
employee who Is ~ convicted-
(1) Tall:1ng approprfate ))enonne) action
a.gajnat wch an employee. up to and Includ-
ing termlna.tion, coD8:1etent with the require-
ments of the RehabUlta,tJon Act of )9'73, as
amended; or
(2:) Requiring such employee to participate
satisfactorily in a drug abuse assistance or
rehabfUtatfon program approved for such
purposes by a Federal, State, or local health.
law enforcement, or other appropriate agen-
cy;
(g) Making a good fa1th effort to continue
to ma1ntaln a drug.free workplace through
implementation of paragraphs (a), (b). (c),
{d), (e) and (t).
330
Office oflhe SecrefOfy, Inferior
B. The grantee ma.y insert In the space :pro-
vided below the site(ll) for the performance of
work done In connection with the spectnc
grant:
Place of Performance (Street address, city..
county. State, zip code)
Check 0 I( there are workplaces on file that
are not identified here.
Alternate J/. (GRANTEES WHo ARE
INDIVIDUALS)
(a) The grantee cartmes that. as a condi-
tion of the grant, he or alia will not engage
in the unlawful manufaCture, d18trlbutioD,
dispensing, possemoD, or use of a controlled
substance in conducting a.ny actJvity with
the grant;
(b) ]f convicted of a criminal druB' offense
reaultjng ft'om a violatfon OCCUrring during
the conduct of any grant activity. he or sbe
w1ll report. the conViction, in wrltinl'. within
10 calendar days of the conviction, to every
grant omcer or other designee, unless the
Federal &gency deaipates a central point for
the receipt of such notices. When notice Is
made to such a central point, It sballlnclude
the identification number(s) of each affected
IP'&nt.
[55 FR 21690. 21701. May 25, 1990)
Subpart E-Buy American Re-
quirements lor Assblance Pro-
grams
SOURCB: 59 FR 86715, July 19, 1994, unless
otherwise noted.
BuY AMERICAN ACT-SUPPLIES
112.700 Scope.
This subpart implements section 307
of the Omnibus Consolidated ApprQ-
priations Act DC 1997 . (Public Law ]04-
208, 110 Stat. 3009) and section 501 of the
Energy and Water Development Appro-
Priations Act. 1997 (Public Law ]04-206,
110 Stat. -2984). For awards made under
the authority of section 307(a) of Public
Law 104-208, this subpart requires that
no fu.nds made available 1n the Act
may be expended by, an entity unless
the ent1ty agTees that 1n expending the
funds the entity wjll comply with sec-
tions 2 through 4 of the Act of March 3.
1933 (41 U.S.C. lOa-IDe; popularly known
as the "Buy American Act"). It applies
to procurement contracts under grants
~ 12.705
and cooperative agreements which pro-
vide "for the purchase of equipment and
products. Section 501 of Public Law
104,-206. no Stat. 2984, only applies to
awards made by the Bureau of Reo--
lamation. In addition. for theee awards,
there is only a requirement that 1n pro-
viding financial assistance to, or enter-
ing into any contract w:1th, a.ny entity
using funds made available in this Act,
the Secretary, to the gre&test extent
practicable. will provide to the entity a
notice describ:lng a statement within
the Act made by Congress. This state-
ment concerns the sense of the Con-
gress that to the greatest axte.nt prac-
ticable, all equipment and products
purchased with funds .made avail,able in
the Act, should be Amer1ca.n-made.
Therefore, for Fiscal Year 1997 awards,
only the r8quire,m8IltB jn Section ]2.700
and 12.710 will apply to awards made by
the Bureau of Reclamation.
[61 FR6B667, Dec. 30'.1996]
f 12.705 DeI1nitioD&
Component$. as used in this subpart,
means those articles, materials, and
supplies incorporated directly into the
end products.
Concern, as used in this subpart,.
meaBS any bus1neB8 entity organized,
for profit (even if itsownershJp is in
the bands .of a nonpro1'1t entity) with a
place of bualneos located In the United
States and which makes a BignJf1cant
contribution to the U.S. economy
through payment of tues and/or use of
Amerlcan products, to an individual.
partnership, corporation, joint venture,
association, or coopera.tive.
Do,rnutfc end product, as used in this
5ubp&rt,>means (a) a:Q. unmanufactured
end product mined" or produced in the
United States; or (b) an end product
manufactured in the United States, if
the cost of ita components mined, pr0-
duced, or maDUfactur8d In the United
States exceeds 50 percent of the cost of
all Its components. (In determJnlng jf
an end product :18 domestic. only the
end product and its components shall
be considered.) The cost.Of each compo-,
nent includes transportation costs to
tbe place of :Incorporation into the end
product and any applica.ble duty
(wbetller or not a duty-free entry cer-
tiftcate is issued). Components. of for-
eign origin of the same class or kind
331
~ 12.710
for which detenninations bave been
made in accordaIlce with Section
12.710(d) (3) and (4) are treated as do-
mestic. Scra.p generated, collected. and
prepared for process1ng in the UnJted
States :Is consjdered domestic. On ac-
Quisitions a.bove $25,000 in value. com-
ponents of Canadian origin are treated
as domestic.
Domestic olfer. as used in this subpart,
means an offered price for a. domestic
end product, including transportation
to destination.
End product. as used In th1s subpart.
means those articles, materials, and
supplies to be acqUired for public use
under the grant. coope'ratlve agree-
ment, or procurement contract award-
ed under tbe grant or cooperative
agreement.
FOTefg1z. end product. as used in this
subpart, means aD end product other
than a domestic end product.
Foreign offer. a8 used in this Bubpart,
means an offeredprlce for a foreign end
product, inclUding transportation to
destination and duty (whether or not a
duty-tree entry cert1flcate is issued).
Instrumentality; as used- 1D this sub-
part. c10es not include an agency or di-
visJon of .the government of a. country.
Labor surplus .area, &8 used in this
subpart, means a geograPhical area
identified by the Department of Labor
In accordance with 20 CPR part 864.
Bubpart A. a.s an area of concentrated
unemployment or underemployment or
an area of labor surplus.
Labor $Urplus area concern. as used in
this subpart, means a concern that tAr
gether . with 1 ts l1rst-tier subcontrac-
tors will perform sub8ta.nt1ally in labor
surplus areas..Performance 1s substan-
tially In labor surplus areas If. the cbsta
incUlTed under the contract on account
of manufacturiD&'. production, or per~
formance .of appropriate services in
labor surplus areas exceed 50 percent of
the contract price.
United State" as used in this subpart,
means the states thereof. the District
of Columbia, and the territories and
possessions of the United States.
[59 FR S67l5. July 19, 1994, as amended at 61
FR 68668. De~. 30. 1996]
~ 12.710 Policy.
(a) In the case of any equipment or
prOduct that may be authorized to be
43 CFR SubIlIIe A (IIH-02 Edition)
purcl\ased with finanoial assistance
provided using funds made available
under Public Law 104-208. it is the
sense of Congress th"t entities receiv-
ing the assistance should. in expending
the assistance, purch&8e only Amer-
ioan-made equipment and products.
(b) In awarding fInanoial assistance
under Public Law 104-208. 110 Stat. 3009,
. bureaus and offioes exclucUng the Bu-
reau of Reclamation will provide to
each recipient of the assist.a.noe the fol-
lowing notlo~:
NOTICE: Pursuant to sec. 307 of the Omni-
bus Consolidated Appropriations Act of 1997.
Public Law 1Of-208. no Stat. 3009. please be
advised of the following:
In the case of any equipment or product
that may be authorized to be purchased with
financial I!oB81staqce pronded aatDC'f'Qnds
made aVa2lable In this act, It Is the sense of
the Congress that entities receiving the as-
sistance shouJd. In expending the a.sa1sta.nc&.
purchase only Amer:1can.made equipment
a.nd products.
(c) In awarding finano1al asB1stance
using ~dsmade available under Pub-
110 Law 104-206. to tbe greatest extent
practicable, the Bureau of Reclamation
will proVide to each recipient of the &8-
sistaDcethe following notice:
NOI'lCB:: Pursuant to sec. 501 of the Energy
and Water Developmet Appropriationa Act,
191'1, Public Law 101-3)6, 110 Stat. 29M, please
be advised oC the Coll01V'1.lig:
It is the lSenae of the Conereaa. that to the
greatest extent practicable, all eqUipment
and products purchased with fonds made
ava1lable In this act sbould be Amet1ca.n-
made.
(d) The Buy Amencan .Act requires
that only domestic end prOducts be ac-
quired for public use. except articles.
materials, and supplie~
(1) For use outside the United States;
(2) For which the cost would be UD.-
reaso>>able, as determined.1n accord-
ance with fj2.715;
(3) For which the agency head deter-
mines that domestio preference would
be inconsistent with the pUblic inter-
est; or
(4) That are not mined, produced, or
manufaotured in the United States in
sufficient - and reasonable available
commercial quantities, of a satisfac-
tory quality (see U2.720).
332
Office ot the Secretory, Interior
(e) The grantee's contracUng officer
may make a nonavallabll:lty deter-
mination under U2.710(d)(4) for a pro-
curement contract awarded under the
grant or cooperative agreement if-
(1) The procurement action was con-
ducted by .rull and open competitJon;
(2) The procurement action was pub-
licly advertised; and
(3) No offer for a domestic end prod-
uct was received; or
(0 me head of the grantee's con-
tracting activity or. designee may
make a nonavaJlabUlty determination
under S12.710(d)(4) for any cir-
cumstance othertban specified 1n para-
graph (8) of this section.
{59 FR 36715, July 19, 1994, as amended at 59
FR 65500, Dec. 20. 1994; 61 FR 39084, July 26,
1996; 61 FR 68668. Dec. 3D, )996)
A 12.716 Evaluating offen.
(a) Unless the head of the grantee or-
ganization or a designee at a 'level no
lower than the grantee's designated
awarding official determines otherwise.
the offered prlce of a domestic end
product is unreasonable when the low.
est accepta.ble domestic offer exceeds
the lowest acceptable foreign ofier (see
fi12.705). inclusive of duty, by-
(1) More than &; perCUlt. jf the domes-
tic offer is from a large business that; Is
not a labol" surpl9.s area concern; or
(2) More th8.n 12 ~C8Dt. if the dO-
mestic offer is from a small buB1ness
concern or any labor surplus area con-
cern.
(b) The evaluation in paragraph (a) of
this section shall be applied OD an
item-bY-1tem basIs or to any group of
items on wh1ch award may be made as
spec1fically provided by the sol1c1ta-
tion.
(c) If an a.ward of more than $250.000
would be made to a. domestic concern 1f
the 12--percent 1"actor were appl1ed. but
not if the 6-percent factor were appl1ed.
the bead of the grantee organization or
a. des1gnee a't a level no lower than the
grantee's designated awardIng offic1al
sball decide whether award to the do-
mestic concern would involve unrea-
sonable cost.
~ 12.720 Excepted articles. materials.
and supplies.
(a) As indicated in the Federal Acqui-
sition Regulation (FAR), one or more
~ 12.730
agenc1es bave determined that the arti-
cles, materials, and suppUes on the list
referred to in paragraph (b) of this sec-
tion are not mined, produced, or manu-
factured in the United States in sum.
c1ent and reasOnably ,available com-
mercial quantit1es of a satiSfactory
quality. This referenced Ust in para_
graph (b) of this section is fUrnished for
information only; ~ article, material
or supply listed therein may be treated
as domestic only when the head of the
grantee organ1zatfon or a designee at a
level no lower than the grantee's des-
ignated awarding official has made a
determination that it is not mined.
produced. or manufactured: 1n the
United States in sufficient and reason':'
ably available quantities. of a satisfac-
tory quality.
(b) Refer. to the current Ust of ex-
cepted articles. materials. and supplies
In FAR 25.108 (48 OFR 25.108).
112.726 Solicitation provisioDs and
contract clause.
(a.) When quotations are obtained
orally, vendors shall be informed that
only domestfcend products, other than
end products excepted on a bl&Dket or
Individual basis (see il2.720), shall be
acceptable. unless the price for an of-
fered domestic end product 1s unrea.
80nable (see 112.715).
(b) The grantee awarding officer shall
.Insert the clanseat 112:730, Buy Amer-
ican Act-Supplies, In 8OUcitatiODS for
procurement contracts awarded under
the grant or cooperative agreement for
the purchase of supp11es. or for services.
involving tbe furnishing of supplies, for
use within the United States.
1 12.'130 ,Buy American ~ct--SuppUea.
As prescribed in 112.725, insert the
following clause:
Buy AMERJCAN ACT-SUPPLIES
(a> The Buy American Act (41 U.S.C. 10)
provides that the Government give pref-
eNlDCe to domestic end products.
Components, as used fn tbfs clause, melll1S
those articles, materials, and suppUes Incor-
porated directly Jnto the end products.
Domestic end product, as used in this clause,
means an . unmanufactured end product
mined or prodUCed in the United States, :If
the cost of its components mined, produced,
333
912.800
or manufactured in the United States ex-
ceeds 50 percent of the cost of all its compo-
nents. Components of foreign origin of the
same class or kind as the prodncts referred
to 1n paragraphs (b)(2) or (8) of this clause
shall be treated a.s domestic.
End PTOducu, as used In this clause, means
those articles, materials. and suppJles to be
aCQuired for public use under this oontra.et.
(b) The contra.ctor shall deliver only do-
mestic end products, except those-
(I) For use outside the UnH;.ed States;
(2) Tha.t the Gdvermnent determfn88 are
not mined, produced, or manufactared In the
United States in sumchmt and reasonably
available commerctal Qll&nt.ttles of a satis-
factory Quality;
(3) For whlcb the head of the gTBntee orga-
nization or a. desllllee at a level no lower
than the I"l'aDtee's designated awatdfng om.
ctal det.ennin8S that domestic preference
would be inconsistent with the publfc' fnter-
est; or
(4) For whfch the head of the p-antee orp.-
nlzatfon or a dasfl'Dee at a level DO lower
than the gTaJltee's desfgnated aw~fng offi-
cial determines the cost to be unreasonable
(see Sl2.715).
(End of clause)
BUY AMERICAN ACT-CoNSTRUCTION
MATERIALS
~ 12.800 Scope.
This subpart implements the Buy
American Act (41 U.S.C. 10). It applies
to procurement contracts awarded
under a grant or cooperative agree-
ment for the construction. alteration,
or repair of any public building or Pub-
lic work in the United States.
112.805 Defiultl......
Components, as used in this Bubpart,
me~s those artJc1es, mateI1a1s, and
supplies incorporated, directly into con-
struction mateI1als.
Construction, as used in this subpart,
means construction, alteration. or re-
pair of any public building or pubUc
work in the United States.
Construction materials, as used in this
subpart, means an article, material,
and supply brought to the construction
site for incorporation into the building
or work.
Construction material also includes
an item brought to the site pre..,assem-
bled from articles, materials, and sup-
plies. However, emergency life safety
systems, such as emergency lighting,
fire alarm, and audio evacuation sys-
4J CFR SublilJe A (IIH-02 Edition)
terns, which are discrete systems incor-
porat&s into a public building or work
and which are produced as a complete
system, shall be evaluated as & single
and distinct construction material re-
gardless of when or how the individual
parts or components of such systems
are delivered to the construction sJte.
Domestic construction material, as used
in this section, means: (a) An unmanu-
factured construction rna'terial mined
or produced in the United States, or (b)
a construction material manufactured
in the Uni~d States, jf the cOst of its
components' mined, produced, or manu-
factured in the United States exceeds
50 percent of the cost of all its compo-
nents. (In detennin1ng whether a con-
struction material Is domestic, only
the construction material and its com-
ponents shaJl be considered.) The cost
of each. component includes transpor-
tation costs to the place of incorpora-
tion into the construction material and
any applicable. duty (whether or not a
duty-tree entry cert1f1cate :Is issued).
Components of foreign origin of the
same clas8 or kind for whtcb deter-
minatiODS have been made in accord-
ance with S 12.810{a){S). are treated as
domestic.
FOTeign construction material, as used
in this section, means as CODstruction
material other than a domestic .con-
struction material.
United S/afa (.... U2.705).
U2JlIO PoHoy.
(a). The Buy American Act requires
that only domestic construction mate-
nus be used in construction :In the
United States,. except when---.
(1) The coat. would be unreasonable as
detennined.1n accordance withU2.815;
(2) The head of the grantee organiza-
tion or a designee at a level no lower
than tbe grantee's designated aWarding
omdaJ detmnlnes that use of a par.-
ticular domestic constructjon matei1al
would be impracticable; or
(3) The head of the grantee organiza-
tion or a designee at a level no lower
than the grantee's designated awarding
official determines the construction
material is not mined. produced, or
manufactured .in the United States in
sufficient. and reasonably available
commercial quantities of a satisfactory
quality (see ~ 12.720).
334
OIflce of the Secretary, Interior
(b) When it Is determined for any rea-
SODS stated in this section that certain
foreign constructJon materials may be
usedl the excepted materials shall be
l1ated in the agreement. Findings justi-
fying the exception' shall be available
for public inspection.
112.815 Evaluating otren:.
(a.) The restrictJons of the Buy Amer-
ican Act do not applY when the head of
the grantee organization or a deB1gnee
at a level no lower th&D. the grantee'S
designated aWarding aiOcia] deter-
mbes that using a part1cular domestjc
co:pstructloD' material would unreason-
ably increase the cost or wouJd be im-
practicable.
