HUD-51915-A Contract Provisions Required by Law

U.S. Department of Housing
and Urban Development
Office of Public and Indian Housing
OMB Approval No. 2577-0015 (exp.12/31/2005)

Contract Provisions Required by Federal Law
or Owner Contract with the
U.S. Department of Housing and Urban Development

Previous editions are obsolete

form HUD-51915-A (9/98)
ref. Handbooks 7417.1, 7450.1 & 7460.8

Contract Provisions Required by
Federal Law or Owner Contract
with the U.S. Department of
Housing and Urban Development

U. S. Department of Housing
and Urban Development
Office of Public and Indian Housing

OMB Approval No. 2577-0015
(exp.12/31/2005)

Public reporting burden for this collection of information is estimated to average 3 hours per response, including the time for reviewing instructions, searching
existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This agency may not conduct
or sponsor, and a person is not required to respond to, a collection of information unless that collecton displays a valid OMB control number.
These contracts between a HUD grantee (housing agency (HA)) and an architect/engineer (A/E) for design and construction services do not require either
party to submit any materials to HUD. The forms provide a contractual agreement for the services to be provided by the A/E and establishes responsibilities
of both parties pursuant to the contract. The regulatory authority is 24 CFR 85.36. These contractual agreements are required by Federal law or regulation
pursuant to 24 CFR Part 85.36. Signing of the contracts is required to obtain or retain benefits. The contracts do not lend themselves to confidentiality.

1.0 Contract Provisions Required by Federal Law or Owner Contract
with the U.S. Department of Housing and Urban Development (HUD).
1.1 Contract Adjustments. Notwithstanding any other term or
condition of this Agreement, any settlement or equitable adjustment due to termination, suspension or delays by the Owner shall
be negotiated based on the cost principles stated at 48 CFR
Subpart 31.2 and conform to the Contract pricing provisions of 24
CFR 85.36 (f).
1.2 Additional Services. The Owner shall perform a cost or
price analysis as required by 24 CFR 85.36 (F) prior to the
issuance of a contract modification/amendment for Additional
Services. Such Additional Services shall be within the general
scope of services covered by this Agreement. The Design Professional shall provide supporting cost information in sufficient detail
to permit the Owner to perform the required cost or price analysis.
1.3 Restrictive Drawings and Specifications. In accordance with
24 CFR 85.36(c)(3)(i) and contract agreements between the Owner
and HUD, the Design Professional shall not require the use of
materials, products, or services that unduly restrict competition.
1.4 Design Certification. Where the Owner is required by
federal regulations to provide HUD a Design Professional certification regarding the design of the Projects (24 CFR 968.235),
the Design Professional shall provide such a certification to the
Owner.
1.5 Retention and Inspection of Records. Pursuant to 24 CFR
85.26(i)(10) and (11), access shall be given by the Design Professional to the Owner, HUD, the Comptroller General of the United
States, or any of their duly authorized representatives, to any
books, documents, papers, and records of the Design Professional
which are directly pertinent to that specific Contract for the
purpose of making an audit, examination, excerpts, and transcriptions. All required records shall be retained for three years after
the Owner or Design Professional and other subgrantees make
final payments and all other pending matters are closed.
1.6 Copyrights and Rights in Data. HUD has no regulations
pertaining to copyrights or rights in data as provided in 24 CFR
85.36. HUD requirements, Article 45 of the General Conditions
to the Contract for Construction (form HUD-5370) requires that
contractors pay all royalties and license fees. All drawings and
specifications prepared by the Design Professional pursuant to
this contract will identify any applicable patents to enable the
general contractor to fulfil the requirements of the construction
contract.