(b) When' proposed awards are BUb-
mitted to the hea.d -of the griLntee orga-
nization or a. designee at a level no
lower than the grant;ee'sdeslgnated
awarding otnc:lal for approval. eacb
submission shall,lnclude a description
of the mater1als, !Deluding unit and
quantity, estimated costs, -locat'Jon of
the construction project, name and' ad-
dress of the proposed contractor ,and a
detaJ1ed justification of the impra.c-
ticabll1ty of Using domestic materials.
f 12.820 Violations.
Violation of the Buy Am'mcan Act in
the perfonnance 01 a procurement con-
struction contract under a ,grant or co-
operative agre8ment 18 a cause for de-
barment. Infonnatlon cODcern.1ng a
failure to comply with the clause at
f ]2.830, Buy American AC~OD8truo-
tiOD Materials, shall be promptly re-
ported, investigated, and referred,
when appropriate to the appropriate
U.S. Department of the Interior em-
ployee responsJble for adminIstering
the grant or cooperative agreement.
(For debarment procedures, eeB subpart
D oftMs part).
f 12.825 Solicitation provision BJld COD-
tract clause.
The grantee awarding official shall
insert the clause at i 12.830. Buy Amer-
ican Act-Construction Materials. in
g 12.830
solicitations for procurement contracts
awartled under a grant or cooperative
agreement for construction inside the
United States.
! 12.830 Buy American Act-'-CoD8truc-
tiOD materials.
As prescribed in 112.825, insert the
following clause in solicitations for
procurement contracts awarded under
a grant or cooperative agreement for
construction insidt;!l the United States:
Buy AMERICAN ACT-CoNSTRUCTION
MATERIALS
<a) The Buy American. Act (41 U.S~C. 10)
provides that the Government Jive pref-
erence to domestic constructJoD material.
Components, used 1D this clau88, means
tJ;mse artJcJes. materials, and supplies incor-
porated directly into COnstruCtJOD materlals_
ConstTUction material" as p.sed in this clause,
means an article, material. or supply
brous-ht to the construction s.Jte for incorpo-
ration into the bunding or work. Construe-
tJon ma.terial also includes an item brought
to the site pre-assembled trom artJcIes. ma-
terials or supplies. However. emsrgODCY Ufe
safety systems, aacb as emergency lighting,
fire alarm, and audio evacuatiOD systems.
whiCh are discrete systems incorporated IJ;lto
a pablio building or work and which are Pf'07
duoed &8 a complete system. ab&ll be 8V<l~
ated as It. sfnglllt and distinct cODstruction _
material regardleis8 of when or how tbe indi-
vidual parte or componei1ta or neb SYlltems
are delivered, to the CODl!ltnlCtJon Ate.
Domuffc con.rtructfon material. as used :in
this clauss. mean. (a) an unmanufactured
conatructjon material mined or produced in
ths United States., or (b) a constructloD ina-
terial manufactured in the United States, if
the cost of its components mined. prOduced.
or manufactured in the UnJted States ex-
ceeds 50 percent of the qost of al1its compo-
nents. Components of foreign origin of the
same cl..- or kind N the cop,StroCtiOD mate.
rials determined to be unavailable pursuant
to 1.12.810(.)(3) of ~3 eFR part 12, subpart E
sha.H be treated as domestic.
(b) The contractor acrees that only domes-
tic cODstruction material w1l) b& used by the
contractor, sDoo'ontractorB. materialmen.
and supplJers in the perfonnance of this
agreement. except for foreign construct1on
materia.ls, :if any, listed 1n this agreement.
335
~ 12.901
(End of clause)
Subpqrt F-Unlform Admlnls1rallVe
Requirements lor Grontsand
Agreements With InsIIIutIons
01 Higher Education, Hospitals,
and Other Non-Prollt Organl-
zollons
SOURCS: 60 FR ]7238,. Apr. 5. ]995, unless
otherwise noted.
GENERAL
! 12.901 Purpose.
This subpart establishes unJform ad-
ministrative req,uirements for Federal
grants and agreements awarded to in-
stl.tut:lons 01 higher educat1on. hos-
pitals. and other non-pront organiza-
tions.
A 12.902 DefinitioDS.
ACGTUed expenditures means the
charges incurred by the reCipient dur-
ing a given period requiring the provi-
sion of funds for:
(1) Goode and other ta.n~ble property
received;
(2) Services performed by, employees,
contractors. 8ubrec1plents, and. other
payees; and,
(S) Other auiOni:1ts becoming owed
under programs for which no current
serv1ces or performance Is required.
Accrued income me&D8 the sum of:
(1) EarnIngs during a given pexlod
from:
(i) Services performed by the recipi-
ent. and
(U) Goods and other tangible pro~
erty delivered to purchasers. and '
(2) Amounts becoming owed to the
recJpi8JJt for wbjch no cWTent serv1-ces
or performance is required by the re-
cipient.
Acquisition cost of equipment means
the Det invoice price of the equipment,
including the cost of modincatjoDs. at-
tacbments, accessories, or aux1Uary
apparatus necessary to make the prop-
erty usable for the purpose for which it
was acquired. Other charges. such as
the cost of installatioD, transportation,
taxes, duty or protective in-transit in-
surance, shall be included or excluded
from the unit acquisition cost in ac-
43 CFJ/ Sublllfe A (IlH-()2 Edilton)
cordapce with tbe recipient's regular
accounting practices.
Advance means a payment made by
Treasury check or other appropriate
payment mechanism to a recipient
upon its request either before outlays
are made by the recipient or through
the use of predetermined payment
schedules.
Award means financial asSistance
that provides support or stimulation' to
accomplish a public purpose. Awards
include grants and other agreements in
the form of money or Property in lieu
of money, by the Federal Government
to an eligible recipient. The term does
not include: technical assistance,
which provides services ..1DStea.d of
money; other assistance in the form of
loans. loan gaarantees, interest sub-
sidies. or insurance; direct payments of
any kind to indiv1duaJ8; and, contracts
which are required to be entered into
and adm:1D.istered under procurement
laws and regulations.
Cash contributions means the recipi-
ent's cash outlay. including the outlay
of money contributed to the recipient
by third parties.
Closeout means the process by which
a Federal agency detenmnes that all
applicable administrative actions and
all required work of the award have
beeD .oomplet.ed by the recipient' a:od
Federal aWarding agency.
Contract means a procurement' con-
tract under an" award or BUbaward, and
a. procarement subcontract under a re-
cipient's or subrec1pfent's contract.
Coil. sharing or matching means that
portion of project or program costs not
borne by the Federal Government.
Date of completion- means the date onowhich all work: under an awa.:rd is'com-
pleted or the date on the award docu-
ment. or any supplement or amend-
ment thereto, on which Federal spon-
sorship ends.
Dfsallowed costs means those charges
to an 'award tbat the Federal awarding
agency deternUnes to be unallowable.
in accordance with the applicable Fed-
eral cost principles or other terms a.nd
conditions contained in tbe award.
Equipment means tangible non expend-
able personal property including ex-
empt property charged directly to the
award haVing a useful life of more than
one year and an acquisition cost of
336
Office of the Secretory, Interior
$5,000 or more per uDit. However. con-
sistent with recipient policy. lower
limits may be establ1shed.
Excess property means property. under
the control of any Federal awarding
agency that, as determined by the Sec-
retary, Is no longer required for its
needs or the d.iscbarge of its respon-
sibilities.
Exempt property means tangible per-
sonal property acquired in whole or in
part with Federal funds. where the
Federal awarding agency has statutory
authontyto vest title In the recipient
without :f\1rther obligation to the Fed-
eral Government. An example of ex-
empt 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 edq-
cation or non-profit organization
wbose principal purpose is conducting
scientific research.
Federal funds authorized means the
total amount of Federal funds obli-
gated by the Federal Government for
use by the recipient. This' amount may
'include any authorized carryover of un-
obl1gated funds from prior funding pe-
riods when permitted' by agency regula-
tions or agency implemen~ng instruc-
tions.
Federal share of real property, equip-.
manto or suppl1es means that percent-
age of the property's acquisition costs
and any improvement expenditures
paid with Federal funds.
Funding period means 'the period of
time when Federal funding is a.vailable .
for obl1gation by the recipient.
Intangible property and' debt ,instru-
ments means, but 'is Dot limIted tQ,
trademarks, copyrights.. patents and
patent applications and such property
as loans. notes and other debt instru-
ments. lease agreements, stock and
other instruments of property owner-
ship. whether considered tangible or in-
tangible.
Obligations means tbe amounts of or-
ders placed, contracts and grants
awarded, services received and similar
transactions during a given period that
require payment by the recipient dur-
ing the same or a future period.
Outlays OT expenditures means charges
made to the project or program. They
~ 12.902
may be reported on a cash or accrual
basis. For reports prepared on a cash
basis, outlays are the sum of ca.sh dis-
bursements for direct charges for goods
and services, the amount 01 indirect ex-
pense charged, the value 01 third party
in-kind contrlbutJona appl:led and the
amount of cash advances and payments
made t.o Bubrec:lpl~nts. For reports pre-
pared on an accrual basis, outlays are
the sum of: cash disbursementS for di-
rect charges lor goods and service:!}; the
amount of indirect expense incurred;
the value of in-k1ncl contributions ap-
plied; and the net increase (o.r de-
crease) in the amounts owed by the re-
cipient for goOds and other property re-
ceived, for services perfonned by em-
ployees, contractors, Bubrec:lp:lents and
other payees and other amounts be-
coming owed under programs "for which
no cUITen.t services or perfonnanceare
required.
Personal' property means property of
any k:lndexcept real property. It. may
be tangible, having PhYB1cal existence.
or :lntan,gible, having no physical' exist-
ence.. such as copyrights. patents. or
securit1es.
Prior approval means written ap-
proval bY. an authorized omcial evi-
dencing prior consent.
PToJ}Tam income means gross income
earDed by the reclpl8D~ ~ba~ 18 d1rectly
generated by a suppoi'ted activity" or
earned as a result of the award (see 8X-
clusloDB 1n 112.924 (e) and (h)). Program
income includes, but is not l1mited to,
income from fees for services per-
formed, tbe use or rental of real or per-
sonal property acquired under Feder-
ally-fUnded projects" the sale of com-
modities or' items fabricated under an
award, license fees and royalties on pa-
tients and copyrights, and interest on
loans made with award funds. Interest
earned on advances of Federal funds is
not program income.. Except as other-
wise proVided :In Federal awarding
agency regulations or the terms and
conditions of the award. program in-
come does not include the receipt_of
principal on loans, rebates, credits, dis-
counts, etc., or interest earned on any
of them.
Project costs means all a.llowable
costs, as set forth in the applicable
Federal cost princjples, incurred by a
337
~ 12.902
recipient and the value of the contribu-
tions made by third parties 1n accom-
plishing the objectJves of the a.ward
during the project period.
Project'perl.od means the period estab-
Ushed In the award document during
which Federal sponsorship beglnsand
ends.
Properly means, unless otherwise
stated. real property. equipment, sup-
plies, intangible property and debt in-
struments.
Real.propertll means land, including
la.nd improvements, structures and ap-
purtenances thereto, but excludes mov-
able machinery and equipment.
Recipient means an organlZ$t1on re-
ceiving fInancial assistance directly
from Federal aWarding agencies "to
carry out a. project or prograin. The
term includes public and private 1nstJ-
tutlons of, higher educatJon. public pd
private hospitals, and other quasi-pub-
lic and private Don-profit organlzat1ons
such as, but Dot l1m1ted to. community
action .agencies, research lnst1tl:l'tes.
educational associations. and health
centers. The term may include. at the
discretion of the Federal awarding
agency, foreign or international orga-
nizations (Buch as aareDcies of the
United Nations) which are recipients,
subrec1ple.nts. or contractors or sub-
contractors of reC'jp1enta or 8ubre~pl.
ents. The term does not Include gov-
ernment-owned CODtractor--opera.ted fa-
cilities .or research centerS providing
continued support for m:lss1on-orJented,
large-scale programs that are govern-
ment-owned or controlled. or are des-
ignated as Federo.lly-funded research
and .development centers~
ReseaTch. and development means 1 all
research activities.. both basic and ap-
plied, and all. development activities
that are supported at unJversJt:les. col-
leges, and other non-proflt institu-
tions.
(1) ReseaTch 1.s defiDed as a syijtema.tic
study directed toward fuller scJent1f1c
knOWledge or understanding of the sub-
ject studJed.
(2) Development is the systematic use
of knowledge and understaDd1ng gained
from research directed toward the pro-
duction of useful mateI1als, devices,
systems, or methods, inclUding design
and development of prototypes and
processes. The term research also in-
43 CFR Sublflle A 00-1-02 Edllion)
cludel' activities involving the training
of individuals in research techniques
where such activities utilize the same
facilities as other research and devel-
opment activities and where such ac-
tivities are not included in the instruc-
tion function.
Small awaTds means a grantor coop.-
erative agreement not exceeding the
small purchase thresbold fixed 'at 41
II.S.C. 403(11) (currently SIOO.OOO).
Subaward means an award of finan-
cial assistance in the form of money, Or
property in )Jeu of money. made under
an award by a recipient to an eligible
subrecipient or by a subrecipient to a
lower 'tier sUbrecipient. The term in-
cludes financial assistance when pro-
vided by any legal agreement. even if
the agreement is called a contract, but
dQe$ not include procurement of goods
and services nor does it include any
form of assistance which is excluded
from the definition of "award" in this
section.
Subrecipient means the legal entity to
which a subaward is made and which is
accountable to t.herec1pient for the use
of the funds provided. The term may
include foreign or international organi-
zations (such as agencies of the United
Nations) at the di$cret1on of the Fed-
eral aWa.rd1ng agency.
Supplies means all personal property
excluding equipment. intangible prop-
erty. and debt instruments as deflned
In this section, and Inventions of a con-
tractor conceived or flnt. actually re-
duced to practice in the performance of
work under a funding agreement
("subject inventions"). as defined in 37
CFR part 401, "Rights to InventioDs
Made by Nonproflt OI'ganizations and
Small Business Firms Under Govern-
ment Grants, Contracts. and Coopera-
t1ve Agreements...
Suspension means an action by a Fed-
eral awarding agency that temporarily
withdraws Federal sponsorship under
ft.D award, pending o:orrective action by
the reclpient or pending a decis10n to
tenntnate the award by the Federal
awarding agency. Suspension of-an
award is a separate action from suspen-
sion under the Department of the Inte-
rior. Regu)ations implementing E.O. 's
12549 and 12689, "Debarment and Sus-
pension." See subpart D of 43 CFR part
12.
338
Office of the Secretary, Interior
Termination. means the cancellation
of Federal sponsorship. in whole or In
part, under an agreement at any time
prior to the date of completion.
Third party in-kind contributions
means tbe value of noncash contribu-
tions provided by non-Federal third
parties. Third party in-kind contribu-
tions may be in the form of rea.) pro}r
arty. equipment. supplies and other ex- .
pendabJe property. and the value of.
gooda and services directly benefiting
and specifically IdentJf1abJe. to the
project or program.
Unliquidated obligatfo1l3, fo~ financial
reports prepared on a. cash basis, means
the amount of obliga.tions incurred by
the recipient that ha.ve noto been paid.
For reports prepared on an accrued ex-
penditure basis. they represent the
amount of Obligations incurred. by the
. recipient; for which an outla.y has not
been. recorded.
Unobligated balance. means the por--
tiOD of the funds authorized by Federal
awarding agency that bas not been ob-
ligated by the recipient and Is deter-
mIned by deducting the cumulative o~
ligations from the cumulative f\lnds
authorized.
Unrecotlered indirect cost mea.ns the
difference between the amoun.t awarded
and the amount which "could bave been
awarded under the recipient's approved
negotiated indirect cost rate.
Working capital advance means a pr0-
cedure whereby funds are advanced to
the recipient to cover its estimated
disbursement needs for a given In1tJ:al
per1od.
f 12.903 Effect on other issuances.
For awards subject to this subpart.
all administrative "requirements 9f
codified program regulatioDs. program
manuals, handbooks and other non-
regulatory materials wh1ch are incon-
mstent with the requirements -of this
subpart shall "be superseded, except to
the extent they are required by stat-
ute, or authorized in accordance with
the deviations provision in SeeM on
12.904.
~ 12.904 Deviations.
The Office of Management and Budg-
et (OMB) may grant exceptions for
classes of grants or recipients subject
to the reQujrements of this subpart
912.911
whell exceptions are not prohibited by
statute. However. in the interest of
maximum uniformity, exceptions from
the requirements of tMssubpart shall
be permitted only in unusual cir-
cumstances. Federal awarding agencies
may apply more restrictive require-
ments to a class of recipients when ap-
proved by OMB. All requests for class
deviations shall be processed through
the Assistant Secretary-Pol1CY. Man-
agement. and Budget. Federal award-
ing agencies ma.y apply less restrictive
requirements wben awarding small
a.wards, except for those requirements
which are statutory. Exceptions on a
case-by-ca.se basjs may also be made by
Federal $.warding agencies. BUreaU/of-
nce application of less restrictive re-
quirements when "awarding small
awards. except for those requirements
which are statutory, as well as excep-
tions on. a case-by-case basis, win be
handled by designated officiaJs identi-
fled in bureau/office procedures.
f 12.905 SubawardL
Unless sections of this subpart spe-
cifically exclude subrecJpients from
coverage. the provisions of th18 subpart
shall be applied to subrecipfents per-
forming work under awards if such sub-
recipients are institutions" of bigher
education. hospitals. or other non-prof-
it orga.njzationB. State and local gov-
ernment BubreeJpi~t8 are SUbject to
the provi81ons of regulations Impla-
mentiDg the grants management com-
mon rule. "Uniform Adm1n1strative
Requirements for Grants" and Coopera-
tive Agreements to State and Local
Governments," 43 CFR part 12.
PRE-AWARD REQUIREMENTS
112.910 Purpo....
Sections 12.011 through 12.917 pre.
scribe forms aDd instructions and other
pre-award matters to be used in apply-
ing for Federal awards.
f 12.911 Pre-award policies.
(a) Use of Grants and CooperaUve
Agreements, and Contracts. In each in-
stance, th.e Federal awarding ag-ency
shall decide on the appropriate award
instrument (I.e., grallt. cooperatjve"
agreement, or contract). The Federal
Grant and Cooperative Agreement Act
339
~ 12.912
(31 U.S.C_ 6301-6308) governs tbe use of
gra.nts. cooperative agreements and
contracts. A grant or cooperative
agreement shall be used only when the
principal purpose of a transaction 1s to
accompUsh a public purpose of support
or stimulation authorized by Federal
statute. The statutory crlter10n for
choosing between "grants and coopera-
tive agreements Is that for the latter.
"Bubsta.ntlB.1 involvement Is expected
between the executive agency and the
State, local government, or other re-
cipient when ca.rryjng out the activity
contemplated in the agreement." Con-
tracts shall be used when the prlncipaI
purpose :is acquisitJon of property or
services for the direct benefit or use of
the Federal Government.
(b) Public NotiCe and Priority Setting.
F~eral aW&flUng agencies $ball notifY
the public of their fwJ.dlng pr1or1t1es
for discretionary grant programs, un-
less funding priorities are established
by Federal statute.
f 12...912 Forms for appJyiDg for Fed.
em assistrmce.
(a) Federal awarding agencies shaJl
comply with the appUcable report
clearance requirements of' 5 CFR part
1320. "ControllIng Paperwork Burdens
on the Public," with regard to all
forms used by the Federal awa.rdJng
agency in _place of or as a supplement
to the Standard Form 424 (SF-=424) se-
ries.
(b) Applicants shall use the SF--424
series or those -forms 'and lnstructjons
prescr1bed by the FedenJ award1ng
agency.
(c) For Federal .progr8.ms covered by
E.O. 12372, "lDtergovernmentaJ Review
of Federal Programs," the applicant
shall complete the appropriate sections
of the SF-42-4 (Application for Federal
Assistance) indicating whether the ap-
plication was subject to review by the
State Single Point of Contact (SPOC).
The name and address of the SP~C for
a particular State can be obtained from
the Federal awarding agency or the
Catalog of Federal Domestic Assistance.
The SPOC shall advise the applicant
wheth.er the program for which applica-
tion is made has been selected by that
State for review. (See also 43 CFR part
9).
43 CFR Subtitle A (1 ()- 1-1)2 Edillon)
(d) Federal awarding agencies that do
not use the SF-424 form will indicate
whether the application is subject to
review by tbe State under E.O. 12372.
i 12.9] S Debarment and suspension..
Federal awarding agencies and re-
cjpients shall comply with the non-
procuremen,t debarment and suspension
common rule implementing E.O.8 12549
and 12689, -"Debarment and Suspen-
sion," subpart D of 43 CFR Part 12. This
common rule restricts subawards and
contracts with certain parties that are
debarred, suspended or otherwise ex-
cl,uded from or ineligible for participa-
tion in Federal assistance programs or
activities.
~ ]2..914 Special award conditJOD8.
(a) Federal awarding agencies may
impose additional reqUirements as
needed, .if an appliCant or reCipient:
(1) Has a hfstoryof poor performance;
(2) Is notfinanc.1ally stable;
(3) Has a management system that
does not meet the standards prescribed
in this part;
(4) Has not conformed to the terms
and conditions of a preVious award; or
(5) Is not otherwise responsJble.
(b) Additional requirements may
only be imposed provided that the ap-
plicant or recipfent is notUled in writ-
Ing as to:
(1) The nature of the additional re-
quirements;
(2) The reason why the additional re-
qwrements are being imposed; .
(3) The nature of the corrective ac-
tionneeded;
(4) The time allowed for completing
the corrective actions; and
(5) The method for requesting recoD-
sideration of the additional require-
ments imposed.
(c) Any special conditions shall be
promptly removed ODce the conditions
that prompted them have been cor-
rected.
t ]2.915 Metric system of measure-
ment.
The Metric ConversJon Act, as
amended by the OmnJbus Trade and
CompetitiYeness Act (15 U.S.C. 205) de-
clares that the metric system is the
preferred measurement system for U.S.
trade and commerce. The Act requires
340
OffIce of the Secretary, Interior
each Federal agency to establish a date
or dates 1n consultation with the Sec-
retary of Commerce wben the metl1c
system of measurement will be used in
the agency's procurements, grantS. and
other busJness-related activities. Met-
ric implementat10n may take longer
where the use of the system 1s initially
impractical or Ukely to cause signifi-
cant inefficiencies 1n the accomplish-
ment of FederallY-funded actJvitles.
Federal awarding agenci.es Will follow
the provisions ofE.O. 12770, "Metric
usage in Federal Government, Pro-
grams." When appl1cable, tbe awarding
agency shall request that measure-
ment-sensit1ve information to be l1i-
eluded as part of tlle appUcat1on, be ex-
pressed 1n metric un1ts~ When required
by the awardlngagency. for grants to
recipte'nts. the following term and con-
dition- will be incorporated into the
grant:
PRoVISION
All progress and nnal reports. otller re-
ports, or
. All piogress and final reports, other re-
ports. or publications produced under this
award shall employ tlle metric system of
measurements to the maJdmum extent.:pra.c-
tJc~ble. Both metrio and inch-pound units
(dual units) may be 'U8ed tf necessary durinlr
any tran81tion PerJ:od(8). However, the recipi-
ent. may nae non.metric me&8ureJnenta to
the e.ztent. that the-recipient has supporttnlr
documentation that the nee of metrio meas-
urements i8 impracticable or i8 Ukely to
canae slcnU1C&Dt inemcienc1ea or 1088 of
markets to the recipient. such as wbeD for-
eign compet;iton are producinlr COMpeting
products in non-metric units.
End of Provis1oD
f 12.918 Resource Conservation an~
Recovery Act IRCRA) !Pub. L. _
580 codiIied at 42 p.S.C. G96Z).
Under the Act, any State agency or
agency of a political subdJvtsion of a.
State that Is using appropriated Fed-
eral funds must comply with section
6002 of RCRA. SectJon 6002 of RCRA re-
quires that preference be giveJJ in pro-
curement programs to the purchase of
specific products containing recycled
materia.ls identified in guidelines de-
veloped by the Ellvironmental Protec-
tion Agency (EPA) (40 CFR parts 247-
254). Accordingly, State.and local insti-
tutions of higher edUcation and hos-
912.921
pitals that receive direct Federal
awarC1s or other Federal funds shall
give preference in their procurement
programs funded witb Federal funds to
the purchase of recycled products pur-
suant to the EP A guidelines.
~ ]2.917 CertilicatioDs and represent..
lion..
Unless prohibited by statute or codi-
fied regulation, each Federal awarding
agency i8 authorized and encouraged to
allow recipients to submit certifi-
cations and representations required
by stat.ute, executive order, or regula-
tion on an annual basis, if the recipi-
ents have ongoing and contJnuing rela-
tionships with the agency. Annual cer--
tifica.tJ.ons and representations shall be
signed by responSible officials With the
authority to ensure recipients' compli-
ance with the pertinent requirements.
PosT-AwARD REQUJREMEN1'S
Financial and Program Management
~ ]2.920 Purpose of financial and pro--
gram management.
Sections 12.921 through 12.928 pre-
scribe standards for financial manage-
. ment systems. methods for making
payments and rules for: satis1Y1ng cost
sharing and matching requirements,
accounting for program income, bUdget
revision a.pprovals, maJdng audits, de-
termining al]owability of cost, and es-
tabl1ehi:r;tg fund availability.
t 12.921 StaDcIardo for financial maD.
agem8Dt system..
(a) Federal aWarding agencies shall
reqUire rec~pients to relate financial
data to perfonna.nce ~ta and develop
unit cost 1nfonnatJon whenever prac-
tical.
(b) Recipients' financial management
systems shall provide for the following:
(1) Accurate. current and complete
disclosure of the financial results of
each Federally-sponsored project or
program in a.ccordance With the report-
ing requirements set forth in S 12.952. lf
a Federal awarding agency requires I:e-.
porting on an accrual basts from a re-.
cipIent that maintains Its records on
other than an accrual basts, the recipi-
ent shall not be required to establish
an accrual accounting system. These
recipients may develop such accrual
341
912.922
data. for their reports on the basis of an
analysis of the documentation on hatld.
(2) Records that identlt,y adequately
the source and application of 1\1nds for
Federally-sponsored activlt1es. These
records- sball contain infonnation' per-
ta.1n1ng to Federal awards. authoriza-
tions, obligatioDs, unobligated bal-
ances, assets, outlays, Income and in-
terest.
(3) Effective control over andac-
countab111ty for all funds. property 'and
other assets. ReCipients shall ade-
quately s'afeguard all such" assets and
assure they are used solely for author-
ized purposes.
(4) Comparison of outlays with budg-
et amounts for each award. Whenever
appropriate; financial Infonnation
should be related to perforrna.Dce and
unit cost da.ta.
(5) Written procedUl.'8s to minimize
tl1e time elapsing between the transter
of fUnds to the recipient from the U.S.
Treasury and the issuance or redem~
tion of checks, warrants or payments
by other Iriees for program purposes
by the reCipient. To the extent that the
provisions of the Cash Management Im-
provement Act (CMIA) (81 U.S.C. 6501
note) govern, payment methods of
State ageIlCies, instrumentalities, and
fiscal a.gent.s shall be consistent with
CMlA Treasury-8tate Agreements. or
the CMIA default procedures oodlfled
at 31 CPR part .205, "Withdrawal of
Cash from the Treasury for Advances
under Federal Grant and Other Pro-
gI'an1s. "
(6) Written procedures for deter-
m1n1ng the reasonableness. allocability
and allowabllity of cOsts in accordance'
with the provts10DS of the appl1ca.ble
Federal cost principles and the terms
and cond.1tions of the awa,rd.
(7) Accounting records. including
cost accoWltlng records, 'that are sup-
ported_by source documentation.
(c) Where the Federal Government
guarantees or insures the repayment of
money borrowed by the recipient, the
Federal awarding agency, at its discre-
tion, may require adequate bonding
and insurance if the bonding and insur-
ance reqUirements of the recipient are
not deemed adequa.te to protect tbe In-
terest of the Federal Government.
(d) The Federal awarding agency may
require adequate fidelity bond coverage
43 CFR SUbIille A 00-1-02 Edillon)
wherf} the recjpi~nt lacks sufficient
coverage to protect the Federal Gov-
ernment's interest.
(e) Where bonds are required in the
situations described above !II 112.921'(c)
and (d). the bonds shall 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."
~ 12.922 Payment.
(a) Payment methods shall minimize
the time elapsing between the transfer
of funds trom the United States Treas-
ury and the' issuance or redemption of
checks, warrants, or payment by other
means by the recipients. Payment
methods of State agencies or instru-
mentaJJtles shall be consistent with
Treasury-State CMIA agreements Qr
default procedures codified at 31 CFR
part 205.
(b) Recipients are to be paid in ad-
vance, provided they malntain or dem-
onstrate the wllUngness to maintain or
demonstrate written procedures that
minimize tbe time elaps1ng between
the tranBfer of fwlds and dJsbursement
by the recipient, and flnanc1al manage-
ment systems that meet the standards
for ftmd control and accountab1l1ty as
establlilhed in 112.921. Cash advances to
a recipient organization sba11 be lim-
ited to the m1nJmum amounts needed
and be timed to be in accordance with
the actual, immedJate cash reqwre-
ments of the recipient organization in
Carrying out the purposes of, the a.p-
proved program or. project. Tbe timmg
aDd amount of cash advances shaJl be
as close as is admln1st.ratively feas:tble
to the actual disbursements by tile re-
cipjen.t Organtza.tJOD for direct program
or project costs and the proporti'onate
share of any allowable indirect costs.
(c) Whenever possible, advances w111
be consolidated to cover anticipated
cash needs for all awards made by the
Federal awarding agency to the rectpi-
ent.
(1) AdVaJJce payment mechanisms in-
clude. but.are not ]jmited to, Treasury
check and electronic funds transfer.
(2) Advance payment mechanisms are
subject to 31 CFR part 205.
342
Ottlce of the Secretory, Interior
(3) Recipients sllall be authorized to'
submit requests for advances and reim-
bursemelits a.t least monthly when
electronic fund transfers are Dot used.
(d) Requests for Treasury check ad-
vance payment shall be submitted on
SF-270. "Request for Advance or Reim-
bursement," or other forms as ma.y be
authorized by OMB. This form 1s not to'
be used when Treasury 'cbeck advance
payments are made to the recJpjent
automatlcaJly through the use ora pre-
determ1ned payment schedule or if pre-
cluded by special Federal awarding
agency instructions for electronic
funds transfer.
(e) Reimbursement is the preferred
method when the requirements in para-
graph (b) of this section cannot be met.
Federal awarding agencies may alsO'
use this method on any construction
agreement, or jf the major port1on of
the construction project is accom-
pUshed through private market financ-
ing or Federal loans. and the Federal
assistance constitutes a minor portion
of the project.
(1) Wben the reimbursement method
is used, the Federal awarding agency
shall make payment w1th1D. 30 days
after receipt of the b:lll1ng. unleSs the
bllilng is improper,
(2) Reciplent8 ~a.ll be authorized to
subm1t a request for reimbursement. at
least monthly when electronic flmds
transfers are not used,
(0 If a rec1pient cannot meet the cr1-
terta. for advance payments and the
Federal awarding agency has. deter-
mined that reimbursement is not fea-
s1ble because the redpient lacks suffi-
dent working capital, the Federal
awarding &g8D:cy may provide cash on a
working capital advance basts. Under
this procedure. the Federal awarding
agency shall advance cash to the re-
cipient to cover its estfmated disburse-
meD.t needs for an _ initial period gen-
erally geared to the awardee's dis-
bursing cycle. Thereafter, the Federal
awarding agency sball reimburse the
recipient for its actual cash disburse-
ments. The working capitaJ advance
method of payment shall not be used
for recipients unwilling or unable to
prOVide timely advances to their sub-
recipient to meet the subrecipient's ac-
tual cash disbursements.
~ 12.922
(g). To the extent available. recipi-
ents sbaJl disburse funds avaJlable trom
repayments to and interest earned on a
revolving fund. program income, re-
bates, refunds, contract settlements,
audit recoveries and interest earned on
such funds before requesting additional
cash payments.
(h) Unless Qtherw1se required by stat-
ute, Federal awarding agendes shall
not withhold payments fo,r proper
charges made by recipients at any t1rn'B
during the project Period unless para-
graph (h)(l) or (b)(2) of this section
apply:
(1) A recipient has fa1led to comply
witb the project objectives. the terms
and conditions of the a,ward, or Federal
reportJng reqp.1rements; or
(2) The rec1p1ent or subreciplent is
delinquent in a debt to the United
States as del1ned in OMB' Circular' A-
129, "Managing Federal Credit Pro-
grams." Under such conditions, the
Federal a.warding agency may. upon
reasonable notJce, inform the recipient
that payment8 shall not be made for
obliga.t1ons iDcurred after a specified
date uDtn the conditions are cOlTected
or the iDdebtedneBB to the FederaJGov_
ernrnent Is liqUidated.
(1) Standards governing the use of..
banks and other institutions as deposi-
tories of funds advanced under awards
are as follows.
(1) E%eept for situat1onsdescr1bed ':In
paragraph (1)(2) of thl. .eetloD, Federal
awarding agenCies shall not requ.ire
separate depository aecount8 for fUnds
provided to a rec1pJent or establish any
ellpblllty requlrements for deposl-
tones for funds .provided to a redpJ811t.
However, recipients must be able to ac-
count for. the receipt, obUgatjoD and
expenditure of .f\1nds.
(2) Advances of Federal funds shall be
deposited and maintained in 1J18ured
accounts'whenever po881ble.
(j) Consistent with the national goal
of expanding Opportunities for women_
owned and minority-owned business en-
terprises, recJpients are encouraged_tQ
use women-oWlled and minor:lt;Y-owned
banks (a bank which is owned at least
50 percent by women or minority group
members). .
(k) Recipients shall maintain ad-
vances of Federal funds in interest
343
~ 12.923
bearing accounts. unless paragraph (k)
(I). (2) or (3) apply:
(1) The recipient receives less than
S12O,OOO in Federal awa.rds per year.
(2) The best reasonably available in-
terest bearing account would not be ex-
pectedto earn Interest in excess of $250
per year on Federal cash balances.
(3) The depository would require an
average or minimum balance 80 Mgh
that it would not be feasible within the
expected Federal and non-Federal cash
resources.
(1) For those entities where eMIA
and its implementing regulations do
not apply, interest earned aD' ,Federal
advances deposited in interest bearing
accounts shall be remitted annually to
Department of Health and Human
Services, Payment Management Sys-
tem, P.O. Box 6021. Rockv11le. MD
20852. Interest amounts up to S250 per
year may be reta1ned by the recipient
for administrative expense. In' keepblg
with Electronic Funds Transfer -I11les..