Previous editions are obsolete

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1.7 Conflicts of Interest. Based in part on federal regulations
(24 CFR 85.36(b)) and Contract agreement between the Owner
and HUD, no employee, officer, or agent of the Owner (HUD
grantee) shall participate in selection, or in the award or administration of a contract supported by Federal funds if a conflict of
interest, real or apparent, would be involved.
Such a conflict would arise when:
(i) The employee, officer or agent,
(ii) Any member of his or her immediate family,
(iii) His or her partner, or
(iv) An organization that employs, or is about to employ,
any of the above, has a financial or other interest in the firm
selected for award. The grantee’s or subgrantee’s officers,
employees or agents will neither solicit nor accept gratuities,
favors or anything of monetary value from Contractors, or parties
to sub-agreements. Grantees and subgrantees may set minimum
rules where the financial interest is not substantial or the gift is an
unsolicited item of nominal intrinsic value. To the extent permitted by State or local law or regulations, such standards or conduct
will provide for penalties, sanctions, or other disciplinary actions
for violations of such standards by the grantee’s and subgrantee’s
officers, employees, or agents or by Contractors or their agents.
The awarding agency may in regulation provide additional prohibitions relative to real, apparent, or potential conflicts of interest.
Neither the Owner nor any of its contractors or their subcontractors
shall enter into any Contract, subcontract, or agreement, in connection with any Project or any property included or planned to be
included in any Project, in which any member, officer, or employee
of the Owner, or any member of the governing body of the locality
in which the Project is situated, or any member of the governing body
of the locality in which the Owner was activated, or in any other
public official of such locality or localities who exercises any
responsibilities or functions with respect to the Project during his/her
tenure or for one year thereafter has any interest, direct or indirect.
If any such present or former member, officer, or employee of the
Owner, or any such governing body member or such other public
official of such locality or localities involuntarily acquires or had
acquired prior to the beginning of his/her tenure any such interest,
and if such interest is immediately disclosed to the Owner and such
disclosure is entered upon the minutes of the Owner, the Owner, with
the prior approval of the Government, may waive the prohibition
contained in this subsection: Provided, That any such present
member, officer, or employee of the Owner shall not participate in
any action by the Owner relating to such contract, subcontract, or
arrangement.
form HUD-51915-A (9/98)
ref. Handbooks 7417.1, 7450.1 & 7460.8

No member, officer, or employee of the Owner, no member of the
governing body of the locality in which the project is situated, no
member of the governing body of the locality in which the Owner
was activated, and no other public official of such locality or
localities who exercises any functions or responsibilities with
respect to the project, during his/her tenure or for one year
thereafter, shall have any interest, direct or indirect, in this
contract or the proceeds thereof.
1.8 Disputes. In part because of HUD regulations (24 CFR
85.36(i)(1)), this Design Professional Agreement, unless it is a
small purchase contract, has administrative, contractual, or legal
remedies for instances where the Design Professional violates or
breaches Agreement terms, and provide for such sanctions and
penalties as may be appropriate.
1.9 Termination. In part because of HUD regulations (24 CFR
85.36(i)(2)), this Design Professional Agreement, unless it is for
an amount of $10,000 or less, has requirements regarding termination by the Owner when for cause or convenience. These
include the manner by which the termination will be effected and
basis for settlement.
1.10 Interest of Members of Congress. Because of Contract
agreement between the Owner and HUD, no member of or
delegate to the Congress of the United States of America or
Resident Commissioner shall be admitted to any share or part of
this Contract or to any benefit to arise from it.
1.11 Limitation of Payments to Influence Certain Federal Transaction. The Limitation on Use of Appropriated Funds to Influence Certain Federal Contracting and Financial Transactions Act,
Section 1352 of Title 31 U.S.C., provides in part that no appropriated funds may be expended by recipient of a federal contract,
grant, loan, or cooperative agreement to pay any person, including the Design Professional, for influencing or attempting to
influence an officer or employee of Congress in connection with
any of the following covered Federal actions: 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.
1.12 Employment, Training, and Contracting Opportunities for
Low-Income Persons, Section 3 of the Housing and Urban Development Act of 1968.
A. The work to be performed under this contract is subject to the
requirements of section 3 of the Housing and Urban Development
Act of 1968, as amended, 12 U.S.C. 1701u (section 3). The
purpose of section 3 is to ensure that employment and other
economic opportunities generated by HUD assistance or HUDassisted projects covered by section 3, shall, to the greatest extent
feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing.