(31 CFR part 206), blterest should be re-
mitted to the BRS Payment Manage-
ment System throug-h an eleptromc
medium such as the FEDWlRE Deposit
system. Recipients which do not have
this capability should use a check.
State universities and hospitals shall
comply wlth CMIA. as It pertalns to in-
terest. If an 8Dt1~y subject to CMIA.
uses its own funds to pay pre-award
costs for d1scret1onar.y awards without
prior written approval trom the Fed...
erill awarding agenCY'. it waives its
right to recover the interest under
CMIA.
(m) Except as no~d elsewhere In this
subpart, only the following forms shall
be authorized for the recipients in re-
questing advances and re1mburse-
ments. Federal ag8ilo1es shall not re-
quire more than an or1,pnal and two
copies of these foI'DlB.
(1) SF-270. Request for Advance or
Reimbursement. Each Federal award-
ing agency shall adopt the SF-270 as a
standard fonn for all nonconstruction
programs where electronic fands trans-
fer or predetermined advance metllods
are not used. Federal awarding agen-
cies, however, have the option of using
thjs form for construction programs in
lieu of tbe SF-271, "Outlay Report and
Request for Reimbursement for Con-
struction Programs."
43 CFR SUblille A (10- Hl2 Edilion)
(2) SF-271, Outlay Report and Re-
quest for Reimbursement for Construc-
tion Programs. Each Federal awarding
agency shaJ1 a.dopt the SF -271 as the
standard form to be used for requesting
reimbursement for construction pro-
grams. However, a Federal, aWarding
agency may substitute the SF-270
wben the Federal awarding agency de-
termines tlla.t.1t provides adequate in-
formation to meet Federal needs.
i 12.9%3 Cost sharing or matching.
(a) All contributions, inclUding cash
and third party in-kind, shall be ac-
. cepted a8 part of the recipIent's cost
sharIng or match1pg when sucb con..
ttibutioDs meet all of the following cri-
teria:
(1) Are veJ1fiable from tlle recipient's
records.
(2) Are Dot included as contributions
for any other Federally-assisted
project or program.
(3) Are necessary and reasonable for
proper and eff1cient accompUshment of
project or program objectives.
(4) Are allowable under the appUca-
ble cost principles.
(5) Are 'not pe.1d by the Federal Gov....
ernment under another award. except
where authorized by Federal statute to
be ~ for coat Bhartng or matchjng.
(-6) Are provided for in the approved
budget when required by the Federal
award1Dg agency.
(7) Conform to other provisions of
this subpart, as appIJeable.
(b) Unrecovered indirect costs may be
included as part of cost sharlng or
matching only with the prior approval
of the Federal awarding agency.
(c) Values for rec1pient contributions
of services and property shall be estab-
I1sbed in accordance with the appUca-
ble cost pr1nciples. If a Federal award-
ing agency a.uthorizes recipients to do-
nate buildings or land for construction!
facUlties acquIsition projects or ]ODg-
term use, the value of the donated
property for cost sharing or match1ng
shall be the lesser of paragraph (c) (l)
or (2) of thIs section:
(1) The, certified value of the remaJn-
ing life of the property recorded in the
recipient's accounting records at the
time of donation.
344
Office ollhe Secretary. Interior
(2) The current fajr market value.
However, when there 1s suf:f1clent jus-
tification, the Federal awarding agen-
cy may approve the use of the current
faIr market value of the donated prop-
erty. even if it exceeds the certined
value at the time of donation to the
project.
(d) Volunteer services furnished by
professional and technical personnel,
consultants, and other skilled and un-
skj]]ed labor may be counted as cost
Sharing or matching 1f the service 1s an
integral and necessary part of an ap-
proved project or program. Rates for
volunteer services shall be consistent
with those paid for slm:llar work in the
rec1pient's organization. In those in-
stances in which the required skills are
Dot found In the recipient organization,
rates shal) be consistent with those
pajd for simllar work :In the labor mar-
ket In which the ~ecjplent competes for
the kind of services involved. In either
case, paid fringe benefits that are rea-
sonable, allowable, and allocable may
be included in the valuation.
(e) When an employer other than the
recjpjent furnishes the services of an
employee, these services shall be val-
ued at the employee's regular ra.te of
pay (plus an amount' of fringe benefits
that are reasonable, allowa.ble; and al-
_locable, but exclusive of overhead
costs), provided these services s.r& in
the same slPll for -which the employee
Is nonnally paid.
(f) Donated supplies may include
such items as expendable equipment.
omce suppl1es. laboratorysupplles or
workshop and classroom supplies.
Value assessed to donated supplies in-
cluded, in the cost sharing or matchin,
share shall be reasonable and shall not
exceed the fair market value of the
property at the time of the donation.
(g) The method used for determining
cost sha.r1ng or matching for donated
equipment, buildings and land for
which title passes to the recipient may
differ a.cco1"ding to the purpose of the
award. If paragraph (g) (I) or (2) of thIs
section apply:
(1) If the purpose of the award is to
assist the recipient to acquire equip-
ment, buildings, or land, the total
value of the donated property may be
claimed as cost sharing or matching.
g 12.924
(2) If the, purpose of the award is to
suppOrt activities that reqnire the use
of equipment. buJldings or land. nor-
mally only depreciation or use charges
for equipment and buildings may be
made. However, the fUll value of equip-
ment or other capital assets and fair
rental charges for land may be allowed,
provided that the Federal awarding
agency has approved the. charges.
(h) The value of donated property
shall be determined in accordance W1th
the usual accounting policies of the' re-
cipient, with the fOllowing quaunca:-
tions.
(l) The value of donated land and
buildings sball not exceed thefr fair
market vaJue at the time of donation
to the reCipient as established by an
independent appraiser (e.g., certUled
real property appraiser or General
Services Administration representa-
tive) and certified by a responsible' offi-
cial of the recipient.
(2) The value of donated equipment
shall not exceed the fair market. value
of ~quipment of the sa.me age and con-
dition at the time of donation.
(3) Tbe value of donated space shall
not exceed thefa.1r rental value of com-
parable space as. estabUshed by an inde-
pendent appra1aal of comparable space
and faclllties in a privately-owned
building in the same locality.
(4) The value of lOaDed equipment
shall not exceed its fair rental value.
(:I) The following requirements par-
tain to the recJp:lent's supporting
records for in-kind 'contributions from
thIrd partjes.
(1) Volunteer serv1~s shall be docu-
mented aDd, to the extent feasible, 8UP-
ported by the same methods used by
. the recJp1ent for its own employees.
(2) The basis for determining the
valuation for personal service, mate-
rial, equipment. buUdJngs and land
shall be documented.
6 12.924 Program income.
(a) Federal awardingagencJes shall
apply the standards set fortJ:l in this
section in requirlng recipient organ:fza....
tions to account for program income
related to projects financed in whole or
in pa.rt wJ:th Federal funds.
(b) Excep"t 3;S prOvided in paragraph
(h) of this section, program income.
earned during the project period shall
345
S 12.925
be retaJned by the recipient and. in ac-
cordance with Federal awarding agency
regulations or the terms and contti-
tlons of the award, shall be used In ODe
or more of the following ways:
(1) Added to 1U.nds committed to the
project or program by the Federal
awarding agtmcy and recipient and
used to. further eligible project or pro-
gram objectives;
(2) Used to financetbe non-Federal
sbare of the project or program; or
(3) Deducted f.rom the total project or
program' allowable cost In determining
the net allowable costs upon which the
Federal share of costs is based.
(0) When an agency authorizes the
disposition of program income as de-
scribed in paragraph (b)(l) or (b)(2) of
this section. program income In excess
of any limits st1pulated shall be used 1n
accordance with pa.ragraph (b)(3) of
this sect1oD~
(d) If the Federal awardJng agency
does not spec1fy In its regulatJoDs or
the tenns and conditJons of the award
how program income 1s to be used,
paragraph (b)(3) of thJo oection shal1
apply automatically to all projects or
programs except research. For awards
that suPPOrt research. paragraph (b)(l)
of this section shall apply .automati-
cally unless the awarding agency Indi-
cates 1n the terms and conditioJls an-
other aJtenlative on the award or the
recipient Is subject to special award
conditions. as indicated in 113.914.
(6). Un.1essFederal .awarding agency
regulations or the terms and condi_
tions of the a.ward provide otherwise,
recipients shall have no obligation. to
the Federal Govenune.nt regarding pro-
gram iDcome earned, a.1'ter the end of
the project period. - 1
(1) If authorized by Federal awarding
agency regulations or the tenns and
conditions of the award, costs iDcldent
to the generation oC program income
may be deducted Crom graBs inoome to
determine program Income, provided
these costs have not been charged to
the award.
(g) Proceeds from the sale of property
shall be handled in accordance with the
requirements of the Property Stand-
ards (See iU2.930 through 12.937).
(b) Unless Federal awarding agency
regulations or the terms and condi-
tions of the award provide otherwise,
43 CFR Sublille A (IlH-02 EdIIIon)
recipjents shall have no obligation to
the Federal Government with respect
to program income earned from l1cense
fees and royalties for copyrighted, ma-
terial, patents, patent appUcatlons.
trademarks, and inventions produced
under an award. However, Patent and
Trademark Amendments (35 U.S.C. 18)
apply to invent-ions made under an ex-
perimental, developmental, or research
. award.
i 12.925 Revision 01 budget aDd pro-
gram plaD&
(a) The budget plan 1s the flnancJal
expressjon of tbe project or program as
a.pproved during the award process. It
may include either the Federal and
non-Federal share. or only the Feder.al
share, depending upon Federal award-
ing agency requIrements. It shall be re-
lated to performance for program eval-
uatJon purposes whenever appropriate.
(b) Recipients are required to report
deviations from budget and progTam
plans, and request pr:Ior approvals for
budget and program plan revisions, In
a.ccordance with th18 section.
(c) For noncoDStruction awards, re-
Cipients shall request- pr:Ior approvals
from Federal a.wa.rd1ng ag.8DcieB Cor one
or more of the following program or
budget related reasons:
(1) ~e in' the scope or the objec-
tive of the project or progra.m (even :It
there is no aeaoc1a.ted budpt renB10n
requiring prior wrIttsn approval).
(2) Change in a key psrson __lIled
In the appllca.t1on or award document.
(3) The absei1ce for more than three
months. or a 25 percent reduction in
time devoted to the project, by the ap-
proved project director or pr:Incipalin-
vestigator.
(4) The need Cor additional Federal
ftmdlng.
(5) The transfer of amounts budgeted
for indirect costs to. absorb increases in
direct costs, or vice versa', iC approval
js required by the Federal awarding
agency.
(6) The inclusion, unless waived by
the Federal awarding agency, of CGSts
that require prior approval in accord-
ance w:Ith OMB Circular A-21, "Cost
Principles for Institutions of Higher
Education"," OMB Circular A-I22, "Cost
Principles for Non-Profit Organjza-
tions," or 45 CFR part 74, appendix E,
346
Office of the Secretory. Interior
"PIincfples for Determin1ng Costs Ap-
plicable to Research and Development
under Grants and Contracts with Hos-
pitals." or 48 ern part 31. "Contract
Cost Principles and Procedures," as ap-
plicable.
(7) The transfer of funds allotted for
training allowances (direct pa.yment to
trainees) to other categones of ex-
pense.
(8) Unless described in the applica-
tion and fuDded in the approved award.
the sUbaward., transfer or contract1ng
out of any work UDder an award. This
provision does not apply to the pur-
chase of .supplies, material, equipment
or general support services.
(d) No other prior approval require-
ments for specif1:c items may ~ im-
posed unless a deviation has been ap-
proved by OMB.
(e) Except for requirements listed in
paragraph (c)(1) and (c)(4) of this see-
tJon. Federal awarding agencies are au-
thorized, at their option, to waJve cost-
rela.ted and admInistrative prior writ-
ten approvals required by this subpart
and OMB Circulars A-21 and A-122.
SuCh wa.1vers . may include
authorizating recipients to do anyone
or more of the followmg:
(1) Incur pre-aWard. costs 90 calendar
days_ prior to award or more than 90
calendar days with the prior approval
of the Federal awarding agency. All
pre..award, costs are incurred a.t the re-
cip1ent's risk (1.e., the Federal aWard-
1ng agency 1s under DO ,obligation to re';'
irnburse such costa it for &ny reason
the recipient does not receive &n award.
or if the award is less than anticipated
and inadequate to cover such costs).
(2) Initiate a one-time ertens:1.on of
the expiration date of the award of up
to 12 months unless one or more of the
fo)]ow:l:ng condJtions apply. For one-
time extensJons. the recipient must no-
tHy the Federal awarding agency in
writing, with the supporting reasoDs
and revised expiration date. at least 10
days before the expiration date speci-
fied in the award. This one-time exten-
sion may not be exercised merely for
the purpose of uSing unobligated bal-
ances. The conditions that prevent
issuance of a one-time extension are:
(1) The terms and conditions of award
prohibit the extension;
912.925
(H) The extension requires additional
FedEli"al funds; or
(11i) The extension involves any
change in the approved objectives or
"scope of the project.
(3) Carry forward unobligated bal-
ances to Bubsequ~t funding- periods.
(4) For awards tha.t support research.
unless the Federal aWarding agency
provides' otherwise in ~e award or In
the agency's regulations, the prior ap-
proval requirements described 1n para-
graph (e)(1) through (3) of this section
are automatically waived (i.e., rec:l:pi-
ents need not obta.J:n such prior approv-
als) unless one of the .conditions in-
cluded in paragraph (e)(2) appl:ies..
(0 The Federal aWarding agency
may, at its option. restrict the transfer
of funds among direct cost categories
or progTaJDS. ,functions and activities
for awards in which the Federal share
of the project exceeds $100,000 and' the
cumulative amount ,of the transfer ex-
ceeds or is expected to exceed 10 per-
cent of the total budget as last ap-
proved by the Federal aWa.rdJng agen-
cy. No Federal awarding agency shall
permit a transfer that would cause any
Federal a.ppropriatlonor patt thereof
to be used for purposes other than
those consistent with the onginal in-
tent of the a.ppropriation.
(g) No other changes to nonOODStruc-
tiOD budgets, except fOr the Changes de-
scribed In paragraph (j) or this section.
require prior approval..
(h) For construction awards, recipi-
ente shall request prior WI1tten ap-
proval promptly trom Federal aw..,.dlng
agencies for budget revisions whenever
paragraph (h) (1), (2). or (3) of thi. .ec-
tion apply:
(1) the revision results from changes
:fD the scope or the objective of tbe
project or program;
(2) additional Federal funds are need-
ed to complete the project; or
(3) the recipient requests a revision
that involves specifiC 'costs for which
prior written approval requirements
may be imposed under il2.927.
(1) No other prior approval require-
ments for specific items will be im-
posed un]e~s OMB approves a deviation.
(j) When a Federal awarding agency
makes an award that provides support
347
S 12.926
for both construction and nonCoDstruc-
tiOD work, the Federal awarding agen-
cy may require the recipient to request
prior approval before makIng any fund
or budget transfers between the two
types of work supported.
(k) For both construction and nOD-
constructJon awards, Federal awarding
agencies shall requ're recJplents.to no-
tify the Federal aWarding agency in
writing promptly whenever the amount
of Federal authorized funds 1s expected
to exceed the needs of tbe recipient for
the project period by more than $5,000
or five percent of the Federal award,
whichever is greater. This nottf1catJon
sllall not be r.eQu1red if an application
for addlt1onalfund1ng Is submitted for
a continuation award.
(1) When requesting approval for
budget rev1B1ons. recipients shall use
the budget fonns that were used. In the
applicatJ.OD' unless the Federal award-
ing agency indicates that a letter of re-
quest sl1ffJces.
(m) Within 30 calendar days from the
date at receipt of the.request for budg-
et revisions, the Federal awa.rd1ng
agencies shall review the request and
notifY the recipient whether the budget
revisions have been a.pproved. If the re-
vision Isst1ll under considera.tion at
the end of 30 calendar days.. the Federal
awarding agency shall inform the re-
cipient in writing of the date when the
recipient may expect the demmon.
Enlllylncvn1ngeoats
43 CFR Sublille A 00-1-02 Ecflllon)
~ 12.928 Non-Federal audits.
(a) ltec1plents and subrecipients tllat
are institutions of higher education or
other non-profit organizations
(lncludlng hospitals) shall be subject to
the audit requirements contained in
the Single Audit Act Amendments of
1996 (31 U.S.C. 7501-7507) and revised
OMB Circula.r A-133, "Audits of States,
Local Governments. a.nd Non-Profit Or-
ganizations. ..
(b) State and local governments shall
be subject to the audit requirements
contaJned in the Single Audit Act
Amendments of 1996 (31 U.S.C. 7501-
7507) and revised OMB Circular A-l33,
"Audits of States. Local Governments.
and Non-Pront Organiza;tioDs."
(c) For-profit hospitals not covered
by the audit provisions of revised OMB
Circular A-l33 shall be subject to the
audit requirements of the Federal
awarding agencies.
[60 FR 1'l23B. Apr. 5, 1995. as amended at 62
FR 45939, 45945. AnI". 29,19971
t 1%.927 Allowable costs~
Federal awarding agencies shall de-
termine allowable costs in accordance
with the type of entity inCurring the
costs. u81ng the appropriate d1rective
from the table below.
--
StIlle, Iocef, 01' FedenIy ~.,.....
T_
~organlzatlon.__.._._.._
Inslllullon of HIghw EducldIon _....__.._....
-...-..-.-..--...-...--.................--.
OMS Qt:u!lIr A-fIT. Cost ~ for s.. 8nd loCIII 00.6nnantl:.
OMS CIrculW A-122, COlt Pffnc::fptM for Non-p/oII.Orgar\Iz8IIons MIl 43 em
12.827(b).
OMBClrQlIwAo--21.eo.t~torEduc:8lDnlllIrlllllwllona.
45 em pM 74, appendk Eo PtIncIpIeIi tor ~ CollI ~ to R&-
-.t:h.Md Da .~,.u_..l.Jndet.Gmnll MIl Corlndi wIh HoIpIiIlt.
.. CFR J*:l 31, .Connd: ~ _ Proc::eduNs or una-. COllI aGeOUnllng
~...at CDm& will cost prfndptM aocepIabIe 10 1M FecJend-veney.
CommlKdaf orgenlmtlon or non-pn:lll or.
~1Ion bled In AltEhment C of
OMS Ck'wIar ,1,-122.
t 12.928 Period of avaUabi1ity of flmds..
Where a funding period is specified, a
recipient may charge to the grant only
allowable costs reSUlting :from obl1ga-
tions incurred during the funding pe-
riod and any pre-award costs author-
ized by the Federal awarding agency.
Property. Standards
f 12.930 Purpose of properly stand-
ard..
SectioDs 12.931 through 12.931 set
forth unifonn standards governing
management and disposition of prop-
erty furnished by the Federal Govern-
ment whose cost was charged to a
project supported by a Federal award.
348
OffIce ollhe Secrelary, Interlor
Federal awarding agencies sha.ll re-
quire recipients to observe these staDd~
ards under awards and shall not impose
additional requirements, UDless speclft-
cally required by Federal statute. The
recipient may use its. own property
management standards and procedures
provided it observes the provisions of
~il2.931 through 12.937.
f 12.931 Insurance coverage.
Reclpj1eDts shall.. at a. minimum. pro-
vide the equivalent insurance coverage
for real property and equipment ac-
quired with Federal funds as provided
to property owned by tlle recipient.
Feder~ly-owned property Deed not be
insured unleSs required by tbe terms
and conditions of the award.
~ 12.932 Real property.
Each Federal awarding agency shall
prescribe requirements for recipients
concern!Dg the use and disposition of
real property acquired in whole or in
part under awards. Unless otherwise
provided by statute, such require-
ments, at a minimum. shall contain
the follOwing.
(a) Title to real property shall vest in
the recJpient subject to the condition
that the recipient shall use $e real
property for the authorized purpose of
the project as long as it 18 Deed~ and
shall not encumber the property with-
out approval of,the awarding' agency.
(b) The recIpient shall obtain written
approval by the Federal awarding agen-
cy for the use of real property in other
Federally-sponsored projects when the
recipient detennmes that the property
is no longer needed for the purpose of
the original project. Use in other
projects shall be U:mited to those under
Federally-sponsored projects (i~e.,
awards) or programs that have pur~
poses consistent with those authorized
for support by the Department of the
Intertor.
(c) When the real property is no
longer needed as provided in para-
graphs (a) and (b) of this section, the
recipient shall request disposition in-
structions from the Federal awarding
agency or its successor. The Federal
awarding agency will give one or more
of the follOwing disposition instruc-
tions:
!j12,933
(1) The recipient may be permitted to
ratai'n title wi~out further Obligation
to the Federal Government after it.
compensates the Federal Government
for that peroeJitage of the current fair
market value of the property attrib-
utable to the Federa.l pa.rt1cJpation in
the project.
(2) The recipient may be directed to
sell the property under guidelines pro-
vided by the Federal awarding agency"
and pay the Federal Government." for
that percentage of the current lair
market value of the property attrn~
utable to the Federal pa.rt1cipation in
the project (after deducting a.ctual and
reasonable sell1ng and fix-up expenses.
if any, from the saJes proceeds). When
the recipient is authoI1zed or required
to sell the property, proper sales proce-
dures' shall be established that provide
for competition to "the extent prac-
ticable and result in' the b1gbest pos-
sible return.
(3) The recipient may be directed to
tra:nsfer title to the property to the
Federal Government or to an eligible
third party prov1ded that, in such
cases, the recipient shall be entitled to
compensat1on for 1ts attributable per-
centage of the current fair market
value of the property.
112.933 Federally owned aDd exempt
pro~.
(a) Federallll-owned propeTtlf. (1) TItle
to "Federally-owned property remains
vested in the Federal Government. Re-
cipients "shall submit annually totbe
Federal awarding agency an inventory
listing of Federally-owned property in
their custOdy. Upon c.omplet1on of the
award or when the property is no
longer needed. the recipient shall re-
port the property to the Federal award-
ing agency forfnrther utilization.
(2) If the Federal awarding agency
has no further need for the property , it
shall be declared exoess and reported to
the General Services Administration,
unless the Federal awarding agency
has statutory authority to dispose of
the property by alternative methods
(e.g.. the authority provided by the
Federal Technology Transfer Act (]5
V.S.C. 3710(1)) to donate research equip-
ment to educational and non-profit or-
ganizations in accordance with E.O.
12821. "Improving Mathematics and
349
~ 12.934
Science Education in Support of the
National Education Goals. ") Appro-
priate instructions shall be issued to
the recipient by the Federal awarding
agency.
(b) Exempt property. Exempt property.
When statutory authority exists, the
Federal awarding agency has the op-
tioD to vest title to property acquired
with Federal funds In the recipient
without 1\1rtber obligation to the Fed-
eral Government and under conditions '
the Fadera. awarding agency cODsiders
appropriate. Such property Is ~"exempt
property." Should a Federal awarding
agency not establish conditions, title
to exempt property upon a.cquisiUoil
sha.ll vest in the recipient without fUr-
ther obligation to -the Federal Govern-
ment.
~ 12.934 Equipmeut..
Ca) Title to equipment acquired by a
recipient with Federal funds sliall vest
in the recipient, SUbject to condit1ons
of this section.
(b) The recipient shall not use equ1p-
ment acqu1red with Federal 1\1nd8 to
prOvide services to Don-Federal outsJde
orgaDizat1oDS for a fee that 1s less thaD
private companies charge for equ1va.-
lent services, unless spec1fically au-
thorized by Federal statute, for &8 long
as the Federal Government retains an
interest 1n the equipment.
(c) The recJplent shall use the equip-
ment in the project or program for
wbich it was acquired as long as need-
ed, whether or Dot the project or pro-
gram cont1nues to be 8UPl'Orted by Fed-
eral funds, and shall not encumber the
property w1thout approval of the Fed-
eral awarding agency. When no lODffer
needed tor the origbia) project or pro-
gram, the recJplent shall USe the equip-
ment 1n ,connection with :Its other Fed-
erally-sponsored _ activIties, in the fo)-
lowing order of.pr1oI1ty:
(1) Activities sponsored by the Fed-
eral awarding a.gency, then
(2) Act1vit1es sponsored by other Fed-
eral agencies.
Cd) During the time that equipment
is used on the project Or program for
which it was acquired, the recipient
shall make it available for use on other
projects or programs if such other use
wDl not interfere-'with the work on the
project or program for which the equip--
43 CFR Sub"". A (I ~)-02 Edifton)
mi:mt .. was originally acquired_ First
preference for such other use sball be
given to other projects or programs
sponsored by the Federal awarding
agency that nnanced the equJpnient;
second preference shall be given to
projects or programs sponsored by
other Federal agenroes. If the eqUip-
ment 1s owned by the Federal Govern-
ment, use on other a.ct1v1tjes not spon-
. sored by the Federal Government shall
be permissJble if authorized by the
Federal awarding agency. User charges
sball ~ treated as program income.
(e) When acqu1r1ng replacement
equipment, the recipient may use the
equipment to be replaced as trade-in or
sell the equipment and use the pro-
ceeds to offset the costs of the replace-
ment equipment subject to the ap-
proval of the Federal awa.rd1ng agency.
(0 The recipient's property manage-
ment standards tor equipment acquired
with Federal rands and Federally-
owned equipment shall include all of
the following.
(1) Equlpment records sha.ll be malD-
t.a1ned accurately and shall include the
following lnfonnation.
(1) A description of the equipment.
(1:1) Manufacturer's s,mal number,
model number, Federal stock num'ber.
national stock number, or other identi-
t1cat1on Dumber.
(111) Souroe of the equIpment, includ-
ing the award number.
(iv) Whether title vests in the recJpi-
ent or the Federal Government.
(v) AcquJsition date (or date re-
ceived, if the equipment was furnished
by the Federal Government) and cost.
(vi) Inform.tioD from which ODe can
e&lculate the percentl\ce DC Feder8.l
participa.tiOD in the cost of, the eqUip....
ment (not applicable to equipment fur-
nished by the Federal Government).
(vJi) Location and concllt1on of the
equipment aDd the date the fnfonna-
tion was reported.
(vJU) Unit acquisitJon cost.
(1x) Ultimate disposition data, in-
Cluding date of disposal and sales price
or the method used to determine GUr-
rent fair market value where a recipi-
ent compensates the Federal award1ng
agency for_its share.
(2) Equipment owned by the Federal
Government shall be identified to indi-
cate Federal ownership.
350
.
,
OIIice of the Secretory, Interior
(3) A pbysJcallnventory of equipment
shall be taken and the results rec-
onciled with the equipment records at
lea.st once every two years. Any dif-
ferences between qua.nt1ties deter-
mined by the physical inspection and
those shown in the accounting records
shall be investigated to determine the
causes of the difference. The recipient
shall, in connection" with the inven-
tory, verifY the exJstence. current utl-
.11zation, and continued need for the
equipment.
(4) A control system shall be in effect
to insure adequate safeguards to pre-
vent loss. damage, ortbeft of the
equipment. Any loss. damage, or the1t
of equipment shall beinvestjgated and
fully documented; if the equipment was
owned by the Federal Government. tbe
recipient shall promptly not1fy the
Federal awardJng agency.
(5) Adequate maintenance procedures
shall be I,mplemented to keep the
eq,ulprnent :in good conditioD.
(6) Where the recjp1ent Is authorized
or required to sell the equipment~ pro~
er sales procedures shall be established
which provide for competition to the
extent practicable and' resUlt in the
highest possible return.
(g) Wben the recipient no longer
needs the equipment" the equipment
may be uud for other activities in a.c-
coroanee With the follOWing standards.
For equi~eJ;lt 'With a cunent per unit
fair market value of $5.000 or more, the
recipient may retain the equipment for
other uses provided that compensat1on
is made to the original Federal award-
ing - agen,cy or its Buccessor. The
amount of compensation shall be com-
puted by applying the perceDtage of
Federal participation'in the cost of tbe
original project or program to the cur-
rent fair market value of the equip-
ment. If the recipient has no need, for
the equipment, the recipient ~hall re-
quest disposition instructions from the
Federal aWarding agency. The Federal
a warding agency shall determine
wbether the equipment ca..n be used to
meet the agency's requirements. If no
requirement exists within that agency.
the avaJlabiUty of the equipment shaJl
be reported to the General Services Ad-
ministration by the Federal awarding
agency to determine whether a require-
ment for the equipment exists in other
~ 12.934
Federal agencies. The Federal award-
ing '~gency shall issue instructions to
the recipient no later than 120 calendar
days after the recipient's request and
the following procedures shall govern:
(1) If so Instructed or if dispositIon
instructioDS are not issued. withJn 120
calendar days a.fter the reciPient's re-
quest. the reciplent shall sell. the
equipment and reimburse- the Federal
a. warding agency an amount computed
by applying to the sales proceeds the
percentage of Federal participatJon in
the cost of the original project or pro-
gram. However, the recipient shall be
permitted to deduct and retaJ.n from
the Federal share ~ or ten percent of
the proceeds. whichever is less, for the
recipient's selling and handling ex-
penses.
,(2) If the recipient is instructed to
ship the equipment elsewhere, the re-
cipient sha:ll be reimbursed bY,the Fed-
eral Government by an amount which
is computed byapplytng-the percent-
age of the rec1pient's participation in
the eost of the oI1.g1nalproject or pr0-
gram to the CWTeDt fair market value
of the equipment, plus any reasonable
sh1pptng or interim storage coSts in-
curred.
(3) If the recipient is -instructed to
otherwise dispose of the equJpment. the
recipient will be reImbursed by the
Federal awarding agebcy for such costs
Incurred In lte dlspoeItlon.
(h) The Federal awarding agency may
reserve the right to - transfer the title
to the Federal Government or to 'a
th1rd part;y' named by the Federal Gov-
ernJD8Xlt when the third party is other~
wise eligible under ex1st1ng statutes.
The transfer Shall be Bllbject to the fol-
lowing standards.
(I) The equipment shall be appro-
priately identJOed in 'the award or oth-
erwise m'ade known to the recipient- in
writing.
(2) Tbe Federal awardipg agency
shall issue disposition instructions
within 120 caJendar days after receipt
of a final inventory. The nna) inVeD.-:.
tory shall list a.ll eqUipment acquired
with Federal funds_ and Federally-
owned equipment. If the Federal
awarding agency fails to issue disposi-
tion instructions within the 120-cal-
endar-day period, the recipient shall
351
S 12.935
apply the standards of this section, as
appropriate.
(3) When the Federal awarding agen-
cy exercises ita rlght to take title. the
equipment shall be subject to the pro-
visions for Federally-owned equipment.
f 1lL93li Supplles aDd other _d-
able property.
(a) Title to supplies. and other ex-
pendable property shall vest In t:Qe re-
cipient upon acquls1tloJt~ If there 18 a
residua] lnventoryof unused supplies
exceeding $5.000 1n total aggregate
value upon termination or completion
of the project or program and the sup-
pUes are Dot needed for &D,Y Qther Fed-
eraJ)y~spoDsored project or program.
the recipient shall retain the supplies
for use on non.FederaJ sponsored ac-
tivities or sell them, but shall. in ei-
ther case, compenSate the Federal Gov-
ernment for its 'Share. The amount of
compensation shall be comput.edln the
same manner as for equipment.
(b) The reciPJ,ent ~ Dot use sup-
plies acquired witbFederal flmds to
pronde servICes to_ non-Federal outside
organizations for a fee that 1s less than
private companies charge for equiva-
lent serv1.ces, u,nless apecjftcally a.u-
thor:lzed by Federal statute as long as
the Federal Government reta:lns an in-
terest in the Buppl1e8~
f 12.986 IntaDlIible pI~...,. ty.
(a) The recipient may copyright a.ny
work that 1s subject, to copyrlgbt and
was developed, or for which ownership
was purchased, under an a.ward~ The
Federa.! awa.rd1ng &gency(les) reserves
a royalty-free, nonuclusJ.ve and 1J'rev-
ocable right to reproduce. publlsh, or
otherwise use the work for Federal pur-
poses, and to authorize others to do so.
(b) ReCipients are subjeCt to appl:lca-
ble regulations governing patents and
inventions, includ1ng government-wide
regulations issued by the Department
of Commerce at 37 CFR part 401.
"Rights - to Inventions Made by Non-
profit OrganizatIons and Sma]] Bus:l-
ness Firms Under Government Grants.
Contracts and Cooperative Agree-
ments."
(c) The Federal Government has the
right to:
43 CFR Sublille A (10- H)2 Edition)
(1) pbtain, reprodu~e, publiSh or oth-
erwise use the data first produced
under an a.ward; and
(2) Authorize others to receive, repro-
duce, publish, or otherwise use such
data for Federal purposes.
(d)(l) In addition. In response to a
Freedom of Information, Act (FOIA) re-
quest for resea.rcb data relating to pub-
lished research 11ndIngs produced under
a.n awa.rd that were used by the Federal
Government iIi developing an agency
actIon that has the force and effect of
law. the Federal awa.rding a.gency shall
request, and the recipient shall pro-
vide, within a reasonable time. the re-
search data so that they Can be made
available to, the publlc through the pro-
cedures established under the FOIA. If
the Federa.l aWa.rd1Dg agency obtains
the research data solely in response to
a FOIA request, the agency may charge
the requester a reasonable fee equaling
the full incremental cost of obtaJDing
the research data. This lee should re-
flect -costs incurred by the agency, the
recipient,and appUcable subrecIpients.
This fee is 'in addition to any fees the
agency may assess UDder the FOIA (5
D.S.C.552(a)(4)(A)).
(2) Tbe following definItions apply
for purposes of this paragraph (d):
(1) Research data 18 de11:oed as the re-
corded tactual material commonly ac-
oepted 1D the Bcl.ent1ftc comm11D1ty as
necessary to vaUdate reaearch ftnd1ngs..
but not aay of the follow1ng~ prel1m1-
nary analyses, drafts oC scIentiftc pa-
pers, P]aIlS for fnture resea.tch, peer re-
views. or communJcatlons with col-
leagues. This "recorded" material ex-
cludes pl1yelca1 oblecte (e.g.. laboratory
samples). Research data also do not in-
clude:
(A) Trade secrets, commerdal infor-
mation. materlals necessary to be held
conf1dentJal by a researcher until they
are pubUshed,or simllar :Information
which fs protected under law; and
(B) Personnel and medicaJ informa-
tion and similar information the dis-
closure of wbJch would constitute a
clearly unwarranted invasion of per-
sonal privacy, sucb as information that
could be used to identify a particular
person in a research study.
(i1) Published is defined as either
when:
352
'.