Previous editions are obsolete

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B. The parties to this contract agree to comply with HUD’s
regulations in 24 CFR part 135, which implement section 3. As
evidenced by their execution of this contract, the parties to this
contract certify that they are under no contractual or other impediment that would prevent them from complying with the
part 135 regulations.
C. The contractor agrees to send to each labor organization or
representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice
advising the labor organization or workers’ representative of the
contractor’s commitments under this section 3 clause, and will
post copies of the notice in conspicuous places at the work site
where both employees and applicants for training and employment positions can see the notice. The notice shall describe the
section 3 preference, shall set forth minimum number and job
titles subject to hire, availability of apprenticeship and training
positions, the qualifications for each; and the name and location
of the person(s) taking applications for each of the positions; and
the anticipated date the work shall begin.
D. The contractor agrees to include this section 3 clause in every
subcontract subject to compliance with regulations in 24 CFR
part 135, and agrees to take appropriate action, as provided in an
applicable provision of the subcontract or in this section 3 clause,
upon a finding that the subcontractor is in violation of the
regulations in 24 CFR part 135. The contractor will not subcontract with any subcontractor where the contractor has notice or
knowledge that the subcontractor has been found in violation of
the regulations in 24 CFR part 135.
E. The contractor will certify that any vacant employment
positions, including training positions, that are filled (1) after the
contractor is selected but before the contract is executed, and (2)
with persons other than those to whom the regulations of 24 CFR
part 135 require employment opportunities to be directed, were
not filled to circumvent the contractor’s obligations under 24
CFR part 135.
F. Noncompliance with HUD’s regulations in 24 CFR part 135 may
result in sanctions, termination of this contract for default, and
debarment or suspension from future HUD assisted contracts.
G. Reserved.
H. Reserved.
1.13 Reserved.
1.14 Clean Air and Water. (Applicable to contracts in excess of
$100,000). Because of 24 CFR 85.36(i)(12) and federal law, the
Design Professional shall comply with applicable standards,
orders, or requirements issued under section 306 of the Clean Air
Act (42 U.S.C. § 1857h-4 transferred to 42 USC § 7607, section
508 of the Clean Water Act (33 U.S.C. § 1368), Executive Order
11738, and Environmental Protection Agency regulations (40
CFR part 15), on all contracts, subcontracts, and subgrants of
amounts in excess of $100,000.

form HUD-51915-A (9/98)
ref. Handbooks 7417.1, 7450.1 & 7460.8

1.15 Energy Efficiency. Pursuant to Federal regulations (24
C.F.R 85.36(i)(13)) and Federal law, except when working on an
Indian housing authority Project on an Indian reservation, the
Design Professional shall comply with the mandatory standards
and policies relating to energy efficiency which are contained in
the state energy conservation plan issued in compliance with the
Energy Policy and Conservation Act (Pub. L. 94-163 codified at
42 U.S.C.A. § 6321 et. seq.).
1.16 Prevailing Wages. In accordance with Section 12 of the
U.S. Housing Act of 1937 (42 U.S.C. 1437j) the Design Professional shall pay not less than the wages prevailing in the locality,
as determined by or adopted (subsequent to a determination under
applicable State or local law) by the Secretary of HUD, to all
architects, technical engineers, draftsmen, and technicians.

Previous editions are obsolete

1.17 Non-applicability of Fair Housing Requirements in Indian
Housing Authority Contracts. Pursuant to 24 CFR section
905.115(b) title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d-2000d-4), which prohibits discrimination on the basis of
race, color or national origin in federally assisted programs, and
the Fair Housing Act (42 U.S.C. 3601-3620), which prohibits
discrimination based on race, color, religion, sex , national origin,
handicap, or familial status in the sale or rental of housing do not
apply to Indian Housing Authorities established by exercise of a
Tribe’s powers of self-government.
1.18 Prohibition Against Liens. The Design professional is Prohibited from placing a lien on the Owner’s property. This prohibition
shall be placed in all design professional subcontracts.

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form HUD-51915-A (9/98)
ref. Handbooks 7417.1, 7450.1 & 7460.8