.
Office of the Secretory. Interior
(A) Research findings are published
in a peer-reviewed scientific or tech-
nical journal; or
(B) A Federal agency publicly and of-
ficially cites the research findings 1D
support of aD agency action tha.t has
tbe force and effect of law.
(:111) Used by the Federal Government in
developing an agency action that has the
force and effect of law Is defined as when
an agency pUblicly &J).d officially cites
tbe research ~findlng8. in support of an
agency action that has the force and
effect of law.
(8) TItle to intangible property and
debt instruments acquired under an
award or suba.ward. vests upon acql1isi-
tion in the recipient. The recipient
shall use that property for the origi-
nally-authorized purpose; and the re-
cipient shall not encumber the prop-
erty without approval of the Federal
awarding agency. Wl;len no lODger need-
ed for the Originally a.uthorized pur-
pose, dispositlon of the inta.ng1ble prop-
erty shall occur in accordance with the
provisIons of i 12.934(g).
[63 FR 1:n88, Mar. 12, 1998, as amended at 65
FR 14407. ]44]8, Mar. IS, 2000]
i 12.937 Properly trust relationship.
Real property, equipment, intangible
property and debt ill$trnments tha.t are
a.cquired or improved with Federal
funds shall be held In trust by the re-
cipient as trustee for the benef1c1arles
of the project or program under which
the property was acquired or itnproved.
Agen~es ma.y require recipients to
record Hens or other appropriate no-
Uces of record to' lnd1cate that per-.
sona} or real property has been. ac-
quired or Improved with Federal fonds
and that use and d1spos1tloD cond1t1oDa
apply to the property.
Procurement Standards
A 12.940 Purpose of procurement.
standards.
Sections 12.941 through 12.948 set
forth standards for use by rec1pients 1n
establishing procedures for the pro-
curement of suppHes a.nd other expend-
able property, equipment, real property
and other services with Federal funds.
These standards are furnished to en-
sure that such materials and services
are obtained in an effective manner
!i 12.942
and in compliance with the prOVisions
of aIfpl1cable Federal statutes and ex-
ecutive orders. No additional procure-
ment standards or requirement8 shall
be :Imposed by the Federal awarding
agencies upon recipients. unless' spe-
cifically required by Federal stAtute or
executive order or approved by OMB.
112.941 Recipient responsibilities.
The standards contained in this sec-
tion do Dot rel.1eve. the reo1plent of the
contractp.al responsibilities arising
under its contract(s). The recipient is
the respons1ble authority, without re-
course to the Federal awarding agency,
regarding-the settlement and satisfac-
tionof all contractual and administra-
tive i~l,1eB &rising out of procuremeilts
BDtered into in support of ~ award or
other agreement. This. includes dis-
putes, claims, protests of award, source
evaluation or other matters of a con-
tractual nature. Matters conce1-nlng
violation of statute are to be referred
to BUch Federal. State or local author-
ity as may have proper jurlsdtct1on.
112..942 Codes of eoaduct..
The recipient shall maintain written
standards of oonduct governing the
perfonnance of its employees engaged
in the award an!! admtnJstration of
contracts. No emPloyee. otncer, or
agent shall pa.rtjcipate 1D the selection.
award: or adm1n1stration of a contract
eupported by Federal funds If .a real or
apparent conflict of interest would be
involved. Such a con.fl1ct would mse
wbe~ the employee, oMcer, or agent,
any member of his or her immediate
family, bis or her partner. or an orga-
nization which employs or is about to
employ any of. the parties indicated
herein, has a tlnancJal or other interest
in the finn selected for an award. The
omeers. employees, and agents of the
reoipient shall neither sol1cJt nor ac-
cept gTatuities. favors, or anything of
monetary value from contractors, or
parties to subagreements. However. re-
cipients ma.y set standards for. situa":
tions in whJch the f1nancialinterest is
Dot substantial or the gift is an unso-
licited item of nominal value. Tbe
standards of conduct shan provide for
disciplinary actions to be applied for
353
912.943
violations of such standards by offi-
cers, employees, or agents of the re-
cipient.
~ 12.948", Competition.
All' procurement transactions shall
be conducted in a ma.nner to provide,
to the maximum extent practical. open
and free competitioD. The recipient
shall be alert to' organizational con-
flicts of interest as well as noncompeti-
tive practices among contractors tha.t
may restrict or elim1nate competJtion
or otherwise restrain trade. In order to
ensure objective contractor perform-
ance and eliminate unfair compet1tJve
advantage. contractors that develop or
draft sp&cincat1ons." requirements,
statements of work. invitations for
bids andlor requests for proposals shall
be excluded from eo:mpetfng for such
procurements. A wards shall be made to
the bidder or offeror'whose bids or offer
Is responsive to the solicitation' and is
most advantageous to the recipient.
price, qUallty and other factors consjd-
ered. Solicitations shall clearly . set
forth all requirements that the bidder
or offeror shall f\1lnn 1n order Cor the
bid Qr offer to be evaluated by the re-
cipient. Any and all 'bIds or offers may
be rejected when it is in the recipient's
interest to do so.
112.944 Procurement proeedures.
(a) All recIpients shall 08tabllsh writ-
ten procuremeDt procedures. These
Procedures shall provide. at a m1n-
imum. that:
(1) Recipients avoid purcbasing UD-
necessary items.
(2) Where appropriate, an analysis is
made of lease and,pu.rchase alter-
natives to detennine" which would be
the most economical and pract1~ pro-
curement for the Federal Government.
=d .
(3) Solicitations for goods and serv-
ices provide for all of the following:
(i) A clear and accurate descriptJon
of the technical requirements for the
material, product or service to be pro-
cured. In competitive procurements.
such a description shall not contain
features which unduly restrict com-
petition.
(ii) Requirements which the bidderl
offeror must fuln]) and all other fac-
43 CFR Sublille A 00-1-02 Edition)
tors to be used in evaluating bids or
propOsals.
(111) A description, whenever prac-
ticable, of tech.Dical requirements in
terms of functions to be perlormed. or
perfonnance required, including the
range of acceptable cha.racteristicB or
minimum acceptable standards.
(Iv) Tbe speCific features of "brand
name or equal" descriptions that bid-
ders are required to meet when such
items are included in the solicitation.
(v) Tbe acceptance. to the extent
practjcable and economically feasible,
of products and services dimensioned in
the metJ1c system of mea.surement.
(vi) Preference. to the extent prac-
ticable IUId economically feasible, for
prodUCts and services that conserve
natural resources and protect the envi-
ronment and are energy emcient.
(b) Po8JtJve efforts shall be made by
recipients to uSe small businesses, mi-
noritY...owned finns, and women's busi-
ness enteI])l'ises, whenever possible.
Recipients of Federal awards shaH take
all of the fOllowing steps to further
tbl.g~.
(1) Ensure that small businesses, mi-
nority-owned flnns. and women's busi-
ness enterprises are used to the ruHest
extent practicable.
(2) M.ake information on forthcoming
opportunities available and arra.nge
time frames for Purchases and con-
tracts to e.ncoUTal'e and fa.ctlitate par-
ticipation by small bustneBS6S. minor-
ity-ownecJ flnns. and women)s business
enterprlses.
(3) CODsider in the contract process
whether ftrms cbmpetJnf tor larger
contracts intend to subcontract with
small bus1Desses, mtnorlty-owned
finns. and women's business enter-
prises.
(4) Encourage contracting with con-
sortiums of small businesses, mmority-
owned flnns and women's business en-
terprises when a contract is too large
for one of these firms to handle individ-
ually.
(5) Use the serviceS and assistance, as
appropriate, of such organjzations- as
tl:1e Small Business Administration and
tl:1e Department of Commerce's Mjnor-
jty Business Development Agency in
the solicitation and utilization of
small businesses, minority-owned finns
and women's business enterprises.
354
\
OfIIce of the Secretory, Interior
(0) The type of procuring instruments
used (e.g., fixed price contracts, cost
reimbursable contracts. purcbase or-
ders. and incentive contracts) shall be
detenn1ned. by the recipient but shaJl
be appropria'te for the particula.r pro...
curement and for promoting the best
interest of the program or project in-
volved. The "cost-plus--a-pe.rcentage-of-
cost" or "percentage of construction
cost" met.hods of contracting shall not
be used.
(d) Contracts shall be made only with
responsible contractors who possess
the potential ability to perform suc-
cessfully under the terms and condi-
tions of the proposed procurement.
Consideration shall be given to sucb
matters as contractor integrity. record
of past performance, financial and
technical resources or accesslbUtty to
other necessary resources. In certain
circumstances. Contracts with certain
parties $.I'8 restricted by agencl~s' im-
plementation of E.O.8 12549 and 12689,
"Debarment and Suspenslon." See 43
OFR part 12.
(e) Redplents shall, on request. roue
available for the Federal awarCUng
agency, pre-award review of procure-
ment dOCUIneJ1ta, such as reques~ fQr
proposals or :Invitations for blds. lnde-
pendent cost estbnates. etc., when any
of the fOllowing cond:ltionsapply:
(1) A rec1plent"s procurement proce-
dures or o~tlon falls to comply with
the prOCure1n8Dt standards :In 'tbJa part.
(2) The procurement 18 expected to
exceed . the small purchase threshold
fixed at 41 U.S.O. 403 (11) (currently
SlOO,OOO) and I. to be awarded without
competit.1on or only one bid or offer 1s
received :In respouse to a sol1clta.t1on. 1
(3) Tbe procuremBDt. wh:lcb _18 ex-
pected to exceed the small purchase
thresbold, spec1nes. a "brand name"
product.
(4) The proPosed award over the
small purchase threshold ls to be
awarded to other than the apparent
low bidder under a sealed bid procure-
ment.
(5) A proposed contract modlfication
changes the scope of a contract or in-
creases the contract amount by more
than tbe amount of the small purchase
threshold.
~ 12.948
f 12.lJ45 Cost and price analysis.
SornB fonn of cost or price analysis
shall be made and documented in the
procurement files in connection with
every procurement action. Price anal-
ysis may be accomplished in various
ways, including the comparison of
price quotations submltted. market
prices and similar indic1a, together
with discounts. Cost analysis ls the re-
view and evaluation of each. element of
cost to detennlne reasonableness,
allocability and allowab1l1ty.
~ 12.946 ~eDt reeords.
Procurement records and files for
purchases in excess of the small pur-
chase threshold shall include the fol-
lowing at a minimum:
(a) Basls for contractor selection;
(b) Just111catfoD for lack of competi-
tIon when competitive bids or offers
are not obtained; and
(c) Basls for awa.rd cost or price.
~ 12.947 Contract administratioD..
A system for contract 'administra.tion
shall be maintained to ensure con-
tractor confonnance with the terms.
conditions . and speeil1cations of the
contract and to ensure adequate 'and
timely follow up of all purcha.ses. Re-
c:lpJents sllall evaluate contractor per-
formance and documents. as, appro-.
priate. whether contractors bave met
the terms. conditions and speclfica-
tions of the contract.
112.948 Coatract provision&.
The recipient shall Include, In addJ-
tl0D to provisions to define a sound and
complete agreement. the provls_jons
below in all contracts and sub-
contracts.
(a) Contracts :In excess of the small
purchase threshold shall conWn con-
tractual proV1SjODS or conditions that
allow for adm1nistrative. contractual,
or legal remedies In instances in wbich
a contractor v:lolates or breaches the
contract tenns, and provide for such
remedial actions as may be apPtD-;
priate.
(bY All contracts in excess of the
small purchase threshold shall contain
suitable prbvisions for termination by
the recipient, inclUding the manner by
which termination shall be effected
355
~ 12.950
. and the basis for settlement. In addi-
Uon, such contracts shall describe con-
ditions under which the contract. may
be terminated for default as well as
conditionS where the cont:ra.ct may be
terminated because of circumstances
beyond the control of the contractor.
(0) Except as otherwise req.u1red by
sta.tute, an award that requires the
contracting (or subcontracting) for
construction or Cac111ty improvements
shall prOVide for the recipient to faJJow
its own requirements. relating to bid
guarantees, perfonnance bonds, and
payment bonds unless the construction
contract or subcontract exceeds
$]00..000. For those contracts or sub-
contracts exceedingSlOO,QOO. the Fed-
eral awarding: agency may accept the
bonding polley and requirements of the
recipient. provided the Federal-award-
ing agency bas made a determination
that the Federal Government's Interest
is adequately protected. If such a de-
termina.tion has not been made, the
minimum requirements shall be as fol-
lows:
(1) A bid guarantee trom each b1dder
equ1valent to five perCEmt of the b1d
plice. The ""bid- guarantee" shall con.,.
sis't of a 1lrm. commitment such as a
bid bond, cert1fted check, or other ne-
gotiable instrument accompany:lng a
bid as 'assurance that the bidder shall,
upon acceptance of bJsbJd. execute
such contractual documents as may be
requ1red within the time specjfted.
(2) A performance bond on tbe part of
the contractor for 100 percent of the
contract price. A "performance bond"
is one executed in connect1on with a
contract to secure full1llment of all the
contractor's obligations under ~ucb
contract. '
(3) A payment bond on the part of the
contractor for 100 percent of the con-
tract. price. A "payment bOnd" 1s one
executed in connectioD with a contract
to assure payment as required by stat-
ute of a.ll persons supplying labor and
material in the execution of the work
prov:lded for in the contract.
(4) Where bonds are required in the
situations described herein, the bonds
shall be obtained from companies hold-
ing certificates of authority as accept-
able sureties pursuant to 31 CFR part
223, "Surety Companies Doing Business
with the United States."
43 CFR Sublille A (1l}-J-02 Edi"on)
(d) ..All negotiated contracts (except
those for less than the small purchase
threshold) awarded by reCipients shall
include a prOVision to the effect that
the recipient, the Federal awarding
agency, the Comptroller General of the
United States, or any of their duly au-
tborized representatives, shall have ac-
cess to any books, documents. papers
and records of the contractor which are
directly pertinent to a specific pro-
gram for the purpose of making audits,
examinations, excerpts and tran-
scriptions.
(e), All contracts, includiDg sma])
purobases, awarded by recipients and
their contractors shall conta1n the pro-
curement provjs1ons of appendix A to
this subpart, as applicable.
Reporl.s and Records
G 1.2.950 Purpose o,f reports and
records.
SecUons . 12.951 through 12.953 set
forth the procedures for monitoring
and reporting on the rec1pient's finan-
cial 8Jld program performance and the
necessary standard reporting forms.
They also set forth record retention re-
quirements.
f 12.961 MoDitoriDc ODd repo~1r pr0-
gram. perIorm8Dce~
(a) Rec1p1ents are responsible for
managing and monltormg each project.
program. subaward. fUnction or activ-
ity supported by the award. Recipients
shall monitor subawa.rds to ensure 8Ub-
recipients bave met the audit require-
ments as deUneated In 112.926.
(b) The Federal -awarding ag8Dcy
shall prescribe the freqUeDcy of ,sub-
mission for perform8Jlce reports. Ex-
cept as provided In 112.951(1), perform-
ance reports will not be required more
frequently than Quarterly or less fre-
quently tbanannually. Annual reports
shall be due 90 calendar dayS after ,the
grant year; quarterly or semi-annual
reports shaJl be due 30 days after the
reporting period. The Federal awarding
agency may require annual reports be-
fore tbe a.llDiversary dates of multiple
year awards in lieu of these require-
ments. The final performance reports
are due 90 calendar days after the expi-
ration or termination of tlle award.
356
" .
OfIice of the Secretary, Interior
(0) A 11nal technical or performance
report shall be required after comple-
tion of the project only jf the awarding
agency determines tbis to be appro-
priate.
(d) When required, perfonnance re-
ports shall generally contaIn, for each
award, brief information on each of the
fo]]ow1ng:
(1) A compa.r1son of actual accom-
plishments with the goals and. objec-
tives established for the period, the
findinpof the investigator, or both.
Whenever appropriate and the output
of programs or projects can .be read.11y
quantified. sucb quantitative data
should be related to cost data for com-
putation of unIt costs.
(2) Reasons why establJshed goals
were not met. if approprlate.
(3) other pert1nent information In-
cludtDg. wben appropriate. analysis
and explanation of cost overruns or
high unit costs.
(e) Recipients shall Dot be required to
submit more than the original and two
copies of performance reports.
(0 Rec1pients shall immediately 'no-
tHy the Federal awardlng agency of de-
velopments that have a significant 1m.
pact on the award-supported activities.
Also, notification shall be given in the
case of problems, delays, or adverse
conditions wbtch materially impair the
abUity to' meet the objectives of 'the
il.ward. This notification sballinclude a
statement of the action taken or con.
templated, and any assistance needed
to resolve-the situation.
(g) Federal awarding agencies' may
make s1 te' visits, as needed.
(h) Federal award1n~ agencies shall
comply with clearance requirements of
5 CFR part 1320 when requesting per-
fonna.nce data from recipients. I
f 12.952 FinaDcial reporting.
(a) The following fonna or such other
forms as'may be approved by OMB are
authorized for obtaining fin&1lcial in-
formation from recipients.
(1) SF-269 or SF-269A. Financial Status
Report. (:I) Each Federal awa.rdiDgagen-
cy wHl require recipients to use either
the SF-269 or SF-269A to report the
status of funds for all nonconstruction
projects or programs. A Federal award-
ing agency may, however, have the op-
tion of Dot reqUiring the SF-269 or SF-
~ 12.952
269A when the SF-270, Request for Ad-
vande or Reimbursement, or SF-272,
Report of Federal Cash Transactions, is
determined to prOVide adequate infor.
ma.tioD to meet its needs, except that a.
final SF-269 or SF-269A shall be re-
quired at the completion ,of the project
when the SF-270 is used oilly for ad-
vances.
(11) The Federal awarding ~gency
shall prescribe whether the report shall
be on a cuh or accrual basts. If the
Federal awarding agency requires ac-
crual information and the recipient's
accounting records are not nonnally
kept on the accrual baSis. the recipient
shall Dot be ,required to convert its ac-
count1:ng system, but shall develop ac-
crual information. through best esti-
mates based upon an analysis of the
documentation on hand.
(i11) The Federal awarding agency
shall determine the freq'uency of the
Financial Status Report for each
project or program, considering the
size and complexity of the particular
project or program. However. the re-
port shall not be required more fre-
quently tl1an quarterly' or less fre-
quently tha.n annually. A final report
shall be required at the completion of
the agreement.
(iv) The Federal award,ing "agency
shall require recipients to submit the
SF..:.2$9 or SF-269A (an onginal and no
more than two copies) no la.ter than 30
da.ys a.fter'the end of each speC1fted re-
porting period for quarterly and B8mi~
a.nnUal reports, and 90 calendar days
for annual and Onal reports. Exten~
sions of reporting due dates may be ap-
proved by the Federal awarding age,ncy
upon request by the recipient.
(2) SF-272. Report of' Fed""a' Cash
Tran8actions~ (j) When funds are ad-
vanced to recipients, the Federal
awarding agency shall require each re-
cipient to submit the SF-272 and, when
necessary, its continuation sheet. SF-
272&. The. Federal awarding agency
shall use this report to monitor casb
advanced to recipients and to obtain
disbursement information for eacli
agreement with the recipients.
(jj) Federal awarding agencies may
require forecasts of Federal cash re-
quirements in the "Remarks" section
of the report.
357
S12.953
OU) When practical and deemed nec-
essary, Federal awarding agencies may
require recipients to report in the
"Remarks" sectJon the amount of cash
advances received in excess of three
days. Recipients shall provide short
narrative explanations of actions taken
to reduce the excess balances.
(iv) Recipients shall be required to
submit not more than the original and
two copies of the .SF-272 15 caJendar
days following the end of each quarter.
The Federal awarding agencies may re-
quire a n;lonthly report from those re-
cipients receiving advances totaling $1
mj]]jon or more per year.
(v) Federal aWarding agencies -may
waive the requirement for submiSsion
of the SF-272 for anyone of. the fol-
lowing reasons:
(A) When monthly advances do not
exceed $25,000 per recipient. provided
tbat such advances are monitored
through other forms contaJned In this
section;
(B) If, in the Federal awarding agen-
cy's opinion, the recipient's accounting
controls are adequate to minimize ex-
cessive Federal adva.nces; or
(C) When the electronic payment
mechanisms provide adequate data.
(b) When the Federal awarding agen-
cy needs additional 1nfonnation or'
more frequent reports. thefollow1Dg
shall be observed:
(1) When additional information is
needed to' _comply with legislative re-
qu!rements. Federal awarding agencies
shall 1ssue instructions to requIre re-
cipients to submit BUch information
under the "Remarks" section of the re-
ports.
(2) Wb(tD a Federal awa.rd1Dg agency
detennines -that a recipient's account-
ing system does Dot meet the standards
in i ]2.921, additional pertinent lntor-
mation to further monitor awards may
be obtained upon Wl1tten notice ,to the
recipient until such time as the system
is brought up to standard. The Federal
awarding agency. in" obtaining this in-
formation, shall comply with report
clearance requirements of 5 CFR part
]320.
(3) Federal awarding agencies are en-
couraged to shade out any line item on
any report if not necessary.
(4) Federal award1ng agencies ma.y
accept the identical information from
43 CFR Sublille A (lD-I-02 Edillon)
the recipients in machine readable for-
mat br computer printouts or elec-
tronic outputs in Heu of prescribed for-
mats. .
(5) Federal awarding agencies may
provide computer or electromc outputs
to recipients when such actJoD e:z:pe-
dltes or contrlbutes to the accuracy or
reporting.
g 12.958 Retention and access require-
JDents for records.
(a) This section sets forth require-
ments for record retention and access
to records for awards to recipients.
Federal awarding agencies shall not
impose any other record retention or
access requirements upon recipients.
(b) Financial records. suPPOrting doc-
uments. statJst1caJ records, and all
other records pertinent to an award
shall be retained for a period of three
years from the date of submission of
the final expenditure report or. for
awards that are renew~d quarterly or
annually. from the date of the submis-
sion of the Quarterly or annual finan-
cial report. The only exceptions are the
following;
(1) If any litigation, claim, or audit is
star'ted before the expira.tion of the 3-
year period. the records shall be re-
ta1:ned until all litigation, claims or
audit tlnd1J1gs involving the records
have beeJi resolved and final action
takOJl.
(2) Records f9r real property and
equ1_OJlt acquired with Federal funde
shall be retained for 3 years after final
disposition.
(3) When records are tra.nst6lT8d to or
malnta1ned by the Federal awa.rd1JJg
agency. the 3-year retention require-
ment 1s Dot appllcable to the recipient.
(4) Indirect cost rate proposals. cost
allocation plans, etc.. as spemDed in
U2.953(g).
(c) Copjes of original records may be
subst1tuted for the original records if
authm1zed by the Federal award1ng
agency.
(d) The Federal a.warding agency w:lll
request tra:i:1sfer of certain records.. to
its custOdy from recipients when it de-
tennines that the records possess long
tenn r~tent1on value. However, in
order to avoid duplJcate recordkeeping,
a Federal awarding agency may make
arrangements for recipients to retaJn
358
-----
,
.
Omce of the Secrefary. Interior
any records that are continuously
needed for joint use_
(e) The Federal awarding agency. the
Inspector General, Comptroller Gen-
eral of the United States, or any of
their duly authorized representatives,
have the right of timely and unre-
stricted access to any books, docu-
ments. papers, or other records of re-
cipients that are pertinent to the
awards, in order to make- audits, ex-
aminations, excerpts, transcripts and
copies of such documents. This right
also includes timelY and reasonable ac-
cess to a recipient's personnel for the
purpose of interview and discussion re-
lated to sucb documents. The rights of
access in this paragraph are not lim-
ited to the required retention period,
but shall last as long as records are re-
tained.
(f) Unless reQ.uired by st.atute. DO
Federal awarding agency shall place
rest.rlctions on recipients 'that Umit
public a.ccess to the records of recipi-
ents -that are pertinent to an award, ex-
cept when the Federal awarding agency
can demonstrate that such records
shall be kept confidential and would
have been exempted from disclosure
pursuant> to the Freedom of Informa-
tion Act (5 U.S.C. 552) :If the records
had belonged to the Federal awarding
agency.
(g) Indirect cost Tate proposals. cost al-
location plans, etc. Pa.racraPhs (g)(1) and
(g)(2l.of this section apply to the fol~
lowing types of dOCUJD8JJts, and their
supporting records: indJrect cost ra.te
computatjoDs or proposals. cost alloca-
tjon plans. and any simllar account1ng
computations of the rate at which a
particular group of costs i8 chargeable
(such as computer usage chargeback
rates or composite frtnge benefit
rates).
(1) If submitted fOT negotiation. If the
recipient submits to the Federal
awarding agency or the 8ubreci,pient
submits to the recipient the proposal;
plan, or other computation to form the
basis for negotiation of the rate, then
the 3-year retention perlod for its sup-
porting records starts on the date of
the submissioD.
(2) If not submitted for negotiation. If
the recipient is not required to submit
to the Federal awarding agency or the
subrecipient is Dot required to submit
~12.961'
to the recipient the proposal, plan, or
other compu'tatioD for negotiation pur-
poses, then the 3-year retention perlod
for the proposal, plan, or other .com-
putation and its supporting records
starts at the end of the fiscal year (or
other a.ccounting period) covered by
the proposal, plan, or other computa-
tiOD.
Termination and Enforcement
~ 12.960 Purpose of terminatio:n and
enforcement.
Sections 12.961 and 12.962 set forth
uniform suspension, termination and
enforcement procedures.
i 12.961 Termination.
(a) Awards may be terminated in
whole or in part only if paragraph
(a)(1), (a)dn or (aX3) of this section ap-
pUes.
(I) By the Federal awarding agency,
if a recipient materially faJ.1s to com-
plY with the terms and conditions of an
award.
(2) By the Federal' awarding agency
with the consent of the recipient, in
wbiCE. case the two parties sha.].] agree
upon the termblation conditions, jn..
eluding the elIective date and. in the
case of pa.rt1al termination, the portion
to be terminated.
(3) By the recipient upon sencUng to
the Federal awarding agency written
. DotJ1lca:t1on setting forth the reasons
for BUch termination, the effective
date, and. in tile case of partiaJ termi-
nation, the portion to be terminated.
However. if the Federal awarding agen-
cy 'determines in the case of pB.rtiaJ
tenninatfon that. the reduced or modi-
fied portion of the grant will not .ac-
complish the purposes for which the
grant was made, it may terminate the
grant in its entirety under either para-
graph (a) (I) or (2) of this ssctlon.
(b) If costs are allowed under an
award, the responsibilities of the re-
cipient referred to in U2.971(a), includ-
ing those for property management-a.s
applica.ble, shall be considered in the
tennination of the award, and provi-
sion. sha.ll J;le made for continuing re-
sponsibilities of the reCipient after ter-
mination, as appropriate.
359
~ 12.962
~ 12.962 Enforcement.
(a) R.emedies fOT noncompliance. If a re-
cipient materially fails to comply with
the terms and conditions of an award,
whetber stated in a Federal statute,
regula.tion, assurance. appl1ca,t1on. or
notice of award, the Federal awarding
agency may, in additioD to imposing
any of the specHt.l conditions outlined
in 912.914, take one or more of the fol-
lowing actions, as appropriate in tbe
circumstances.
(1) TemporarUy withhold cash pay-
ments pending correction of the defi-
ciency by the recipient. or more severe
enforcement action bytbe Federal
awarding agency.
(2) Disallow (that is. deny both use of
funds 'and any applicable matching
credit for) all or part of the cost of the
act.ivlty or action not in comp)ja.nce.
(3) Wholly or partly suspend or ter-
minate the current award.
(4) Withhold further awards for the
project or program.
(5) Take other remedies that may be
legally available.
(b) Hearings and appeals. In takfng an
anCoI-cement action. the awarding
agency shall provide the recipient an
opportunity for hearing, appea), or
other adminiatrative proceeding to
which. the recipJeJ;lt ia entitled under
any atatute or regulat10n applicable to
the action involved.
(0) Ellecu 01 suspension and tenni-
nation. Costs of a recJp1ent resulting
from obUg-atiana incurred by the re-
cipient dw1ng a suspension or after
termination ot an award are not allow-
able unless the Federal a.warding agen-
cy expressly authorizes them 1n the no-
tice of 'suspension or term1nat1oD or
subsequently. Other recipient coats
durinI' suspension or after tennination
which are necessary and not reason-
ablY avoidable are. allowable if para-
graphs (c) (1) and (2) of this sectiOD
apply:
(1) The costs result from obligations
which are properly incurred by the re-
cipient before the effective date of sus-
pension or terminatJon. are not in an-
ticipation of it, and in the case of a ter-
minatjon, are noncancellable.
(2) The costs would be allowable if
the award were Dot suspended or ex-
pired normally at tbe end of the fund-
43 CFR Sublftle A OlH-Q2 Ediflon)
ing period in which the termination
takes<effect.
(d) Relationship to debannent and sus-
pension. The enforcement remedies
identU1ed in this section, incJulling
suspension and tenninatioD. do not
preclude a. recipient from be1.ng subject
to debarment and SUSpension under
E.O.s 12549 e.nd 12689 e.nd the Federal
awarding agency: implementing regula-
tions (see 43 eFR part ]2).
AFTER-THE-AWARD REQUlREMENTS
i 12.970 Purpose.
Sections 12.971 through 12.973 contain
closeout procedures and otber proce-
dures for subsequent disallowances and
adjustments.
i 12.971 Closeout procedures..
(a) Recipients shall submJt, w1thln90
calendar days after the date of comple-
tion of the award. all financial, per-
formance. &rid other reports as required
by the tenns and conditions of .the
award. Tbe Federal aWarding agency
may approve extens10Ds when re-"
quested by the rec:lplent.
(b) Unless the Federal awarding agen-
cy authorizes an. extension, a reCipient
shall I1quidate all obUgatloDS incurred
under the oIlward Dot later than. 90 cal-
endar days after the funding period or
the date of completion as specJOed 1n
the tenns and conditions of the award
or in agency implementing tnstruc-
ttons.
(c) The Federal awaid1ng agency
shall make prompt payments to a re-
cJpient for allowable reJmbursable
costs under the award being closed. out.
(d) The reclplent sball promptly re-
fund any balances of W10bllgated cash
that the Federal awarding agency has
advauced or paid and that is not au-
thoIized to- be retained by the recipient
for use In other projects. OMB Circular
A-l29 governs unreturned amounts that
become delinquent debts.
(e) When authorlzed by the terms and
conditions of the awa.rd. the Federal
awarding agency shall make a settle-
ment for any upward or downward-ali-
justments to the Federal share of costs
after closeout reports are received.
<0 The ~recjpjent shall account for
any real and personal property ac-
quired with Federal funds or received
360
". "
OffIce 01 the Secretory, Interior
from the Federal Government in ac-
cordance with H 12.931 through 12.937.
(g) If a final. audit has not been per-
formed prior to the closeout of an
award. the Federal awarding agency
shall retaJn the right to recover an ap-
propriate amount after .tUlly cODsld-
enng the recommendations on dis-
allowed costs resulting from the final
audit.
~ 12.972 Subsequent. adjustments and
continuing responsibilities..
(a) The 'closeout of an award does not
affect any of the following.
(1) The right of the Federal awarding
agency to disallow cosis and recover
funds on the basis of a later audit or
other review.
(2) The obligation of the recipient to
return any funds due as a resu] t of
later refunds, cOITectlons, or other
tra.nsacUons.
(3) Audit requirements In 512.926.
(4) Property management require-
ments in ~fi 12.931 through 12.937.
(5) Records retention as required in
112-953.
(b) After closeout of an award, a rela-
tionship created under an award m8.y
be modified or ended in whole or in
part with the c.onsent of the Federal
awarding agency and the recipient,
provided the responslbfiities of the re.:.
c1p1ent referred to in 512.973(a), includ-
ing those for property management as
applicable, are 'considered andprovt-
sions made for continuing reBpOnsibtl-
it1e8 of the recipient, as appropriate.
i 12.978 Collectiou of amouuu du~
(aJ A:1Jy funds paid to a recipient In
excess of the amount to which the re-
cipient 1s :(1na.lly determtn'ed to be eD~-
tIed under the terms aJld conditions of
the award constitute a debt to the Fed-
eral Government. If not paid within a
reasonable period_after the demand tor
payment, the Federal awarding agency
may reduce the debt by paragraph (a)
(1). (2) or (3) of this section:
(1) Making an administrative offset
against other requests for reimburse-
ments.
(2) Withholding advance payments
otherwise due to the reCipient.
(3) Taking other action permitted by
statute.
PI. J 2, Subpl. F, App. A
(b) Except as otherwise provided by
law...the Federal award1Dg agency shall
charge _interest on an overdue debt in
accordance with 4 CFR chaptet n,
"Federal Cla.1ms Collection StaDd-
ards."
ApPENDIX A TO SUBPART F OF PART 12-
CONTRACT PROVISIONS
AU contracts awarded by a recipient, in-
cluding 8Jnall purchases, shall contain the
folloWing provisions as applicable:
1. Equal EmploJ/ment Oppottunftv-All con-
tracts shall contain a provision requiring
compliance witb E.O. 11246, . "Equal Employ-
ment Opportunity," as amended by B.D.
11S'15, "Amending Executive Order 11346 Re-
Ia.Unl' to EQual Employment Opportunity:'
and a.. supplemented by regulations at 41
CFR :Part 60, "Omce of Federal Cont.ract
CompUa.Dce Programs. Equa.) Employment
Opportunity. Department of Labor,"
2. Copeland "Anti-Kickback" Act (I8 U.S.C.
874 and' 40 U.S.C. 276c)-,-All contracts and sub-
grants in excess of .$100.000 for construction
or repair awarded by recipients and 8Ub-
recipients sha.)l include a provision for com.
pUance with the Copeland "Anti-Kickback"
Act US U.S.C. 874), as supplemented by De-
partment of Labor recula.tloDB (29 CFR part
S; "Oontractors and Subcontractors on Pub-
lio Building or Public Work FID8.J!Ced in
Whole or iD Part. by Loa.ns or Grants from
the United States"). The Act provides that
ea.cb contractor or Bubreciplent shall be pro-.
hiblted ftOm induclnl', by any means, any
penon employed in theoonstruotlon. com~
pletlOD, or repa:lr of pubUc work, to c:lv8 u...
any part ot tbe compeJlsat1on to which he ia
otherwise entitled. The reclp1at 8b&11 report
all 81lSP8cted or reported Vlolatlons to the
Federal awarding agency.
3. Davf"...Bacon Ad, cu. t'lInended (10. U.S.C.
2760. to o..-7)-When required by Federal pro--
gram lee1s1atioD, all construction con'traots
awarded by the 'recipients and sUbreclphmts
ot more than S2,OOO sball Include.. prov1.s1on
tor compliance with tJ:le nav1&-Ba.con Act (40
U.8.0. 278&, to 8.-7) and aa supplemented by
Departmezat of' Labor regula.t1on8 (29 CFR
part 5, "Labor Standa.rda ProvtsIOD. Applica.:-
ble to OontTacta Oovern1nr Federally FI-
nanced and AB81ated Construction",. Under
this Act. contractors shall be required to pay
wages to laborers ud mechanics at .. rate
not less th8.J! the minimum wages specined
in a wage determination made by the Sec-
retary ot Labor. In addition. contractors
shall be required to pay wa.ges not less than
once a week. The recipient shall place a copy
of the current prevaiUng wage determina.t1on
Issued by the Depart.ment of Labor in each
solicitation and t.he award of a contract shall
be condJtloned upon the acceptance of the
361
PI. 13
wage determination. The recipient shall re-
port all suspected OJ' reported vIolations to
the Federal awarding agency.
4. Contract Work Hours and Safety Standards
Act (10 U.S.C. 327-333h Where applicable, all
contracts awarded by recipients in excess 'of
$]00,000 'Cor constructJon contracts and for
otber contracts that involve the employment
of mechanics or laborers sball include a pro-
vlsJon for compliance with sections 102 and
107 of the Contract Work Hours and Safety
Standards Act (40 u.s.a. 327-333). as SDpple~
mented by Department of Labor regulations
(29 CFR part. 5). Under section 102 of the Act,
each contractor mall be reqnfred to compute
the wages of every mechanic and laborer on
the basis of a. standard work week of fO
bours. Wprk in excesa of the standard- work
week ia permi88ibJe provided that the worker
is compensated at a rate of not less than 1lh
times the basJc rate of pay for all bours
worked in excess of 40 bours in the work
week. Section 107 of the Act is applicable to
constructIon work. and provides tbat no la-
bonr or mechanic Bhall be required to work
In sllrrOUDdfnp or under working conditions
whicb are unsanitary. hazardous or dan-
gerous. These requirements do not apply to
t.he purchases of suppUea or matelials or ar-
t.1clesordlnarily available on the open mar--
ket, or contracts for transportation or tran&-
mlseJon oliDtelUl'ence. ,
5. RigAb to Inventions Made Under a Con-
tract or Agreement-Contracts or agreements
for the performance of experimental, devel-
opmental. or researcll worJc; shan provide for
the rlght8 of the Federal Government and
the reclpJent In any reaolttng Invention In
accordance with 37 en part 401. "RScbta to
Inventions .Made by Nonprofit OrIranlzatJODS
and Small BusJD8JUj Finna Under Govern-
melit Grants. Contract. and Coopera~ve
Agreementa... and &DY fmplementiDB' regnla-
tiona luoed by the award:lJlg aPnoy.
6. Cleen Afr Act (42 U.S.C. 7#01 et seq.) and
the Fedtrrdl WaUr Pollution Control Act (33
U.S.C. 1251 et no.). as amended-Contracts
and SQ~t& of amouDts In ezceaa of
SlOO.OOO shall contain . provflS1O;D that r0-
qu1res the recipient to agree to comply with
all applicable standards, orders or Teeula-
tiODs jl8'Qed parauut to the Clean Air Act
(42 U.S.C. Tfo] d "fl.) and the FedaraJ Water
Pollution Control Act as amended (33 U.S.C.
1251 et sell.). Violations sball be reported to
the Federal aWarding agency. and the. Re-
gional Offtce of the EnVironmental Protec-
tion AlrenCY(EPA).
7. Bvrd Anti-LObbying Amendment (31 U.S.C.
1352)-Contractors who apply or bid for an
award of more than $lOO.OOO sball file the re-
QUired certification. Each tier certif:les to
the tier above that It will not a.nd has Dot
used Federal appropriated funds to pay any
person or organization for Influencing or at-
tempting to influence an officer or employee
of any agency. a member of Congress, officer
ArreVlJ.y K
43 CFR Subtitle A (IG-1-Q2 Edition)
or employee of Congress, or an employee of a
memb;r of Congr888 in connection with ob-
taining any Federal contra.ct. grant or 'any
other award covered by 31 U.S.C. 1352. Each
tier shall also dlscloae any lobbying With
non-Federal funda tha.t takes place in con-
nectioD with obtaJninc any Federal award.
Such dfscloaures are forwarded from tier to
tier up to the recipient.
8. Deb4nnent and Stupm.ri01l (E.O.s 12519
and 12689)-No contracts shall be made to
parties Hsted on the General Services Ad-
mlnlstratJon's"Llsts of Parties Excluded
from Federal Procurement or NonprOCi1re--
me-nt Programs" in accordance w:lth R.O.s
12549 and ]2689, "t>ebannent. and Suspen-
sion." This l1st'conta1ns the names of parties
deba.rTed, suspended. or otherw:lse excluded
by agencies, and contractors declared . tn&l1~
glble under statutory or replatory author-
Ity other than E.O. ]2549. Co.ntractors with
awards that exceed the small pnrchll8e
threshold shall pl'OV1de the required cert1fi-
cation reganUng their exclusion statosand
that of their principals.
PART I3-VENPING FAClunES
OPERATEP BY BUNP PERSONS
Sec.
13.I AuthorIty and purpose.
13.2 Application for permit.
13.3 Cooperation In seJection of facilities.
13_4 Terms of permit.
13.5 Protection itom compet.1t1on.
13.6 Appeals.
AUTBOR1TY: Sec. 4. 68 Stat. 663; 20 U.s.C.
107.
SOUR.c3: 22 FR 9476. Nov. 2'1. 1957. unless
Otherw1S8 DOted.
113.1 Authority ODd pwpose.
The Randolph-Sheppard VemUng
Stand Act ot June 2O~ 1936. as amended
by section 4 ot the Act ot August 3, 1954
(68 Stat. 663; 110 U.S.C. 107), directs that,
insofar as practicable. preference shall
be given to bl1nd persons 1n the oper-
ation ot vending stands and machines
on any Federal property. The regula.-
tions in this part prescribe the poUc1es
a.nd procedures to achieve and protect
that preference on property. 1ncludJng
land. owned or leased by the United
States &IJ:d controlled by the Depart-
ment of the Interior.
~ 18.2 Application tor permit.
(8.) State licenSing agencies des-
igna.ted by the Department Of Health.
Education. and Welfare under the Ran-
dolph-Sheppard Vending Stand Act
362
AppeVtJi &--
U.S. DEPARTMENT OF THE INTERIOR
CIVIL RIGHTS ASSURANCE
As the authorized representative of the applicant, I certify that the applicant agrees that, as a condition to
receiving ant Federal financial assistance from the Department ofthe Interior, it will comply with all Federal
laws relating to nondiscrimination. These laws include, but are not limited to: (a) Title VI of Civil Rights
Act of 1964 (42 U.S.C. 2000cd-I), which prohibits discrimination on the basis ofrace, color, or national
origin; (b) Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.c. 794), which prohibits
discrimination on the basis of handicap; (c) the Age Discrimination Act ofi975, as amended (42 U.S ,C, 610 I
et, seq.), which prohibits discrimination on the basis of age; and applicable regulatory requirements to the end
that no person in the United States shall, on the grounds of race, color, national origin, handicap or age, be
excluded form participation in, be denied the benefits or, or be otherwise subjected to discrimination under
any program or activity conducted by the applicant. THE APPLICANT HEREBY GIVES ASSURANCE
THAT it will immediately take any measures necessary to effectuate this agreement.
THIS ASSURANCE shall apply to all aspects of the Applicant's operations including those part that have not
received or benefitted from Federal financial assistance.
If any real property or structure thereon is provided or improved with the aid of Federal financial assistance
extended to the Applicant by the Department, this assurance shall obligate the Applicant, or in the case of any
transfer of such property, any transferee, for the period during which the real property or structure is used for
a purpose for which the Federal [mancial assistance is extended or for another purpose involving the
provision of similar services or benefits. If any personal property is so provided, this assurance shall obligate
the Applicant for the period during which it retains ownership or possession of the property. In all other
cases, this assurance shall obligate the Applicant for the period during which the Federal financial assistance
is extended to it by the Department.
THIS ASSURANCE is given in consideration of and for the purpose of obtaining any and all Federal grants,
loans, contracts, property, discounts or other Federal financial assistance extended afler the date hereof to the
Applicant by the Department, including installment payments afler such date on account of applicants for
Federal financial assistance which were approved before such date.
The Applicant recognizes and agrees that such Federal financial assistance will be extended in reliance on the
representations and agreements made in this assurance, and that the United States shall have the right to seek
judicial enforcement oflhis assurance. This assurance is binding on the Applicant, its successors, transferees,
assignees, and subrecipients and the person whose signature appears below who is authorized to sign this
assurance on behalf of the Applicant.
TITLE
Supervisor
APPLICANT/ORGANIZATION
Town of Southo1d
DATE SUBMITTED
May !:L, 2006
APPLICANT/ORGANIZATION MAILING ADDRESS
P.O. Box 1179
Southo1d, NY 11971-0959
BUREAU OR OFFICE EXTENDING ASSISTANCE
Dl-1J50
(REV,6/91)
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APPENDIX C
U.S. Department of the Interior
Certifications Regarding Debarment, Suspension and
Other Responsibility Matters, Drug-Free Workplace
Requirements and lobbying
Persons signing this form should refer to the regulations
referenced below for complete instructions:
Certification Regarding Debarment, Suspension, and Other
Responsibility Matters - Primary Covered Transactions - The
prospective primary participant further agrees by
submitting this proposal that It will Include the clause
titled, "Certification Regarding Debarment, Suspension,
Ineligibility and Voluntary Exclusion - Lower ner Covered
Transaction," provided by the department or agency
entering Into this covered transaction, without
modification, in all lower tier covered transactions and in
all solicitations for lower tier covered transactions. See
below for language to be used or use this form certification
and sign. (See Appendix A of SUbpart D of 43 CFR Part 12.)
Certification Regarding Debarment, Suspension, Ineiigibility
and Voluntary Exclusion - Lower Tier Covered Transactions,.
(See Appendix B of SUbpart D of 43 CFR Part 12.)
Certification Regarding Drug-Free Workplace Requirements
- Alternate I. (Grantees Other Than Individuals) and
Alternate II. (Grantees Who are Individuals) - (See Appendix
C of Subpart D of 43 CFR Part 12)
Signature on this form provides for compliance with
certification requirements under 43 CFR Parts 12 and 18.
The certifications shall be treated as a material
representation of fact upon which reliance will be placed
when the Department of the Interior determines to award the
covered transaction, grant, cooperative agreement or loan.
PART A: Certification Regarding Debarment, Suspension, and Other Responsibility Matters-
Primary Covered Transactions
CHECK_'F THIS CERTIFICA TION IS FOR A PRIMARY COVERED TRANSACTION AND IS APPLICABLE.
(1) The prospective primary partiCipant certifies to the best of its knowiedge and belief, that it and its prinCipals:
(a) Are not presently debarred, suspended. proposed for debarment. declared ineligible, or VOluntarily excluded by any
Federal department or agency;
(b) Have not within a three-year period preceding this proposal been convicted of or had a. civil judgment rendered against
them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a
public (Federal, State or local) transaction or contract under a publiC transaction; violation of Federal or State antitrust
statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false
statements, or receiving stolen property:
(c) Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State or local)
with commission of any of the offenses enumerated in paragraph (1)(b) of this certification; and
(d) Have not w~hin a three-year period preceding this application/proposal had one or more public transactions (Federal,
State or local) terminated for cause or default.
(2) Where the prospective primary participant is unable to certify to any of the statements in this certification, such prospective
participant shall attach an explanation to th;~ proposal.
PART B: Certification Regarding Debarmen~ Suspension, Ineligibility and Voluntary Exclusion _
Lower TIer Covered Transactions
CHECK__'F THIS CERTIFICA TlON IS FOR A LOWER TIER COVERED TRANSACTION AND IS APPLICABLE.
(1) The prospective lower tier participant certifies, by submission of this proposal. that neither it nor its principais is presently
debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this
transaction by any Federal department or agency.
(2) Where the prospective lower tier participant is unable to certify to any of the statements in this certification, such prospective
participant shall attach an explanation to this proposal.
This form was electronically produced by Ellie Federal Forms,lnc.
01-2010
June 1995
(This rotm replates 01-1953. 01-1954,
01-1955.01-1956 and 01-1963)'
. ,
,-~,:':\ '
\'"
..'~
" ,
"
PART C: Certification Regarding Drug-Free Workplace Requirements
CHECK_IF THIS CERTIFlCA T/ON IS FOR AN APPLICANT WHO IS NOT AN INDIVIDUAL
Alternate I. (Grantees Other Than Individuals)
A The grantee certifies that it will or continue to provide a drug-free workplace by:
(a) PubliShing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession. or
use of a controlled substance is prohibited in the grantee's workplace and speCifying the actions that will be taken
against employees for violation of such prohibition;
(b) Establishing an ongoing drug-free awareness program to inform employees about-
(1) The dangers of drug abuse in the workplace;
(2) The grantee's policy of maintaining a drug-free workplace;
(3) Any available drug counseling, rehabilitalion, and employee assistance programs; and
(4) The penallies that may be imposed upon employees for drug abuse violations occurring in the workplace;
(0) Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the
statement required by paragraph (a);
(d) Notifying the empioyee in the statement required by paragraph (a) that, as a cond~ion of employment under the grant,
the employee will -
(1) Abide by the terms of the statement; and
(2) Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the
workplace no later than five calendar days after such conviction;
(e) Notifying the agency in writing, within ten calendar days after receiving notice under subparagraph (d)(2) from an
employee or otherwise receiving actual notice of such conviction, Empk>yers of convicted employees must provide
notice, including position title, to every grant officer on whose grant activity the convicted employee was working,
unless the Federal agency has designated a central point for the receipt of such notices. Notice shall include the
identification number( 5) of each affected grant;
(I) Taking one of the following actions, within 30 calendar days of receiving notice under subparagraph (d)(2), with
respect to any employee who is so convicted --
(1) Taking appropriate personnel action against such an employee, up to and including termination; consistent
with the requirements of the Rehabilitation Act of 1973, as amended; or
(2) Requiring such employee to participete satisfactorily in a drug abuse assistance or rehabilitation program
approved for such purposes by a Federal, State, or locai health, law enforcement, or other appropriate agency;
(g) Making a good faith effort to continue to maintain a drug-free workplace through implementation of paragraphs (s) (b),
(c), (d), (e) and (I),
B. The grantee may ,"sert in the space provided below the site(s) for-the performance of work done in connection with the
specific grant:
Place of Performance (Street address, city, county, state, zip code)
Check_if there are workplaces on files that are nol identified here,
PART D: Certification Regarding Drug-Free Workplace ReqUirements
CHECK_'F THIS CERTIFICATION IS FOR AN APPLICANT WHO IS AN INDIVIDUAL
Alternate il. (Grantees Who Are Individuals)
(a) The grantee certifies that, as a condition of Ih.e grant, he or she will not engage in the unlawful manufacture,
distribution, dispensing. possession, or use of a controlled substance in conducting any activity with tJ1e grant;
(b) If convicted of a criminal drug offense resulting from a violation occurring during the conduct of any grant activity, he
or she will report the conviction, in writing. within 10 calendar days of the conviction, to the grant officer or other
designee, unless the Federal agency designates a central point for the receipt of such notices. When notice is made
to such a central point, it shall include the identification number(s) of each affected grant.
01-2010
June 1995
(Thlslormreplac:esoI-1953,oI-1954.
01-1955. 01-1956 end 01-1963)
.
PART E: Certification Regarding Lobbying
Certification for Contracts, Grants, Loans, and Cooperative Agreements
CHECK IF CERTlFICA TlON IS FOR THE AWARD OF ANY OF THE FOLLOWING AND
THE AMOUNT EXCEEDS $100,000: A FEDERAL GRANT OR COOPERATIVE AGREEMENT:
SUBCONTRACT, OR SUBGRANT UNDER THE GRANT OR COOPERA TlVE AGREEMENT.
CHECK_IF CERTlFICA TlON FOR THE AWARD OF A FEDERAL
LOAN EXCEEDING THE AMOUNT OF $150,000, OR A SUBGRANT OR
SUBCONTRACT EXCEEDING $100,000, UNDER THE LOAN.
The undersigned certifies, to the best of his or her knowledge and belief, that:
(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for
influencing or attempting to influence an officer or employee of an agency, a Member of Congress, and officer or employee
of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making
of any Federal grant. the making of any Federal loan, the entering into of any cooperative agreement, and the extension,
continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
(2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for Influencing or attempting
to Influence an officer or employee of any agency, a Member of Congress, an offiearar employee of Congress, or an
employee of a Member of Congress in connection with this Federal contract. gr.ant, Joan, or cooperative agreement, the
undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its
instructions. .
(3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at
all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all
subrecipients shall certify accordingly.
This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered
into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, title
31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000
and not more than $100,000 for each such failure.
As the authorized certifying official, I hereby certify that the above specified certifications are true.
~..#
SIGNATURE'O AUTHORIZED CERTIFYING OFFICIAL
Scott A. Russell, Supervisor, Town of Southold
TYPED NAME AND TITLE
May ..e., 2006
DATE
01-2010
June 1995
(This lonn replacH 01-1953, 01-1954,
01-1955,01.1956 Ind 01-1963)